Effect of Sales Service Quality on Customer Retention: A Case Study of PHC Motors Accra, Ghana

Abstract

Retaining customers over a long term has proven to be more beneficial than always focusing on attracting new ones. It is however interesting to note that marketing literature is full of studies of service quality across a wide scope of services sectors including, the health sector, public transport, telecommunication and the banking sector. The automobile services industry however has few studies on service quality and its relationship with customer retention. The study's main objective was to assess the effect of sales service quality on customer retention in the automobile industry in Ghana. Research design was descriptive; Data sources comprised both primary and secondary. Questionnaires were administered to the customers and staff of PHC Motors Ghana Limited, in Accra. The population of the study was automobile customers and staff of PHC Motors Ghana Limited in Accra. Purposive and simple random sampling techniques were used to select the sample size, which consisted of twenty (20) management staff and sixty-six (66) automobile customers. Finding revealed that, PHC motors sales service quality inspired trust and confidence. Customers were satisfied with the service quality of the company, but objected to the view that service quality is the reason why they patronize the company's products. The study, therefore, recommended that organizations must also identify other factors in addition to sales service quality that also contribute to customer retention.