The Effects of Service Quality to Customer Satisfaction and Customer Loyalty – A study of ADSL service in Ho Chi Minh City
Abstract
The main objective of this study examines the factors that impact to the service quality to customer satisfaction and customer loyalty by empirical research through customer who use ADSL service in Ho Chi Minh City. This study revised SERQUAL scale of Parasuraman to measure the quality of ADSL services with some modifications was used to assess satisfaction and customer loyalty. Besides the traditional four dimensions: Empathy, Reliability, Responsiveness and Assurance of SERVQUAL, we added two more dimensions: Transmission of speed and price. Sample included 292 customers using ADSL services, divided by the market share of ADSL services provider in Ho Chi Minh City.
Based on the results of the deep analysis exploring the direct and indirect effects of six independent and one dependent variables on customer loyalty, these factor is prioritizedly ordered: customer satisfaction, assurance, transmission of speed, responsiveness, price. This study shows that customer satisfaction is the biggest factor impact to customer loyalty. Moreover, in order to achieve high customer loyalty, ADSL Service Company should have better of assurance, transmission of speed, responsiveness and price. Besides, the most effect on satisfaction of customer is responsiveness and assurance and this research has not yet found any evidences can prove the rest factors have a correlation with this variables. In contrast, this research also highlighted that customer does not care more about empathy and reliability, that
is reason why empathy and reliability does not affect to customer satisfaction and their loyalty when use ADSL service.
The findings help ADSL service provider understand better about the components of
ADSL’s service quality, the relationship between service quality, price, transmission
of speed, satisfaction and loyalty of customers about ADSL services, and the level of customer’s evaluation for those factor. Therefore, this research may have implication
for the ADSL service provider in enhancing their strategies to improve service
quality, customer satisfaction and loyalty.