Validation of SERVQUAL Model in Relation to Customer Loyalty: Evidence from FMCGs in Pakistan

Ammar Ahmed (), Faiz Muhammad Khuwaja (), Ismail Bin Lebai Othman (), Muhammad Asif Qureshi () and Rao Akmal Ali ()
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Ammar Ahmed: College of Business, University Utara Malaysia, Sintok Malaysia
Faiz Muhammad Khuwaja: Department of Business Administration, Sukkur IBA University, Pakistan
Ismail Bin Lebai Othman: College of Business, University Utara Malaysia, Sintok Malaysia
Muhammad Asif Qureshi: College of Business, University Utara Malaysia, Sintok Malaysia
Rao Akmal Ali: College of Business, University Utara Malaysia, Sintok Malaysia

Sukkur IBA Journal of Management and Business, 2017, vol. 4, issue 2, 54-74

Abstract: The aim of this study is to make a scientific contribution to understanding the relationship between SERVQUAL model and customer loyalty. The primary objective is to examine the composite relationship between SERVQUAL model and customer loyalty from the perspective of FMCG customers. The second objective is to investigate the relationship between each dimension of the SERVQUAL model in relation to customer loyalty. Through the self-rated survey, data was collected from the 400 walk-in customers of FMCG firms. Using PLS-SEM approach, the validation of SERVQUAL model was analyzed in relation to customer loyalty. Also, the influence of each dimension of service quality on customer loyalty was examined. The findings of primary objective revealed that the SERVQUAL model is significantly and positively linked to the customer loyalty. Further, the findings of the second objective revealed that each dimension of the SERVQUAL model has a significant relationship with the customer loyalty and depicts noteworthy contribution of service quality in literature. These findings suggest that SERVQUAL model is capable of being effectively used to evaluate the service quality in the FMCG market of Pakistan. Implications and future opportunities of the study are discussed.

Keywords: SERVQUAL; Service Quality; Customer Loyalty; Fast Moving Consumer Goods; PLS-SEM. (search for similar items in EconPapers)
JEL-codes: C30 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (4)

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