Drivers of perceived service quality in selected informal grocery retail stores in Gauteng, South Africa

Abstract

This study focuses on the service delivery of small grocery retail stores operating in the informal sector in Gauteng. The study specifically aimed to determine whether a sample of customers is in fact satisfied with the service quality delivery by these types of informal stores. Furthermore, this study aimed to identify service quality dimensions that help describe perceived levels of service quality, as well as the intention to shop at the informal retailers in future. Issues regarding customer care and service quality in the context of small firms are also investigated. A critical challenge to the survival and future growth of these types of service delivery institutions that operate among the underprivileged is to understand the needs of their customers and ensure that they meet these. While the focal point of the study was the informal grocery retail sector,
the study did not focus on survivalist businesses. In fact, the outlets
covered could be considered established and mature businesses operating within the informal part of the modern or first-world economy. It was found that ‘empathy’, ‘tangibility’, ‘reliability’ and ‘assurance’ were considered to be the main drivers of perceived levels of service quality among shoppers. Practical implications for informal grocery retailers, limitations and suggestions for future studies are articulated.

Key words: service quality, retail, informal sector