The Relationship between Service Quality and Customer Loyalty in the Kenyan Mobile Telecommunication Service Industry

Abstract

Customer loyalty has been presented as an indicator of successful quality management practices in both the manufacturing and the service sectors. Due to the rapid growth of the services sector in most economies, there is need to understand how this concept is associated with business practices for supporting quality in the services sector. The study examined the relationship between service quality and customer loyalty in the Kenyan Mobile Telecommunication Service Sector. The SERVQUAL model was adopted in the study. Kenyatta University students drawn from five of its campuses were selected for the population of the study. Pearson product-moment correlation coefficient and regression analyses were the parametric statistical tools used to test the association and effect in the study. A significant relationship was found between service quality and customer loyalty r(313) = 0.47, p<0.05. The SERVQUAL model explained a significant proportion of variance in customer loyalty scores with R² = 0.306, F(4, 308) = 33.93, p < 0.05. The dimensions in the model predicted different values on customer loyalty: Reliability b = 0.19, t(313) = 2.89, p<0.05, Assurance  b = 0.25 t(313) = 3.50, p < 0.05, Empathy b = 0.35 t(313) = 4.90, p<0.05 and  Reliability b = 0.37, t(313) = 0.54, p>0.05. In sum, service quality has a positive relationship with customer loyalty. These findings hold implications for industry operators on key areas to pay attention to in order to support the quality of services offered so as to guarantee sustained customer loyalty.

Keywords: Service quality, Customer satisfaction, SERVQUAL model, Kenyatta University, Customer loyalty