THE IMPACT OF QUALITY SERVICE DELIVERY ON CUSTOMER SATISFACTION AT OROMIA INSURANCE S.C

Abstract

This research examined the effect of service quality on customer satisfaction in case of Oromia Insurance S.C. service. Service quality has been defined as a difference between customers' service perception and expectations. To achieve the objectives of this study, data was collected through questionnaire from a sample of 319 major customers of Oromia Insurance S.C. These respondents were selected using judgmental sampling method. The data collected from the questionnaire were analyzed using Descriptive Statistical tools such as counts, percentage, mean, and standard deviation. The results of this study indicate that except tangibility the four service quality dimensions (reliability, responsiveness, assurance, and empathy) have negative and significant difference with customers' expectations. Furthermore, customers were most dissatisfied with the reliability dimensions of service quality. On the contrary, customers were more satisfied with tangibility and empathy dimensions of service quality. Based on the findings of the study, the researcher forwards some recommendations for Oromia Insurance S.C. managements such as the company must improve its service quality and consistency of performance as well as on improvement of customer handling and service process.