Examining the Impact of Service Quality Dimensions on Customer Loyalty towards Hypermarket Retailing: A Case Study of Malaysia

Hypermarket sector has created a unique segment for retailing in Malaysia. Customers now seek alternatives for their purchases because service quality has effect on company's performance, customer repurchase intention and loyalty. Therefore, the purpose of this study is to examine service quality dimensions on customer loyalty in hypermarket retailing using Malaysia as a case study. For this purpose, data were collected from the consumer in selected locations in Malaysia via self-administered questionnaire. Convenience sampling method was used to survey 160 participants. Partial Least Squares (PLS) using SmartPLS v.3.0 software was used to analyze the hypothesized paths. Findings show that all service quality dimensions had significant impact on customer loyalty. Reliability was found to show the highest impact on customer loyalty followed by responsiveness. The study suggested that policymakers should work together to implement new innovative ideas for hypermarket retail service in Malaysia.