Service quality, customer satisfaction and loyalty in automobile maintenance services

2018 ◽  
Vol 24 (3) ◽  
pp. 262-279 ◽  
Author(s):  
Samuel Famiyeh ◽  
Amoako Kwarteng ◽  
Disraeli Asante-Darko

Purpose The purpose of this paper is to understand the relationship between service quality, customer satisfaction and the loyalty of car owners. The aim is to understand the relative importance of the various service quality dimensions to Ghanaian car owners as to what drive satisfaction and whether this satisfaction has implication on their loyalty. Design/methodology/approach The study used a survey of car owners and relied on partial least squares-structural equation modeling to study the relationship between service quality and its impact on customer satisfaction and loyalty. Further moderation analysis based on the number of years of dealing with the mechanic was conducted. Findings The result indicates empathy, assurance, responsiveness and tangibles have a significant positive relationship with customer satisfactions. However, the reliability of the mechanic has no significant positive relationship with the satisfaction of customers. The results also indicate that customer satisfaction has a direct positive relationship with customer loyalty. The results further indicate that empathy and reliability of the mechanic have a significant positive relationship with customer loyalty; however, the assurance, responsiveness and tangibles have no significant relationship with customer loyalty. The moderation analysis indicated no significant differences in the hypothesis tested and the length of years of customers dealing with the mechanic. Research limitations/implications There is the need for mechanics to provide caring and individual attention to car owners, it is also important for mechanics to understand that customers want their cars to be serviced by mechanics who exhibit knowledge and courtesy and also deliver service in a very responsive manner. The appearance of the workshop, equipment and directions are also very important to customers. It is, therefore, important for mechanics do their best to satisfy these customers for them to remain loyal. Practical implications The findings indicate the importance of empathy, assurance, responsive and tangibles in mechanic service delivery. It is, therefore, important for mechanics to consistently provide personal attention, attend to customers in a friendly manner, deliver cars after services, provide information to customers when extra repairs are required and should take the time to explain issues to customers. In addition, it is important for mechanics to screen and employ very courteous employees who can tell customers exactly the kind of services needed as well as communicate effectively on the risks of repairs. Prompt services also seem to be the key to the satisfaction of customers. Originality/value The work illustrates and provides some insights and builds on the literature in the area of service quality, customer satisfaction and loyalty from a developing country’s environment. This is one of the few research works investigating the issue of service quality, customer satisfaction and customer loyalty in automobile services using data from the sub-Saharan African environment.

2018 ◽  
Vol 35 (8) ◽  
pp. 1546-1567 ◽  
Author(s):  
Samuel Famiyeh ◽  
Disraeli Asante-Darko ◽  
Amoako Kwarteng

Purpose The purpose of this paper is to understand the moderating role of organizational culture in the relationship between service quality, customer satisfaction and loyalty in the banking sector using data from the Ghanaian banking sector. The idea is to understand the relative importance of the various service dimensions to customers patronizing banking services in Ghana and to ascertain what drives customer satisfaction and whether this satisfaction has implication on their loyalty. Design/methodology/approach The study used a survey and relied on partial least squares structural equation modeling to study the relationship between service quality and its impact on customer satisfaction and customer loyalty. Findings The result indicates that the reliability, ambiance and social factors all have a significant positive relationship with the satisfaction of customers doing business with these banks. However, assurance and responsiveness of the employees seem to have no significant relationship with the satisfaction of customers. It is also important to indicate that organizational culture seems to strengthen the positive relationship between the service quality dimensions and customer satisfaction. The results further indicate that customer satisfaction has a direct positive relationship with customer loyalty. Research limitations/implications Reliability, ambiance and social factors remain the three most important drivers of customer satisfaction in the banking sector in Ghana. It is, therefore, important for bankers to consistently undergo training and education in order to deliver more reliable services to customers. Managers should also make efforts to groom employees, provide attractive promotion materials, provide directions to the banks, make sure the banking halls are neat for customers while waiting and the provision of enough parking spaces for customers. One limitation of this work is that the data focused on only the Ghanaian banking environment. Practical implications The research shows the importance of the service quality constructs such as reliability, ambiance and the social factors on customer satisfaction and loyalty in the banking sector. The organizational culture seems to strengthen the positive relationship between empathy, reliability, tangibles and customer satisfaction. It is therefore important for banks to continue to build cultures that will commit employees to their work, so that they feel the sense of ownership of quality in order to contribute meaningfully. Originality/value The work illustrates and provides some insights and builds on the literature in the area of service quality, customer satisfaction and loyalty from a developing country’s environment using the stimulus-organism-response model. In addition, this work further highlights the importance of the moderating role of organizational culture in the relationship between the service quality dimensions and customer satisfaction.


2019 ◽  
Vol 3 (2) ◽  
pp. 228-244 ◽  
Author(s):  
Muhammad Rezha Pahlawan ◽  
Nurlia Nurlia ◽  
Abdul Rahman Laba ◽  
Erlina Pakki ◽  
Hardiyono Hardiyono

This study aims to determine the effect of Product Quality and Service Quality on Increasing Customer Satisfaction and Loyalty in Makassar Municipal Water Company (PDAM) both directly and through intervening variables or indirect effects. This study uses a quantitative approach conducted with the aim to explain the position of the variables studied and the relationship between one variable with another variable. This research will explain the causal relationship between variables through hypothesis testing. In this study, the analysis method used is path analysis using the SmartPLS program. The results of this study found that directly the product quality had a positive and significant effect on customer satisfaction, service quality had a positive and significant effect on customer satisfaction, product quality had a positive and significant effect on customer loyalty, service quality had a positive and not significant effect on customer loyalty, customer satisfaction positive and significant effect on customer loyalty. The indirect effect of this research is product quality has a positive and significant effect on customer loyalty if mediated by customer satisfaction. Service quality also has a positive and significant effect on customer loyalty if mediated by customer satisfaction.


2017 ◽  
Vol 2 (1) ◽  
pp. 45-52
Author(s):  
Iha Haryani Hatta

The aim of this study was to determine the relationship of the features of the value, satisfaction, and customer loyalty; the effect on the value of customer satisfaction and loyalty; influence of satisfaction on customer loyalty. A total of 200 merchant PT. BANK XYZ as respondents was selected randomly. Analyses were performed using structural equation modeling (SEM). The analysis showed that the feature has a significant influence on customer value, but not for customer satisfaction and loyalty. The values has a significant influence on satisfaction, but not on customer loyalty. Satisfaction has a significant influence on customer loyalty. Discussion and conclusions described in the article. Keywords: features of the value, satisfaction, customer loyalty


2020 ◽  
Vol 32 (3) ◽  
pp. 543-558 ◽  
Author(s):  
Neale J. Slack ◽  
Gurmeet Singh

PurposeThe purpose of this study is to determine the effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction in the supermarket sector.Design/methodology/approachIn total, 480 supermarket customers participated in an intercept survey in four urban centres of Fiji. Descriptive statistics were used to determine the level of service quality provided by supermarkets, and inferential statistics to determine the gap between customer's service quality expectations and perceptions and to test the research hypotheses.FindingsThe findings indicate service quality of supermarkets is perceived as being unsatisfactory, service quality significantly affects customer satisfaction and loyalty and customer satisfaction partially mediates the relationship between service quality and customer loyalty reducing customer's perceptions of service quality, leading to lower customer loyalty.Practical implicationsThis study provides an indication as to where supermarkets should target their marketing attention and scarce corporate resources and may help in their efforts to service, satisfy, retain and attract more long-term loyal customers in the increasingly competitive supermarket sector. This research could inform government policy makers in sequencing the supermarket sector transformation and assist local supermarkets to adapt to this changing retail landscape.Originality/valueThis study advances our understanding of the effect of service quality on customer satisfaction and loyalty and the mediating role of customer satisfaction in the supermarket sector.


2019 ◽  
Vol 11 (6) ◽  
pp. 1691-1705 ◽  
Author(s):  
Abror Abror ◽  
Dina Patrisia ◽  
Yunita Engriani ◽  
Susi Evanita ◽  
Yasri Yasri ◽  
...  

Purpose The purpose of this study is to investigate the influential factors of customer loyalty to Islamic banks, namely, service quality, customer satisfaction, customer engagement and religiosity. Design/methodology/approach This study is a survey of 335 Islamic bank customers in West Sumatra, Indonesia. This research deployed purposive sampling and analyzed the data by using covariance-based structural equation modeling. Findings Service quality has a positive and significant impact on customer satisfaction. Religiosity has a significant and negative moderating impact on the service quality–customer satisfaction relationship. Service quality has no significant influence on customer loyalty. Customer satisfaction is a significant antecedent of customer engagement and loyalty. Finally, customer engagement has a significant and positive effect on customer loyalty. Research limitations/implications This study is a combination of cross-sectional and a single-country case. Accordingly, the results may not be representative of other countries. Similar studies in longitudinal data collection are conducted in other countries (e.g. ASEAN countries), which would therefore be worthwhile. Some antecedents of customer loyalty have been neglected in this study (e.g. customer value co-creation and customer commitment); hence, the future study may investigate those factors. Practical implications By considering these Islamic banks’ antecedents, the Islamic banks might enhance their customer loyalty. Also, this study has revealed the moderating role of religiosity in a loyalty relationship. Therefore, it will give insights for the Islamic bank managers in decision-making. Originality/value This study has revealed the moderating role of religiosity on the link between service quality and customer satisfaction in Islamic banks, which is, to the authors’ knowledge, neglected in the previous studies. The customers with high religiosity will have a higher standard of satisfaction and demand a better service quality than the customers with low religiosity. This study has also examined the relationships between service quality, religiosity, customer satisfaction, customer engagement and loyalty as a whole, which have been limited previously.


2020 ◽  
Vol 32 (6) ◽  
pp. 1525-1540
Author(s):  
Andriani Kusumawati ◽  
Karisma Sri Rahayu

PurposeTo test the effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty to the visitors of natural nuanced outdoor cafés in the hilly areas of Joyo Agung, Malang.Design/methodology/approachThis study uses four variables, namely experience quality, customer perceived value, customer satisfaction, and customer loyalty. The population used in this research was all customers or visitors who buy and enjoy the products and services provided by the natural outdoor cafés in Malang. This study used structural equation modeling (SEM) as inferential statistical technique.Findings1) Quality experience has a significant effect on customer perceived value, customer satisfaction, and customer loyalty; 2) customer perceived value has a significant effect on customer satisfaction and customer loyalty; and 3) customer satisfaction has a significant effect on customer loyalty.Originality/valueBased on the results of previous research and the phenomenon that has been described previously, the research gaps found in this study are: (1) the relationship between experience quality and customers’ perceived values. (2) There are differences in the relationship between experience quality and customer satisfaction found in the research, which examines the effect of experience quality on customer loyalty. (3) Experience quality and customer loyalty variables still differ in the research concerning the effect of experience quality on customer loyalty. (4) The influence of customer satisfaction and customer loyalty is still different in the research results regarding the effect of customer satisfaction on customer loyalty.


2017 ◽  
Vol 35 (6) ◽  
pp. 983-996 ◽  
Author(s):  
George Kofi Amoako ◽  
Peter Anabila ◽  
Ebenezer Asare Effah ◽  
Desmond Kwadjo Kumi

Purpose The purpose of this paper is to investigate the mediating role of brand preference on the relationship between bank advertising and customer loyalty in Ghana’s banking industry. Design/methodology/approach A total number of 600 respondents participated in the study. Convenient sampling technique was employed to select a cross-section of customers from the universal banks currently operating in Ghana. Structural equation modeling technique of PLS was used to test the nature of relationships in the research hypotheses. Findings The study found a significant positive relationship between advertising effectiveness and brand preference. Also, there is a significant positive relationship between advertising and customer loyalty. Again, there is a significant positive relationship between brand preference and customer loyalty. Finally, brand preference positive mediates the relationships between advertising and customer loyalty. Practical implications The study provides a useful guide to strategy and policy formulation in marketing communication by establishing the potential viability of advertising strategy in bank marketing and its potential to generate brand preference and customer loyalty. Originality/value The study has practical implication for, and relevance not only to the banking industry communication strategy but also the entire financial services industry.


2020 ◽  
Vol 10 (1) ◽  
pp. 45-56
Author(s):  
Slamet Heri Winarno ◽  
Aloysius Rangga Aditya Nalendra ◽  
Bryan Givan

Competition in business services, especially education services show a trend that increasingly tight nowadays. Each school is required to be able to create a level of satisfaction and loyalty for its service users. This study was conducted to determine the effect of service quality, corporate image and price perception in creating customer satisfaction and loyalty. In this study using 173 respondents as a sample by using the method of saturated sampling. This research is a quantitative research using the observation method, interview, and spreading of the questionnaire. The analysis technique used is Structural Equation Modeling (SEM) with the path diagram. Variables used include quality of service (X1), corporate image (X2), price perception (X3), customer satisfaction (Y1) and customer loyalty (Y2). The results showed that customer satisfaction is influenced by corporate image and price perception of 18.4% while customer loyalty is influenced by price perception and customer satisfaction of 60.5%. This suggests that service quality is not always a decisive factor in customer satisfaction and loyalty.


Author(s):  
Marliyah Marliyah ◽  
M. Ridwan ◽  
Ayu Kartika Sari

Bank Syariah Mandiri (BSM) is a real example of a bank that has utilized information technology as an additional service provided to improve the customer experience in transacting online via the internet, namely through a mobile banking application. The application of mobile banking is one form of BSM's commitment in providing good quality electronic services, and can be felt and assessed by customers who have used it. These assessments can then affect their level of satisfaction. Based on this, it then encouraged researchers to test the influence of the quality of mobile banking electronic services offered by Bank Syariah Mandiri KCP Belawan on the satisfaction and loyalty of mobile banking users. This research is intended to analyze the effect of e-service quality on customer satisfaction and its impact on customer loyalty. Questionnaire items used as many as 35 items. Data collection is done by distributing questionnaires to customers of Bank Syariah Mandiri KCP Belawan who at least have an account and use BSM mobile banking application for 3 (three) months with a sample number of 84 people determined by nonprobability sampling method. The analytical technique used is Structural Equation Modeling Partial Least Square (SEM-PLS). The results obtained in this study are that: (1) The relationship of e-service quality has a positive and significant effect on customer satisfaction. This can be proven from the t-value greater than 1.96 which is 13,230. Thus, H1 in this study was accepted. (2) The relationship of e-service quality has a positive and significant effect on customer loyalty. This can be proven from the t-value greater than 1.96 which is 3,267. Thus, H2 in this study was accepted. (3) Customer satisfaction relationship has a positive and significant effect on customer loyalty. This can be proven from the t-value greater than 1.96 which is 3,666. Thus, H3 in this study was accepted.


2021 ◽  
Vol 21 (2) ◽  
pp. 17-35
Author(s):  
Deri Pranoto ◽  
Mawardi Mawardi

Abstract:                The purpose of this study was to determine the effect of service quality on customer loyalty and to determine the effect of service quality on customer satisfaction at PT. Bank BRI Tenggarong Branch. As one of the state-owned banks with the largest profits in Tenggarong District, the problems that occur in Bank BRI are the Marketing Research Indonesia Survey (MRI) on customer loyalty and The Best Bank Service Excellence 2016 to 2017 shows that Bank BRI's score in terms of service and customer loyalty is still far from expectations. This means that Bank BRI has not succeeded in creating and managing customer loyalty properly. This study uses data analysis using Structural Equation Modeling (SEM) assisted by SmartPLS version 3.2.8. by testing the hypothesis using the t statistical test. The number of samples used amounted to 143 people.                The results showed that the service quality variable had a significant effect on customer loyalty. The service quality variable has a significant effect on customer satisfaction. The variable of customer satisfaction has a significant effect on customer loyalty. The corporate image variable has no significant effect on customer loyalty. The service quality variable indirectly has a significant effect on customer loyalty through customer satisfaction so that the customer satisfaction variable is partially proven or there is partial mediation and the corporate image variable has no significant effect in moderating the customer satisfaction variable on customer loyalty with a positive relationship direction (strengthening) and the image variable. companies in this study are included in the Moderation Potential type (Homologiser Moderator)   Keywords: Service Quality, Customer Loyalty, Customer Satisfaction, Satisfaction Customers, Company Image


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