Effect of Service Quality on Customer Satisfaction (A Case of Kifiya-Lehulu Financial Technology-Megenaga Branch)

Abstract

Service Quality becomes the crucial issue for hospitality industry, and the theory of service has evolved over long period of time. Service quality has become the most important factor for the survival of customer satisfaction. Service quality is the most important structure in service marketing. Sustainable survival of an organization depends on its customer satisfaction. The main purpose of this study is to examine the effect of service quality on customer satisfaction and to identify the relationship between service quality dimensions with customer satisfaction. The researcher used questioner in order to collect data about service quality in Kifiya-Lehulu financial technology. The questioner adapted from SERVQUAL model dimensions. The researcher used convenient sampling method in order to select the sample from the population. A total of 375 questioners were collected from customers. The data analysis was conducted through statistical techniques such as descriptive statistics, and inferential statistics using SPSS version 20. The finding indicates that service quality of the organization is moderate. Based on the result of the correlation, it shows that there is inter correlation between the service quality dimension and customer satisfaction, there is positive significant relationship which implies that the change made in one of the service quality dimension will positively motivate the other service quality dimension. The highest perceived service quality is observed in empathy and less perceived quality is observed in responsiveness. From the study it is found that there is positive statistical relationship between the independent and dependent variable. From the regression result the impact of tangibility is higher followed by responsiveness assurance and empathy respectively and reliability has insignificance impact on customer satisfaction Kifiya-Lehulu Financial Technology should work on improvement of service quality dimensions to increase customer satisfaction.