Abstract

Purpose: A proper service increases the customer satisfaction and positive word of mouth. The aim of this paper is to find out the impact of retail service quality and store service quality on patronage intention and word of mouth towards organized retail industry.
 Design/methodology/approach: The study data were collected from [location masked for blind review] using a structured questionnaire. A sample of 419 was used. A structural model was developed for analysis to find out the linkage between study variables.
 Findings/results: Findings reveal that retail service quality and store service quality are increasing the customer satisfaction. The findings showed that retail service quality, store service quality, and customer satisfaction significantly impact patronage intention and word of mouth. Problem solving is the major issue faced by the retail stores. Hence they have to take immediate action towards it to maintain their loyal customer base
 Practical implications: Problem-solving is not having significant relationships with customer satisfaction. Store managers have to create a pleasant experience and amplify the strength factors to create a bond between the store and the customers
 Originality/value: This paper is helpful to the retail store managers as well as new entrepreneurs who are going to start a new venture in the retail business.

Highlights

  • The Indian retail sector contributes substantially to India's economy by 1.1 trillion in 2020 and supports 15.2 million people with jobs (Media reports, 2019)

  • Pearson's coefficient of correlation (r) was introduced to calculate the frequency of the interaction between the two variables.The researcher decided to determine the relationships between Retail Service Quality (RSQ) dimensions and customer satisfaction as a Direct Variable

  • The result shows that retail service quality, store service quality, and customer satisfaction significantly impact patronage intention and word of mouth

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Summary

Introduction

The Indian retail sector contributes substantially to India's economy by 1.1 trillion in 2020 and supports 15.2 million people with jobs (Media reports, 2019). The retail sector has to face a fierce strategic battlefield because of falling profit margins (Kamran-Disfani et al, 2017). Such massive rivalry helps shoppers to have more chances to go to individual retailers. In order to understand unique quality problems impacting customer loyalty from five dimensions (personal engagement, accountability, efficiency, regulation, and tangibility), the SERVQUAL assessment framework has been successfully implemented (Sunil et al, 2018; Sharma and Srivastava, 2018; Shafiq et al, 2019). The researcher agreed to assess the effect of the quality of retail outlet and store environment on the intention of patronage towards organized retail stores in the selected towns of Tamil Nadu, India

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