Service Quality and Customer Retention: An Empirical Study on Organized Retail Sector

Abstract

In today's competitive business scenario, firms are searching means to achieve competitive advantage and increased customer loyalty through quality of their service. Service quality is not only having a relationship with customer satisfaction but also with increased cross-sell performance, higher customer retention and repeat purchasing behavior of a customer. In light of this, the present study lightens how service quality affects customer retention in organized retail sector. A total of 224 completed questionnaires obtained from the active mall shoppers were used for statistical analysis. Exploratory factor analysis was employed for variable reduction and factor identification. Further attempt has been made in this study to disclose the importance of selected demographic variables when evaluating retail service quality.