The Effect of service quality on customer loyalty: a case of the Laundromatt Company in Nairobi.

Abstract

The relationship between service quality and customer loyalty remains a significant area of interest for scholars and business practitioners owing to the latter’s impact on the bottom line. This study investigated the effect of the various service quality dimensions on customer loyalty. Using the case of a dry cleaning and laundry company in Nairobi, the study sought to reveal those service quality dimensions that are important to dry cleaning and laundry customers; the extent of loyalty among dry cleaning customers and the extent to which such loyalty is influenced by the quality of dry cleaning and laundry services. A descriptive survey was adopted and the researcher administered structured questionnaires to a sample of 306 dry cleaning and laundry customers within Nairobi County. The survey covered customers within the geographical areas of Milimani, Kilimani, Ngong road, Upper Hill and Ridgeways in Nairobi County. Using descriptive and correlation analysis techniques, the primary data was examined to determine the relative importance of the service quality dimensions in the dry cleaning industry, and the effect of such quality on the loyalty of customers. Study findings established a significantly positive effect of service quality on customer loyalty. Spearman’s rank correlation analysis revealed a strong association between the two study variables. Reliability emerged as the service quality dimension with the highest effect on customer loyalty. Physical attributes (tangibles) had the lowest score for both perceived importance and effect on repeat purchases among dry cleaning customers. The findings provide a basis for appropriate recommendations and possible strategies that managers in the dry cleaning and related retail settings can deploy, and also identifies potential areas for further investigation.