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Applying the service profit chain in a retail environment - challenging the "satisfaction mirror"
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Pritchard, Michael and Silvestro, Rhian (2000) Applying the service profit chain in a retail environment - challenging the "satisfaction mirror". International Journal of Service Industry Management, 11 (3). pp. 244-268. doi:10.1108/09564230510613997
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Official URL: http://dx.doi.org/10.1108/09564230510613997
Abstract
This paper reports the result of an exploratory study of the application of Heskett, Sasser and Schlesinger's service profit chain to a single organisation, one of the UKs leading grocery retailers. The results showed correlations between profit, customer loyalty, customer satisfaction, service value, internal service quality, output qualify and productivity; however there was no support for the claim that these ave driven by employee satisfaction and loyalty. In fact, to the contrary, there was a strong correlation between employee dissatisfaction and store profitability. This research raises questions about the robustness of a central premise of the service profit chain, which is that strong business performance is the result of a mirror-effect between employee and customer satisfaction. The paper considers the implications for management and calls for the development of a contingency based understanding of the drivers of business success.
| Item Type: | Journal Article | ||||
|---|---|---|---|---|---|
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management | ||||
| Divisions: | Faculty of Social Sciences > Warwick Business School > Operations Management Faculty of Social Sciences > Warwick Business School |
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| Journal or Publication Title: | International Journal of Service Industry Management | ||||
| Publisher: | Emerald Group Publishing Ltd. | ||||
| ISSN: | 0956-4233 | ||||
| Official Date: | 2000 | ||||
| Dates: |
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| Volume: | 11 | ||||
| Number: | 3 | ||||
| Number of Pages: | 25 | ||||
| Page Range: | pp. 244-268 | ||||
| DOI: | 10.1108/09564230510613997 | ||||
| Status: | Peer Reviewed | ||||
| Publication Status: | Published |
Data sourced from Thomson Reuters' Web of Knowledge
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