Examining the effect of retail service quality dimensions on customer satisfaction and loyalty: The case of the supermarket shopper

Abstract

Purpose: Post Apartheid, the South African supermarket industry has rapidly increased in size and stature, yet customer satisfaction and fostering goodwill don't appear to have kept pace with growth. This research considers which aspects of retail service quality impact upon customer satisfaction and, ultimately, pay dividends in terms of generating store loyalty amongst urban shoppers in the middle to upper market segments. Design/methodology/approach: A survey approach was used to collect data from 307 respondents within a major metro pole area, as well as through an online interface. This was used to test our path model using Partial Least Squares (PLS) analysis. Findings: The results from the analysis concluded that two constructs, namely Physical Aspects and Personal Interaction, had a direct relationship with Customer Satisfaction. Customer satisfaction was also confirmed to be positively linked to customer loyalty. Originality/Value: This research uncovers which aspects of service are most coveted by consumers in an emerging market context, as well as their effect on generating repeat business. If supermarket chains are to move beyond mere profit generation and build meaningful relationships with customers, they would best be advised to focus on the attributes of service that have a direct bearing on customer satisfaction and, in turn, long-term repeat patronage.