Evaluating the retail service quality of cellphone supermarkets in ho chi minh city

RESEARCH PROJECT
(BMBR5103)

EVALUATING THE RETAIL SERVICE QUALITY
OF CELL PHONE SUPERMARKETS
IN HO CHI MINH CITY

STUDENT’S FULL NAME
STUDENT ID
INTAKE
ADVISOR’S NAME & TITLE

: LE KHAC THINH
: CGS00018493
: SEP-2014
: Dr. PHAN DINH NGUYEN

Dec 2015


Advisor’s assessment

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Advisor’s signature

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ABSTRACT

Retail service quality plays an important role in enhancing customer satisfaction
and customer loyalty, which significantly contributes to success of cell phone
supermarkets. Therefore, a research into factors affecting the retail service
quality of cell phone supermarkets is necessary because the research finds
solutions to enhance the level of retail service quality of cell phone
supermarkets.
This research uses the Retail Service Quality Scale (RSQS) model to examine
the relationship between the retail service quality and its antecedents, including

physical aspects, reliability, personal interaction, problem solving and policy in
cell phone supermarkets in Ho Chi Minh City (HCMC), and evaluate the level
of retail service quality of cell phone supermarkets in HCMC. With respect to
research methodology, the research pursues positivism philosophy to have an
objective view on researched subjects and uses deductive approach, survey
strategy and quantitative method to achieve research objectives. A technique of
data collection is self-administered questionnaires which are delivered directly
by hand to 150 customers of select cell phone supermarkets in HCMC and
collected later. The research uses a technique of data analysis which is software
of SPSS 11.5. After conducting reliability test, factor analysis and multiple
regression analysis, the research findings show that five factors, namely
physical aspects, reliability, personal interaction, problem solving and policy
have positive influences on the retail service quality of cell phone supermarkets
in HCMC. Among the five factors, reliability has the strongest influence on the
retail service quality of cell phone supermarkets in HCMC and physical aspects
have the weakest one. The research findings also reveal that the current level of
retail service quality of cell phone supermarkets in HCMC is low. The author
proposes some recommendations based on the research findings to managers of
cell phone supermarkets in HCMC to improve the factors influencing on the
retail service quality and enhance the level of the retail service quality of cell
phone supermarkets in HCMC.

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TABLE OF CONTENTS

ABSTRACT.................................................................................................... 2

TABLE OF CONTENTS................................................................................ 4
LIST OF TABLES .......................................................................................... 5
ABBREVIATION .......................................................................................... 6
Chapter 1: Introduction ................................................................................... 7
1.1 Background of the study ........................................................................... 7
1.2 Significance of the study......................................................................... 12
1.3 Overall research aim and individual objectives ...................................... 12
1.4 Boundary of the study ............................................................................. 13
1.5 Structure of the study .............................................................................. 13
Chapter 2: Literature Review ........................................................................ 15
Chapter introduction ..................................................................................... 15
2.1 Understanding of service quality ............................................................ 15
2.2 Dimensions of service quality................................................................. 17
2.3 Factors influencing on retail service quality ........................................... 18
2.3.1Understanding of retail service quality ................................................. 18
2.3.2 The relationship between retail service quality and its
antecedents .................................................................................................... 20
2.3.2.1 The relationship between physical aspects and retail service quality 20
2.3.2.2 The relationship between reliability and retail service quality ......... 21
2.3.2.3 The relationship between personal interaction and retail service quality .....22
2.3.2.4 The relationship between problem solving and retail service quality ......22

2.3.2.5 The relationship between policy and retail service quality............... 23
2.4 Measurement of the level of retail service quality.................................. 24
Chapter summary .......................................................................................... 25
Chapter 3: Methodology ............................................................................... 27
Chapter introduction ..................................................................................... 27
3.1 Research philosophy ............................................................................... 27
3.2 Research approach .................................................................................. 29
3.3 Research strategy .................................................................................... 29

3.4 Research method ..................................................................................... 31
3.5 Methods of collecting data ...................................................................... 31
3.5.1 Sources of data ..................................................................................... 31
3.5.2 Questionnaire ....................................................................................... 32
3.6 Sampling techniques ............................................................................... 34
3.7 Technique of data analysis ...................................................................... 35
3.8 Ethical Issues .......................................................................................... 36
3.9 Validity and reliability consideration of the research methodology ..................36

3.10 Limitations of the research methodology ............................................. 36
Chapter summary .......................................................................................... 37

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Chapter 4: Finding, Discussion and analysis ................................................ 38
Chapter introduction ..................................................................................... 38
4.1 Overview of cell phone supermarkets industry in HCMC ..................... 38
4.2 Demographic information ....................................................................... 38
4.3 Reliability test ......................................................................................... 40
4.3.1 Standards of reliability test .................................................................. 40
4.3.2 Reliability test of retail service quality dimensions ............................. 41
4.4 Factor analysis ........................................................................................ 47
4.4.1 Standards of factor analysis ................................................................. 47
4.4.2 Factor analysis of retail service quality dimensions ............................ 49
4.5 Research results based on multiple regression analysis .......................... 55
4.5.1 Understanding of multiple regression analysis .................................... 55
4.5.2 ........ The relationship between retail service quality and its antecedents

in cell phone supermarkets in HCMC.......................................................... 55
4.5.3 The most important factor affecting retail service quality in supermarket
in HCMC....................................................................................................... 58
4.6 Research results based on descriptive analysis ....................................... 60
Chapter summary .......................................................................................... 69
Chapter 5: Conclusion and Recommendation .............................................. 70
Chapter introduction ..................................................................................... 70
5.1 A summary of the research process ........................................................ 70
5.2 Conclusions ............................................................................................. 70
5.3 Contributions of the study....................................................................... 73
5.4 Limitations and suggestions for further research .................................... 74
5.2 Recommendations ................................................................................... 75
Chapter summary .......................................................................................... 76

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LIST OF TABLES
Table 1.1 – Key data of HCMC
Table 2.1 – Definitions of service quality
Table 4.1 – Demographic information of customers
Table 4.2 – Reliability test results of dimensions of physical aspects
Table 4.3 – Reliability test results of reliability dimension
Table 4.4 – Reliability test results of personal interaction dimension
Table 4.5 – Reliability test results of problem solving dimension
Table 4.6 – Reliability test results of policy dimension
Table 4.7 – Structures of the retail service quality dimensions after
implementing the reliability test

Table 4.8 – Results of factor analysis of physical aspects
Table 4.9 – Results of factor analysis of reliability
Table 4.10 – Results of factor analysis of personal interaction
Table 4.11 – Results of factor analysis of problem solving
Table 4.12 – Results of factor analysis of policy
Table 4.13 – List of variables after factor analysis
Table 4.14 – Model summary of retail service quality
Table 4.15 – Coefficients of retail service quality
Table 4.16 – Model summary of physical aspects
Table 4.17 – Coefficients of physical aspects
Table 4.18 – Model summary of reliability
Table 4.19 – Coefficients of reliability
Table 4.20 – Model summary of personal interaction
Table 4.21 – Coefficients of personal interaction
Table 4.22 – Model summary of problem solving
Table 4.23 – Coefficients of problem solving
Table 4.24 – Model summary of policy
Table 4.25 – Coefficients of policy
Table 4.26 – Descriptive results of the evaluation level of physical aspects
Table 4.27 – Descriptive results of the evaluation level of reliability
Table 4.28 – Descriptive results of the evaluation level of personal interaction
Table 4.29 – Descriptive results of the evaluation level of problem solving
Table 4.30 – Descriptive results of the evaluation level of policy
Table 4.31 – Descriptive results of the level of retail service quality
Table 4.32 – Results of the retail service quality level by gender
Table 4.32 – Results of the retail service quality level by age
Table 4.34 – Results of the retail service quality level by marital status
Table 4.35 – Results of the retail service quality level by education level
Table 4.36 – Results of the retail service quality level by monthly salary

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ABBREVIATION
AMMCC: Acceptance of most major credit cards
CACPA: Clean, attractive and convenient public areas
CFSTT: Customers feel safe in their transactions
COH:
Convenient operating hours
EACDI: Employees’ ability of handing customer complaints directly and
immediately
EBICC: Employees’ behavior instills confidence in customers
ECCC:
Employees are consistently courteous with customers
EFSTR: Error-free sales transactions and records
EHKAQ: Employees have the knowledge to answer customer’s questions
EGPSC: Employees give prompt service to customers
ENBRR: Employees are never too busy to respond to customers’ requests
ETCCT: Employees treat customers courteously on the telephone
ETESP: Employees tell customers exactly when services will be performed
GCIA:
Giving customers individual attention
GDP:
Gross Domestic Product
GRDI:
Global Retail Development Index TM
H:
Hypothesis

HCMC: Ho Chi Minh City
HQM:
High quality merchandise
IAPST: Implementation ability of promises of doing something by a certain
time
KMO:
Kaiser-Meyer-Olkin Measure of Sampling Adequate
MBA:
Master of Business Administration
MEA:
Merchandise availability
MLEF:
Modern-looking equipment and fixtures
PCP:
Plenty of convenient parking
PIMS:
Profit Impact of Marketing Strategies
PSRFT: Performance of the service right the first time
RSQS:
Retail Service Quality Scale
SISPC:
Sincere interest in solving problems of customers
SLECF: Supermarkets layout is easy for customers to find what they need
SLECM: Supermarkets layout is easy for customer to move around
SOTCC: Supermarkets offer their own credit cards
SPSS:
Statistical Package for the Social Sciences
VAPF:
Visually appealing physical facilities
VAMSS: Visually appealing materials associated with cell phone

supermarkets services

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CHAPTER 1
INTRODUCTION
1.1 Background of the study
 Context of the study
After Vietnam became an official member of World Trade Organization (WTO) in 2007, it
has opened its retail market and has removed trade barriers to welcome foreign investors.
Fast pace growth in the Vietnamese retail market has made Vietnam become one of the
world’s most attractive retail markets for multinational retailers.
Vietnam was the world’s fourth most attractive retail market in 2007 (A.T. Kearney, 2007)
and quickly became the world’s most attractive retail market in 2008 with the highest
Global Retail Development Index TM (GRDI) that was highly drawing interest from large
foreign retailers around the world (see figure 1.1). The opening of the Vietnamese
economy has encouraged global large retailers to invest their capital in the Vietnamese
retail market. With a recently deregulated retail market, a robust economy and a stable
political base, Vietnam is attempting to replicate China’s economic success and is stealing
the spotlight from the leaders in Asian retail markets, India and China (A.T. Kearney,
2008).
Nowadays, there is a significant quantity of retail outlets in the Vietnamese retail markets,
including over 50 cell phone supermarkets, lot of shopping centers. However, the retail
outlets still do not meet demand in a market of nearly 90 million people. The retail market
in Vietnam increased by nearly 10 percent annually in Q1, 2015 (Vietnamplus, 2015).

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Table 1.1 – Key data of Ho Chi Minh City
Data of Ho Chi Minh City

2014

Core urban population, millions

7.1

Core urban area, km2

518

Core urban inhabitants/km2

13,707
9.0

Metropolitan population, millions
Metropolitan area, km2

2,095

Metropolitan inhabitants/km2

4,296

Metropolitan retail sales (USD millions)

18,684

Share of national retail sales (%)

29.9

Vietnamese retail sales/capita (USD)

692

Ho Chi Minh City retail sales/capita (USD)

2,076

Source: Deloitte (2014).
 Reasons for selecting the research topic
Firstly, service quality plays an important role in business success of companies.
The link between service quality and profits is neither easily understandable nor simple
(Greising, 1994). Phillips, Chang and Buzzell (1983), and Buzzell and Gale (1987) who
use the Profit Impact of Marketing Strategies (PIMS) database, find that superior service
quality enhances business performance via market position.
Terblanche (1998) recognizes that companies offering reliable and high quality services
will have higher sales, lower cost and higher productivity and thus lead to higher profits
than companies having low quality services. This has been illustrated in figure 1.2.

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Figure 1.2 – Roles of service quality

Source: Terblanche (1998).
Service quality leads to increase retention and business from existing customers.
Parasuraman, Zeithaml and Berry (1988), Fornell and Wernerfelt (1988), and Anderson
and Sullivan (1993) recognize that there is a positive and significant relationship between
customer perceptions of service quality and their purchase intention. Rust, Zahorik and
Keiningham (1995) indicate that service quality improvement leads to higher customer
satisfaction and retention rate, greater revenue and market share, and yields greater
profitability. Reichheld and Sasser (1990) identify that an increase of 5 percent in customer
retention increases profits from 25 to 85 percent. Customer retentions positively affects
profits through cost reductions, repurchase increases, willingness to pay from medium to
high prices and positive word of mouth (Zeithaml, 2000).

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A benefit of service quality is to spread positive word of mouth communication. People
rely on positive word of mouth communication of their friends, relatives and colleagues to
implement buying decisions rather than editorial and advertising (Danaher and Rust, 1996;
Donaton, 2003; Khraim, 2011; Danaher and Rust, 1996; Kordupleski, Rust and Zahorik,
1993). Zemke and Schaaf (1990) determine that service leaders gain an average of 6
percentage of market share per year, while their poor service quality counterparts lose 2
percentage of market share per year.
A company with high service quality has more opportunities of demanding high prices.

Gale (1992) claims that businesses in the top quintette of service quality on average have
an 8 percentage higher price than their competitors. Customers happy with a company are
likely to increase their purchases of services or products even if prices of the services or
products are high (Reichheld and Sasser, 1990; Zeithaml, 2000). Anderson (1996)
recognizes that higher customer satisfaction of service quality leads to higher tolerance of
price.
High service quality reduces costs resulting from less redoing of the services. High
service quality reduces costs related to replacing defective services and handling
complaints (Fornell and Wernerfelt, 1988). Selling costs of existing customers are on
average 20 percent lower than selling to new customers because companies must spend
money on advertising to attract new customers. It costs 5 times as much to obtain a new
customer as to keep an existing customer (Peters, 1988). Heskett, Sasser and Schlesinger
(1997) claim that the longer customers stay with companies, the lower the costs serve the
customers.
With high service quality, employees have higher morale and enthusiasm. To have high
service quality, a retailer must provide training for employees, give the employees
instrumental and emotional support, enpower the employees to enhance performance of
delivering service quality. When the employees have excellent knowledge of products and
are empowered by their stores, they become more enthusiastic and zealous in their
performance of delivering services (Cant, 2005).

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High service quality leads to lower staff turnover. According to Zemke and Schaaf
(1990), high service quality reduces recruitment costs because of lower staff turnover.
Employees who work in a high quality service company tend to be happier in their jobs
and less likely to leave the company than companies whose services are poor (Schleslinger

and Heskett, 1991). Employees of a company having high service quality are often loyal to
the company and fervently implement services that lead to increases of sales and profits
(Terblanche, 1998).
Secondly, customers have shopping habits in retail outlets, especially modern cell phone
supermarkets in HCMC. Customers pay more attention to product and service quality
when their personal income increases. Therefore, cell phone supermarkets in HCMC with
high product and service quality will draw customers. Currently, quality of products in
most cell phone supermarkets in HCMC is equal; therefore, the cell phone supermarkets in
HCMC consider delivery of high service quality as a competitive advantage in the fierce
retail market (Ellram, Londe and Weber, 1999).
Lastly, cell phone supermarkets in HCMC with poor retail service quality have received
many complaints of customers, such as inconvenience of parking, quality of the products
and poor product knowledge of employees. The cell phone supermarkets will retain their
positions in the retail market by improving their retail service quality. The level of the
retail service quality of cell phone supermarkets in HCMC is still not high because many
cell phone supermarkets in HCMC do not have an appropriate instrument to identify
factors affecting the retail service quality. Since the above reasons and the personal interest
in marketing section, the author decides to choose the topic of the study as follows:
“Evaluating retail service quality of cell phone supermarkets in Ho Chi Minh City”

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1.2 Significance of the study
The research can help existing cell phone supermarkets in HCMC identify factors affecting
their retail service quality to enhance their retail service quality and improve their
competition positions.
The research can help domestic and foreign investors who have intention of opening cell

phone supermarkets in HCMC grasp factors affecting the retail service quality of a
supermarket firmly to build the high level of the retail service quality.
The research can help existing domestic and foreign managers of cell phone supermarkets
and competitors such as shopping centers and convenience stores in HCMC pay more
attention to dimensions of the retail service quality when they plan and implement
marketing strategies.
The research can test whether theoretical model of measuring the retail service quality that
is used in Western countries can be used in Vietnam, especially HCMC.
1.3 Overall research aim and individual objectives
The overall research aim is to evaluate the retail service quality of cell phone supermarkets
in HCMC. In order to achieve the overall research aim, the research must focus on four
individual research objectives as follows:
- To deepen the knowledge of the concept and the dimensions of service quality.
- To examine the relationship between the retail service quality and its antecedents in
cell phone supermarkets in HCMC.
- To explore the most important factor affecting the retail service quality of cell phone
supermarkets in HCMC.
- To evaluate the level of retail service quality of cell phone supermarkets in HCMC.

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1.4 Boundary of the study
The research only evaluates the retail service quality of cell phone supermarkets in HCMC
because of limitations of research time. Among the cell phone supermarkets in HCMC, the
research only focuses on domestic cell phone supermarkets chains. Among the domestic
cell phone supermarkets, the author only chooses the three domestic cell phone
supermarkets to evaluate the overall retail service quality of cell phone supermarkets in

HCMC because almost customers in HCMC often go shopping in three cell phone
supermarkets including The Gioi Di Dong. FPT Shop and Hnam Mobile.
1.5 Structure of the study
Chapter 1: Introduction
This chapter presents background of the study, main reasons for selecting the research
topic, the overall research aim and individual research objectives, the boundary of the
study and the structure of the study.
Chapter 2: Literature review
This chapter mentions a theoretical basic of service quality that the researcher must take
into consideration including the concept of service quality and the service quality
dimensions. In this chapter, hypotheses of the relationship retail service quality and its
antecedents including physical aspects, reliability, personal interaction, problem solving
and policy in cell phone supermarkets in HCMC are given and then a specific studying
framework is built for the research.
Chapter 3: Research methodology
This chapter indicates the research methodology which the author uses including research
philosophy (positivism), research approach (deduction), research strategy (survey strategy)
and research method (quantitative method). Moreover, details on a sampling technique
(simple random sampling), and a technique of quantitative data analysis (software of SPSS
11.5) are presented. In addition, validity and reliability considerations, limitations of the

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research methodology and ethical issues are also discussed. Technique used to collect the
primary data from 150 customers of cell phone supermarkets in HCMC is questionnaire.
Chapter 4: Findings, analysis and discussion
This chapter presents and analyses data collected from the survey strategy. The hypotheses

are proposed in chapter 2 are interpreted in this chapter. Moreover, a comparison between
findings of the research and the theories mentioned in chapter 2 is provided.
Chapter 5: Conclusions and recommendations
This chapter states the main findings of the research, evaluates the degree to which the
research meets research objectives and answers research questions, indicates areas for
further research, suggest recommendations for improving retail service quality of cell
phone supermarkets in HCMC.

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CHAPTER 2
LITERATURE REVIEW
Chapter introduction
Service quality is considered as one of the top priorities of companies in recent years
because it remains customer satisfaction, customer loyalty, growth and profitability
(Leonard and Sasser, 1982; Gammie, 1992; Ladhari, 2009). This chapter presents theories
related to the research objectives: (1) understanding of service quality, (2) dimensions of
service quality, (3) the relationship between the retail service quality and it antecedents and
(4) measurement of retail service quality.
2.1 Understanding of service quality
Service quality is conceptualized as a customer’s overall impression of the relevant
superiority or inferiority of services (Zeithhaml, Parasuraman and Berry, 1990). Czepiel,
(1990), Grönroos (2000) and Hernon (2002) explain that service quality is the relationship
between customers’ expectations for superiority services and their perceptions of services
delivered. Customers are satisfied a service when they perceive that the service meets or
exceeds their expectations (Zeithaml and Bitner, 2003; Berndt and Brink, 2004; Parikh,
2006; Levy and Weitz, 2007). Zeithaml (1988) and Robinson (1999) indicate that service

quality is a customer’s attitude or overall judgment of the superiority or excellence of
services. Service quality is the ability to get desired services from a provider at the right
price; therefore, customers ultimately want better value for their money, acceptable quality
and improved services (Soita, 2012). Sasser, Olsen and Wyckoff (1978) indicate that
service quality dwells more on a process of delivering a service than a service outcome.
Some other service quality definitions of some researchers presented in table 2.1 will
support a deep understanding of service quality.
Table 2.1 – Definitions of service quality

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No.
1

Definition
Service quality is how well the service level delivered
matches customer expectations.

Author
Lewis

and

Booms (1983)

“Service quality is the overall evaluation of a specific
2

service firm that results from comparing the firm’s Parasuraman,
and
performance with the customer’s general expectations of Zeithaml
how firms in that industry should perform”.

3

4

Berry (1985)

Service quality is defined as the extent to which a service Lewis
and
meets or exceeds customer needs and expectations.
Mitchell (1990)
“Service quality is the extent to which the service delivered Ghobadian,
meets the customer’s expectations”
Speller
and
Service quality is the totality of characteristics and features Armstrong

5

and

of a product or a service that satisfy stated and implied Kotler (1996)
needs of customers.
“Service quality is the difference between customer Asubonteng,

6

expectations for service performance prior to the service Mccleary
encounter and their perceptions of the service received”.

Swan (1996)

“Service quality is the comparison between what the Jiang,
7

and

Klein,

customers feel should be offered and what is actually Tesch and Chen
delivered”

(2003)

“Service quality is a global judgment or attitude relating to a Fogli (2006)
8

particular service; the customer’s overall impression of the
relative inferiority or superiority of the organization and its
services. Service quality is a cognitive judgment”.

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2.2 Dimensions of service quality
It is more difficult for customers to assess quality of services objectively than quality of
goods because services are intangible, heterogeneous and inseparable (Garvin, 1983; Kurt
and Clow, 1998).
A technical quality strategy is effective if companies have enough capability to develop
technical solutions not easily achievable by competitors. Nowadays, techniques and
technologies develop quickly, therefore, almost competitors can imitate technical solutions
in relatively short time (Williams and Buswell, 2003). In that case, a functional quality
strategy is becoming important for companies to create positive service quality (Rajicic
and Ciric, 2008).
Figure 2.3 – The Three-Component Model

Service quality

Service
Product

Service
Delivery

Service
Environment

Source: Rust and Oliver (1994).
The model indicates that three dimensions of service quality are service product (technical
quality), service delivery (functional quality) and service environment. The model signifies
the importance of understanding customer expectations and ensuring service performance
to meet customer expectations. Service environment includes the internal environment
which focuses on organizational culture, and external environment which is physical

ambience of the service setting. Biter (1992) highly evaluates the Three-Component model
because the service environment is an integral role in consumer service perception
developments.

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Brady and Cornin (1991) propose Hierarchical Approach model (see figure 2.4). The
model indicates that service quality has three primary dimensions and nine sub-dimensions:
physical environment quality (ambient conditions in service setting, facility design, and
social conditions in service setting), interaction quality (employees’ attitude, behaviour and
expertise of delivering services) and outcome quality (waiting time, tangible evidence, and
service encounter). The model is drawn from four service industries: fast foods, dry
cleaning, photograph developing, amusement parks.
Figure 2.4 – The Hierarchical Approach Model

Service quality

Interactio
n quality

Physical
environme
nt quality

Outcome
quality

Source: Brady and Cornin (1991).
Parasuraman, Zeithaml and Berry (1985) develop the GAP model to indicate important
activities of service organizations affecting customers’ perceptions of service quality. The
GAP model indicates five types of gaps that occur in a typical service encounter (see figure
2.5).

2.3 Factors influencing on retail service quality
2.3.1 Understanding of retail service quality
Service quality is an important strategic weapon in retail environments. Service quality in
retail outlets is different from service quality of product or service oriented companies
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(Fisk, Brown and Bitner, 1993; Gagliano and Hathcote, 1994; Bell, Davies and Howard,
1997; Jones and Doucet, 2000; Finn and Kayande, 2004; Daskalopoulou and Patrou, 2005)
because the retail outlets provide both goods and services for customers. The retail outlets
have impact on quality of services more than quality of products and consider service
quality as a significant strategy of creating customers’ service quality perceptions
(Dabholkar, Thorpe and Rentz, 1996).
Dabholkar et al. (1996) develop Retail Service Quality Scale (RSQS) based on the
SERVQUAL model to measure retail service quality. The model indicates that five factors
affecting retail service quality are physical aspects, reliability, personal interaction,
problem solving, and policy (see figure 2.7).

Figure 2.7 – The Retail Service Quality Scale (RSQS Model)

Retail
service

quality

Primary
dimensions

Reliability

Physical
aspect

Personal
interaction

Problem
solving

Policy

Subdimensions
Appearance Convenience Promises

Doing it
right

Inspiring
confidence

Courteousness/
Helpfulness

Source: Dabholkar, Thorpe and Rentz (1996).
The RSQS instrument has been a predominant method in measuring retail service quality
because this model only employs performance-based measures, which possess high validity
and reliability to capture customer perceptions of retail service quality and overcome

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limitations of the SERVQUAL model (Das, Kumar and Saha, 2010). Therefore, in the
research, the RSQS is used to examine the relationship between the retail service quality
and its dependences in cell phone supermarkets
2.3.2 The relationship between the retail service quality and its antecedents
2.3.2.1 The relationship between physical aspects and the retail service quality
 Concept of physical aspects
Physical aspects of retail stores are physical facilities’ appearance and convenience
provided to customers by the retail store’s layout (Baker, Grewal and Parasuraman, 1994).
Physical aspects of retail stores include physical facilities, equipment and fixtures,
materials related to retail stores’ services, public areas (restrooms and fitting rooms), and
convenience offered to customers by the suitable layout of the physical facilities
(Dabholkar et al., 1996).
 The relationship between physical aspects and the retail service quality
Physical aspects have two sub-dimensions, including appearance and convenience.
Customers are often attracted when physical facilities, equipment and fixtures, materials
related to retail stores’ services (shopping bags, catalogues or statements), public areas
(restrooms and facility rooms) of retail stores are modern, appealing and clean. Physical
aspects have greatly influenced the retail service quality (Dabholkar et al., 1996; Keillor,
Hult, and Kandemir, 2004).
H1: Physical aspects have a positive relationship with the retail service quality in cell

phone supermarkets.
2.3.2.2 The relationship between reliability and the retail service quality
 Concept of reliability
Reliability of a retail store is a combination of keeping promises, having the availability of
products, conducting error-free sales transactions and records, and implementing service
right the first time and all next times (Parasuraman et al., 1988; Dabholkar et al., 1996).
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 The relationship between reliability and the retail service quality
Reliability has two sub-dimensions: promises and doing it right (Dabholkar et al., 1996).
Reliability of a retailer involves the availability of merchandise (Westbook, 1981;
Newman, 2001). In the retail environment, an available product stock of retailers that is
limited refers to lack of reliability of the retailers. Morganosky (1997) claims that
customers who shop at retail stores consider a variety of products as a main criteria to shop
at the retail stores. Customer preferences are influenced by perceptions of product variety.
Therefore, more and more retailers are opening new stores with a large stock to offer a
wide variety in their product range (Kahn and Lehmann, 1991; Broniarcyzk, 1998; Seiders
and Tigert, 2000; Carpenter, 2008). A product stock outage of a store result in customers’
repudiation of purchasing its products (Zinn and Liu, 2001) and have negative effects on
future patronage of customers, detrimental perceptions of customers and negative word of
mouth (Grant and Fernie, 2008; Ladhari, 2008). Reliability is the ability to keep promises
of doing services or something, implement error-free merchandise transactions, provide
products and services right the first time and all next times, meet deadlines, implement
right records of products, and offer right information to customers (Newman, 2001;
Dabholkar et al., 1996).
H2: Reliability has a positive relationship with the retail service quality in cell phone
supermarkets.

2.3.2.3 The relationship between personal interaction and the retail service quality
 Concept of personal interaction
Personal interaction is defined as employees’ consistently courteous attitude with
customers and even treat customers properly on the telephone, employees’ helpfulness
(providing prompt services, telling exactly when service will be performed, responding to
customers’ requests quickly, giving customers individual attention) and employees’ ability
to inspire confidence in customers (employees have knowledge to answer customers’
question, employees’ behaviour instil confidence into customers and customers feel safe in
their satisfactions with the retailer) (Dabholkar et al., 1996).

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 The relationship between personal interaction and the retail service quality
Employees are often considered as facilitators of a sales process that play an important role
in enhancing customers’ positive perceptions of the retail service quality. The most
important attributes of personal interaction are shop-assistant attitudes and treatment of
customers (Gagliano, 1994; Gounaris, 2008). Darian, Tucci and Wiman (2001) emphasize
the importance of shop-assistants’ knowledge regarding products and the importance of
treating customers respectfully. Moreover, if employees have ability to respond to
customers’ requests quickly, offer prompt services, give customers individual attention and
assist customers in finding and selecting products when customers require, the retail store
will attract customers to shop at the retail stores (Sweeney, Soutar and Johnson, 1997;
Jamal and Adelowore, 2008). Customers have positive perceptions of a retailer’s service
quality when it has knowledgeable, courteous and helpful employees who inform exactly
when service will be performed and make customers feel safe in their transactions with the
store. Small things such as smiling, greeting and establishing eye contact give customers a
positive feeling about the store (Winsted, 1997).

H3: Personal interaction has a positive relationship with the retail service quality in
cell phone supermarkets.
2.3.2.4 The relationship between problem solving and the retail service quality
 Concept of problem solving
Problem solving of a retail store refers to employees’ ability of a retail store to handle
returns and exchanges, customers’ problems and complaints. Problem solving of retail
stores includes retail stores’ willingness to handle returns and exchanges, sincere and
genuine interest in solving customers’ problems and complaints directly and immediately
(Dabholkar et al., 1996; Swanson and Kellery, 2001; Vàzquez et al., 2001).
 The relationship between problem solving and the retail service quality
Dabholkar et al. (1996) emphasize the importance of returning and exchanging products
and the ways used by employees to solve customers’ complaints and problems. If retailers

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do not deal with problems and complaints effectively, service failures will result in
customers’ dissatisfaction and anger, and other disastrous consequences (Change, Lee and
Tseng, 2008; Hart, Heskett and Sasser, 1990; Kelley and Davis, 1994). Westbrook (1981)
indicates that customers are interested in the ways that service providers use to settle
customers’ problems and complaints. Customers will have favourable perceptions of the
retail service quality if retailers pay much attention to customers’ problems and have
effective processes of solving the customer problems (Huang, 2009). A good system of
problem solving will detect and solve problems quickly and prevent customers’
dissastisfaction (Lewis and Spyrakopoulos, 2001). Customers are satisfied if they easily
return and exchange products that they bought (Mazursky and Jacoky, 1985). Customers
are likely to repurchase when their complaints and problems are dealt with satisfactorily
(Singh and Widing, 1981; Michel, 2001; Halstead and Page, 1992). Post-transaction

service of retail stores builds customers’ favourable perceptions of service quality in a long
term (Lindquist, 1974).
H4: Problem solving has a positive relationship with the retail service quality in cell
phone supermarkets.
2.3.2.5 The relationship between policy and the retail service quality
 Concept of policy
Policy of a retail store refers to decisions of the retail store related to supply of high quality
mechandise, convenience of operating hours and parking facilities, acceptance of main
credit cards and supply of its own credit cards. Service policies having empathy and
understanding of customers are likely to have positive impact on customers’ perceptions of
retail service quality (Dabholkar et al., 1996).
 The relationship between policy and the retail service quality
Customers prefer shopping retail outlets that convenience of operation hours (Kaufman,
1996). Sloan, Leone, Powers and McNutt (1984), and Steenkamp and Trijp (1989)
recognize that customers are willing to pay more to purchase high quality products they
need. Farhangmehr, Marques and Silva (2000) and Brady and Cornin (2001) state that an
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evaluation of retail service quality includes the evaluation of the performance of physical
goods provided for customers. The evaluation of the performance of the goods that are
offered by retail stores includes the ability to stock a wide range of products, the freshness
of products such as meat, fruit and vegetables, the assortment of fresh produce and
labelling brands of goods distinctly (Vàzquez et al., 2001; Bruhn and Grebitus, 2007).
When a retail store offers a wide product assortment and the products have high quality,
customers feel positive emotions such as pleasure, contentment, excitement (Yoo, Park and
Maclnnis 1998; Thang and Tan, 2003). Mazursky and Jacoky (1985) indicate that
customers assess the retail service quality of retail stores is a policy of accepting credit

cards and providing their own credit cards. Retail stores that have good facilities of
parking, operating hours are more likely to secure favourable customer perceptions of the
retail service quality of the retail stores (Oliver, 1981; Thang and Tan, 2003).
H5: Policy has a positive relationship with the retail service quality in cell phone
supermarkets.
2.4 Measurement of the level of retail service quality
The RSQS model has been reliable and valid for measuring the retail service quality in
many countries. Mehta et al. (2000) claims that the RSQS model is more applicable than
other models to measure the retail service quality in hypermarkets or cell phone
supermarkets.
In the research, the RSQS is used to measure the level of retail service quality of cell phone
supermarkets offering mix of goods and services. The RSQS model has five dimensions of
retail service quality, six sub-dimensions and 28 items. The five dimensions of retail
service quality are physical aspects, reliability, personal interaction, problem solving and
policy and the six sub-dimensions are appearance and convenience, promises, doing it
right; inspiring confidence and courteousness/helpfulness. The 28 items of the RSQS
model are indicated in appendix 4. Among these items, 17 items have been adopted from
the SERVQUAL model while 11 items have been developed by Dabholkar et al. (1996).
The RSQS model measures the retail service quality through the 28 items with a 5-point

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