Evaluation of retail service quality using analytic hierarchy process

Purpose – The deployment of analytic hierarchy process (AHP) to help the retail industry to recognize which retail service quality (RSQ) dimensions require attention to create a sustainable competitive advantage. The purpose of this paper is to use a comparative evaluation model to compare retail stores (supermarkets) across several RSQ dimensions, validated and tested RSQ model in the context of Indian supermarkets and explore the existence of RSQ gap by studying the difference between customers’ perception and expectations. Design/methodology/approach – This study deploys AHP in which the decision problem is broken down into hierarchy; thus customer preference involves the structuring of a hierarchy in terms of the overall objective, the selection criteria and the decision alternatives. AHP technique allows pairwise comparisons to be made among the alternatives with respect to the service dimensions. Findings – This study validated the formal RSQ scale developed by Dabholkar et al. , (1996) by a modification that led to making it more suitable to the Indian context. Research limitations/implications – This research does not provide guidance on different course of action to be taken. Though this study identifies which service dimensions require improvement, it does not provide guidance on an appropriate action plan to address deficiencies. Practical implications – Prospective and existing retailers can use this instrument effectively to measure the quality of their services as perceived by customers in comparison to their competition. This work will not only help the supermarkets to improve their competitive positioning in the marketplace but will help them to identify areas of services needing improvement on priority basis. Originality/value – Application of AHP to determine the best customer preference is the first ever done in RSQ studies. It does open up another dimension for further studies.