The Impact of Perceived Service Quality on Customer Loyalty in IT Sector of India

This study is done to analyze the impact of perceived service quality on customer loyalty in IT sector of India. Parasuraman in his initial study carried out in 1988 determined five dimensions which became base for the measurement of perceived service quality. Perceived service quality is deemed to be independent variable while customer loyalty was treated as a dependent variable. The later could however be measured by 13 items which was previously proposed by Zeithaml (1996). Reliability, empathy, competence of staff, accessibility and tangibles are the key factors that best explains customers expectations. A SERVQUAL scale was used to measure service quality perceptions from the perspective of domestic and international customers. Data were collected in 15 outlets of IT service providers, using a self-administered questionnaire. Descriptive statistical analysis, exploratory factor analysis and reliability analysis were conducted. This study reveals that the expectation level of customers is very high towards service quality. Thus, the findings can be used as a guide for IT industry to improve the quality attributes and enhance service quality and business performance which in turn will improve the trust and loyalty of customers. More specifically, it is found that the empathy dimension is the strongest predictor of customer loyalty.