Abstract:
This study examines the impact of service center atmospheric factors on customer
loyalty within the automobile service industry in Kandy District, Sri Lanka, since the
limited research on this context creates an academic gap and lack of guidance for
managers/owners in enhancing customer loyalty in Kandy’s automobile service
industry. Grounded in the Servicescape and Experiential Marketing theories, the
research investigates four key atmospheric dimensions - ambient conditions, design
and layout, social factors, and signs, symbols, and artefacts and their influence on
customer loyalty. Using a positivist approach, data were collected through a
structured questionnaire from a convenience sample of 150 customers visiting
automobile service centers, and analyzed via descriptive statistics, correlation, and
multiple regression analyses using SPSS. Results confirm that ambient conditions,
design and layout, and social factors significantly enhance customer loyalty, with
social factors (staff friendliness and responsiveness) exhibiting the strongest
influence (r=0.893, p<0.001). However, signs, symbols, and artefacts showed a non significant impact, suggesting limited direct influence on loyalty. These findings
emphasize the importance of fostering positive interpersonal interactions and
optimizing physical environments to build customer retention. Practical
recommendations include prioritizing staff training, improving ambient conditions,
and designing functional layouts to enhance customer experience and competitive
advantage. The study’s geographic focus on Kandy District and cross-sectional
design present limitations, suggesting future research explore broader regions and
longitudinal approaches.
