Measuring Retail Service Quality: Evaluating Impact of BI on Customer Buying Behaviour in Food and Groceries Retail

Abstract

Retailers are placing the customers as their priority to improve customer interaction by implementing innovative business practices into their businesses. By focusing on the organised food retailing that has adopted business intelligence (BI) tools, this study evaluates the impact of BI on service quality to assess customer buying behaviour. Based on findings from focus group, literature survey and a validated service quality the study examined the service quality variables supported by BI on customer buying behaviour. The Data collected from customers of six organised food and groceries retailers at Hyderabad city was analysed using exploratory factor analysis, confirmatory factor analysis, and structural equation modelling. The results indicate that: 1). the proposed seven variables of service quality rather merged into four variables. 2). from the structural causal relationship analysis it is identified that the four factors have significant relationship, with the identified model showing good fit. 3). the structural causal relationship also suggests that all the latent variables are strongly correlated. 4). it is observed that the all items related to their respective latent factors indicate significant loading values. However, the proposed instrument and the seven variables of service quality need considerable attention in Indian context.

Keywords: Business Intelligence, Indian Food and Groceries Retail Stores, Retail Service Quality, Confirmatory Factor Analysis, Customer Satisfaction.