Effect of Service Quality on Service Value and Customer Retention for Clothing Store Brands in China

Abstract

An increasing number of new Chinese clothing store brands are selling and offering similar products and services and consequently clothing store brand providers must compete to survive in this industry. They need to focus on customers’ special needs and preferences to maintain and retain a long-term relationship. The objective of this study is thus to examine the relationship between service quality and customer retention for clothing store brands in China, and the mediated effect of service value in the relationship between service quality and customer retention for clothing store brands in China. A quantitative research for data collection was implemented. As many as 385 questionnaires were collected by the professor, PhD students, MSc students and BSc students of different nationalities in China. The data was analysed using SmartPLS and SPSS software. Customer perception of the quality of a service product in all sizes has a beneficial effect on customer retention. Service value affects customer retention positively. Practical implications for the target market of the clothing sector should be focused on young individuals aged 36 to 45 years, holding a Master’s degree and earn more than €1,000/month. Findings indicated significant and direct relationships between service quality, service value and customer retention. It was also found that service value has a full mediated effect. This study will be of interest to the clothing store brands in understanding how service quality is essential for maintaining a long-term relationship with customers.

Keywords

• service quality
• service value
• customer retention
• clothing store brands
• china