Abstract
This study explored how service quality affects customer retention in today?s online industry. As digital platforms continue to grow, many businesses struggle to keep their customers loyal, which makes good service an important factor for long-term success. A total of 150 customers answered a quantitative survey where they shared their experiences and opinions about the service quality of different online platforms. To add more depth to the findings, qualitative insights were also collected through in-depth interviews with five online entrepreneurs. These interviews provided practical views on the strategies they use to maintain customer loyalty, as well as the challenges they face in a highly competitive digital market. The demographic profile of respondents was analyzed using frequency and percentage distributions, while the extent of service quality and customer retention levels were measured using weighted means, interpretations, and rank distributions. Service quality was assessed across three dimensions: reliability, responsiveness, and empathy, to determine their influence on customer loyalty and retention. Findings revealed that higher levels of service quality significantly enhanced customer trust, satisfaction, and long-term loyalty. Inconsistent or delayed service weakened customer relationships and increased the likelihood of attrition. Both customers and entrepreneurs stressed that reliable service, timely responses, and customer-centered practices were essential in building strong, lasting relationships. The study also noted that demographic factors, such as age and employment status, shaped how customers perceived service quality, with younger customers valuing speed and convenience and older customers emphasizing reliability. Overall, the study concluded that improving service quality is a strategic, long-term commitment that strengthens customer satisfaction, builds trust, and ensures retention in an increasingly competitive digital marketplace.
Keywords
Service Quality, Customer Retention, Online Industry, Digital Platforms, Customer Loyalty
Citations
IRE Journals:
Cayubit Jozel P., Juarez, Rogelio D. Jr., Bagcus, Charles Ali A., Roxas, Paul Harvey B., Magtibay, Aleli I. "Service Quality and Customer Retention in the Online Industry of the Digital Era" Iconic Research And Engineering Journals Volume 9 Issue 5 2025 Page 1989-1996
IEEE:
Cayubit Jozel P., Juarez, Rogelio D. Jr., Bagcus, Charles Ali A., Roxas, Paul Harvey B., Magtibay, Aleli I.
"Service Quality and Customer Retention in the Online Industry of the Digital Era" Iconic Research And Engineering Journals, 9(5)
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IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
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