Service Quality-Customer Satisfaction Liaison in a Typical Retail Store Environment: an Empirical Investigation

India has recently witnessed big established MNC brands & big Indian Corporate like Reliance, Bharati, Future Group, Aditya Birla Group, Godrej venturing into retail business. The BMI India Retail Report for the first-quarter of 2011 forecasts that total retail sales will grow from US$ 392.63 billion in 2011 to US$ 674.37 billion by 2014. Strong underlying economic growth, population expansion, increasing wealth of individuals and the rapid construction of organised retail infrastructure are key factors behind the forecast growth. With the expanding middle and upper class consumer base, there will also be opportunities in Organised Retail Sector of India's tier II and III cities. The performance of organized retail primarily depends upon service delivery&its quality. In all service firms, customers' perceived service quality is taken as an important element of business success. The primary purpose of this paper was to examine the impact of service quality on satisfaction of customers of organised retail. The study shows that service quality has a significant impact on organised retail customers' satisfaction. The paper adds to the existing service quality-customer satisfaction liaison knowledge through RSQS (Retail Service Quality Scale) which can help a retailer to deliver a better value to the customer.