Effect of service quality and product quality on customer loyalty - The case of Dien May Xanh retail in Ho Chi Minh city
Vinh, Dang Quang
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study aims to identify factors impacting on the two level of customer loyalty (customer loyalty to store and customer loyalty to staff at Dien May Xanh retail Ho Chi Minh City. For this purpose, customer loyalty to staff is impacted by 5 dimensions of service quality Personal Interaction, Policy, Physical Aspects, Reliability, and Problem Solving. Customer loyalty to store is influenced by 8 dimensions in which 5 dimensions belong to service quality and 3 dimensions of product quality, Product Features, Aesthetics, and Customer-perceived Quality. Quantitative approach was the major method used, with statistical techniques applied, including reliability test, exploratory factor analysis, correlation and linear regression to find out factors affect the two level of customer loyalty. This study found that there are 3 factors impacting on the customer loyalty to staff. These are Personal Interaction, Policy and Problem Solving and 5 factors influencing customer loyalty to store Personal Interaction, Policy, Physical Aspects, Reliability and Problem Solving. It can be found that only factors of service quality affect customer loyalty of Dien May Xanh retail in Ho Chi Minh City. In order to achieve high level of customer loyalty, Dien May Xanh retail should has better all 5 factors of service quality. Besides that, 2 factors Personal Interaction and Problem Solving have the most effect on customer loyalty to staff and customer loyalty to store respectively. The findings help Dien May Xanh retail in Ho Chi Minh city understand better about the what factors can gain customer loyalty, the relationship between service quality, product quality and loyalty of customers. Therefore, this research may have implication for Dien May Xanh in developing their strategies to improve customer loyalty through service quality and product quality.