Service Quality in Shipping Industry of Ghana – Determinants and Impact on Customer Satisfaction and Customer Retention

Abstract

Customer retention and satisfaction are the most important objectives and indicators of a company's success in today's world, and monitoring them is one of the most important management jobs. The modified SERVQUAL model was used to examine service quality and its impact on customer satisfaction and retention in the Ghanaian shipping industry. The study used a quantitative research approach and a non-probability sampling method. The demographic data was evaluated using frequencies and percentages, while the measurement and structural model were evaluated using Partial Least Square in Smart PLS 3.2.9. Assurance and responsiveness both have a detrimental influence on customer satisfaction. Customer satisfaction has also been demonstrated to influence customer retention. Empathy, reliability, and tangibility were shown to have a beneficial impact on customer satisfaction. Customer satisfaction was unaffected by the delivery service's quality or the personnel's competence. The study adds to the body of knowledge on customer service quality, as well as customer satisfaction (CS) and customer retention (CR). Examining the many parts of the SERVQUAL model and their impact on CS and CR is critical for the establishment of an effective organization, especially in the shipping sector, as this study illustrates the main variables.