The effect of Service Quality on Customer satisfaction The Case of Ethiopian Revenue & Customs Authority, Nifassilk-Lafto Subcity
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Date
2017-06-05
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Addis Ababa University
Abstract
A lot of work has gone into studying service quality and customer satisfaction in the private sector but a few are conducted in the public sector such as ERCA. Moreover the prevailing indicators of customer dissatisfaction in relation to service delivery at ERCA demand to conduct a study on the issue. This study was conducted to examine the effect of service quality on customer satisfaction in the context of ERCA-Nifassilk-Lafto sub-city. The SERVPERF model was employed and the study was conducted using a quantitative method through cross-sectional survey design. The sample size was 387 and the sampling technique used was convenient sampling. Self administered survey questionnaire based on the modified 22 items of the SERVPERF scale was used as instrument to collect primary data. The results of correlation analysis showed that all the five service quality dimensions were significantly correlated with customer satisfaction. The dimension that was highly correlated with customer satisfaction was empathy (correlation coefficient = 0.807) followed by assurance (correlation coefficient = 0.785), responsiveness (correlation coefficient = 0.784), reliability (correlation coefficient = 0.777), and finally tangibility was found to be the dimension that was least correlated with customer satisfaction (with correlation coefficient = 0.547). Multiple regression analysis was also performed and from the results the R2 value for the model summary of the five service quality dimensions was 0.81 which indicated that service quality dimensions on aggregate are capable of explaining the variance in customer satisfaction by 81%.The ‘b’ coefficients for tangibility, reliability, empathy, assurance and responsiveness, were found to be 0.082, 0.264, 0.303, 0.291 and 0.271 respectively. Except tangibility the ‘b’ coefficients for the four service quality dimensions were statistically significant at 99% confidence intervals and for the dimension tangibility it was significant at 95% confidence interval
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Service quality, service quality dimensions, customer satisfaction