Factors Affecting Customer’s Satisfaction of Feres Transport Service in Addis Ababa
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Date
2024-02
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Addis Ababa University
Abstract
This study focuses on identifying the factors influencing customer satisfaction with Feres Transport services in Addis Ababa, a prominent player in the app-based taxi transportation sector in the city. A structured questionnaire was utilized to collect data from 378 respondents (customers of Feres Transport) selected through purposive sampling. This study utilizes quantitative data to identify general practices and analyze the relationships between variables in accordance with the main aim of testing the developed hypothesis. An explanatory research approach was adopted to describe the causal relationships between independent and dependent variables relevant to the research problem. This methodology is suitable for assessing the effects of independent factors on the dependent variable, facilitating a comprehensive evaluation and drawing meaningful conclusions from the findings. Data analysis was conducted using SPSS version 20, incorporating statistical methodologies such as mean, correlation, and multiple regression analysis. The study findings indicate a positive relationship between all six customer satisfaction factors (Price fairness, pick-up Time reliability, Application Convenience, Driver’s Professionalism, Call Centre Employees Responsiveness, and Car Condition) with taxi passengers' customer satisfaction. Hypotheses testing revealed that two factors (responsiveness of call center employees and application convenience) significantly impact customer satisfaction, while the remaining four factors (Price, Time, Car Condition, and Driver’s Professionalism) have a positive but insignificant effect. Customers demonstrated highest satisfaction with the punctuality of FERES TRANSPORT services, followed by the perceived affordability. The analysis also suggests that these predictor variables collectively explain (38%) of the variation in customer satisfaction, indicating the presence of other unexplored factors (62%) affecting customer satisfaction. Based on the study findings, Feres Transport must continuously assess and refine its services based on customer feedback. As call center responsiveness and application usability have the strongest correlation with customer satisfaction, targeted investments in these areas could yield significant benefits. Furthermore, effectively capturing and addressing feedback will allow the company to adapt quickly to changing market expectations.
Keywords: Customer satisfaction, FERES TRANSPORT, transportation services, service quality, pricing.