Purpose – To contribute to the largely unexplored issue of directly assessing the effect of service quality factors on store performance. Design/methodology/approach – Service quality is decomposed into tangible elements, such as store size and personnel. A binary probit model is utilized in order to analyze the effect of various service quality factors on the probability that a store performs above average compared with its competitors. Findings – Results indicate that the store size, product variety, location and belonging to chain, variables exert the largest positive effect upon the probability that a store experiences above‐average performance. Research limitations/implications – The present study suffers the limitation of a rather small usable questionnaires sample, albeit that the very satisfactory fit of the estimated econometric model allows for the findings to be a reliable comparison basis with future findings. Practical implications – The approach proposed here can be widely used for empirical investigation in order to provide findings that may be compared across services sectors, trading places/countries and time. On the other hand, the importance of such findings to managerial decision‐making processes is evident. Originality/value – The paper introduces a framework for empirically investigating the direct effect of service quality elements on store performance.
Managing Service Quality – Emerald Publishing
Published: Feb 1, 2005
Keywords: Service quality assurance; Electrical goods; Shops; Performance levels; Greece
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