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Article Details

Vol. 6 No. 2 (2026): June

Effect of On-Time Delivery, Tracking, and Cargo Insurance on Customer Loyalty through Customer Satisfaction

https://doi.org/10.35912/ahrmr.v6i2.3718
30 Jun 2026

Abstract

Purpose: This research investigates how on-time delivery, tracking systems, and cargo insurance influence customer loyalty via customer satisfaction among logistics service users in Jakarta, Indonesia.

Methodology: This research utilized a quantitative, cross-sectional approach with purposive sampling of 318 logistics customers in Jakarta (62% business and 38% individual consumers). Five constructs were measured using validated seven-point Likert scales and analyzed via SEM-PLS using SmartPLS with 5,000 bootstrap resampling.

Results: On-time delivery significantly affected customer satisfaction (? = 0.326, p < 0.001) and loyalty (? = 0.386, p < 0.001). Tracking systems and cargo insurance also significantly influenced satisfaction (? = 0.285 and 0.249, p < 0.001) and loyalty (? = 0.205, p = 0.002; and ? = 0.138, p = 0.009). Customer satisfaction significantly predicted loyalty (? = 0.460, p < 0.001). All mediation paths showed partial mediation (VAF = 28.0%–45.5%). The model explained 79.0% of the satisfaction and 77.4% of the loyalty variance.

Conclusions: Customer satisfaction partially mediates the effect of logistics service attributes on loyalty. Building on previous studies, this study categorizes on-time delivery, tracking systems, and cargo insurance into three separate trust dimensions operational, informational, and financial that influence satisfaction and loyalty.

Limitations: This study was limited to logistics customers in Jakarta, employed a cross-sectional design, and examined only three service attributes, excluding other potential determinants of loyalty.

Contributions: This study enhances the literature on logistics service quality by introducing a three-dimensional trust framework, offering practical insights for providers in Jakarta.

Keywords

Cargo Insurance Customer Loyalty Customer Satisfaction On-Time Delivery Tracking System

How to Cite

Fani, I., Abdurachman, E., Simarmata, J., & Nofrisel, . N. (2026). Effect of On-Time Delivery, Tracking, and Cargo Insurance on Customer Loyalty through Customer Satisfaction. Annals of Human Resource Management Research, 6(2), 463–481. https://doi.org/10.35912/ahrmr.v6i2.3718

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Authors

1 Isti Fani
Institut Transportasi dan Logistik Trisakti, Jakarta Timur, Indonesia
2 Edi Abdurachman
Institut Transportasi dan Logistik Trisakti, Jakarta Timur, Indonesia
3 Juliater Simarmata
Institut Transportasi dan Logistik Trisakti, Jakarta Timur, Indonesia
4 Nofrisel Nofrisel
Institut Transportasi dan Logistik Trisakti, Jakarta Timur, Indonesia

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Vol. 6 No. 2 (2026): June
Section: Articles
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