Assessing the Impact of the Retail Service Quality and In-Store Logistics on Customer Satisfaction and Loyalty

Abstract

Measuring service quality in the traditional markets to be very interesting, especially linked to in-store logistics, satisfaction, and loyalty of traditional markets customer. The purpose of this research is to analyze the influence of retail service quality and in-store logistics, on customer satisfaction and loyalty in the Indonesian traditional market context. The model proposed is to study the relationship between retail service quality and in-store logistics, satisfaction, and commitment. This research has been conducted on 400 customers in 16 traditional markets in West Java, Indonesia. A procedure of structural equation modeling has been applied to evaluate the proposed research model. The methodology used consists of two stages. The first step was to check the construct validity through Convergent Validity (CV), Average Variance Extracted (AVE), Construct Reliability (CR), and Discriminant Validity (DC). Secondly, structural equation modeling. The results reveal that retail service quality has positively influenced loyalty, however, they show a non-significant effect on customer satisfaction. On the other hand, in-store logistics have positively influenced customer satisfaction, but not customer loyalty. Furthermore, satisfaction also positively influences loyalty.