Abstract

This study aims to address the current gaps in knowledge by identifying the main factors that influence customer loyalty to third-party automotive repair shops and provide strategies so that the latter can enhance customer loyalty and retention. The study focuses on third-party independent, automotive repair and service because of the limited and incomplete research on customer loyalty and strategies for improving business processes in this context. The dependent variable was Customer Loyalty and the independent variables were: Service Quality, Perceived Value, Trust, Habit, Reputation & Servicescape. The study found that Service quality, Trust and Reputation have a significant influence on customer loyalty on third party automotive shops.

Highlights

  • In partial fulfillment of the Requirements for the degree of Master of Science in Management (MScM)

  • The study found that Service quality, Trust and Reputation have a significant influence on customer loyalty on third party automotive shops

  • The present work adapted the model used by Yee & Faziharudean (2010), a study which researched the variables of service quality, perceived value, trust, habit and reputation and their influences to customer loyalty towards a banking website (Figure 4) (Yee & Faziharudean, 2010)

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Summary

Statement of Purpose

Consumers generally perceive themselves to be overcharged and underserved by the automotive service industry (Parasuraman, Zeithaml, & Berry, 1985). There has been increased competition between third-party automotive shops thereby forcing service centers to provide better service and quality products in order to maintain or gain customers (Judge & Robbins, 2013) This has been fueled partially by the internet since it provides consumers with fast and accessible information on the quality of services and prices for nearly every third-party automotive shop in every major city of the world (Bagga & Gupta, 2014). Given these factors, there is a need for third-party automotive shops to determine what drives customer loyalty, increases word-of-mouth marketing, and to retain and/or grow their customer base. The intention of this literature review is to scrutinize some factors that influence customer loyalty towards third-party automotive shops

Service Quality
Perceived Value
Consumer Habit
Reputation
Servicescape
Conceptual Model
Habit Habit entails an automatic behaviour repeated often in response to cues and contexts
Reputation Reputation of a brand or business is a value judgement formed over a long period (Bennett
Instrument
Sampling
Data Analysis
Descriptive Statistics
Statistical Analysis
Testing the Measurement
Internal Consistency
Convergent Validity The Average Variance
Discriminant Validity
Analysis of the Path Model
Theoretical Implications
Implications for Business
Future Research
Reputation RP1
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