Advisers

Vinalyn L. Sarzata, MBA

Discipline

Business administration

Abstract

Service quality has become a vital trend in the laundry industry as it directly impacts customer loyalty and overall business profitability. Citywash Laundry Service, a pioneer in the Philippines since 2001, modernized its operations with computerized systems in 2018. Despite this technological advancements, the business faces operational problems including machine malfunctions, utility interruptions, and lack of storage. These issues threaten revenue and brand reputation, to address these challenges, the researchers proposed an Action Plan focused on enhancing business operations. This study utilized a quantitative descriptive design to evaluate the relationship between service quality and customer satisfaction. Adopting the SERVQUAL model, the researchers measured five key dimensions: reliability, responsiveness, tangibles, assurance, and empathy. Through purposive sampling, 30 loyal customers from the King Henry Street branch provided data. Statistical tools—including frequency distribution, weighted mean, Mann-Whitney U, Kruskal–Wallis, and Pearson r —were employed to analyze demographic profiles and test variables. The demographic analysis showed that 60% of respondents are aged 32 and above, are employed, and visit weekly. Among the service dimensions, “Assurance” scored the highest (mean = 3.84), reflecting strong confidence in staff professionalism. Customers expressed high satisfaction with handling of clothes (mean = 3.83) and general cleanliness. Most notably, the Pearson correlation (0.82, p = 0.0001) confirmed a significant positive relationship between service quality and satisfaction. This led to the rejection of the null hypothesis, proving that superior service dimensions directly elevate customer satisfaction. The study concludes that Citywash provides excellent service that consistently meets expectations across all demographic segments to maintain this competitive advantage, the researchers proposed an Action Plan focused on Infrastructure: Implementing regular maintenance schedules and dedicated storage for unclaimed laundry. Technology: Expanding digital payment options to move beyond cash-only limitations and adopting digital label printing. Training: Providing staff with continuous empathy and assurance training to maintain customer trust. By optimizing physical storage and operational efficiency, Citywash can address ongoing challenges and strengthen its position in the market.

Keywords

operational efficiency, service quality, customer satisfaction, servqual model, laundry industry, citywash laundry service