| Summary: | This research problem originated from the phenomenon of increasing competition in the modern retail market particulary minimarket. Minimarket business needs to implement strategies to face stiff competition by improving service quality in order to gain consumer loyalty. Therefore the formulated problems will solved through this research is "how to manage retail service quality to create customer loyalty in stiff competition in the retail industry minimarket in Indonesia".
The problem solving begins by formulating and developing a research mo del based on theoretical studies of the previous research result. This model have two variables, they are the retail service quality (personal interaction, policy, physical aspects, reliability and problem solving) and customer loyalty (customer loyalty to store and customer loyalty to staff). The respondens of this study are 100 people who had shopped at the minimarket Indomaret in Yogyakarta.
The result of this study by using multiple linear regression analysis stated that retail service quality have a significant effect on cuatomer loyalty to staff and store. Variable physical aspect has dominant influence on customer loyalty to store while the personal interaction has dominant influence on customer loyalty to staff.
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