The Effect of Service Quality on Customer Satisfaction: (The Case of Ethiopian Insurance Corporation)

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Date

2019-06

Journal Title

Journal ISSN

Volume Title

Publisher

A.A.U

Abstract

The major objective of this study is assessing the effect of service quality on customer satisfaction in five branches of EIC found in Addis Ababa. To attain this objective, questionnaire was designed categorized under five dimensions of the SERVPERF model. The sample consists of 285respondents selected based on multistage sampling procedure. This study used quantitative research design and both primary and secondary data. The collected data was analyzed with the help of SPSS version 20.Correlation and multiple regressions were used to investigate the relationship between dependent and independent variables. The correlation results indicate that there is a positive correlation between the dimensions of service quality and customer satisfaction. The results of the regression test showed that offering quality service have positive impact on overall customer satisfaction. And also the highest correlation is between assurance and customer satisfaction followed by empathy. The finding of the analysis showed that, the performance of EIC in providing quality service is not in a position to meet the expectation of the customer. Low service quality leads low customer satisfaction. Based on this, in order to improve performance of the corporation, the researcher suggested that, it should prepare complaint handling mechanisms, relevant training for its front line employees to identify and give the appropriate response to customers specific needs as well as to put customer best interest at heart.

Description

A Thesis Submitted to Addis Ababa University Department of Public Administration and Development Management, in Partial Fulfillment of the Requirements of the Degree of Master of Public Administration and Development Management

Keywords

Assurance, Customer Satisfaction, Empathy, Service quality

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