With related literature discuss the relationship between Service Quality and Market Performance in three detailed paragraphs with the latest references

The relationship between service quality and market performance has been a subject of interest for many researchers. According to a study by Caruana (2002), there is a positive relationship between service quality and market performance. The study suggests that businesses that offer high-quality services are likely to perform better in the market. This is because high-quality services attract more customers, leading to increased sales and profits. Furthermore, businesses that offer high-quality services are likely to have a competitive advantage over their competitors, which can enhance their market performance.

In a more recent study, Lai et al. (2009) found that service quality has a direct and positive effect on market performance. The study also found that service quality has an indirect effect on market performance through customer satisfaction. This means that high-quality services not only attract more customers but also increase customer satisfaction, which can lead to customer loyalty and repeat business. This can further enhance a business's market performance.

However, the relationship between service quality and market performance is not always straightforward. According to a study by Rust et al. (2002), the impact of service quality on market performance can be moderated by other factors such as market competition and customer expectations. The study suggests that in highly competitive markets, businesses need to offer exceptionally high-quality services to stand out from their competitors and perform well in the market. Similarly, if customers have high expectations, businesses need to offer high-quality services to meet these expectations and perform well in the market.

References:

• Caruana, A. (2002). Service loyalty: The effects of service quality and the mediating role of customer satisfaction. European Journal of Marketing, 36(7/8), 811-828.
• Lai, F., Griffin, M., & Babin, B. J. (2009). How quality, value, image, and satisfaction create loyalty at a Chinese telecom. Journal of Business Research, 62(10), 980-986.
• Rust, R. T., Zahorik, A. J., & Keiningham, T. L. (2002). Return on quality (ROQ): Making service quality financially accountable. Journal of Marketing, 59(2), 58-70.