EFFECT OF SERVICE QUALITY ON CUSTOMER LOYALTY IN THE NIGERIAN TELECOMMUNICATION INDUSTRY
Odonye Dauda Emmanuel, Dr. Odonye Dauda Yusuf and Kadarko Esther Dizaho
Volume 8 Issue 1
Abstract
The most critical challenge that manufactures or service providers face in today competitive and turbulent business environment is how to keep loyal customers who will contribute long-term profit to organizations that will ensure their survival and growth. This study therefore assesses the effect of service quality on customer loyalty in Nigeria telecommunication industry. In order to achieve this objective, the study employed both quantitative and qualitative method of data collection, interpretation and analysis. It makes use of multiple regression and descriptive statistics for interpretation and analysis of data collected. Findings from the research work reveal that all the service quality dimensions: reliability, responsiveness, tangibility, assurance and empathy are statistically significant predictors of variation of customer loyalty in the telecom industry. Furthermore, it equally showed that of the five dimensions of service quality, reliability is the most influential predictor of customer loyalty followed by responsiveness, assurance, tangibility and empathy in that order. It was therefore, concluded that a clearer understanding as to the sequence of relationship between service quality and customer loyalty can enhance effective customer targeting using limited marketing resources. It was based on this backdrop that the study recommends among other things that telecom operators should focus on service quality for the purpose of customer retention and building customer loyalty. Also, frequent customer survey should be conducted to understand customer expectations of service delivery. These expectations should be translated into service standards and then communicated at all levels of the organizational hierarchy. In particular, strong communication channels need to be established with frontline staff so that they are fully aware of customer service expectations. Key Words: Service Quality, Customer Loyalty, Telecommunication Industry M. Business Administration 1. Introduction
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