The influence of service quality on consumer preference in petroleum retailing in Thika District

Abstract

Service quality has been underscored as a viable strategy for marketers endeavouring to differentiate their service offerings, establishing customer value and ultimately satisfying consumer needs. Service quality has been used increasingly by service and goods marketers to leverage customer loyalty, confront the challenges of competition and ultimately deliver on organization profitability. The aim of this research study was therefore to determine the indicators of service quality to consumers in petroleum retail outlets, to establish the extent to which service quality influences consumer preference in petroleum retail outlets and finally to identify any other factor that may also play a role in influencing consumer choice. The study uses a conceptual model drawn using the service quality dimension attributes of Reliability, Responsiveness, Assurance, Empathy and Tangibles. The nature of the research done was a descriptive research. A structured questionnaire was used to collect the relevant data. The response from the respondents was 100% and the data collected was used to draw meaningful conclusions and recommendations. The area of study had a total population of twenty seven (27) retail petrol stations from both the multinational and the independent dealer type. A total of 170 respondents' were drawn from the sampled stations which composed of 12 multinational stations and 5 independent dealer stations in the old Thika District. The study concludes that most of the petrol station consumers are able to identify relevant service quality indicators and that service quality indicators influences consumer choice to a great extent. It further identifies several other factors that-else influence consumer preference in the choice of petroleum retail outlets. The study recommends similar research in major cities such as Nairobi and Mombasa and also a study relating service quality to actual retail outlets profitability.