The Effect of Service Quality on Customer Satisfaction and Customer Loyalty : Evidence from Teaching Hospitals in Egypt

Purpose: The purpose of this study is to examine the moderating significant role of Customer Satisfaction (CS) on the relationship between Service Quality (SQ) and Customer Loyalty (CL). Research Design/Methodology: To assess positive SQ, refer to (SQ Questionnaire, Cronin & Taylor,1992), CS (CS Questionnaire, Athanassopoulos, et al, 2001) and CL (CL Questionnaire, Parasuraman, 1996). The data of the study was collected from 315 employees at Teaching hospitals in Egypt. Out of the 357 questionnaires that were distributed to employees at Teaching hospitals in Egypt, 315 usable questionnaires were returned, a response rate of 88%. Multiple Regression Analysis (MRA) was used to confirm the research hypotheses. Findings: Results of the study show that there are high positive correlation between SQ, CS and CL at Teaching hospitals in Egypt. SQ significantly influenced CS and CL. The finding reveals that SQ affects CL through CS. Therefore, this study has been specifically conducted to look into this phenomenon and seek empirical justification in this regard by considering SQ as the main contributory factor towards CS and CL. Practical implications: Learning the relationships between SQ, CS and CL, retailers can effectively allocate their resources and develop a rational plan to improve their SQ under specific business circumstances. In addition, by the referring of loyal customers, Teaching hospitals can attract more customers. Managers are advised to satisfy and better manage their relationships through quality product and service offerings to their customers as a competitive policy in the marketplace. Teaching hospitals are required to offer products/services that meet or surpass consumers’ expectation. The study also reveals interesting implications in SQ, CS and CL, useful to both academics and practitioners. Managers will find this research helpful in better understanding these variables and their roles on their companies’ performance. Originality/value: This research dealt with SQ in terms of its concept and dimensions, in addition to dealing with the significant role of CS in the relationship between SQ and CL at Teaching hospitals in Egypt