The Influence of Service Quality on Customer Retention: A Case of Costco

The influence of service quality on customer retention

Abstract
Service quality for the most part alludes to a customer's correlation of service expectations as it
identifies with a company's presentation. A business with a significant degree of service quality
is reasonable equipped for addressing customer needs while likewise remaining monetarily
competitive in their individual industry. There are different benefits and advantages that could be
attain by organisation by providing effective quality services to customers. There are different
companies within business environment which are working upon service quality. This helps to
increase the customer satisfaction level.

Acknowledgement
I would like to thank my esteemed supervisor – Dr. _______ for his invaluable supervision,
support and tutelage during the course of my PhD degree. My gratitude extends to the Faculty of
______ for the funding opportunity to undertake my studies at the Department of ______,
University of XXX. Additionally, I would like to express gratitude to Dr. _____ for her treasured
support which was really influential in shaping my experiment methods and critiquing my
results. I would like to thank my friends, lab mates, colleagues and research team – ___________
for a cherished time spent together in the lab, and in social settings. My appreciation also goes
out to my family and friends for their encouragement and support all through my studies.

Table of Contents
Title - The influence of service quality on customer retention........................................................1
INTRODUCTION...........................................................................................................................1
Research problem........................................................................................................................2
Rational........................................................................................................................................2
Research aims..............................................................................................................................3
Research questions.......................................................................................................................3
Literature review..............................................................................................................................4
Research methodology...................................................................................................................11
Data analysis and results................................................................................................................20
Conclusion and Limitation.............................................................................................................26
REFERENCES..............................................................................................................................29
Appendix........................................................................................................................................31

The influence of service quality on customer retention
CHAPTER 1 - INTRODUCTION
It is essential for organisation to have effective and high service quality in order to successfully
meet with the requirements of customers. service quality can be describing as the practice of
organisation for successfully meeting with the demand of customer (Alshamsi and et.al., 2020).
it is also referring as the customer comparison of service expectation as it is related to
organisational performance. It has been analysed that service quality will lead to have major and
significant impact over business practices. The quality of services is viewed as a basic
achievement factor for contemporary service organizations. This is significant for retain large
number of customer towards business as well as meeting with the demand of organisation.
Through high quality services organisation is able to develop strong relationship with customers
as well as meet with their demand (Parawansa, 2018). This dissertation is based on Costco
organisation. This is an American multinational organisation which is providing its products and
services in retail market area. Costco is performing its practices in wholesales and this is a big
box retail. This organisation is considering as one of the largest retail company which is offering
effective and efficient services to customers. Costco company was developed in year 1976 and
founder of this organisation is James Sinegal and Jeffrey Brotman. Head office of Costco
company is located in Issaquah, Washington, U.S (Chen and Liu, 2019). This research
dissertation is based on topic is to investigate the influence of service quality on customer
retention for business
Research problem
It is essential for organisation to determined the influence of service quality on business as well
as provide effective and efficient services to customers in order to meet with their demand.
Service quality for the most important part to a customer's correlation of service expectations as
it identifies with a company's presentation (Semrl and Matei, 2017). This research dissertation is
conducted with the motive of determining overall influence of service quality of customers in
order to retain them with in business. It has been analysed that there are different issues and
problems faced by organisation if it is not able to provided effective services. A business with a
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significant degree of service quality is reasonable equipped for addressing customer needs while
likewise remaining monetarily competitive in their individual industry (Loyyl and Kumar, 2018).
There are several issues faced by organisation while retaining customers with the business. It is
crucial for researcher to determining these issues and identify effective solution for business. it
has been analysed that quality is critical to satisfied customers quality is basic to fulfilling
business customers and holding their faithfulness so they keep on purchasing from respective
business for longer term. Quality products make a significant commitment to long term income
and benefit. Service quality's nearby applied just as experimental connection to customer
satisfaction transformed it into the center promoting instrument, making it the most investigated
region in services showcasing. Moreover, the aggregated examination has connected decidedly
with portability. They additionally empower you to charge and keep up with higher prices.
Service quality is significant since it decides customer satisfaction (Othman and et.al., 2019).
The main motive of determined this research problem is to analyse the impact of service quality
of business in order to attract large number of customers as well as full fill customer demand
(Gladysz, Khajeheian and Lashkari, 2018).
Rational
There are various benefits and advantages that could be accomplish by organisation by offering
high quality services to customer. This dissertation is significant in order to identify the influence
of service quality of business practices as well as its impact over retaining customers with in
business (Ruihley and et.al, 2019). It is essential for researcher to have appropriate knowledge
and understanding about the quality services for enhance organisational performance. Quality
influences the achievement or disappointment of a business. These huge organizations
concentrate on quality since they realize that the quality of the item or service that they give
eventually impacts their image. Service representatives has for some time been distinguished as
the main factor behind higher service quality. For quite a long time, studies have demonstrated
that there is a solid relationship between's the quantity of worker training hours and the level of
service quality (Rahmatulloh and Melinda, 2021). Customer satisfaction is characterized as an
estimation that decides how cheerful customers are with a company's products, services, and
abilities. it is also refer as the customer comparison of service expectation as it is related to
organisational performance. It has been analysed that service quality will lead to have major and
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significant impact over business practices. Customer satisfaction data, including reviews and
evaluations, can assist a company with deciding how to best improve or changes its products and
services. Service quality and customer satisfaction are firmly related. Service quality and
customer satisfaction are firmly related, and that an expansion in one is probably going to prompt
an ascent in the other (Venkatesan and Jacob, 2019). This dissertation is significant for
determining different aspects of quality services as well as customer retention practices that is
beneficial for business and helps in attaining desired goals.
Research aims
To investigate the influence of service quality on customer retention for business. Case
study of Costco, UK.
Research objective
 To understand about the concept of service quality and customer retention.
 To analyse different ways through which high service quality is able to retain customers
with business.
 To determine significance of effective and efficient service quality for Costco business.
Research questions
 What is the concept of service quality and customer retention?
 What are different ways through which high service quality is able to retain customers
with business.
 What is the significance of effective and efficient service quality for Costco?
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