Digitalization and customer satisfaction at APMT container terminals
digitalization on customer satisfaction at APMT. As the Digital Era is here, consumers know that digitalization services are available in other industries, but in firms like APMT, there is less access to these services. However, that is changing, as development and implementation of digitalization is underway. The methodology used for this study was mixed and included the use of interviews and surveys, which provided both qualitative and quantitative data that was measured to assess the extent to which customers of APMT were satisfied with the company's current state of digitalization and whether they would like to see more of it in the future. The findings showed unequivocally that digitalization is something that APMT consumers want, like and want more of. The findings indicated that consumers view digitalization as a service that speeds up transaction processes, makes interactions more efficient, provides opportunity to monitor from abroad, and leads to more effective collaboration.
Contents
Chapter one: Introduction 2
1.1 Background 2
1.2 Conceptual Framework 6
1.3 Problem Statement 6
1.4 Purpose of the Study 13
1.5 Research Questions 13
1.6 Research Objectives 13
1.7 Definition of Key Terms 14
1.8 Procedures 14
1.9 Significance of the Study 14
1.10 Limitations of the Study 15
1.11 Organisation of the Study 15
Chapter two: Literature review 17
Chapter three: Research design and methodology 23
3.1 The Questionnaire 23
3.2 Research Paradigm 23
3.3 Research Approach 25
3.4 Research Purpose 30
3.5 Research Strategy 31
3.6 Data Collection 32
3.7 Sample Selection 33
3.8 Data Analysis 33
3.9 Limitations 34
3.10 Ethical Considerations 35
Chapter Four: Findings 36
4.1 Thematic 36
4.2 Descriptive 38
4.3 Statistical 39
Chapter five: Discussion 46
5.1 General 46
5.2 Value Precept Theory 46
5.3 Contrast Theory 47
5.4 The relationship between digitalization and customer satisfaction 48
Chapter six: Conclusion and recommendations 51
References 53
Chapter one: Introduction
1.1 Background
In business, the significance of customer satisfaction cannot be overemphasized (Yuksel and Yuksel, 2008). Indeed, with increasingly many firms providing similar goods or services, dissatisfied customers can easily look for other alternatives. Accordingly, firms do whatever it takes to retain customers and keep them happy (Kumar, 2016). With tremendous technological advancements over the years, firms are ever more relying on information technology (IT) as a valuable driver of customer satisfaction (Mithas et al., 2005; Ryding, 2010; Deloitte, 2013; Jan and Abdullah, 2014; Meige and Schmitt, 2015). Whether it is processing a customer order or automating luggage handling, firms in diverse sectors and industries have adopted modern technologies in an attempt to enhance process efficiency. In fact, most organisational processes have now been digitalized -- they require just a click of a button or little manual work. While digitalization has generated important benefits for organisations in terms of reducing operational costs, it has created immense value for their customers, hence increasing customer satisfaction.
One context where digitalization can have enormous value for the customer is the port industry (Heilig et al., 2017). The industry is concerned with a plethora of services ranging from container handling and shipping to port management, and inland logistics (Branch, 2012; Li, 2014). Industry players have increasingly adopted digital technologies in an effort to serve their customers better. Among other technologies, cargo tracking technologies, surveillance systems, sensor technologies, wireless technologies, mobile equipment, drones, 3D printing technologies, and analytics technologies are gaining popularity in the port industry. These technologies have proved to be valuable in ensuring timely shipping and cargo delivery, guaranteeing cargo security, maximizing port capacity, improving process efficiency, and reducing operational costs for both port operators and their clients (Accenture, 2016; Heilig et al., 2017).
Nonetheless, there is little empirical evidence of the relationship between digitalization and customer satisfaction in the port industry (Li, 2014). Focusing on APM Terminals (APMT), the present study sought to fill this gap in literature. The study specifically sought to examine how the Value-Based Selling (VBS) team can make use of digitalization to improve customer satisfaction. APMT served as the subject of the study.
APMT is a Dutch multinational container terminal company. With its headquarters in The Hague and under the ownership of the global conglomerate Maersk Group, APMT provides terminal operations, cargo support, port management, and container inland services to hundreds of customers in more than 60 countries around the world. The company boasts over 70 port and terminal facilities as well as more than $4 billion in revenue as of 2016, making it one of the largest container terminals and port operating companies worldwide.
APMT operates 75 port and terminal locations in 39 countries across the globe. In 2015, APMT acquired eight new terminals from Spanish Grup Maritim TCB, which added 2 million twenty-foot equivalent unit (TEU) equity-weighted volume to APMT and significantly increased APMT's network across Central America. APMT is also in development in Morocco, with expectations that a five million TEU capacity, and also has development projects ongoing China, Costa Rica, Ghana and Italy. APMT made over $500 million in 2016 and is a major international container terminal operating company, standing as one of the planet's biggest port and terminal operators. Indeed, its reach around the globe marks it as the largest port and terminal operator based on geographical reach (Annual Review of Global Container Terminal Operators, 2015). In spite of the global recession, APMT has continued to expand. However, in order to continue to expand and maintain its foothold in times of global recession, APMT must take advantage of new digital technology that can streamline its operations and reduce costs (Bonney, 2017).
Currently APMT is working with Maersk Line as the latter builds towards developing "an end-to-end global trade network, in which all of the up to 200 possible transactions in a cargo shipment are digitalized with help from blockchain technology that uses a shared, decentralized database" (Bonney, 2017). Maersk is a transport conglomerate that is also based in Denmark and is the planet's "largest container shipping company" -- i.e., one of the most important customers for APMT. With more than 600 vessels under its oversight and carrying capacity of 3.8 million TEU (Alphaliner -- Top 100, 2017), Maersk is the sister carrier of APMT and thus the vertical integration currently underway is part of the overall plan to upgrade infrastructure within the Danish conglomerate. The idea behind the newly developing relationship with regard to digitalization between the two companies is to "leverage these [core firms'] competencies and create value for our customers" (Bonney, 2017). The business relationship between Maersk and APMT is such that Maersk will be integrated "at transshipment terminals" as the "sole primary user" while the integration for now will be less at gateway terminals that service a number of carriers (Bonney, 2017). The purpose of the integration is to increase the rate at which cargo is funneled through APMT facilities -- and since "container terminals have high fixed costs" and since "incremental additions to volume can help cover those costs," using digitalization to reduce the overhead with regard to time spent engaging with the numerous entities (customs, terminals, shipping lines, phytosanitary authorities) is seen by Maersk as a positive step. In this sense, for this particular company, digitalization is viewed as a way of boosting customer satisfaction.
1.2 Conceptual Framework
The conceptual framework utilized in this study is based on the work of Barua et al. (2004) and Banfi et al. (2015). Their studies focus on how using digital technology in the Digital Era can increase customer satisfaction. Mithas et al. (2005), Ryding (2010) and Jan and Abdullah (2014) have also shown that digitization offers an effective way to enhance customer satisfaction. Applying it to the port and terminal industry follows the argument of Meier (2013) that in times of global recession, ports should look to overhauling their infrastructure so that they are more conducive to customer needs and demands in the 21st century. In this regard, the idea of digitalization can be applied to the case of APMT.
Customer Satisfaction
Digitalization
1.3 Problem Statement
It is necessary to study about digitalization to improve customer service at APMT because, for one, customers are beginning to demand this type of service (Bonney, 2017); secondly, the industry is behind in terms of digitalization in an era that is aptly named the Digital Era (Raju, 2014) and should take opportunity during commercial slowdowns to upgrade infrastructure (Meier, 2013); and thirdly because APMT is one of the world's largest port providers and should seek to maintain good customer service so that its geographical expansion in recent years is not unsupported by sound business practices and techniques.
The problem that APMT is seeing is that global economic recession presents considerable economic risk for the quickly expanding company with the highest geographical reach (Bonney, 2017). It is necessary for APMT and indeed all ports and terminals to find ways to cut costs in order to maintain profitability -- especially during times of recession. How the Value-Based Selling Team will use digitalization to enhance customer satisfaction at APMT terminals is the question that needs to be answered. Understanding whether digitalization can positively impact the industry is therefore the problem that must be addressed.
As Jens Meier, CEO of Hamburg Port Authority, noted in a 2013 interview, "If there is the worldwide recession when we see the number of transportation going down, we try to use that time to fix some infrastructure plans and some new projects which makes us fit for the future when the numbers are growing up. And if the infrastructure is ready, then you can go little bit more aggressive to the market to try to get more volume if you want to. It is a very special Hamburg approach." What Meier (2013) indicated was that the port industry needs to address infrastructural issues in down times so that it is ready to meet customer demands when customers do come back. The benefits of digitalization are still being tested -- but the possible upside is evident as Bonney (2017) has noted: "A trial shipment completed last week between North Europe and the East Coast of North America is a sign of digitalization's potential to simplify shipping, and take a humongous cost out of the supply chain." The possibility of making the shipping process easier for consumers through digitalization could revolutionize the way ports and terminals like APMT operate.
The port industry has remained mainly unchanged for the last 50 years, and has been slow to embrace new technology (Meier, 2013; Bonney, 2017). This means that industry players continue missing important opportunities to increase customer satisfaction. This is particularly true for APMT (Bonney, 2017). Digitalization offers a unique opportunity for enhancing customer satisfaction (World Maritime News, 2017). Within the context of container terminal operations, digitalization can be valuable for improving the efficiency of processes -- from forwarding and clearing processes to cargo operations, shipping management, and inland transportation. Without strong digital platforms, managing these processes can be a daunting task to the disadvantage of not only the port company, but also its clients. APMT serves a multiplicity of customers, including clearing and forwarding companies, export and import companies, and logistics firms. For these clients, inefficient processes due to lack of or inadequate digitalization may mean delays in cargo delivery, loss of cargo, and even loss of revenue, eventually resulting in customer dissatisfaction. If APMT is to enhance customer satisfaction, digitalization is an important priority. In essence, digital innovation is essential if the firm is to remain competitive.
Cruz and Sarmento (2016) are worth quoting in full as their findings identify the nature of the problem and the possible solution at one and the same time (p. 18):
Digitalization will allow for the large investments in infrastructures to be optimized and will lead to an increase in mobility and efficiency. This could be achieved by management providing real time information, or by increasing tolls to enable operators to be more flexible and to be able to respond to market and consumer changes, and to be more proactive. The transformation that has occurred in Portugal in the transport sector over the last decades has been an impressive effort to close the infrastructure gap that the country suffered. However, new challenges ahead focus mainly in reducing costs, improving quality, and increasing mobility. There is a large role for digitalization in this effort.
What this means is that in the face of infrastructural demands for the port and terminal industry, a solution is needed that help the industry to refine its role, increase customer satisfaction and maintain economic growth and well-being. As Portugal has shown through its investment in infrastructure, the results are positive and digitalization can help to close the rest of the infrastructural gap that remains for the country's ports (Cruz and Sarmento, 2016). Indeed, Helig et al. (2017) have shown that "as actors in world-wide supply chains, seaports are particularly affected by technological change. Due to the high requirements in the logistics sector, e.g., regarding costs, efficiency, security, and sustainability, digital innovation is essential to stay competitive" (p. 1341). Not only therefore have researchers identified a need for ports to upgrade infrastructure, they have indicated that digitalization is the way to do it most effectively.
Digitalization also offers a valuable opportunity for enhancing customer satisfaction (Mithas et al., 2005; Ryding, 2010; Jan and Abdullah, 2014). However, much of the literature in this area has paid attention to the impact of IT investments on tangible organisational performance measures such as productivity, profitability, and market value. In other words, there has been little attention to the connection between IT investments and intangible aspects such as customer satisfaction.
However, the scarcity of scholarly attention to the impact of digitalization on customer satisfaction is particularly true for the port industry (Cruz and Sarmento, 2016). Much of the literature in this area focuses on organisational metrics such as container capacity, output, and cost savings, giving little or no attention to customer satisfaction and other customer metrics (Branch, 2012; Lee et al., 2012). The scarcity of research within the context of the port industry may be due to the fact that the port industry has been relatively sluggish in adopting digital technologies compared to other industries. Indeed, the port industry has remained mainly unchanged for the last 50 years, and has been slow to embrace new technology. This means that industry players continue missing important opportunities to increase customer satisfaction. In the port industry, digitalization can be valuable for improving the efficiency of processes -- from forwarding and clearing processes to cargo operations, shipping management, and inland transportation. Without strong digital platforms, managing these processes can be a daunting task to the disadvantage of not only the port company, but also its clients.
Even so, the little literature available illustrates that digitalization in the port industry can positively affect customer satisfaction (Lee et al., 2012; Port Technology, 2015; Pernia and Santos, 2016; International Container Insurance [ICI], 2016; Accenture, 2016; Heilig et al., 2017). In the port industry, customers constantly require seamless movement of their cargo. Digitalization can enhance cargo movement through cargo tracking systems and other technologies, thereby improving the customer service experience. While this literature provides important insights relating to the impact of port digitalization on customer satisfaction, empirical evidence in this area remains scarce. The few studies available may not be readily generalized beyond the context in which they were conducted.
For APMT, no research has been done to examine the link between digitalization and customer satisfaction. Since customer satisfaction is an important hallmark of organisational performance, it is crucial to understand how IT investments can influence customer satisfaction at the organisation. APMT serves a multiplicity of customers, including clearing and forwarding companies, export and import companies, and logistics firms. For these clients, inefficient processes due to lack of or inadequate digitalization may mean delays in cargo delivery, loss of cargo, and even loss of revenue, eventually resulting in customer dissatisfaction. Though APMT has implemented various technologies such as cargo tracking systems, no evaluation has been conducted to examine the impact of the technologies on customer satisfaction. It is imperative for the organisation to understand the value of digitalization, especially from the perspective of customer satisfaction.
According to consumer satisfaction theories, such as the Value Precept Theory and Contrast Theory, consumer satisfaction is not as simple to gauge as taking, so to speak, a measurement of engine oil using a dipstick. Value precept theory for instance holds that "what is expected from a product may not correspond to what is desired and valued in a product, and thus, values may be better comparative standards as opposed to expectations" (Yuksel and Yuksel, 2008, p. 1). Contrast Theory holds that "when actual product performance falls short of consumer's expectations about the product, the contrast between the expectation and outcome will cause the consumer to exaggerate the disparity" (Yuksel and Yuksel, 2008, p. 4). Both of these theories can be applied to the case study in the following manners:
Value Precept Theory can be applied because while shippers may have one set of expectations about what type of service they are likely to receive from a terminal firm, these expectations may not align with the values that the customer would like to see promoted by the same firm. This theory is used herein to explain the findings obtained through interviews of participants regarding their experiences at APMT. The idea behind it is to show that while consumers may not want to accept service that is not on par with what they value, their expectations can be so minimal that they accept working with the provider in spite of the poor quality of service.
Contrast Theory is applied to help explain the opposite phenomenon -- namely, that when consumers have high expectations and are disappointed, their reaction is exaggerated to emphasize their disapproval. The purpose of applying both theories to the findings of this study is to maintain a balanced perspective with regard to how participant responses should be judged -- neither accepted nor rejected at face value one way or the other. Reactions may mask underlying tendencies, so applying these two theoretical frameworks to the study can help to limit distortion of these tendencies and enable a suitably effective interpretation of the findings to result (Yuksel and Yuksel, 2008).
Moroever, these theories are applicable because they apply directly to the concept of port/terminals' use of digitalization to enhance customer satisfaction. Understanding the actions of customers of ports/terminals and how they view digitalization or the lack thereof is made more possible thanks to these theoretical frameworks, as they underscore the fact that consumer actions and reactions are complex expressions of multiple and various motives, desires, intentions, needs, wants, values and expectations. As Gimpel et al. (2016) show, "digital channels allow service providers to employ service personnel remote from the customer and to serve a geographically wider, potentially global market" (p.1). This is exactly what APMT could benefit from in order to facilitate its geographical expansion across the globe while simultaneously administering to the needs of clients seeking a sleeker and more efficient way of transacting with entities at terminals or with engaging in remote monitoring.
1.4 Purpose of the Study
The purpose of the study was to examine how the use of digitalization can enhance customer satisfaction at APMT.
The study specifically aimed to identify the current digitalization practices at APMT, to evaluate the extent of customer satisfaction at APMT, and to understand how APMT can use digitalization to improve customer satisfaction. On the whole, the study provides important recommendations for the improvement of digitalization at APMT.
1.5 Research Questions
1. What digitalization techniques has APMT implemented?
2. What is the level of customer satisfaction at APMT?
3. In what ways can digitalization affect customer satisfaction at APMT?
1.6 Research Objectives
1. To identify the current digitalization practices at APMT
2. To evaluate the extent of customer satisfaction at APMT
3. To understand how APMT can use digitalization to improve customer satisfaction
4. To make recommendations for the improvement of digitalization at APMT
1.7 Definition of Key Terms
Digitalization: The incorporation or employment of digital technologies into day to day processes with the aim of improving accessibility and efficiency (Lee et al., 2012; Meige and Schmitt, 2015). It may also refer to IT investments or the computerization of processes, systems, and jobs.
Customer satisfaction: The extent to which the goods and services provided by a firm meet or exceed the expectations of customers (Kumar, 2016).
1.8 Procedures
Designed as a case study, the study adopted a mixed methods approach. More specifically, a semi-structured interview was conducted with APMT's head of the value-based selling team as the respondent. The interview was used to gather information about the current digitalization techniques used at the organisation. Following the interview, a survey of the organisation's customers was conducted, keen on gathering information relating to customer satisfaction levels. Thematic, descriptive, and statistical techniques were used to analyze the data.
1.9 Significance of the Study
This study has significant implications for APMT and the port industry as a whole. For APMT, the study provides valuable counsel as far as digitalization is concerned. The study familiarizes the organisation with how it can take advantage of digitalization to drive customer satisfaction. It is expected that the organisation will pay greater attention to IT investments in an attempt to increase customer satisfaction. The findings of the study are valuable for not only APMT, but also the larger port industry. Compared to many industries, the port industry has been quite slow to embrace digital technologies. This study, therefore, serves as a wakeup call for players in the port industry. To keep up with the demands of the 21st century, port industry players must provide their customers a better service experience. From a research perspective, the study adds to the growing body of literature on the connection between digitalization and customer satisfaction in the port industry. The study, therefore, provides an important foundation for future studies in this area.
1.10 Limitations of the Study
The case study nature of this study is one of its major limitations. As the study focused on a single organisation, there should be discretion when generalizing the findings to other organisations.
1.11 Organisation of the Study
Overall, this study aimed to examine how digitalization can affect customer satisfaction at APMT. The rest of the study is organized as follows. Chapter two provides a review of literature relating to digitalization and customer satisfaction. The chapter specifically focuses on the conceptual background of the study as well as empirical evidence relating to digitalization and customer satisfaction, in general, and specifically, within the port industry. Chapter three presents the methodology used for the study. Chapter four presents the findings of the study in accordance to the specified research questions. The chapter specifically summarizes digitalization techniques at APMT, customer satisfaction levels, as well as the connection between digitalization and customer satisfaction at the organisation. Chapter five discusses the findings of the study, clearly linking them to literature. In this chapter, attention is particularly paid to establishing the extent to which the present findings are consistent with extant literature. Finally, chapter six provides a summary of the study as well as recommendations for practice and research.
Chapter two: Literature review
Digitalization has been linked to customer satisfaction by a number of researchers, including Barua et al. (2004) and Banfi et al. (2015). Their studies focused on achieving higher satisfaction at lower cost and establishing net-enabled business value. Many other industries have incorporated digitalization into their businesses -- from public libraries with its use of the Internet to support patrons (Raju, 2014) to the health care industry with its use of e-Health, telehealth, and e-Medicine to support patient quality care (Odeh, 2014; Roing and Holmstrom, 2015). Digitalization of services is shown to have improved both quality of care and patient/customer satisfaction health care and library services. Digitalization has changed much more about human interactions, behaviors and expectations in the Digital Era, however. Socialization and shopping have been impacted by digitalization. The rise of Amazon and Amazon Cloud Services, for example, have revolutionized the way computing is used to do everything from shop to store information and Big Data. Facebook and Twitter have introduced social media as information-sharing technology to the world and both offer highly valued shares to the public for purchasing. And as McCallister et al. (2010) have shown, personally identifiable information is now something that is sent via digital technology across the planet at the click of a button or that is stored on databases by companies, banks, and medical and financial institutions -- information that needs protecting at all times, which has in turn impacted the way businesses are set up, operated and maintained. Digitalization has even introduced new threats to society via cyber warfare, malware and hacking, as the latest news of Ransomware designed by Western intelligence agencies wreaks havoc on computers across the globe (Durden, 2017).
The study by Gimpel et al. (2016) is particularly useful in understanding the relationship between digitalization and customer satisfaction. As the researchers point out, "through the increasing importance of e-commerce and digital communication technologies, organizations have to decide about their provision of digital communication channels for customer interaction" (Gimpel et al., 2016, p. 2). E-commerce has essentially changed the manner in which businesses must engage with customers in order to achieve customer satisfaction -- as more consumers than ever before turn towards digital technology for matters of convenience, time saving, monitoring, communication, information and updates. The Internet has become the new green pastures of business and consumers are now highly familiar with the fields and show no signs of turning back to old media or old technology.
Customer relationship management (CRM) literature strongly emphasizes the importance of healthy relationships between businesses and their customers (Ryding, 2010; Jan and Abdullah, 2014). Indeed, in the business world there has been a remarkable shift from product-oriented business to customer-oriented business (Mithas et al., 2005). This has been informed by the need to lure new customer and maintain existing ones via long-term relationships. For a business organisation, creating enduring relationships with customers entails undertaking activities aimed at establishing and maintaining a mutually beneficial relationship. The organisation benefits through customer loyalty and profitability, while customers benefit by having their needs satisfied as per their expectations. For any prudent business organisation, customer satisfaction is the prime goal (Bhatnagar, 2016).
Yuksel and Yuksel (2008) show that consumer satisfaction is an important variable to measure for businesses and that measuring it depends upon how one chooses to view the ways in which it can be defined. The various theories surrounding consumer satisfaction, highlighted by Yuksel and Yuksel (2008), indicate that consumer satisfaction can be defined according to perspectives that emphasize expectation, value, utility, trade-off, consumption, cognitive dissonance, and more. The study finds that a balanced approach to the investigation of the concept of consumer satisfaction is essential to understanding how best to achieve it.
The use of technology can drive customer satisfaction. Technology influences customer satisfaction by transforming customer service processes, increasing service quality, enhancing information exchange between businesses and customers, and boosting the organisation-customer relationship (Ryding, 2010; Jan and Abdullah, 2014; Bhatnagar, 2016). Further, technology enables business organisations to lower operational and transaction costs, deliver offerings at a lower price, reduce delivery or wait times, as well as increasing the perceived value of products or services (Mithas et al., 2005). This can have positive implications for customer satisfaction. Essentially, the study was based on the idea that technological adoption on the part of an organisation drives customer satisfaction.
Digitalization generally denotes the incorporation or employment of digital technologies into day to day processes (Meige and Schmitt, 2015). Within the context of an organisation, digitalization refers to the computerization or automation of processes, systems and jobs with the aim of improving accessibility and efficiency (Lee et al., 2012). Virtually every organisational process today involves computerization -- from human resource processes and payroll management to customer relationship management, procurement, sales and marketing, forecasting, finance and accounting, and operations management. Digitalization is enabled by pervasive computing (e.g., cyber systems and the internet of things), delivery models (e.g., cloud computing), data analytics, social media, and mobile computing (Heilig et al., 2017). These IT systems transform processes, information flows, and people by facilitating the collection, processing, management, retrieval, and distribution of data.
The digitalization of processes is essential for enhancing the customer experience, which consequently increases customer satisfaction (Deloitte, 2013). Though there is no universally accepted definition, customer satisfaction essentially means the extent to which the goods and services provided by a firm meet or exceed the expectations of customers (Kumar, 2016). For businesses, customer satisfaction is crucial for enhancing customer retention, customer loyalty, and customer lifetime value. Indeed, customer satisfaction is an important driver of organisational performance. This explains why the adage "Customer is the king" remains popular. Prudent business organisations invest a great deal of time, effort, and resources to ensure customer satisfaction always. They understand that in a fiercely competitive business environment, customers can easily switch to alternatives where their needs are more efficiently satisfied.
With regard to digitalization's impact on customer satisfaction in the port and terminal industry, the research is scant, but as Cruz and Sarmento (2016) show, there is an opportunity within this industry to use digitalization to update infrastructure and better serve the needs of clientele. The researchers focus on ports in Portugal and the impact that digitalization could make there in satisfying consumer needs, but the general findings are applicable universally speaking, as the researchers find that digitalization promotes optimization of mobility and efficiency, whether through management of "real time information" or flexibility of operators in response to consumer changes, or toll increases (Cruz and Sarmento, 2016, p. 18). Likewise, Meier (2013) notes that "the digitization in logistics is a key issue in which the whole world is interested" (p. 20). Meier notes that with respect to ports, digitization is the next natural step in the industry in terms of meeting customer satisfaction. He points that all other industries have moved this way, from booking flights to booking hotels and using ports is really no different: "Digitisation is much faster than international standardization process can be. [Yet] shipping industry in ports are far behind. The ports are the interfaces in the middle of the supply chain" (Meier, 2013, p. 21). Meier's depiction of how digitalization is being used in the ports is worth noting in full:
For example, in Busan we share data of liner services and also storage and port services under one web covering. When someone in Hamburg is looking for special service in Busan, you can go in to the Hamburg interface, you can ask for the services in the port of Hamburg, heavy materials for example, who can handle that, who can ship that. On the other hand, you can see who can handle that in Busan and who would be the last mile logistics company for your products in Busan and it is also the other way round. So we not just break down concepts and visions, and for us it is always important that we send out and show some concrete and pragmatic examples that we already share.
Meier goes to note that digitalization is also being used in the logistics area, to eliminate waits in the supply chain. Meier (2013) finds that using digitalization to "implement very clever and intelligent thesis cross world systems" can help firms to share knowledge with partners and collaborate on finding solutions to problems (p. 21). Clearly the technology is available -- and the Internet of Things (2016) is one example of how this technology is coming to ports and terminals: The Internet of Things (2016) "will allow ports and terminals to take a huge leap in gathering, analyzing and distributing data that can enable the integrated management of activities at the quay, yard and gate."
The scarcity of research in this area may be due to the fact that the port industry has been relatively sluggish in adopting digital technologies compared to other industries. More specifically, no research has been done to examine the link between digitalization and customer satisfaction at APMT. This study, therefore, will have significant implications for APMT and the port industry as a whole and the diagram below summarizes the conceptual framework of the study.
Customer Satisfaction
Digitalization
Chapter three: Research design and methodology
3.1 The Questionnaire
Shippers using APMT terminals were asked whether how many hours they spent dealing with the 28 different entities -- from customs to shipping lines to forwarders and so on-when using terminals. Then they were asked how many hours they
3.2 Research Paradigm
Any research activity is guided by certain beliefs, assumptions, and philosophies. These beliefs constitute what is known as the research paradigm (Saunders et al., 2015). Generally, a researcher may operate within the positivist paradigm or the interpretivist paradigm. Positivism asserts that knowledge is external, objective, and universal (Bryman, 2008). This means that a sample is used to make inferences about the general population. For generalization to be achieved, the researcher often utilizes a sufficiently representative sample. The size of the sample used in positivist research has important implications for the relationship between the researcher and the subjects. A large sample means that the researcher does not cultivate a closer relationship with the subjects (Saunders et al., 2015). The researcher conducts an experiment or administers a survey often with little or no intimate involvement with the subjects. This is because the aim of the researcher in the positivist paradigm is to describe or examine causal relationships. As such, though it can be readily generalized to the larger population, positivist research usually does not provide a deeper understanding of the research problem. This is one of the major limitations of positivist research.
Interpretivist research, on the other hand, seeks to provide a more in-depth understanding of the research problem through qualitative assessment. Interpretivism is premised on the assertion that knowledge is contextual and often communicated through subjective experience (Bryman, 2008). In other words, the experiences of a given entity may not be readily generalized to the larger population as different entities tend to interpret knowledge differently. This is one of the major limitations of interpretivist research. As an interpretivist researcher seeks to gain a deeper understanding of the research phenomenon, the sample used is usually smaller (Saunders et al., 2015). In other words, the researcher focuses on a single or a few subjects. This enables the researcher to have a closer relationship with the subjects. The need for such a relationship explains why interpretivist research relies on techniques such as observations, in-depth interviews, and focus group discussions to collect data.
Selecting the research paradigm to use is often a daunting task for most researchers. This is particularly due to the inherent limitations of each paradigm. While positivist research yields more generalizable findings, it provides little understanding of the research phenomenon. Equally, while interpretivist research gives a deeper understanding of the research phenomenon, generalizing it beyond the sample is often difficult. At times, researchers find it more beneficial to operate within both paradigms -- the mixed methods approach (Creswell, 2014). This enables the researcher to have the benefits of positivist and interpretivist research at the same time. In this case, the mixed methods approach is deemed appropriate. The objectives of this study are to identify the current digitalization practices at APMT and to evaluate the extent of customer satisfaction. To gain a better understanding of the current digitalization practices at the firm, an in-depth interview would be more ideal, meaning interpretivist aspects would be used. Nonetheless, it would be important to understand how the firm's customers have benefited from its digitalization practices, warranting a customer survey.
3.3 Research Approach
The purpose of the research approach chosen here is to obtain use questionnaires to obtain information that can be interpreted both qualitatively and quantitatively (the mixed-methods approach). While the mixed-methods approach is more time-consuming for the researcher, it also enables are fuller understanding of the subject to be obtained. Inductive and deductive methods are used via the interview and survey approach, and in a mixed-methods approach, both act as the solution to obtaining data.
The source of knowing/learning about this subject is, as Fischer (2009) notes, partly based on the researcher's own experiences, prior knowledge and the assumptions made based on that knowledge, and direct observation. Direct observation is employed whenever the researcher is viewing the impact of variables on the subject. Deductive reasoning is used whenever the researcher is testing the conclusions of other researchers, testing hypotheses. In other words, in any phenomenological study, the sources of knowing and learning are myriad. The researcher's aim is to immerse himself in the subject and be aware of all the ways in which information, data, and knowledge can be accrued: the subject may be interviewed, surveyed or simply observed to obtain knowledge of how the phenomenon is experienced at the individual level. The subject's surroundings may offer clues as to other variables that are impactful throughout the examination of the phenomenon -- how other factors are contributing to the totality of the experience. The researcher's own perspective is also a source of learning and knowing in the phenomenological study because the researcher has some degree of informed knowledge that is brought to the study, as Creswell (2007) and Lin (2013) note in their depictions of the essence of phenomenological research.
As Fischer (2009) points out, "All discernible aspects must be understood in relation to one another and to the whole. So, with a new insight or with a modification of an earlier understanding, the researcher goes back to see how this development shifts understanding of other aspects and the overall understanding" (p. 588). The source of data is really the process in which the researcher engages with the subject.
The methodology used is based on Moustakas (1994) model, which focuses on the concept of "the wholeness of experience" serving as the basis or essence of all research (Simon, 2011). Moustakas recommends a heuristic process that allows the researcher to immerse himself in the world/sphere he is observing, to "intuit" the relevant data, to use active learning as an illuminative process, to explicate, and to synthesize the information (Simon, 2011). Such an approach will allow the researcher to obtain data "through the eyes of the participants in the study" (Simon, 2011).
According to the Moustakas Model, research should focus on the following points:
1. Immersion: the researcher immerses himself in the world of the subject or experience
2. Incubation: the researcher takes time to allow himself space for understanding
3. Illumination: the researcher actively engages with the material to expand knowledge and understanding
4. Explication: the researcher reflects on the experience
5. Creative synthesis: the researcher finds the patterns that emerge from the reflection and shows how relationships between variables are formed within the phenomenon of experience
The Moustakas Model is helpful for guiding the case study as it allows the researcher to pay attention to the lived experiences of a group as they engage with a specific idea or issue (Simon, 2011). By integrating two sets of data from two distinct approaches, a better grasp on the underlying subject can be obtained.
As Wisdom and Creswell (2013) state, "the basic premise of this methodology is that such integration permits a more complete and synergistic utilization of data than do separate quantitative and qualitative data collection and analysis." The basic framework for applying both quantitative and qualitative approaches in a study is the following (Wisdom, Creswell, 2013):
1. Collecting and analyzing both quantitative (closed-ended) and qualitative (open-ended) data.
2. Using rigorous procedures in collecting and analyzing data appropriate to each method's tradition, such as ensuring the appropriate sample size for quantitative and qualitative analysis.
3. Integrating the data during data collection, analysis, or discussion.
4. Using procedures that implement qualitative and quantitative components either concurrently or sequentially, with the same sample or with different samples.
5. Framing the procedures within philosophical/theoretical models of research, such as within a social constructionist model that seeks to understand multiple perspectives on a single issue
This framework is used in this study in the following manner: a survey is utilized to collect closed-ended data, while interviews via the phenomenological approach are utilized to collect open-ended data. A rigorous procedure in collecting and analyzing data is used by way of purposive sampling. The data is integrated during the discussion phase of the study. The same groups are used for the sample.
The theoretical and philosophical paradigm is located in the Interpretivist concept described by Cohen, Manion, and Morrison (2007). The Interpretivist theory holds that research is best conducted when conducted from the inside -- that is, when the researcher is directly experiencing what the subjects/participants of the study experience. This theory is based on the ideas of Edmund Husserl and Arthur Schultz, the fathers of phenomenology. Through this theoretical framework, the researcher aims to "understand, explain, and demystify social reality through the eyes of different participants," (Cohen, Manion, Morrison, 2007, p. 19).
As Wisdom and Creswell (2013) note, the advantages of the mixed-methods approach are several.
First, this approach allows the researcher to compare quantitative and qualitative data.
• Mixed methods are especially useful in understanding contradictions between quantitative results and qualitative findings.
Second, this approach enables the researcher to reflect participants' point of view more thoroughly and accurately.
• Mixed methods give a voice to study participants and ensure that study findings are grounded in participants' experiences.
Third, this approach helps to foster scholarly interaction by appealing to a diverse group of researchers (some who are inclined to quantitative studies and others who are inclined to qualitative studies).
• Such studies add breadth to multidisciplinary team research by encouraging the interaction of quantitative, qualitative, and mixed methods scholars.
Fourth, this approach allows for methodological flexibility.
• Mixed methods have great flexibility and are adaptable to many study designs, such as observational studies and randomized trials, to elucidate more information than can be obtained in only quantitative research.
Fifth, this approach supports the collection of rich, comprehensive data.
• Mixed methods also mirror the way individuals naturally collect information -- by integrating quantitative and qualitative data. For example, sports stories frequently integrate quantitative data (scores or number of errors) with qualitative data (descriptions and images of highlights) to provide a more complete story than either method would alone (Wisdom, Creswell, 2013).
For these reasons, the mixed-methods approach is highly-recommended by researchers in various disciplines. However, this approach is not without its limitations as shall now be discussed.
The research paradigm the researcher chooses influences every aspect of the research process -- from the research approach and purpose to the research strategy, data collection techniques, sample selection procedures, and data analysis processes. As for the research approach, research may be either deductive or inductive. Deductive research essentially relies on deductive reasoning. This means that the researcher formulates a hypothesis based on extant literature, and then collects data to confirm the hypothesis (Bryman, 2008). The findings are then deduced to the general population under study. The deductive approach is often associated with positivist and quantitative research. The inductive approach, on the other hand, involves generating a new theory. Often used in qualitative research, inductive reasoning focuses on investigating a new phenomenon or examining a known phenomenon from a new perspective (Bryman, 2008). As the study will involve both examining the phenomenon of digitalization at APMT, the inductive approach is primarily utilized herein.
3.4 Research Purpose
The purpose of a research may be exploratory, explanatory, or analytical. Exploratory research is research that aims to provide more information about a given phenomenon (Saunders et al., 2015). It seeks to study the phenomenon more clearly and provide a better understanding. Explanatory research seeks to explain relationships between two or more variables -- cause and effect relationships (Creswell, 2014). Analytical research involves a critical evaluation of information and facts relating to a given topic or subject (Kothari, 2004). As little research has been conducted to examine how the port industry can utilize digitalization to increase customer satisfaction, this study would take the exploratory form. It is important to shed more light on this topic. Additionally, the study seeks to provide empirical evidence relating to the relationship between digitalization in the port industry and customer satisfaction. This means that the study will also be explanatory. Combining exploratory and explanatory elements would be consistent with the paradigmatic orientation of the research.
3.5 Research Strategy
There are three major types of research strategies: an experiment, a survey, and a case study. An experiment is a test or a trial conducted to confirm or refute a given hypothesis (Saunders et al., 2015). Experimental research is the gold standard of research as it determines association and causality. However, experimental research may not be useful in this case as it is often used in natural and health sciences. The survey design would be more appropriate for the proposed study. Aimed at describing relationships between variables, a survey involves collecting data from a selected sample using a questionnaire (Creswell, 2014). A survey enables the researcher to collect and analyze data from a large sample with relatively less time, effort, and resources. One objective of this study is to examine customer satisfaction at APMT. A survey would be the most appropriate strategy to achieve this.
Case study research is research that focuses on one or a few cases (Bryman, 2008). The case may be an individual, a group, an organisation, or an event. This study will be a case study in the sense that it will focus on a specific organisation -- APMT. This means that the findings of the study will be specific to APMT -- not the port industry in general or other organisations in other industries. The difficulty of generalization is one of the major shortcomings of case study research.
3.6 Data Collection
A researcher may rely on either primary data or secondary data to achieve the objectives of their study. Secondary data is data collected by other researchers (Kothari, 2004). The researcher uses the data to answer a different research question. By using secondary data, the researcher avoids the complexity of collecting primary data. Nonetheless, possible biases in the underlying data may present a problem. Primary data is data collected for the first time. It is original or first-hand data collected using surveys, interviews, and other types of data collection instruments (Kothari, 2004). Unlike secondary data, which is often readily available, primary data usually involves a tedious process of collection and processing. It involves a great deal of time, effort, and resources. In spite of this challenge, primary data is advantageous as it relates to the specific needs of the researcher.
This research will rely on primary data. As the research will utilize the mixed methods approach, the data will be collected using two instruments. First, a semi-structured interview will be conducted and then a survey (questionnaire). The interview will be used to gather information about the current digitalization techniques used at APMT. With a semi-structured interview, a researcher has a set of pre-determined, open questions that prompt dialogue about a particular issue (Kothari, 2004). Though it may be time-consuming, a semi-structured interview enables the researcher to have a more in-depth conversation with the respondent (Saunders et al., 2015). The interview will be recorded using a tape recorder.
The questionnaire will be used to collect information from the company's customers, keen on determining the extent to which they are satisfied with the company's customer service processes. For the questionnaire, the researcher can use a standardized questionnaire or a researcher-designed questionnaire (Bryman, 2008). While standardized questionnaires are scientifically tested for validity and reliability, they may not be useful in this case. As mentioned earlier, scholarly attention to this area is quite limited, making it difficult to find a suitable standardized questionnaire that serves the needs of this study. Therefore, a researcher-designed questionnaire will be used. The researcher will rely on the organisation to administer the customer satisfaction survey.
3.7 Sample Selection
As mentioned earlier, this study will be a case study. This means that the study will focus on a specific organisation. Within the organisation, data will be collected from two sets of subjects: the value-based setting team and the organisation's customers. For the value-based selling team, the head of the team will be selected as the respondent. This is judgmental sampling, which means that the researcher selects subjects based on their experience and knowledge of the subject matter (Kothari, 2004). The head of the team will provide information relating to the firm's digitalization strategies. By virtue of his position and experience, the head of the team is the most suited individual to provide the required information.
3.8 Data Analysis
Two forms of data will be used in this study: interview data and survey data. The interview data will be first transcribed and then subjected to thematic analysis to identify themes relating to the research topic. The survey data will be analyzed using SPSS version 17. The software will be specifically used to generate descriptive statistics as well as statistical tests. Descriptive statistics will involve averages and frequencies. For instance, the analysis will determine the proportion of customers that feel satisfied with the firm's customer service processes. As for statistical tests, correlation and regression analyses will be performed to determine the nature and magnitude of the relationship between digitalization and customer satisfaction at the firm.
3.9 Limitations
This research will focus on a single organisation. This means that the findings will be limited to the organisation.
A limitation of the mixed-methods approach is that it increases the complexity of the analysis. Careful planning and evaluation is needed in order to provide adequate evaluation of the data. Without an efficient multi-disciplinary team of researchers aiding in the study, a mixed-methods approach can become too burdensome. For this reason, this study aims primarily to serve as an introductory assessment that can provide incentive for future researchers working together, interested in applying the same framework utilized here to discover more information on the question of this study and arrive at an even deeper understanding of the facts.
Because this study has used no piloted survey, it may be viewed as limited in terms of validity. To make up for this limitation, the interview process implemented during the phenomenological approach is expected to yield significant results in terms of providing depth of material for analysis. There are, however, important points that need to be remembered and adhered to when engaging in interviewing. Fischer (2009) states that "too often qualitative researchers discover while we are working with interview transcriptions that the interviewer was better at putting aside assumptions than at encouraging participants to fill out their accounts. Engaging participants in elaborating their descriptions allows us to check our earlier understandings and to deepen our attunement to alternative understandings" (p. 588). In other words, by engaging the subject and pushing for more details, more information, the researcher can check his own assumptions. Too much focus on setting them aside and not enough focus on retrieving information from the participant will not yield better results: it will yield fewer results and cause the study to come up short. Assumptions should not be feared -- they are a part of life, a part of the process of learning.
3.10 Ethical Considerations
The relevant ethical guidelines will be adhered to while conducting the research.
Chapter Four: Findings
4.1 Thematic
Themes that emerged from the interviews showed the following results. The head of Value-Based Selling at APMT pointed out that the firm uses digitalization for both consumer needs and the company's logistical needs in terms of collaborating with partners in the supply chain.
1. With regard to what digitalization techniques has APMT implemented, the interviews revealed that it varied from region to region. In terminals that were more advanced and up-to-date, digitalization techniques that APMT had implemented included:
• Digitalization of the documentation required to move containerized cargo
• Use of blockchain technology that uses a shared, centralized database to facilitate transactions in a cargo shipment
• Remote monitoring of containers to give shippers real-time data
• Delivery-order management
2. With regard to the level of customer satisfaction at APMT that resulted from the interviews, it was found that customer satisfaction increased significantly when any of the above digitalization techniques were implemented by APMT. Customers noted that these techniques were "a plus" for them in virtually every instance and thought this type of technique was a positive step in the right direction for shippers.
3. With regard to the ways that digitalization can affect customer satisfaction at APMT, it was found the implementation of digitalization helps shippers feel safer and more comfortable about their containers (through remote monitoring), helps them speed up the process of getting in and out of terminals (through digitalization of the documentation process), and helps them more effectively engage in the delivery-management process (through a more streamlined approach to docking). The most important of these techniques as described unanimously by customers interviewed was that digitalization of the documentation needed to dock containers made engaging in the process much faster and made shippers' much happier as it reduced the time they had to spend with the several different entities involved in the process. This With regard to research objectives, the following data was found:
1. To identify the current digitalization practices at APMT
a. The current digitalization practices at APMT are both consumer-driven and logistically-driven.
b. On the consumer end, the Internet services of the firm allow consumers to view ahead of time quay waits, fill out documents digitally, use blockchain technology to facilitate cargo shipment transactions, remotely monitor containers, and manage deliveries and orders more efficiently.
c. On the logistical end, digitalization is used to promote collaboration between partners in the management of the supply chain.
2. To evaluate the extent of customer satisfaction at APMT
a. Customer satisfaction was evaluated to be highest when digitalization had been implemented in the ports used by consumers
b. Customer satisfaction was lower when digitalization had not been implemented in ports due to no upgrades in infrastructure and information technology systems as of yet.
3. To understand how APMT can use digitalization to improve customer satisfaction
a. Understanding how APMT can use digitalization to improve customer satisfaction is more evident after examining the data obtained through interviews with consumers and evaluating the meeting of their reactions to digitalization at ports. These findings are discussed more fully in the next chapter.
4. To make recommendations for the improvement of digitalization at APMT.
a. Recommendations are possible as a result of analyzing the data obtained in this study. Recommendations are made in the final chapter.
4.2 Descriptive
The proportion of customers found to feel satisfied with the firm's customer service processes increased in relation to the extent that digitalization was implemented in the firm's operations at that specific port or terminal. Customers surveyed who used ports/terminals in regions that had not been updated with digitalization were unanimously less likely to report a favorable experience. They even unanimously stated when prompted by the questionnaire that their experience at APMT would have been better had the firm implemented some form of digitalization technique. When asked whether the firm's lack of digitalization would impact their decision of where to ship containers in the future, 55% of respondents said that it would be a factor in their decision if alternatives were available -- but that there were too many other variables involved in the selection process to say that it would be a deal breaker. Nonetheless, there was a clear indication that digitalization was at least a significant variable in determining customer satisfaction, even if it could not predict whether customers would return to give business to APMT in the future.
4.3 Statistical
A linear regression of time spent dealing with port/terminal entities (Entities; independent) predicting time spent waiting to dock containers (Dock; dependent) was performed to determine whether there is significant correlation between ports and terminals that are streamlined and faster via digitalization and shippers' ability to get in and out of the container terminals quickly. The purpose of this test was to measure the relationship between docking containers and engaging with terminal entities. It helped to show that customers who complain of slowed times in shipping containers at ports are not exaggerating their reactions to slowdowns in documentation interactions with port entities. The quicker resolution of these interactions via digitalization is thus shown to be more likely to result in higher customer satisfaction.
Regression
Descriptive Statistics
Mean
Std. Deviation
N
How much time do you spend dealing with port/terminal entities (in hours)?
8.920
12.8589
50
How much time do you spend waiting to dock containers (in hours)?
7.440
5.8131
50
Correlations
How much time do you spend dealing with port/terminal entities (in hours)?
How much time do you spend waiting to dock containers (in hours)?
Pearson Correlation
How much time do you spend dealing with port/terminal entities (in hours)?
1.000
.397
How much time do you spend waiting to dock containers (in hours)?
.397
1.000
Sig. (1-tailed)
How much time do you spend dealing with port/terminal entities (in hours)?
.002
How much time do you spend waiting to dock containers (in hours)?
.002
N
How much time do you spend dealing with port/terminal entities (in hours)?
50
50
How much time do you spend waiting to dock containers (in hours)?
50
50
Variables Entered/Removeda
Model
Variables Entered
Variables Removed
Method
1
How much time do you spend waiting to dock containers (in hours)?b
Enter
a. Dependent Variable: How much time do you spend dealing with port/terminal entities (in hours)?
b. All requested variables entered.
Model Summaryb
Model
R
R Square
Adjusted R Square
Std. Error of the Estimate
1
.397a
.158
.140
11.9242
a. Predictors: (Constant), How much time do you spend waiting to dock containers (in hours)?
b. Dependent Variable: How much time do you spend dealing with port/terminal entities (in hours)?
ANOVAa
Model
Sum of Squares
df
Mean Square
F
Sig.
1
Regression
1
8.983
.004b
Residual
48
Total
49
a. Dependent Variable: How much time do you spend dealing with port/terminal entities (in hours)?
b. Predictors: (Constant), How much time do you spend waiting to dock containers (in hours)?
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t
Sig.
95.0% Confidence Interval for B
B
Std. Error
Beta
Lower Bound
Upper Bound
1
(Constant)
2.386
2.756
.866
.391
-3.156
7.927
How much time do you spend waiting to dock containers (in hours)?
.878
.293
.397
2.997
.004
.289
1.467
a. Dependent Variable: How much time do you spend dealing with port/terminal entities (in hours)?
Residuals Statisticsa
Minimum
Maximum
Mean
Std. Deviation
N
Predicted Value
2.386
28.734
8.920
5.1055
50
Residual
-19.9511
56.2662
.0000
11.8019
50
Std. Predicted Value
-1.280
3.881
.000
1.000
50
Std. Residual
-1.673
4.719
.000
.990
50
a. Dependent Variable: How much time do you spend dealing with port/terminal entities (in hours)?
The model was found to be statistically significant as there was moderate correlation between how much time a student studies and how much time a student spends watching TV, as R = .397, p < 0.05.
It is meaningful at slightly less than 16% but it is not a great predictor, as R-squared = .158.
Yes, the standardized beta is .397, p < 0.05 and is statistically significant, indicating that the time spent in dealing with port/terminal entities is a predictor of time spent waiting to dock containers.
By looking at the b coefficient, it can be determined that for every increase in time spent dealing with port/terminal entities, more time is lost actually being able to dock containers and be on their way.
Chapter five: Discussion
5.1 General
The findings closely correlate with the findings of the literature reviewed in chapter two. As Barua et al. (2004) and Banfi et al. (2015) have noted, digitalization is linked with consumer satisfaction, and this has been verified by the three types of analysis conducted in this study. Thematic, descriptive and statistical analysis all support the idea that digitalization promotes customer satisfaction at APMT. Meier (2013) and Cruz and Sarmento (2016) also show that digitalization has a role to play in ports and terminals and the findings of this study support their arguments as well. The findings of this study show that consumers prefer to have digitalized options available to them when dealing with APMT and there is no reason to think these findings do not apply to the industry as a whole as APMT is simply one of many port terminal containment firms.
5.2 Value Precept Theory
According to value precept theory, consumer expectations do not always match consumer values. Understanding what a customer wants as opposed to what a customer will accept is the basis of this theory. While customers in the port containment business have accepted an old standard type of technology and business interaction in the industry for years, as Maersk shows, those times are coming to an end: the industry is beginning to upgrade and competitors will have to follow suit in order to continue to appeal to customers who will know that they can obtain easier digitalized access to platforms that help them in the long run with certain forms and ports. This theory helps to make sense of the findings in this study by showing how certain themes that emerge from the findings indicate that consumers are only willing to accept non-digitalized services so long as they have no other option but that as soon as that option becomes available to them, they will run to it. At the same time, customers did indicate some trepidation about the problems associated with too much digitalization, about networks being hacked, and systems failing that rely too heavily on digital services. However, this sentiment is best explained by contrast theory.
5.3 Contrast Theory
Contrast theory holds that high expectations tend to lead to negative experiences for consumers when those expectations are not met. Consumers who expressed looking forward to digitalization services at APMT also expressed high expectations in this regard. The problem here is that these high expectations may not be met or fulfilled just because digitalization services are implemented. There are other variables that need to be studied and monitored to better understand how consumer satisfaction can best be achieved at APMT -- and digitalization is just one. Moreover, as some consumers expressed, digitalization adds its own risks -- such as the risk of system failure, system hacking, or system blackout. These types of issues have to be addressed and safeguards put in place so that personal information is not lost or stolen and so that data is secured to facilitate transactions and interactions smoothly. The purpose of digitalization is acknowledged by consumers as being worth it because it makes the entire transaction easier and therefore it is mainly viewed as worth the risk. Even the statistical analysis bears out the fact that as less time is spent interacting with entities at port, shippers can more quickly and easily store containers and get out. Speeding up that process through digitalization could make the entire docking process even more streamlined and easier to handle. It is important to remember that from this theory's point of view, underlying tendencies may be obscured by the high expectations in the first place -- for example, do customers actually want something else or seek some other type of service that they illogically expect to be delivered via new technology, which leads to greater disappointment and dissatisfaction when not obtained? What do customers seek and do they know what digitalization will actually provide? More questions can arise from the application of this theory, which indicates that further investigation into the psyche of customers could be needed.
5.4 The relationship between digitalization and customer satisfaction
Clearly, therefore, there is a significant relationship between digitalization and customer satisfaction. This has been born out in various industries and it appears to be the case in the port/shipping industry as well. At APMT, customers expressed approval of digitalization in unanimous terms: all participants supported it over the old methods of doing business. They identified it as a process whereby interactions were sped up and made easier, whereby monitoring could be more effectively conducted, and whereby collaborations and cooperation could be managed more efficiently. In the Digital Era, utilizing digitalization is natural and in places where these operations had not yet been implemented, customers expressed more dissatisfaction than in places where it was implemented. Throughout APMT's entire geographical network, digitalization could therefore be viewed as an improvement for the Value-Based Selling team to use in its approach to customers, as the evidence indicates that customers view digitalization as something that improves their overall experience in container shipping.
The findings indicate as well that digitalization can significantly benefit APMT as well, as it becomes a leader in providing digitalization services in an industry that is still well-behind others in terms of upgrading infrastructure. By providing advanced digital technology services to customers, APMT can be well ahead of other providers and ports/terminals where digitalization has not yet been implemented. This could secure APMT's reputation is a leader in the industry, which as Meier (2013) has asserted is best achieved when firms take the initiative to upgrade their infrastructure, especially during times of economic slowdown.
Some problems that may emerge as going concerns for the industry, however, may be related to the issue of whether the global recession is a slowdown or whether peak saturation has been reached and the global recession is more of an indication in a change in trade and services that will impact the containment industry as a whole. While this question may be important for the industry, it does not alter the fact that digitalization is here to stay and that in the meantime, while the global economic situation manifests itself more plainly, consumers will still continue to demand better support systems that digitalization can provide.
This is not to say that digitalization will satisfy customers 100%. Digitalization itself must be achieved through logical processes that support consumer needs. They should be easy to use and not cumbersome. Once implemented, they should have a balanced, intuitive but also logical approach that helps rather than hinders the customer in transactions and interactions. To better understand how to develop and implement digitalization strategies, it is imperative that APMT work with digitalization providers, such as Microsoft, which in fact is something that APMT's sister company is looking into at this time.
Overall, the extent to which the findings bear out the existing literature is high: participants unanimously expressed satisfaction with digitalization services when provided and unanimously expressed that they would prefer digitalization services to none. In their view, the consumers communicated a need for more streamlined interactions that were on par with the Digital Era's technological advancements. There was no reason, as far as consumers were concerned, that APMT and other firms could not implement such technology -- and all customers looked forward to that time when it should come.
Chapter six: Conclusion and recommendations
The study has shown that digitalization is linked to customer satisfaction and that stronger digitalization efforts on the part of APMT can lead to better consumer satisfaction in the industry.
From value precept theory and contrast theory standpoints, it is important for more research to be conducted in order to more extensively understand the mind, needs, and wants of the consumer so that digitalization efforts, which are currently underway at APMT, can be maximized to their fullest potential.
In the Digital Era, the need for digitalization is a natural consequence in every industry, as consumers realize that the technology is available to make their experiences easier. In the port industry, there has been little studying performed in order to measure the impact of digitalization on consumer satisfaction. This study was conducted to help bear out the findings of what little literature did exist on this subject. The findings showed that consumers who had access to digitalization services at APMT were more satisfied with their overall experience than those who did not. Moreover, those who did not expressed interest in having access to those services at some point in the future.
Recommendations for future research include better assessing the ways in which digitalization can be effectively implemented in the port/terminal containment industry. For companies like APMT, there is also a need to understand the mind of the consumer so that expectations are not see unrealistically high or so that communication miscues are not made into misleading issues as a result of consumers exaggerating or accepting experiences that are not in line with their core values. Identifying the consumer's core values in this industry would be another area that researchers could examine in the future to better support the businesses.
Recommendations for APMT as well as other container firms would be to develop and implement digitalization services in their businesses, as the evidence shows that consumers want this type of interaction and believe it speeds up their overall processes and makes them more efficient and satisfactory. APMT is currently already implementing these services in some regions and would do well to implement them in those regions where they have not yet been used, as customers would like to have access to them there as well.
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