ASSESSING THE IMPACT OF SERVICE QUALITY ON CUSTOMER LOYALTY: A CASE STUDY OF THE CELLULAR INDUSTRY OF GHANA

Abstract

The study investigated the relationship between service quality and customer loyalty in the Cellular industry of Ghana. The research was conducted after the introduction of the Mobile Number Portability (MNP) system. The SERVQUAL model was used to measure relationship between service quality and customer loyalty among cellular service providers with customer satisfaction mediating these variables. Survey questionnaire was used to collect 311 data from mobile users who are subscribers of 5 of the major cellular firms in Accra Metropolis of Ghana. The data was analysed using correlation and multiple regression analysis. The findings revealed that service quality variables such as Tangibles, Responsiveness, Reliability, Assurance and Empathy have a positive influence on customer loyalty through customer satisfaction. The result further revealed customer satisfaction has a direct relationship with customer loyalty. The study recommends that mobile operators endeavour to improve the quality of mobile services offered to clients.