Abstract
<p>There is a paucity of knowledge relating to retail service quality and customer loyalty intentions in emerging markets, and especially in Vietnam. The purpose of this study is to investigate the relationship between these two variables in the Vietnam retail sector. Survey data are collected from 502 respondents who are current customers of eight retail stores in the city of Hanoi. The results support five dimensions of retail service quality, namely personal interaction, store policy, physical aspects, reliability and problem solving. Out of these, three dimensions of reliability, personal interaction and problem solving are significantly associated with customer loyalty intentions. This study contributes to the evolving literature and suggests that local and foreign retailers should particularly invest time and effort to increase stores’ reliability, quality of customer interaction and effectiveness in solving customer problems. </p>
Highlights
Market liberalization and economic reforms have bolstered the development of Vietnam retail industry in the last two decades
The purpose of this study is to investigate the relationship between these two variables in the Vietnam retail sector
Twenty-eight items loaded on five factors, namely personal interactions (9 items), store policy (5 items), physical aspects (6 items), reliability (5 items) and problem solving (3 items)
Summary
Market liberalization and economic reforms have bolstered the development of Vietnam retail industry in the last two decades. Retail modernization has been identified as the main driver of such development (Maruyama & Trung, 2012). Modern retailers such as supermarkets, hypermarkets, shopping centers and convenient stores are expanding rapidly in the whole country, especially in major cities. There are 724 supermarkets and 132 shopping centers being operational throughout Vietnam by March 2015 (Viettrade, 2015). These modern distribution channels are expected to continue growing gradually and account for 45 per cent of the total retailing sales nationwide by 2020 (ATKearney, 2014)
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