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The Impact of Service Quality on Customer Loyalty

Author: Marjorie T. Botilla, Romelyn D. Baltazar, Joan T. Batahoy, Mark R. Nambatac, Kharen Jane S. Ungab

Country: Philippines

Volume & Issue: Volume 1, Issue 1, October 2025 - December 2025

Page No.: 119-128

DOI.: https://doi.org/10.63941/DisKURSO.2025.1.1.12

Publication Date: November 13, 2025

Abstract:

This research explores how quality of service affects customer loyalty in the coffee shops located in Poblacion, Tagoloan, Misamis Oriental. As coffee shops gain more popularity and face tougher competition, customer loyalty has become a crucial factor for business survival. This study focuses on five key aspects of service quality: tangibility, reliability, responsiveness, assurance, and empathy. Using a descriptive-quantitative research design, the researchers gathered data from 344 regular customers across five selected coffee shops in the area. Respondents were selected through stratified random sampling, and data were collected using a well-organized questionnaire. Results were examined using weighted mean, Pearson correlation, and multiple regression analysis. The findings revealed that all five dimensions of service quality were rated as highly influential by customers. Among them, empathy had the strongest impact on customer loyalty, followed by assurance. This means that customers are more likely to remain loyal when they feel genuinely cared for and when they trust the individuals providing them with service. Although tangibility was rated the lowest among the five dimensions, it still contributed positively to the customer experience. The study also found a strong positive correlation between overall service quality and customer loyalty. This proves that when service is consistently excellent, customer loyalty is strengthened. The researchers recommend that coffee shop owners and employees focus on improving customer interactions, especially through empathetic and trustworthy service. Personalized service, continuous staff training, and the implementation of loyalty programs may help increase customer retention and business growth. Future research may investigate additional factors that could impact consumer behavior, such as pricing, convenience, or product quality.

Keywords:

Service Quality; Customer Retention; Empathy; Coffee Shops; Customer Satisfaction