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

Ramanathan, Usha; Subramanian, Nachiappan; Yu, Wantao; Vijaygopal, Rohini

Authors

Usha Ramanathan usha.ramanathan@ntu.ac.uk

Nachiappan Subramanian nachiappan.subramanian@nottingham.edu.cn

Wantao Yu

Rohini Vijaygopal



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 U.K. 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 customised promotions considering local community rather than having uniform sales promotion nationwide.

Journal Article Type Article
Journal Production Planning & Control
Print ISSN 0953-7287
Electronic ISSN 1366-5871
Publisher Taylor & Francis Open
Peer Reviewed Peer Reviewed
Volume 28
Issue 6-8
APA6 Citation Ramanathan, U., Subramanian, N., Yu, W., & Vijaygopal, R. (in press). Impact of customer loyalty and service operations on customer behaviour and firm performance: empirical evidence from UK retail sector. Production Planning and Control, 28(6-8), https://doi.org/10.1080/09537287.2017.1309707
DOI https://doi.org/10.1080/09537287.2017.1309707
Keywords Retail network performance; service operations; customer loyalty; customer behaviour; management capabilities
Publisher URL http://www.tandfonline.com/doi/full/10.1080/09537287.2017.1309707
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf
Additional Information This is an Accepted Manuscript of an article published by Taylor & Francis in Production Planning and Control on 16 May 2017, available online: http://www.tandfonline..../09537287.2017.1309707.

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





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