Customer Satisfaction and Service Quality in Organized Retail versus Kirana Stores in Kanpur: A Comparative Empirical Study Using the SERVQUAL Model

The retail sector in India is undergoing a structural transformation, with organized retail chains steadily expanding into Tier-2 cities, while traditional kirana stores continue to hold a substantial share of the consumer market. This study empirically examines and compares customer satisfaction and service quality in organized retail stores and kirana stores in Kanpur, Uttar Pradesh. Using the SERVQUAL model developed by Parasuraman, Zeithaml, and Berry (1988), primary data were collected from 300 respondents through a structured questionnaire comprising 22 expectation items, 22 perception items across five dimensions — Tangibility, Reliability, Responsiveness, Assurance, and Empathy — and five overall satisfaction items. The data were analysed using descriptive statistics, gap score analysis, independent samples t-test, and multiple regression analysis. The findings reveal that negative service gaps exist across all five SERVQUAL dimensions in both retail formats. Tangibility recorded the largest gap in kirana stores (-0.98), while Empathy showed the smallest gap (-0.20) in kirana stores, suggesting superior interpersonal bonds with customers. Organized retail outperformed on Tangibility and Reliability, whereas kirana stores demonstrated stronger Empathy scores. Regression results confirmed all five SERVQUAL dimensions as significant predictors of customer satisfaction (R² = 0.684). The t-test confirmed a significant difference in overall satisfaction scores between both formats (t = 2.31, p = 0.021). The paper concludes with theoretical and managerial implications for retailers, policymakers, and future researchers.