Promoting perceived service quality and organisational performance through customer retention strategies: the moderating role of ICT

Abstract

Purpose – The major objective of the study is to investigate the effect of selected customer retention strategies (fair pricing, online marketing and frequent communication) on perceived service quality and organisational performance within the retail sector in Zimbabwe. Also, the study sought to understand the moderating role of ICT on the effect of customer retention strategies on perceived service quality and organisational performance. Design/methodology/approach – A cross-sectional survey of 280 employees within Zimbabwe's retail sector was adopted and respondents were selected using simple random sampling method. A structured questionnaire with Likert type questions was used to gather data. Findings – The study findings indicate that the performance of organisations within the retail sector is influenced by superior service quality, selected customer retention strategies and also moderated by the use of ICT. Originality/value – The study contributes to the business management body of knowledge by assessing the effect of selected customer retention strategies (fair pricing, online marketing and frequent communication) on perceived service quality and organisational performance within the retail industry of an emerging economy. The study is also unique in that it used ICT to moderate the effect of selected customer retention strategies on perceived service quality and organisational performance.

Keywords

• Organizational performance
• Customer retention strategies
• Information and communication technology
• Retail sector
• Perceived service quality
• Zimbabwe