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Customers view reliability as a mixture of keeping promises. The reliability dimension comprises of promises and doing it right sub-dimensions (Dabholkar et al., 1996). consistent with a survey by Pricewaterhouse Coopers, Asian consumers demand superb quality, especially the provision of merchandise in stores way more than the Western customers.

Service is alleged to be distinguished from goods because of its Intangibility. The tangibility aspects of a service have a major effect on perceived service quality. Physical aspects of retailer include equipment and fixtures, physical facilities, convenience of physical facilities and layouts. The importance of physical environment in a retail service setting is because to its ability to influence consumer attitudes, behaviour intention and satisfaction and loyalty. As service consumption process conducted within a physical environment, the physical environment will have a huge impact on customers perception of service experiences. Bitner (1992) also noted that physical environment is commonly used as cues of a firms competences and quality by consumers before buying. Specifically, proper layout in a retail store will reduce shoppers search time, colour combine with lighting were suggested to affect consumers cognitive representation and affective reaction, and a light and pleasing scent affects shoppers perceptions of a shopping environment within which the latter will have a major effect on shoppers mood.

The interaction between store personnel and store customers are important as customers are more loyal to a store if the shop is seen as warm, friendly, and impulsive. Odekerken-Schröder et al. (2001) in their research emphasized the importance of inter-personal relationship which refers to the opportunity for customers to affiliate with other individuals during the retail encounter. Personal Interaction inspiring confidence of consumers includes error-free sales transactions and record, the power to answer customers questions, the behavior of employees during this store instils confidence in customers, and customers feel safe in their transactions with this store.

Problem Solving is that the problems with handling not only products returned but also exchanges and complaints. The matter solving dimension of shops includes: willingness of shops to handle returns and exchanges, sincere interest in solving the matter and handling customer complaints directly and immediately.

The policy captures aspects of services quality that are directly influenced by store policy. As an example, when customers evaluate a store on the premise of convenient hours, it’s viewed as whether the stores policy is attentive to customers needs. The upper customers appreciate policy, the higher the evaluation of retail service quality is. Dabholkar et al. (1996) elaborated store policy to incorporate top quality merchandise, parking facilities, convenient operating hours, acceptance of major credit cards, and stores own credit card.

All the five RSQS dimensions significantly influence the Overall Service Quality of the Retail Sector. Here, we can conclude that the Retail service quality dimensions account for 65.8 percent of the variance in Overall Retail Service Quality and policy and reliability had achieved the strongest association with the overall perception of service quality. Policy features a small to medium effect on the Service Quality whereas Problem Solving and Personal Interaction has medium to high effect on the Customer Satisfaction. Reliability and Physical aspects has the utmost effect on the Customer Satisfaction. Reliability has more effect than Physical Aspects in the Customer Satisfaction. Overall service quality dimensions account for 86.9 percent of the variance in Overall Customer Satisfaction.

Satisfying customers is one of the important objectives of each business. Businesses recognize that keeping current customers is more profitable than having to win new ones to switch those lost. Management and marketing theorists underscore the importance of customer satisfaction for a businesss success (McColl-Kennedy & Schneider, 2000; Reichheld & Sasser, 1990). Accordingly, the prestigious Malcolm Baldrige National Quality Award recognizes the role of customer satisfaction as the central component of the award process (Dutka, 1993). Services and products are the two major orientations of business. Products also mentioned as goods, are the physical output of a business. These are tangible objects that exist in time and space. These are first created, then inventoried and sold. It is literally consumed after purchase (Sureshchander, Rajendran, & Kamalanabhan, 2001; Berry, 1980). The concept of customer satisfaction consists of several components from different sources (McColl-Kennedy & Schneider, 2006). Customer satisfaction starts with clear and operational definitions from both the customer as well as the organization. Understanding the motivations, expectations, and desires of both gives a foundation in a way to best serve the customer. it’s going to even provide information on making improvements within the nature of business.

This can be the centre of research into customer satisfaction (Naylor & Greco,2002). The importance of clearly defining the key concepts and elements of satisfaction provide a template by which information can be gathered about what is working and what is not working. This includes both the hard measures people who are more tangible and observable (i.e., number of complaints, average waits time, product returns, etc) and the soft measures those less tangible aspects (i.e., friendliness, helpfulness, politeness, etc) (Hayes, 1998). The bottom line is that so as to understand about customer satisfaction, one has to know what to search for (Mitchell, 1999). The firm has to seek this information from both within and without.

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