ASSESMENT OF SELLER GROUP MEMBERS’ SATISFACTION WITH THE SERVICE QUALITY OF ETHIOPIAN COMMEDITY EXCHANGE

Abstract

Service quality and member satisfaction are very important concepts that companies must understand if they are to grow and remain competitive in the business environment, and it is very important for them to know how to measure these constructs from the member’s perspectives. This study focuses on assessing the service quality dimensions and member satisfaction in the Ethiopian Commodity Exchange (ECX). The main objective is to assess activities that are related to service quality and its contribution to member’s satisfaction, while the specific objectives are to determine levels of service quality and members’ level of satisfaction using the SERVQUAL dimensions and finally establish a link between service quality and member satisfaction. The data was collected by use of self –administered questionnaires and face to face interviews. The questionnaire developed for this study was based on a SERVQUAL model that identified the influence of the five dimensions, (Responsiveness, Assurance, Empathy, Tangibility, and Reliability) on Exchange service environment on member satisfaction. A descriptive study was conducted on 117 seller members of ECX, data collected concocted of qualitative and quantitative having been analyzed using SPSS window version 20. Descriptive statistics such as frequency, mean, and standard deviation were used to analyze the data. Tables were used to summarize responses for further analysis and facilitate comparison. The result of the study shows that the ranking of SERVQUAL dimensions in relation to high satisfaction was in the following order, responsiveness first, tangibles second, assurance third, reliability forth and empathy last. Members were highly satisfied only on seven of the twenty-seven attributes. Members were satisfied on very few attributes and on the SERVQUAL dimensions members were 26% list satisfied and 26% highly satisfied. The overall satisfaction rate (including marginally satisfied mildly satisfied, satisfied, and highly satisfied) is 55% in all service dimension measurement results. This result indicates that service quality is generally below average in the Ethiopian Commodity Exchange and members are only marginally satisfied and there is a need for improvement. More can be done to exceed members ‘expectations on all the dimensions of service quality. Major findings and recommendations include: Members are unsatisfied because of inadequacy and inefficiency of warehouse and grading services, inadequate electronic trading time, the product mixing of different seeds, and the penalty cost paid for late warehousing. Since ECX warehouses are not giving adequate service to members and the aim of the establishment of ECX is to facilitate commodity trade, it should separate itself from the warehouse and quality grading operations. As electronics trading is the most vital aspect of ECX operations it should adjust the time with the mechanism of preventing the necessary protection put in place. In addition, product mixing has been a long-drawn complaint without any solution. To rectify the situation management should follow these incidents and make those responsible to account.