Evaluating Logistic Service Quality in Grab Food Delivery and Its Impact on Customer Retention Among BSBA Students of Philippine Christian University-Manila
Authors: John Michael O. Verzosa1, Shane Marie D. Bechayda2, Angela Marie C. Perucho3, Joanna Gail A. Rojo4, Mikyla Izel P. Villaruel5
Abstract
Grab Food has transformed the food delivery scene, becoming an essential part of urban life by offering unparalleled convenience and efficiency. This study investigates the impact of logistic service quality on customer retention within the context of Grab Food delivery services, focusing on Business Administration students at Philippine Christian University - Manila. Food delivery services are increasingly adopted in everyday life. The research study evaluates the relationship between customer retention and 5 key dimensions of logistic service quality— information quality, ordering procedure, timeliness, order condition, and order discrepancy. Using a quantitative descriptive research approach, data was gathered from 163 students via a standard questionnaire with a 4-point Likert scale. As shown by the results, Respondents expressed strong agreement across all five dimensions of logistic service quality. Order Discrepancy, Information Quality, Ordering Procedure, Timeliness, and Order Condition. Customer retention was scored 8.24; hence, it significantly agrees that customers intend to continue using GrabFood. Statistical analysis showed a significant but weak positive correlation between logistic service quality and customer retention. This correlation supports the idea that enhancements across delivery experience indicators positively influence customer loyalty. This means that although service quality impacts customer loyalty, other factors, including pricing, app usability, and personal preferences, impact retention. The study concludes that maintaining customer satisfaction and retention requires constant service delivery, particularly in terms of arriving on time and transparency. Grab Food needs to constantly review and improve its service procedures to guarantee they align with shifting consumer demands and remain competitive.