Modelling Customer Satisfaction and Loyalty Using Structural Equation Modeling Based on Service Quality Measurement in the 10-Minute Online Grocery Delivery Industry

Abstract

With lives getting faster and customers becoming more demanding and impatient, companies are wagering on attaining the customers’ needs fleetly. The impatient nature of the customer has led to the ballooning of a new concept known as “10-minute delivery”. In the competitive landscape of the online grocery delivery industry, merely delivering the product to customers is no longer enough to claim the coveted title of an industry leader - a thorough analysis of the intricate factors that underpin customer satisfaction and loyalty is an absolute imperative. This research aims to study the impact of 10-minute online grocery delivery service quality on the satisfaction and loyalty of customers in Kolkata. The study targeted online grocery shoppers in the city of Kolkata & collected 274 responses. A structural equation model was developed to study the relationships between the established seven dimensions (app interface, information quality, grocery quality, delivery service, sales promotion, packaging & customer support) of grocery service quality and customer satisfaction and loyalty. The findings of the study suggest that companies should focus on improving the app interface, grocery quality, delivery service, and customer support to enhance customer satisfaction in this industry. The study also found a significant association between customer satisfaction and loyalty, indicating that customers who are satisfied with the quality of 10-minute online grocery delivery services are more likely to remain loyal to the grocery delivery service provider. Overall, this study not only offers essential insights to companies striving to enhance their 10-minute grocery delivery services and gain a competitive edge in this industry but also contributes to the body of knowledge in this relatively new and unexplored area of research.