Service quality and store design in retail competitiveness

Abstract

Purpose This paper aims to analyse the importance of service quality and store design as critical variables to promote differentiation and make consumers feel satisfied and committed to a retail brand. Retailers usually undervalue the store design as an element of the strategic mix. However, it may be one of the critical elements to increase retailers’ competitive advantages.

Design/methodology/approach This exploratory study was based on 349 valid responses to a questionnaire online through a snowball sampling approach analysed with structural equation modelling.

Findings The results confirmed that customers’ service quality positively impacts their satisfaction and commitment to the retail brands. However, store design moderates the relationship between customer satisfaction and commitment. The consumers with a higher appreciation for store design presented a lower impact of satisfaction on their commitment to the retail brand. This result shows that a significant part of their satisfaction includes store design appreciation.

Research limitations/implications This exploratory study was restricted to the Portuguese market, and the sample resulted from a convenience snowball approach.

Practical implications The retailers should consider store design as an essential variable in their marketing plans to have satisfied and committed customers and be more competitive.

Originality/value Research on consumers’ behaviour in the retail sector, including the assessment of store design, presents a great potential within the framework of consumer–brand relationship theory, but it is still under-researched. The new model presented highlights the role of store design as a moderator variable.