Relationship between Service Quality, Customer Satisfaction and Customer Loyalty in Retail Outlets; A SEM PLS Approach

In this era of competitiveness, organizations compete in service quality to satisfy their customers. Primary data for the study was collected by direct interview method using retail service quality scale from eighty customers who visited the retail outlets that sold chilled chicken and meat products exclusively under its own brand name in Coimbatore city of Tamil Nadu state. This study was undertaken to assess the interrelationships between three constructs namely service quality attributes, customer satisfaction and customer loyalty by developing a model and analyzed using SEM PLS method. The retail service quality model consisted of five dimensions like physical appearance, reliability, personal interaction, problem solving and policy that were framed as structural model. This model measured the strength of the five dimensions in estimating the retail service quality constructs and the results indicated the policy improvements needed by the case firm for enhancing their retail service quality. The results of the study indicated that customer satisfaction and customer loyalty were dependent on retail service quality whereas customer loyalty to a particular store was not completely depended on satisfaction alone.

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