ASSESSING THE EFFECTS OF SERVICE QUALITY ON CUSTOMERS’ SATISFACTION: THE CASE OF LIDETA SUB CITY SMALL TAX PAYERS BRANCH OFFICE

Abstract

Customer satisfaction is a curtail concept and regarded as a strategic weapon to compete and stay as an organization. Quality service has become an important factor for the achievement of customer satisfaction and fulfilling the complex needs and expectation of customers. The objective of the study was to assess the implication of service quality on customers’ satisfaction in Lideta sub city small taxpayer branch office (LSCSTBO). To achieve the objective, appropriate research questions and hypotheses were postulated to guide the research. The study adopted descriptive research method. The SERPERF MODEL was modified and incorporated into a detailed questionnaire to acquire information from customers. Interview guides were designed to gather responses from some staff and management members. Secondary data was also collected from manuals and reports. The collected data was analyzed by correlation and multiple regression analysis with help of SPSS (20.0) tool. The result indicated that overall satisfaction, which is the upshot of service delivery, provided a positive result higher than the midpoint (3.46 out of maximum 5). Moreover; reliability, empathy and tangibility have the main predictors of customers’ satisfaction. Assurance and responsiveness have a positive correlation but no significant impact on customers’ satisfaction. It was also found that in LSCSTBO insufficient staff, problem of providing fast service, delay in answering questions and problems, and lack of awareness were among the problems. It was thus recommended that the revenue office should concentrate on implementing training programs, recruit sufficient and skill employees. Finally, prior focus and resource allocation should be given to reliability, empathy and tangibility dimensions which have greater impact on customers’ satisfaction.