Role of Customer Loyalty on Employee Performance and Productivity in Pharmacy Business in Thailand

Abstract

Kevin Wongleedee.

With the entrance of discount pharmacies in Thailand the competitiveness of traditional community pharmacies has declined. Owing to this, the traditional selling methods to attract the consumers have become obsolete. Therefore, this study is conducted to find a new way i.e. enhanced employee performance to increase customer loyalty. Furthermore, the mediating role of perceived value and trust has also been taken into account pertinent to pharmacy business in Thailand. The respondents of the study were the customers of franchises of community pharmacies in Thailand. Survey questionnaire technique was used to collect the required data from the pharmacies which were selected through random sampling technique. Additionally, PLS-SEM technique was utilized for data analysis. The results show that customer loyalty – attitudinal loyalty (AL) and behavioral loyalty (BL) – is increased with augmented employee performance (EP) apropos the demands of the customers. Furthermore, trust (TR) and perceived value (PV) positively mediates between the both. The research also enlightens the decision makers to best design the employee training sessions to enhance the profitability and compete with discount pharmacies.