EFFECT OF EMPLOYEE EMPATHY ON CUSTOMER SATISFACTION AND LOYALTY DURING EMPLOYEE- CUSTOMER INTERACTIONS: EVIDENCE FROM THE COMMUNITY PHARMACIES OF KARACHI, PAKISTAN

Abstract

Purpose- The study has aimed to determine the role of employee empathy, affective commitment, perceived service quality for improving customer satisfaction and loyalty. While the effect of customer satisfaction and loyalty on improving positive word of-mouth and return intention to pharmacies in Karachi, Pakistan was also evaluated by the study. Methodology/sample- 384 sample responses were collected from the customers of community pharmacies in Karachi city of Pakistan using convenience sampling technique. Five-point Likert scale questionnaire was used as data collection instrument and measures were adopted from past literature. The study has employed PLS-SEM using SmartPLS version 3.2.8. Findings- Employee empathy has positive impact on customer affective commitment, customer satisfaction and perceived service quality. Perceived service quality influences customer satisfaction, whereas customer satisfaction has positive impact on customer loyalty. Customer loyalty effect positive WOM and repurchases intention. However, customer affective commitment has insignificant effect on customer satisfaction. Practical Implications- It is implied to interact emphatically and respond accurately during the interaction between employees and the consumers. It is so, as the employees’ influences majorly over the customers and interacts directly with the consumers.