The Impact of Voucher Card Selling Service Outsourcing On Service Quality of Distributors A Case Study on Ethio telecom

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Addis Ababa University


Business process outsourcing has been rapidly growing during the past decade and today most companies outsource their product and service to sell through the indirect channel which helps to get additional sources of market share and revenue that normally are not attainable with direct sales. Apart from this Outsourcing brings quick and Quality of service to customers and quality service is a vital antecedent of customer's satisfaction which in turn customer satisfaction is believed to affect post-purchase, perception and future decisions of customers. The purpose of this research is to assess the impact of voucher card selling service outsourcing on service quality of distributors. The study covers all sub-distributors which distributes the voucher card getting from main distributors to retailers in Addis Ababa. To meet this objective, quantitative research strategy was adopted and quantitative data was collected from sub- distributors’. Descriptive statistics like frequency, mean and correlation analysis techniques were applied to analyze background information of respondents, to analyze respondents’ perception on service delivery quality and satisfaction as well as relationship between service quality dimensions, overall service delivery quality and sub- distributors’ satisfaction. In addition, regression analysis technique was undertaken to investigate the impacts of service quality dimensions on sub-distributors’ satisfaction as well as to test the hypothesis developed. The finding of the study shows that sub- distributors are moderately satisfied on responsiveness, assurance and tangibility while they are dissatisfied on reliability and empathy of main distributors’ when compare to other. In addition, the relationship between service quality dimensions and customer satisfaction was analyzed and the result shows all service quality dimensions have positive and significant relation with sub- distributors’ satisfaction. The finding also shows that a positive relationship between overall service quality and sub-distributors’ satisfaction which implies the higher the quality of overall service, the higher the level of sub-distributors’ satisfaction. From this finding, it can be concluded that main distributors can improve its service by mostly focusing on reliability and empathy service quality dimensions and at the same time it can increase sub-distributors’ satisfaction by focusing on overall service quality and important dimensions. Keywords: outsourcing, voucher card, main distributors, sub-distributors



Outsourcing; voucher card; main distributors; sub-distributors