Determinants of service quality and impact of service quality and consumer characteristics on channel selection

Abstract

Purpose – The purpose of this paper is to seek the determinants of service quality and evaluate the impact of service quality and consumers’ characteristics on channel selection in the context of beverage industry in Bangladesh. Design/methodology/approach – Data were collected using convenience sampling method. Initially exploratory factor analysis was performed to extract the key dimensions of service quality and then structural equation modeling was employed to verify the causal relationships between the dimensions of service quality and service quality itself. χ2 test was used to determine whether any association exists between service quality or demographic variables and choice of channel types. Cramer’s V was performed to measure the strength of association. One-way ANOVA was carried out to identify significant impact of demographic variables on perception of service quality. Findings – The research findings indicated that personal interaction, appearance, reliability, policy, and problem solving are the key determinants of service quality in terms of beverage industry in Bangladesh. It is observed that customers preferring factors like personal interaction and problem solving intend to purchase beverage items from super shop. Customers who are deemed socioeconomically high taking profession and monthly income into account prefer shopping at super shop. Customers who are female or married with no kid or service holders showed better satisfaction with service quality. Research limitations/implications – Due to money and time constraints the study could not cover up the whole country. Conclusions and predictions to be applied to consumers in general may not be appropriate entirely since specific age group was deemed, given that the subject was beverage products. Practical implications – The model proposed in this study will help managers and suppliers understand how consumers assess the quality of services. In order to strengthen brand and create brand loyalty, marketing planners, managers, and suppliers must be aware of the dimensions of service quality, and consumers’ characteristics. Selecting an optimal sales channel is imperative for suppliers in order to make their products reach to target consumers. Originality/value – Service quality plays crucial role in ameliorating customer satisfaction and creating competitive advantage whereas sales channels have impact on sustaining the long-term profitability of the company. This paper has contributed significantly to these issues and sought consumers’ characteristics and preference as well.

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