Effect of Duty Free Shop's Service Quality on Relationship Quality and Loyalty

Li,, L. , Yoo,, K. , & Park,, C. (2017). Effect of Duty Free Shop's Service Quality on Relationship Quality and Loyalty. The Journal of Distribution Science, 15(4), 41-57, https://doi.org/https://doi.org/10.15722/jds.15.4.201704.41

copy

Downloaded
Viewed

PDF Download

Abstract

Purpose - With the growth of the duty free shop field and an increase in the executive interest in it, it becomes necessary to examine if PBZ (1988) SERVQUAL could be applied to duty free shop service reflecting on this increased interest and the importance of marketing strategy alternative managing multinational customers. Therefore, the present research focused on the comparison of Korean and Chinese consumers. We examined how service quality would affect relationship quality and customer loyalty. Research design, data, and methodology - Surveys were distributed to 235 Korean and 220 Chinese consumers who have visited a Korean duty free shop. We analyzed frequency analysis, mean difference analysis, and reliability analysis, exploratory factor analysis, confirmatory factor analysis, structural equation model analysis, and multi-group analysis. Results - First, perceived tangibles, responsiveness, empathy, assurance, price benefits, product diversity, and IT convenience of duty free shop service all appeared to be positive effect on customer satisfaction; at the same time, only tangibles, responsiveness, empathy, assurance, and price benefits positively affected customer trust. Secondly, customer satisfaction and trust that are the components of the relationship quality appeared to be positive effect on customer loyalty. Thirdly, customers' satisfaction was found to play a full mediating role effect among all of the service quality factors with customer loyalty; however, customer trust was found to have the mediating effects only with tangibles, empathy, assurance, and price benefits. Fourthly, we found a difference between how service quality influences relationship quality and how service quality influences customer loyalty as a function of different nationality. As a result, it appeared that price benefits and IT convenience affected customer satisfaction more among Koreans than among Chinese. Finally, it appeared that customer satisfaction and trust affected customer loyalty more among Chinese than among Koreans. Conclusions - The results of this study contribute to the theoretical knowledge, but also provide strategic alternatives to enhance differentiation, international competence of enterprises led by duty free shop and service quality improvement and customer loyalty of enterprises are drawn as a foundation for constructing international customer relationship in future global era.

keywords: Duty Free Shop, Service Quality, Relationship Quality, Customer Loyalty

Reference

Akbaba, A. (2006). Measuring service quality in the hotel industry: A study in a business hotel in Turkey. International Journal of Hospitality Management, 25(2), 170-192.

Al-Alak, B. A. (2014). Impact of marketing activities on relationship quality in the Malaysian banking sector. Journal of Retailing and consumer Services, 21(3), 347-356.

Bae, B. R. (2011). Structural Equation Modeling with Amos 19-Principles and Practice. Seoul: Cheong-Ram Books.

Brady, M. K., & Cronin Jr, J. J. (2001). Some new thoughts on conceptualizing perceived service quality: A Hierarchical Approach. Journal of Marketing, 65(3), 34-49.

Buttle, F. (1996). SERVQUAL: review, critique, research agenda. European Journal of Marketing, 30(1), 8-32.

Carman, J. M. (1990). Consumer Perceptions Of Service Quality: An assessment of the SERVQUAL dimensions. Journal of Retailing, 66(1), 33-55.

Chaudhuri, A., & Holbrook, M. B. (2001). The chain of effects from brand trust and brand affect to brand performance: The role of brand loyalty. Journal of Marketing, 65(2), 81-93.

Chi Cui, C., Lewis, B. R., & Park, W. (2003). Service quality measurement in the banking sector in South Korea. International Journal of Bank Marketing, 21(4), 191-201.

Chiou, J. S., & Droge, C. (2006). Service quality, trust, specific asset Investment, and expertise: direct and indirect effects in a satisfaction-loyalty framework. Journal of the Academy of Marketing Science, 34(4), 613-627.

10.

Choi, C. J., & Myagmar, D. (2015). Role of relational quality in relationships between perceived services quality and loyalty in department stores of Mongolia. Journal of International Trade &Commerce, 11(6), 503-521.

11.

Choi, S. A., & Park, J. W. (2015). Investigating the effect of online service quality of internet duty-free shops on trust and behavioral intention. Journal of Airline and Airport Management, 5(2), 101-115.

12.

Chung, J. W. (2012). A study on the domestics and international travelers’ use of city-based duty-free shops and its features. Korea trade review, 37(4), 73-95.

13.

Chung, J. W. (2016). A study on problems of duty-free shop regulations and institutional development plan. The Journal of Korea Research Society for Customs, 17(2), 49-70.

14.

Churchill Jr., G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64-73.

15.

Clark, M. C., & Payne, R. L. (1997). The nature and structure of workers' trust in management. Journal of Organizational Behavior, 18(3), 205-224.

16.

Crosby, L. A., Evans, K. R., & Cowles, D. (1990). Relationship quality in services selling: An interpersonal influence perspective. Journal of Marketing, 54(30), 68-81.

17.

Dabholkar, P. A., Thorpe, D. I., & Rentz, J. O. (1996). A measure of service quality for retail stores: scale development and validation. Journal of the Academy of Marketing Science, 24(1), 3-16.

18.

Dorsch, M. J., Swanson, S. R., & Kelley, S. W. (1998). The role of relationship quality in the stratification of vendors as perceived by customers. Journal of the Academy of Marketing Science, 26(2), 128-142.

19.

Durvasula, S., Lysonski, S., & Mehta, S. C. (1999). Testing the SERVQUAL scale in the business-tobusiness sector: The case of ocean freight shipping service. Journal of Services Marketing, 13(2), 132-150.

20.

Eisingerich, A. B., & Bell, S. J. (2008). Perceived service quality and customer trust: Does enhancing customers’ service knowledge matter. Journal of Service Research, 10(3), 256-268.

21.

Fang, Y., Qureshi, I., Sun, H., McCole, P., Ramsey, E., & Lim, K. H. (2014). Trust, satisfaction, and online repurchase Intention: The moderating role of perceived effectiveness of e-commerce institutional mechanisms. MIS Quarterly, 38(2), 407-427.

22.

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(1), 39-50.

23.

Fu, W. L., Kim, Y. T., & Shin, M. K. (2016). Effects of images of city-base duty-free shops on shopping flow and duty-free shop satisfaction: Focused on Chinese tourists. Journal of Tourism & Leisure Research, 28(8), 45-64.

24.

Gounaris, S. (2005). Measuring Service Quality in b2b Services: An evaluation of the SERVQUAL scale vis-à-vis the INDSERV scale. Journal of Services Marketing, 19(6), 421-435.

25.

Han, S. L. (2004). Effects of restaurant service quality on customer retention and word-of mouth. Journal of Marketing Management Research, 9(1), 29-46.

26.

Headley, D. E., & Miller, S. J. (1993). Measuring service quality and its relationship to future consumer behavior. Journal of Health Care Marketing, 13(4), 32-41.

27.

Hennig-Thurau, T. (2000). Relationship marketing: Gaining competitive advantage through customer satisfaction and customer retention. Springer Science &Business Media.

28.

Hosmer, L. T. (1995). Trust: The connecting link between organizational theory and philosophical ethics. Academy of Management Review, 20(2), 379-403.

29.

Hwang, Y. C., & Kim, J. H. (2007). The Impact of service quality context on service quality and business performance in the retailing industry. Journal of Marketing Management Research, 12(2), 77-103.

30.

Jang, H. Y., & Chung, K. H. (2007). The determinants of customer satisfaction and trust affecting the customer loyalty in retail banking service. Korean Management Review, 36(2), 415-441.

31.

Jang, H. Y. (2008). The effects of service quality on relationship quality involving satisfaction and trust:focused on the moderating effects of switching cost on customer loyalty. Journal of Korea Service Management Society, 9(2), 229-254.

32.

Ji, S. G. (2006). The effects of justice on relationship quality and performance in industrial markets. Journal of Distribution Research, 11(3), 79-101.

33.

Jung, J. W., Cho, S. Y., & Park, M. H. (2010). A study of the influence of situational factors, emotional factors on impulsive buying in duty-free shops. Family and Environment Research, 48(8), 99-111.

34.

Khuong, M. N. (2014). The factors affecting vietnam airlines service quality and passenger satisfaction:A mediation analysis of service quality. International Journal of Innovation, Management and Technology, 5(5), 327-333.

35.

Kim, C. J. (2014). A study of effects of product quality, social enterprise, service quality elements on marketing performance. Journal of Distribution and Management Research, 17(3), 61-75.

36.

Kim, G. R., & Yhang, W. J. (2008). The effect of physical characteristics and selective attributes of duty free shops in Busan on the customer satisfaction. Journal of Tourism & Leisure Research, 20(4), 87-102.

37.

Kim, G. C. (2013). A Study on the Effects of Super-Supermarket Service Quality on Satisfaction in Store Selection. Journal of Industrial Distribution &Business, 4(2), 41-49.

38.

Kim, J. H., & Lee, Y. H. (2004). The effects of perceived hospital service quality on the patients' satisfaction and consequency behavior. Journal of Marketing Management Research, 9(1), 1-28.

39.

Kim, K. H., Jeun, S. T., & Lee, H. J. (2010). A study on the effects of service quality on repurchase intention on the internet shopping mall. Journal of Korea E-Commerce Research Academy, 11(4), 3-28.

40.

Kim, S. W. (2007). The structural relationship among healthcare service quality, customer satisfaction, trust and customer loyalty. Journal of Consumption Culture, 10(2), 109-130.

41.

Kim, Y., & Hwang, B. J. (2003). A study on the effects that the quality measurement of the department stores and demographic variables have on the customer satisfaction. Journal of Industrial Economics and Business, 16(2), 123-138.

42.

Ko, M. Y., & Oh, S. H. (2012). Duty free shopping motivation and satisfaction of Chinese tourism. Journal of Tourism Sciences, 36(1), 201-218.

43.

Ko, H. S., & Oh, J. K. (2001). A study on the choice attributes for duty free shops among foreign tourists in Korea. Korea Journal of Tourism Management, 16(2), 113-130.

44.

Ladhari, R., Ladhari, I., & Morales, M. (2011). Bank service quality: comparing Canadian and Tunisian customer perceptions. International Journal of Bank Marketing, 29(3), 224-246.

45.

Ladhari, R., Pons, F., Bressolles, G., & Zins, M. (2011). Culture and personal values: How they influence perceived service quality. Journal of Business Research, 64(9), 951-957.

46.

Lam, S. S. (1997). SERVQUAL: A tool for measuring patients' opinions of hospital service quality in Hong Kong. Total Quality Management, 8(4), 145-152.

47.

Laroche, M., Teng, L., Michon, R., & Chebat, J. C. (2005). Incorporating service quality into consumer mall shopping decision making: a comparison between English and French Canadian consumers. Journal of Services Marketing, 19(3), 157-163.

48.

Lee, I. G., Kim, J. B., & Lee, M. G. (2000). A causal model of perceived service quality, consumer attitude, and intention to repatronize. Korean Marketing Association, 2(3), 44-63.

49.

Lee, J. H., Lee, Y. K., & Han, K. C. (2010). The effect of franchisor's on-going support services on franchisee's relationship quality and business performance in the food service industry. Journal of Distribution Research, 15(3), 1-28.

50.

Lee, K. M., & Park, K. K. (2006). Values and job attitudes in the Asian context: A comparative study of Korean and Chinese workers. Korean Journal of Business Administration, 19(4), 1281-1306.

51.

Lee, T. M., La, S. A., & Song, S. Y. (2009). MOBISQUAL:Dimensionalizing and measuring mobile internet service quality. Journal of Korean Marketing Association, 24(1), 145-179.

52.

Lee, W. I., & Jang, K. H. (2014). The effects of medical service quality and relationship quality on customer loyalty: small and medium hospitals. Journal of Distribution and Management Research, 17(1), 35-51.

53.

Lee, Y. H. (2014). The effects of educational service quality on relationship quality and customer loyalty and the moderating effects of school-grade. Korean Journal of Business Administration, 27(2), 263-284.

54.

Li, Y. N., & Shin, G. C. (2016). The influence of having been visited to Korea duty-free stores Chinese consumers' perceived relational benefits and relationship quality on customer loyalty: The moderating effect of switching barriers. Journal of Distribution Research, 21(1), 55-80.

55.

Lyu, M. S. (2013). A qualitative study on the store attributes of duty free stores in Korea. Journal of the Korean Society of Fashion Design, 13(3), 19-37.

56.

Min, G. O., & Loh, J. H. (2016). Impact of Educational Service Information Distribution on Students’Satisfaction and Achievement Rate. The International Journal of Industrial Distribution &Business, 7(4), 17-31.

57.

Murray, K. B., & Schlacter, J. L. (1990). The impact of services versus goods on consumers’ assessment of perceived risk and variability. Journal of the Academy of Marketing science, 18(1), 51-65.

58.

Nam, I. W., & Kwak, W. I. (2009). A study on the comparison of the service quality between department stores and large discount stores. Journal of Marketing Management Research, 14(1), 61-79.

59.

Nam, S. M. (2010). The Influence of Eco-marketing and commercial marketing of hotel company on customer's evaluation of hotel service quality and loyalty. Journal of Marketing Management Research, 15(4), 85-102.

60.

Ohk, K. Y. (2015). A study on global consumption of "The 80-90's generation. The Journal of Chinese Cultural Research, 27(1), 91-112.

61.

Oliver, R. L. (1999). Whence consumer loyalty?. Journal of Marketing, 34(63), 33-44.

62.

Ozdemir, V. E., & Hewett, K. (2010). The effect of collectivism on the importance of relationship quality and service quality for behavioral intentions:A cross-national and cross-contextual analysis. Journal of International Marketing, 18(1), 41-62.

63.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41-50.

64.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40

65.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1994). Reassessment of expectations as a comparison standard in measuring service quality: Implications for further research. Journal of Marketing, 58(1), 111-124.

66.

Parck, C. E. (2014). A study-on effects of distribution changes on Internet of things. Journal of Korea Logistics Review, 24(3), 151-174.

67.

Park, G. J., & Chung, K. H. (2014). A study on mobile service trust to the impact of retailer and PL product purchase intents. The Journal of Internet Electronic Commerce Research, 14(3), 83-104.

68.

Park, J. W., Choi, Y. J., & Moon, W. C. (2013)Investigating the effects of sales promotions on customer behavioral intentions at duty-free shops:An Incheon international airport case study. Journal of Airline and Airport Management, 3(1), 18-30.

69.

Park, J. H., & Lee, S. H. (2008). The effects of logistics service quality, relationship quality among customer loyalty in courier company. Journal of Korean Marketing Association, 23(4), 23-50.

70.

Qin, H., Prybutok, V. R., & Zhao, Q. (2010). Perceived service quality in fast-food restaurants: empirical evidence from China. International Journal of Quality & Reliability Management, 27(4), 424-437.

71.

Reimann, M., Lünemann, U. F., & Chase, R. B. (2008). Uncertainty avoidance as a moderator of the relationship between perceived service quality and customer satisfaction. Journal of Service Research, 11(1), 63-73.

72.

Shin, C. S., Hwang, G. S., Lee, H. W., & Cho, S. R. (2015). The Impact of Korean Franchise Coffee Shop Service Quality and Atmosphere on Customer Satisfaction and Loyalty. The East Asian Journal of Business Management, 5(4), 47-57.

73.

Shin, J. I., & Chung, K. H. (2013). The effect of supermarket service quality on customer satisfaction in China. Journal of Distribution and Management Research, 16(2), 5-17.

74.

Sohn, H. K., & Kim, J. S. (2007). Effects of choice attributes of duty free shops on satisfaction revisit intention and recommendation: The case of Japanese tourists. Journal of International Tourism Research, 4(1), 57-78.

75.

Sohn, Y. S., & Kim, C. B. (2016). Effects of the service quality and CSR activity on corporate image according to the bank size: Mediating roles of warmth and competence. The Academy of Customer Satisfaction Management, 18(1), 25-53.

76.

Sultan, F., & Simpson Jr., M. C. (2000). International service variants: Airline passenger expectations and perceptions of service quality. Journal of Services Marketing, 14(3), 188-216.

77.

Tsaur, S. H., Chang, T. Y., & Yen, C. H. (2002). The evaluation of airline service quality by fuzzy MCDM. Tourism management, 23(2), 107-115.

78.

Walsh, G., Hennig-Thurau, T., Sassenberg, K., & Bornemann, D. (2010). Does relationship quality matter in e-services? A comparison of online and offline retailing. Journal of Retailing and Consumer Services, 17(2), 130-142

79.

Whang, I. C., & Chang, W. J. (2007). The effects of medical service quality on the relationship quality and service loyalty: The moderating effects of switching barriers. Review of business & economics, 20(5). 1875-1902.

80.

World Bank (2016). World Bank National Account Data. Retrieved from http://data.worldbank.org/indicator/NV.SRV.TETC.ZS

81.

Wulf, K. D., Odekerken-Schröder, G., & Iacobucci, D. (2001). Investments in consumer relationships: A cross-country and cross-industry exploration. Journal of Marketing, 65(4), 33-50.

82.

Yang, R. R., Kim, M. J., & You, H. S. (2015). The effect of perceived image of duty free shop on recommendation intention by Chinese tourists, focusing on the 80-90's generation. Northeast Asia Tourism Research, 11(3), 35-56.

83.

Yi, Y. J., & La, S. A. (2002). The relationship of customer satisfaction, adjusted expectation and repurchase intention: The moderating role of customer loyalty. Journal of Consumer Studies, 13(3), 51-78.

84.

Yi, Y. J., & Lee, C. L. (2007). The role of customer loyalty variables in the effects of customer satisfaction on firm's performance. Journal of Korean Marketing Association, 22(1), 81-102.

85.

Yi, Y. J., & Lee, C. L. (2014). A critical review of service quality research in recent 10 years(2004~2013). Journal of Marketing Management Research, 19(2), 1-43.

86.

Yim, J. W., & Song, S. W. (2007). The case study of Silla duty-free in Korea. Journal of Management Case Research, 41(0), 151-170.

87.

Yoo, E. Y., & Ko, J. Y. (2008). Effect of service quality on trust & premium price in 5-Star hotel restaurants in Seoul. Journal of Hospitality and Tourism Studies, 10(3), 130-142.

88.

Yoon, K. H., & Kwon, M. Y. (2008). A study of relationship between service quality factors and customer satisfaction, corporate image in a department store. The Business Education Journal, 14(2), 107-128.

89.

Yun, J. K., & Choi, H. K. (2009). The impacts of service quality of discount store on customer satisfaction and voluntary behavioral intention: Focused on moderating effect of lifestyle, Journal of Marketing Management Research, 14(3), 49-80.

90.

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31-46.

91.

Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (1985). Problems and strategies in services marketing. Journal of Marketing, 49(2), 33-46.

바로가기메뉴

Article Contents

Vol.15 No.4

Effect of Duty Free Shop's Service Quality on Relationship Quality and Loyalty

Abstract

Reference

The Journal of Distribution Science