The impact of service quality in construction projects on customer satisfaction and loyalty

Abstract

The purpose of this research is to create a model that shows the relationship between customer satisfaction and eight dimensions of service quality in construction projects comprising: tangibility, reliability, responsiveness, assurance, empathy, and behavioral intentions/loyalty. These parameters are measured using the SERVQUAL as a tool to measure the performance of the contractor. It consists of 38 elements each measuring a specific dimension. Afterward, the SERVQUAL was designed as a questionnaire answered by a sample of 281 people consisting of on-site engineers, project owners, project owner representatives, and construction specialists. After a thorough analysis of our data by fitting a structural equation model representing the hypothesized relationships using SMART PLS software package, we found that the contracting company or contractor should pay closer attention to reliability, tangibility, and empathy to enhance customer satisfaction within the construction industry. Empirical results also demonstrate the impact of customer satisfaction on their loyalty.