Links among service quality, customer satisfaction and loyalty in Vietnam retail industry during the COVID-19 pandemic

Abstract

In-store service quality and customer satisfaction, with its final effect on customer loyalty, have attracted relatively little attention during the COVID-19 pandemic in Vietnam. This study examines the causal links among service quality, customer satisfaction and loyalty in Vietnam retail industry. A questionnaire-based survey collected data from 249 Vietnamese customers from a supermarket in Danang City during the lockdown. The research model was validated using PLS-SEM. The findings show that: 1) physical aspects, reliability, personal interaction, customer care, and policy as the five components of service quality positively influence customer satisfaction; 2) customer satisfaction has a positive influence on loyalty and also plays a mediating role linking service quality and loyalty; 3) among these components, reliability and customer care make a difference between direct purchase and shopping through electronic devices. Consequently, retail managers should significantly improve the five dimensions of service quality to maintain customer satisfaction and loyalty; among these dimensions, reliability and customer care should be considerably paid attention to when customers purchase online.