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ABSTRACT
In last years the services industry has recorded high growth rates in developing countries, with the retail industry exhibiting a particular highlight. This paper seeks to identify the most critical factors in traditional retail related to service quality that will ensure competitiveness, survival and business success in the future. This research was applied to customers from traditional retail stores in the Centre of Portugal. Tangibility, assurance, empathy, reliability and responsiveness (Service Quality dimensions), brand image, customer satisfaction and loyalty to the traditional trade were the variables considered for this study. A multi-level and hierarchical model was used as a framework to identify and capture the links between customer satisfaction, service quality, brand image and loyalty of customers in the Portuguese traditional trade. The results revealed that service quality is the main determinant of customer satisfaction and corporate image. Furthermore, customer satisfaction, corporate image and service quality significantly affect customer loyalty. This research is of particular significance to the literature in retail and to practitioners as well, since there are only a few studies in this topic applied to the Portuguese traditional retail.
Keywords: Quality Service, Customer Satisfaction, Customer Loyalty, Centre of Portugal, Traditional Retail
1.INTRODUCTION
In the currently time of intense competition, the key to success in service industries is the delivery of high-quality service. In this sense the business organizations pay particular attention to monitoring and improving service quality given that is highly essential contribute to satisfaction and loyalty customer, since they are determinant variables in maximizing profit, market share, and return on investment (Hackl and Westlund, 2000). The quality improvement is the main factor that impacts consumer satisfaction and consumer's purchase intention, in both manufacturing and service industries (Oliver, 1980). Sundry researchers consent that the quality is fundamental to consumer's satisfaction (Cronin and Taylor, 1992; Veloso, Ribeiro, Fernandes and Alves, 2017; Zaibaf, Taherikia and Fakharian, 2012 and Zhang and Prybutok, 2005).
Various organizations focus on service-quality issues to drive customer's satisfaction above the rest (Kumar et al., 2008). So, currently the great challenges for retail managers are to provide and retain the customer satisfaction and loyalty. The specific dimensions of quality service that contributes substantially to customer's satisfaction need to be identified. It is critical for managers of traditional retail store...