The Influence of Store Versus Service Satisfaction on Retail Customer Loyalty: An Abstract

Abstract

Customer satisfaction and its impact on customer loyalty is an important competitive consideration for most organizations (Sorescu and Sorescu 2016; Tarasi et al. 2013). This paper addresses the impact of store and service satisfaction on attitudinal and behavioral customer loyalty in a retail setting. The research is based on a survey of 308 Target and Wal-Mart shoppers using Partial Least Squares (PLS) to test the hypothesized research model. Customer satisfaction has been reported to be based on a tangible dimension as well as an intangible dimension (Walsh et al. 2008). In this research, the tangible dimension of retail customer satisfaction is measured as store satisfaction (Jayasankaraprasad and Kumar 2012; Thomas 2013), whereas the intangible dimension of customer satisfaction is measured as service satisfaction relating to the customer’s experience with store personnel and the customer service that they receive (Dabholkar et al. 1996; Walsh et al. 2008). Hypothesis 1 was supported showing a positive linkage between store satisfaction and service satisfaction (β = 0.80, t-value = 33.84). Hypothesis 2 was supported with a positive linkage between store satisfaction and attitudinal loyalty (β = 0.49, t-value = 6.53). Hypothesis 3 was also supported indicating a positive relationship between store satisfaction and behavioral loyalty (β = 0.35, t-value = 4.11). Hypothesis 4 was supported indicating there was a significant relationship between service satisfaction and attitudinal loyalty (β = 0.23, t-value = 3.13). Hypothesis 5 was not supported indicating no significant relationship between service satisfaction and behavioral loyalty (β = 0.12, t-value = 1.80). Hypothesis 6 was supported indicating a positive association between attitudinal loyalty and behavioral loyalty (β = 0.40, t-value = 5.46). Our findings support the notion that satisfaction and the two types of customer loyalty are related with the exception of the relationship between service satisfaction and behavioral loyalty. Service satisfaction may be a form of spurious brand loyalty where customers repeat their purchase behavior because of inertia instead of commitment to the store (Bloemer and Kasper 1995). With spurious brand loyalty, good customer service may be important but it may not have the constant or lasting effect on store satisfaction.