A Study on the Impact of Retail Service Quality Dimensions on Customer Satisfaction in Sri Lankan Supermarkets

Abstract

The supermarket sector in Sri Lanka has been expanding and growing rapidly over the past few years, thereby increasing the competition and rivalry within the industry. The success of a supermarket greatly depends on the service quality and the quality of the products it sells and it is seen as a crucial dimension of customer satisfaction. This study was carried out to identify the impact of retail service quality dimensions on customer satisfaction and to identify the most impactful factors affecting customer satisfaction. Based on past literature, the service quality dimensions were determined using the RSQS framework and five dimensions, physical aspects, reliability, personal interaction, problem-solving and policy were identified along with a new dimension, technology adoption which is an important factor in the modern retailing environment. The data collection was done through a web-based questionnaire (google form) that consisted of thirty-six questions including thirty Likert scale questions. A total of 130 responses were used for the data analysis process. Data analysis was done using the IBM SPSS software where the hypotheses were tested using multiple regression analysis. The research findings showed that all retail service quality dimensions except reliability had a positive effect on customer satisfaction. Technology adoption is reported to have the most significant influence on customer satisfaction thereby, showing the importance of this dimension suggesting that supermarkets focus more on improving their cashless payment methods and online purchases. Finally, this study provides new and useful insights into the importance of service quality and how to improve the retail service quality in supermarkets which would lead to increased customer satisfaction.