The effects of service quality on customer satisfaction in the Case of Ethiopian Shipping and Logistics Service Enterprise

Abstract

The objective of the study was to measure effect of service quality on customer satisfaction in the case of Ethiopian shipping and logistics Service Enterprises head office in Addis Ababa. The study has used the SERVPERF model of service quality with the application of the five service quality dimensions. This service quality dimensions which were developed by Cronin & Tyler (1992), namely tangibility, reliability, responsiveness, assurance and empathy were used to measure the level of customers satisfaction & service quality of Ethiopian shipping and logistics service enterprise .The study used quantitative and qualitative research approach. This research has been used both descriptive and explanatory type of research design .In order to achieve the objectives primary & secondary source of data was used .Primary data were collected from the customer using self-administered questionnaires. From the total population 234 of sample respondents was selected using simple random sampling method and out of sample 215 questionnaires were properly filled & returned for data analysis. Both descriptive and inferential statistics have been used to find mean score, standard deviation ,percentage ,correlation and regression of the study. The study tested hypothetical relationships between five dimensions of service quality and customer satisfaction. The result of the analysis shown that empathy and tangibility have positive and significant effect on customer satisfaction however responsiveness, assurance and reliability have positive and insignificant effect on customer satisfaction. Pearson correlation analysis was conducted to examine the relationship between service quality dimensions and customer satisfactions and the result shows that all the five service quality dimensions have moderate or average positive relationship with customer satisfaction. So the researcher has recommended Ethiopian shipping and logistics service enterprise needs to give more emphasis to empathy and tangibility dimensions of service quality to improve the level of customer satisfaction.