The Impact of Service Quality on Customer Satisfaction and Loyalty in the Ethiopian Insurance Industry
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Date
2018
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Addis Ababa University
Abstract
This research project tries to assess and analyze the impact of service quality on customer
satisfaction and customer loyalty in Ethiopian Insurance industry. Further, this study evaluates
the relationship among service quality including its dimensions, customer satisfaction, and
customer loyalty. For the purpose of the study primary data were collected using five point likert
scale based questionnaire that was constructed taking into account all the dimensions of service
quality as per the SERVPERF scale such as Tangibles, Reliability, Responsiveness, Assurance,
and Empathy. Further, customer’s perceptions were used to assess Customer Satisfaction and
customer loyalty. A sample of 768 customers was selected using multi stage sampling technique,
and 706 customers were responding. And the data was analyzed using descriptive statistics and
inferential statistics. The statistical methods of analysis included a descriptive statistics
(frequency, mean and standard deviation), factor of analysis, ANOVA, correlation and
Regression analysis are presented through SPSS version 20.
The result of this study shows that, all service quality dimensions have positive and significant
impact on customer satisfaction and customer loyalty. At the same time, Customer satisfaction
has also a positive and significant impact on customer loyalty. The findings also reveal that
service quality and all its dimensions have a significant and positive relationship with customer
satisfaction and loyalty. Customer satisfaction and customer loyalty have also a significant and
positive association. Moreover, overall service quality has a strong association with customer
satisfaction and customer loyalty in Ethiopian Insurance Industry.
Key words: service quality, service quality dimensions, customer satisfaction, SERVPERF
Description
Keywords
service quality, service quality dimensions, customer satisfaction, SERVPERF