Customer Perceptions in Possession-Processing Services

This chapter investigates behavioural loyalty in the service sector. The research framework consists of eight factors influencing behavioural loyalty which are trust, satisfaction, perceived risks, loyalty reward, price, time, people, and effort. The researcher collected data from 305 hand car wash customers and analysed quantitatively. The findings confirm that price and people are critical drivers that heavily influence customer behavioural loyalty. Trust and satisfaction demonstrate a moderating impact on loyalty. Perceived risks, time and effort demonstrate a weak correlation with behavioural loyalty, while loyalty reward does not affect loyalty behaviour in this researched context. This chapter reveals that especially price and people are the crucial drivers of customer loyalty. It is highly recommended that the service company should manage pricing policy and human resource strategically. On the other hand, company's management must ensure the professionality of service staff with a helpful service mind to satisfy customers. Both constructs highly increase the degree of behavioural loyalty.