The Effect of Interaction and Product Quality on Customer Satisfaction: Multi-Group Structural Equation Modelling

Abstract

The aim of this article is to investigate the differences in the effect of personal interaction quality and product quality on customer satisfaction between supermarkets and discount markets. To evaluate the data and test the measurement and structural invariance, multi-group structural equation modelling is used. The data used in this study were comprised of 52.6% supermarket customers and 47.4% discount market customers. Our results show strong measurement invariance of the scale. There is no significant difference in the construct validity of product and personal interaction quality and customer satisfaction between supermarkets and discount markets. The product and personal interaction quality scores are significantly higher in supermarkets than in discount markets; however, the customer satisfaction scores are significantly lower in supermarkets. The product and personal interaction quality have a significant positive effect on customer satisfaction for both the supermarkets and discount markets. Significant differences are found between the two types of markets in terms of the relationship between personal interaction quality and product quality on customer satisfaction. While the direct effect of product quality on customer satisfaction is higher in discount markets, the direct effect of personal interaction quality on customer satisfaction is the same in discount and supermarkets.