Service quality, customer satisfaction and loyalty in automobile maintenance services: Evidence from a developing country

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.

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.

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.

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.

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.

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.