The Relationship between Digital Technology, Service Innovation, and the use of Customer Data on The Success of Modern Retail Businesses
Keywords:
Modern Retail Business, Retail Technology, Customer Data Usage, Modern Retail Service Innovation, Customer ExperienceAbstract
This study aimed to examine (1) digital technology and modern retail service innovations in modern retail businesses. In addition, it aimed to investigate (2) customer experience, satisfaction, and loyalty among consumers using modern retail services. Moreover, the study focused on analyzing (3) the relationships between digital technology, modern retail service innovations, and the use of customer data on customer experience, satisfaction, and loyalty. Finally, the study aimed to propose (4) guidelines for applying digital technology and modern retail service innovations to enhance competitive advantage in modern retail businesses. This study employed a quantitative research methodology. The sample consisted of 409 consumers who use modern retail services, selected through accidental sampling. The research instrument was a 5-point Likert scale questionnaire with confirmed content validity and reliability. Data were analyzed using frequency, percentage, mean, standard deviation, and correlation analysis. The results revealed that (1) digital technology and modern retail service innovations were overall at a high level, with digital technology in retail stores receiving the highest mean score. In addition, it was found that (2) customer experience, satisfaction, and loyalty were also at a high level, with customer experience demonstrating the highest mean score. Moreover, the findings indicated that (3) digital technology, modern retail service innovations, and the use of customer data were positively correlated with customer experience, satisfaction, and loyalty at a high level, with statistical significance at the .01 level. Finally, the results suggested that (4) the integration of digital technology and modern retail service innovations, together with the effective use of customer data, can enhance customer experience, satisfaction, and loyalty, thereby contributing to a sustainable competitive advantage for modern retail businesses.
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