Factors Affecting Customers’ Satisfaction on Online Tax Payment in Ethiopia: An Empirical Study on Ethiopian Large Taxpayers

Abstract

Online tax payment system can play a very crucial role in the tax payment process for the users as well as the organizations. The purpose of this thesis is to assess the factors that affect the customer’s satisfaction on online tax payment system in MOR main branch office. This study used explanatory design, with describing, understanding, predicting the factors that affect the satisfaction of online tax payment system in MOR. Both descriptive and regression analysis were employed. In this study, a total of 174 questionnaires are distributed and 145 questionnaires are collected with 83 % response rate. The finding of Pearson correlation analysis reveals that ease of use, usefulness and credibility has a positive relationship with customer satisfaction and significant at the 1% level of significance as well as the relationship between those factors and customer satisfaction were strong. Furthermore, the multiple regression result indicates that adjusted coefficient of determination (R2) for three factors explained approximately 71.6 % of the variation in customer satisfaction. The model coefficients estimation result tells that all the independent variables i.e. ease of use, usefulness, and creditability are found to be positively significant at 1% significance level. The estimated coefficients for credibility have the highest coefficient value followed by usefulness and ease of use. The model adequacy diagnostic test was conducted and the result shows that the model is adequate and appropriate. Finally, the MOR should be consider credibility as one of the main factor and give high emphasis on online tax payment system such as security and privacy of the system in order to meet customer satisfaction as well as to increase confidence, improve the simplicity or ease of use on the system so that all the customers could be satisfied and update the system to improve the usefulness of the system so that customers would be more satisfied.