The Relationship between Service Quality and Customer Loyalty in the Kenyan Mobile Telecommunication Service Industry

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Date
2013
Authors
Agyei, Paul Mensah
Kilika, James M.
Journal Title
Journal ISSN
Volume Title
Publisher
International Knowledge Sharing Platform
Abstract
Customer loyalty has been presented as an indicator of successful quality management practices in both the manufacturing and the service sectors. Due to the rapid growth of the services sector in most economies, there is need to understand how this concept is associated with business practices for supporting quality in the services sector. The study examined the relationship between service quality and customer loyalty in the Kenyan Mobile Telecommunication Service Sector. The SERVQUAL model was adopted in the study. Kenyatta University students drawn from five of its campuses were selected for the population of the study. Pearson product-moment correlation coefficient and regression analyses were the parametric statistical tools used to test the association and effect in the study. A significant relationship was found between service quality and customer loyalty r(313) = 0.47, p<0.05. The SERVQUAL model explained a significant proportion of variance in customer loyalty scores with R2 = 0.306, F(4, 308) = 33.93, p < 0.05. The dimensions in the model predicted different values on customer loyalty: Reliability b = 0.19, t(313) = 2.89, p<0.05, Assurance b = 0.25 t(313) = 3.50, p < 0.05, Empathy b = 0.35 t(313) = 4.90, p<0.05 and Reliability b = 0.37, t(313) = 0.54, p>0.05. In sum, service quality has a positive relationship with customer loyalty. These findings hold implications for industry operators on key areas to pay attention to in order to support the quality of services offered so as to guarantee sustained customer loyalty.
Description
A research article published in European Journal of Business and Management
Keywords
Service quality, Customer satisfaction, SERVQUAL model, Kenyatta University, Customer loyalty
Citation
Agyei, P. M., & Kilika, J. M. (2013). The relationship between service quality and customer loyalty in the Kenyan mobile telecommunication service industry. European Journal of Business and Management, 5(23), 26-36.