THE EFFECTS OF DIMENSIONS OF SERVICE QUALITY ON CUSTOMER SERVICE QUALITY WITH A PARTICULAR REFERENCE IN NILE INSURANCE COMPANY S.C

Abstract

The main purpose of the study was to evaluate the effect of service quality dimensions on customer service quality in Nile insurance company with respect to: tangibility, reliability, responsiveness, assurance and empathy. Descriptive statistics was used to present the gap between customer expectation of service quality versus customer perception of service quality and the demographic characteristics of the respondents and Explanatory study design was used to examine the relationship between service quality dimensions and customer service quality of the case organization. Quantitative study approach was used in the study. Target population of the study was 4,973 customers of Nile insurance company found in four branches of Addis Ababa. Simple random sampling was used for the study. Primary data and secondary data were used as a source. Questionnaires were distributed to 370 customers of the Nile Insurance Company. The collected data were summarized and analyzed using descriptive and inferential statistics using SPSS version 20. The result is then presented in the form of tables and figures followed by discussion for further interpretation on the findings. All the independent variables of service quality dimensions were found to have a positive and significant correlation with the dependent variable which is customer service quality. The ANOVA test result showed that, the model fit significantly and the value of R and R2 obtained under the model summary was statistically significant. The multiple linear regression analysis revealed that, all the independent variables (tangibility, reliability, responsiveness, assurance and empathy) have statistically significant relationship to predict customer service quality. Tangibility and reliability accounts the largest share to explain the variation of Customer service quality. This study was limited to the effect of service quality dimensions on customer service quality in one organization and four branches. The study is recommended for further study include branches and other financial institutions which do not considered in this study order to become more efficient in their customer service quality.