THE EFFECTS OF PHYSICAL DISTRIBUTION SERVICE ON CUSTOMER SATISFACTION: THE CASE OF MOHA SOFT DRINKS INDUSTRY S.C. TEKELEHAIMANOT PLANT

Abstract

The purpose of this paper is to investigate the effect of physical distribution service on customer satisfaction in the case of Moha Soft Drinks Industry S.C. Tekelehaimnot Plant. It followed a quantitative research approach and the research design was both descriptive and explanatory research. A structured questionnaire was adopted. The data was analyzed using Statistical Package for Social Sciences (SPSS) V25. From the descriptive statistics warehouse location has the highest mean score 4.29(0.64) which implicates security, Space availability and Proximity as an important determinant in warehouse location. Correlation analysis was conducted to analyze the relationships between variables; the correlation matrix revealed that all coefficient of correlation independent variables were positive and strongly correlates with the dependent variable. In addition to correlation analysis, Further regression analysis was also conducted and results revealed that the independent variables (product availability), PDS timeliness, PDS quality contribute to statistically significant level at (p-value = 0.001). Based on hypothesis testing the p- value of product availability, PDS timeliness, PDS quality, PDS flexibility, PDS warehouse location is less than 0.05, thus the researcher can accept the hypothesis and all the physical distribution service dimensions. Finally, the results are useful in identifying physical distribution service focus areas to help Moha Soft Drinks Industry S.C. Tekelehaimnot Plant marketing strategy. As evident from the finding section that, Moha Soft Drinks Industry S.C. Tekelehaimnot Plant is recommended to fully implement physical distribution service dimensions effectively to attract customers that make purchase decision and to increase the sales volume. Physical distribution service is one of the competitive advantage areas for Moha Soft Drinks Industry S.C. Tekelehaimnot Plant to remain competitive in the soft drinks industry.