THE INFLUENCE OF SERVICE QUALITY ON CUSTOMER SATISFACTION AT FRUIT AND VEGETABLES TRADE BUSINESS UNIT (ET-FRUIT)

Abstract

The main purpose of this study is to investigate the influence of service quality dimension and overall service quality on customer satisfaction at Fruit and Vegetable Trade Business Unit (Et-fruit) in Addis Ababa. Also it tries to measure customer satisfaction and the quality of service delivered by Et-fruit service centers. The five dimensions of SERVQUAL (tangibility, assurance, responsiveness, empathy & reliability) were used to measure the quality of service provided by ET-fruit. In order to answer the raised research questions the research uses a quantitative methodology and administered questionnaire to test the hypothesis. Convenience sampling method was used and self-administered questionnaires have been distributed for 385 and out of this, analysis was made based on the data collected from 340 respondents who visited Et-fruit service centers. The findings of the study shown that five service quality dimensions were positively related to overall service quality and have an influence on customer satisfaction. The study results also indicated that the standardized coefficients of four service quality dimensions and to customer satisfaction have the expected positive sign and are statistically significant. Assurance, reliability, empathy and tangibility from dimension of service quality have a significant influence on customers’ satisfaction. The study has identified product quality and price which have significant influence on customer’s satisfaction. The study found out that, majority of the customers was dissatisfied with the services of Fruit and Vegetable Trade Business Unit (Et-fruit) at service centers.