Relationship Quality and Customer Demographics in Indian Retail

Abstract

Service industries are becoming highly contested markets in India. This has shifted the focus of players towards quality and relationship quality. Building lasting customer relationships is the only way to sustain in the long run. Accordingly, quality in different forms needs to be articulated and deconstructed. The complexity of services makes it difficult for firms to satisfy and retain customers. Relationship quality is driven by trust, commitment, and satisfaction. The chapter sought to validate the retail relationship quality scale in Indian context. The components defining relationship quality were investigated to determine their relative importance across different customer groups. It was found that satisfaction with the employees is the most valued aspect across select demographic groups. This reinforces the role of employees in producing outcomes that are likely to bind customers with the service firm. Operationally, it implies that employee-customer interaction is important in managing retail business.