The effects of service quality and customer satisfaction on customer loyalty in steel company services

Abstract

Steel industry is an important enterprise in Taiwan. Owing to the keen competition, how to maintaining old customers becomes a crucial issue which the industrials need to confront with. Many research works in service industry found a relationship between profit attainments and the concepts of service quality, customer satisfaction and customer loyalty. However, there was seldom studies conduct to steel industry. The purpose of this study was exploring the casual relationships between service quality, customer satisfaction and customer loyalty in steel industry services. A total of 218 subjects were voluntarily participated this research. Questionnaire was used for Data collection. LISREL method was used for causal relationship model testing. The LISREL model verification results showed that the ξ 2 was 109.46 (df = 57) and the overall goodness-of-fit indices (GFI) was 0.930, which indicated an empirical good fit with the model. The analyses show that the service quality, and customer satisfaction of steel industry service has a direct relation with customer loyalty, and the service quality could has an indirect effect on customer loyalty through customer satisfaction. This finding would be a reference for management in the steel industry. © 2011 IEEE.