Measuring Retail Service Quality: An Empirical Assessment of the Instrument

Abstract

Retailing in India is growing at the rate of about 18-20 per cent per annum. As part of its strategy to gradually open it up to foreign competition, the government is also in the process of increasing foreign direct investment in the retail sector. At the same time, the urban consumer is becoming more discerning and demanding as far as the lifestyle is concerned. Urban Indian household income and purchasing power are also on the rise. Under such circumstances, the success of organized retailing in India mainly depends on delivery of services through quality improvements. In service organizations, customer-perceived service quality is considered as one of the key determinants of business performance. So far, in the Indian context, there is a dearth of tested instruments which can measure customer-perceived service quality of a retail store. At the same time, instruments developed in other countries have not been tested for their applicability in the Indian retail industry. It is in this context that this paper reports on the application of Dabholkar, Thorpe and Rentz's (1996) retail service quality scale in measuring the gap between the customers' expectations and their perceptions about the service quality of retail stores in India. Statistical analyses were performed to test the dimensionality of service quality and to examine the reliability of the scale. Finally, the analysis of the gap scores was used to suggest relevant improvements in the retail store service quality. The results indicate the following: Although the instrument was found to be quite reliable, the gap scores did not merge into five dimensions of service quality as proposed by the scale developers; rather, the gap scores roughly merged into nine dimensions. The instrument and the five dimensions of service quality may need considerable restructuring. A few statements which showed considerable reliability problems should be restated or substituted by more relevant statements. The instrument may not be applicable to the retail sector in India without further restructuring. Further research is necessary to understand retail store service quality in India. The analysis of the gap scores indicates that the highest perceived service gap lies in the policies of the retail stores, particularly, parking facilities provided by them. Apart from this, all other statements also show a negative gap implying the need for considerable improvements in retail service quality. Therefore, as organized retailing develops in India, retail stores in India will have to improve the quality of their services significantly in order to compete successfully in the global marketplace.

Evaluation of retail service quality – a fuzzy AHP approach

“…The retailers are highly expected to provide avenues that would give maximum value for the money and time spent by the customers. The retail arena today is very different-the opportunities are incredible but exploiting them is extremely tough (Parikh, 2006). Retailers need to continuously focus on areas under their control; this may give them an edge over their competitors and to survive in the economic crisis.…”

“…She concluded that the RSQS dimensions were not valid in India. Parikh (2006) studied the applicability of RSQS in Indian retail and found that the five dimensions are still useful and the overall reliability of the instrument is quite acceptable. He also suggested that once the factors are appropriately modified, the instrument can very well be utilized under the Indian conditions as well.…”

Retail service quality in small retail sector: the Indian experience

“…Collectivism does not play a role as a moderator on the relationship quality -behavioural intentions and service quality behavioural intentions in a low social interaction culture. Parikh (2006) used the RSQS to examine its applicability in Indian retail sector. The results suggest that the scale was reliable for measuring retail service quality.…”

India-focused publications in leading international business journals

“…We have already started to see scholarly interest in that direction (Asakawa & Som, 2008;Khanna, 2009) but greater focus is required. Few important sectors such as automobiles, tourism, retail, healthcare, and IT-enabled services/BPO have not been extensively researched although these are growing in the Indian context Lahiri, Kedia, Raghunath, & Agrawal, 2009;Parikh, 2006;Sarkar, 2009). Future research may address the progress that has been made in these sectors.…”