The Effect of Internal Marketing On Customer’s perceived Service Quality In Case Ethiopia Electric Utility

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Addis Ababa University


Even though the growing importance of people in service sectors are supported in many literatures there are still problems where traditional approaches of managing business that mainly focus on external customer. This research tries to find out the different element of internal marketing tools and their relationship with customers‟ perceived service quality. Two groups were examined with two different instruments. The study targets 146 samples of industrial customers based on their convenience and easiness to determine customer service quality they receive from Ethiopian Electric utility and select 153 contact staffs randomly to obtain there evaluation of the EEU internal marketing practice . The most commonly used dimensions of internal marketing were identified and used to attest its effect on customers‟ Perceived service quality.The descriptive analysis of the finding dictates that there is lack of adequate employee training& development, employee empowerment, employee motivation, Healthy work environment & organization support. From the study finding, the Pearson correlation coefficient of internal marketing variables shows that there is a strong positive correlation between IM variables and customers‟ perceived service quality. Further regression analysis was conducted to examine the effect of internal marketing on customers‟ perceived service quality.The result indicate that all selected dimensions of internal marketing have significant relation with the dependent variable service quality. Therefore, it is advisable for EEU to take the necessary measures regarding employees‟ training, empowerment revising the existing employee motivation system to reflect all employees requirement; there should be open and welcoming management to assist employees in their difficulties; internal communication should be there to keep employees up-to-date and informed about new events



Internal Marketing, Training, Development