Service quality thesis philippines

The Effect of Service Quality on Customer Satisfaction in an Automotive After-Sales Service

Assessment of service quality has been widely utilized in after-sales service, especially in the automotive industry. The purpose of the study was to determine factors affecting customer satisfaction in an automotive after-sales service at Toyota Dasmarinas-Cavite Philippines by utilizing the SERVQUAL approach. Several SERVQUAL dimensions such as tangibles, reliability, responsiveness, assurance, and empathy were analyzed simultaneously to the customer satisfaction. Structural equation modeling (SEM) indicated that among the five SERVQUAL dimensions, reliability and empathy were found to have significant relationships to the satisfaction of customers at Toyota Dasmarinas-Cavite Philippines. Interestingly, tangibles, responsiveness, and assurance were found to have no significant relationships to satisfaction. The servicing dealer must deliver a high quality of service to meet customer expectations and achieve high customer satisfaction, which subsequently builds customer trust towards the company. With these, customer retention and loyalty can be attained by the company that can also increase the company’s profit and competitive advantage.

Keywords: service quality; after-sales service; structural equation modeling; SERVQUAL; customer satisfaction; customer loyalty service quality; after-sales service; structural equation modeling; SERVQUAL; customer satisfaction; customer loyalty

1. Introduction

Customer satisfaction is an individual perception or feelings towards the kind of service or product they received in relation to their expectation [1]. The idea is basically to satisfy customers for them to continue patronizing a business, for the business to increase their profit and to be sustainable in their line of industry [2]. Today’s competitive market situation make industries prioritize customer satisfaction, which is widely known to lead to customer retention and loyalty. Through this, businesses can increase their profit and sustain their competitive advantage within their industry.

In the competitive service industry, customers play an important role in determining the service quality that they received [2]. This service quality or widely known as SERVQUAL is considered as an important factor in interpreting customer satisfaction [3]. It has been already used by different service industries like in the mobile banking, health management, telecommunication, online education, hoteling, and tourism [3]. There are several measures that can explore the SERVQUAL in service industry and one of the most utilized is after-sales service.

After-sales service is commonly used to define services carried out to the consumer of a product during its life cycle after it has been purchased [4]. It is said that after-sales services are not only vital as a requirement on a product or by law, but also a great contributor for a business to enhance their competitiveness [5]. Examples of these after-sales services are mostly the repairs and maintenance of a product in automotive companies.

Automotive companies’ way of delivering after-sales services is through its retailer or dealers. Car producers such as Toyota, Volkswagen, BMW and many others utilize their retailers to deliver services such as vehicle periodic maintenance and other repair services [5]. Over the years, these retailer services have been thriving industries in developing countries such as the Philippines.

The Philippines ranked 9th among the countries with the highest passenger cars sold within the Asia-Pacific region. With approximately 273.4 thousand vehicles in 2019, Toyota was the leading auto-motive company in the Philippines, selling about 161.4 thousand cars in the same year [6]. Toyota Motor Philippines, or TMP, as one of the well-known car companies in the Philippines, uses the approach of using its retailer or dealer to deliver the after-sales services for Toyota vehicle products all over the Philippine network. One of these dealers is the Toyota Dasmarinas-Cavite.

Toyota Dasmarinas-Cavite or TDM is located at Dasmarinas, City in Cavite, Philippines. It is the first Toyota dealer in Cavite. The business is focused on the sales and periodic maintenance of all Toyota vehicles. It started on 24 October 2003 and was the very first addition to the Toyota Manila Bay Corporation (TMBC) [7,8]. Toyota Dasmarinas-Cavite also offers after-sales services to all Toyota customers and only aims to exceed the customer expectation and deliver high customer satisfaction.

In enhancing the customer satisfaction, SERVQUAL has been widely utilized in an after-sales service worldwide. In Malaysia, Farooq et al. [3] explored the customer satisfaction in Malaysia Airlines by utilizing the SERVQUAL approach. In Ghana, Baidoo et al. [9] also conducted a study that assessed customer satisfaction in automotive repair garages in Cape Coast metropolis. Finally, In India, Baber [10] also utilized SERVQUAL to explore the gap between the level of expectation in service quality, service perception, and its influence on customer satisfaction of Toyota customers.

Despite the availability of numerous SERVQUAL studies worldwide, there was no local study in the Philippines particularly related to the automotive after-sales service. In fact, the application of SERVQUAL is very important particularly for enhancing the automotive after-sales service such as Toyota Dasmarinas-Cavite, Philippines. By meeting customer expectation and achieving high customer satisfaction, customer retention and loyalty will be certainly possible for Toyota Dasmarinas-Cavite. With these, customer retention and loyalty can be attained by the company, which can also increase the company’s profit and competitive advantage.

The purpose of the study was to determine factors affecting customer satisfaction in an automotive after-sales service at Toyota Dasmarinas-Cavite by utilizing the SERVQUAL approach. Several SERVQUAL dimensions such as tangibles, reliability, responsiveness, assurance, and empathy were analyzed simultaneously to the customer satisfaction. This study is the first study that analysed automotive after-sales service in the Philippines. The results could be theoretical foundations for enhancing the customer satisfaction in the automotive industry worldwide.

2. Materials and Methods

2.1. Theoretical Framework

Figure 1 represents the theoretical framework showing customer’s perception on service quality in terms of the five dimensions. These dimensions consist of tangibles, reliability, responsiveness, assurance, and empathy. It was assessed with the use of SERVQUAL questionnaires to determine its relationship on customer satisfaction at Toyota Dasmarinas-Cavite Service Department.

The tangibles dimension is a form of physical means used by organizations to create and do work. Supporting equipment and the appearance of employees used to serve consumers can create an impression that is easily remembered by consumers. In addition, pleasant conditions are also felt by consumers when making transactions against services produced by the company. Thus, the tangible dimension is part of the increasing condition of employees to act on time in accordance with the wishes of consumers. The better the tangibles provided by the organization, the better the service provided to consumers will be [11]. Thus, we hypothesized the following:

The reliability dimension is the ability and commitment possessed by employees to provide services in accordance with the agreement. The decision taken is the desire to adjust performance to customer expectations, which means the timeliness and the same service to all customers [11]. In an automotive service industry, getting a service from a reliable service provider extends the life of the car and prevents its sudden breakdown [7]. Thus, we hypothesized the following:

Responsibility is the behavior of employees in the organization to act in time and convey information in accordance with consumer needs. The ability to respond to what is owned by employees will be positively assessed by consumers so that it can create capabilities when serving consumers. The motivation of employees to solve problems faced by customers when using the services has a positive effect on customer satisfaction [11]. Thus, we hypothesized the following:

Assurance is one of the core dimensions of service quality that impacts customer satisfaction [12]. Khan et al. [12] stated that the process of acquired knowledge being showcased by staff in executing their term of preferences during service delivery can be highly assuring to customers. This gives customers the confidence that the service delivery representative will perform his/her duty professionally and ethically, encouraging the likelihood of word-of-mouth activity, especially in financial institutions [12]. Thus, we hypothesized the following:

Faarooq et al. [3] provided evidence for the fact that better quality of personnel services will significantly improve customer satisfaction level. Without empathy, customers will remain dissatisfied with service quality; therefore, empathy greatly impacts customer satisfaction [12]. Thus, we hypothesized the following:

Service quality is one of the main determining factors of customer satisfaction. Customers are the key evaluator that plays an important role in measuring the quality of service or product [13]. To remain competitive, retain their existing customers, and attract new ones, accommodation providers generally improve their service quality and, consequently, their customer satisfaction as a key strategy [2]. The study of Baidoo, F. and Odum-Awuakye, G. A [6] showed that wide quality service gaps exist between the expectation of the customer and the mechanics operating the garage. Communication gaps, tools and equipment, lack of service standard and working procedures, and the quality of service was the quality service gaps that have influenced customer satisfaction levels [6]. They recommended that dealership centers endeavor to work in partnership with these wayside garages, offer training support and help them to come out with service standards and work procedures [6]. Thus, we hypothesized the following:

2.2. Participants

A total of 256 customers from Toyota Dasmarinas-Cavite were voluntary participants in the study. They were the individuals who are regularly having their vehicle serviced or those who have past experience of having their vehicle serviced at Toyota Dasmarinas-Cavite. Table 1 shows the descriptive statistics of all the respondents.

2.3. Questionnaire

A SERVQUAL-type questionnaire was utilized in this study. It is a tool used to measure service quality using both the gap concept and service quality dimensions [13]. The SERVQUAL comprised of the five service quality dimensions, which were the tangibles, reliability, responsiveness, assurance, and empathy [14,15,16,17]. Appendix A shows the sample survey questionnaire used in this study.

2.4. Analytical Tools

Structural equation modeling (SEM) was utilized to derive the relationships between SERVQUAL dimensions and customer satisfaction. It is an advanced statistical approach designed to describe causal relationships between the latent variables construct [18,19,20]. It is also widely utilized in SERVQUAL-type of study [21,22].

Figure 1 shows the study’s structural equation modeling (SEM) framework. A total of 50 customer assessment items were used under service quality with 10 items each per service quality dimensions, which are the tangibles, reliability, responsiveness, assurance, and empathy. In addition, a total of 10 items were used to assess customers based on customer satisfaction and future intention. These were the items customers answered to determine the effects of service quality on customer satisfaction in automotive after-sales service.

3. Result

Figure 2 represents the initial model of the current study. Based on Table 2, three paths were found not to be significant: tangibles-customer satisfaction, responsiveness-customer satisfaction, and assurance-customer satisfaction. Thus, a revised model was derived by eliminating these three paths.

Figure 3 represents the final model of factors affecting customer satisfaction at Toyota Dasmarinas-Cavite service operation. Furthermore, an evaluation of each construct validity and composite reliability was also conducted; this was done to ensure that each set of indicators in relation to its construct accurately represents the investigated variables. In Table 3, three measures were used to test the reliability and validity of each construct. Cronbach’s α and composite reliability (CR) measures the internal consistency of the construct and average variance extracted (AVE) measures the construct validity. All values surpass the recommended value (Cronbach’s α > 0.7, CR > 0.7, and AVE > 0.5), implying that each construct is indeed valid and reliable. This shows that among the five SERVQUAL factors, reliability and empathy were found to have a significant relationship to the satisfaction of customers at Toyota Dasmarinas-Cavite.

Table 4 shows the relationship between the two hypotheses in this study. From this table, two hypotheses were shown to be significant, which was an indication of a relatively acceptable model construct. Reliability and empathy’s p -value indicates a highly significant relationship between the two variables.

As presented in Table 5, the GFI and AGFI values were 0.897 and 0.862, respectively, indicating that the model passed the minimum cut-off of the model fit [19]. In addition, the RMSEA value was 0.039, indicating that it was lower than the suggested cut-off of 0.07. IFI, TLI, and CFI values were greater than the suggested cut-off of 0.90 [20], indicating that the hypothesized construct of the specified model reflected the observed data very well [23,24].

4. Discussion

In general, the study shows that two out of five factors were found to have a significant effect on customer satisfaction. Based on Figure 3, which represents the final SEM in the current study, empathy was found to have the most significant effect on satisfaction (β: 0.73). Several indicators are such as (1) service staffs understand customer needs (λ: 0.91), (2) service staffs give individual attention to the customer (λ: 0.91), (3) service staffs apologize when committing mistakes (λ: 0.92), (4) service staffs apologize when the customer requests were not done (λ: 0.94), (5) service staffs assist all customers in a caring manner (λ: 0.95), (6) convenient schedule for customers (λ: 0.88), (7) informing if there will be changes in promised time (λ: 0.87), (8) service staff’s willingness to help (λ: 0.93), (9) service staff’s courtesy (λ: 0.95), and (10) dealer is competent in correcting customer concerns (λ: 0.92). These results only show that customers appreciate it when they feel that they are important as a customer. They become even more satisfied if they are given prompt action and attention whenever they are availing of Toyota’s service. Customers also appreciate when the service personnel apologized ahead of time if some requests cannot be done due to some reason, and if there will be any changes from the initial promised time to prevent customer disappointment. A similar study also provides evidence for empathy’s significant influence on overall customer satisfaction. It was also stated that personal empathy positively contributes to service quality like in the airline industry [3].

Reliability was also found to have a significant effect on satisfaction (β: 0.22). Several indicators are such as (1) ease of arranging appointment schedule (λ: 0.86), (2) prioritization on appointment customers (λ: 0.86), (3) accommodation of walk-in customers (λ: 0.73), (4) promised time on service completion (λ: 0.82), (5) fairness on cost estimate prior to servicing (λ: 0.87), (6) vehicle cleanliness (λ: 0.88), (7) recommendations provided for customer’s vehicle (λ: 0.93), (8) addressing customer vehicle concerns and requests (λ: 0.90), (9) addressing customer vehicle concerns and requests (λ: 0.83), and (10) all the discussed services were done accurately (λ: 0.88). These results indicate that most customers were satisfied with the service when the promised commitment time, estimated cost, vehicle concerns, and customer requests were achieved and done accurately. To add, vehicle cleanliness also represents the quality of service especially during vehicle turnover that makes the customers even more satisfied and makes not only the service personnel but also the servicing dealer more reliable. These findings were similar to Baber (2018) who mentioned that not every customer has good automobile knowledge, which is why they value reliable service, which has an impact on satisfaction [7]. In addition, service from a reliable service provider prolongs the vehicle’s life and prevents possible breakdown.

Surprisingly, tangibles, responsiveness, and assurance were found to have no significant effects on customer satisfaction. Tangibles (β: −0.20) several indicators in this study were (1) accessibility to service entrance (λ: 0.85), (2) accessibility to the service reception area (λ: 0.82), (3) visual signs and messages for customers provided by the dealer (λ: 0.84), (4) service staff’s appearance (λ: 0.91), (5) amenities (λ: 0.76), (6) state of the art equipment in-service workshop (λ: 0.84), (7) Courtesy items installed to vehicles (λ: 0.83), (8) overall service reception appearance (λ: 0.94), (9) overall service workshop appearance (λ: 0.90), and (10) overall facility appearance (λ: 0.93). This only indicates that customers have fewer expectations when it comes to overall personnel and facility appearance. They are more focused on the quality of service delivered on their vehicle and how service personnel assists and communicate with them. A previous study revealed that tangibility does not take a significant role in providing service quality as customers do not expect to have tangibility in the after-sales service [7].

Responsiveness (β: −0.13) which was also found not significant to satisfaction includes indicators such as (1) assistance provided by guards or other staffs upon entry (λ: 0.83), (2) assistance by receptionist staff at the reception area (λ: 0.84), (3) waiting time before assisted by the Service Advisor (λ: 0.85), (4) assistance by the Service Advisor (λ: 0.89), (5) service staffs respond to all customer inquiries (λ: 0.89), (6) service advisor’s clarity of explanation of service (λ: 0.93), (7) clarity of explanation to service billing or charges (λ: 0.95), (8) service staffs promptly serve all customers (λ: 0.95), (9) service staffs courteousness (λ: 0.94), and (10) Overall service staff’s responsiveness to customers (λ: 0.94). This also shows that customers have fewer expectations when it comes to the overall responsiveness of service personnel.

Assurance was also found to have no significant effect on customer satisfaction (β: 0.11) but a high p-value of 0.251 (Table 2). Indicators under this factor were (1) maintenance reminder for customer’s upcoming service (λ: 0.85), (2) confirmation and a reminder on customer’s appointment schedule (λ: 0.86), (3) vehicle check listing or inventory system upon entry (λ: 0.83), (4) informing customers when their vehicle is being serviced (λ: 0.89), (5) allowing customers to watch their vehicle being service (λ: 0.82), (6) Service Advisor’s constant update on the vehicle status (λ: 0.90), (7) providing warranty on parts and service repairs (λ: 0.88), (8) returning of used parts to customers (λ: 0.89), (9) all customer concerns and requests were done (λ: 0.88), and (10) all services and requests done were explained and shown upon vehicle pick-up (λ: 0.90). These revealed that customers have less expectation on service personnel’s constant communication, honesty, and transparency such as returning all valuable items to the customers, informing if the vehicle is already being serviced, and allowing them to watch to show them that all the discussed inspections are properly done. In addition, explaining all the services done to the customer and giving them a work guarantee assures them of the kind of service they received from the servicing dealer but they do not see it as a contributing factor to the overall good service quality that they expect on their vehicle.

5. Conclusions

Service quality plays an important role in customer satisfaction, particularly in automotive after-sales service. The study aimed to explore the effects of service quality dimensions on customer satisfaction at Toyota Dasmarinas-Cavite. The findings revealed that there is a significant relationship between customer satisfaction and the two dimensions reliability and empathy, while tangibility, responsiveness, and assurance seemed to have less of an effect on customers.

Today, where most people rely on their vehicle as their day-to-day service, they need to make sure that their vehicle is always safe and in good running condition, which is why they still prefer having their car serviced at an authorized service center such as at Toyota Dasmarinas-Cavite [25,26]. In return, the servicing dealer must deliver a high quality of service to meet customer expectations and achieve high customer satisfaction that can later build customer trust towards the company. With these, customer retention and loyalty can be attained by the company that can also increase the company’s profit and competitive advantage.

6. Recommendations

6.1. Practical Implications

This study has several practical implications for Toyota Dasmarinas-Cavite, its employees, and the management. The findings of this study suggest that Toyota Dasmarinas-Cavite must focus more on factors such as reliability and empathy in delivering high quality of service since these are the factors most of the customers consider that affect their satisfaction.

The company must continue to provide employee pieces of training, particularly on service technicians to enhance their skills that will help the company to deliver fast and reliable service to all its customer’s vehicles. This can be done by participating in all the training conducted by Toyota Dasmarinas-Cavite (TDM) or can be by Toyota Motor Philippines (TMP). The dealer can schedule a quarterly training properly coordinated with the training facilitators at the TMP. The dealer can also perform a job rotation at the service workshop which can also be done quarterly for the technicians to enhance their skills and knowledge on other tasks. In this case, reliable service can be attained and will lead to customer assurance on their vehicle’s good running condition and performance.

The company must also continue to conduct customer care or customer handling related training especially for the service marketing personnel who handles customer directly for them to better understand the customer needs and expectations. This can be done at least once a year. The training can also serve as an annual refresher to the employees who already had this kind of training. With these, service personnel can identify and understand the customers better; what they want and how they feel. In this case, a suitable approach can be adapted towards the customer that can make them feel more comfortable and even more satisfied not only with the service they received but also with the heartfelt treatment by the service personnel.

Lastly, the management must always continue to improve the quality of service by doing “kaizen” activities, and even turning customer feedbacks and concerns into positive input to improve the overall service quality.

6.2. Limitations and Future Research

There are some limitations needed to be considered in this study. This study only utilized the traditional five factors of the SERVQUAL tool, namely tangibles, reliability, responsiveness, assurance, and empathy. There are still other factors and tools that can consider using in this type of study thus limiting the findings of this study. Future researchers can explore these factors using the latest improved tools and models that are applicable in this type of study. The study also focuses only on one after-sales service dealer. Future studies can overcome such limitations by exploring other servicing dealers and industries.

Author Contributions

Conceptualization, J.R.B. and Y.T.P.; methodology, J.R.B.; software, Y.T.P., M.N.Y., S.F.P., B.A.M. and A.A.N.P.R.; validation, Y.T.P., M.N.Y., B.A.M., and A.A.N.P.R.; formal analysis, J.R.B.; investigation, J.R.B.; resources, J.R.B.; data curation, Y.T.P.; writing—original draft preparation, J.R.B.; writing—review and editing, M.N.Y., S.F.P., B.A.M., and A.A.N.P.R.; visualization, Y.T.P.; supervision, Y.T.P., M.N.Y., and S.F.P.; project administration, Y.T.P.; funding acquisition, Y.T.P. and M.N.Y. All authors have read and agreed to the published version of the manuscript.


This research was funded by Mapúa University Directed Research for Innovation and Value Enhancement (DRIVE).

Service quality thesis philippines

Any organization in any industry has one common goal: to satisfy their customers. Customer satisfaction is a metric that measures how happy customers are with a business’s products, services, and capabilities. It’s a reflection of how a customer feels when interacting with your brand: poor customer satisfaction leads to negative reviews, while satisfied customers will help you build your brand.

So what are the factors that influence customer satisfaction? The three major factors that affect modern customer satisfaction are customer understanding, service, and technology. By tapping into these factors, you can provide positive, consistent customer experiences and create real customer loyalty.

Delivering Customer Satisfaction: Three Factors to Focus On

Who is a satisfied customer? While the definition may vary across organizations, a satisfied customer is someone who thinks your business is effective in delivering its goods or services. When asked, they will likely say good things about your product, your employees, or your brand.

The goal of every company is to nurture satisfied customers, turning them into advocates of the business.

To keep customers truly satisfied, it’s not enough to avoid disappointing them. You have to work on factors such as your customer understanding, service, and technology in order to create a customer experience they would want to turn to consistently.

Customer Understanding

Your customers have to know that your company isn’t just profiting from them. Loyal customers want to be assured that they are buying from an organization that truly cares about their best interests.

Customers prefer companies that offer multiple choices, remember their preferences, and personalize the buying experience for them.

  • Choices: Having a number of options for each product or service will go a long way. Items in different colors or flavor variants might not seem like much, but in one market study article they found that the more choices a customer has, the more they will feel they have control over the buying process. However, too many product choices may overwhelm customers and result in “choice overload”, which may result in no purchases being made at all. It’s important to hit the right balance between having too many choices and none at all.
  • Preferences: According to an article published by Forbes in 2018, online retailer Zappos is one of the most “customer-obsessed” companies around. Zappos really understands the concept of customer preferences: if you prefer to talk to someone over the phone, they can quickly accommodate you. Businesses that recall and adapt to client preferences such as payment method, delivery service, or communication channels have an excellent understanding of the market they are catering to.
  • Personalization: Personalized service means giving customers individual attention. Employees who address buyers by name and remember which product they enjoyed are some ways to incorporate personalization in the buying process. Based on an article published by Epsilon, 80% of consumers are more likely to make a purchase when a brand offers a personalized experience – so personalization efforts are a worthwhile investment.


Good service is often described as warm, friendly, and polite. It’s easy for businesses to meet these factors, but true customer satisfaction takes more than just attentive employees. Excellent customer service is also ensuring that the needs of consumers are met. Most consumers require convenient, intuitive customer service that delivers exactly what they want in a timely manner.

  • Convenient: Convenience is an essential component to making a positive experience. Timely service and ease-of-use are factors that influence where consumers go, what they buy, and who they engage with. For example, when most people think of convenience, they think of Amazon’s wide selection of products and quick delivery service. Amazon makes it much easier to skip the visits to brick-and-mortar stores and rely on their service entirely.
  • Intuitive: When problems occur, consumers rarely see product quality. Instead, they think about the poor experience surrounding it. This is why customers value companies that understand them, solve their problems, and anticipate their needs before they even think about it. Take for instance Southwest Airlines, who has a team of Proactive Customer Service employees working with 14 other airline departments to ensure safe and highly-satisfactory experiences for every customer.
  • Delivery: Part of building a customer’s trust is always meeting what they need according to their expectations. Your business should only promise what it can deliver. Facebook’s “It’s always free and will be” slogan was a promise that stuck for years. And while the social media giant has changed this slogan, users never worry that Facebook will cost money.


Technology has become a necessary aspect of operating a business in an ever-developing modern world. Social media, websites, blogs, and apps are factors that give tech-savvy businesses an edge over their competition. A blog article from Access Development mentioned that research firm Apptentive found 66% of companies that did not have a mobile app saw a decrease in customers. In order to satisfy consumers with technology, your company channels should be widely accessible, easy to navigate, and load pages quickly.

  • Accessible: Your products and services should be readily available to your customers on their preferred channel, without any barriers or difficulties. It should also be clear to your consumers that they can reach out to you on these platforms whenever they have questions or need assistance. Roughly 20% of Americans have a physical, vision, cognitive, or auditory disability, according to an article published by Perrill. Your business’s platform should not only accommodate disabled members of society, but actively engage with them through these channels.
  • Easy to navigate: Navigating your site or app should be straightforward and simple enough that all kinds of users can easily browse your store. Difficult platforms cause frustration and loss of potential clients. You can include efficient keyword search filters and other solutions that can guide buyers to identify the product they need.
  • Loads pages quickly: No one is ever happy with wait times, especially with slow websites. According to an article by Neil Patel, 47% of consumers expect web pages to load in 2 seconds or less. If your pages don’t load quickly, potential clients will end up looking for a different store. Time is money, so you should make your customer’s time worthwhile. Chatbots and other innovations can help you with maintaining real-time interactions with website and app visitors.

Why Customer Satisfaction Matters

Customer satisfaction is always a win-win situation. When your clients are happy with your products and offerings, you will be able to reap the benefits of client retention, word-of-mouth promotion, and robust brand building. Here are the reasons why customer satisfaction should be your organization’s number one priority:

1. Retention rates go up.

Customer retention refers to the strategy a business implements to retain its existing customers over a certain period of time. High retention rates indicate that your organization consistently and competently addresses the needs of your clients. The value of having loyal clients is that they are more likely to spend as much as five times more on your products and services than first-time buyers, says a blog article from The more satisfied your clients are with your service quality, the more they are likely to stay and do business with you.

2. Your business gets free word-of-mouth promotion.

Sometimes, advertisements might not be enough to get your brand’s message across. Customer satisfaction matters because clients who loved their experiences will want others to enjoy the same, so 72% of happy customers will share positive experiences with 6 or more people. Whether they post online reviews or give client testimonials, you would have advocates for your brand.

3. You build up your brand.

In a competitive environment, factors such as strong client loyalty and customer satisfaction will make your brand stand out. With excellent product offerings and a good handle on what your clients need, you can differentiate your brand from the rest. You also create future value by forming communities around your brand. Communities of business advocates co-create your brand – think Yelp or Trip Advisor, where a dedicated customer base propels the brand forward with their reviews and ratings.

If you’re still unconvinced about the role customer satisfaction plays in business, here are some statistics to consider:

  • According to an article from PwC, 1 in 3 customers will leave a brand they love after one negative experience.
  • Customer experience advisor Esteban Kolsky found that 13% of unhappy customers will share their experience with at least 15 others.
  • In another article, Kolsky also found that only 1 in 26 unhappy clients will complain. The others will just leave and not let you know why.

How CRM Can Promote a Consistent Customer Experience

Customer relationship management (CRM) systems focus on improving customer satisfaction. A CRM software automates processes for businesses to ensure smooth transactions, and collects customer data to improve their services. Here are six ways CRM can promote a consistent customer experience and customer satisfaction.

1. Personalized service and communication

Instead of forgetting clients’ names or mixing them up, CRM systems can assist you in sending personalized messages and emails to customers for a more personal interaction. CRM also takes note of customer preferences and behaviors, which allows companies to tailor their services for specific individuals.

2. Centralized customer service database

A CRM system has a central database that can be accessed by every member of your staff. This would contain all the information you have available on customer contact details, purchases, service requests, contracts, and more. Not only will this build employee satisfaction, since your service reps will have a faster time addressing concerns, but your customers will also have a smooth experience overall.

3. Improved customer understanding

Another feature of CRM systems is storing information on what your clients have bought previously, checked on your website, or inquired through social media. This helps boost satisfaction because you become more attuned to what they like and are interested in. From an improved customer understanding, you can tailor offers and services that suit their preferences.

4. Streamlined communication

Since CRM organizes and stores both qualitative and quantitative data about your clients, your service reps will know about past issues or concerns a client may have even without the client repeating it. This is especially helpful for delivering a seamless experience. Your reps can consistently communicate the message that each individual client matters greatly to your business.

5. Strengthened customer relations

Good CRM systems help businesses keep in touch with current and future customers. With regular emails that let clients know about new products, special offers, or promotional discounts, you can make sure to maintain a great client experience even after they’re out of your sales funnel. CRM software will also remind you of special occasions like client birthdays, so you can celebrate them in a meaningful way.

6. Regular feedback collection and implementation

One of the factors that ensures customer satisfaction is hearing them out on complaints, comments, or suggestions. Each client would love to know that their opinion matters to a company, and CRM systems will serve as your roadmap to address customer needs. Through CRM, you can request for feedback and relay it to the relevant departments so they can work on improving customer experiences.

Retain More Satisfied Customers With Commence CRM

If your current CRM system isn’t strengthening your relationships with customers or improving your service quality, it’s time to try Commence Cloud CRM.

As the leading CRM solution for small to midsize businesses, our award-winning software enables our clients to capture important data, automate processes, and identify the gaps in your services – leading to enhanced customer satisfaction. Book a demo with Commence CRM today.

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Top 15 thesis topics for MS in Business Administration

ms business admin thesis topics

Business Administration is a vast field with many sub fields of specialization in particular area. It incorporates many types of management positions in organizational hierarchy. It includes all aspects of business operations and related fields such as Accounting, Finance, Entrepreneurship, Marketing, HRM, etc. MS in Business Administration includes all specialization fields with the main focus on management analysis and strategy.

Top ten thesis topics for MS Business Administration:

Thesis topics should be relevant to the interests of the student. It is important to choose an interesting and unique thesis topic to stand out in market. Let’s discuss top ten thesis topics one by one:

Influence of banking sector on economic growth

The main aim to choose this topic for thesis is to study and examine the influence of the development of banking sector on country’s economy. Banks are the main body for deposit, withdrawal, investment, etc in the country. The students who have chosen accounting or banking as their field of specialization may select this topic for thesis.

Main factors that affect employee retention in call centers

Students with their interest in Human Resource Management can select this topic for thesis. This topic examines essential factors that directly or indirectly affects employee turnover at call centers. Employee retention is the prior concern of all the organizations. This thesis topic addresses the tips for retaining the employees.

Impact of TQM on service industry

In this competitive era, quality is the main bridge between the company and consumers. Service industry can be severely affected by TQM. Students selecting management as their field of specialization can choose this thesis topic.

Relationship of financial incentives to worker morale

Monetary gains are one of the main motives of workers. Higher the financial incentives, higher will be the motivation and thus, worker morale will be greater. Students with the interest in HRM, can choose this inspirational topic.

Influence of advertizing on consumer behavior

Advertising and promotion are the initial stages in the business development. Choosing this topic for thesis, can be a source of inspiration for the students of marketing.

Modern advertising is very much different from the traditional methods of advertising. Technology took over the place of newspaper and other old fashioned mediums. Meanwhile, the choices of people vary in accordance with the change in environment. The dissertation topic is related to the marketing domain. The dimensions of the advertising are as follows.

consumer behavior thesis topics for mba

Role of Packaging on Branding

The packaging of the product is of great importance in the field of business because it creates a unique image in the mind of the customer against a competitor. Moreover, to establish a successful brand, the packaging played a great role. The packaging of the product is further split into different dimensions.

Digital branding thesis topics

you can twist your topic specific to the logo as well. Logo creates a great identity for the product or family of products developed by company. The company’s message, mission, vision, values, quality, promise and story are simply and shortly defined by a logo. The colors, shapes, lines and fonts used in the logo perfectly expresses the intention of the company. Students with the specialization in marketing can pick this topic for thesis.

Impact of Digital or online marketing

In this era of technological advancements, no business can prosper without online media. Students of marketing can choose this vast topic for thesis because it involves all the major aspects necessary for huge customer exposure.

Digital marketing is the concept of advertising a product or service through the internet. Moreover, it a new marketing concept and not much new in Pakistan. Digital marketing is a wider concept, and it has various domains such that social media marketing, search engine optimization and App store optimization as well. It is one of the best topics of dissertation due to its unique nature and the significance in the future world. This particular title has a lot of significance in the marketing world, and it changes the attitude of the consumer as well. For instance, it makes the market more competitive and provides ease to the customer. The dimension of digital marketing is as follows.

digital marketing thesis topics

Risk management in banking sector

As discussed earlier, bank is the main body for financial dealing in a country. It is a main source of economic upbringing of the country. This thesis topic is suitable for the students doing specialization in banking field.

Impact of relationship marketing on Consumer behavior

The customer of nowadays is very much aware of the market and competition. By keeping in mind, the modern era organizations move towards the relationship marketing instead of just selling a product. The relationship marketing is the process of creating a long term relationship with the customer and count it as a business partner. This act of organization creates a positive impact on consumer behavior.

Impact of green Supply Chain on Organizational Performance

The supply chain includes all the process from the origin of the product to the consumption of the product. The green supply chain includes all the supply chain activities which are environmentally friendly and practice the green purchasing in cooperation with the supplier. The organizational performance is split up into three other dimensions which are, financial performance, non-financial performance and operational performance as well.

Impact of un-ethical Advertising on Society

Advertising the behavior of the society and an unethical promotional technique create a negative impact on consumer and society. The immense competition in the business word force the organizations to go for the immoral methods of advertising such as, the false information and the use of those pictures which is not suitable on moral grounds. Moreover, the promotional campaigns goes viral quickly due to the technological advancement and use of unsuitable characters damages the social system and more specifically, on the young generation of the society.

Impact of HRM on organizational growth

Humans are the main source of company wellbeing. No company can grow or prosper without this important resource. Skilled labor can make a company standout from others. Students with the interest in HRM can choose this thesis topic.

Role of Strategic Market planning in Brand Success

Strategy is the long term course of action designed to achieve a goal. Moreover, the useful marketing and business strategy plays a vital role in brand success such as differentiation strategy and pricing strategies etc. The strategic planning includes the well- defined mission, vision, external environment analysis and internal analysis. The external environment comprises of political conditions, social, conditions, economic conditions and technological conditions. On the contrary, the internal environment includes the employees, working environment. The analysis of both internal and external factors can be done through SWOT matrix. Moreover, the major role of strategic marketing Planning is to develop a smooth marketing plan to achieve a certain objectives. The dimensions of strategic Marketing planning is as follows.

Strategic Market planning thesis topics

Importance of promotional Mix in current Business Era

The current business world is highly competitive in nature and companies use creative tools of promotion to engage the customers. There is a minor difference between promotion and advertising. The advertising is non-personal tool of communication such as print media, broadcast media, interactive media and outdoor media as well. On the contrary, the promotional campaigns are personal as well such as email marketing and mobile marketing. The dimension of promotional mix are as follows.

The current business era is full of new and advance technology. Moreover, the business environment includes the global interventions which changes the promotional techniques. The dimensions of business era and environment are as follows.

Pros and cons of outsourcing trends

One person cannot do everything. Outsourcing is extremely essential to provide every facility under one roof. This thesis topic can be attractive for the students with their field of specialization in entrepreneurship.

  • An Evaluation Of Drivers For Change.
  • Analysis Of Brand Management In The Global Economy.
  • Analysis Within UK Mergers and Acquisitions.
  • Change Management in the Banking Sector.

Choosing a unique and different topic for thesis in MS can strengthen the chances of admission in doctorate programs. A relevant topic can support your application and eases the selection phase. So, it is really important to choose the topic according to your area of interest and the field of specialization.

Want to get a Free Consultation for your Thesis Topic Selection?

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