Service Quality and Customer Loyalty in the Automotive Industry in Kenya

Abstract

For a multitude of reasons, including earnings, customer referrals, publicity, market share, and competitive positioning, businesses that want to succeed in the marketplace must build and deepen relationships with loyal customers. A competitive market has made it increasingly difficult to retain customers, thus academics have attempted to construct models to investigate consumer loyalty in a variety of settings. Research in Kenya's automobile business was conducted in order to determine the impact of service quality on customer loyalty. As a result, the research aimed to identify the service quality characteristics that are used by the automotive sector in Kenya, to establish the link between the quality of service and customer loyalty, and to compare consumers and the industry. SERVQUAL, expectation disconfirmation theory, and social exchange theory were used to conduct this research. The research design used in this study was a descriptive one. Customers, operational managers, and service managers all participated in the survey. Managers in operations and service at each of the five automakers participated in a census survey. In order to collect primary data on consumer satisfaction and loyalty, questionnaires were employed. Data were analyzed via the use of correlation and regression. For the purpose of discovering the relationship between service quality and client loyalty, a Pearson correlation study was conducted. Customer loyalty in Kenya's automobile sector is positively influenced by tangibles, according to the findings of this research. Reliability has been shown to have a favorable influence on customer loyalty in Kenya's automobile sector. In Kenya's automobile business, responsiveness has a favorable effect on consumer loyalty. Furthermore, in the Kenyan automobile business, assurance was shown to have a favorable influence on consumer loyalty. Empathy has a favorable effect on client loyalty in Kenya's automobile business. An automobile company's competitive edge and bottom line may be improved via the implementation of customer loyalty enhancement initiatives, according to the findings of a new research. A long-term commitment and a knowledge of service quality and customer satisfaction from the viewpoint of the automobile businesses' customers are required for them to pursue client loyalty as a marketing strategy.