The Influence of Service Quality on Customer Trust

Based on Special Case of “XYZ” Car Brand in Indonesia

DOI

10.2991/aebmr.k.201222.037How to use a DOI?

Keywords

Service Quality, Customer Trust, After-sales Service

Abstract

“ABC” announced the cease of “XYZ” car sales operation in Indonesia and change of business model by continuing after-sales service only. The experience of the public in Indonesia with several changes of local footprint strategies by the corporation in the last decade and the exit of another US brand “DF”, had triggered questions regarding how “ABC” would apply the new business practice which is uncommon in the history of the automobile industry in Indonesia. The author suspected, trust would be fundamental for the continuity of the “ABC” business and therefore service quality would become crucial. From this point of view, the purpose of this study is to explore how far the service quality of “ABC” organization could influence customer trust in Indonesia and to develop a business model based on the findings. The relationship and impact between service quality as an independent variable with 5 dimensions (tangibles, reliability, responsiveness, assurance and empathy) and customer trust as the dependent variable with 3 dimensions (competence, integrity and benevolence) were tested in different periods of car ownership and in different regions. This study applied quantitative analysis with data received from 352 “XYZ” owners who had experience with “XYZ” authorized workshops. Qualitative examination was conducted with selected “XYZ” owners, who were recommended by “XYZ” club and had expertise in “XYZ” after-sales service. Using a combination of linear regression and in-depth interviews with the respondents, the study found significant correlation and impact of service quality delivered by “XYZ” on trust of their customers. The results were used as a starting point to develop after-sales service strategy recommendations that emphasized the customer loyalty aspects, which from the perspective of “ABC”’s resources, is quick and feasible to execute and can be used as reference to build a more competitive business sustainability amid increasing dynamics in the automotive aftersales service industry.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nila K. Hidayat
AU  - Yosman Bustaman
AU  - Yuniadi H. Hartono
PY  - 2020
DA  - 2020/12/23
TI  - The Influence of Service Quality on Customer Trust
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2020)
PB  - Atlantis Press
SP  - 253
EP  - 261
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201222.037
DO  - 10.2991/aebmr.k.201222.037
ID  - Hidayat2020
ER  -