DETERMINANTS OF CUSTOMER SATISFACTION AND LOYALTY IN THE TRADITIONAL RETAIL SERVICE

In last decades the service quality was assumed as one of the most important factors contributing to the consumers' satisfaction. Nevertheless, there is a great misunderstanding regarding how service quality can be measured in order to enhance customer satisfaction. The quality and performance of any service are dependent on customer expectations and on the efficiency of the company to serve its customers. The crucial point of customer satisfaction is to identift the important attributes, considered by customers as their needs and expectations. The purpose of this study is to examine the suitability of SERVQUAL model methodology to evaluate the perceived quality of the service offered by traditional retail, namely in traditional retail stores in Portugal. The conceptual model proposed in this paper aims to analyse whether (1) perceived service quality (five dimensions of SERVQUAL) directly contributes to customer satisfaction, customer perceived value and corporate image; (2) corporate image and customer-perceived value directly contribute to customer satisfaction; (3) customer-perceived value directly contribute to corporate image; (4) customer satisfaction directly influences the intention to return to store, i.e. the loyalty to staff and WOM recommendation (Word-of-Mouth communication intention); and (5) the loyalty to staff has a direct influence on the intention to return and this has a direct impact on WOM recommendation. The results suggest that service quality significantly influences corporate image, perceived value and customer satisfaction. Furthermore, the perceived value and quality service are the main determinants of customer satisfaction. Moreover, customer satisfaction, corporate image, and perceived value, significantly affect the behavioural intentions towards shopping.