THE EFFECT OF SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION: THE CASE OF MOVING FORWARDING INDUSTRY IN ETHIOPIA

Abstract

Business environment is dynamic & volatile that organizations have to build a sustainable competitive advantage. In view of this, this study tries to assess the service delivery quality in relation to Customer satisfaction in the case of Moving Forwarding Industry in Ethiopia and identify specific dimensions of Service Delivery Quality that are relevant to customers of given offerings. To adhere to this quest, study non probability sampling approach particularly judgmental sampling technique to select three moving and forwarding companies out of a total of six. After the samples of companies have been determined, the researcher used convenience-sampling methods to select the sample from the available. Gap 5 consisting of Perception minus Expectation is performed to measure Service quality throughout the 5 dimensions: Tangibility, Reliability, Responsiveness, Empathy and Assurance. To determine the relationship between Service Delivery Quality Dimensions & Customer Satisfaction, Pearson Correlation has been used whilst multiple regression analysis has been employed to examine effect of the dimensions on Customer Satisfaction. From the collected 352 usable questionnaires, findings reveal that all 5 dimensions of SERVQUAL Model have positive impact on the perception of customers regarding service quality, with assurance being the most important factor. Total Gap score of the three Moving Forwarding Companies show negative score meaning no overall customer satisfaction. Though findings of this study cannot be generalized given its limitation, findings can be used as guidelines for existing companies within the Moving Forwarding Industry to improve on crucial quality attributes and enhance business performances. These findings can also be used to lay grounds for future studies.