Online from: 1973
Subject Area: Industry and Public Sector Management
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|Title:||Measuring service quality in retail loyalty programmes (LPSQual): Implications for retailers' retention strategies|
|Author(s):||Nor Asiah Omar, (School of Management, Universiti Kebangsaan Malaysia (National University of Malaysia), Bangi, Malaysia), Rosidah Musa, (Faculty of Business Management, Universiti Teknologi Mara, Shah Alam, Malaysia)|
|Citation:||Nor Asiah Omar, Rosidah Musa, (2011) "Measuring service quality in retail loyalty programmes (LPSQual): Implications for retailers' retention strategies", International Journal of Retail & Distribution Management, Vol. 39 Iss: 10, pp.759 - 784|
|Keywords:||Department stores, Loyalty programmes, Malaysia, Scale development, Service quality, Superstore|
|Article type:||Research paper|
|DOI:||10.1108/09590551111162257 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Acknowledgements:||The authors would like to thank anonymous reviewers of the International Journal of Retail & Distribution Management (IJRDM) for their helpful comments on earlier drafts of this article.|
Purpose – This research aims to empirically develop a reliable and valid scale for measuring the service quality of retail loyalty programmes (loyalty programme service quality (LPSQual)) in the context of department stores and superstores in Malaysia.
Design/methodology/approach – By adapting the process proposed by Churchill for developing measures of marketing constructs, an instrument to assess LPSQual in Malaysia is formulated. The methodology consists of developing the scale based on a literature review and qualitative method. The proposed scale is then purified and validated through exploratory factor analysis and confirmatory factor analysis.
Findings – The proposed instrument (LPSQual) contains 26 attributes in seven dimensions: reward, tangibility, policy, information usefulness, courteousness/helpfulness, personalization and communication.
Research limitations/implications – Further testing of the scales across multiple contexts is necessary for validity enhancement.
Practical implications – Retail managers must give serious thought to the non-material or “soft-benefits” component in a loyalty programme which emphasizes courteous/helpful and personalized services. Thus, managers need to focus on service personnel by providing training to upgrade employees' skills in creating and delivering pleasant experience/service encounters to cardholders.
Originality/value – The main contribution of this paper is the development and validation of a new scale called LPSQual, which focuses on service quality in a loyalty programme. On the one hand, it is a pioneer in the study of service quality in loyalty programmes and, on the other hand, it confirms results from other researches on non-material strategies that can be used in loyalty programmes.
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