The Impact of Service Quality on Customer Satisfaction in the Case of Ethiopian Commodity Exchange (ECX) Concerning the Coffee Market
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Date
2025-05-04
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A.A.U
Abstract
This study investigates the impact of service quality on customer satisfaction within the
Ethiopian Commodity Exchange (ECX), specifically focusing on the coffee market. Using the
SERVPERF model, five key service quality dimensions tangibility, reliability, responsiveness,
assurance, and empathy were analyzed to determine their influence on customer satisfaction. A
quantitative research approach was employed, utilizing structured questionnaires distributed to
a randomly selected sample of 322 coffee traders, of which 274 responses were valid for
analysis. Descriptive and inferential statistical techniques, including correlation and multiple
regression analysis using SPSS v25, were applied to assess the relationships among the
variables. The findings revealed that tangibility (β = 0.521, p < 0.001), reliability (β = 0.174, p
= 0.002), responsiveness (β = 0.165, p = 0.012), and empathy (β = 0.167, p = 0.001) had
statistically significant and positive effects on customer satisfaction. In contrast, assurance (β =
0.023, p = 0.720) did not show a significant impact. The model explained 68.0% of the variation
in customer satisfaction (Adjusted R² = 0.680). The study concludes that performance-based
service delivery is a strong predictor of customer satisfaction in commodity trading platforms
like ECX. It recommends that ECX prioritize improvements in responsiveness, personalization,
and physical service attributes while addressing gaps in employee competence and trustbuilding.
These insights offer valuable guidance for ECX management, policymakers, and
stakeholders seeking to enhance service quality and customer experience in Ethiopia’s
agricultural markets.