Abstract
The objective is to compare shoppers’ evaluation of retail service quality in the context of a developing country that has conventional market configuration, specifically Iran. We compare two department stores: Shahrvand, a domestic department store and its international competitor Hyperstar. A sample of 320 shoppers in Tehran was used to test our hypotheses. Confirmatory factor analysis (CFA) was exercised for hierarchical cross-validation of service quality dimensions. Furthermore, shopper’s evaluation of service quality between two stores was assessed using independent T-test method. The finding shows that the RSQS structure is a good fit in the Iran retail setting. Perusing five dimensions are appeared to be exceptionally beneficent to assess the quality of retail service, and the results indicate the significant effect of customer-presumed policy reliability and physical dimensions-on retail department store success. We also found personal interaction and problem solving less important for shoppers. Interestingly, it was found that Hyperstar is salient, not only in terms of policy and reliability, but also in terms of its physical aspect, personal interaction, and problem solving.
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