In the era of shorter product life
cycles, faster imitation, and
rapid commoditization, creating unique customer experience
proves to be a real value creator and differentiator for the customers
and the store. Take a cursory glance at the retail outlets around us today.
All seem alike from both inside and outside. Swanky shopping
complexes, sophisticated interiors, glitzy ambience, mellifluous background
music, glamorous lighting, proliferation of brands and offers, form the
common features of many outlets today. One can hardly make out any
difference between two stores, which are alike on these platforms. Then, what
could be the real differentiator? It is the people inside the store and the
quality of customer service that ultimately keeps customers coming to a
shop again and again. When customers are treated the way they expect
them to be treated (as they are emotional beings), then the probability of
their visiting and patronizing the store is higher. They also become the
store's advocates who market the store to others through word-of-mouth.
Since quality customer service plays a pivotal role in influencing
shopping behavior, retailers should know and understand the tools that
are available for measuring service quality in the context of retailing. This article explores some of the tools for measuring retail
service quality, and the means for diagnosing the validity and relevancy of
these tools in the context of Indian retail. The article also throws light on
the five dimensions (related to the five Ps of retail service) for measuring
retail service quality.
India is the fifth largest retail destination in the world and is expected
to grow to $573 bn by 2012-13. According to A T Kearney's eighth
Global Retail Development Index (GRDI), India is one of the most
attractive emerging markets for investments in the retail sector. The Indian
retail sector accounts for 10% of country's GDP and 8% of employment. A
report titled "Booming Retail Sector in India" published in 2008 by
market research and analytics company, RNCOS, had predicted that
organized retailing in India would reach $50 bn by 2011. However,
organized retailing is still in a nascent stage in India compared to that in many
other countries. It accounts for only 5% of the total retail market in
India, though it is expected to grow to 6-7% by
2012-13. |