The Influence of Service Quality on Customer Retention: A Systematic Review in the Higher Education

This paper aims to identify the influence of service quality on customer retention and the factors that affect this relationship using a systematic review and meta-analysis method to use in the second stage in examining the relationship of service quality

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University of Sharjah, Sharjah, UAE Faculty of Business, University of Jordan, Amman, Jordan 3 Amman Arab University, Amman, Jordan 4 Research Institute of Sciences and Engineering, University of Sharjah, Sharjah, UAE [email protected]

Abstract. This paper aims to identify the influence of service quality on customer retention and the factors that affect this relationship using a systematic review and meta-analysis method to use in the second stage in examining the relationship of service quality on customer retention in higher educations. A systematic review method was conducted to select the studies that will assist in the current studies. This systematic review covered 32 research articles published in peer-reviewed journals from 1996 till 2018 and were reviews critically. The main findings of the study indicate that service quality-related factors is the most common factor, flowed by customer satisfaction, trust, commitment, and loyalty. Moreover, it has been noticed that the quantitative method using questionnaire was found to be the primary relied upon research methods for collecting data followed by a focus group. Furthermore, 75% of the analyzed studies recorded positive research outcomes. Most of the analyzed studies that had a positive outcome were conducted in the United Kingdom followed by the United States in terms of the context, most of the analyzed studies where done for Banks, followed by Mobile Service Industry, Retailing industry, Small firms, Steel industry, Tourism industry, Airline industry, Zoo, and Advertising service respectively. To that end, this systematic review attempts to investigate the relationship between service quality and customer retention and the factors affecting this relationship. Keywords: Systematic review  Service Quality  Customer Retention Customer satisfaction  Trust  Commitment  Loyalty



1 Introduction Service Quality (SQ) is a very important topic and considered to be a critical factor for modern service companies [1, 2] as it’s considered to be one of the strongest tools in differentiating the business style from other competitors [3, 4] and to have a competitive advantage that will enable the companies to attract new customers, as well as it’s a © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. E. Hassanien et al. (Eds.): AISI 2020, AISC 1261, pp. 404–416, 2021. https://doi.org/10.1007/978-3-030-58669-0_37

The Influence of Service Quality on Customer Retention

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very important means for customer retention (CR) [5–7]. Previous studies had advice firms to increase the level of their CR since the cost of customer acquisition is higher than the serving repeat customers [8–11], which will lead to an increase in their profits [12–14]. It has been confessed that excellence in services improve customers experience and assist in building loyal customers [15–17]. Moreover, SQ is the key antecedent to a successful customer relationship [5, 18–20]. CR and SQ are very serious and important iss