EFFECTS OF SERVICE QUALITY ON CUSTOMER SATISFACTION: THE CASE OF ARSHO MEDICAL LABORATORY

Abstract

Service quality has achieved great interest from all stakeholder in a business notability those of managers and academics due to its substantial influence on business performance, cost reduction, customer satisfaction, customer loyalty and profitability. It is confirmed in both business and academic world that better service quality increases firms‟ competitiveness and in turn helps to maximize the satisfaction of customers. In light of this, this research work intends to investigate the effects of service quality on customers‟ satisfaction taking (AML)Arsho Medical Laboratory as a reference. Based on the general objective, the study has also formulated five specific objectives and examined each in depth. In conducting the study, descriptive and correlation & regression research design, was employed. Both primary and secondary data were collected for the purpose of this study from customers of AML. Data was collected from respondents using questionnaire and key informant interviews. Out of the 372 questionnaires distributed 301 questionnaire was collected and 3 customer service managers were interviewed. The data collected through questionnaire was analyzed using descriptive analysis and inferential statistics. While the qualitative data collected through interviews is analyzed using content analysis. From the analysis of the collected data, the findings show that the five service quality dimensions (tangibility, assurance, empathy, reliability and responsiveness) have a positive effect on customer satisfaction. It is also Recommended that to improve quality services to satisfy customer‟s needs, laboratories should pay much attention on the customer complaints, customer‟s expectation and individual attention should be given to customers in order to better understand their needs and satisfy them.