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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

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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
Journal or Publication Title: International Journal of Service Industry Management
Publisher: Emerald Group Publishing Ltd.
ISSN: 0956-4233
Official Date: 2000
Dates:
DateEvent
2000UNSPECIFIED
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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