Service quality, customer satisfaction and loyalty in automobile repair services sector

2015 ◽  
Vol 32 (3) ◽  
pp. 250-269 ◽  
Author(s):  
Ernest Emeka Izogo ◽  
Ike-Elechi Ogba

Purpose – The purpose of this study is to explore the dimensional structure of the SERVQUAL scale within non-western service setting as well as the impact of service quality dimensions on customer satisfaction and loyalty. Design/methodology/approach – A quantitative approach was employed, using 32-item, seven-point Likert-scaled questionnaire administered to 384 participants with 55.99 per cent usable response rate. Data were analysed using exploratory factor analysis, Cronbach’s internal consistency and γ test to, respectively, measure scale suitability, usability and strength/direction of association. Findings – The outcome from the study was the reduction of the 32 items to 26 scale items with 0.929 total α score. Further outcomes show that service quality dimensions are significant predictors of customer satisfaction and loyalty with the commitment dimension accounting for the highest degree of this impact. Research limitations/implications – Findings failed to corroborate past research as it was established that distinct efforts to measure customer satisfaction and loyalty within non-western service contexts proved to be less useful. However, outcomes cannot be generalized and as such, the modified scale that emerged from this research should receive more rigorous tests in other emerging services contexts. Practical implications – Automobile repair services firms within Ebonyi State will be better placed in their strategic responses to customer loyalty if they boost customers’ satisfaction through excellent service quality improvement actions. Social implications – The best way to enhance the welfare of the consumers of automobile repair services in Ebonyi State is by improving the empathy, tangibles, responsiveness, reliability and commitment dimensions of service quality. Originality/value – The paper demonstrates that the commitment dimension of service quality emerged as the most significant predictor of customer satisfaction and loyalty. The research also demonstrates that satisfied customers will definitely be loyal because a distinct effort to measure customer satisfaction and loyalty was found to be less useful.

2015 ◽  
Vol 7 (2/3) ◽  
pp. 152-169 ◽  
Author(s):  
Gerson Tontini ◽  
Júlio Cesar da Silva ◽  
Eliane Fátima Strapazzon Beduschi ◽  
Elis Regina Mulinari Zanin ◽  
Margarete de Fátima Marcon

Purpose – The purpose of this paper is to consider the nonlinear impact of online retail stores’ quality dimensions on general customer satisfaction and loyalty. Design/methodology/approach – Using a quantitative approach, 429 online users answered a closed questionnaire regarding their present satisfaction with 26 service attributes, their general satisfaction and loyalty. Using factorial analysis with Varimax rotation, five service-quality dimensions are studied: service accessibility/speed, fault recovery, buying reliability, service and site flexibility and site interaction/feedback. Penalty and reward contrast analysis identifies the Kano model classification of the service-quality dimensions, and the nonlinear impact of these dimensions, and customer satisfaction, on customer loyalty. Findings – The results show that there is a nonlinearity between quality dimensions, customer satisfaction and loyalty. The dimension “service accessibility/speed” has a one-dimensional impact on customer satisfaction, but with higher reward impact than penalty impact. “Fault recovery” is a “must-be”, “buying reliability” and “service flexibility” are “attractive” and “site interaction/feedback” is one-dimensional. Besides, the dimension “service accessibility/speed” has also a direct impact on loyalty if achieving above-average performance, thus reinforcing general customer satisfaction. Originality/value – Few previous papers explore this nonlinearity in online retail services. So, future studies should lead to a theoretical and practical understanding of managing these services. Understanding this nonlinearity may help companies to better identify what improve or offer to customers.


2017 ◽  
Vol 35 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal

Purpose In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India. Design/methodology/approach On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique. Findings The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks. Research limitations/implications The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks. Originality/value There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rafikul Islam ◽  
Selim Ahmed ◽  
Mahbubar Rahman ◽  
Ahmed Al Asheq

PurposeThe main purpose of this study is to investigate the impact of various service quality dimensions, namely reliability, responsiveness, visibility, employee commitment and access to service on customer satisfaction in the private banking sector of Bangladesh. The research also investigates the relationship between customer satisfaction and loyalty and effect of demographic variables on customer satisfaction.Design/methodology/approachThe researchers distributed 320 self-administered survey questionnaires among private banks' customers in Bangladesh and obtained 200 useable responses with a 62.5% valid response rate. The research data were analysed using confirmatory factor analysis (CFA) and structural equation modelling (SEM) approaches. Analysis of variance and logistic regression have also been used to obtain the supplementary findings.FindingsThe research findings indicate that visibility, responsiveness and employee commitment have positive and significant effect on customer satisfaction, whereas reliability and access to service are found to have insignificant influence on customer satisfaction of private banking services. The findings of this study also revealed that customer satisfaction has positive and significant relationship with customer loyalty. But except respondents' occupation type, all other demographic variables have no statistically significant relation with customer satisfaction.Research limitations/implicationsThe research focused solely on the private banking sector of Bangladesh, and thus the results may not be applicable to other service sectors.Originality/valueThis study conducted on customers' perception of private banking services is based on extended service quality dimensions and its relationship with customer satisfaction towards loyalty. The present research findings are anticipated to offer the guidelines for improving the customer satisfaction and loyalty of private banking services in Bangladesh as well as other countries.


2017 ◽  
Vol 8 (4) ◽  
pp. 595-604 ◽  
Author(s):  
Mohamed Abdulnaser Janahi ◽  
Muneer Mohamed Saeed Al Mubarak

Purpose The purpose of this paper is to contribute to the Islamic banking literature by examining the impact of different factors of customer service quality on customer satisfaction. Design/methodology/approach The paper presents a model which is not frequently used in Islamic banking literature and shows relationships between six factors of customer service quality and customer satisfaction in the Islamic banking sector. Customers of five main Islamic banks are contributing in this study. Findings This paper demonstrates strong and positive relationships between the six main dimensions of customer service quality (Compliance, Assurance, Reliability, Tangibility, Empathy and Responsiveness) and customer satisfaction. Research limitations/implications The study may suffer from lack of generalization, as it is conducted in one country (Bahrain). It might also be useful to enlarge the study sample and include comparison between Islamic versus conventional banking with regard to service quality and customer satisfaction. Practical implications This paper can influence the current Islamic banks with regard to service quality with an ultimate aim of increasing customer satisfaction and retaining customers. Originality/value This study is one of the few that focus on effects of customer service quality dimensions on customer satisfaction in the Islamic banking sector. It reveals that, although customers pay special attention to Sharia’h laws (compliance) in their transactions with banks, the way services are delivered matters to them too.


2018 ◽  
Vol 36 (5) ◽  
pp. 908-930 ◽  
Author(s):  
Sedigheh Moghavvemi ◽  
Su Teng Lee ◽  
Siew Peng Lee

Purpose Foreign and local banks in Malaysia are competing in terms of skilled staff, innovative products and services, rendering quality services and customer satisfaction. The purpose of this paper is to examine the overall service quality and customer satisfaction of both foreign and local banks. Design/methodology/approach The data used to test the hypothesis were collected from 748 foreign and local bank customers in Malaysia. The research model was analysed using a structural equation modelling technique. Findings Results show that knowledge and staff competencies, as well as convenience of the bank is more significant for local bank customers while bank image and internet banking are important components for foreign bank customers. The results also reveal that foreign bank customers have higher satisfaction as compared to local bank customers. Research limitations/implications No analysis is undertaken of any difference in the service quality dimensions between banks of different size. Further research on banking services could usefully test services quality dimensions across banks of different sizes. Practical implications The findings serve as a valuable reference for local banks understand service quality challenges they may face from foreign banks in this competitive industry. Findings suggest that, to provide high-quality services, financial institutions need to heighten customer satisfaction differentiation strategies. Originality/value The outcomes of this study enhance the knowledge on the performance of both local and foreign banks in Malaysia as well as customer satisfaction, which are invaluable to all bank managers and industry players in improving their services.


2016 ◽  
Vol 8 (2) ◽  
pp. 54-70 ◽  
Author(s):  
Rajiv Sindwani ◽  
Manisha Goel

The technology based self service banking (TBSSB) refers to automated banking services that customer avail without interaction with bank employees. This paper investigates the relationship between dimensions of TBSSB service quality, customer satisfaction and loyalty. The paper also examines the mediating role of customer satisfaction in the relationship. The dimensions are identified and confirmed by conducting EFA and CFA respectively using SPSS 16.0 and AMOS 20.0. Dimensions of TBSSB SQ are identified as Convenience, Reliability & Security, Responsiveness and Personalization. AMOS 20.0 is used to investigate the relationship between dimensions using SEM. It is found that Convenience and personalization have significant effect on customer satisfaction, and personalization and customer satisfaction have significant effect on loyalty. Customer satisfaction is also confirmed as a mediating factor. This study may help bank managers to investigate the customers' quality perceptions about TBSSB services and enlighten banks about the aspects of services to be focused.


2017 ◽  
Vol 35 (7) ◽  
pp. 1068-1089 ◽  
Author(s):  
Manon Arcand ◽  
Sandrine PromTep ◽  
Isabelle Brun ◽  
Lova Rajaobelina

Purpose The purpose of this paper is to investigate the multidimensional concept of mobile banking service quality (security/privacy, practicity, design/aesthetics, enjoyment and sociality) and the impact of the latter on the quality of the relationship (commitment, trust and satisfaction) between consumers and their primary financial institution. Design/methodology/approach An online survey was conducted using a sample of 375 respondents, all owners of a mobile device and all accustomed to conducting banking activities on mobile platforms. Results were analyzed using structural modeling techniques (EQS 6.1). Findings Findings confirm that trust significantly and positively impacts commitment/satisfaction. Mobile banking service quality dimensions also influence trust and commitment/satisfaction. Trust is associated with security/privacy and practicity (regarded as utilitarian factors), while commitment/satisfaction is driven by enjoyment and sociality (dimensions more hedonic by nature). No link is found between interface design and either trust or commitment/satisfaction. Originality/value This study contributes to bank marketing theory since it is the first to demonstrate how key mobile banking service quality dimensions drive customer perceptions of relationship quality. In doing so, this research extends beyond mobile adoption (short term) by addressing customer engagement with financial institutions and issues relating to relationship quality (long term). Regarding managerial implications, findings signal to marketers in the financial services industry the importance of not underestimating the power of hedonic factors (sociality and enjoyment) when developing mobile platforms. These dimensions are often overlooked in the banking industry, a sector in which consumers are believed to be mostly driven by utilitarian motives.


2015 ◽  
Vol 33 (1) ◽  
pp. 23-40 ◽  
Author(s):  
Muahmmad Kashif ◽  
Sharifah Suzana Wan Shukran ◽  
Mohsin Abdul Rehman ◽  
Syamsulang Sarifuddin

Purpose – The purpose of this paper is to examine the impact of PAKSERV measures on customer satisfaction and loyalty in the Malaysian Islamic banking context. Design/methodology/approach – The dimensionality of the PAKSERV scale is examined with confirmatory factor analysis. A survey approach is adopted to collect data from 300 Islamic banking customers in Kuching, Malaysia. Findings – Results reveal an excellent model fit for the PAKSERV scale in collectivist cultural context of Malaysia. All dimensions of PAKSERV are validated except reliability. The issue of non-validity of the reliability dimension in an Islamic banking context is explained by extant literature. Practical implications – Islamic banks are recommended to focus on all the PAKSERV scale dimensions to impart service quality. Given a collectivist cultural setting, a “network marketing” approach is recommended to maintain a desirable level of customer satisfaction and loyalty. Originality/value – The PAKSERV scale has been employed for the first time to investigate the service quality-loyalty path in a collectivist cultural context. The validity of the PAKSERV scale has been operationalized for the first time in a collectivist cultural context.


2015 ◽  
Vol 32 (5) ◽  
pp. 486-502 ◽  
Author(s):  
Faizan Ali ◽  
Bidit Lal Dey ◽  
Raffaele Filieri

Purpose – The purpose of this paper is to assess foreigners and overseas Pakistanis’ evaluation of the quality of the services provided by Pakistan International Airlines (PIA) and its effect on customer satisfaction. Design/methodology/approach – A convenience sample of 498 respondents was used to test the hypotheses of the study through structural equation modelling. Findings – The results of this study indicate that all of the hypotheses are supported and customer satisfaction of PIA customers is influenced by all of the five service quality dimensions (AIRQUAL), including airline tangibles, terminal tangibles, personnel, empathy, and image. Research limitations/implications – This research examines the relationship between service quality dimensions and customer satisfaction. The study focuses on the evaluation of overseas Pakistanis and foreigners regarding the service quality of PIA. The main limitation of this study is that it focuses on PIA: thus, the results cannot be generalised. Practical implications – The results indicate that managers should focus on different dimensions of airline service quality in order to enhance customer satisfaction. Originality/value – This study would enable PIA to have a better understanding of the effects of service quality, which will lead to passengers’ satisfaction and encourage the development of long-term relationships with their customers.


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