Retail service dynamics in a rural tourism community

Abstract

PurposeThe purpose of this paper is to focus on the use of retail customer service as a value added component and potential success strategy for rural tourism retailers. More specifically, service quality expectations and perceptions as a means for segmenting tourism markets are to be examined.Design/methodology/approachData were collected using a case study methodology in an established rural tourism community. Local customers, tourist customers, and retailers participated in the study. A canvassing approach was employed for administering a hand‐delivered, self‐report survey that examined parallel sets of service quality expectations and perceptions among the three groups, along with service satisfaction outcomes (i.e. retailer loyalty and purchase intentions). Descriptive analysis, factor analysis, t‐tests, and regression analysis were conducted.FindingsLocal and tourist customers' prior expectations for retail service quality were similar; however, local and tourist customers' post‐experience service quality perceptions differed significantly. A modified version of the SERVQUAL scale represented two service quality perception constructs important to local customers and retailers and one service quality perception construct for tourist customers.Research limitations/implicationsGeneralizability of findings may be limited as the in‐depth study was conducted within a single rural tourism community in Iowa.Practical implicationsThe study sheds light on service quality perception dimensions that are salient to local customers, tourist customers, and retailers. Results aid in the development of customer relationship management strategies for both local and tourist customers and enhanced competitive options for rural tourism retailers.Originality/valueFindings provide baseline information regarding customer relationship management strategies aimed at establishing rural tourism retailer sustainability by simultaneously meeting service expectations and enhancing service perceptions for local and tourist customers.