| Abstract: | Customer retention has been chosen by many businesses since it generates greater profit by
lowering the expense of obtaining new consumers. Furthermore, customer retention is critical
for building customer base through favorable word of mouth. This means that client retention
extends beyond simply delighting and retaining existing consumers
This research aimed at finding out the effect of service Quality on Customer Retention at
Tolomat Trading PLC. The target population of this research are the customers of Tolomart
here in Addis Ababa, Ethiopia. In order to conduct the research conveniences sampling
techniques which are a type of non-probability sampling techniques was used. The primary data
were collected from customers of the company by a means of questionnaire. A total of 140
questionnaires were administered and 120 questionnaires were returned. Out of these, 92 were
usable for the analysis. Descriptive statistics were used to describe the variables using
percentage and inferential statistics were employed to reveal to the relationship between the
elements of service quality and customer retention. The study found the independent variables,
i.e. reliability, responsiveness, empathy, assurance and tangibility positively and significantly
are related to the customer retention, the dependent variable are taken using purposive
sampling technique and methodologies like correlation, multiple regression and ANOVA are
used in the research. The result of correlation analysis shows moderate and high relationships
between tangibility, assurance, responsiveness, reliability, empathy and customer retention. |
