The link on service characteristics, customer satisfaction and competitive strategy among retail chain stores in Kuala Lumpur

The main purpose of this study was to examine the different on customer perception of service quality, servicescape, perceived value and customer satisfaction among the retail chain stores that pursuing a cost leadership strategy and differentiation strategy. The relationship between service quality, servicescape, perceived value and customer satisfaction among retail chain stores were also studied in this research. This study was conducted in Kuala Lumpur. The sample of this study consisted of 405 customers from Tesco, Giant, Mydin, Isetan, Sam's Groceria and Ben's Independent Grocer in Kuala Lumpur. Data were collected through questionnaire survey. Data were analyzed by using various statistical techniques such as reliability analysis, descriptive analysis, Independent Samples Test and Multiple Regression Analysis. The Independent Samples Test results showed that the customer perceptions of service quality and servicescape was lower, but higher in perceived value for the firms that pursuing a cost leadership strategy than differentiation strategy. However, the customer perceptions of satisfaction was consistent across both strategies. For the regression results, the study revealed that all the independent variables (i.e., service quality, servicescape, perceived value) were positively correlated with the dependent variable (i, e., customer satisfaction). This research provided relevant information regarding the competitive strategy towards the service characteristics and customers satisfaction. Thus, this research could contribute to theoretical and practical implication, it is very useful for the retail chain stores to enhance the business performance by improving the service characteristics and customer satisfaction which must be aligned with the business strategy.