THE EFFECTS OF SERVICE QUALITY ON CUSTOMER RETENTION AT GHANA WATER COMPANY LIMITED, NKAWKAW

Abstract

The provision of customer service in the service industry cannot be undermined as it underpins the whole existence of service, The main focus of the study was to assess service quality and customer retention, the study was a quantitative study as it sought to ascertain the relationship between service quality and customer retention. Data was gathered from a sample of 162 respondents using a structured questionnaires. Multiple regression was used to determine the relationship that exist between the variables. The findings revealed that, there was a statistically significant relationship between assurance, empathy and tangibility and customer retention. While reliability and responsiveness had no relationship with customer retention. Again, it was identified that there is an overall relationship between quality service delivery and customer retention with an R value of 0.94 (94%). Finally, it was found that responsiveness was ranked the highest while reliability ranked the lowest in order of importance in delivering service quality. The study therefore concluded that management of the company should pay attention to the reliability and the responsiveness dimension of the staff to improve customer retention. Again, Management should in place customer retention strategies that could help increase customers retention Finally, Management should study their weakness in quality of service delivered through the ranking and improve upon them while maintaining their standards for where they are performing better to ensure overall synergy in their service delivery.