Influence of Service Quality on Process Quality and Customer Satisfaction in Housing Projects

Background India’s residential construction sector has surged due to rapid urbanization, rising incomes, and initiatives like Pradhan Mantri Awas Yojana (PMAY). In 2025, it contributed over 8% to GDP, with residential projects comprising 70% of activity (IBEF, 2025). Yet, challenges like delays, cost overruns, and quality issues erode customer trust and satisfaction. Service quality and process quality are key drivers, but their interrelationships in this context remain underexplored. This study fills the gap by investigating how service quality, process quality, and customer satisfaction interact to boost project success and loyalty. Methodology A literature review synthesized frameworks like SERVQUAL and process-oriented models to pinpoint key dimensions. Validated scales formed a structured survey instrument for latent constructs. Data was collected from 287 house owners of recent independent houses in Karnataka cities and towns, gathered via snowball sampling online. Analysis used SMARTPLS 4.0 for PLS-SEM to test hypotheses. Results Findings show service quality significantly positively affects process quality and customer satisfaction. Process quality mediates this link, amplifying service’s impact on satisfaction, and directly boosts customer satisfaction. This reveals a sequential pathway: superior service enhances processes, driving contentment. Implications emphasize service quality’s role in elevating process efficiency and satisfaction in India’s residential construction. Contractors should prioritize communication, timelines, and quality protocols to build loyalty, trust, and competitive edge. Conclusion In conclusion, this study establishes the significant influence of service quality on process quality and client satisfaction in residential developments across Karnataka. High service quality not only enhances corporate efficiency, customer loyalty, and profitability but also strengthens construction processes, which are pivotal in driving client satisfaction within the sector. Ultimately, prioritizing effective service quality yields greater client happiness, repeat business, and a superior reputation in the construction industry.