Service quality and its relationship with customer satisfaction towards customer loyalty: perceptions of public listed companies
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Date
2005
Authors
Salmi Binti Mohd Isa
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Abstract
This research was conducted to find and get a better understanding of service quality level and to examine the relationship between service quality, customer satisfaction and customer loyalty with the services offered by the audit firms. SERVQUAL model will be used to measure the public listed companies perception and expectation with the audit services received. Questionnaires were sent to 500 audit clients (public listed companies) who engaged the audit services from audit firms. Convenient sampling method was used to determine the sample size and 115 respondents had given their prompt feedback within the suggested time frame. The SERVQUAL gap has been measured and four major hypotheses were developed in order to meet the research objectives. Each of every research questions asked will be answered and reported accordingly based on the insightful findings results. Respondents were asked to rank their expectation of service quality dimensions and as per expected the Reliability dimension was ranked as number one. The results also show there were negative gap for Reliability, Responsiveness, Assurance and Empathy dimension and a positive gap for Tangibles dimension. Meaning to say that audit clients were dissatisfied with those four dimensions except for Tangibles dimension. The relationship between customer satisfaction and customer loyalty showed a very low significant value due to the industry characteristic and background. Reliability dimension was also reported to have a full mediating effect to customer loyalty. This finding will enable audit firms to give more attention on this service dimension in order to ensure their audit clients are being loyal to them. All findings gathered in this research are very useful to the audit firms to enhance their service quality level with their audit clients. Thus, their client expectation will be fulfilled in the future.
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Keywords
Business Administration , Customer Satisfaction , Customer Loyalty