The Impact of Service Quality on Customer Satisfaction: The Case of Nib Insurance Company (S.Co)

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Addis Ababa University


This study investigated the Impact of Service Quality on Customer Satisfaction in the case of Nib Insurance Company (S.Co.) branches in Addis Ababa city. In this research, the SERVQUAL instrument developed by (Graham, K.R., Evanglos T. & Simy M., 2004) and Parasuraman et al., (1988), has been applied in designing the questionnaire by using the five dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy. The study was limited to corporate customers of 16 branches of the company, which are found in Addis Ababa. A total of 243 corporate customers was selected from each branches proportionatly and a self administered questionnaire was distributed by using accidental sampling method at the time of service delivery. The data collected through questionnaire was analyzed by using frequency and percentage values. In addition, the mean score, standared deviation and paired sample t-test was used to see the gap between percieved and expected service quality. Moreover, pearson correlation was applied to see the relationship between service quality dimensions and customer satisfaction. Whereas, multiple linear regression analysis was employed to explore the impact between service quality dimensions and customer satisfaction. Findings of the results revealed that, among the five SERVQUAL dimensions reliablity, empathy, assurance, tangibles are significantly determine customer satisfaction. where as, responsiveness doesn’t have a significant impact on customer satisfaction in NIC. Also, the negative gap between customers’ perceptions and expectations of each service quality dimensions revealed that, NIC failed to deliver the expected service quality, where by reliability and tangibles are appeared to be the two dimensions with the highest negative gaps. Thus, NIC should pay due attention to these dimensions in order to increase the level of service quality and associated with customer satisfaction



Service Quality, Customer Satisfaction, Insurance Company