Analysis of Customer Relationship strategies for retailer

Abstract

Purpose-This paper is to develop and test a conceptual model of the relationship among the constructs of service quality, customer loyalty and relationship quality and role of emotional satisfaction in predicting customer loyalty and relationship quality in retail industry. Design/Methodology/Approach- The study utilizes a review of the literature to propose a conceptual model that postulates that service quality is positively related to emotional satisfaction; emotional satisfaction is positively related to customer loyalty; emotional satisfaction is positively related to relationship quality. Moreover, the model postulates that the relationship between service quality and emotional satisfaction, and its consequential impact on customer loyalty and overall relationship quality.A four-item overall service quality scale was employed developed by Dabholkar et al., 2000,The measure adopted by Reynolds and Beatty (1999) was used to capture emotional satisfaction and a four-item customer loyalty scale was used developed by Parasuraman et al., 1994. A retail chain departmental store of India was chosen as the study site because of the more complex set of issues involving customercontact employee interaction (Mishra, 2000).A widespread sample was adopted with the intent to reduce any potential socio-economical and/or geographical sampling biases. During a one-month data collection period, the researcher intercepted every third shopper leaving the retail store, asked whether he or she is willing to participate in the survey, and recorded all refusals. The survey was selfadministered by interested participants. Keywords: Customer Relation, Customer Loyalty, Customer satisfaction, Service quality assurance

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