Analyzing the Effect of Service Quality on Customer's Satisfaction and Their Loyalty

Mohebbi, Mohammad Mehdi; Lotfi, Homa
April 2014
Journal of Applied Sciences Research;Apr2014, Vol. 10 Issue 4, p318
Academic Journal
Customer loyalty is one of the issues that currently has a special place from many managers' perspectives, particularly in the service sector, due to its prevailing competitive environment. In today's world where a lot of changes are associated with various fields of competition, businesses are well aware that their survival depends on the presence and customer satisfaction, attracting new customers and retaining loyal customers. By examining the research on the relationship between customers' satisfaction and their loyalty, it is inferred that there is a significant relationship between loyalty and customer satisfaction and service quality. This study with the aim of assessing factors which affect customer loyalty in using of institutional services, examines the effect of service quality on customer satisfaction and subsequently on the customer loyalty. To evaluate this issue in the present study which is a descriptive one two standard questionnaires, Servqual (quality) and Kano (satisfaction), with 5 Likert-scale items were used. In this study, three hypotheses were proposed and to test them Pearson correlation test was used. For gathering the related data, library resources as well as interviews and questionnaires have been used. Also, due to the limitations with which the researcher may face, the population of the study consisted of 94 representatives from pharmacies and stores that use the company's services. The results indicate that there is a positive significant relationship between service quality and customer satisfaction and customer loyalty. Moreover, there is a significant positive relationship between customer satisfaction and customer loyalty.


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