You are on page 1of 12

International Journal of Public Administration

ISSN: 0190-0692 (Print) 1532-4265 (Online) Journal homepage: https://www.tandfonline.com/loi/lpad20

The Impact of Quality Public Service Delivery


on Customer Satisfaction in Bahir Dar City
Administration: The Case of Ginbot 20 Sub-city

Besfat Dejen Engdawhttps://orcid.org/0000-0002-9070-7629

To cite this article: Besfat Dejen Engdawhttps://orcid.org/0000-0002-9070-7629 (2019):


The Impact of Quality Public Service Delivery on Customer Satisfaction in Bahir Dar City
Administration: The Case of Ginbot 20 Sub-city, International Journal of Public Administration, DOI:
10.1080/01900692.2019.1644520

To link to this article: https://doi.org/10.1080/01900692.2019.1644520

Published online: 31 Jul 2019.

Submit your article to this journal

Article views: 7

View Crossmark data

Full Terms & Conditions of access and use can be found at


https://www.tandfonline.com/action/journalInformation?journalCode=lpad20
INTERNATIONAL JOURNAL OF PUBLIC ADMINISTRATION
https://doi.org/10.1080/01900692.2019.1644520

The Impact of Quality Public Service Delivery on Customer Satisfaction in Bahir


Dar City Administration: The Case of Ginbot 20 Sub-city
Besfat Dejen Engdaw
Governance and Development studies, Bahir Dar University, School of Law, Bahir Dar, Ethiopia

ABSTRACT KEYWORDS
This study is conducted with the general objective of assessing the impact of quality public SERVQUAL; quality public
service delivery on customer satisfaction in Ginbot20 sub-city. To conduct the study correlational service delivery; customer
research design, and quantitative research approach have been employed. A total of 88 samples satisfaction; customer
service provider; Ginbot20
both from customers (68) and service providers (20) were selected using simple random sampling
sub-city
and systematic random sampling techniques respectively. Data were collected using question-
naires. Based on the data collected, the study comes up with certain findings. Among the major
findings, the perception of customers and service providers on quality service delivery and
customer satisfaction is different, responsiveness, tangibility, assurance, and reliability have posi-
tively associated with customer satisfaction. However, empathy has negatively associated with
customer satisfaction. Generally, the likelihood of customers gets satisfied when there is quality
service delivery is 0.84 (84%) while get satisfied with the probability value of 0.038948(3.8948%) in
the absence of quality service delivery.

Introduction services need to be delivered with integrity, centered


around citizens and responsible to their needs, particu-
Public service delivery is a service which is provided by
larly the need of the most vulnerable, promoting
the government to people living within its jurisdiction,
greater transparency and enabling ordinary citizens to
either directly through the public sector or by the
access the quality, adequacy and effectiveness of basic
financial provision of service. (Wikipedia, 2018)
service to voice their needs and preferences (Ringgold,
There have been many problems that can be cited in Alaka, Koziol, & Srinvasan, 2012).
public service delivery process. Among these problems There have been different mechanisms that are used to
inefficiency, ineffectiveness, unresponsiveness, inacces- measure quality service delivery. Among these,
sibility, and unreliability are some of them. As a result SERVQUAL, which is developed by Zeithaml,
of this, countries around the world have been striving Parasuraman and Bery in the 1980s, is the prominent
to promote quality public service delivery, however, and widely used instruments to measure quality service
there is no single way out or solutions. Improving delivery. Originally it was set to measure 10 aspects of
public service delivery requires making policy makers, service quality: reliability, responsiveness, competence,
public servants and service providers accountable to access, courtesy, communication, credibility, security,
citizens and promoting citizens’ engagement and trust understanding or knowing the customer and tangibles.
in public institutions. The inter-connections between However, by the early 1990s, the authors had refined the
institutions, service delivery, and citizens’ trust as well model with five dimensions: reliability, assurance, tangi-
as engagement plays a great role in the provision bles, empathy, and responsiveness (Van der Wal,
of quality public service. (http://www.worldbank.org). Pampallis, & Bond, 2002, p. 325). These instruments are
“It is not enough for the public service to be efficient applied in the study to measure quality service delivery.
and fair; it should also be seen as such. The image of There have been many scientific findings supporting
the public service in the eyes of the public matters quality service delivery has a greater effect the customer
a great deal. Citizens need to feel confident in the satisfaction. The status of customer satisfaction tends to
government that provides public services on their be high as long as the quality service delivery is main-
behalf” (McCourt, 2007). Moreover, quality public tained. Customer satisfaction varies in degree

CONTACT Besfat Dejen Engdaw besfloved@gmail.com Governance and Development studies, Bahir Dar University School of Law, Kebele 16, Tana
Sub-City, Bahir Dar 1709, Ethiopia.
Color versions of one or more of the figures in the article can be found online at www.tandfonline.com/lpad.
© 2019 Taylor & Francis Group, LLC
2 B. D. ENGDAW

depending on service quality provided by the govern- on customer satisfaction in the Ginbot20 sub-city. The
ment and the expectation or perception of customers study specifically aspires to identify the major chal-
on a particular service. Customers derived satisfaction lenges of public service delivery, to assess the impact
from a service when the service is owed complying with of the quality of public service delivery on customer
reliability, assurance, tangibles, empathy, and respon- satisfaction in the study area.
siveness. Customer satisfaction is all about how the
goods and services provided by the government are
aligned with customers’ expectations. The hypothesis of the study
Like other countries in the world, Ethiopia has also (1) Ho: Tangibles doesn’t positively affect custo-
adopted service delivery policy in 2001 with the main mer satisfaction
objectives of; ensuring efficiency and effectiveness of (2) Ho: Empathy doesn’t positively affect customer
service delivery; equity in access to government ser- satisfaction
vices; and ensuring accountability for failure to provide (3) Ho: Reliability doesn’t positively affect custo-
services. Article 6 of the policy paper provides the mer satisfaction
following instruments and direction for public service (4) Ho: Responsiveness doesn’t positively affect
delivery; Formation of mission statement, promoting customer satisfaction
positive attitude towards serving the public, defining (5) Ho: Assurance doesn’t positively affect custo-
eligibility, facilitating easy access, establishing mer satisfaction
a complaints handling mechanism, providing adequate (6) Ho: The perception of customers and service pro-
information, consulting with service users, setting up viders is not different in quality service delivery.
service standards, providing cost-effective services, and
promoting transparency (Bekele, 2009).
In 2001, the government has also enacted the direc-
tive on “complaints handling on public service delivery” Literature review
with the main objectives of providing quick responses to
Public service delivery
customer complaints and collecting feedback. Therefore,
the entire gist of the policy and directive is all about Public service delivery means delivering services consis-
enhancing public service delivery to improve customer tent with citizen preference and whether they were doing
satisfaction. Besides, different reforms, like BPR, BSC, it right providing service of a given quality at the lowest
citizens charter, and deliverology, have been introduced cost to citizens. The current reform agenda in public
to enhance the performance of public sectors which in Administration can be associated to worldwide trends
turn enhances the quality service delivery and at last such as social, political and economic changes in indus-
improving customer satisfaction (Bekele, 2009). trialized countries, which underwent and rightward
However, there have been many research findings indi- shifted during the 1970s and in the early in 1980s as
cating the poor quality of service delivery which in turn political leaders recognized the unsustainable nature of
reduced the satisfaction of customers. Among these, the the compressive centralized system of public service
inconvenience of service location, unpleasant setting delivery (Denhardt & Grubbs, 2003, p. 334).
appearances, incompetent professional employees, unre- According to Gaster and Squires (2003, p. 8) Public
liable and unclear information, untrustworthy of com- services is a term usually employed to mean services
pliant system, unfriendly and uncooperative employees, provided by the government to the citizens, either
inability to align services with customer’s needs, less directly (through the public sector) or indirectly by
responsiveness, and inefficient and ineffective service financing the private provision of the services, and it
delivery process are some of the challenges of quality is associated with a social consensus (usually expressed
service delivery in Ethiopia. A study conducted in 2017 through democratic elections) that certain services
by the Amhara National regional state civil service should be available to all, regardless of their income
bureau confirmed that the status of public service deliv- Public service delivery is the most important element
ery has been rated at lower state. It farther assured that of NPM driven PSRs. Kiragu (2002, p. 6) stated that
there have been a number of challenges that could affect among the factors that caused the failure of the first
the implementation of service delivery policy reforms and second generation of reforms in developing countries
which in turn contributed to undermining the level of was the lack of emphasis on public service delivery. Batley
customer satisfaction (Wondimagegn, 2012). (2004, p. 53) also stated that the major failure of the first
This study is conducted with the main objective of generation reform of the 1980s and 1990s was a mere
assessing the impact of quality public service delivery focus on reforms in the organization rather than on public
INTERNATIONAL JOURNAL OF PUBLIC ADMINISTRATION 3

service delivery, due to the pressure of crisis and structural school of thought which maintains that consumers
adjustments. The third generation reforms emphasized judge the quality of services on two broad aspects:
on public service delivery based on the lessons learned
from the previous reforms. PSRs that fail to emphasize on (1) The service delivery process – the way the
public service delivery is unlikely to be successful. Despite services are performed; and
reforms have been introduced, providing quality public (2) The service outcome – the end-result of the
service become a bottleneck issue. This might probably service.
because of the dynamism and subjectivity of customers’
needs and expectation. Service quality involves determin- The second one, the US school of thought on service
ing whether perceived service delivery meets, exceeds or quality, identifies five service quality dimensions, which
fails to meet customer expectations varies from person to in general correspond most closely to the European
person. According to Agyapong (2011), quality service is process component of the service. These five dimen-
all about customers’ perceptions of how services best meet sions of services quality are reliability, responsiveness,
or exceed customers’ expectations. Generally, quality ser- assurance, empathy, and tangibles.
vice is the extent of the discrepancies between the norma- The above-mentioned schools of thought, in general,
tive expectation of customers on the service provided and agreed with the idea that the quality of services should
the perception of the actual performance of services given be measured or judged by the customers. However,
(Zeithaml, Parasuraman, & Berry, 1990). Hence, service they differ in the techniques or methods of how custo-
quality is determined with customers’ evaluations of ser- mer satisfaction is measured in relation to service qual-
vices available to them (Eshghi, Roy, & Ganguli, 2008). ity. The European school of thought includes both the
From those definitions, we can say that quality public process and outcome of the services to measure quality,
service delivery is the degree by which customers’ percep- while the US school of thought focuses on the process
tion of public service delivery either meets or exceeds aspects of the services.
their anticipations. Besides these, there have been also a number of
theories that try to theorize the relationship between
quality service and customer satisfaction. Among these,
Measuring public service delivery
the expectation disconfirmation paradigm and the per-
Measuring service quality and customer satisfaction is formance paradigm are notable ones. The expectation
a central issue to evaluate PSDRs implementation. It is disconfirmation perspective argues that service quality
the best instrument to check whether the reform pro- should be measured based on the extent by which
gram has been successful or not. However, it is not an service provision meets customers’ expectations. On
easy task. The challenge arises from the absence of the other hand, the performance perspective under-
a universal definition of quality services and measure- states the importance of customers’ expectations in
ment indicators. Gaster and Squires (2003, p. 3) evaluating the quality of service. It rather gives due
explained the challenges as “differences of definition attention to performances. These two debates lead to
and identification of need, conflicts of interests, con- the emergence of two theories called SERVQUAL
straints of finance, arguments about policy, and legal (Parasuraman, Zeithaml, & Berry, 1985; Zeithaml
requirements must necessarily be taken into account in et al., 1988) and SEVPERF (Cronin & Taylor, 1992).
decisions about the extent, nature, and focus of services These are the two prominent measures of service qual-
to and for the public. Therefore any discussion of quality ity and customer satisfaction. Suresuchandar et al.
and its improvements must be within this context.” (2002, p. 363) stated that the SERVQUAL instrument
Chakrapani (1998, p. 4) indicated the difficulties of is the most popular and widely used instrument to
defining quality and suggested to avoid getting into an measure service quality. Leisen and Vance (2001,
academic definition of quality by accepting some opera- p. 309) also indicated that SERVQUAL has been
tional definitions. He stated that “a product or service has applied both in its original and slightly modified form
quality if customer’s enjoyment exceeds their perceived in a number of international service settings. Based on
value for expectation. In a competitive market, the pro- the fact that performance in public sectors as compared
duct or service with the highest quality is the one that with the private sector is fragile and pathetic. However,
provides the greatest enjoyment”. This definition focuses customers’ perception and expectation are very power-
on customer satisfaction to measure service quality. ful to measure service quality in the public sector.
Leisen and Vance (2001, pp. 308, 309) identified two Therefore, as this paper examines quality public service
schools of thought on service quality from a theoretical delivery, the SERVQUAL model is adopted. Brysland
perspective. The first school of thought is, the European and Curry (2001), have argued that deferent literature
4 B. D. ENGDAW

has supported the use of SERVQUAL model in the Ho: Reliability doesn’t affect customer satisfaction
public sector. SERVQUAL was developed in the positively
mid1980s by Zeithaml, Parasuraman, and Bery.
Originally it was set to measure 10 aspects of service H1: Reliability does affect customer satisfaction
quality: reliability, responsiveness, competence, access, positively
courtesy, communication, credibility, security, under-
standing or knowing the customer and tangibles.
However, by the early 1990s, the authors had refined Assurance
the model with five dimensions: reliability, assurance, Assurance is all about the knowledge and courtesy of the
tangibles, empathy, and responsiveness (Zeithaml et al., company’s employees and their ability to inspire trust
1988). Van der Wal et al. (2002, p. 325) elaborated and confidence in the customer towards the service
these five dimensions as follows: company. Trust is very important in quality service
delivery. Employees should treat customers in a way
Tangibles that customers can trust them. Feeling safe and trust
Tangibles involve the company’s or service provider’s are important things that customers looking everywhere.
physical facilities, materials, equipment, dresses of their Customers should not feel puzzled and scared in the
employees, decor and communication materials. service provision process. Empirical research findings
Different empirical research support that tangible is of Abdel Fattah Mahmoud (2015), Ramon Tumiwa
positively associated with customer satisfaction. et al. (2018), Hussein (2016), Suleiman (2011), Iqbal
Empirical research findings of Abdel Fattah Mahmoud et al. (2010), Jamal and Anastasiadou (2009) and Safiek
(2015), Ramon Tumiwa, Nova Mamuaya, and Freddy et al. (2011) show that reliability has positively associated
Kawatu (2018), Hussein (2016), Suleiman (2011), Iqbal with customers satisfaction. Therefore, the paper devel-
et al. (2010), Jamal and Anastasiadou (2009) and Safiek, ops the hypothesis in the following way;
Yaleakho, and Ibrahim (2011) show that tangibles has
positively associated with customers satisfaction. Ho: Assurance doesn’t affect customer satisfaction
Therefore, the paper develops the hypothesis in the positively
following way;
H1: Assurance does affect customer satisfaction
Ho: Tangibles doesn’t affect customer satisfaction positively
positively

H1: Tangibles does affect customer satisfaction Responsiveness


positively Responsiveness involves the willingness of the employ-
ees to help customers and to provide the requested
service promptly. It is the extent to which employees
Reliability are prompted to provide the required services.
Reliability involves the ability of the service providers Employees should always present themselves for custo-
to perform the service accurately and dependable, as mers and show at most of their willingness the help
promised. It depends on the ability of service providers them in time.
in handling customer service issues, executing service Empirical research findings of Abdel Fattah
for the first time, and provides services on time. Mahmoud (2015), Ramon Tumiwa et al. (2018),
Moreover, reliability consists of the right order fulfill- Hussein (2016), Suleiman (2011), Iqbal et al. (2010)
ment accurate Jamal and Anastasiadou (2009) and Safiek et al.
records; accurate quote; right in the bill; Results are (2011) show that reliability has positively associated
more accurate than commissions; keep the promise of with customers satisfaction. Therefore, the paper devel-
service. Empirical research findings of Abdel Fattah ops the hypothesis in the following way;
Mahmoud (2015), Ramon Tumiwa et al. (2018),
Hussein (2016), Suleiman (2011), Iqbal et al. (2010), Ho: Responsiveness doesn’t affect customer satisfac-
Jamal and Anastasiadou (2009) and Safiek et al. (2011) tion positively
show that reliability has positively associated with cus-
tomers satisfaction. Therefore, the paper develops the H1: Responsiveness does affect customer satisfaction
hypothesis in the following way; positively
INTERNATIONAL JOURNAL OF PUBLIC ADMINISTRATION 5

Empathy satisfaction can also be viewed as the future intentions of


Empathy refers to the ability of the service provider to customers towards the service provider, which is more
provide a caring and personalized attention to each cus- or less related to the attitude (Levesque & McDougall,
tomer satisfaction. Employees should treat customers 1996). Recently, there has been a keen interest, especially
equally. Fitzsimmons and Fitzsimmons (2001) suggest in banking, where banks are looking at the lifetime value
that empathy contains approachability, sensitivity, and of the customer base rather than focusing on the cost of
efforts to understand customer needs. Besides, Johnston transactions. Customers perceive services in terms of the
(1997) defined empathy as the ability to make customers quality of the service and how satisfied they are overall
feel welcome, especially by staff contact. Despite some with their experiences (Zeithaml & Bitner, 2003).
empirical findings do not support that empathy has posi- Satisfaction is the consumer’s fulfillment response.
tively associated with customer satisfaction many empiri- Customer satisfaction is influenced by price, product qual-
cal findings confirmed that empathy has positively ity; service quality and brand image (Wirtz & Chew, 2002).
associated with customer satisfaction. Research findings Customer Satisfaction is concerned with Satisfying
of Abdel Fattah Mahmoud (2015), Jamal and customers and needs and interests is the ultimate goal
Anastasiadou (2009), and Safiek et al. (2011) supported of PSDRs (Public service delivery reforms). Unless cus-
that empathy has positively associated with customer tomers are satisfied on provisions of services, it is
satisfaction. Therefore, the paper develops the hypothesis impossible to say PSDR are successfully implemented.
in the following way; The indicators are presented as follows:

Ho: Empathy doesn’t affect customer satisfaction A. Accessibility of services


positively
Predetermined service standards are essential for
H1: Empathy does affect customer satisfaction customers to know about the services they are going
positively to be provided, so that they will be able to complain if
services are not rendered according to the standards. In
addition to this, other information such as office indi-
cators and information desk should be provided to
Customer satisfaction
make services easily accessible to customers. The public
Customer satisfaction is a judgment by the customer on service institutions should serve citizens without dis-
post service delivery. The most popular view of customer crimination at affordable fees.
satisfaction in academia is that customer satisfaction is
the judgment borne out of the comparison of pre-service B. Customers assessment towards the organiza-
provision expectations with post-service provision eva- tional setup
luation of the product or service experience (Oliver,
1997). Customer satisfaction can be borne out of any The organizational factors have a direct impact on
dimension (whether or not it is quality related) and its customer satisfaction. The organizational factors iden-
judgments may arise from non-quality issues (e.g. needs, tified for this study are assessed by customers based on
equity and perception of ‘fairness’) and require experi- the measurement indicators.
ence with the service or provider (Howard & Sheth,
1969; Taylor & Baker, 1994). Strong linkages have been C. Customers assessment towards staff willingness
apparent between service quality dimensions (e.g. speedy and capacity to deliver services
responses to inquiries) and overall customer satisfaction
(Anderson & Sullivan, 1993). Customer satisfaction is Employees who are going to provide services are the
the outcome of purchase and use resulting from the central element to satisfy customers. The willingness of
comparison of the rewards and costs vis-à-vis customers’ employees to help customers and their readiness to respond
expectations and actual performance of the product pur- to customers’ request are essential to the successful imple-
chased in relation to the expected consequences mentation of reforms. The quick service provision, will-
(Anderson, Fornell & Lehmann, 1994). Customer satis- ingness to help customers, service provision as promised,
faction is a measure of the extent that the existing service honesty, knowledge, and skill of the staff are the indicators.
provider is fulfilling the general expectations of Most of the time, it is difficult to determine the percep-
a customer and how far and/or close does the existing tion and expectation of customers with respect to the
service provider come to the customer’s ideal service in services available to them. Hence, the perception and
its mind (Beerli, Martin, & Quintana, 2004). Customer expectation of customers may vary from the perception
6 B. D. ENGDAW

e = the level of error, 0.1


p = sample proportion 0.5
Z = z value for 90% Confidence level, 1.645
The study henceforth distributed a questionnaire to the
respondents. A total of 22 questions were prepared to
measure quality public service delivery and 5 questions
were also prepared to measure customer satisfaction. The
questionnaires were distributed for employees and custo-
mers. The study was intended to use standardized ques-
tions for five indicators (tangibles, reliability,
responsiveness, empathy, and assurance) in quality ser-
vice delivery. The Cronbach alphas for tangibles, reliabil-
ity, empathy, responsiveness, and assurance are 0.66, 0.8,
Figure 1. Conceptual framework for quality service delivery and 0.81, 0.82, and 0.79 respectively. The Cronbach alpha for
customer satisfaction.
customer satisfaction questions is 0.74. This shows that
there is high inter-item consistency among each question
as the values are closer and greater than 0.70.
and expectation of service providers. Service providers Having distributed the questionnaire, data were
may think that they are doing well in making customers collected, interpreted and analyzed. Hence, inferential
satisfied but customers may not be satisfied. Therefore, statistics were used to analyze the collected data.
this paper examined the perception of customers’ expec- Among the inferential statistics t-test (to analyze the
tations and service providers’ expectations. The following whether there is a difference in perception between
hypothesis is developed accordingly customers and service providers on customer satisfac-
tion), chi-square test (to check the goodness of test of
Ho: The perception of customers and service provi- the model which is developed to trace out the impact
ders is not different in quality service delivery. of service delivery on customer satisfaction) and bin-
ary logistic regression (since our dependent and inde-
H1: The perception of customers and service provi- pendent variable are converted into dichotomous
ders is different in quality service delivery. variables the study has to use binary logistic regres-
sion, this model is used to know how likely quality
public service delivery affect customer satisfaction)
Materials and methods are the prominent one. All conditions that are neces-
sary for t-test (i.e. normality test, Levene’s test) and
The study employed correlation research design because binary logistic regression (i.e dependent variable set
the study measures the relation between quality public dichotomous, the goodness of test) were fulfilled
service delivery and customer satisfaction. Hence, correla- before tests were run.
tional research design is helpful in measuring the relation-
ship between thus variables. Both systematic and simple
random sampling techniques have been used in the study. Model specification
Systematic random sampling was employed to draw sam-
ples from Ginbot20 sub-city employees and simple random A logistic regression particularly binary logistic
sampling techniques were also employed to draw samples regression has been used to predict the effect of
from customers in Ginbot20 sub-city. Using these two quality service delivery on customer satisfaction in
sampling techniques a total of 88 (eighty-eight) samples Ginbot20 kebele. In binary logistic regression the
were taken. 20(twenty) samples were taken from Ginbot 20 probability that one variable expressed as a result of
sub-city government employees and the rest 68 (sixty- the prevalence of other variables has been identified.
eight) samples were taken from customers of Ginbot 20 In doing so, the odds ratio and the probabilities
sub-city. based on odds have been used. The odds ratio
The sample size has been determined using the fol- explains the likelihood that the dependent variable
lowing formula will be expressed in a case where the independent
variable exists. Whereas the probabilities for the
z2 :N:p:ð1  pÞ dependent variables to happen following the occur-

ðN  1Þ:ðeÞ þ Z 2 :p:ð1  pÞ rence of the independent variable is computed using
INTERNATIONAL JOURNAL OF PUBLIC ADMINISTRATION 7

either the odds or the coefficients of the binary logis- groups are not similar for the following variables; relia-
tic regression model for the variables. The binary bility (.53666, .93857, f = 7.066, p < .05), Empathy
logistic regression model used in the research is (.51363, 1.1375, f = 14.664, p < .05), Responsiveness
modeled by (.77724, 1.101, f = 6.5, p < .05). Therefore, instead of
  equal variance assumed, the researcher used Levene’s
p
ln ¼ b0 þ bi ðxÞ equal variances not assumed test. However, for the
1p
variables of tangibles (1.03682, .87525 f = 1.042,
Where: Ln = the natural logarithm p > .05), Assurance (.80541, 1.02963, f = 1.318,
P = the short form of p(y = 1)- the probability that the p > .05), and customer satisfaction (.17502, .18466,
dependent variable exists f = 0.532, p > .05) the researcher used Levene’s equal
p
ð1pÞ = the odds for p(y = 1) variance assumed instead of equal variances not
h i assumed. Moreover, looking at the t-test, the study
p
ln ð1pÞ = natural logarithm of the odds for p(y = 1) rejecting the null hypothesis that assumed there is no
Based on this model the researcher computes the prob- statistically significant mean difference different mean
ability that y = 1, meaning the dependent variable between the two groups. It finds out that there is
designated as y will happen as a result of x = 1, mean- a statistically significant mean difference between the
ing the independent variable is occurring. The reason perceptions of service providers and customers on cus-
why I assign X = 1 for the independent or Y = 1 for the tomer satisfaction. Therefore, table 2 indicated that the
dependent variable is because of the data coding pro- perception of service providers and customers is statis-
cess in the Likert scale as the responses (1 = strongly tically different (t = 4.155, p < .05, t = 9.375, p < .05,
disagree to 4 strongly agree) are categorized into two: 0 t = 4.456, p < .05, t = 8.103, p < .05, t = 5.369, p < .05,
for the values ‘strongly disagree and disagree’ in either t = 7.086, p < .05, t = 8.232, p < .05) on tangibles,
case the variable doesn’t exist and 1 for the values/ reliability, empathy, responsiveness, assurance and cus-
responses of ‘agree or strongly agree’ in either case tomer satisfaction respectively.
the variable exists.
Regression analysis
The fit-goodness test of the model is given in the Table 3
Results and discussion
using Hosmer-Lemeshow Chi-square. The researcher pre-
T-test results and interpretation fers Hosmer-Lemeshow Chi-square than Pearson chi-
square test because the later is not precise and suitable to
In the study the researcher aimed at measuring whether
a few observations for each predictor. As shown in the
there is a statistically significant difference between
Table 3, the model’s suitability is determined using the
perceptions of customers and service providers on cus-
difference between the observed and expected values of
tomer satisfaction. Hence, the researcher first checked
the model. Therefore, it was assumed that the model was
the standard deviations for the two groups. The table 1
in agreement with the assumption as p > .05, which is
indicated that the standard deviations for the two
statistically significant and that the null hypothesis was
accepted.
Table 1. Descriptive statistics. In the table 4, a binary logistic regression was performed
Std. Std. Error and a total of 5 variables are treated in the model. The
Variables respondents N Mean Deviation Mean
Tangibles Service 20 3.3500 1.03682 .23184
model which is developed in the study fits well (LR X2
providers 54.410, which is significant at p < .05) and the Pseudo R2
Customers 68 2.2904 .87525 .10614 also confirmed that the independent variables (tangibles,
Reliability Service 20 3.8800 .53666 .12000
providers responsiveness, assurance, empathy, and reliability)
Customers 68 2.3294 .93857 .11382 explained the dependent variable (customer satisfaction)
Empathy Service 20 4.1750 .51363 .11485
providers by 47.65% in the model. Therefore, the model is suitable.
Customers 68 2.7206 1.13750 .13794 The table 4 also showed how much each independent
Responsiveness Service 20 3.6900 .77724 .17380
providers variables explain the dependent variable. As a result of
Customers 68 2.5132 1.10100 .13352 this, one unit changes intangibles would increase 1.54
Assurance Service 20 3.9500 .80541 .18010
providers unit of change in the dependent variable which is signifi-
Customers 68 2.3971 1.02963 .12486 cant at P < .05. At the same time, one unit of change in
Customer Service 20 1.7300 .17502 .03914
satisfaction providers responsiveness, assurance, and reliability would lead to an
Customers 68 1.3588 .18466 .02239 increase in 2.65, 2.12, 2.05 unit of changes in the dependent
8 B. D. ENGDAW

Table 2. Independent sample t-test.


Independent samples test
Levene’s
test for
equality of
Variances t-test for equality of means
95% Confidence
Interval of the
Difference
Sig. Mean Std. Error
F Sig. t df (2-tailed) Difference Difference Lower Upper
Tangibles Equal variances assumed 1.042 .310 4.560 86 .000 1.05956 .23235 .59767 1.52145
Equal variances not 4.155 27.457 .000 1.05956 .25498 .53679 1.58233
assumed
Reliability Equal variances assumed 7.066 .009 7.039 86 .000 1.55059 .22028 1.11268 1.98849
Equal variances not 9.375 55.764 .000 1.55059 .16539 1.21924 1.88194
assumed
Empathy Equal variances assumed 14.66 .000 5.537 86 .000 1.45441 .26267 .93223 1.97659
Equal variances not 8.103 71.286 .000 1.45441 .17950 1.09653 1.81229
assumed
Responsiveness Equal variances assumed 6.500 .013 4.456 86 .000 1.17676 .26409 .65177 1.70176
Equal variances not 5.369 43.726 .000 1.17676 .21916 .73499 1.61853
assumed
Assurance Equal variances assumed 1.318 .254 6.201 86 .000 1.55294 .25043 1.05510 2.05078
Equal variances not 7.086 39.094 .000 1.55294 .21914 1.10971 1.99617
assumed
Customer Equal variances assumed .532 .468 7.992 86 .000 .37118 .04644 .27885 .46350
satisfaction
Equal variances not 8.232 32.491 .000 .37118 .04509 .27939 .46297
assumed

Table 3. Logistic regression model goodness – of – fit test. Table 5. Odds ratio of logistic regression of customer satisfac-
Logistic model for customersatisf, goodness-of-fit test tion and quality public service delivery.
(Table collapsed on quantiles of estimated probabilities) Customer satisfaction Coef. St.Err t-value p-value Sig.
(There are only 8 distinct quantiles because of ties)
Tangibles 4.669 3.366 2.14 0.033 **
number of observations = 88 Reliability 7.817 7.154 2.25 0.025 **
number of group = 8 Responsiveness 14.183 15.692 2.40 0.017 **
Hosmer-Lemeshow chi2 (6) = 3.36 Assurance 8.340 7.765 2.28 0.023 **
Prob> Chi2 = 0.7621 Empathy 0.030 0.047 −2.26 0.024 **
_cons 0.041 0.038 −3.41 0.001 ***
Mean dependent var 0.352 SD dependent var 0.480
Pseudo r-squared 0.476 Number of obs 88.000
Table 4. Logistic regression result on customer satisfaction and Chi-square 54.412 Prob > chi2 0.000
quality public service delivery. Akaike crit. (AIC) 71.784 Bayesian crit. (BIC) 86.648
Customer *** p < 0.01, ** p < 0.05, * p < 0.1.
satisfaction Coef. St.Err t-value p-value Sig. Decision
Tangibles 1.541 0.721 2.14 0.033 ** accepted
Reliability 2.056 0.915 2.25 0.025 ** accepted significant at p< 0.05. This means that when tangibles
Responsiveness 2.652 1.106 2.40 0.017 ** accepted
Assurance 2.121 0.931 2.28 0.023 ** accepted have ascertained the odds of customers to be satisfied is
Empathy −3.500 1.550 −2.26 0.024 ** accepted higher than the odds of dissatisfaction. Hence, the
_cons −3.206 0.939 −3.41 0.001 ***
Mean dependent 0.352 SD dependent var 0.480 conclusion goes supporting tangibles could increase
var customer satisfaction. In the same table, table 5, custo-
Pseudo r-squared 0.476 Number of obs 88.000
Chi-square 54.412 Prob > chi2 0.000 mer satisfaction (Y = 1) would also increase 14.2 times
Akaike crit. (AIC) 71.784 Bayesian crit. (BIC) 86.648
when there is responsiveness (X = 1) than the absence
*** p < 0.01, ** p < 0.05, * p < 0.1.
of it, holding other variables constant, which is signifi-
cant at p < .05. This means that when responsiveness is
variable which is significant at p < .05. However, the model assured the odds of customer satisfaction is higher by
shows anomalies while predicting empathy. It confirmed 14.2 times than the odds of dissatisfaction (Y = 0).
that one unit of change in empathy would lead to Therefore, it is possible to conclude that responsiveness
a decrease in the dependent variable by 3.5. promotes customer satisfaction. The other variable
In the table 5, the odds ratio clearly depicted that the which is inbuilt in the model is assurance. Just like
odds of customer satisfaction (Y = 1) increase 4.7 times the other variables, this variable showed positive asso-
when there are tangibles (X = 1) than the absence of it ciations with customer satisfaction. The odds ratio for
holding other variables remained constant, which is this variable traced that customer satisfaction increases
INTERNATIONAL JOURNAL OF PUBLIC ADMINISTRATION 9

(Y = l) 8.3 times when there is assurance than the Therefore, bo = ln of odds when xi = 0, 0.041:
absence of it holding other variables unchanged, ln0.041 = −3.206 and b1 = ln of odds when x1 = 1, 4.867:
which is significant at p < .05. This means that when ln4.867 = 1.541. b2 = ln of odds when x2 = 1, 14.183:
assurance is maintained, the likelihood of customers to ln14.183 = 2.652, b3 = ln of odds when x3 = 1, 8.339:
be satisfied is higher than the case of Y = 0. Therefore, ln8.339 = 2.121 b4 = ln of odds when x4 = 1, 0.0302:
assurances could likely increase customer satisfaction. ln0.0302 = −3.5, b5 = ln of odds when x5 = 17.817:
In the same table, the likelihood of customer satisfac- ln17.817 = 2.056.To convert the coefficients into odds,
tion(Y = 1) decreases by 0.03 times, which is significant the formula is eb0 for the odds when x = 0 and eb1 for the
at P < .05 when there is empathy, holding other vari- odds xi = 1, hence e°0.041 = −3.206, e1.541 = 4.87,
ables constant. This means that when empathy exists e2.652 = 14.183,e2.121, e−3.5, e2.056, where e = 2.7182
(X = 1) the odds of customer satisfaction(Y = 1) tends Hence, the regression model based on the odds will
to be low and customer dissatisfactions (Y = 0) be developed as;
increases. But the coefficient of the odds for this vari- h i
p
able is remained very insignificant to bring powerful ln 1p = 0.041 + 1.541 × 1 + 2.652x2 + 2.121x3 + (−3.5)
predictive capacity in the model. The last variable x4 + 2.056x5 – is indicated in the regression output
which is computed in the model is reliability. showing the result of coefficients.
Customer satisfaction (Y = 1) increase 7.8 times when To make the analysis more plausible, we have to
there is reliability, which is significant at p < .05 than translate the model into probabilities as follows:
the absence of reliability, holding other variables h i
p
remained unchanged. This means that when reliability ln 1p = b0 + b1x1 + b2x2 + b3x3 + b4x4 + b5x5 take ‘’e”
is uplifted, the likelihood of customer satisfaction tends to the power of both sides
p b0 + b1(x)
to be higher than dissatisfaction (Y = 0). Therefore, 1p = e then calculate the odds for x = 1 and
reliability significantly increases the level of customer x = 0 and compare the probabilities.
satisfaction.
From the table 5, it is clearly indicated that the odds eboþblx1þb2x2þb3x3þb4x4þb5x5
ratio is 4.867, 14.183, 8.339, 0.0302, 7.817. However, as the P¼ forX ¼ 1
1 þ eboþblx1þb2x2þb3x3þb4x4þb5x5
odds ratio doesn’t provide appropriate meanings, we need

2:718283:2058þ1:5408ð1Þþ2:6520ð1Þþ2:1210ð1Þ3:5004ð1Þþ2:0563ð1Þ
P¼ forX ¼ 1
1 þ 2:718283:2058þ1:5408ð1Þþ2:6520ð1Þþ2:1210ð1Þ3:5004ð1Þþ2:0563ð1Þ

2:718283:2058þ1:5408ð0Þþ2:6520ð0Þþ2:1210ð0Þ3:5004ð0Þþ2:0563ð0Þ
P¼ forX ¼ 0
1 þ 2:718283:2058þ1:5408ð0Þþ2:6520ð0Þþ2:1210ð0Þ3:5004ð0Þþ2:0563ð0Þ

to convert the odds ratio into the probability value in the x = 1, 0.840761
following ways. In this case, the regression equation given x = 0, 0.038948
by the following formula is used:
  This clearly depicted that the likelihood of customers
p gets satisfied when there is quality service delivery is about
ln ¼ b 0 þ b1 ð x Þ
1p 0.84 (84%) while get satisfied with the probability value of
0.038948(3.89%) in the absence of quality service delivery.
Where: Ln = the natural logarithm There have been different findings in which different
P = the short form of p(y = 1)- the probability that studies have brought about. For example, Jamal and
y = 1 rather than zero
h i Anastasiadou (2009), confirmed that reliability, tangibi-
p
ln 1p = the odds for p(y = 1) – the probability that lity, and empathy are positively related to customer
y = 1 for a given ‘’ x’’ value, divided by the probability satisfaction. Other findings revealed by Safiek et al.
that y = 0 for that ‘’x’’ value (2011) showed tangibility (β = 0.331) as having the
h i strongest impact on satisfaction. The next most impor-
p
ln 1p = natural logarithm of the odds of food insecurity. tant variable was empathy (β = .267), followed by
10 B. D. ENGDAW

assurance (β = .175) and responsiveness (β = .15). odds of customer satisfaction by 1.54 unit which is
Macharia Shiphira (2012) in the study “Relationship significant at P < .05. At the same time, one unit of
between Service Quality and Customer Satisfaction in change in responsiveness, assurance, and reliability
Retail Banking in Kenya” had come up with the findings would lead to an increase in 2.65, 2.12, 2.05 unit of
that bank executives think that the dimension of banks changes in odds of customer satisfaction which is
being responsive to customer needs was the most significant at p < .05. Looking at the odds ratio,
favored, followed by service reliability and service customer satisfaction would also increase by 14.2
acceptability. Other findings revealed by Suleiman times when there is responsiveness than its absence.
(2011) has confirmed that service reliability, tangibility, Customer satisfaction could also increase by 8.3 times
Responsiveness, and assurance have a significant positive when there is assurance than the absence of it.
relationship with customer satisfaction while empathy Customer satisfaction increases 4.7 times when
was found to have a significant negative effect on custo- there are tangibles than the absence of it. Customer
mer satisfaction. Moreover, Iqbal et al. (2010) show that satisfaction increases 7.8 times when there is reliabil-
the dimension of empathy is negatively related with ity than the absence of reliability
satisfaction while other four dimensions; tangibles, ● Generally, the likelihood of customers gets satisfied
assurance, responsiveness, and reliability are positively when there is quality service delivery is about 0.84
related with the satisfaction. All the dimensions have (84%) while get satisfied with the probability value of
a significant relationship with the satisfaction of custo- 0.038948(3.8948%) in the absence of quality service
mers. Therefore, the findings of this study are comple- delivery.
mentary to Suleiman’s, Hassan Iqbal’s and et’al findings.

Conclusion Acknowledgments
Subject to limited time and budget, the study does focus I would like to acknowledge Absira Anteneh, Essayas Nachce,
only on the five dimensions of quality service using Getachew Mola, Tesfaye Defere and Yigezu Erase for they
SERVQUA model. Hence, future study should focus on have collected the data. Besides, I would also like to acknowl-
other dimensions of service quality using other models. edge all participants who filled out the questionnaires.
Moreover, future studies are encouraged to scope out and
deepening their studies. Generally, in the study, it is
revealed that quality public service delivery and customer
Disclosure statement
satisfaction are highly intertwined. Customer satisfaction No conflict of interest.
is improved when quality service is delivered. Many
research findings proved that quality public service deliv-
ery enhances the satisfaction of customers. Likewise, the References
present study comes up with the conclusion that quality Agyapong, G. (2011). The effect of service quality on custo-
public service delivery affects customer satisfaction in the mer satisfaction in the utility industry – A case of
Ginbot20-sub city office. In the study, among the five Vodafone (Ghana). International Journal of Business and
dimensions of quality public service delivery, except Management, 7(5), 203–210.
Anderson, E., & Sullivan, M. W. (1993). Customer satisfac-
empathy, all the other dimensions have a positive impact
tion, market share, and profitability. Marketing Science, 12,
on customer satisfaction. The study pinpointed the fol- 125–143. doi:10.1287/mksc.12.2.125
lowing findings concerning the impact of quality service Anderson, E. W, Fornell, C., & Lehmann, D. R. (1994).
delivery on customer satisfaction in Ginbot20-sub city: Customer satisfaction, market share, and profitability:
findings from sweden. Market Share, and Profitability:
● Empathy has a negative impact on customer satis- Findings from Sweden, Journal of Marketing, 58(July),
53–66. doi:10.1177/002224299405800304
faction in the study area. The study confirmed that Batley, R. (2004). The politics of service delivery reform,
one unit of change in empathy would lead to journal of development and change. Blackwell Publishing,
a decrease in odds customer satisfaction with by 35(1), 31–56.
3.5. Moreover, customer satisfaction decreases by Beerli, A., Martin, J. D., & Quintana, A. (2004). A model of
0.03 times with the presence of empathy. customer loyalty in the retail banking market. European
● Tangibility, reliability, assurance, and responsibility Journal of Marketing, 38(2), 253–275. doi:10.1108/
03090560410511221
have a positive impact on customer satisfaction in Bekele, B. (2009). service delivery policy of the federal demo-
the Ginbot20- sub-city. The study finds out that, cratic republic of Ethiopia: Policy implementation challenges
a one unit changes in the tangibles would increase and prospects. Addis Ababa, Ethiopia: unpublished.
INTERNATIONAL JOURNAL OF PUBLIC ADMINISTRATION 11

Brysland, A., & Curry, A. (2001). Service improvements in public Oliver, R. (1997). Satisfaction: A behavioral perspective on the
services using SERVQUAL; Managing service quality. Journal consumer. New York, NY: McGraw Hill.
of Service Theory and Practice, 11(6), 389–401. Parasuraman, A., Zeithaml, V., & Berry, L. (1985).
Chakrapani, C. (1998). How to measure service quality & customer A conceptual model of service quality and its implications
satisfaction. Chicago, IL: American Marketing Association. for future research. Journal of Marketing, 49, 41–50.
Cronin, J., & Taylor, S. (1992). Measuring service quality: A doi:10.1177/002224298504900403
re-examination and extension. Journal of Marketing, 56, Ramon Tumiwa, A., Nova Mamuaya, C., & Freddy Kawatu, S.
55–68. doi:10.1177/002224299205600304 (2018). Analysis of service quality and public satisfaction on
Denhardt, B. R., & Grubbs, W. J. (2003). Public administration local government agencies in Manado city. International
an action orientation. Belmont, CA: Thomson Weadsworth. Journal of Business and Management Invention, 7(6), 16–28.
Eshghi, A., Roy, S. K., & Ganguli, S. (2008). Service quality Retrieved from http://www.worldbank.org/en/topic/govern
and customer satisfaction: An empirical investigation in ance/brief/public-service-delivery-global-solutions-group
Indian mobile telecommunications services. Marketing Ringgold, D., Alaka, H., Koziol, M., & Srinvasan, S. (2012).
Management Journal, 18(2), 119–144. Citizens and service delivery: Assessing the use of social
Fitzsimmons, J. A., & Fitzsimmons, M. J. (2001). Service accountability; approaches in human development.
management (3rd ed.). New York, NY: McGraw-Hill. Washington, DC: International Bank for reconstruction
Gaster, L., & Squires, A. (2003). Providing quality in the and development.
public sector: A practical approach to improving public Safiek, M., Yaleakho, A., & Ibrahim, M. (2011). Municipal service
services. Philadelphia, PA: Open University Press. quality and citizen satisfaction in Southern Thailand. Journal of
Howard, J. A., & Sheth, J. N. (1969). The theory of buyer Public Administration and Governance, 1(1), 122–137.
behavior. New York, NY: John Wiley & Sons, Inc. Shiphira, M. W. (2012). The relationship between service
Hussein, A. A. (2016). Service quality practices and customer quality and customer satisfaction in retail banking in
satisfaction in taxi companies in Nairobi (Thesis). Nairobi, Kenya (MBA thesis). University of Nairobi, Nairobi.
Kenya. Kenya: unpublished.
Iqbal, H., Ahmed, I., Nawaz, M., Usman, A., Shaukat, M. Z., & Suleiman, A. (2011). Basic dimension of the SERVQUAL
Ahmad, N. (2010). Impact of Service Quality on Customers' Model and its impact on the level of customer satisfaction:
Satisfaction: Empirical evidence from telecom sector of An empirical study of the Housing Bank in Karak. Jordan:
Pakistan. Interdisciplinary Journal of Contemporary Research European Scientific Journal, 9(1), 21–34.
in Business, 1(12), 98–113. Sureshchandar, G. S., Chandrasekharan, R., & Anantharaman, R.
Jamal, A., & Anastasiadou, K. (2009). Investigating the effects N. (2002). The relationship between service quality and custo-
of service quality dimensions and expertise on loyalty. mer satisfaction–a factor specific approach. Journal of Services
European Journal of Marketing. 43(3/4). 398-420. doi: Marketing, 16, 363–379. doi: 10.1108/08876040210433248
10.1108/03090560910935497. Taylor, S. A., & Baker, T. L. (1994). An assessment of the
Johnston, R. (1997). Identifying the critical determinants of relationship between service quality and customer satisfac-
service quality in retail banking: Importance and effects. tion in the formation of customer purchase intention. Journal
The International Journal of Bank Marketing, 75(4), of Retailing, 2, 163–178. doi:10.1016/0022-4359(94)90013-2
111–119. doi:10.1108/02652329710189366 Van der Wal, R. W. E., Pampallis, A., & Bond, C. (2002). Service
Kiragu, K. (2002). ‘Improving service delivery through public quality in a cellular telecommunications company: A South
service reform: Lessons of experiences from select Sub- African experience. Managing Service Quality, 12(5),
Sahara Africa countries’, Paper presented at the second meet- 323–335. doi:10.1108/09604520210442119
ing of the Design Automation Conference (DAC) Network Wikipedia. (2018). Public_service. Retrieved from https://en.
on Good Governance and Capacity Development. OECD, wikipedia.org:https://en.wikipedia.org/wiki/Public_service
Headquarters, February 14–15. Wirtz, J., & Chew, P. (2002). The effects of incentives, deal prone-
Leisen, B., & Vance, C. (2001). Cross-national assessment of ness, satisfaction and tie strength on word-of-mouth behavior.
service quality in the telecommunication industry. Journal International Journal of Service Industry Management, 13(2),
Service Quality, 11(5), 7–717. 141–162. doi:10.1108/09564230210425340
Levesque, T., & McDougall, G. (1996). Determinants of cus- Wondimagegn, G. (2012). The opportunities, challenges, and
tomer satisfaction in retail banking. International Journal impacts of service delivery reform on women’s empower-
of Bank Marketing, 14(7), 12–20. doi:10.1108/ ment on three selected Amhara regional bureaus
02652329610151340 (Unpublished). Bahir Dar Univerisity, Bahir Dar, Ethiopia.
Mahmoud, A. F. (2015). The impact of service quality dimen- Zeithaml, V. A., Parasuraman, A., & Berry, L. (1990).
sions on customer satisfaction: A field study of Arab Bank in Delivering quality service: Balancing customer perceptions
Irbid city, Jordan. European Journal of Business and and expectations. New York, NY: Free Press.
Management, 7(15), 45–53. Zeithaml., V. A., Parasuraman, A., & Berry, L.L. (1988). A
McCourt, W. (2007). Efficiency, integrity, and capacity: An multiple item scale for measuring consumer perception of
expanded Agenda for public management? In A. Shah service quality. Journal of Retailing, 64(1), 12-40.
(Ed.), Performance accountability and combating corrup- Zeithaml, V. A., & Bitner, M. J. (2003). Service marketing.
tion (pp. 33–55). Washington, DC: The World Bank. New Delhi: Tata MCGraw Hill.

You might also like