An Analysis of Customer-Pull Factors and the Process of Store Loyalty

Abstract

The study aims to test the relationship between Customer Service Experience and Loyalty. The salespersons’ (or store managers’) relationship with the customer assumes paramount importance, in case of identical product offerings by competitors, as in case of medical stores. Hence, it would largely serve the interests of service marketers to be able to identify and concretize the intangible customer-pull factors, in case of retail set-ups with almost identical tangible offerings. On the basis of extensive exploratory interviews, the variables used for measuring customer loyalty were culled from discussions carried out with medical store owners/ managers. Thereafter a ‘Loyalty Test’ was used aimed specifically at measuring loyalty of customers. Loyalty of customers, for the purpose of this study, has been interpreted in terms of re-patronage, positive word of mouth, and recommendations. This test was administered to the customers of various medical stores. This study consequentially attempts to develop a set of actionables, or ‘preferred service behaviours’ by the salespeople or store managers. The results provide ample evidence that focusing on relationships has a payoff for customer loyalty and re-patronage. Through extraordinary customer service, a store can leverage differentiated services to provide a superior customer experience that can build loyalty.