An application of retailing service quality practices influencing customer loyalty toward retailers

Abstract

Purpose Enhancing retailing service quality (RSQ) serves as a basic strategy for gaining competitive advantage in the retailing industry and enables retailers to make a loyal customer base. The purpose of this paper is to propose and empirically investigate a comprehensive mechanism for enhancing customer loyalty to retail stores via service quality practices. This study suggests information on retailers can be the antecedent of the RSQ and its dimensions, thereby proposing a comprehensive mechanism for enhancing customer loyalty to retailers. Design/methodology/approach The data were collected using questionnaire surveys from 2,375 customers of three main supermarkets in Sri Lanka. After testing the measurement model, two structural models were run to test hypotheses. Findings The findings showed that the RSQ positively influenced customer loyalty. From all the RSQ dimensions, the store’s physical aspects, personal interaction and policy had a significant influence on customer loyalty. The findings also demonstrated that information on retailers contributes to enhancing a customer’s favorable evaluation of the supermarket’s physical aspects, personal interaction and retailing policy. Research limitations/implications This study was conducted with supermarket customers in one country using the cross-sectional data. Hence, the model should be replicated among retail customers in other countries with the longitudinal data. Practical implications Practically, this study recommends to retailers which dimensions of service quality they need to focus to enhance customer loyalty to their business. The study furthermore recommends certain dimensions that need to be emphasized while retailers design their promotional and communication programs. Originality/value Information on retailers has been suggested as an antecedent for enhancing supermarkets’ service quality practices. Thus, this study proposes a comprehensive mechanism for enhancing customer loyalty to retailers via service quality practices.

The Effect of Service Quality on Customer Loyalty of Generation Y – An Empirical Investigation on Superstores in Bangladesh

“…Based on the assumption of the CMR theory, it is reasonable to examine the relationship between service quality and customer loyalty in the context of retailing, as suggested by numerous scholars (such as Brady & Robertson, 2001;Sivapalan & Jebarajakirthy, 2017). By proposing a model explaining the association of service quality with customer responses (such as, customer satisfaction and purchase intention), Brady and Robertson (2001) applied the theory of CMR.…”

“…In the retail sector, enhancing service quality has become a prime strategy for retailers to retain their customers and stand out from the rest of the competition (Prentice, Wang, & Lin, 2018;Sivapalan & Jebarajakirthy, 2017). Moreover, maintaining customer loyalty has been vital for retailers as they have experienced customer decline (Maggioni, 2016) by fierce competition (Adam, Tengeh, & Cupido, 2018;Hegner-Kakar, Richter, & Ringle, 2018) through the noticeable changes in the global retail landscape (Mohd-Ramly & Omar, 2017).…”

“…In measuring service quality in the retail context, Dabholkar et al (1996) developed and tested the validity of a five-factor hierarchical instrument, namely the Retail Service Quality Scale (RSQS), in the context of America, by taking into consideration that retailing encompasses both tangible goods and intangible services. Though the scale was implemented and further validated in both developed and developing countries such as India, Kazakhstan, Malaysia, South Africa, Sri Lanka, and Vietnam (Bhat, 2016;Boshoff & Terblanche, 1997;Das, Kumar, & Saha, 2010;Deb & Lomo-David, 2014;Jain & Aggarwal, 2016;Nguyen, Nguyen, Cao, & Phan, 2016;Sivapalan & Jebarajakirthy, 2017;Yeap Ai Leen & Ramayah, 2011), this study is limited to the retailing context of Bangladesh. Moreover, past studies that focuses on the application of the Retail Service Quality Scale (RSQS), by addressing a particular generational cohort (like Gen Y) irrespective of country and culture are rare.…”

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“…In other words, customers will make an explicit comparison between what they give and what they get. The positive relationship between equity and satisfaction was supported in the literature [19]. However, customers expect prices to be lower in an online store than in a traditional sales channel [24].…”

Service Performance in Public, Conventional Private and Specialized Private Banks in Bangladesh

“…A systematic search of services marketing literature demonstrates striking imbalance where relatively little attention has been given to the service performance side of the public, conventional private and specialised private banking system. Lassar et al (2000) argue that as a critical measure of organizational performance, service quality remains at the forefront of both the marketing literature, and the services marketing literature (Jensen & Markland, 1996;Kant et al, 2017;Sivapalan et al, 2017). Practitioners and academics are keen on accurately measuring service quality in order to better understand its essential antecedents and consequences, and, ultimately, establish methods for improving quality to achieve competitive advantage and build customer loyalty (Palmer & Cole, 1995;Saleh et al, 2017).…”