EXAMINING INDUSTRY-SPECIFIC AFTER-SALES SERVICE QUALITY TOWARDS THE LEVEL OF CUSTOMER LOYALTY: A CASE OF MALAYSIAN NATIONAL CARMAKERS

Abstract

The intangible and elusive nature of service requires an industry-specific measures of service quality. This study is intended to assess the service quality in after-sales services by looking into each of the dimensions in SERVQUAL through modifying said dimensions tailored towards the needs of the industry. The findings show technical quality as the key driver of service quality in automotive after-sales service that determined customer loyalty, followed by other attributes such as customer service, tangibility and support service respectively. The data was collected from 312 respondents based on systematic sampling where every three customers were approached at the main entrance of the service branches to answer the self-administered questionnaire. Using PLSSEM as the method of data analysis, the data revealed that technical quality was the most important dimension which served as measures of service quality in automotive after-sales service industry. Even though support service was found to be an impotent element to represent service quality, the significant relationship with customer loyalty showed that it is important to capture a higher level of customer loyalty and needs equal attention. This study contributes to the Malaysian automotive industry, especially national carmakers, as it provides empirical evidence on the relative importance of service quality attributes to be prioritized in developing their marketing strategy to attract more loyal customers.