Psychographic Factors Influence Saudi Consumer’s Service Quality in Hypermarket

Abstract

With a robust economic growth and a young population, Saudi Arabia has witnessed a high consumer demand in the food and grocery sector. This has led towards a transformation of its retailing industry from small and unorganised markets to palatial malls and hypermarkets. As the number of choices increases with the entry of new players, retailers need to understand customers’ perceptions of the quality of services and product offered as this is crucial towards the survival and competitiveness in the market. The determinants of service quality vary across different industries, countries and individual characteristics. However, studies that link customer service to factors such as demographic, psychographic characteristics are scarce especially in this region. Therefore, the primary goal of this research is to examine the influence of perceived service quality on customer’s living style and demographic variables. In carrying out this research, questionnaires were distributed to retail customers in major shopping malls located in three cities which represent more than 60% of the Saudi population (Riyadh, Jeddah, and Dammam). 800 questionnaires were distributed but only 408 questionnaires were useable, yielding a response rate of 51%. The findings revealed that the two antecedent factors demographic had a partial influence on PSQ while psychographic has no influence. The study concluded with some recommendations that can be of a great use to retailers in Saudi Arabia and future researchers.