The Effect of Service Quality and Service Recovery on Customer Satisfaction: A Case of Ethiopian Revenue and Customs Authority
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Date
2016-06
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Addis Ababa University
Abstract
The study focuses on examining the effect of service quality and service recovery on customer
satisfaction in three branches of ERCA local tax payers, by collecting data from customers in a
questionnaire form and interview techniques. The three dimensions of service recovery
developed by Stephen and Tax (outcome justice, procedural justice and interactional Justice)
and the later improved model of SERVQUAL model, the SERVPERF model which only measures
the performance of the organization by excluding the expectation part of SERVQUAL model
were used. A questionnaire were first translated into Amharic language and distributed to 385
respondents by using a cluster sampling techniques, and 284 respondents (74%response rate) fill
all the questionnaires accordingly. The finding shows that the majority of the respondents from
large tax payers are satisfied at the operation of ERCA and the respondents in middle and small
tax payers are moderately dissatisfied as the result of this survey finding shows. The result of the
survey data also shows that Empathy, followed by responsiveness, reliability and assurance
respectively are the most determinant of customer satisfaction from the service quality
dimensions and interactive , procedural and outcome justice respectively are the most
determinant of customer satisfaction from the service recovery dimensions. And when both
service recovery and service quality effect on customer satisfaction was analyzed together
service quality is the most determinant of customer satisfaction than service recovery. However,
their importance is nearly the same. Therefore, it is recommended that, ERCA should provide
quality service and also must have effective service recovery system on its work in a more
technical way, by enhancing the use of modern technology on its operation and must give
individual attention to its customers for giving an individual attention is affecting the satisfaction
of customers specially in small and medium tax payers and the interaction the employees of
ERCA have with their customers must be also improved
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Keywords
service quality, service recovery, ERCA