Impact of customer loyalty and service operations on customer behaviour and firm performance: empirical evidence from UK retail sector

Ramanathan, U ORCID: https://orcid.org/0000-0002-7473-4643, Subramanian, N, Wantao, Y and Vijaygopal, R, 2017. Impact of customer loyalty and service operations on customer behaviour and firm performance: empirical evidence from UK retail sector. Production Planning & Control, 28 (6-8), pp. 478-488. ISSN 0953-7287

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Abstract

Retail networks are striving to achieve competitive advantage by increasing value through loyalty and efficiency with a focus on service operations. As sales promotions have become an integral part of the retail supply chain planning, customer behavioural aspects based on loyalty and service operations have been challenged greatly. Subsequently, management capabilities, such as planning and timely replenishment, have become complicated tasks for many retail store managers. This study develops a model integrating retail network value and efficiencies with customer behaviour and performance. We validate the model using survey data from prominent UK retail store customers. Our data analysis shows that both loyalty and service operation attributes have positive significant impact on customer behaviour while the service operation mediates the relationship between loyalty and customer behaviour. This result gives a new outlook to build managerial capability based on customer loyalty and service operations. Our results specifically show that the service operation attributes will indirectly influence the customers’ buying behaviour even in the presence of loyalty attribute such as promotion schemes. This result sends a strong signal to retail supply chain managers to offer customized promotions considering local community rather than having uniform sales promotion nationwide.

Item Type:	Journal article
Publication Title:	Production Planning & Control
Creators:	Ramanathan, U., Subramanian, N., Wantao, Y. and Vijaygopal, R.
Publisher:	Taylor & Francis
Date:	2017
Volume:	28
Number:	6-8
ISSN:	0953-7287
Identifiers:	Number Type 10.1080/09537287.2017.1309707 DOI
Divisions:	Schools > Nottingham Business School
Record created by:	Jill Tomkinson
Date Added:	11 Oct 2016 14:30
Last Modified:	16 May 2018 03:00
Related URLs:	http://www.tandfonline.com/loi/tppc20
URI:	https://irep.ntu.ac.uk/id/eprint/28819

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