Service quality and customer loyalty in Ghana’s auto detailing service industry

Abstract

Purpose The study investigates service quality in developing customer loyalty in Ghana’s auto detailing industry. The study also examines how customer satisfaction and service innovation indirectly and positively influence the relationship between service quality and customer loyalty. Design/methodology/approach A sample of 318 respondents, drawn from a convenience sampling method, was utilised for the analysis. Partial Least Squares (PLS) of Structural Equation Modelling (SEM) technique was used to analyse the data to obtain results. Findings The study established a significant positive relationship between the tangibility dimension of service quality and customer loyalty; however, this influence is indirect through the mediation effect of customer satisfaction between service innovation and customer loyalty. Practical implications The study provides a useful guide for policy formulation and implementation by managers of auto detailing services to enhance customer loyalty as a basis of sustainable business performance. Originality/value The study is the first of its kind to investigate the role of service quality and customer loyalty being mediated by service innovation and customer satisfaction in the context of Ghana’s auto detailing industry.