Abstract

Today more than ever customer orientation as the most important competitive advantage has gained an increasing importance. This paper aims to examine the relation between store image, perceived quality, customer satisfaction, and re-purchase intention in Iranian department stores. This is a descriptive survey study. The statistical population of the research is composed of customers of the three major chain department stores in Iran. The sample size estimated to be 1227. Data gathering instrument was a self administered questionnaire and structural equation modeling (SEM) is used for the data analysis.Findings indicate that in Iranian department stores perceived quality affects store image, customer satisfaction, and re-purchase intention. Also customer satisfaction affects repurchase intention. Moreover, the store brand image affects customer satisfaction.

Highlights

  • In recent years, department stores have grown rapidly and have been emphasized in distribution system reforms of Iranian Department of Commerce

  • The results indicated that approximately 82% of managers and experts appraised the success rate of Iranian department stores to be low and very low

  • The relationships among store brand image, perceived quality, customer satisfaction, and Re-purchase intention were investigated in Iranian department stores

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Summary

Introduction

Department stores have grown rapidly and have been emphasized in distribution system reforms of Iranian Department of Commerce. Since Distribution of consumer goods in Iran had a numerous problems which was most affected by the two chaotic economic ssituation i.e. the unorganized economic conditions and inappropriate structure of traditional distribution systems, after the reconstruction period the government decided to establish new chain department stores in the country to improve the distribution system and to prevent the market confusion. Refah and Sharvand department stores were established to follow this decision. Despite of efforts exerted, because of the lack of sufficient insight on how to manage the stores and the factors influencing their success, these department stores didn’t have much success in achieving the goals set (Mortazavi, 2001)

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