Essay: Service Quality and Customer Loyalty

Sample Essay

The effect of service quality on the loyalty level of the customers is analyzed in a study by Chao et al (2007). The results of the study indicated that “that all three variables independently had significant power in discriminating among three levels of loyalty (high, medium, and low). Customer orientation and interpersonal relationships also functioned as moderators that strengthen the effect of service quality on customer loyalty. Moreover, customer orientation had a greater moderating effect than interpersonal relationship.

The research findings could, we believe, assist wholesale managers to allocate their resources more effectively to establish customer loyalty in an era of fierce competition. (Chao et al, 2007)” A study by Bove & Mitzzifiris (2007) highlighted that trust, commitment and satisfaction of the customers effect the behaviour of the customers for any retailer. These elements influence the behaviour of the customers. The study indicates “that retailers need to be aware that even in a transaction prone retail environment, trust and commitment and not just satisfaction, play a significant role in both store behavioural and attitudinal customer loyalty” (Bove & Mitzzifiris, 2007). Another study that provides information on customer store loyalty in retail industry is that by Chen & Quester (2006). The study indicates that perceived customer value can be considerably increased with high levels of customer loyalty. The results of the study provide that “marketing practitioners should manage customer satisfaction and perceptions of value in their implementation of market orientation as they are directly related to customer store loyalty” (Chen & Quester, 2006)

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