SERVICE QUALITY TOWARDS CUSTOMER SATISFACTION OF MOTOR VEHICLE RETAILING BUSINESSES IN CALOOCAN

Abstract

Motorcycles serve as a fast, affordable, and convenient mode of transportation, particularly in Caloocan City, which was declared the “Motorcycle Capital of the Philippines” in 2017. Due to increasing demand, motorcycle retail businesses have rapidly expanded in the area. However, many still face challenges such as service delays, understaffing, and inconsistent service quality, leading to customer dissatisfaction. This study assesses service quality and customer satisfaction in motorcycle retail businesses in Caloocan by utilizing the SERVQUAL model (Reliability, Assurance, Tangibility, Empathy, Responsiveness) alongside the 4Ps of marketing (Product, Price, Place, Promotion). It aims to evaluate customer perceptions, determine the relationship between service quality and customer satisfaction, identify service-related issues, and propose practical recommendations for improvement. This study employs a descriptive-correlational design to examine the relationship between service quality and customer satisfaction in selected motorcycle retail shops in Caloocan, namely Motortrade, Yamaha, Honda, and Transcycle. A total of 80 customers, with 20 respondents per branch, voluntarily participated and assessed their service experience using a validated questionnaire. The purpose of the study was personally explained to each respondent prior to data collection. Findings based on the SERVQUAL model indicated that customers were generally satisfied with all five dimensions of service quality. The highest satisfaction scores were recorded in assurance (mean = 4.31), tangibility (mean = 4.27), and empathy (mean = 4.21). In terms of the 4Ps, high satisfaction was also observed in product (mean = 4.34), price (mean = 4.42), and promotion (mean = 4.35). However, the most common concern was delays in document processing, particularly with the release of official receipts, certificates of registration, and license plates (mean = 2.71). Issues related to service maintenance, such as back jobs, were reported less frequently. Statistical analysis showed a moderate positive correlation (r = 0.3621) between service quality and customer satisfaction, confirming the presence of a significant relationship. Although customers expressed overall satisfaction with the services offered, the study identified responsiveness and document processing as areas requiring improvement. To address these concerns, the study recommends the reorganization of branch operations into specialized departments, the hiring of additional staff, enhancement of document management systems, and continuous employee training. These strategies aim to improve service quality, increase customer satisfaction, and foster stronger brand loyalty.