Service Quality and Customer Loyalty in the Ghanaian Automobile Service Industry - A Case Study of Toyota Ghana Company Limited

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The Ghanaian automobile service industry has recently seen a lot of competition with the proliferation of various brands. The provision of quality after-sale service has therefore become an important source of competitive advantage in winning and retaining customers. The study sought to use Toyota Ghana Company Limited as a case study to understand the relationship between service quality and customer loyalty. This research work adopted the SERVQUAL service quality model with its five dimensions (tangibles, reliability, responsiveness, assurance and empathy) to measure customers’ perception of service quality and to investigate its effect on their loyalty. A self-completion questionnaire with a total of 45 closed questions and 2 open ended questions was developed to gather field data from 5 Toyota Ghana branches nationwide. All of the items were measured by using a five Point Likert-type response scale. SPSS software was used to carry out reliability test, descriptive analysis (frequency and percentage distributions), correlation coefficient tests and regression model analysis on the data obtained. Responses to the open ended questions were also studied. The results showed that there exists a positive relationship between all the five dimensions of service quality and customer loyalty. It also showed that Toyota Ghana customers have a positive perception of services rendered to them and have a high sense of loyalty to the company. The study provides insight and significant feedback from automobile service customers. As the competitive environment increasingly becomes fierce, the voice and expectations of the customers have become important in the quest to keep them loyal so as to maintain long term organizational revenue streams. This finding is expected to serve as a guide to automobile service managers and also to managers of service firms in general in making informed judgment about the quality of their services having the customer in mind.
A thesis submitted to the Institute Of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION.