Assessing the Impact of Service Quality on Customers Satisfaction: A Case of Lideta Sub-city Trade Office

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Addis Ababa University


The main objective of the study is to assess the impact of service quality on customers’ satisfaction in the case of Lideta sub-city Trade office. Regarding to research methodology; the study employed explanatory research method with both qualitative and quantitative data type. The target population of the study was 2651on an individual basis (including both employees and customers). Then, 11employees and 347customers (individual business persons), a total of 358 samples drawn. Simple random sampling and purposive sampling techniques were employed for selecting samples of customers and employees respectively. The study used questionnaires and interviews as a tool for data collection. In order to test the reliability of the instrument, the Crobanch alpha test was used. Pearson correlation and multiple linear regression analysis were employed to estimate the causal relationships between service quality and customer satisfaction. Finally, the responses of the respondents were analyzed using descriptive Statistics, correlation, and regression. The findings of the study showed that Customers perceive poor service quality in all dimensions, this indicates that customers perceive below their expectations. The overall level of their satisfaction is below the average. Employees have knowledge gap about the service standards of their office; these results from lack of professional trainings, because of budget and selection problems. From the study it was found that all service quality dimensions are positively related to customer satisfaction. The data also shows that all the independent variables (tangibility, reliability, assurance and empathy) excluding responsiveness have statistically positive and significant impact on dependent variable (customer satisfaction).Responsiveness has positive relationship but insignificant impact on customer satisfaction. The overall finding of this study suggests that all employees and officials in the office have to be committed and involved in service quality improvement in order to meet customers’ expectation. Better to serve customers Staff training is one of the most important factors for delivering better customer service. So, the office should give attention for employees professional training and motivation. Finally, the study recommended that the office has to give significant consideration for all service quality dimensions that positively impact on customer satisfaction.



Customer satisfactions, Service quality