Service Quality Influence Customer Satisfaction and Loyalty

Study is aimed at measuring dimensions of Retail Service Quality that has an impact on Customer Satisfaction and Customer Loyalty in organized Food and Grocery Retail shoppers of Bhopal City in central India. Data was collected from 216 food and grocery customers using Convenience Sampling technique through Structured Questionnaire. IBM SPSS 16 software for Exploratory Factor Analysis (EFA) and Smart PLS 3.2.6 software for Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM) were used to analyse and validate the Path Model. The SEM results reveal that three factors viz. Physical Aspects, Price and Payment do not have a significant positive influence on Customer Satisfaction. Also, Customer Satisfaction has significant positive influence on Customer Loyalty. The study offers opportunities to organized Food and Grocery Retailers in Central India to focus on these Service Quality Dimensions while formulating strategies for gaining competitive advantage, attracting new customer and at the same time retain old customers by enhancing Customer satisfaction and Customer Loyalty.