Service Quality Gaps and Customer Retention: An Empirical SERVQUAL-Based Study of East Asian Retail Chains

Abstract

This study investigates the relationship between service quality gaps and customer retention in East Asian retail chains. Employing the SERVQUAL model, this research examines how discrepancies between customer expectations and perceptions influence retention behaviors. Data were collected from 387 customers across major retail chains in China, Japan and South Korea through structured questionnaires. SPSS analysis, including correlation, multiple regression, and path analysis, was conducted to test the hypothesized relationships. Results indicate that tangibility and responsiveness dimensions have the strongest impact on customer retention, while empathy demonstrates a moderating effect on the relationship between reliability and retention intention. The findings suggest that East Asian retail chains should prioritize physical facilities and staff responsiveness while developing market-specific approaches to address cultural variations in service expectations. This study contributes to the service quality literature by identifying culturally contingent service dimensions in the East Asian retail context and provides practical implications for international retailers entering these markets.