Skip to main content

Impact of customer loyalty and service operations on customer behaviour and firm performance: Empirical evidence from UK retail sector

Ramanathan, Usha, Subramanian, Nachiappan, Yu, Wantao, Vijaygopal, Rohini (2017) Impact of customer loyalty and service operations on customer behaviour and firm performance: Empirical evidence from UK retail sector. Production Planning and Control, 28 (6-8). pp. 478-488. ISSN 0953-7287. E-ISSN 1366-5871. (doi:10.1080/09537287.2017.1309707) (KAR id:58775)

PDF Author's Accepted Manuscript
Language: English
Download (603kB) Preview
[thumbnail of s1-ln23501876-418230180-1939656818Hwf1373068364IdV158952683523501876PDF_HI0001.pdf]
This file may not be suitable for users of assistive technology.
Request an accessible format
Official URL


Retail networks are striving to achieve competitive advantage by increasing value through loyalty and efficiency with a focus on service operations. As sales promotions have become an integral part of the retail supply chain planning, customer behavioural aspects based on loyalty and service operations have been challenged greatly. Subsequently, management capabilities, such as planning and timely replenishment, have become complicated tasks for many retail store managers. This study develops a model integrating retail network value and efficiencies with customer behaviour and performance. We validate the model using survey data from prominent U.K. retail store customers. Our data analysis shows that both loyalty and service operation attributes have positive significant impact on customer behaviour, while the service operation mediates the relationship between loyalty and customer behaviour. This result gives a new outlook to build managerial capability based on customer loyalty and service operations. Our results specifically show that the service operation attributes will indirectly influence the customers’ buying behaviour even in the presence of loyalty attribute such as promotion schemes. This result sends a strong signal to retail supply chain managers to offer customised promotions considering local community rather than having uniform sales promotion nationwide.

Item Type: Article
DOI/Identification number: 10.1080/09537287.2017.1309707
Uncontrolled keywords: Retail network performance, service operations, customer loyalty, customer behaviour, management capabilities
Subjects: H Social Sciences > HF Commerce > HF5351 Business
Divisions: Divisions > Kent Business School - Division > Kent Business School (do not use)
Depositing User: Wantao Yu
Date Deposited: 18 Nov 2016 11:32 UTC
Last Modified: 16 Feb 2021 13:39 UTC
Resource URI: (The current URI for this page, for reference purposes)
  • Depositors only (login required):


Downloads per month over past year