Improving service quality at automotive dealerships

The highly competitive landscape of the automotive industry places increasing pressure on automotive dealerships to continually improve the quality of services rendered to customers. Understanding customer expectations and customer perceptions is key to making improvements in areas that matter most to the customer. It is against this background that this study was conducted. The aim of this research was to measure service quality at automotive dealerships. The literature review focused on the gaps model which resulted in the SERVQUAL measuring tool. The SERVQUAL instrument is supported by literature as the optimal instrument for measuring service quality. The 22-item questionnaire was adapted and used to solicit feedback from customers on their expectations and perceptions of the service rendered by dealerships across the five SERVQUAL dimensions; namely, tangibles, reliability, responsiveness, empathy and assurance. Gaps between customer expectations and perceptions were calculated as an indication of areas where customer expectations were met, unmet or exceeded. In order to identify priorities for improvement, each of the SERVQUAL dimensions was ranked in order of importance by the customer. Convenience sampling was used as a sampling technique. A total of 142 Volkswagen owners who had their vehicles serviced or repaired at a franchised dealership were surveyed. The reliability of the SERVQUAL questionnaire was tested by calculating the Cronbach’s Alpha coefficient for each of the five dimensions. The calculation yielded an average coefficient of 0.83, indicating a high reliability of the measuring instrument and the data collected. The overall gap score of -0.7 indicates that customer expectations exceeded customer perceptions. The lowest customer perceptions and the largest gaps were reported in the reliability and responsiveness dimensions. These two dimensions were also rated as the most important dimensions customers use for evaluating service quality. This formed the basis for recommending that dealership employees and management focus most of their efforts on improving the reliability and responsiveness dimensions