مرکز منطقه ای اطلاع رساني علوم و فناوري - THE EFFECT OF SERVICE QUALITY ON BRAND LOYALTY IN RETAIL INDUSTRY AND A RESEARCH STUDY

Abstract :

Customer Relationship Management (CRM) and service quality approaches are the most effective ways for retail stores to compete for creating long term brand and customer loyalty by way of ensuring customer satisfaction. Retaining the increasingly sensitive and selective customers has become vital for the retail stores in today’s competitive environment. Within this context, retail stores offer similar services to both sustain their profitability and ensure customer loyalty. Specifically, these stores offer transportation services, run various campaigns, and try to provide effective solutions within their customer services units. The cost of carrying out these activities plays a pressing role. However, the fact that avoiding these costs will lead to customer loss prompts retailing stores to analyze service quality in CRM. In this study, the concepts of service quality and brand loyalty are co-analyzed. The service quality of customer services department of Başakşehir/İstanbul branch of Migros has been measured with a satisfaction survey among customers. The effect of the service quality on brand loyalty is analyzed via structural equation modeling. As a result and based on the Migros example, this study concludes that Migros attaches particular importance to CRM and the service quality contributes significantly to the brand loyalty.