Service Quality and its Impact on Customer Satisfaction and Loyalty: Evidence from Pharmaceutical Importers in Liberia

The pharmaceutical sector is one of the most important sectors in Liberia in that it is linked to the health sector. Pharmaceutical importers import health products into the country to help sick patients however, the sector is faced with some challenges. Even though this sector is of great importance to the country enough studies have not concentrated on them. This gap was sought to be filled with this current study. The main aim of this study examine the relationship between service quality and customer satisfaction and loyalty in the pharmaceutical industry. Customer satisfaction has been focused on by most commercial organizations and sectors with little emphasis on the health sectors. Customer satisfaction is seen to have a ripple effect on consumer loyalty. This study used the SERVQUAL model to assess this relationship because it provides the researcher with the flexibility to use the dimensions of service quality. This study employed a descriptive quantitative method with the use of Likert scale questionnaires to gather data. The diversity of the participants in terms of the diverse socio-demographic characteristics helped the data to be heterogeneous. The Cronbach alpha coefficient was used to assess the internal consistency of the items used which also showed the reliability of the instruments. To assess the hypothesis of this study between the above mentioned variables, the regression analysis was conducted. The result of the analysis indicated that, there is a strong positive relationship between service quality and overall customer satisfaction. Also, the study further proved that service quality positively influences consumer loyalty. Thus, the study further proves the assertion of the SERQUAL model which claims that the dimensions of service quality positively affect the customer’s satisfaction and consumer loyalty. Based on these conclusions the study recommended ways in which the pharmaceutical industry can improve on their service quality.  Paying attention to customers, meeting their needs timely, and being reliable are the few ways to ensure attaining high levels of service quality.