Impact Of Service Quality On Customer Retention

Abstract

Although important concepts and steps for service quality have been identified and might be many papers have been examined the relationship between service quality and customer retention in theirs own way. But this paper has particularly aim to describe the in details impact of service quality on customer retention along with different determinants and elements of quality and retention like coverage, reliability, sound clarity, connectivity, problem solving, satisfaction, loyalty and various other factors how affect the customer retention. It also defines the importance of service quality to keep customers longer and bring out a result for competitive advantage among cellular companies. About methodological point of view questionnaire based research has been conducted from direct users of mobile companies. This questionnaire was carried various queries about many determinants of service quality and retention explaining relationship and correlation with each other. Further data was analyzed on SPSS with sample size of 170 users. The proposed methodology including regression, frequency and correlation analysis proved that service quality has significant impact on customer retention and determinants or factors define service quality also influence retention which as connectivity has weak relationship, reliability has positive, problem solving has close and sound clarity has a moderate relationship with customer retention. Since service quality has great significance and proves correlation between service quality and customer retention to keep customers longer with companies so they should improve their services. Although this area of study has been discussed a lot in different angles but this research is proved by frequency analysis, regression analysis, correlation analysis along with bar charts and tables. The key words of this thesis were service quality, customer retention and telecom industry.