EFFECT OF SERVICE QUALITY AND CUSTOMER SATISFACTION IN ETHIOPIAN HOUSING CONSTRUCTION PROJECT: THE CASE OF AYAT 2 40/60 CONDOMINIUM PROJECT

Abstract

This study aimed to investigate the quality of service and the level of customer satisfaction in Ayat 40/60 Condominium Project in Addis Ababa. The study adopted descriptive as well as explanatory research design. SERVQUAL model with five dimensions was used. The study collected primary data from randomly selected 155 Condo housing winner in Ayat 40/60 Condominium Project in Addis Ababa. The data was analyzed using Statistical Package for Social Sciences (SPSS). From statistical tools, descriptive statistics Pearson correlation, and multiple regressions were used to investigate the relationship among the variables. The result revealed that customers’ satisfaction level towards project service delivery of Ayat 40/60 Condominium Project in Addis Ababa was low. In line with this, the result showed that more than three-fourth (77.6%) of respondents were dissatisfied with the agency overall service delivery; 72.4% of respondents were dissatisfied with the house interior partition and other finishing work; 67% of respondents were dissatisfied with the quality of house; 60.9% of respondents were dissatisfied with the design of house. The result from correlation shows that there are positive and high correlation between the four service quality dimensions (tangibility, reliability, responsiveness, and assurance) and condo housing winner satisfaction in Ayat 40/60 Condominium Project in Addis Ababa. In addition, the result from regression revealed that the combined effect of various service quality dimensions significantly influenced customer satisfaction positively. The value of adjusted R2 is 0.731 tells that the five service quality dimensions can account for 73.1% of the variation in the overall condo housing winner satisfaction in Ayat 40/60 Condominium Project in Addis Ababa. In terms of individual effect, four out of the five service quality dimensions (tangibility, reliability, responsiveness, and assurance) are significant in predicting condo housing winner satisfaction in Ayat 40/60 Condominium Project in Addis Ababa; whereas empathy was not significant in predicting condo housing winner satisfaction in Ayat 40/60 Condominium Project in Addis Ababa. Thus, the study concluded that service quality has a positive and significant effect on condo housing winner satisfaction in Ayat 40/60 Condominium Project in Addis Ababa. Therefore, the Addis Ababa Saving Houses Development Agency should influence these services quality dimensions as a way of ensuring its housing service customers get the satisfaction.