Service quality, customer satisfaction, location and customer loyalty

Mediation and moderation analyses

Research output: Contribution to journalArticle

Abstract

The purpose of this paper is to examine the importance of incorporating service quality in the Malaysian hypermarket industry. Service quality dimensions investigated in this paper consist of several important determinants namely tangible, reliability, responsiveness, competency, courtesy and credibility. The study measures customers’ perceptions of service quality offered, level of customer satisfaction and loyalty perceived from their experiences shopping in the hypermarkets. The paper specifically investigates the importance of service quality on customer loyalty mediated by customer satisfaction. In addition, the study also tries to discover whether location (strategically) plays a significant moderating role in the linkage between customer satisfaction and customer loyalty. Empirical associations in this study are analyzed through inferential statistical methods such as Pearson’s correlation, hierarchical regression and regression-based mediation analyses. The findings suggest that service quality has significant correlations with both customer satisfaction and customer loyalty. The result also provides evidence that customer satisfaction fully mediates the linkages between tangible, courtesy and credibility and customer loyalty. In addition, location (from strategic perspective) significantly moderates the linkage between customer satisfaction and customer loyalty. Therefore, it is suggested that a more strategic location of a hypermarket can strengthen the relationship between customer satisfaction and customer loyalty and in the long run will benefit the retail business. The findings of the study provide striking demonstrations of the importance of service quality in enhancing customer satisfaction and customer loyalty of Malaysian hypermarkets. The result indicates that Malaysian hypermarkets should emphasise greater attention to dimensions such as tangibles, courtesy and credibility of service quality dimensions and a greater degree of hypermarket management support for service quality enhancement initiatives.

Original languageEnglish
Pages (from-to)652-662
Number of pages11
JournalInternational Journal of Recent Technology and Engineering
Volume8
Issue number2 Special Issue
Publication statusPublished - 1 Jul 2019

Fingerprint

Customer satisfaction
Quality of service
Moderation
Service quality
Customer loyalty
Mediation
Hypermarkets
Industry
Statistical methods
Demonstrations

Keywords

  • Customer Loyalty
  • Customer Satisfaction
  • Hierarchical Regression
  • Hypermarket
  • Location
  • Service Quality

ASJC Scopus subject areas

  • Engineering(all)
  • Management of Technology and Innovation

Cite this

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