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The Impact of a Customer Service Intervention and Facility Design on Firm Performance

Author

Listed:
  • Joanne M. Sulek
  • Mary R. Lind

    (School of Business and Economics, NC A&T State University, E. Market Street, Greensboro, North Carolina 27411)

  • Ann S. Marucheck

    (University of North Carolina at Chapel Hill, Kenan-Flagler School of Business, Chapel Hill, North Carolina 27599-3490)

Abstract

The purpose of this research was to investigate the impact of a customer service intervention and store design on store performance within a regional food retailing chain. A longitudinal study examines the organization's implementation of a customer service intervention which utilized new service standards and customer feedback mechanisms. Moreover, the chain provided a natural experiment, since the forty-six stores in this chain represented three levels of facility design ranging from the traditional supermarket to the extended "store of the future" format. A theoretical model relating the customer service intervention, variations in store design, and customer satisfaction to sales performance was developed. Using both operational performance data from each of the stores and 1,537 responses from customer satisfaction surveys, a LISREL model was used to test the predictive fit of the model. The results indicate that both the store design and the customer service intervention had a significant, positive impact on customer satisfaction which, in turn, significantly affected sales performance (sales per labor hour). In addition, the customer service intervention had a direct effect on sales performance, although there was no support for a direct relationship between store design and sales performance. This research provides a theoretical basis in helping management understand how to leverage customer service for improved sales performance.

Suggested Citation

  • Joanne M. Sulek & Mary R. Lind & Ann S. Marucheck, 1995. "The Impact of a Customer Service Intervention and Facility Design on Firm Performance," Management Science, INFORMS, vol. 41(11), pages 1763-1773, November.
    • Handle: RePEc:inm:ormnsc:v:41:y:1995:i:11:p:1763-1773
    DOI: 10.1287/mnsc.41.11.1763
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    Cited by:

    1. Kim, Duk Gyoo & Yoon, Yeochang, 2019. "A theory of FAQs: Public announcements with rational ignorance," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 560-574.
    2. Li, Ling & Benton, W. C., 2003. "Hospital capacity management decisions: Emphasis on cost control and quality enhancement," European Journal of Operational Research, Elsevier, vol. 146(3), pages 596-614, May.
    3. Zeynep Ton, 2008. "The Effect of Labor on Profitability: The Role of Quality," Harvard Business School Working Papers 09-040, Harvard Business School, revised Jul 2009.
    4. Angelos Pantouvakis & Anastasia Gerou, 2022. "The Theoretical and Practical Evolution of Customer Journey and Its Significance in Services Sustainability," Sustainability, MDPI, vol. 14(15), pages 1-16, August.
    5. Kwon, Ryeok-Hwan & Kim, Kwang-Jae & Kim, Ki-Hun & Hong, Yoo-Suk & Kim, Bohyun, 2015. "Evaluating servicescape designs using a VR-based laboratory experiment: A case of a Duty-free Shop," Journal of Retailing and Consumer Services, Elsevier, vol. 26(C), pages 32-40.
    6. Bonfrer, André & Chintagunta, Pradeep & Dhar, Sanjay, 2022. "Retail store formats, competition and shopper behavior: A Systematic review," Journal of Retailing, Elsevier, vol. 98(1), pages 71-91.
    7. Álvarez, María José & Arias-Aranda, Daniel, 1998. "An essay on the dimension and components of customisation in service operations management," DEE - Working Papers. Business Economics. WB 6544, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    8. Olga Perdikaki & Saravanan Kesavan & Jayashankar M. Swaminathan, 2012. "Effect of Traffic on Sales and Conversion Rates of Retail Stores," Manufacturing & Service Operations Management, INFORMS, vol. 14(1), pages 145-162, January.

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