MEMORY

PLAN………………………………………………………………....1

DEDICATION………………………………………………………………
……..3

ACKNOWLEDGEMENT……………………………………………………
….4

INTRODUCTION……………………………………………………………
…...5

1. Importance of the Study in the Current Context…………………..6

2. Research
Objectives…………………………………………………………...6

PART1: THEORETICAL AND CONCEPTUAL FRAMEWORK….7

I. Service
Quality………………………………………………………………...7

1. Definition of Service
Quality………………………………………………...7
2. Dimensions of Service Quality Influencing Customer Loyalty...8
1.
Reliability………………………………………………………………………
….8
2.
Responsiveness………………………………………………………………
…8
3.
Assurance………………………………………………………………………
….9
4.
Tangibles………………………………………………………………………
…...9
5.
Empathy………………………………………………………………………
……9

II. Customer
Loyalty……………………………………………………………10
1
1. Definition of Customer
Loyalty…………………………………………….10
2. Theories of Customer Loyalty: Commitment Theory……………..11
3. Equity
Theory……………………………………………………………………..12
4. Correlation between Service Quality and Customer Loyalty….13

PART 2: CASE STUDY OF TOP AUTO

…………………………………...15

III. Case Study: Top

Auto……………………………………………………...15

1. Presentation of Top
Auto………………………………………………….15
2. Research
Methodology……………………………………………………..16

IV. Interview
Results…………………………………………………………….16

V.
Recommendations…………………………………………………………….
16

CONCLUSION………………………………………………………………
…………18

2
DEDICATION
To
My father, Ehui Amon
My Mother, ( fire ) Souanga N’guessan Christine

3
ACKNOWLEDGEMENTS

We want to express our sincere thanks to everyone who contributed to the

writing of this thesis. In particular, we warmly thank Mrs. Mary, our
supervisor, for her valuable advice that made this work possible. We are very
grateful for her invaluable help and the time she dedicated to us. We also
thank Mr. Alain Edorh, Director of Studies at HEC Abidjan University, for
establishing an excellent training program. Our friends and family also
deserve our thanks for their support and guidance. We express our gratitude
to all the people we interviewed who kindly answered our questions. We
would like to thank everyone involved in this program, as well as our parents,
friends, and all those who have contributed, directly or indirectly, to our
education. Finally, we express our appreciation to all those who helped us
successfully complete this thesis.

4
INTRODUCTION

Hello, my name is Ehui Bénédicte, a second-year master's student in the

Management and Business Strategy program. I would like to share my
educational journey with you. After obtaining my high school diploma, I
decided to continue my studies at HEC Abidjan University. I started with a
core curriculum, a rewarding period during which I learned many essential
subjects. I then advanced to my second year, specializing in marketing. This
specialization provided me with solid knowledge in the field. Subsequently, I
continued to the third year, earning my professional bachelor's degree in
marketing as well as a diploma from the European Federation of Schools
(FEDE) in marketing. After obtaining my bachelor's degree, I chose to
specialize in management and business strategy. This new focus has been
very beneficial ; I greatly appreciated this field as it provided me with
additional knowledge, and I benefited from the teaching of competent
5
professors. Currently, I am in my second year of the master's program in
Management and Business Strategy, preparing to obtain my professional
master's degree in this discipline, along with my FEDE diploma. For the
FEDE diploma, I have to write a dissertation in English, and I have taken an
interest in service quality. Service quality plays a crucial role in the
automotive sector, where customer expectations for products and services are
high. In this context, Top Auto, a renowned company specializing in the sale
and maintenance of vehicles in Côte d'Ivoire, seeks to distinguish itself
through the excellence of its services and products. Service quality
encompasses various aspects, such as staff reception, technician competence,
repair speed, and the quality of advice given, all of which contribute to the
overall customer experience. Understanding how these service elements
influence customer loyalty is essential for a company like Top Auto, which
aims to attract new customers while retaining its existing clientele. Indeed,
customer loyalty depends not only on product quality but also on the overall
experience during the purchase and use of the company's services. Good
service quality can thus transform occasional customers into regular and loyal
ones, which is a key factor for the success and sustainability of Top Auto in
the competitive automotive market in Côte d'Ivoire. In this regard, we ask the
following question: What is the influence of service quality on the customer
loyalty of Top Auto?

1.Importance of the Study in the Current Context

Understanding how different aspects of service quality influence customer

loyalty is crucial for a company like Top Auto. For example, exceptional
service quality can turn occasional customers into regular and loyal ones,
thereby providing a solid foundation for the company's growth and
sustainability. Evaluating service quality can also help Top Auto identify its
strengths and weaknesses, enabling it to optimize its business and customer
retention strategies. By identifying areas where service quality is highest, Top
Auto can strengthen these aspects to further retain customers and attract new
ones. In a competitive market where customers have many options, service
quality becomes a crucial differentiation factor for Top Auto. Therefore, a
thorough analysis of the impact of service quality on customer loyalty can
help the company stay competitive and maintain its market position.

2.Research Objectives

The main objective of this study is to analyze the influence of service quality
on customer loyalty at Top Auto. Secondary objectives include identifying
the specific dimensions of service quality that influence customer loyalty, as
6
well as providing practical recommendations for improving these aspects and
enhancing customer loyalty for the company.

PART1: THEORETICAL AND CONCEPTUAL FRAMEWORK

I. Service Quality

1. Definition of Service Quality

Service quality refers to the extent to which the services offered by a

company meet or exceed the expectations and needs of customers. It
encompasses a set of tangible and intangible elements that contribute to the
overall customer experience when interacting with a company or
organization. This concept has been widely studied and defined by several
management and marketing theorists. According to Guy Laudoyer, "the
quality of a product or service consists of all its characteristics and aspects
appreciated by the customer and which meet their requirements, at a given
price." Similarly, Lendrevie and Lévy define service quality based on its
objective characteristics and its ability to perform its functions perfectly. The
characteristics considered to determine service quality vary depending on the
service offered. For example, in the hospitality industry, it includes room
cleanliness, quality of reception, and quality of food services. The concept of
service quality also applies to the automotive sector, encompassing vehicle
reliability, speed, and quality of after-sales service. Service quality is
standardized by ISO 9000 and numerous sector-specific standards (e.g., water
services, IT services), and it is subject to quality certification. In practice,
7
service quality can manifest in different ways, depending on the industry and
specific customer expectations. For example, in the restaurant sector, it can be
evaluated based on waiting time, staff courtesy, cleanliness of facilities, and
quality of meals served. Similarly, in the financial services sector, it can be
measured by the ease of use of online services, availability of advisors, and
transaction speed.
Service quality comprises five main dimensions:
- Reliability: The ability to provide the promised service accurately and
dependably.
- Assurance: The knowledge and courtesy of employees, and their ability to
inspire trust and confidence.
- Tangibles: The appearance of physical facilities, equipment, personnel, and
communication materials.
- Empathy: The individualized attention the company provides to its
customers.
- Responsiveness: The willingness to help customers and provide prompt
service.
In summary, service quality is a complex and multidimensional concept that
encompasses various aspects of the customer experience. It relies on a
company's ability to effectively meet the needs and expectations of its
customers by providing reliable, responsive, and personalized services.

2. Dimensions of Service Quality Influencing Customer Loyalty

2.1. Reliability

Reliability is the ability of equipment or a process to perform a function

according to the customer's expectations, under given measurement
conditions, and over a specified period. It is crucial in any business
relationship and forms the foundation of any successful company. The
importance of reliability in perceived value cannot be overstated. When
customers perceive a company as trustworthy, they are more likely to do
business with it. Reliability can be defined as the ability to deliver what is
promised, to be honest and transparent, and to act with integrity. For instance,
in the automotive sector, a repair shop that promises to complete a repair
within a day must adhere to this deadline every time. If Top Auto promises its
customers that their vehicle will be ready at a certain time, it is crucial that
this promise is kept. Customers rely on the accuracy of the announced
deadlines and the quality of the repairs performed. A concrete example could
be a customer who leaves their car for general maintenance and is guaranteed
that all necessary checks and repairs will be completed within 24 hours. If
Top Auto meets this commitment and delivers the car on time, the customer
8
is more likely to return for future services and recommend the shop to others.
Conversely, if the shop fails to meet deadlines or provides poor-quality
service, customer trust will be eroded, reducing long-term loyalty.

2.2. Responsiveness

Responsiveness refers to the willingness and ability of the company to assist

customers quickly and efficiently. In the automotive sector, this includes the
speed with which Top Auto responds to inquiries, complaints, or emergency
service needs. A responsive company shows that it values its customers' time
and concerns, which is crucial for developing loyalty. For example, a
customer might call Top Auto in an emergency for a dead battery. If the
company responds immediately and sends rapid assistance to replace or
recharge the battery, the customer will perceive Top Auto as a reliable and
efficient provider. This quick service creates a positive impression and
strengthens customer trust in the company.

2.3. Assurance

Assurance involves the competence and courtesy of employees as well as

their ability to inspire trust and confidence. For a company like Top Auto,
this means that technicians and advisors must possess strong technical
expertise and display professionalism. For instance, a well-trained and
courteous customer advisor can reassure a concerned customer about the need
for an expensive repair by clearly explaining the process and benefits.
Assurance enhances the perception of reliability and professionalism of the
company, which is essential for fostering customer loyalty. The ability to
provide clear explanations and expertly address customer questions shows
that the company is competent and trustworthy.

2.4. Tangibles

Tangibles represent the physical elements of the service delivery, including

facilities, equipment, and staff appearance. For Top Auto, this could include
the cleanliness and organization of repair shops, the modernity of the
equipment used, and the professional appearance of employees. For example,
a well-maintained service center equipped with modern technologies can
reassure customers about the quality of services provided. Tangible elements
are often the first indicators of perceived quality by customers and can greatly
influence their decision to return. If customers see a clean, well-organized
shop with high-tech tools and well-dressed staff, they are more likely to
believe their vehicles will be well cared for.
9
2.5. Empathy

Empathy refers to the company's ability to provide individualized attention to

its customers, showing genuine understanding and concern for their specific
needs. At Top Auto, this could be demonstrated through personalized
services, attentive listening to customer concerns, and a willingness to find
tailored solutions. For example, an advisor who takes the time to understand a
customer's preferences regarding their vehicle's features and offers
personalized options shows empathy. This human and personalized aspect of
service can create a strong emotional bond between the customer and the
company, promoting long-term loyalty. By offering tailored services and
considering customer feedback, Top Auto shows that it genuinely cares about
its customers and their individual needs. These dimensions of service quality
are interconnected and collectively contribute to overall customer satisfaction.
For a company like Top Auto, excelling in these areas can not only attract
new customers but also retain existing ones, creating a solid foundation for
sustainable growth.

II. Customer Loyalty

1. Definition of Customer Loyalty

Customer loyalty is a complex notion, subject to multiple definitions and

interpretations. Fundamentally, it refers to the behavior of a customer
repeatedly purchasing a product or service from the same brand or store. This
loyalty can result from various situations: it may be passive, stemming from
the customer's inaction due to high switching costs or automatic contract
renewal, or it may be the result of an active and thoughtful choice in favor of
the brand. Academically, loyalty generally involves brand attachment and a
conscious or unconscious choice process resulting from previously formed
attitudes towards the brand. Thus, loyalty is often the result of brand
preference, where the customer shows a tendency to consistently and
regularly choose the brand. Customer loyalty can take different forms, such
as sought loyalty, induced loyalty, multiple loyalty, exclusive loyalty, passive
loyalty, behavioral loyalty, attitudinal loyalty, etc. These various nuances
describe the different ways customers can interact and engage with a brand
over time. The relationship between customer satisfaction and loyalty is
complex. While satisfaction is an important element of loyalty, there are
cases of dissatisfied customers who remain loyal to a brand, as well as
satisfied customers who do not remain loyal and may switch brands for
various reasons. Olivier (1997) defines loyalty as "a deeply held commitment
10
to rebuy or repatronize a preferred product or service consistently in the
future, despite situational influences and marketing efforts having the
potential to cause switching behavior." This definition highlights the
voluntary and thoughtful aspect of loyalty, where the customer actively
chooses to remain loyal to a brand despite external influences. Jean-Marc
Lehu emphasizes that loyalty is simply "the observation of a series of
repeated purchases in favor of the same brand." This perspective highlights
the behavioral aspect of loyalty, where it manifests through repeated purchase
acts over time. Lendrevie, Lévy, and Lindon define customer loyalty as "a
lasting, preferential, or exclusive attachment to a company or brand." This
definition underscores the emotional aspect of loyalty, where the customer
develops an affective bond with the brand over time, reinforcing their
attachment and propensity to remain loyal.

By integrating these different perspectives, we can better understand the

complexity and richness of the concept of customer loyalty and its
importance for companies in managing their customer relationships.

2. The Theory of Commitment

Basic Principle

The theory of commitment suggests that our actions influence our thoughts,
rather than the other way around. This means that it's not because we think or
feel something that we will necessarily act accordingly. Instead, it's by
performing an action that we eventually align our thoughts and feelings with
that action.

Theoretical Example Applied to Customer Loyalty Context

To understand this theory in the context of customer loyalty, let's take the
example of a fictional company, which we'll call "Top Auto."

First Action: A customer decides to take his car to Top Auto for a minor
repair. Initially, he has no particular opinion about Top Auto.

Positive Experience: During his visit, the customer receives high-quality

service: the repair is done quickly, the staff is courteous, and the price is
reasonable. This first positive experience is crucial.

Second Action: Later, the customer needs an oil change for his car.
Remembering his positive experience, he decides to return to Top Auto. His
11
decision is motivated by his previous experience rather than an initial
conviction of the quality of the company.

Reinforcement: With each visit to Top Auto, the customer continues to

receive excellent service. Each return to Top Auto reinforces his commitment
to the company.

Alignment of Thoughts: After several positive visits, the customer begins to

think that Top Auto is a reliable and high-quality garage. His repeated actions
(choosing to return to Top Auto) influence his thoughts and feelings. Instead
of thinking first that Top Auto is good and then going there, he goes there
first, has good experiences, and then begins to think positively about the
garage. In conclusion, the theory of commitment shows that customers'
repeated actions (such as regularly returning to a company) eventually
influence their positive thoughts and feelings towards the company. By
creating positive experiences and encouraging returns, a company can
strengthen customer loyalty.

3. The Equity Theory

Basic Principle

The equity theory posits that individuals seek to maintain a balance between
what they give and what they receive in a relationship. When they perceive an
imbalance between their contributions and rewards compared to others, they
feel a sense of injustice that can influence their behavior. Theoretical
Example Applied to Customer Loyalty Context

Let's take the example of "Top Auto" to illustrate the equity theory in the
context of customer loyalty.

Contributions and Rewards: Top Auto's customers contribute by spending

money on automotive services. In return, they expect to receive quality
service, reliable repairs, and good value for money.

Perception of Equity: If a customer perceives that his contributions (money

spent, brand loyalty) are not fairly rewarded by Top Auto (poor service, high
prices), he will feel a sense of injustice.

Reaction to Injustice: Faced with this perceived imbalance, the customer can
react in various ways. He may decide to no longer visit Top Auto, seek
alternatives, or express his dissatisfaction through negative reviews.
12
Maintaining Balance: To maintain customer loyalty, Top Auto must ensure
that customers' contributions are fairly rewarded with quality service, fair
prices, and excellent customer service. In conclusion, the equity theory
underscores the importance for businesses to maintain a perceived balance
between customers' contributions and the rewards they receive in return. By
establishing equitable relationships, listening to customer concerns, and
maintaining transparency, a company can foster customer loyalty.

4. Correlation between Service Quality and Customer Loyalty

The relationship between service quality and customer loyalty is a central

topic in marketing and business management. Understanding this correlation
allows companies to develop effective strategies to retain their customers.
Service quality refers to a company's ability to consistently meet the
expectations and needs of its customers. It encompasses various aspects such
as reliability, responsiveness, assurance, empathy, and tangible elements
(physical environment, facilities, etc.). High service quality creates a positive
customer experience, essential for building a long-term relationship with
customers. Customer loyalty is defined by the repeated purchases or services
from the same company by a customer. It can be measured by various
indicators such as repurchase rate, duration of customer relationship, and
word-of-mouth recommendation. Customer loyalty is crucial as it reduces
marketing costs, increases revenue per customer, and creates brand advocates.
There is a positive and significant correlation between the perceived service
quality by customers and their loyalty. Here's how this relationship manifests:

- Customer satisfaction is often a direct predictor of loyalty. A satisfied

customer is more likely to return and remain loyal to the company.
- Service quality contributes to the perception of value. Customers who
believe they get excellent value for money are more likely to remain loyal.
- Consistent and high service quality builds trust. Customers who trust a
company are more loyal because they are reassured by the reliability and
competence of the company.
- High service quality can also reduce perceived switching costs for
customers. When customers are satisfied with the service, they are less likely
to seek alternatives, even if those alternatives offer slightly lower prices. For
Top Auto, maintaining superior service quality could mean that customers
don't even consider the possibility of changing garages. The correlation
between service quality and customer loyalty is robust. By consistently
providing high-quality service, a company like Top Auto can not only satisfy
its customers but also turn them into loyal customers. This requires a constant
13
commitment to service excellence, listening to customer needs, and
continuous process improvement. Ultimately, investing in service quality is a
powerful strategic lever to ensure long-term customer loyalty and satisfaction.

PART 2 : CASE STUDY OF TOP AUTO

III. Case Study: Top Auto

14
1. Presentation of Top Auto

History and Foundation

TOP AUTO, founded in 2006 by Mr. Ehui Enoh, is a dynamic company in
the automotive sector in Côte d'Ivoire. Graduated in Mechanical Engineering
and holding a MASTER-QUALITY degree, Mr. Enoh used his professional
experiences to create an innovative and excellence-driven structure, with the
mission to train a skilled workforce and offer superior quality services.
Main Activities:
- General Mechanics: Maintenance, inspection, and mechanical repair of
vehicles, including engine repair, suspension replacement, brake and steering
maintenance, gearbox repair, parts replacement, and comprehensive
diagnostics.
- Sale of Spare Parts: Offers a range of high-quality parts sourced from
reputable dealers and European partners like BLUE PRINT and FEBI.
- Sale and Rental of Vehicles: Wide selection of new and used vehicles in
collaboration with dealerships.
- Additional Services: Automotive electrical systems, air conditioning,
bodywork and painting, quick services, fleet management, auto insurance,
and technical inspection preparation.
Equipment and Vision:
TOP AUTO uses advanced technologies for efficient and rapid work on all
types of vehicles, aiming to provide quality service at the best cost and in the
shortest time.
Achievements and Partnerships:
Opening of new sites, obtaining distribution licenses, loyalty of major
companies, and distinctions such as the best MAZDA vehicle seller award in
2019.
Mobile Garage:
TOP AUTO’s mobile service allows for checks, maintenance, and repairs at
home or workplace, including vehicle pickup and delivery, expiry reminders,
free advice, and a national towing service. TOP AUTO is committed to
providing an exceptional customer experience, combining quality,
responsiveness, and professionalism.

2. Research Methodology

For this study, a qualitative approach was chosen to delve deep into
customers' experiences and perceptions regarding the services offered by Top
Auto. By using semi-structured individual interviews, an environment
15
conducive to open and candid discussion was created, allowing participants to
freely share their opinions and impressions. The interview guide questions
were designed to cover various aspects of the customer experience, from the
initial interaction with the company to potential brand loyalty. Through this
methodology, the aim was to capture nuances and details that can often
escape a more quantitative approach, thus providing a rich and
comprehensive perspective on the relationship between Top Auto and its
customers. Here are the questions included in the interview guide:

1. Are you a customer of Top Auto?

2. How long have you been a customer at Top Auto and what prompted you
to choose this company?
3. What do you think about the services provided by Top Auto?
4. Which specific aspect of Top Auto's services has impressed you the most?

IV. Interview Results

All the interviewed customers are clients of Top Auto.

The majority of customers have been loyal to Top Auto for a long time, citing
service reliability and staff professionalism as the main reasons.
A large portion of customers rated the quality of services as excellent or
good. The most appreciated aspects include the speed of service, the
competence of the technicians, and the friendliness of the staff.

V. Recommendations

Due to the inability to conduct a quantitative study, given the lack of access
to the company's database, the conclusions were based on interviews
conducted with 15 Top Auto customers. All interviewed customers expressed
a positive appreciation of Top Auto's services, suggesting general satisfaction
and strong loyalty. The recommendations for Top Auto are to continue on
this path, given that customers are satisfied with the quality of services, it is
recommended to maintain the current level of service. Additionally,
continuously improve, to achieve an even higher level of satisfaction, Top
Auto should strive to constantly improve its services.

16
CONCLUSION

The main objective of this study was to analyze the influence of service
quality on customer loyalty. In the theoretical part, the relationship between
service quality and customer loyalty, as well as the dimensions of service
quality and customer loyalty theories, were examined. In the case study part,
semi-structured individual interviews were conducted with 15 Top Auto
customers. The results revealed a high level of customer satisfaction with the
company's services. It is recommended that Top Auto maintain its current
level of service and continually strive for improvement to ensure optimal
17
customer satisfaction. However, it should be noted that this study has certain
limitations, including the limited number of participants and the exclusive
focus on existing Top Auto customers.

18