Service quality and customer loyalty perspectives on two levels of retail relationships

This study attempts to examine the impact of service quality dimensions on customer loyalty, on two levels of retail relationships: person‐to‐person (salesperson level) and person‐to‐firm (store level). A total of 1,261 surveys were administered to shoppers who were leaving a large chain departmental store in Victoria, Australia. The results showed that service quality is positively associated with customer loyalty, and that the relationship between the two is stronger at the company level, rather than at the interpersonal level. Specifically, among the dimensions of service quality, the most significant predictor of customer loyalty at a company level is tangibles, while the most significant predictor of customer loyalty at an interpersonal level is empathy. Further discussion and managerial implications can be drawn from these findings.