THE EFFECT OF SERVICE QUALITY ON CUSTOMER SATISFACTION AT ETHIO TELECOM

Abstract

The purpose of the study was to measure the effect of service quality dimensions on customer satisfaction. The relationship between the six service quality dimensions, which are tangibles, reliability, responsiveness, assurance, reliability and network quality with customer satisfaction, is assessed. Differences in the perception of service quality, customer satisfaction and importance rating among different customer group are discussed and SPSS versions 17 was used to analyze data and the relationship between dependent & independent variables. A total of 325 set of questionnaires distributed to Ethio telecom enterprise customers. The number of questionnaires used for data analysis was 220 representing a response rate of 67.69 % which is acceptable and enough for conducting the necessary statistical tests. For the data analysis process, the statistical techniques were used including descriptive statistics, independent sample mean t-test, Pearson’s correlation coefficient (r), regression analysis, and One Way Analysis of Variance (ANOVA). The findings on the relationship between service quality dimensions and customer satisfaction and showed all service quality dimensions are strongly or moderately and highly significantly related customer satisfaction. In addition to this, the customer perceived among different segments are showed momentous differences among different segments of enterprise customers concerning customer satisfaction. Since enterprise customer’s perception on the service quality dimensions and overall satisfaction is at lower rate, it is recommended that the ethio telecom company should give priority to the customer and due emphasis and prompt response for the customers whose operation is highly dependent on its services