THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN THE CASE OF ZAF PHARMACEUTICAL ADDIS ABABA, ETHIOPIA

Abstract

The purpose of the study is to analyze whether perception of services received is related to customer satisfaction regarding ZAF pharmaceuticals in Addis Ababa, Ethiopia. Quantitative means of data collection method is employed to collect the data through questionnaire and key informant interview and a systematic random sampling was used. The data collected was analyzed using statistical tools such as mean, correlation, and regression analysis via SPSS version 20. SERVPERF model was used to identify the relationship among service quality and customer satisfaction. The findings of this study indicated that the five service dimensions (tangibility, reliability, responsiveness, assurance and empathy) were positively related to the overall service quality and hence the customer satisfaction. The results showed that tangibility and responsiveness play the most important role in customer satisfaction level followed by reliability, empathy and assurance. This implies that improvement on employees’ empathy and assurance are important issue that requires attention. Moreover, the regression analysis showed that approximately 62% of the variation on the customer satisfaction can be explained by the variability of the five dimensions of service quality. The rest 38% can be explained by other factors which were not included in this study such as price or service variety. Even though, most of the respondents were satisfied by the service provided by ZAF pharmaceuticals, approximately, a tenth of the respondents were still dissatisfied. Therefore, the researcher recommends ZAF pharmaceuticals to improve its services by addressing the gap on those five service quality dimensions