Service Quality: An Antecedent of Customer Loyalty

The study examined the effect of service quality and customer satisfaction on customer loyalty in automobile sector of Gwalior region. The questionnaires were filled by car service users of various automobile service providers in Gwalior like Prem motors, AS motors, Royal Hyundai, Abhikaran Honda etc. and by applying test like validity, reliability, factor analysis and regression it has been concluded that service quality play an eminent role in developing customer loyalty in Automobile sector. Service Quality and Customer satisfaction contributes 87.7% to Customer Loyalty. The model used for regression has good fit as indicated by F-value 354.735 which is significant at 0% level of significance indicating a high predictability of model. The relationship between Service Quality as independent and Customer Loyalty as dependent variable is indicated by standardized coefficient Beta with a value of 0.936. The significance of beta is tested using T-test indicating significant relationship between Customer Loyalty and Service Quality but insignificant in case of Customer Satisfaction. This study reflects the high degree of correlation between service quality as independent variable and customer loyalty as dependent variable.