Measuring Service Quality and Customer Satisfaction in Selected Insurance Companies in Addis Ababa: In the Case of VehicleI Insurance against Third Party Risks

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Addis Ababa University


This research examined the effect of customer service quality on customer satisfaction in selected insurance companies in Addis Ababa: in the case vehicle insurance against third party risks. Service quality as ‘an attitude formed by a long term, overall evaluation of a firm’s performance’. Customer satisfaction is defined as the customer’s subjective evaluation of a consumption experience, based on some relationship between the customer’s perceptions and objective attributes of the product/service. To achieve the objectives of this study, data was collected through questionnaire from a sample of 369 insurance customers. These respondents were selected using systematic sampling method. The data collected from the questionnaire were analyzed using Statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. The results of this study indicate that, the five service quality dimensions (tangibility, reliability, responsiveness, assurance and empathy have positive and significant relationship with customer satisfaction. The results also indicate that unlike reliability and assurance the three service quality dimensions (tangibility, responsiveness and empathy) have positive and significant effect on customer satisfaction. Furthermore, the service quality dimensions (tangibility, responsiveness and empathy) significantly explain 55.5% of the variations in customer satisfaction in the insurance companies in Addis Ababa. Based on the findings of the study, the researcher forwards some recommendations to the insurance companies’ management and suggestions for other researchers



service quality, Customer Satisfaction, evaluation