The purpose of this paper is to examine the relationship between the service climate and the customer’s perception of service quality in a retail setting. Previous work has paid little attention to service climate as a multi-dimensional construct. And most of them focused at the organization level. In addition, previous work usually did not care the characteristic of nested data. The present study considers service climate as a multi-dimensional construct (global service climate, customer orientation, managerial practices, customer feedback), examines the relationship between service climate and service quality, and uses the hierarchical linear model (HLM). The data used in this study are collected from 159 employees and 214 customers at 20 stores within a supermarket chain. As a result, most of service climate dimensions significantly associated with service quality.
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