SENIOR ESSAY ON THE ASSESEMENT OF SERVICE QUALITY AND ITS EFFECT

ON CUSTEMER SATSIFACTION IN CASE OF ALMEDA TEXTILE FACTORY

AKSUMUNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

In Partial fulfillment FOR THE REQUIREMENT OF BACHELOR DEGREE OF ART

(BA) IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT

PREPARED BY: BEGONESH GENETIE IDNO: AKUR/O111/07

ADVISOR: INSTRACTOR: DAWIT.H

JUNE, 2017
AKSUM, ETHIOPIA
 Table of Contents
Content Page
Declaration…………………………………………………………………………………………I
Acknowledgment………………………………………………………………………………....II
Abstract…………………………………………………………………………………………..III
List of table………………………………………………………………………………..…….IV
CHAPTER ONE..............................................................................................................................1
1. INTRODUCTION.......................................................................................................................1
1.1. Back ground of the study......................................................................................................1
1.2. Background of the organization............................................................................................1
1.3. Statement of the problem......................................................................................................2
1.4. Basic Research question........................................................................................................2
1.5. Objective of the study...........................................................................................................3
1.5.1 General objectives...........................................................................................................3
1.5.2. Specific objectives..........................................................................................................3
1.6. Significance of the study.......................................................................................................3
1.7. Scope of the study.................................................................................................................4
1.8. Limitation of the study..........................................................................................................4
1.9. Organization of the paper......................................................................................................4
CHAPTER TWO.............................................................................................................................5
2. LITERATURE REVIEW............................................................................................................5
2.1The Concept of quality............................................................................................................5
2.2 Description of service............................................................................................................5
2.3 service quality........................................................................................................................6
2.3.1 Types of services.............................................................................................................6
2.3.2 Characteristics of service.................................................................................................6
2.4 Customer service....................................................................................................................7
2.5 The service marketing mix.....................................................................................................7
2.6 Evaluating service quality......................................................................................................8
2.7 Ensuring customer satisfaction and retention........................................................................9
 2.7.1 Customer satisfaction......................................................................................................9
2.7.2 Customer retention /loyalty.............................................................................................9
2.8 Measuring customer satisfaction..........................................................................................10
2.8.1 Need for measuring customer satisfaction....................................................................10
2.8.2 Methods of measuring customer satisfaction................................................................10
2.9 Customer handling...............................................................................................................11
2.9.1 Types of customer handling..........................................................................................12
2.9.2 Introduction to total quality management.....................................................................12
2.10. Definition of total quality management............................................................................12
2.11 Elements of total quality management...............................................................................13
CHAPTER THREE.......................................................................................................................14
3. Research Methodology..............................................................................................................14
3.1 Research design....................................................................................................................14
3.2 Source of data.......................................................................................................................14
3.3 Sample size and sampling method.......................................................................................14
3.4 Methods of data collection...................................................................................................15
3.5 Method of Data Analysis and Interpretation........................................................................15
CHAPTER FOUR.........................................................................................................................16
4. DATA ANALYYISIS AND PRESENTATION.......................................................................16
CHAPTER FIVE...........................................................................................................................29
5. Summary, Conclusion and Recommendation............................................................................29
5.1 Summary..............................................................................................................................29
5.2. Conclusion..........................................................................................................................29
5.3 Recommendations................................................................................................................31
REFERENSES...............................................................................................................................32
APPENDIX....................................................................................................................................32
List of table
Table 4.1 sex of respondents…………………………………………………………………15

Table 4.2 age of respondent………………………………………………………………….16

Table 4.3 educational status………………………………………………………………….16

Table 4.4 the company's equipment quality………………………………………………….17

Table 4.5 the reason for using the company then other………………………………………18

Table 4.6 quality of service delivery………………………………………………………....19

Table 4.7 the time to get service……………………………………………………………...19

Table 4.8 ability of employee to give service…………………………………………………20

Table 4.9 politeness, respect, consideration and friendship of the employee………………....21

Table 4.10 relationship between quality service delivery and employee retention…………....21

Table 4.11 service sufficiency of the company………………………………………………..22

Table 4.12 effect of service quality on customer satisfaction…………………………………22

Table 4.13 evaluation of customer handling…………………………………………………..23

Table 4.14 sound advertisement and promotion to attract new employees……………………23

Table 4.15 relationship between employee the organization…………………………………..24

Table 4.16 the means of communication to attract customer toward the company…………...25

Table 4.17 Response of respondents regarding to what is the base to make

Service quality within the company…………………………………………………………..26

Table 4.18 response of respondents regarding making each worker responsible

For quality of his or her company……………………………………………………………..27

List of figure

Figure 4.1 Factors that affect quality improvement in Alameda textile…………………..……26

Declaration
Begonesh Genetie hereby declare that the research project entitled the Assessment of service
quality and its effect on customer satisfaction a case study of Alameda Textile factory is
submitted by me for the award of Bachelor Degree in logistics and supply chain management
(BA) in Aksum University, is my original work and it has not been presented for the award of
any other Degree, Diploma, other similar titles of any other university.

NAME: BEGONESH GENETIE _____________________ ______________

Signature Date

ADVISOR: INSTRACTOR; DAWIT. H ____________ __________

Signature Date

This Research paper has been submitted for the partial Fulfillment of Bachelor of arts of Degree
in logistics and supply chain management with my approval as a university main advisor.

1. __________________ _______________ _____________

2. _________________ ______________ ____________
Examiners Signature Date
ACKNOWLODGEMET
First and for most, I would like to thanks my Almighty GOD and his, who give me the ability,
willingness and opportunity in my success of life.

I do not have words to express my heartfelt gratitude and indebtedness to my advisor Mr., Dawit
H for his professional assistance, constructive and valuable comments in reviewing, improving,
reading and correcting this paper from the beginning to the end.

I also take this opportunity to express my gratitude and to my family who brought up me with the
best character and support me everything from birth to this remarkable stage, and they helped me
financially and morally not only during conducting this paper, but also in my stay at the campus.

Finally yet importantly, special goes to my friends, all managers and employers of Almeda
textile share factory for their sincere operation in providing reliable and honest information,
which is, help full for this research.
ABSTRACT
This research was conducted in Alameda Textile factory. The main intention of this study was to

assess the problems occur in service quality and its effect on customer satisfaction in case of

ALTEXT PLC. Variables such as service quality, supply and procurement, were being the study

area of the study reveal both the strength and weakness of service quality and its effect on

customer satisfaction. Primary data were collected from 30 respondents who were selected from

employees of the organization through judgmental sampling technique. Regarding methods of

data collection, primary data including questionnaires were used to collect the relevant

information from the target population of Alameda Textile factory. Descriptive type of data

analysis were used, this analysis were supported by graphs, tables and percentage to interpret

the findings. At the end constructive recommendation were taken to the organization on the

areas of improvement needed to alleviate the problems and overcoming the challenges.
CHAPTER ONE
INTRODUCTION

1.1. Back ground of the study

According to (Zelthaml, 1997) defend service quality is a comparison of expectation with the
performance. It is becoming more crucial for companies in the production sector to get loyal
customers, provision of high service quality is necessary in meeting several requirements such as
customer satisfaction and its consequent loyalty, attracting new customers and to increase the
market share and profitability.

The study has investigated how service quality affects customers ‘retention and satisfaction.
Customer creation is a dependent variable which the service provided by a company expectation.

Customer satisfaction is defined as the number of customers or percentage of total customers,

whose reported experience with a firm, it’s while (Helzer & Render, 2008) defined service
quality, is the overall assessment of a service by the customers. The concept of service quality
originates from and confirmation or disconfirmation paradigm.

Customer satisfaction is a term frequently used in marketing .It is a measure of how products and
service supplied by accompany meet or surpass customer expectation. Customer satisfaction is a
term frequently used in marketing .It is a measure of how products and service supplied by
accompany meet or surpass customer product, or its service Textile determines the retention rate
of the customers with the company. ( David & Barnes, 2008)

This provide employee with greater responsibility for product quality and greater satisfaction for
doing their part to achieve quality. When achievement is reinforced through rewards and
recognition, it further increases employee’s satisfaction. In addition to this, in any business
organization, profit is the ultimate goal.

Quality is the measure of how closely a good or service conforms to specified standard. Quality
standard may be anything or a combination of attributes or variable of the product being
manufactured. These attributes include; performance, reliability, appearance and commitment to
delivery time; Variables may be some measurements like length, width, height, diameter,
surface. Quality is the ability of products or services to meet customer’s need. High quality
products or services are the most profitable ( Haizerd & Render 2008)

1.2. Background of the organization

Alameda Textile plc is found at 7 km from the center of Adwa town on the main road to
Aksum .1006km from Addis Ababa and 233km from Mekelle the capital city of Tigray region.
Almeda Textile plc is standing proudly in the middle of beautiful mountainous area; the factory
is directly linked with the main seaport of Djibouti for import export incentive. In addition the
mill site is 236 km far from Aseb Seaport .Alameda textile will be established in 1994 as
manufacturing of wing of Effort group (endowment found for Re-habilitation of Tigray).the
company starts its operation since October 1999 GC.

Currently, altex plc have 5217 workers, from those 4810 are permanent and 407 are temporary.
the vision of altex plc become a best reference and leading textile and garmenting industry and
creating a Hub par excellence in the Textile and garment fields In Africa in general and in
Ethiopia in particular.

1.3. Statement of the problem

Service quality is an important concept .service by nature are based on way they are
marketed .Also the ability to market a given service was helped the business to sustain with in
the highly competitive environment (Asubonteng, et al 1996).

Alameda Textile is one of the base sectors in these senior problem areas that within the Textile
service quality and it’s on effect customer satisfaction assessed. Within this study conducted on
selected companies.

The major problem areas are;

• Poor service and quality of late duration of time between order and delivery additional
customer service as well as ambience conditions.
• the Unavailability of amenity and no unique feature and overall aesthetic qualities
• Inaccessibility of facilities for disabled customer.
 • The insufficiency in the Textile conferment hall and insufficient number of customer
technological facility and service provide.
• The UN availability of sufficient parking space compared to anticipate number of customer.

• The unavailability of recreational centers staff personal grooming unsatisfactory proficiency

to courtesy communication skill that is language proficiency and inadequacy of training.

1.4. Basic Research question

1. What are the factors which affect customer satisfaction of service quality and effect on
customer satisfaction in case of Alameda Textile factory?
2. What is the current level of customer satisfaction of service quality and on effect
customer satisfaction in case of Alameda Textile
3. How the company can maximize its customer satisfaction?

1.5. Objective of the study

1.5.1 General objectives

Assessment of service quality and effect on customer satisfaction in case of Alameda Textile

1.5.2. Specific objectives

Specifically the research is attempted to achieve the following objectives

 To assess the factors which affect customer satisfaction of service quality and its effect
on customer satisfaction in case of Almeda Textile Factory
 To pin point current level of customer satisfaction of service quality and on effect
customer satisfaction on Almeda Textile factory
 To assess the effect of service quality on customer satisfaction
1.6. Significance of the study
Since this study majorly focuses on assessing of service quality and its effect on customer
satisfaction in case of Almeda textile factory. The find of this study was provide the following
significances
 Enables the factory to see its weaknesses and strength concerning customer handling
techniques in relation to satisfying in company service provision therefore it was in
its turn help customers to get better service on wards as to their expectation.
  It helps in creating a better understanding on service quality and satisfaction also it
relation to the company.
 Above all the study was information about the Almeda Textile management team to
reconsider how they are providing service to the customer and thus call them to
improve their service quality and as was to sustain their strength to successfully
satisfy their customers.
 It helps as a bench mark for other junior students

1.7. Scope of the study

This paper was restricted to assessment of service quality and effect on customer satisfaction in
case of Almeda textile factory alone due to various reasons, such as time and financial
constraints. Further the study specifically focuses on examining factors affecting customer
satisfaction and how Alameda textile factory is treating its customers to retain them and as
constant and loyal clients.

1.8. Limitation of the study

Even though the research try to exert full potential, while to conduct this research, the research
was face the following limitations; such problems was lack of transportation, lack of returning
the distributed questioners, lack of willingness to fill the questioner and lack of experience of the
research.

1.9. Organization of the paper

This research consists of five chapters. The first chapter is given to introduction parts, and it
consists of background of the study, statement of the problem, objective of the research,
significance of the study, limitation of the study, scope of the study, limitation of the study and
organization of the study; The second chapter discuss about review of related literature. Under
the third chapter the paper discuss research methodologies those are used on the research. The
fourth chapter analysis present and interpret the data’s collected from the survey. Summery
conclusion and recommendations are discussed under the last chapter. Declaration, Abstract,
acknowledgment Appendix and reference are also available on the paper.
CHAPTER TWO
LITERATURE REVIEW
The review focus on the overview of concept of quality, concept of service ,service quality,
customer satisfaction, and the role of service quality in ensuring customer satisfaction and
method of measuring customer satisfaction.

2.1The Concept of quality

The word “quality” is frequently used to describe products and service. It cannot different
meaning to different people and organizations, and therefore lacks universal definition. In other
words quality is the totality of features and characteristics of a product or service that bears on
it’s to satisfy a given needs. Quality refers to the ability of product or service consistently meet
or exceeds customer’s expectation. Quality mean getting what you are paying for people are
willing to spend more in the hope that the extra money spent will bring them the peace of mind
that comes with service and products that are trust-worthy.

According to David Barnes (2008) quality is generally is agreed to be a good and desirable thing.
Organization invariably describe themselves as being “quality" organizations, and point to the
quality of their product and service.

2.2 Description of service

Bateson & Hoffuan (1999) define service as deeds, efforts or performance. Service as activities,
benefits or satisfaction offered for sale or provided in connection with the sale of goods.

Service is those economic activities that typically produce an intangible product such as
education, entertainment, food and lodging, transportation, insurance, trade, government,
financial, real estate, medical repairs and maintenance like occupation. Add that service could
mean an industry, a performance, an output or offering or a process. As compared to
manufactured products, services are less tangible and less measurable. Services organizations
have a significant proportion of their employs in direct contact with their external customers.
Customers on the other hand view service as an experience of life which consists of element of
core need, choice and emotional content. These services elements are in different service output
and encounters and affects each individuals experience differently. The factors critical to
services include value (benefit at the expense of cost), service quality and in traction.

2.3 service quality

Service quality is a concept that has aroused considerable interest and debate in research. There
are difficulties defining and measuring it with no overall consensus emerging on either. Service
quality as the overall assessment of service by the customer Asuboutrg et al. (1996) it has the
extent to which a service meets customers’ needs or expectations. Service is said to be quality
when it consistently conforms to customer expectation.

2.3.1 Types of services

Parasuraman et.al (1988) develops a service processes matrix and categories service along two
dimensions that significantly affect the character of the service delivery process. The vertical
dimension measures the degree of labor intensity, which is defined as the ratio of labor cost to
capital cost while the horizontal dimension measures the degree of customer interaction and
customization, which is marketing variable that describes the ability of customer to affect
personally the nature of service delivered. The matrix indicates four types of service labeled as
service factory, mass service, shop and professional service.

2.3.2 Characteristics of service

2.3.2.1 Characteristics of service are represented as follows

 Intangibility: the most basic characteristics of service are intangibility. Because services
are performance or actions rather than objects, they can be seen, felt, tasted or touched in
the manner that you can sense tangible goods. For example, health care service ate
actions (such as surgery, diagnosis, examination and treatment) performed by providers
and directed towards patients and their families.
 Inseparability: this refers to the fact that production and consumption of the service are
too closely like to separately. In the term the complication of this are that the customers
personnel is in cost case necessary at time of production and is often involved at the
same time.
  Heterogeneity: because they depend on who provided them when ,where they can
provide service are highly variable service buyers before selecting the service providers
.Service firms can take 3 steps towards quality control: the first inventory in good hiring
and training producers ,the second standardizing the service performance process and
the third monitoring satisfaction through suggestion and complicate system .
 Perish ability: Service can’t be stored i.e. service can’t exist before and after that actual
performance perishes ability described several strategies for producing a better match
between demand and supply in services business .Some of them Per time employee can
be hired to service real demand
Complementary service can be developed during peak time to provide and to waiting
customers Shared service can be developed

2.4 Customer service

Customer service is a task other than common operation that involves interaction with customer
and person or by telecommunication of automatic process. Customer service is a customer care
that seek to acquire new customers, provide superior customers satisfaction and companies can
take to add value to basic goods and services (Kotler, 1996)

The companies must also decide how will serve targeted customers how it will differentiate and
position itself in the market place. A company value promote is a set of benefit of values it
promise to deliver service to customer to satisfy their need. Certain company may sell best
products and service that ultimately determine how successful the business will be the customer
feels goods and they will buy and come back (Kotler, 1996).

2.5 The service marketing mix

The service marketing mix constitutes variable service firm can manage to produce, sales and
obtain profits. This variable can be used to differentiate a firm from its competitor and to build a
competitive advantage .The element of marketing mix include the service outcome (products) the
price, distribution and form image.

1. Service outcome: product component of the marketing mix the outcome of the service. It
casuist of two component
  The technique: is the end of the service or "What" of the service.
 The functional outcome: the process of recurring the service or "how the service was
provided.

2. Price: because service is intangible and experimental nature, the price becomes more
important to customers as we want to expect.

3. Distribution: because of the inherent characteristics of service, distribution becomes more

challengeable. Distribution is the availability and accessibility and accessibility of service to the
customers.

4. Cooperative image: important element in the purchase decision of service is the image
customer having of the firm or organization. Personal experience, word of mouth communicates
image offers of a firm.

5.Promotion : service firms have several means of promoting their, firms advertising sales
promotion and personal selling are the major component , since service are experimental in
nature, promoting a service is more complex than promoting a good.

The major differentiating factor for service companies is quality of customer service. The
customer is dissatisfied if performance is less than expectation. If performance matches
expectations, the customer satisfied. Highly satisfied customers make repeat purchase and tell
other about their goods extrudes with the products. Smart company aim to delight customers by
pronouncing only what they can delivers their delivering more than they promise ( Kotler, 2004)

2.6 Evaluating service quality

Quality is a measure of how closely product confirms to customers ‘needs, wants and
expectation. It is the degree to which a product confirms to customer expectation and
satisfaction.

Evaluating service quality on assessment of the overall performance of an organization is not

enough. This provides little or no insight in to the short coming and excellent part of service
delivery managers cannot take any decision based on such and overall judgments.
Implementing and evaluating service quality is very complex process, because of the intangible
nature of service and the difficulty in measuring customers' expectation and perception. Zelthmal
(1996) believe that content and delivery of service are essential factors for evaluating service
quality. While customers evaluate the quality of delivery, service providers determine the content
of the service.

2.7 Ensuring customer satisfaction and retention

2.7.1 Customer satisfaction

Customer satisfaction is widely used term in business to measure the kind of products and
service provided by company to meet its customer expectation. Customer satisfaction is believed
to be the company's key performance indicators (KPI), particularly when organization complete
for customer.

Literature establishes that customer satisfaction is a key to long term business success (Zelthaml,
1996).To protect gain market shares organization need to outperform competitors by offering
high quality product or service to ensure satisfaction of customers. With companies customer
longevity is achieved through the delivery of high quality service.

Companies need to understand customer’s service requirement and how it impact on service
delivery and customer attitudes.

The ability of company to meet the expectation of customers determines the extent of satisfaction
delivered by customers. Describes customer satisfaction as the measure of extent a company full
fill the general expectation of customer and how far or close does the existing company come to
the customers ideal company in his mind, customer satisfaction can be viewed as the future
intention of customers toward the service provider, which is more or less related to the attitude.
In order to maintain and increase purchases, the company needs to provide value (high quality)
to customers (Anderson et al 1994).

2.7.2 Customer retention /loyalty

Good customer's relationship management creates customer delight. Delighted customers remain
loyal and talk favorably to others about the company and its products. Studies show big
differences in the loyalty of customers who are less satisfied. Even a slight drop from complete
satisfaction can create an enormous drop in loyalty. Thus, the aim of the customer's relationship
management is to create not just customer satisfaction, but customer delight. Companies are
realizing that losing the entire stream of purchases that the customer would make over life time
of patronage. (Kotler, 1996)

2.8 Measuring customer satisfaction

2.8.1 Need for measuring customer satisfaction

In the books marketing management (Kotler, 2000) says that, managing customer satisfaction
efficiently is one of the biggest challenge one organization faces. The marketing concept
emphasizes customer satisfaction yet it is only to last two years that a serious effort had been
made to understand how estate of satisfaction is reached. Customer form expectation based on
past experience: information from social sources and sales presentation and advertising when
using the service they compare these expectations with their experiment to arrive at good level of
satisfaction. The ideal outcome or result is equal or exceed expectations the result is satisfaction
occurs.

Companies that achieve high customer satisfaction rating it make sure that their target market is
known it. A customer oriented company would track its customer satisfaction level each period
and set improving goals. Profit could be change in particular year for many reasons, including
rising costs, falling prices, major new investments and so on but the ultimate sign of healthy
company is that its customer satisfaction is the best indicator of the company’s future benefit.

2.8.2 Methods of measuring customer satisfaction

1. Direct method: it is directly contacting customers and getting their valuable feedback is very
important. The following are some ways by which customers could be directly involved getting
customer feedback through face to face conversation or meeting.

 Direct customer feedback through survey and questionnaire.

 Last customer analysis: companies should contact customer who switched to a
competitor to learn which this happened.

2.lndirect method: the major draw backs of direct method is that it turns out to be very costly
and requires a lot of pre-complied preparations to implement for getting the valuable feedback's
the service organization totally depends on the customer due to which they loses options and
chance to take corrective measure at correct time.

The following are some way by which customers could be indirectly involved.

 Customer compliant and suggestion box system: are the issue and problems reported by
customer to the service organization with regard to any specific period of time then the
performance of the organization is degrading in that specific area or segment, but the
organization is performing well and customer satisfaction level is higher.
 Customer loyalty: it is necessarily required for an organization to interact and
communicate with customers on regular base to increase customer loyalty. In this
interaction and communication it is required to learn and determine all individual
customer needs and respond accordingly. Customers is said to be loyal if he/she resists
the service organization on regular base for purchase, these loyal customer are the
satisfied ones and they are bounded with a relationship with the organization. Hence by
obtaining the customer loyalty index, organization can be indirectly measure customer
satisfaction.

2.9 Customer handling

Customer expectation is increasing daily, customers are better informed and more demanding
than ever before and the competition to obtain and keep these customers is getting tougher by the
minute. The difference between keeping and losing customers depends almost entirely on the
experience that your customer facing staff provides. This unique ,one day, high intensity training
course is totally committed to providing the essential focus, skill and motivation to provide the
highest level of customer care each and every day to keep your customer coming back for more.
(Kotler, 1996)

 The importance of a positive attitude

 How attitude affects your communication
 Basic
 Effective listening
2.9.1 Types of customer handling
According to Kotler (1996), define four different level of relationship to customers. These are re-
defined in terms of service. They can be circumscribed as follows

: The sale person sales the service, but does not contract the customer alone

 Reactive: a person sells a service and encourage the customer to all that he/she has any
question/complaints/
 Accountable: the sales person phones the customer an hour time other to check whether
the service is meeting the customers any service expectations.
 Partnership: the company workers continuously with to discuss ways to affect
customer saving to perform better (Kotler, 1996)

2.9.2 Introduction to total quality management

According to Kesavan (2008) intense focus on both external and internal customers.

 Concern for continues improvement quality can always be improved

 Impalement in the quality of everything the organization does not only related to final
product, but also services, response to compliant and the like.

2.10. Definition of total quality management

According to kesavan (1998) the following are some of the definitions.

1. Total quality management is a way of managing to improve the effectiveness, flexibility

and competitiveness of business.
2. Total quality management is both philosophy and a set of guiding principles’ that present
the foundation of a continuously improving organization.
3. According to Roberta & Russell (1998) total quality management is to make sure that
products and service have the quality they have been designed for, commitment to quality
throughout the organization is required. This approach to management of quality
throughout the entire organization has evolved in to what in required to as total quality
management.
4. Total quality management (TQM) refers to quality emphasis that encompasses the entire
organization, from supplier to customer (Helzer & Render 2006)
2.11 Elements of total quality management
International organization for standardization (ISO) has established four (4) universally
acceptable principles of (TQM)

1 customer focused organization

 Identification of customers (Internal and external)

 Understanding stated and implied needs
 Establishing measures of customer satisfaction
 Efficient processing of customer complaints

2. Leadership

 Leadership should establish unity of purpose and direction.

 Leadership should establish long term vision and strategy.
 Experiment, take risk and learn from the mistakes.

3 Involvement of people

 People at all levels must utilize their fullest abilities for organization objectives.
 They must be trained to build competence where ever required

4. Process orientation

 Planning of process to customer requirement

 Establishment of mechanism to keep process under central
 Verification of product /service for conformance.
 Maintenance/calibration if process equipment’s and instruments.
CHAPTER THREE
Research Methodology

3.1 Research design

The present state of an area investigation to cover wide magnitude in order to obtain precise
information at it occurs it helps that explain the study in terms of the condition. The intention of
the research was used descriptive design because these method is very useful to clearly describe
paper is to describe the assessment of service quality and its effects on customer satisfaction.
Flynn .B et al (1990)

3.2 Source of data

The study was conducted from primary and secondary source of data in gathering relevant
information for the study/the reason why the research used primary data is to collect information
for the specific purpose of data gathering the evidence, data or information expressed in
numerical terms.

The secondary data was collected from the existing literature review of the study. The source of
the secondary data includes Books, articles; obtain from the company’s documents. The reason
why the study uses secondary data is secondary data tends to be readily available and
inexpensive to obtain. (Santos Gupta)

3.3 Sample size and sampling method

The researcher was used non-probability sampling technique mainly by using judgmental
sampling technique. The target populations of this study are customers of Almeda textile factory
and the employee of the company the considered and among those the research services quality
department.

There are 268 employees who work in the quality control department./Company’s broacher/
due to collecting the data from these huge population is difficult, therefore the research selected a
sample size of 50 from employees and related department.
3.4 Methods of data collection
This study used close ended questionnaires for collecting primary source of information for the
research. The reason for using close ended questionnaires uses to obtain more information about
the subject when gathering the data. The research also used close ended questionnaires because
of its easier and less time consuming to complete and easier to analysis.

3.5 Method of Data Analysis and Interpretation

After gathering relevant data through questioner the data was presented and analyzed in to
meaning full ways, such as table and percent. The researcher summarized the respondent’s
responses and concludes them by using quantitative and qualitative ways. (Santosh Gupta)
CHAPTER FOURE
DATA ANALYSIS AND PRESENTATION
In this chapter the data collected from the respondents through questionnaire are analyzed and
interpreted in to meaningful manner. To analysis data in a clear and simple manner, the response
of the respondents were presented with table, graph and the percentage method was used in order
to show the proportion of the response.

The questionnaire was distributed to 50 respondents and 30 questionnaires are returned and 20
questionnaires are not returned on the time. This chapter presents the result and analysis of the
data gathered from the selected samples of the study.

General characteristics of respondents

Table 4.1 sex of respondents

No Item Respondents Percentage

%
1 Sex No
2 Male 21 70%
3 Female 9 30%
Total 30 100%
Source: Own Survey, June, 2017

As the above table 4.1 shows 21(70%) of the employee where male the remaining 9(30%) of the
employee are females. From the above the researcher has concluded that the majority employee
of the company is male.
 Table 4.2 age of respondent

No Item Respondents Percentage%

Age No

18 - 25 3 10%

26 - 35 14 46%

36 -45 8 27%

Above 5 17%

Total 30 100%

Source: Own Survey, June, 2017

According to the result seen from the table 4.2 regarding age,3(10%) of the respondents where
between age 18-25, 14(43.3%) of them are between 26-35 years, 8(27%) of the respondents of
employee are age between 35-45 and the remaining,5(17%) of respondents are above age 45,
based on this data between age 26-35 years take the majority of population of the employee. This
implies that most clients of the company are matured individuals who can well understand the
service levels of the company.
Table 4.3 educational status

NO Item Respondents

Number Percentage (%)

3 Educational status

Illiterate - -

Elementary 15 50%

High school 2 6.6%

Certificate 6 20%

Diploma 3 10%

Degree 4 13.3%

Above degree - -

TOTAL 30 100%

Source: Own Survey, June, 2017

As it can be from table 4.3 regarding educational level of the respondents, 15(50%) of the
employees are studied elementary school, 2(6.6%) of the respondents are high school studied and
6(20%) of the respondents are certificate graduate. The remaining 3(10%) and 4(13.3%) are
diploma and degree graduates respectively. Based on this the majority of the company employed
are elementary school completes. This shows that most of the businesses in company owned by
academically less educated individuals.

Table 4.4 the company's equipment quality

N Item Respondents
o Number Percentage (%)

How do you see the quality of equipment

in Almeda textile company?

Very good 4 13.3%

Good 7 23.3%

Average 18 60%

Poor 1 3.3%

Very poor - -

Total 30 100%

Source: Own Survey, June, 2017

According to the above table the researcher observed, that from the total respondents, 4(13.3%)
of respondents said quality of equipment in the company is very good, 7(23.3%) of them replied
good on quality of equipment, 18(60%) of them said average and 1(3.3) of them said poor .Based
on the response given by the respondents in the above table concerning quality of equipment in
the company majority of respondents said that the quality of equipment is average.
Table 4.5 the reason for using the company then other

No Item Respondents

No Percentage%

Why do you choose ALTEX than other?

Location 16 53.3%

Security 10 33.3%

Technology 4 13.3%

Others - -

Total 30 100%

Source: Own Survey, June, 2017

As the above table shows that 16(53.3%) of respondents replied that they prefer to use the
service because of location 10(33.3%) of respondents choose this company because of security
and 4(13.3%) of respondents choose because of technology .Based on the data majority of
respondents choose the company of nearest to their locations.

Table 4.6 quality of service delivery

NO Item

Number Percentage (%)

How do see the quality of service

delivery in Almeda textile?

Very good 7 23.3%

Good 14 46.6%

Average 7 23.3%

Poor 2 6.6%

Very poor - -

Total 30 100%

Source: Own Survey, June, 2017.

According to the table 4.6 above, regarding quality service delivery level of the company,
7(23.3%) respondents replied that the quality of service delivery of the company is very good,
14(46.6%) of them said good, 7(23.3%) of them said average and 2(6.6%) of the respondents
said poor. Majority of respondents replied that quality service delivery level of the company is
good. This implies that there are many efforts made by the company to improve its service.

Table 4.7 the time to get service

NO Item Respondents

Number Percentage (%)

How long does it take to get service?

Below 5 minute 4 13.3%

5-15 minute 14 46.6%

16-30 minuet 3 10%

31-40 minuet 7 23.3%

Above 2 6.6%

Total 30 100%

Source: Own survey, June, 2017)

According to above table 4(13.3%) of respondents waiting to get service below 5 minutes,
14(46.6%) of the respondents wait 5-15 minutes to get services, 3(10%)of them wait 16-30
minute to get service, 7(23,3%)of respondents wait 31-45 minute to get service and 2(6.6%) of
respondent's wait above 45 minutes to get service. Based on the above data the majority of
employees wait 5-15 minute to get services. This shows that the company has automated many
of its service from traditional time consuming system.
Table 4.8 ability of employee to give service

No Item Respondents

Number Percentage (%)

How do you the ability of employee to

give service?

Very high 4 13.3%

high 10 33%

Medium 15 50%

low 1 3.3%

Very low - -

Total 30 100%

Source: Own Survey, June, 2017

According to table 4.8 regarding employee ability to give services 4(13.3%) respondents said
that the ability of employee to give service is very good, 10,(33.3%) of respondents says
high,14(50%) of them says medium and 1(3.3%) of respondents says low. Based on this data the
majority of employees or respondents replied that the ability of employee to give service is
medium. This shows that some employee need additional training to make the service more
convenient and timely.
Table 4.9 politeness, respect, consideration and friendship of the employee.

N Item Respondents
O NO Percentage
(%)

How do you see the politeness, respect, consideration and

friendship of the employee?

Very high 8 26.6%

High 18 60%

Low 3 10%

Very low 1 3.3%

Total 30 100%

Source: Own Survey June, 2017

As the above 4.9, shows 8(26.6%) of the respondents replied that politeness, respect,
consideration in the company was very high. Besides, 18(60%) of the total response collected
shows high. The remaining 3(10%) and 1(3.3%) of the total respondents said that low and very
low each. Therefore, from the above results presented in table one can conclude that the
politeness, respect, consideration and friendly in the company are high.

Table 4.10 relationship between quality service delivery and employee retention

No Item respondents
No Percentage%
Is there any relationship between
the quality of service delivery and
customer retention?
Yes 30 100%
No - -
Total 30 100%

Source: Own Survey, June, 2017

From above table 4.10 regarding the relationship between quality of delivery and employee
retention, 30(100%) or all of the respondents replied about the existence of relationship between
quality service and retention.

According from the statement we conclude that the company by fulfilling service they want.

Table 4.11 service sufficiency of the company

No Item respondents
No Percentage%
Do you think the company service
quality is sufficient?
Yes 21 70%
No 9 33%
Total 30 100%
Source: Own Survey, June, 2017
 According to table 4.11 regarding service sufficient of the company respondents were asked
whether the company service quality sufficient or not, accordingly,21(70%) of the respondents
said yes and the remaining 9(30%) of them replied the service they get from the company is not
satisfying as it out to be.

Table 4.12 effect of service quality on customer satisfaction

No Item Respondents
No Percentage%
Does service quality have any
effect on customer satisfaction?
Yes 25 80.4%
No 5 19.6%
Total 30 100%

Source: Own Survey, June, 2017

As shown on the above table 4.12 concerning the effect of service quality on customer
satisfaction 25(80.4%) of respondent replied yes and the left 5(19.6) responded no. Leading to
conclusion, the majority of the respondent replied yes on clients.

Table 4.13 evaluation of customer handling

No Item Respondents
No Percentage%
Do you think the company
manager solve customer
complaint?
Strongly disagree - -
Disagree - -
Neutral 5 16.6%
Agree 10 33.3%
Strongly agree 15 50%
Total 30 100%

Source: Own Survey, June, 2017

From table 4.13 above, concerning the efforts of the management in addressing the complaints of
the employee, 5(16.6)of the respondent replied that they are indifferent, 10(33.3) of the
respondents answered that the management of the company timely and properly solves the
complaints of the employees, whereas about 50% of the respondents strongly agree that the
management of the company solves complaints of the clients .This implies that the management
than of the company is doing their level best to address the complaints of the employees.

Table 4.14 sound advertisement and promotion to attract new employees.

No Item Respondents

No Percentage%

Do you think the company

manager solve customer
complaint?

Strongly disagree - -

Disagree 8 26.7%

Neutral 5 16.6%

Agree 10 33.3%

Strongly agree 7 23.3%

Total 30 100%

Source: Own Survey, June, 2017

From table 4.14 sound advertisement and promotion, 8(26.6%) of the respondents are disagree.5
(16.7) of the responded replied neutral and the remaining 10(33.3) and 7(23.3) respondent are
said agree and strongly agree respectively. The data most of the respondent stated that the
majority of the respondent agree with availability of sound advertisement and promotion to
attract new employees.
Table 4.15 relationship between employee the organization

NO Item Respondents

Number Percentage (%)

Does the organization has close

relationship with its customer?

Strongly disagree - -

Disagree - -

Neutral 6 20%

Agree 10 33.3%

Strongly agree 14 46.7%

Total 30 100%

Source: Own Survey: June, 2017

From table 4.15 regarding whether the company has close relationship with the employees,
6(20%) of the respondents replied that they are indifferent neutral, 10(33.3) of the respondent
agreed that the organization has close relationship with its employee, the remaining 14(46.6%) of
respondents have strongly affirmed that the organization has close relationship with the clients.
Those show that generally there is good relationship between the companies its employees.
Table 4.16 the means of communication to attract customer toward the company

NO Number Percentage (%)

What the means of communication to attract customer toward the company?

Advertising 4 13.3%

Customer 8 26.6%

Employee 15 50%
 Others 3 10%

Total 30 100%

Source: Own Survey, June; 2017

As the above table indicates that 4(13.3) of respondents replied that advertising and 8(26.6%) of
respondents replied that customers and 15(50%) of respondents choose employee and 3(10%)of
respondents .choose other is any. Based on the data majority the respondents choose the
company communication to their employees.

Figure 4.1 Factors that affect quality improvement in Alameda textile

50
45
40
35
50
30
25
36.6
20
15
10
5 13.3 13.3

0
lack of professional lack of capital lack of mdoenr lakc of training
technolgoy

Source: Own survey, June; 2017

Figure 4.1 comparison of factor that affects service quality practice professional according to the
graph 4.1 most of the respondents 15(50%)out of 30 respondents that lack of professional
personal was the major factors that affect service quality in their company. This means that the
absence of professional personal leads to less service quality in the input and output level. Some
of the other respondents responded that lack of training problem as a factor affect service quality
contributing in the company 11(36.6%) out of 30 respondents. Also lack of capital and lack of
modern technologies 4(13.3%) out of 30 respondents) with equal weight responded that there
was lack of capital and lack of modern technology.

 According to response of the manager, the factors that affect service quality
almost that internal factor likes.
 Lack of knowledge and skill from the starting up to the end of the process
 Lack of training
 Lack of proper maintenance

Table 4.17 Response of respondents regarding to what is the base to make service quality
within the company

No Description Frequency Percent

Profitability of the company 5 16%
Customer satisfaction 20 67%
Product performance 5 16%
Other - -
Total 30 100%

Source: Own Survey, June; 2017

As described in the above table 4.17 the majority of the respondents responded 20 (67%) out of
30) that the companies use customer satisfaction as a base to service quality practice. But few of
the respondents 16% responded that the company use profitability of the company.

Table 4.18 Response of the respondents regard making each worker responsible for quality
of his or her companies.
 No Description frequency Percentage% Source:
Own Yes 20 67 Survey,
June, No 10 33 2017
Total 30 100
From the
above table 4.18 majority of respondents 20(67%) out of 30 respondents responded that is letting
each worker responsible for quality of his or her work. But few number of respondents out of
10(33%) respondents) responded that there was no letting each worker responsible for quality of
his or her work.

Table 4.19 do you think the facilities in the company are suitable for disable customers?

No Item Respondents

Number Percentage (%)

1 Do you think the facilities in the company are suitable for the disables customers?

Yes 20 66.6%

No 10 33.3%

Total 30 100%

Source: Own Survey, June, 2017

In a company business, different kinds of customers could visit the company and it is essential
that they have access to every service. These employees could be disabled; as they are employees
the company should be suitable for them to easily access it too. Item, on this issue 20(66.6%)
employees yes 10(33.3%) know that the company is suitable for the disables. This implies that
aside from the agree responses there treads to be that much of access for the disabled customer.
CHAPTER FIVE
Summary, Conclusion and Recommendation
This chapter deals with summary, conclusion and recommendation based on the data analyzed in
previous chapter. Summary of finding are presented to put the major finding of the study.
Generally conclusion of the major finding of the study is given and finally recommendations are
forwarded for addressing the problems encountering the company.

5.1 Summary
Based on the detail analysis made in the preceding chapter, the following major findings of the
study have been summarized.

Summary of data gathered from employees

 The study result indicates that majority of employees is male and most of them are
between 26-36 years.
 Almost all employees of the company and first degree holders.
 About of the respondents consider the equipment quality of the company averagely
satisfying.
 Most of the respondent replied that the reason why they choose this company is mainly
because of its vicinity.
 Majority of respondents of them said that the quality of service delivery of the company
at good level.
 Majority of the respondents replied that they have to wait for about to get services.
 Majority of the employees strongly agree on solving customer complaint properly and at
right time.
  Most of the employee replied that agree on the availability of sound advertisement and
promotion to attract new employees.

5.2. Conclusion

Generally from the finding the researcher reached at the following point.

 Most of the respondents consider the equipment quality of the company averagely
satisfying
 Most of the respondents replied that the reason why they choose this company is
mainly because of its vicinity.
 Majority of the respondents of them said that the quality of service delivery of the
company at good level.
 Majority of the respondents replied that they have to wait for about 5-15 minutes of
get service.
 Most of the respondents the ability of employee to give service medium
 Majority of the respondents high the politeness, respect, consideration and friendship
of the employees.
 The companies have any relationship between the quality of service delivery and
customer retention.
 The company have service quality is sufficient.
 The company has service quality have any effect on customer satisfaction.
 Majority of the employees strongly agree on solving customer compliant properly and
at right time.
 Most of the employee replied that agree on the availability of sound advertisement
and promotion to attract new employee.
 Majority of the respondents strongly agree has close relationships with its customer.
 Most of the employee means of communication to attract customer toward the
company.
  The most factors that affect quality improvement in Alamed textile is lack of
professional.
 Most of the respondents the base to make service quality with the company is
customer satisfaction.
 The company have the respondents regarding make each worker responsible for
quality of his or her companies.
 The facilities of the company have a suitable for the disable customers.

5.3 Recommendations
Based on this fact and the finding of the study the following recommendations are proposed to
help improve customer satisfaction at the company.

 The deviation between customer expectation and actual time they spent for getting
service is high, thus it is recommended that that company would solve it if it assign
enough employees to minimize the service waiting time.
 To make that try to give its best services in order to meet the customer satisfaction.
 Preferable that the company work hard on relationship marketing to improve the
customer service.
 It is advisable that all staff employees of the company understand the performance of the
company is directly related linked with customer satisfaction.
 The company should be recommended that the company put effort in dealing with
customer satisfaction through expanding technologies.
 The company should be keeping the promise for customers contributes in attracting as
well as retained loyal customers of the company, it is advisable that the employee of the
company respect the promise by telling only the truth about their service.
REFERENSES
Anderson. I w and et al (1994).Customer satisfaction, market share and profitability
5thedition.Journal of marketing, Washington Dc.
Asubonteg p. MC Cleary, &Swan, (1996) Serval; critical review of service quality the
Journal of service marketing. Prentice Hail
Christian Gronroos,( 1982) .Strategic management and marketing in service sector.
2nd edition, Mel’s up publisher LTD.
David Barnes (2008) Operation management2nd edition. England, Great Britain
Helzer Render (2008) Principles of operation management 8th edition Arson Prentice Hill
Parasurramanet. (1988) Marketing management; 9th edition Reprinted by permission of
American marketing Association
Kotler. P (2004). Principle of marketing.10thedition prentice Hall of India private limited New
Delhi.
R.Kesevan, C.Elanchezhian (2008) Total quality management International publishing
housput.Ltd.
Roberta R, Russell& Bernard W, Tyler (1998) Operation management 7th edition printed at
Choudhury press New Delhi
Roger G and McGraw-Hill (1997).Fundamental of operation management4theditions
American New York
Zelthmal Van and BituerJ.M (1997). Service marketing integrated customer focus across the
firm First European edition
 APPENDIX

AKSUM UNIVERSITY

COLLGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND SUPPLYCHAINMANAGEMNT
Dear respondents

The purpose of this study is to assess the Service quality and its effect on customer satisfaction in
Almeda textile factory. This questioner is meant secure relevant data to the study, which is
believed to come up with valuable recommendation for problems observed. Therefore, your
genuine support in responding to the raised questions has prominent importance for the
attainment of the study’s objectives.

Note, you can answer the close ended part of the questioner just by putting “x” marks in
the space provided

*You need not put your name

N.B. your name is not requested.
I would like to thank you in advance!

General characteristics of respondents.

1. Sex A. Male B. female

2Age A.18-25 B.26-35

C.36-45. D .above 45

3. Educational status:

A. Literature B. elementary

C. high school D. certificate

E. diploma F degree

G. above degree

4 .How do you see quality of equipment of Alameda Textile?

A. very good B. good

C. average D .poor

E .very good

5. Why do you choose Alameda Textile than other company?

A. Location B. Security

C. Technology D. other specify................

6. How do you see the quality of service delivery in Alameda Textile Company?

A. very good B. good

C. Average D. poor

7. How long does it take to get service from company?

A .Below 5 minute B 5-15 minute

C. 16-30 minute. D.31-45 minute

8. How do you rate the ability of employee to give service quality?

A. Very high B. high

C. Medium D. Low

9. How do you see Politeness, respect, consideration and friendly of the employee is

A .very good B. high

C. low D .very low

10. Is relationship between quality service delivery and customer retention?

A. Yes B. No

11. Do you think that the Alameda service quality is sufficient?

A. Yes B .No

12. Does service quality have any effect on customer satisfaction?

A. Yes B. No

13. Do you think the company manager solve customer complaint?

A. strongly agree B. Agree

C. Neutral D. disagree

E. Strongly disagree

14. Is there any sound advertisement and promotion to attract new customer?

A. strongly agree B. Agree

C. Neutral D. strongly disagree

E. Disagree

15. The organization has close relationship with its customers?

A. Strongly agree B. Agree

C .Neutral D. Disagree

E. Strongly disagree

16. What are the means of communication to attract customers toward the company?

A. Advertising B. Customer
C. employee D. other specify.....................................................

17. Is the company making each worker responsible for quality of his company?

A. yes B. No

18. What are the factors affecting service quality in your company?

A. Lack of professional personnel B. Lack of capital

C. Lack of modern techno

D. Lack of training

E. Other specify………………………………………………

19. Do you think the facilities in the company are suitable for disabled customers?

A. Yes B. No

20. What is your base to make service quality?

A. Profitability of the company C. Product performance

B. Customer satisfaction D. Other specify…………………………