DEBREBRHAN UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT MASTERS OF BUSINESS ADMINISTRATION

The Impact of Service Quality on Customer Satisfaction in case of ethiotelecom

Debrebirhan Town.

BY

Zeleke Moges

Research Advisor: Dejene Tulu (PhD)

June 2018

Debre Birhan
 DECLARATION

I hereby declare that this project work, “The Impact of Service Quality on Customer Satisfaction of

Ethiotelecom in Case of Debrebirhan Town ”, done by me for the partial fulfillment of Masters of

Business Administration [MBA] at Debrebirhan University is my original work and not submitted earlier for

any degree either at this University or any other University.

Zeleke Moges

Student ID: PGBEE/101/08 Signature --------------------------- Date------------------------

Certified by:

Advisor: Dejene Tulu (PhD) Signature ---------------------------- Date-----------------------

I
 ACKNOWLEDGEMENT

First and for most, I would like to give my glory and praise to the Almighty GOD for his invaluable cares and

supports throughout the course of my life and helped me since the inception of my education to its completion

and enabled me to achieve my career.

Next, Thanks goes to my Advisor Dr. Dejene Tulu for his valuable support while conducted this research.

Especially for his prompt advice, follow up and useful criticisms.

Finally, I extend my appreciation to all of the respondents who participate in this research project.

II
 List of Abbreviation and Acronyms

ETA---------------------------------------------Ethiopia Telecommunication Authority

ETC---------------------------------------------Ethiopia Telecommunication Corporation

FDRE ----------------------------------------- Federal Democratic Republic of Ethiopia

GDP ------------------------------------------- Gross Domestic product

ITTC -------------------------------------------International Telephone and Telegraph Corporation

ITU -------------------------------------------- International Tele communication Union.

MLRA ------------------------------------------Multiple Linear Regression Analysis

MSAG--------------------------------------------Multi Service Access Gate way

NGN -------------------------------------------- Next Generation Network

PTO --------------------------------------------- Public Telecommunication Operator

RATER-------------------------------------------Reliability, Assurance, Tangibility, Empathy, Responsiveness

SPSS --------------------------------------------- Statistical Package for Social Science

SQ ------ ---------------------------------------------- Service Quality.

III
List of Figure

Figure 2.1 Service quality gap

Figure 2.2 Servqual Model

Figure 2.3 Independent & dependent Variable

Figure 3.1 Scatter plot Linearity assumptions Measures

List of Tables

Table 3.1 Respondent Rate

Table 3.2 Reliability test statistics

Table 3.3 Normality distribution Measures through Skewness and Kurtosis

Table 4.1 Frequency statistics of respondent Characteristics

Table 4.2 Frequency statistics of dependent Variable

Table 4.3 .1 Frequency Statistics of Tangibility

Table 4.3 .2 Frequency Statistics of Reliability

Table 4.3.3 Frequency Statistics of Responsiveness

Table 4.3.4 Frequency Statistics of Assurance

Table 4.3.5 Frequency statistics of Empathy

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Table 4.4 descriptive statistics of Service Quality and Customer satisfaction

Table 4.5 Correlation Results of Service quality dimension and customer satisfaction

Table 4.6 Regression of variable Model summary

Table 4.7 Regression of Variable Coefficients

Table 4.8 Average Gap Score on expectation

Table 4.9 Ranked service Quality Dimension and its Average Score

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Contents
DECLARATION .......................................................................................................................................................................... I

ACKNOWLEDGEMENT ............................................................................................................................................................. II

List of Abbreviation and Acronyms ........................................................................................................................................ III

List of Figure ........................................................................................................................................................................... IV

List of Tables .......................................................................................................................................................................... IV

ABSTRACT ............................................................................................................................................................................... IX

CHAPTER ONE ......................................................................................................................................................................... 1

1.1 INTRODUCTION ................................................................................................................................................................. 1

Historical Back Ground of ethio Telecom and its Organizational Evaluation .................................................................... 1

1.2Back Ground of the Study .............................................................................................................................................. 3

1.3 Statement of the problem .............................................................................................................................................. 4

1.4 Research Question......................................................................................................................................................... 6

1.5 Objectives ..................................................................................................................................................................... 6

1.5.1 General objectives .................................................................................................................................................. 6

1.5.2 Specific Objectives ................................................................................................................................................ 6

1.6 Scope of the study ......................................................................................................................................................... 7

1.7 Significance of the study ............................................................................................................................................... 7

1.8 organization of the paper............................................................................................................................................... 7

CHAPTER TWO .................................................................................................................................................................... 8

Review of Related Literature .................................................................................................................................................. 8

2.1 Introduction ................................................................................................................................................................... 8

2.2 Service quality .............................................................................................................................................................. 9

2.3 Importance of Service Quality .................................................................................................................................... 10

2.4Service Quality Gap ..................................................................................................................................................... 11

2.5 Service quality and customer satisfaction ................................................................................................................... 15

2.6 Customer’s satisfaction ............................................................................................................................................... 16

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 2.7 Importance of Customers Satisfaction ........................................................................................................................ 18

2.8 Relationship between Service Quality and Customer Satisfaction ............................................................................. 19

2. 9 Factors that Influence Customer Satisfaction ............................................................................................................ 20

2.10. Variables and their Measurements ........................................................................................................................... 20

2.11 SERVQUAL-Conceptual Model of Service Quality ................................................................................................ 21

CHAPTER THREE .............................................................................................................................................................. 23

3. RESEARCH METHODOLOGY ...................................................................................................................................... 23

3.1 Introduction ................................................................................................................................................................. 23

3.2 Research Method ........................................................................................................................................................ 23

3.3 Measurement; .............................................................................................................................................................. 25

3.4 Sample size ................................................................................................................................................................. 25

3.5 Types and Sources of Data.......................................................................................................................................... 26

3.6 Questionnaire Design .................................................................................................................................................. 26

3.7 Sampling and Data Collection; ................................................................................................................................... 27

3.8 Respondent Rate ......................................................................................................................................................... 28

3.9 Reliability Statistics Analysis ..................................................................................................................................... 28

3.10 Test of Regression Assumptions; .............................................................................................................................. 29

Assumption 1 -Normality Distribution ......................................................................................................................... 29

Assumption 2 -Linearity Relationship .......................................................................................................................... 30

3.11 Method of Data Analysis .......................................................................................................................................... 31

3.12 ethical Consideration ................................................................................................................................................ 33

CHAPTER FOUR ................................................................................................................................................................. 34

DATA ANALYSIS AND PRESENTATION ...................................................................................................................... 34

4.1 Introduction ................................................................................................................................................................. 34

Respondents back ground information ............................................................................................................................. 35

4.4 Descriptive Analysis of Variables............................................................................................................................... 45

4.5 Correlation Analysis of dependent and independent variable ..................................................................................... 46

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 4.6 Regression Analysis .................................................................................................................................................... 47

4.8 Gap Score analysis of service Quality Dimensions that Brings Satisfaction. ........................................................... 51

CHAPTER 5 ....................................................................................................................................................................... 58

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ......................................................................................... 58

5.1 Summary ..................................................................................................................................................................... 58

5.2 Conclusions ................................................................................................................................................................. 60

5.3 Recommendations ....................................................................................................................................................... 65

5.4 Future Suggestion of the study.................................................................................................................................... 67

5.5 Limitation of the Research .......................................................................................................................................... 67

Reference .............................................................................................................................................................................. 67

Appendix1 ............................................................................................................................................................................. 73

. FIXED LINE RESOURCE DATA AT DEBREBRHAN TOWN.................................................................................. 73

Appendix 2 ............................................................................................................................................................................ 74

Questionnaire; ................................................................................................................................................................... 74

Appendix 3 ............................................................................................................................................................................ 86

GAP SCORE ANALYSIS ................................................................................................................................................ 86

Appendix 4 ............................................................................................................................................................................ 87

GAP SCORE ANALYSIS ................................................................................................................................................ 87

Appendix 5 ............................................................................................................................................................................ 87

The Expectation Questionnaire ......................................................................................................................................... 88

Appendix 6 ........................................................................................................................................................................ 89

The Perception questionnaire;........................................................................................................................................... 89

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 ABSTRACT

This study has aimed to determine the impact of service quality on customer satisfaction, to examine service

quality dimensions that bring satisfaction to ethio telecom customer and to identify what should be done to

improve customer satisfaction of ethio telecom Land line Phone service. Mixed research approach has been

used for this study in order to understand the problem well and giving appropriate feedback. The basic premise

of this methodology is that such integration permits a more complete and synergistic utilization of data than do

separate quantitative and qualitative data collection and analysis. Since this study aim specific practical

question and interest of understanding the impact of service quality on customer satisfaction, Descriptive

Design is being used. The reason behind using descriptive research design is because the researcher is

interested in describing the existing situation under study. (Creswell, 1994) stated that the descriptive method of

research is a technique of gathering information about the present existing condition. there is a significant

positive relationship between the five dimensions of service quality and customer satisfaction, the

highest correlation is between tangibility and customer satisfaction the weakest correlation is between

assurance and customer satisfaction. all the dimensions show a wide gap between expected service and

perceived service and this means that ethiotelecom must work hard and strive for the better change of

service quality in order to build satisfied customer the case of Ethiotelecom Debrebirhan town.

Key words: Tangibility, Reliability, Responsiveness, Assurance, Empathy, Customer Satisfaction

SERVEQUAL model.

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 CHAPTER ONE

1. INTRODUCTION

1.1 Historical Back Ground of ethio Telecom and its Organizational Evaluation

Telecommunication is defined as the science and technology of communication over a distance. The ability to

convey information quickly, accurately, and efficiently has always been one of the main focuses driving human

innovation. The history of telecommunication began with the use of smoke signals and drums in Africa, the

Americas and parts of Asia. In the 1790s, the first fixed semaphore systems emerged in Europe; however it was

not until the 1830s that electrical telecommunication systems started to appear.

Telecommunication service introduced in Ethiopia by Emperor Menelik Ц in 1894 when the construction of the

Telephone Line from Harar to the capital City Addis Ababa was commenced. However the first Ethiopian

pioneer of telephony was his cousin Ras Mekonnen who came back with telephone apparatus in 1889 after his

visit of Italy and established a company.

The company was placed under government control at the beginning of the twentieth century, and was later

brought to operate under the auspices of the Ministry of Post and Communications. In 1952,

telecommunications services were separated from the postal administration, and structured under the Ministry

of Transport and Communications.

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The Ethiopian Telecommunications Corporation is the oldest Public Telecommunications Operator (PTO) in

Africa. Available records of the time have shown that by early 1930’s a Total rate distance of about 7000 km of

Interurban Network was existed and no less than 170 towns and village were connected to the network Latter

in 1932 , Ethiopia became a member of the international Telecommunication union (ITU) immediately before

the Italian invasion of 1935 Radio communication was introduced following the establishment of radio Circuit

Links with Djibouti ,Aden, Cairo and London. the structure was revised in 1962, 1964, 1967, 1970, and 1972 to

make a major change of Technology ranging from Automatic to Digital Technology through Successive

Telecommunication development programs.

The original set up of restructuring 1996 Telecom service are provided in most efficient and effective manner to

customer. The corporation (1996) has enhanced the development of telecom infrastructure and quality of

service in both rural and Urban areas in the most efficient and timely manner. In 2005, ETC installed a national

fiber optic backbone comprising 4 000 kilometers radiating out in six major directions from the capital (to Dire

Dawa, Djibouti, Dessie , Mekele, Bahir Dar ,Nekemte, Jimma and Awassa), laying a foundation for delivering

current and future services including digital radio, TV, Internet, data and other multimedia services. In order to

increase the service capacity, reliability, quality, speed and size of data transfer, ETC transferred from

narrowband to broadband service in January 2005.

The Ethiopia government has decided to focus on the improvement of telecommunication services, considering

them as a key lever in the development of Ethiopia and Ethio telecom was born, on Monday 29th November

2010, from this ambition of supporting the steady growth of our country.

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1.2Back Ground of the Study

This study deals on the evaluation of the impact of Service quality on customer satisfaction. Telecommunication

service play significant role in all round political, economic and social. The service economy is emerging as a

dominant contributor of the Gross Domestic Product (GDP) of many countries in the world and their major

source of employment. In this connection Mayer, et al (2009) stated that 70 percent of today’s world economy

is service based economy. The steady growth of the service economy necessitated a paradigm shift of emphasis

in marketing science from focusing on the manufacturing and transactions of sales to the understanding and

Management of consumer behavior and service relationship (Trust and Chung, 2006). The capability of

business firms to attract and retain customers by meeting their requirements and expectations became the

determinant factor for their survival and this task demands a customer focused business strategy and practice.

The Remarkable development in Telecom Technology has made people to communicate across distance share

information and do business. Oodan et al., (1996) further explained that the availability and reliability of

telecom services affect the success of business and social interaction which rely on the service provider.

This research is distinguished from the other research; no research or study conducted before in the studied area

with the scope of Land Line Phone service with this title, The other one reason is to say this research is differ

from the other researcher even if they had made on this title, most of the research work especially in service

provider organization is done either with Quantitative or Qualitative approach but, I have used Mixed approach

in order to understand the problem well and giving appropriate feedback. The other one difference is the

researcher added in this study in addition to the main Variable question, topic related question in line with the

respondent back ground information in order to make the research finding and conclusion more understandable.

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The other one difference of this study from the other research work in Measurement tools, most of the research

work is done only focusing on the perception of the customer using SERVPERF model, while I have used

SERVQUAL model in order to measure both the customer expectation and perception. Knowing customer

expectation is help for the service provider to know and understand the customer interest which makes them

satisfied. Therefore, this study has examined the impact of service quality on customers’ satisfaction.

1.3 Statement of the problem

Ethio telecom is a state owned and the only one telecommunication service provider in Ethiopia. Its vision is

being a customer centric company offering the best quality of service which meets world class standards and

building a financially sound company .in this goal ethio telecom has been investing in telecom networks and

Technologies in order to modernize the telecom service in all service.

Currently ethio telecom provides Various Lines of Telecom Service in the country, from those service Fixed

Line or Land line Phone Service is the oldest service of ethio telecom has been providing from its established

time .even if ,the company has done various reform and various remarkable jobs in developing modern

information communication technology Network ,till the number of customer could not be increased as targeted

by the company using the provided resource and also at different time different policy and procedure designed

including revision of tariff but till the customer complaining on the fixed line Service Quality.

Even though the company tries to improve the maintenance performance as the company report, but the fault

frequency is high because of some internal Technical problem and external uncontrollable challenge and

damage. Therefore, this study investigates the main cause of Land Line phone service problem for not

increasing the number of customer of the service and their perception on the service quality.

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The last five years ethio telecom with birr 1.5 billion dollar vendor financing with ZTE and HUAWEI

Corporation of china and implement Next Generation Network (NGN). Despite this fact, ethio telecom has been

criticized for poor quality of service. Because of the Gap of the service expected and service experienced could

not match.

A group of American authors, a Parasuraman, Valarie Zeithaml and Len Berry, in 1988 identified five Gaps that

may cause customers to experience poor service quality. This study focus from the five Gaps, on Gap1:

Between Consumer Expectation and Management Perception; this gap arises when the management does not

correctly perceive what the customers want. Key factors leading to this gap are; Insufficient marketing research,

poorly interpreted information about the customers ’expectations, Research not focused on demand quality, too

many layers between the front line personnel and the top level management.

On Gap 4: Between Service Delivery and External Communication: Consumer expectations are highly

influenced by the statements made by company representatives and advertisements. The gap arises when these

assumed expectations are not fulfilled at the time of delivery of the service. The discrepancy between actual

service and the promised one may occur due to the following reasons: Over promising in external

communication campaign, Failure to manage customer expectations, Failure to perform according to

specifications.

On Gap 5: Between Expected Service and Experienced Service. Currently the company report shows that

standard of the faulty maintenance is maximum age of fault for enterprise customer three day and for the

residential customers five day mean that the fault maintenance Performance of the company shows great

change. But the fault frequency and the service total dawn time goes increasingly.

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The subscriber number decrease and also the challenge to get new customer for the service critically increase

even if different offer and benefit added to the service at different time in line with sales campaign. The data

show that the resource provided by the company round 6880 total capacity, but the connected subscribers are

4455 for all customer categories. For long time those 2425 free Resource not occupied by the Subscriber set

idle and non-productive. This study as much as possible tries to investigate the Current status of the service

quality perceived by the subscriber to provide feedback for the company.

1.4 Research Question

How service quality impact customer satisfaction?

Which service quality dimensions brings satisfaction to ethio telecom customer?

What should be done to improve customer satisfaction of ethio telecom Land Line Phone service?

1.5 Objectives

1.5.1 General objectives

To identify the impact of service quality on customer satisfaction using SERVQUAL Model in ethio telecom

Land line phone service at Debrebirhan town. The studies also include the understated specific objectives.

1.5.2 Specific Objectives

To identify the impact of service quality on customer satisfaction.

To examine service quality dimensions that brings satisfaction to ethio telecom customer.

To identify what should be done to improve customer satisfaction of ethio telecom.

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1.6 Scope of the study

The focus of this study is the impact of service quality on customer satisfaction in case of ethio telecom

Debrebirhan town land Line phone service subscribers.

1.7 Significance of the study

This study will be Significant in the following regards, as the service quality of Land Line phone telecom

service provision is affected by other external factors which are beyond the service provider, this study may

Trigger further research on a comprehensive approach. Theoretically this study extends the existing knowledge

of service quality and customer satisfaction by enriching the content of service quality dimensions applicable

for telecom Land Line phone services.

It will enable ethio telecom, to give higher priority for the service quality because of service quality is a key

factor for customer Satisfaction and will serve as source of information or feedback. Lastly, will serve as partial

fulfillment of the requirement for the award of Master’s Degree in Business administration (MBA).

1.8 organization of the paper

This gives a summary of each chapter of the thesis. Chapter one introduces the topic to the reader ,explains the

background of the study, statement of the problem giving a focus of the study, Objective of the study ,research

questions , Scope of the study and organization of the study .

This chapter two gives the literature review, Chapter three describes how the study is carried out, showing

the measurement of the constructs, the way data have been collected and coded. Chapter four discusses

the data collected from the Respondents that would enable to answer research questions. Chapter five gives a

summary of the findings, Conclusions, possible recommendations from findings have been provided;

Limitations and suggestions for further research topics have been mentioned.

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 CHAPTER TWO

Review of Related Literature

2.1 Introduction

A number of studies have been conducted to explore the link between service quality and customer satisfaction.

A recent Nigerian study by Ojo (2010) says that in order to maintain high levels of customer

satisfaction, it is mandatory for the organization to update its services according to the expectations of

customers. This chapter introduces the key concepts on customer service, service quality, customer satisfaction,

relationship between service quality and customer satisfaction, Service quality dimensions, concept formations

of customer satisfaction.

In present time, the service sector is one of the most important sectors for almost all the countries and is a key

contributor to the GDP. In today's competitive environment, any service organization cannot survive

successfully without delivering high quality service. Hence, it has become necessary to analyses the impact of

service quality dimensions on customer satisfaction because if customers are satisfied with the service of a

company, then it can increase the market share of the company now a days, the telecommunication sector is one

of the most important Service sectors of a country, and delivery of high quality service in this sector can lead to

growth and long term development of any country .Also quality in service acts as an antecedent of customer

satisfaction.

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2.2 Service quality

The quality of service can be maintained by following the total quality management techniques but most

Effective Way is to take frequent customer feedback and make necessary adjustments in the service to avoid

Discomfort (Lovelock, Patterson and Walker, 2001).

A detailed research on the service quality was conducted by Parasuraman, Zeithaml and Berry (1988)

who distributed formal surveys among the customers related to different focus groups. They came up

with the model of SERVQUAL used for measuring five dimensions of service quality namely reliability,

Assurance, tangibility, responsiveness and empathy. Those researchers after wards examined the service

quality through a 22 items scale made to measure customer perception based on five dimensions used for

assessing the Service.

Today providing quality service is not an option but it is a requirement to survive for service giving companies

especially for those provides Technological Service like ethiotelecom due to the rapid and fast growing of

Technology globally and the know-how of the user is showing radical change .hence; to go with competitively

and consistently the key is understanding the customer interest before setting the policy and designing the

service needs to rendered. It becomes one of a competitive advantage through which companies get advantages

over the other.

Defining quality is not as simple as defining product quality because of the nature of services. The well-known

authors, Parasuraman et al., (1985) who have developed service quality measurement tool

(SERVQUAL), defined service quality as the gap between customer expectation and perception from five

dimensions. The five dimensions of service quality identified by these authors are: reliability, tangibles,

responsiveness, assurance and empathy.

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 According to Shridhara (2010, 639) “Service is a social act which takes place in direct contact between the

customer and representatives of the service company”. SERVQUAL is said to be an appropriate measure

to gear up a company for quality improvement by specifying the areas which need attention (Berry et

al., 1994). These areas most likely would categorize under one or more of the five service quality dimensions

and hence are measurable through the SERVQUAL scale.

2.3 Importance of Service Quality

Service quality can be described as a rationale of differences between expectation and competence along the

important quality dimensions. Parasuraman, Zeithaml and Berry [1985] identified ten requirements useful for

customers’ evaluation of the quality of services: reliability, responsiveness, tangibles, communication,

credibility, security, competence, courtesy, understanding the customers and service accessibility. service

quality scale (SERVQUAL), dimensions of service quality: reliability, responsiveness, assurance, empathy

and tangibles, the constructs were found to have high correlation. Zeithaml, Parasuraman, and Berry [1985]

The SERVQUAL model is a common diagnostic tool used to measure customer service and perceived

satisfaction. Reliability is the service company ability to deliver promises on time. In this study we focused on

five factors that could predict the quality of the service provided by the Investigated telecommunication

service provider.

Responsiveness is the degree to which customers perceive service providers’ readiness to assist them

promptly. Assurance is the degree of courtesy of service providers’ workers and their ability to

communicate trust to customers. Empathy is the care and importance the service provider gives to an

individual customer, and the degree to which specific customer needs and preferences can be understood and

articulated. Lastly, tangibility is the evidence of facilities, personnel, and communication materials used

by the company while offering services to customers .The need for services has accompanied the need for

10
quality service. People have been after getting the best of the services they need, and being satisfied. The

measurement of service quality is sophisticated since the satisfaction of the expectations of customers may not

be always provided. In other words; service quality depends on the perceptions of customers. The person

providing service, the technical result of service and general image of the company providing service affect

service quality (Küçükaltan 2007).

People evaluate service quality, get services. Thereby, service quality varies from person to person. This

difference mainly results from the expectations of people. The educations, culture, income, society levels of

individuals are the factors which have impact on service quality.

“Service quality can be stated as compatibility to expectations” (Karahan 2006:18).Kotler et al.(2003) indicate

the benefits of service quality for companies as follows :it is emphasized to be effective in creating customer

loyalty, avoiding price rivalry, keeping able staffs and reducing costs(Küçükaltan2007).In conclusion, the

notion of “service quality” refers to an evaluation.

In this evaluation, the consumer has expectations about the service in his/her mind before getting the service.

After consumption experience, s/he compares the service that s/he receives with the one that s/he expects. If the

received service is better than expected one, service quality is high. Otherwise, service quality is inadequate and

consumption experience ends up with dissatisfaction (Altunışık, et al2007).

2.4Service Quality Gap

This concept is all inclusive and cuts across service domains, but expectations change and experiences with

alternate service providers could shape the customers’ expectations. The important research gap

here is attaining customers’ expectation towards a particular service .

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A gap is the difference, imbalance or disparity which is determined to exist between customers’

perception of firm performance and their prior expectation.. Service quality (SQ) perceived by customers is

therefore as a result of a comparison of customers’ expectation (E) of services that the organization

should offer versus their perception of the performance (P) delivered by the service organization.

Service Qualit SQ = Custo er’s Perceptio P – Custo er’s E pectatio s E

Management of service quality largely focuses on managing the gaps between expectations and

Perceptions of customers. The goal of the firm is to minimize the gap between (P) and (E). The SERVQUAL

service quality model was developed by a group of American authors, a Parasuraman, Valarie Zeithaml and Len

Berry, in 1988.It highlights the main components of high quality service.

The SERVQUAL authors originally identified ten elements of service quality, but in later work, these were

collapsed into five factors: reliability, assurance, tangibles, empathy and responsiveness that create the acronym

RATER. Businesses using SERVQUAL to measure and manage service quality deploy a questionnaire that

measures both the customer expectations of service quality in terms of these five dimensions and their

perceptions of the service they receive.

When customer expectations are greater than their perceptions of received delivery, service quality is deemed

low. In additional to being a measurement model, SERVQUAL is also a management model. The SERVQUAL

authors identified five Gaps that may cause customers to experience poor service quality.

Gap1: Between Consumer Expectation and Management Perception. This gap arises when the management

does not correctly perceive what the customers want. Key factors leading to this gap are; Insufficient marketing

research, poorly interpreted information about the audiences ’expectations, Research not focused on demand

quality, too many layers between the front line personnel and the top level management.

12
Gap2: Between Management Perception and Service Quality Specification: Although the management might

correctly perceive what the customer wants, they may not set an appropriate performance standard. Gap2: may

Occur due to the following reasons: Insufficient planning procedures, Lack of management commitment,

Unclear or ambiguous service design, Unsystematic new service development process.

Gap3: Between Service Quality Specification and Service Delivery. This gap may arise through service

personnel being poorly trained, incapable or unwilling to meet the set service standard. The possible major

reasons for this gap are: Deficiencies in human resource policies such as ineffective recruitment, role ambiguity,

role conflict, improper evaluation and compensation system, Ineffective internal marketing, Failure to match

demand and supply, Lack of proper customer education and training.

Gap 4: Between Service Delivery and External Communication: Consumer expectations are highly influenced

The statements made by company representatives and advertisements. The gap arises when these assumed

Expectations are not fulfilled at the time of delivery of the service. The discrepancy between actual service and

The promised one may occur due to the following reasons: Over promising in external communication

Campaign, Failure to manage customer expectations, Failure to perform according to specifications

Gap 5: Between Expected Service and Experienced Service: This gap arises when the consumer misinterprets

the service quality. For example, a physician may keep visiting the patient to show and care, but the patient may

interpret this as an indication that something is really wrong.

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Determinants; The ten determinants that may influence the appearance of a gap are: Competence is the

possession of the required skills and knowledge to perform the service, For example, there may be competence

in knowledge and skill of contact personnel, knowledge and skill of operational support research personnel and

capabilities of the organization, Courtesy is the consideration for the customer’s property and a clean and neat

appearance of contact Personnel, manifesting as politeness, respect, and friendliness.

Credibility includes factors such as trust worthiness, belief and honesty. It involves having the Customer’s best

interests at prime position. It may be influenced by company name, company reputation and the personal

characteristics of the contact personnel.

Security enables the customer to feel free from danger, risk or doubt including physical safety, financial

security and confidentiality, Access is approachability and ease of contact for example, convenient office

operation hours and locations, Communication means both informing customers in a language they are able to

understand and also Listening to customers.

A company may need to adjust its language for the varying needs of its customers. Information might include

for example, explanation of the service and its cost, the relationship between services and costs and assurances

as to the way any problems are effectively managed.

Knowing the customer means making an effort to understand the customer's individual needs, providing

individualized attention, recognizing the customer when they arrive and so on. This in turn helps to delight the

customers by rising above their expectations.

Tangibles are the physical evidence of the service, for instance the appearance of the physical facilities, tools

and equipment used to provide the service; the appearance of personnel and communication materials and the

presence of other customers in the service facility.

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Reliability is the ability to perform the promised service in a dependable and accurate manner. The Service is

performed correctly on the first occasion, the accounting is correct, records are up-to-Date and schedules are

kept. Responsiveness is the readiness and willingness of employees to help customers by providing prompt

timely services, for example, mailing a transaction slip immediately or setting up appointments quickly.

2.5 Service quality and customer satisfaction

Quality is the overall experience which a customer perceives through interacting a product and service.

Parasurman et .al (1988) has captured the definition of quality as taken as a whole judgment service quality has

been described as a form of attitude related but not equivalent to satisfaction that results from the comparison of

expectation with performance”.(Bolten and Drew, 1991; Cronin Jr and Taylor, 1992; Parasuraman et.al. 1988,

shepherd, 1999).

Quality has had a long term impact on the satisfaction of customers (Omachanu et. al.2008), Atalik & Arslan

(2009) found that creating value and offering quality of service offered to customers creates loyal customers.

Kandampully (1998) says that Service loyalty of firms leads to loyal customer. He further found that loyal

service offered to customers full fills both present and future needs of customers.

Customer’s loyalty and Trust is gained by service provider’s commitment to provision of services, quality of

services. Dissatisfied customers have no bond of loyalty with the Organization. In the words of Turel ET .al

(2007) adoption decision of usage is determined by price, social, emotional and quality provided by the service

provider. The scale for service quality had been observed and critically evaluated as it uses gap scores,

measurement of expectations, positively and negatively worded item the generalizability of its dimensions and

the defining of a base line standard for good quality (Cronin& Taylor, 1992; Brown, Churchill & peter, 1992,

Oliver 1993).

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Kim et al. (2004) found that call quality, value added services and customer support play a significant role in

building customer satisfaction. It is evident that in order to retain customers, customer should be satisfied

through the service quality (Brown& Guly CZ, 2001)

2.6 Customer’s satisfaction

Bitner and Zeithaml (2003) stated that satisfaction is the customers’ measurement of services in terms of

whether that services have met its needs and expectations.

According to Boselie ET. Al (2002) satisfaction is appositive, affective state resulting from the appraisal of all

aspects of a party’s working relationship with another.

According to Cronin and Taylor (1992) customer satisfaction can measure by overall feelings

towards an organization while Six-item construct was used by Anderson and Srinivasan (2003) for

measuring customer satisfaction for each service quality of the organization. Siew-Phaik et.al (2011)

opened that reliability, responsiveness, assurance and empathy significantly positively influenced customer

attitudes in terms of satisfaction and loyalty.

Dabholkar (1993) is of the view that customer satisfaction is a kind of emotional, which leads to an overall,

world attitude of quality, which is based on kind of internal expectation. Customer satisfaction can be

measured on a single-item scale or as multi-item scale assessing the satisfaction level for each factor

of the service.

According to Mohammad and Noorjahan (2009), clear understanding of the postulated relationships

among the studied variables might encourage the Fixed Line service provider(s) to figure out appropriate

course of action to win customers’ trust by providing better services in order to create a loyal customer

base.

16
Muhammad (2011) stated that customer satisfaction depends on the managers’ desire and maintain the required

services and service quality. He also focused on implications for marketing strategists for attract to the

customers. Reichheld and Sasser (1990) considered ‘customer satisfaction’ as fundamental determinant

of customer loyalty. They said that satisfaction improves repeat purchases and produces positive mouth

publicity.

Service industry depends on Continuous cycle of repurchase so retention of customers requires hard effort by

Organization (Anderson et al.1994) (Bavmann .et.al 2006) found that affective attitude, empathy and customer

satisfaction leads to the customers towards further recommendation to other users. Responsiveness leads to

short term retention while affective attitude and empathy has long term impact on customer’s satisfaction and

retention.

Chen (2008) says that perceived value of service and satisfaction with the service has significant positive effect

on behavioral intentions of usage in future. Akbar & Porvez (2009) found that there is positive relation between

customer satisfaction and loyalty of customer and leading to more favorable disposition of commitment to re-

patronize. They also found that there is a direct link between customer satisfaction and customer retention.

Service quality can affect customer’s intention of usage through customer satisfaction (source not verified).

Henkel et .al, (2006) found satisfied customers of telecom sector have high extent of usage and intentions to

repurchase in future. Cronin et.al. (2000) found that service quality, service value and satisfaction are all

directly to customer’s intention of usage. Paterson & Spring (1997) found that satisfaction bridges between

perceived value of service quality and intentions of usage. Melisidou & Theohari’s (n.d) found that satisfied

customers not only stay as customers but create new business for organization. Satisfied and loyal customers are

source of higher margins for Organizations.

17
 2.7 Importance of Customers Satisfaction

Any Organization cannot survive and proceed without satisfying its client. Customer satisfaction is now

Becoming a corporate level strategy (Rust and Zahorik, 1993). Various authors and

Researchers have discussed importance of customer’s satisfaction. In the words of Drucker

(1973) Customer’s satisfaction is the base for business success.

Customer’s satisfaction is corner stone for relationship between marketing and management

(Claycomb & Martin, 2002), and the source of competitive advantage for organizations

(Anderson et al., 1994). Empirically, researches support the concept that there is a positive

Relationship between customer’s satisfaction and financial performance (Rust and Zahorik, 1993;

Anderson et al., 1994).Telecom sector like other sectors is not exception to the rule Henkel et al. (2006) found

satisfied customers of telecom sector have high extent of usage and Intentions to repurchase in

future. Greater the level of satisfaction of customers greater will be repurchase chances of

customers (Iqbal et al. 2008) and reduced customer whip Henkel et.al, 2006; Serenko & Turel,

2004, Iqbal et al. (2008) also found that the satisfied Customers will also recommend others to use

the service provider.

Kim et al. (2004) found that Customer’s satisfaction leads them to use current service and creates

loyal customers for future. The customers who are loyal reported to produce higher retention rates,

tend to commit a higher contribution of their category spending for the firm, and are more likely

to pursue others to be a part of customers of the firm. (Zeithaml, 2000, Keiningham, et al.

2007). HERMES Newsletter (2005) found that satisfaction along with perceived service quality and

Service value Create Positive intention of customers for usage and retention of telecom network.

18
Anderson et al. (2004) stated that quality leads to satisfied customers; similarly, Bolton & Drew (1991) found

that the relationship by affirming that Satisfaction situates influence on professed quality. Though steen

kamp(1989) mentioned quality as aid that retain the customer which assist to uphold share in the market ,

likewise Fornell (1992) acknowledge satisfaction program facilitate to retain customers .on the basis of above

given literature following model and hypotheses can be drawn.

2.8 Relationship between Service Quality and Customer Satisfaction

According to Sureshchandar et al., (2002, p. 363), customer satisfaction should be seen as a multi-dimensional

construct just as service quality meaning it can occur at multi levels in an organization and that it should be

operationalized along the same factors on which service quality is operationalized.

Parasuraman et al., (1985) suggested that when perceived service quality is high, then it will lead to increase in

customer satisfaction. He supports fact that service quality leads to customer satisfaction and this is in line with

Saravana & Rao, (2007, p.436) and Lee et al., (2000, p.226) who acknowledge that customer satisfaction is

based upon the level of service quality provided by the service provider.

Fen & Lian, (2005, p.59-60) found that both service quality and customer satisfaction have a positive effect on

customer’s re-patronage intentions showing that both service quality and customer satisfaction have a crucial

role to play in the success and survival of any business in the competitive market.

This study proved a link between service quality and customer satisfaction. Su et al., (2002, p.372) carried a

study to find out the link between service quality and customer satisfaction, from their study, they came up with

the conclusion that, there exist a great dependency between both constructs and that an increase in one is likely

to lead to an increase in another. Also, they pointed out that service quality is more abstract than customer

19
satisfaction because, customer satisfaction reflects the customer’s feelings about many encounters and

experiences with service firm while service quality may be affected by perceptions of value (benefit relative to

cost) or by the experiences of others that may not be as good.

2. 9 Factors that Influence Customer Satisfaction

From literature review, there are many factors that affect customer satisfaction. Such factors include friendly

employees, courteous employees, knowledgeable employees, helpful employees, accuracy of billing, billing

timeliness, competitive pricing, service quality, good value, billing clarity and quick service (Hokanson, 1995).

From the studies carried out in many countries, factors like: service quality, and perceived value, are the key

constructs affecting the customer’s satisfaction with telecom services.

Studies also point out that customer satisfaction results ultimately in trust, price tolerance, and customer

loyalty. Therefore, building customer relationship is a backbone for all organizations in general, and companies

in service industries in particular. Issues like: customer satisfaction, service quality, customer perception,

customer loyalty, are the main concerns of the nowadays service companies, which improves organization’s

performance and translates into more profits.

2.10. Variables and their Measurements

Basically, the measurements will employee in the present research acquires from previous researcher especially

the measurement used to judge the five SERQUAL dimensions and customer satisfaction. While the

measurement of tangibility consisted of three items, the measurement of reliability consists of three items

adapted from Asubonteng et al. 1996; Cronin and Taylor’s, 1992 and John and Howard (1998) works were

adapted to construct the responsiveness three items, assurance three items, and empathy seven items of the

20
Service quality provided by Land Line telecommunication providers. On the other hand, eleven items were used

Judge Customer satisfaction, and these were adapted from Cronin and Taylor’s (1992) This measurement will

measure using Seven-point Likert Scale; which the measurement starting from “1” for Very strongly disagree,

to “7” for Very strongly agree.

2.11 SERVQUAL-Conceptual Model of Service Quality

The Application of SERVQUAL model; SERVQUAL model measures the discrepancy between expected

Service and perceived service (gap5). Thus, customers’ expectation and customers’ perception of service

Quality will be assessed based on 5 SERVQUAL’s dimensions

SERVQUAL Dimension

Figure1.Measuring Service Quality Using SERVQUAL model (source from Parasuraman et al.1988)

21
In the domain of telecommunication, SERVQUAL model was utilized for the research conducting in Jordanian

Telecom sector in 2013. This study measures the impact of service quality on customer loyalty in the Jordanian

mobile telecom market. The results revealed a relatively high level of loyalty Of Jordanian customers. Likewise,

three dimensions which are responsiveness, empathy and reliability affect the most to customer loyalty. (Al-

Zoubi, 2013, 35-43).

Another example of SERVQUAL model’s application in the domain of telecommunication is to Measure the

customer satisfaction with service quality in Macedonian mobile telecom market. In this Research, reliability

and responsiveness are the most significant dimensions for customer satisfaction. However, the results showed

that the customers were not satisfied with the provided mobile services from mobile operators. (Zekiri, 2011,

86-101).

The theoretical framework is adapted by a study conducted by Zeithaml, Parasuraman and Berry

(1993). The reason of choosing those five SERQUAL dimensions service quality variables are the most

important factors for the telecommunication service. The theoretical framework given in figure 2 represents

the dependent and independent variables adapted from a study of Parasuraman, Zeithaml and Berry (1993) and

Stevens et al (1995). Customer satisfaction has been taken as dependent variable whereas Tangibility,

responsiveness ,Assurance, reliability and empathy are taken as independent variables which are responsible

for enhancing customer satisfaction.

Independent Variable Dependent Variable

Service Quality Dimensions Customer Satisfaction

(Tangibility, Responsiveness, Reliability, Empathy& assurance)

Figure 2. Source: Adapted from Zeithaml, Berry and Parasuranam (1993) and Hennig-Thurau and Klee (1998).

22
 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1 Introduction

This chapter gives a brief description on how this research conducted and Mixed approach has been used in

order to understand the problem well and giving appropriate feedback. The basic premise of this methodology is

that such integration permits a more complete and synergistic utilization of data than do separate quantitative

and qualitative data collection and analysis.

Mixed research approach which includes Research design, research approach, sampling design, measurement

procedures, method of data collection and data analysis in order to answer how to identify impact of service

quality on customer satisfaction using SERVQUAL Model in ethio telecom? And what should be done to

improve customer satisfaction of ethio telecom Land Line subscribers in Debrebirhan town? The survey

questions and Observation should find respondents’ feelings about overall customer satisfaction, satisfaction for

dimensions of service quality, and the importance of service quality dimensions.

3.2 Research Method

This study conducted to measure the satisfaction level of Land line phone service subscriber; mean will assess

the customer’s expectation and perception about service quality. Since this study aim specific practical

question and interest of understanding the impact of service quality on customer satisfaction, Descriptive

approach is being used.

23
The reason behind using descriptive research design is the researcher interested in describing the current

situation under study, to describe the current status of the service quality effect on customer satisfaction by

survey questionnaire and observation of the customer feedback in business center , comment ledger book, and

suggestion box, because of so as to understand the research problem, Sequential: quantitative survey followed

by in-depth qualitative observation of customer reaction for the service with supporting document like

suggestion box, comment ledger book. This research design is a fact finding study with adequate and accurate

interpretation of findings.

Quite often, quantitative approach use tests and closed-ended questionnaires in order to gather analyze and

interpret the data. However, the qualitative approach mostly makes use of interviews, diaries, journals,

classroom observations and open-ended questionnaires to obtain, analyze and interpret the data. On the other

hand, mixed or hybrid approaches usually use closed-ended questionnaires (numerical data), interviews and

classroom observations (text data) to collect information. In order to triangulate the data, the researchers can

obtain information through different procedures to heighten the dependability and trust worthiness of the dada

and their interpretation.

Since this study investigate the situations as it exists in its current state, which is to measure customer

satisfaction based on service quality, the descriptive study is more appropriate than experimental studies.

Thus, I use or choose descriptive study to measure the impact of service quality on customer satisfaction on

land line phone service of ethio telecom in Debrebirhan Town. This study has used both primary and

secondary data. Primary data obtained directly through the structured observation and survey which uses for

the main purpose of the study

24
3.3 Measurement;

SERVQUAL is one of the main instruments used to measure the perceived service quality in this study. Due to

several reasons why choose SERVQUAL as the measurement method. First SERVQUAL is widely used in

many researches in telecom service. Secondly, customer satisfaction is based up on level of service quality

(Saravana & Rao, 2007, 436). Thirdly, SERVQUAL model was easier to use comparing to other models such as

multi-level model (Dabholkar et al, 1996) or hierarchical model (Brady and Cronin, 2001) which comprise

many dimensions and sub- dimensions.

Thus, this model has stronger generality and flexibility and the researchers can add more dimensions which

destine for their studies. Therefore, SERVQUAL is appropriate for measuring the service quality and customer

satisfaction of land line phone service. The service quality and customer satisfaction can be measured via

perceived service quality. The perceived service quality is measured by collecting the average gap score of the

SERVQUAL dimensions; Tangibility, Reliability, Responsiveness, Assurance and Empathy between

customer’s expectation and perceived service.

3.4 Sample size

It is not possible and manageable to reach in survey for all the entire population in the studied area due to the

Limitation of finance and scarcity of time especially for this type of customer based studies. The total

Population of the study is Four thousand four hundred forty five (4445). In order to truly represent the

Population, the sample size must be Manageable and good enough. For this study according to the population

Amount, it is not possible to take the ten percent of the population as the other researcher did with the small

25
Number of Population because of the number of population is high to take the ten percent. Hence; I prefer to

Use the formula developed by Taro Yamane (1967) because of many Researcher had been used this formula

and succeed.

n = N
1 + N (e) 2
Where, n is the sample size, N is the population size, 4445, e = is the level of precision or sampling error =

(0.05)

n = ___4445

1 + 4445(0.05)2

n= 4445/1+4445(0.0025)

n=4445/1+11.1125 n= 4445/12.1125 n=366.97=367

Thus, sample size of 367 customers was selected from the population of 4445.

3.5 Types and Sources of Data

According to Ndunguru (2007) has argued that, the researcher should keep in mind two types of data, Primary

data and secondary data. Primary data, are those data which are collected as fresh i.e. Information gathered

directly from the respondents, and secondary data are those data which are not collected as fresh (i.e. already

collected by someone else). This study takes into account both type of data.

3.6 Questionnaire Design

According to Zikmund (2000), the development of a survey is strongly influenced by nature of the research

objectives and the research questions. Thus, in designing the questionnaire, every question tries to relate back to

26
The research questions (Ticehurst & Veal 2000).With regard to the present study the questionnaire was

designed in a way that respondents would find it easy to understand. As the study uses mixed research

approach, the data were collected from the selected respondents survey questionnaire and observation of

customer feeling or reaction in daily business continuity at point of sales& observation of customer reaction

about the service in door to door sales campaign plus referring the comment book and suggestion box.

The purpose of referring Customer comment from suggestion box and comment book, observation and

questionnaire is to collect data that is needed for analyzing about the impact of service quality on customer

satisfaction. Those techniques are effective in understanding the research problem and answering the research

question. The item have been measured based on 7- points Likert type rating scale because of most research

currently uses this rating type. The questionnaires personally distribute by the researcher.

3.7 Sampling and Data Collection;

This research is focus on the land line phone users of ethio telecom in Debrebrhan Town as the data cannot be

collected from the whole or entire population in this scenario, in order to highly represent the population in

sampling, Systematic probability sampling was used to distribute the questionnaire. The researcher allocates

the sample size in each 15 MSAG which is found in the Town 9 Keble.

The researcher allocates the sample size per MSAG because of the resource available and the subscriber

connected to each MSAG is known and the detail data is put in Annex. The implementation of the primary and

secondary data collection was limited on time frame and financial Resources, the convenience or appropriate

Technique was conducted The homogeneity of the samples in this research are customers who have, uses the

land line phone service users of ethio telecom in the studied area. The Questionnaire was prepare and provided

in Amharic and English version.

27
3.8 Respondent Rate

Table 3.1 Sample of data distributed and responded

Sample Distributed Responded Sample Not Responded

Number Percentage Number Percentage Number Percentage

367 100 356 97.002 11 2.997

Source; Own Sample Data 2018

As shown in Table 3.1, from 367 samples distributed, 356 or 97.003% of respondents were filled the

questionnaire and returned and 11 or 2.997% of respondents were not returned.

3.9 Reliability Statistics Analysis

Table 3.2 shows reliability test Statistics

Cronbach's Cronbach's Alpha Based on N of Items

Variable Alpha Standardized Items

Tangibility .874 .883 3

Reliability .705 .723 3

Responsiveness .847 .866 3

Assurance .726 .725 3

Empathy .875 .874 7

Average of Cronbach's Alpha 0.805 0.814 Total=19 item

Customer Satisfaction .753 .779 11

Average of Cronbach's Alpha 0.753 0.779

Source; SPSS OUT PUT 2018

28
Table 3.2 is showing the detail Cronbach's Alpha value of the dependent and Independent variable Reliability

test value of the provided questionnaire in this study for the selected sample respondent with the Primary data

collection method. Cronbach’s alpha is a statistic commonly quoted by authors to demonstrate That Tests and

scales that have been constructed or adopted for research projects are fit for purpose.

The findings Show that Cronbach’s Alpha for all dimensions of service quality are above 0.70 which indicates a

High level of internal consistency for all items (Nunnally1978). Over all Cronbach’s alpha value for nineteen

Items are 0.805. The same test is also conducted for customer satisfaction eleven items and their result

Indicates 0.753 for Customer satisfaction and the Details of the test value are found in the appendices section.

3.10 Test of Regression Assumptions;

Before multiple linear regression analysis were conducted. The researcher performed test of two assumptions

on multiple liner regression.

Assumption 1 -Normality Distribution and Assumption 2 –Linearity Relationship

The data was proven against those assumptions two assumptions the rest assumptions not included in this

research.

Assumption 1 -Normality Distribution

Multiple linear regressions require the independent variables to normally distribute. The normal distribution of

The data can be described by the Skewness and kurtosis statistics. According to Smith and Wells (2006)

Kurtosis is defined as “a property of a distribution that describes the thickness of the tails. The thickness of the

tail comes from the amount of scores falling at the extremes relative to the Gaussian distribution”. Whereas

Skewness is a measure of symmetry, or more precisely, the lack of symmetry.

A distribution, or data set, is symmetric if it looks the same to the left and right of the center point. In order to

29
test the first assumptions of normality of distribution, Skewness and kurtosis statistics was Computed

from the data obtained on the survey, in the below table -3.3.All the Skewness and kurtosis statistics needed

to be within the acceptable ranges of ± 1.0. In the present study since all the values of Skewness and

kurtosis for each variable are within an acceptable Range, the data is said to be normally distribute.

Table –3.3: Normality Distribution Measures through Skewness and Kurtosis

Variable Skewness Kurtosis

Statistic Std. Error Statistic Std. Error

tangible .773 .129 .762 .258

Reliability .865 .129 .840 .258

Responsiveness .890 .129 .715 .258

Assurance .602 .129 .510 .258

Empathy .904 .129 1.033 .258

Customer satisfaction .797 .129 .828 .258

Valid N (list

wise)=356

Source; SPSS OUT PUT 2018

Assumption 2 -Linearity Relationship

The second assumption for computing multiple regressions is testing of the linear relationships

Between dependent variable and the independent variables. As shown in the below scatter plot, figure 3.1, the

Visual inspections of the scatter plot indicates as there exists a linear relationship between the predictors

(Service quality) and the predicted variable (customer satisfaction).

This means, an increase of the one or all predictors (independent Variable) causes respective increments for the

Satisfaction of the Land line Phone service user. If the data is not normal, the little circles will not follow the
normality line.

30
Figure -3.1: Scatter Plot Linearity Assumption Measures

Source; SPSS output survey 2018

3.11 Method of Data Analysis

The collected data has been changed and interpreted in to meaningful information, figure and statement. So it

was analyzed, processed and interpreted according to the nature of data Statistical Package for Social Science

(SPSS) software version 20 was employed to analyze and present the data through the statistical tools used for

this study, namely descriptive analysis, Pearson correlation and multiple Linear regression analysis.

The descriptive statistical results were presented by tables, frequency distributions and Percentages to give a

condensed picture of the data. This was achieved through summary of statistics, which includes the means and

standard deviations values which are computed for each variable in this study.

31
In this study Pearson’s correlation coefficient was used to determine the relationships between service quality

dimension (Tangible, reliability, responsiveness, assurance, empathy) and customer satisfaction. Multiple linear

regression analysis was used to investigate the effect of service quality dimension (Tangible, reliability,

responsiveness, assurance, empathy) on customer satisfaction.

The equation of multiple linear regressions on this study generally built around two sets of variable, namely

dependent and independent variables. The basic objective of using regression equation is to make the researcher

more effective at describing, understanding, predicting, and controlling the stated variables.

Regress customer satisfaction on the service quality dimensions.

Y= β0 + β1X1 + β2X2 + β 3X3 + β 4X4 +β5X5

Where Y is the dependent variable-customer satisfaction Tangible =X1, reliability =X2, responsiveness =X3,

assurance =X4 and empathy=X5 are the explanatory variables (or the regresses).

Β0 is the intercept term-it gives the mean or average effect on Y of all the variables excluded from the equation,

although its interpretation is the average value of Y when the stated independent variables are set equal to

zero.β1, β2, β3, β4 and β5 refer to the coefficient of their respective independent variable which measures the

change in the mean value of Y, per unit change in their respective independent variables.

32
3.12 Ethical Consideration

Since the researcher has used the data from customers which was collected through questionnaire, permission of

respondent was obtained. To maintain the confidentiality of the information for ward by the respondents,

direction was given not to write their names on the questionnaire and assured the responses would be used only

for academic purpose and kept confidential. Brief description of the central purpose of the study and the

Potential benefit of the research Outcome to respondents. Finally, respondents were included in the study based

on their good will. Any works of other authors and researchers that have been used from the Beginning to the

end in this study has been fully referenced on the reference page.

33
 CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION

4.1 Introduction

This chapter discusses and presents findings of data on the impact of service quality on customer satisfaction

using SERVQUAL model in case of ethiotelecom. The study has aimed to determine the impact of service

quality on customer satisfaction, to examine service quality dimensions that bring satisfaction to ethio telecom

customer and to identify what should be done to improve customer satisfaction of ethio telecom Land line

Phone service.

Data analysis for this study was done in two steps; the first step the personal information of respondent and

topic related data analysis statistics presented. In the second the main analysis involved the gap score analysis

whereby descriptive statistics were applied to summarize means of perceptions and expectations of customers.

The researcher calculates the perception minus expectation scores for each item and dimension in order to

identify the service quality gaps. Finally, the statistical methods of analysis were discussed, which included a

descriptive analysis, a correlation analysis, and a multiple regression analysis with the help of SPSS version 20.

The interpretation of the data is presented next to each summarized data.

34
4.2 Respondents back ground information

The personal information of respondent include, Gender, Age, Educational level, Income and Occupation and

The Topic related information of respondent included for how long the subscriber of the service, Purpose of

The service, payment Mode, Time take to pay the Bill, in pre-sales or post sales the treatment satisfies you?

Those ten question especially in this study in a distinguish manner the researcher provide those topic related

Question is in order to get more feedback which enable to present the data in comprehensive way and aiming as

The standing question for the main variable question. Table 4.1 shows the detail information in figure and

percentage.

35
Table 4.1 Frequency of Respondent Characteristics NR=356

Variable NR %

Gender of respondent female 90 25.30

male 266 74.70

Age of respondent 20- 30 9 2.5

31-40 47 13.2

41-50 144 40.4

51-60 109 30.6

above 60 47 13.2

Level of education 1 to12 107 30.1

certificate 92 25.8

College diploma 95 26.7

first degree 42 11.8

Master’s degree and above 20 5.6

Income of respondent less than 2000 74 20.8

2000-3000 97 27.2

3001-4500 110 30.9

4501-5000 47 13.2

Above 5000 28 7.9

Occupation type public employed 136 38.2

private employed 139 39.0

36
 self employed 81 22.8

Time length of a 1-5 year 11 3.1

customer 5-10 year 11 3.1

10-15 year 38 10.7

15-20 year 80 22.5

20-25 year 183 51.4

Above 25 yea 33 9.3

Purpose of service home service 278 78.1

business service 20 5.6

organization service 58 16.3

Type of service prepaid 10 2.8

post paid 346 97.2

Time take to pay 5-10 minutes 67 18.8

10-15 minute 55 15.4

15-20 minutes 45 12.6

20-30 minutes 146 41.0

above 30 year 43 12.1

Treatment of customer in pre-sales 211 59.3

satisfaction in after sales 13 3.7

in both pre and post sales 8 2.2

not satisfied in both 124 34.8

Source; own survey 2018 where NR= Number of Respondent and % = percentage

The respondent back ground information shows in Table 4.1 out of 356 responded respondents 90 were female

and 266 were male. This indicates the subscriber of the service is more of male than female.

37
Most of the respondent age group of the respondent was above 41 Years. Mean that the Younger group not

interested to subscribe the service.

The other one category was educational back ground of the respondent was inform as most of the Landline

service user in the studied area are below College Diploma and college Diploma.

Income statuses of the respondent were other category in this study, the income level of all the respondent

almost all below 4500.

In this study the Occupation type of the respondent included in this category and segmented with as Public

employed, Private employed and Self-employed. As we can see Table 4.1 most of the subscriber of the service

is public and private employees.

The researcher in this study include as the back ground information, the information related with the service.

From this category for how long time you are the subscriber of the service? Most of the respondent response

indicates subscribe the service before ten years, for the last ten and five years, the subscriber of the service goes

decrease and getting new customer is challenging.

The other one is the purpose of the service why the respondent subscribe the service , in this study the

researcher segment the purpose of the study as home service, business service and Organization of the service.

Table 4.1 shows most of the Subscriber of the service use for the home service.

Types of payment Mode also included Back ground information category as pre-paid, and postpaid. Out of the

total respondent, above 97.20 % are using postpaid payment modes.

How long time takes to pay the bill at point of sales or Business center? Most of the respondent responses were

twenty to thirty minutes.

38
Time of treatment customer get satisfaction at the point of sales were the last category to this study as the Back

ground information, out of the total respondent 356, 211 or 59.30% were says as they get treatment in presales,

124 0r 34.8 % were says not satisfied in both pre sales and after sales service, 13 or 3.7 % were says satisfied in

after sales service and 8 or 2.2% were says satisfied in both pre sales and after sales. From this feedback we can

understand the customer get treatment in Pre-sales than post sales.

Table; 4.2 Frequency of 11 dependent Variable. NR=356

Scale frq Mean %

1 355 32.272 9.065

2 972 88.364 24.821

3 1269 115.364 32.406

4 393 35.727 10.036

5 473 43.000 12.079

6 340 30.909 8.682

7 114 10.364 2.911

Total 3916 356 100

Source; spss output of survey data 2018

Where 1= strongly dis agree 2= dis agree 3=partial dis agree

4= neutral 5= partial agree 6 =agree 7= strongly agree

NR= Number of respondent. Frq= frequency % =Percentage

39
In table 4.2 the descriptive frequency of the dependent variable or customer satisfaction, the respondent

response provided in figure and percentage. These dependent variables have 11 items.

For those provided customer satisfaction level request questionnaire 355 response were strongly dis agree, 972

response disagree, 1269 response partial dis agree and 393 response were neutral ,the rest response 473 partial

agree ,340 agree and 114 response were strongly agree.

Table 4.3 .1 Frequency of Tangibility has 3 variable question. NR=356

scale frq Mean %

1 82 27.332 7.678

2 245 81.667 22.940

3 497 165.667 46.536

Tangibility

4 75 25 7.022

5 96 32 8.989

6 59 19.667 5.524

7 14 4.667 1.311

Total 1068 356 100

Source; spss output of survey data 2018

Where 1= strongly dis agree 2= dis agree 3=partial dis agree

4= neutral 5= partial agree 6 =agree 7= strongly agree

NR= Number of respondent. Frq= frequency % =Percentage

Table 4.3.1 present the respondent data for the tangibility questionnaire, above 75% from the total respondent

Respond as not agreed, 7% of the respondent either not agreed or disagreed and the rest 15% respond agreed.

40
Table 4.3 .2 Frequency of Reliability has 3 variable question. NR=356

scale frq Mean %

1 161 53.666 15.074

2 261 87 24.437

3 441 147 41.292

Reliability

4 86 28.667 8.054

5 74 24.667 6.929

6 36 12 3.371

7 9 3 0.843

Total 1068 356 100

Source; spss output of survey data 2018

Where 1= strongly dis agree 2= dis agree 3=partial dis agree

4= neutral 5= partial agree 6 =agree 7= strongly agree

NR= Number of respondent. Frq= frequency % =Percentage

Table 4.3.2 present the data of respondent response for the reliability based question. Out of the total

respondent, above 80 percent were not agreed for the delivered question, 8.054 respond neutral and round 10

percent were agree

41
Table 4.3.3 Frequency of Responsiveness has 3 variable question .NR=356

scale frq Mean %

1 42 14 3.933

2 206 68.667 19.288

3 515 171.667 48.221

Responsiveness

4 112 37.333 10.487

5 112 37.333 10.487

6 60 20 5.617

7 21 7 1.967

Total 1068 356 100

Source; spss output of survey data 2018

Where 1= strongly dis agree 2= dis agree 3=partial dis agree

4= neutral 5= partial agree 6 =agree

7= strongly agree

NR= Number of respondent. Frq= frequency % =Percentage

Table 4.3.3 shows the respondent response for the responsiveness dimension questionnaire, out of the total

Respondent above 72 percent were not agreed for the provided question, 10.5 percent neither agreed nor

Disagreed and 18 percent only were agreed.

42
Table 4.3 .4 Frequency of Assurance has 3 variable question. NR= 356
scale frq Mean %

1 12 4 1.124

2 149 49.667 13.952

3 468 156 43.820

4 181 60.333 16.947

Assurance

5 193 64.333 18.071

6 51 17 4.775

7 14 4.667 1.311

Total 1068 356 100

Source; spss output of survey data 2018

Where 1= strongly dis agree 2= dis agree 3=partial dis agree

4= neutral 5= partial agree 6 =agree 7= strongly agree

NR= Number of respondent. Frq= frequency % =Percentage

Table 4.3.4 present the respondent response for Assurance concerning questionnaire, out of the total respondent

, 59 percent respond as they are not agreed ,17 percent neither agreed nor disagreed and 24 percent only were

Respond as agreed for the delivered question.

43
Table 4.3.5 Frequency of Empathy has 7 Variable question.NR= 356

scale frq Mean %

1 120 17.143 4.815

2 648 92.571 26.003

3 1171 167.285 46.990

4 203 29 8.147
Empathy

5 233 33.286 9.340

6 101 14.428 4.053

7 16 2.286 0.642

Total 2492 356 100

Source; spss output of survey data 2018

Where 1= strongly dis agree 2= dis agree 3=partial dis agree

4= neutral 5= partial agree 6 =agree 7= strongly agree

NR= Number of respondent. Frq= frequency % =Percentage

In table 4.3.5 the data present for the Empathy based seven variable questions, the respondent response.

Out of 356 respondent 77.81 percent were not agreed, 8.147 neutral and 14.04 percent only response agreed.

44
4.4 Descriptive Analysis of Variables

Table 4.4 descriptive statistics of service Quality and Customer satisfaction.NR=356

Tangibility Reliability Responsiveness Assurance Empathy Customer

satisfaction

Mean 3.0777 3.1292 3.2210 3.5496 3.0623 2.9124

Mode 3.00 3.00 3.00 3.00 2.67 2.73

Std. 1.08880 1.11674 1.14265 .93030 .87422 .68753

Deviation

Variance 1.185 1.247 1.306 .865 .764 .473

Source; SPSS Output 2018

As presented in table 4.4, the descriptive analysis of service quality and customer satisfaction Mean, Mode,

Standard deviation, variance of Service quality dimension and customer satisfaction. To measure the customers’

perception and expectation of the service quality provided by ethiotelecom in the studied area in the case of

Land Line phone service SERVQUAL Model has been used.

SERVQUAL Model is selected for this because of the model measures both the expectation and perception of

the customer. The model contains 19 questions and a seven point Likert scale is used to measure the

performance.

For all the service quality dimensions (Tangibles, Reliability, Responsiveness, Empathy and Assurance), the

mean score have been computed and all the service quality dimension and customer satisfaction have nearly

equivalent amount of Mean value and median value, and also its standard deviation is from the Customer

45
Satisfaction 0.68753 to Empathy 0.87422, assurance 0.93030, Tangibility 1.08880, Reliability 1.11674 and the

highest standard deviation dimension is Responsiveness 1.14265.

Having a higher standard deviation ,using the mode value will be more realistic in determining the

most frequently occurring response . As shown table 4.4, among the service quality dimensions majority of

respondent disagree on the items with the mode value of 3 but empathy is 2.67 and customer satisfaction

mode value 2.73, showing the highest frequency response towards disagreement.

4.5 Correlation Analysis of dependent and independent variable

Table 4.5: Correlations results of service quality dimensions and customer satisfaction

Variables Mean S. 1 2 3 4 5 6

Deviation

1 Tangibility 3.077 1.089 1** .956** .867** .763** .762** .796**

2 Reliability 3.129 1.117 .956** 1** .939** .825** .839** .765**

3 Responsiveness 3.221 1.143 .867** .939** 1** .873** .894** .682**

4 Assurance 3.550 0.930 .763** .825** .873** 1** .794** .600**

5 Empathy 3.062 0.874 .762** .839** .894** .794** 1** .615**

6 Customer 2.912 0.688 .796** .765** .682** .600** .615** 1**

satisfaction

**. Correlation is significant at the 0.01 level (2-tailed). Source: SPSS Correlation result output, 2018

According to the Table 4.5, there is a significant positive relationship between the five dimensions of

service quality and customer satisfaction and among each service quality dimensions.

The Correlation between Service Quality dimension and the Correlation between Service Quality and Customer

satisfaction is set from the highest correlation to the lowest correlation.

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The first one correlation is among Service quality dimension, the highest Correlation is tangibility with

reliability =0.956 and the next highest reliability with responsiveness =0.939 and the lowest correlation from the

service quality dimension is among tangibility with empathy =0.762 and tangibility with assurance =0.763.

The second one Correlation measurement is between independent variable of service quality dimension and the

dependent variable customer satisfaction. The highest correlation is scored between tangibility with customer

satisfaction =0.796 and the next higher scored is among reliability and Customer satisfaction =0.765. The

lowest correlation is scored between Assurance and customer satisfaction is 0.600.

4.6 Regression Analysis

In the regression analysis, the researcher aim to describe the statistical relationship between one or more

Predictor variables which is the independent variable in this study service quality and the variable predicted is

the dependent variable, in this study the dependent variable is the customer satisfaction.

In this study the researcher use a multiple linear regression model which shows the relationship between the

dependent variable and multiple (service quality dimension) independent variables. In this study multiple

regression analysis was employed to examine the effect of service quality dimensions on customer

satisfaction.

The general purpose of multiple regressions (the term was first used by Pearson, 1908) is to learn more about

the relationship between several independent or predictor variables and a dependent or criterion variable.

Multiple regressions are the most common and widely used to analyze the relationship between a

Single continues dependent variable and multiple continues on categorical independent variable

(George et al, 2003). The following table presents the results of multiple regressions analysis.

47
 Table 4.6 regression of Variables Model Summary

Mod R R Adjusted R Std. Error of Change Statistics

el Square Square the Estimate R Square F df1

Change Change
a
1 .798 .637 .632 .41724 .637 122.778 5

Source: SPSS Regression results output, 2018

a. Predictors: (Constant), tangibility, reliability, responsiveness, assurance, empathy

b. Dependent Variable: customer satisfaction.

The "R" column represents the value of R, the multiple correlation coefficients. R can be considered to be one

measure of the quality of the prediction of the dependent variable; a value of 0.798, in table 4.6, indicate good

level of prediction and the value of R square 0.637 that our independent variables explain 63.7% of the

variability of our dependent variable.

However, need to be able to interpret "Adjusted R Square" (adj. R2) to accurately or adjust report data. The

adjusted R2 of 0.632 indicates 63.2% of the Variance in customer satisfaction can be predicted by the service

quality offered by the business Center of ethiotelecom. Therefore, service quality has a positive and significant

effect on customer satisfaction.

48
 a
Table 4.7 regression of Variables Coefficients

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

1 (Constant) 1.339 .103 12.9 .000

87

tangibility .503 .020 .796 24.78 .000

Reliability .471 .021 .765 22.32 .000

Responsivene .411 .023 .682 17.55 .000

ss 9

Assurance .444 .031 .600 14.12 .000

Empathy .483 .033 .615 14.65 .000

Source: SPSS regression result output, 2018

Table 4.7 shows, the regression of Variable Coefficients, categorized with Unstandardized and standardized

coefficients. The unstandardized coefficients indicate how much the dependent variable varies with an

independent variable when all other independent variables are held constant.

49
For this study I have used only the standardized one coefficient. a small beta value and a high p value (p

>.005) indicate the predictor Variable has little or no significant contribution to the model. (Gorge et al.,

(2003)

Table 4.7 indicate that all service quality dimensions Tangibility, Reliability, Responsiveness, Empathy and

Assurance dimension of service quality have a significant influence on customers satisfaction with the

significance level at 1%. According to Gorge et al.,(2003) A high beta value and a small p value (<.005)

indicate the predictor variable has made a significance statistical contribution to the model. This means

Table 4.7 data indicate as all the service quality dimensions can impact customer satisfaction, even though the

degree of significance varies one dimension from the other one as we can see from the table 4.7 here above.

Y= β0 + β1X1 + β2X2 + β 3X3 + β 4X4 +β5X5

Y=1.339+0.796xX1+0.765xX2+0.682xX3+0.600xX4+0.615xX5

Where; X1=Tangibility, X2=Reliability, X3= responsiveness, X 4=Assurance, X 5 = Empathy

50
4.8 Gap Score analysis of service Quality Dimensions that Brings Satisfaction.

Table 4.8: Average Gap Score on Expectations and Perceptions

Dimension Statement Perception Expectation Gap Score Over all Gap Average Gap

score Score

Tangibility TA1 2.87 4.28 -1.41

TA2 3.08 4.91 -1.83

TA3 3.09 4.96 -1.87 -5.11 -1.71

Reliability RL1 3.12 5.04 -2.28

RL2 2.16 5.04 -2.88

RL3 3.15 4.50 -1.35 -6.51 -2.05

Responsiveness RS1 3.40 5.41 -2.01

RS2 3.22 5.09 -1.87

RS3 3.25 5.03 -1.78 -5.66 -1.88

Assurance AS1 3.95 5.29 -1.34

AS2 3.46 5.21 -1.75

AS3 3.28 5.10 -1.82 -4.91 -1.64

Empathy EM1 2.50 4.50 -2.00

EM2 3.13 5.41 -2.28

EM3 3.19 5.09 -1.90

EM4 3.17 5.03 -1.86

EM5 3.16 5.28 -2.12

EM6 3.04 5.21 -2.17

EM7 3.23 5.09 -1.86 -14.19 -2.03

-36.38 -9.31

Source: SPSS Gap Score result output, 2018

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For the overall analysis of the Service quality perceived by the ethiotelecom Debrebrhan Town Land line

phone subscribers ,Expectations and perceptions were both measured using the 7-point Likert scale

whereby the higher numbers indicate higher level of expectation or perception. In general, customer

expectation exceeded the perceived level of service shown by the perception scores. This resulted in a negative

gap score (Perception –Expectation).

According to Parasuraman et al., (1988, p.30) it is however common for customer’s expectation to exceed the

actual service perceived and this signifies that there is always need for improvement .the Service Quality

Dimensions with the highest expectation score and with the lowest perception score present in table 4.8.

According to Table 4.8 the higher expectation scored dimension is Empathy, Assurance, Responsiveness,

reliability and Tangibility consecutively. The variable with the expectation score discuss here in detail

All the business center staff gives individual attention with 5.41, The company business center has convenient

working hour for all customer(5.28), The bill quality and clarity understandable by all its customer(5.21), The

business center waiting area, office, chair are convenient for all customer 5.10 and The company and its

employee give high priority for the customer interest (5.09) , The staff give all information about the service

for the customer(5.03), the business center staff easily understand the customer need (4.50) all those seven

variable are categorized with the empathy dimension and the higher expectation scored is 5.41 whereas the

lowest expectation score were 4.50 from the empathy dimension.

The second higher expectation were scored by the Assurance dimension Personal behavior of the staff enable to

get the customer trust(5.29), Business center staff are polite and strive for the customer benefit(5.21) and Staff

have expected knowledge and skill on the service to serve customer(5.10)

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The next higher expectation score dimension were responsiveness ; Employee provide the service per the

standard(5.41), Employee ready to serve customer(5.09) and Employee never tired and busy to respond for the

customer request(5.03)

The fourth one higher expectation scored service quality dimension were Reliability ; The clarity of the service

kept consistently & the customer profile and record well handled (5.04), The Company informs any failure and

damage ahead of time (4.50) .The last one expectation were scored by Tangibility; The company business

located at the convenient position to the customer(4.96), The company Business Center facilities are

attractive(4.91)and The company provide update equipment for the service(4.28) .

While the better performance scored by Assurance dimension Personal behavior of the staff enable to get the

customer trust (3.95), Business center staff are polite and strive for the customer benefit (3.46) and Staff have

expected knowledge and skill on the service to serve customer (3.28)

The second level perception scored by responsiveness dimension; Employee provide the service per the

standard(3.40), Employee ready to serve customer(3.22) and Employee never tired and busy to respond for the

customer request(3.25)

The next one perception performer dimension were Empathy dimension; All the business center staff gives

individual attention for with (2.50), The company business center has convenient working hour for all

customer(3.13), The bill quality and clarity understandable by all its customer(3.19), The business center

waiting area , office, chair are convenient for all customer(3.17) and The company and its employee give high

53
Priority for the customer interest (3.16), The staff give all information about the service for the customer(3.04)

and The business center staff easily understand the customer need (3.23)

The other one dimension perception score were reliability; The clarity of the service kept consistently(3.12),The

customer profile and record well handled(2.16) and The company inform any failure and damage ahead of

time(3.15)

The last perception were scored by the Tangibility score ; The company provide update equipment for the

service(2.87),The company Business Center facilities are attractive(3.08)and The company business located at

the convenient position to the customer(3.09).

The difference among each service quality dimension scored perception are very small and the perception score

are lower than expectations. The gap scores are the difference between the perception and expectation

scores, and these gap scores measure service quality and hence customer satisfaction. The more

perceptions are close to expectations, the higher the perceived level of quality and then customer satisfaction.

And if the gap score wider among perception and expectation or the negativity increased, predict the higher

service quality problem which influences the customer satisfaction.

In general overall perceived service quality is low (-9.31) meaning the level of service quality they

receive is lower than what they expect indicating there is no satisfaction. Parasuraman et al., (1985)

suggested that when perceived service quality is high, then it will lead to increase in customer satisfaction.

He supports the fact that service quality leads to customer satisfaction and this is in line with Saravana & Rao,

(2007, p.436) and Lee et al., (2000, p.226) acknowledge that customer satisfaction is based upon the level of

service quality provided by the service provider.

54
This is a good ground for asserting whether customers are satisfied with service quality in ethiotelecom. A

higher perception also indicates higher satisfaction as service quality and satisfaction are positively

related (Fen & Lian, 2005, p.59-60).

Table 4.9: Ranked Service Quality Dimensions and its Average Score.

Ranking Dimensions Gap Score Average score

1 Assurance -4.91 -1.64

2 Tangibility -5.11 -1.71

3 Responsiveness -5.66 -1.88

4 Empathy -14.19 -2.03

5 Reliability -6.51 -2.05

Source: SPSS output Data 2018

The gap score analysis in table 4.8 inform us to find out how customers perceive service quality in

ethiotelecom at the studied area in the case of Land line phone service and try to identify what dimensions

of service quality customers satisfied with. Table 4.9 show the average score for each service quality

dimensions.

According to Parasuraman et al., (1985, p.48) the higher (more positive) the perception (P) minus expectation

(E) score, the higher the perceived service quality and there by leading to a higher level of customer

satisfaction. In this regard, the gap scores were calculated based on the difference between the customers’

perceptions and expectations of services offered by ethiotelecom .

In general, it was found that, customers’ perceptions of service quality offered by ethio telecom at the

studied area with the studied service did not meet customer expectations (all gaps scores the dimensions are

negative).

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Descriptions of dimensions reported as follows;

Assurance; in this Dimension obtained gap score -4.91 with the average Gap Score of -1.64. Even if this one

dimension relatively better than the other one dimension, needs to make better and bring customer satisfaction

for those variable; Personal behavior of the staff enable to get the customer trust, Business center staff are polite

and strive for the customer benefit, Staff have expected knowledge and skill on the service to serve customer.

Tangibility; for this one dimension the finding Gap score -5.11 and its average Gap score were -1.71.in these

regard customers are not comfortable. Hence the service provider must work hard on those points; the company

provide update equipment for the service, the company Business Center facilities are attractive and the company

business located at the convenient position to the customer.

Responsiveness; responsiveness obtained a gap score of (-5.66) with an average gap score of (-1.88)

which show poor service quality and customers could not satisfied in this situation. Hence the service provider

has to work hard on this dimension like; Employee provide the service per the standard, Employee ready to

serve customer and Employee never tired and busy to respond for the customer request.

Empathy; the gap score goes wider in negativity with the obtained gap score -14.19 and its average gap score

-2.03. Shows above average user respondent not get quality service on those points; The business center staff

easily understand the customer need, All the business center staff give individual attention for customer, The

company and its employee give high priority for the customer interest,

56
The staff gives all information about the service for the customer, the company business center has convenient

working hour for all customer, bill quality and clarity understandable by its entire customer and the business

center waiting area, office, chair are convenient for all customer.

Reliability; the reliability dimension Gap score -6.51 and its average Gap Score -2.05. According to this data

the company far from delivering quality service to its esteemed customer on the following point’s perspective.

The clarity of the service kept consistently, the customer profile and record well-handled and the Company

informs any failure and damage ahead of time.

57
 CHAPTER 5

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter deals with the summary of findings, conclusions drawn from the findings and the

Recommendations forwarded for the better progress in services quality and making change on customer

Satisfaction in the studied area of ethio telecom Land line phone service. The recommendations covers per the

study finding, setting comment , and giving appropriate feedback based on the research evidence and the

importance of doing more on those dimensions in which the company got inferior score and also keep

up working on the superior scored dimensions. This chapter is presented under the headings: summary of

findings, conclusions, and recommendations.

5.1 Summary

The main objective of this study was to identify the impact of service quality on customer satisfaction using

SERVQUAL Model in case of ethio telecom Debrebirhan Town. The Remarkable development in Telecom

Technology has made people to communicate across distance share information and do business. Oodan et al.,

(1996) further explained that the availability and reliability of telecom services affect the success of business

and social interaction which rely on the service provider.

The study also pursued the understated specific objectives; to identify the impact of service quality on customer

satisfaction, to examine service quality dimensions that bring satisfaction to ethio telecom customer, to identify

what should be done to improve customer satisfaction of ethio telecom Land line Phone service. The research

was conducted using questionnaire consisting of 367sample respondent and observation.

58
Currently ethio telecom provides Various Lines of Telecom Service in the country, from those service, Land

line Phone Service is the oldest service of ethio telecom has been providing from its established time. This

study investigates the main cause of Land Line phone service problem for not increasing the customer of the

service and also the challenge to get new customer for the service critically increase and their perception on the

service quality. This research is distinguished from the other research; no research conducted before in the

studied area with the scope of Land Line Phone service and with this title. The main question of the research is;

how service quality impact customer satisfaction? Which service quality Dimensions bring satisfaction to ethio

telecom customer? What should be done to improve customer Satisfaction of ethio telecom Land Line Phone

service.

SERVQUAL is one of the main instruments used to measure the perceived service quality in this study and

mixed research approach, descriptive research design, Systematic probability sampling and both primary &

secondary data collection method were used.

The collected data has been processed and interpreted according to the nature of data Statistical Package for

Social Science (SPSS) software version 20 was employed to analyze and present the data through the statistical

tools used for this study, namely descriptive analysis, Pearson correlation and multiple Linear regression

analysis.

The descriptive statistical results were presented by tables, frequency distributions and Percentages to give a

condensed picture of the data. In this study Pearson’s correlation coefficient was used to determine the

relationships between service quality dimension and customer satisfaction. Multiple linear regression analysis

was used to investigate the effect of service quality dimension on customer satisfaction.

59
To summarize the overall perceived service quality is low (-9.31) meaning the level of service quality

they receive is lower than what they expect indicating there is no satisfaction. Parasuraman et al., (1985)

suggested that when perceived service quality is high, then it will lead to increase in customer satisfaction.

He supports the fact that service quality leads to customer satisfaction and this is in line with Saravana & Rao,

(2007, p.436) and Lee et al., (2000, p.226) acknowledge that customer satisfaction is based upon the level of

service quality provided by the service provider.

5.2 Conclusions

The objective of this study is to identify the impact of service quality on customer satisfaction using

SERVQUAL Model in case of ethio telecom Debrebrhan town. On the bases of the analysis given in the

previous chapter( chapter4) , the following conclusion is drawn for the main finding .

Even though ethiotelecom invest in order to modernize the telecom service in all service categories including

land line phone service, till the company criticized for poor quality of service. As stated in the problem

statement, which indicate the Gap of the service provider and service user.

According to the Gap Service which is developed by a group of American authors, a Parasuraman, Valarie

Zeithaml and Len Berry, in 1988 identified five Gaps that may cause customers to experience poor service

quality. This Gap arises when the management does not correctly perceive what the customer want. This means

the expected service by the service user and the experienced or the delivered service by the company not

matched.

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Out of the total respondent above 93% subscribe before ten years, the last ten years the percentage of new

subscriber for Land line phone were only 22or 6.20 % of the total respondent. This means totally the customer

is upset with the service quality of Land Line phone.

In addition to the distributed questionnaire , the researcher observation time , almost most of the service user

complain on the service were we get all the service via Mobile phone in a better way than using land line

phone . Mean that the Land Line phone is additional to the Mobile phone .hence, one of the grievance causes

and source is not only the problem of quality but also the service is not optional service from the mobile phone.

For the question have you get value added service in your Land Line phone? For this question 341 or 95.80%

were disagreed, 11 or 3.10% neutral and 4 or 1.10% agreed. Problem of accessing the subscriber with additional

or value added service is another weakness of the company which forced to lose its customer and the critical

challenge to get new customer. Kim et al. (2004) found that call quality, value added services and customer

support play a significant role in building customer satisfaction.

The other one critical finding which all the respondent response almost the same strongly agreed response was

for the question, Fault happened frequently? For this variable question, the respondent response was 316 or

88.76% agreed as the fault happened frequently. This assured as the Service consistency is too poor and

procedure of fault registration at the call center is inconveniency for the service user.in connection with this

problem , when there is damage or failure the company not inform and not aware the customer.

61
As the respondent response for the survey question and the researcher noted during in observation the land line

phone service charge is not affordable with the majority people financial capacity currently. Concerning tariffs

of the land line phone service, the researcher were requesting this question; the fixed wire line tariffs consider

the majority people financial capacity? The respondents were, 263 or 73.87% were disagreed, 32 or 9% were

neutral and 61 or 17.10 agreed. This finding enforces to conclude as the tariff is not affordable.

The other one weakness of the company this research finding confirm the received or perceived benefit and

expected benefit mentioned in contract not correct. Which is the problem of Gap 4: Between Service Delivery

and External Communication: The SERVQUAL service quality model was developed by a group of American

authors, a Parasuraman, Valarie Zeithaml and Len Berry, in 1988.Consumer expectations are highly influenced

by the statements made by company representatives and advertisements.

The gap arises when these assumed expectations are not fulfilled at the time of delivery of the service. The

discrepancy between actual service and the promised one may occur due to the following reasons; over

promising in external communication campaign, Failure to manage customer expectations, Failure to perform

according to specifications.

The researcher was providing question related to the service benefit to the respondent, the received service

benefit is correct as mentioned in the contract? For this question 147 or 41.30% of the respondent were agreed

nor did dis agree, 148 or 41.60 % were not agreed and 61 or 17.10% of the total respondent were agreed.

This indicates as there is a problem on the promised service and the actual experienced service. Generally from

the data collected via Survey and observation , the respondent response show almost in all parameters

respondent response was disagree for dependent and independent variable question.

62
Dissatisfied customers have no bond of loyalty with the Organization. In the words of Turel ET .al (2007)

adoption decision of usage is determined by price, social, emotional and quality provided by the service

provider. In connection with the subscriber of the service go decrease and the challenge to get new subscriber

for land line phone service, indicate as there is service quality problem.

Un affordable tariff, the slow commitment of the company to understand the customer need, the Gap with the

promised or communicated service benefit and the perceived or received service, the service is additional to the

mobile service not optional meaning no distinguished benefit differ from the mobile service currently delivered

all those mentioned problem or weakness is found in the investigation of this research.

The Servqual Model is an appropriate instrument to measure service quality impact on customer satisfaction,

because the 19 questions used to measure the five SERVQUAL dimensions were adapted from the study by

Parasuraman, Zeithaml, and Berry (1991).and the findings Show that Cronbach’s Alpha for all dimensions of

service quality are above 0.70 which indicates a high level of internal consistency for all items.

Table 4.9 indicate all the service quality dimension of service quality have a significant influence on

customers‟ satisfaction at 1% significance level. to Summarize it is possible to say that customers perceive

service quality is poor in all dimensions meaning their expectations fall in all Service quality

measurement dimensions.

In this regard, customers are not satisfied with any dimension of service quality. All the dimensions show a

wide gap between expected service and perceived service and this means that ethiotelecom must work

and strive for the better change of service quality in order to build satisfied customer in the studied area in case

of land line phone service

63
Over all Cronbach’s alpha value for nineteen items is 0.805. The same test is also conducted for customer

Satisfaction item and their result indicates 0.753 for customer satisfaction. there is a significant positive

relationship between the five dimensions of service quality and customer satisfaction, the highest

correlation is between tangibility and customer satisfaction (0.796) followed by

reliability(0.765),responsiveness (0.682) and the remaining dimension empathy and assurance (0.615)

and ( 0.600) respectively.

The weakest correlation is between assurance and customer satisfaction whereas; the strongest correlation is

between Tangibility and customer satisfaction. In general, if correlation is positive between two or more

variables, when service quality dimensions and customer satisfaction is positively related; delivering better

service quality ensures higher customer satisfaction.

According to Gorge et al.,(2003) interpretation and conclusion , table 4.9 indicate all the service quality

dimension of service quality have a significant influence on customers‟ satisfaction at 1% significance

level. To Summarize according to Table 4.9, it is possible to say that customers perceive service quality

is poor in all dimensions meaning their expectations fall in all. Service quality measurement dimensions.

To close the conclusion part of this study, those author confirm the influence of service quality on customer

satisfaction; If the received service is better than expected one, service quality is high. Otherwise, service

quality is inadequate and consumption experience ends up with dissatisfaction (Altunışık, ET al2007:176).

Quality has had a long term impact on the satisfaction of customers (Omachnu et. al.2008), Atalik & Arslan

(2009) found that creating value and offering quality of service offered to customers creates loyal customers.

64
HERMES newsletter (2005) found that satisfaction along with perceived service quality and service value

creates positive intentions of customers for usage and retention of telecom network.

5.3 Recommendations

This research has shown the impact of service quality on customer satisfaction in case of ethiotelecom

Debrebirhan town. The results obtained confirm that all the service quality dimensions have a positive

impact on customer satisfaction. Based on the findings and conclusions of the study, the following

recommendations are forwarded to the management of ethiotelecom.

As stated in previous chapters, the aim of the study was to identify the impact of service quality on customer

satisfaction using SERVQUAL Model in ethio telecom land line phone service in Debrebirhan town. The

impact of service quality on customer satisfaction is in detail analyzed in chapter four and conclusion forwarded

based on the collected respondent data in this chapter.

Even though the research Title enable to reach in different concept widely, the researcher of this study limited

due to different factor and forward the following specific recommendation and invite other researcher to

investigate in detail and broadly to overcome the problem related to this title with the update and detail data .

The company has to keep the promised or communicated service benefit and clarity of service consistently,

preventing any internal and external damage ahead of time. Because of from this study finding confirmed, the

company has great complained with its customer in this regard.

Ethiotelecom has to work an assessment of service quality from the customer and other stack holder

periodically and consistently so as to know the status of the expected and perceived service.

65
Assessing the service quality means knowing the strengths and weaknesses of service which will help to

devise new techniques to eliminate those weaknesses(Dabholkar, 1995) (Soderlund & Ohman,, 2003).

Generally in this study the overall perceived service quality is low (-9.31) because of the high fault

Frequency and total Service dawn time. Meaning the level of service quality they receive is lower than what

they expect indicating there is no satisfaction. Parasuraman et al., (1985) suggested that when perceived

service quality is high, then it will lead to increase in customer Satisfaction. Today providing quality service

is not an option but it is a requirement to survive for service giving companies. Hence; ethiotelecom must give

priority for quality.

In order to bring customer satisfaction in ethiotelecom for the Land line phone service, all the dimensions

show a wide gap between expected service and perceived service and this means that ethiotelecom must

work and strive for the better change of service quality , the company has to work in all the five Service

quality dimension.

To motivate the customer for using the land line phone service, tariff revision is needed which consider the

financial capacity of the customer. In addition to the survey questionnaire, the researcher noted this grievance of

most subscribers during his field observation and the daily customer comment at point of sales. To sum up ethio

telecom must work hard to overcome the finding problems in this study on the following points proved by those

researchers.

Customer satisfaction is now becoming a corporate level strategy (Rust and Zahorik, 1993).

From literature review, there are many factors that affect customer satisfaction. Such factors include friendly

66
employees, courteous employees, knowledgeable employees, helpful employees, accuracy of billing, billing

timeliness, competitive pricing, service quality, good value, billing clarity and quick service (Hokanson, 1995).

From the studies carried out in many countries, factors like: service quality, and perceived value, are the key

constructs affecting the customer’s satisfaction with telecom services. Cöner and Güngör (2002) found

the quality of service would leads to more loyal customer and create satisfied customer.

5.4 Future Suggestion of the study

As this study is conducted on only one service, Land Line Telecom service and restricted only

targeting the impact of service quality on customer satisfaction, its scope can be broaden in aim of the

study and other services should also be included in the studies. This study is the first one with

this Title in ethiotelecom at Debrebrhan Town. The research provides a direction to the decision

makers regarding the dimensions of service quality those require high level of attention.

5.5 Limitation of the Research

This study is restricted to only one service, Land line phone telecom Service of ethiotelecom in

Debrebrhan Town. If other services were included might provide different results.

The critical limitation faced the researcher was the lack of experience or expertise on doing research work.

Distribution and collection of questionnaire due to Most of the respondents were too busy to respond the

questionnaire and also they were not interested to respond for the questionnaire. No research was found done

with this title in the studied area in order to see the gap of the previous research.

67
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 Appendix1

. FIXED LINE RESOURCE DATA AT DEBREBRHAN TOWN

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 Appendix 2

Questionnaire;

Amharic and English Version

1.1 Amharic

በደብረብርሃን ዩንቨርሲቲ የድህረ ምረቃ ፕሮግራም

ለደንበኞች የተዘጋጀ መ ይቅ

ዉድ ደንበኞች ፤

እኔ በአሁኑ ስዓት በደብረብርሃን ዩንቨርሲቲ የድህረ ምረቃ Master of Business administration (MBA) ተማሪ ስሆን የመመረቂያ

ናቴንም በኢትዮ ቴሌኮም ደብርብርሃን አገልግሎት መስጫ ማዕከል በመደበኛ መስመር አገልግሎት “ ራት ያለው አገልግሎት በደንበኞች

እርካታ ላይ ያለው ተፅዕኖ ” በሚል ርዕስ ናቴን እየሰራሁ እገኛለሁ፡የዚህ ናት አላማም በዚህ አገልግሎት ላይ የአለዉን ራት እና የደንበኞች

እርካታ በቂ መረጃ ከደንበኞች በመሰብሰብ ናቱን ዉ ታማ እና ተአማኒ ያለዉ ማድረግ ሲሆን ናቱ የተሳካ ይሆን ዘንድ የእርሶዎ ትብብር

በ ም ያስፈልገኛል፡፡ ስለዚህ በመ ይቁ መሰረት መልስዎን ይሠ ኝ ዘንድ በአክብሮት እ ይቃለሁ፡፡ በመ ይቁ የሚሰ ት ምላሽ ለ ናቴ

ብቻ የሚውል ሲሆን መልስዎትም በሚስ ር ይያዛል፡፡ ለትብብርዎ በቅድሚያ በ ም አመሰግናለሁ!

ማስታወሻ፡

- ስም መ ቀስ አያስፈልግም፡፡

- ትክክል ነዉ ብለዉ በሚያስቡት ምርጫዎ ት ለ ት የራይት (√) ምልክት ያድርጉ፡፡

ክ ል አንድ የደንበኞች የግል ሁኔታ

1. ታ ወንድ ሴት

2. እድሜ 20-30 26-40 40-50 51-60 ከ60 በላይ

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3. የገቢ ሁኔታ

እስከ 2000 ሺህ የኢትዮጰያ ብር

ከ2000እስከ 3000 ሺህ የኢትዮጵያ ብር

ከ3000እስከ 4500 ሺህ የኢትዮጵያ ብር

ከ4500 እስከ 5000 ሺህ የኢትዮጰያ ብር

ከ5000 ሺህ የኢትዮጵያ ብር በላይ

4. የስራ ሁኔታ

በመንግስት ድርጅት በግል ድርጅት የግል ስራ

5. የትምህርት ደረጃ

ከ1ኛ እስከ 12ኛ ክ ል ሰርተ ኬት ዲፕሎማ

የመጀመርያ ድግሪ ሁለተኛ ድግሪ እና ከዚያ በላይ

ክ ል ሁለት፤ ከ ናቱ ጋር ተያያዥነት ያላቸዉ ያቄዎች

ትክክል ነዉ ብለዉ በሚያስቡት ምርጫዎ ት ለ ት የራይት (√) ምልክት ያድርጉ፡፡

1. እርስዎ የአገልግሎቱ ተ ቃሚ ከሆኑ ምን ያህል ጊዜ ይሆኖታል ?

ከ 1 እስከ 5 ዓመት ከ5እስከ 10 ኣመት ከ10 እስከ 15 ዓመት

ከ15 እስከ 20 ዓመት ከ20 እስከ 25 ዓመት ከ25 ዓመት በላይ

2. የአገልግሎቱ ደንበኝነትዎ የግል የድርጅት

3. ማንኛዉን የ ጆታ ክ ያ መንገድ ይ ቀማሉ ?

የቅድመ ክ ያ የድህረ (በቢል) ክ ያ

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4. ለ ያቄ ቁ ር 3 ምልስዎ ድህረ ወይም በቢል የሚለዉን ከሆን ፤ ክ ያዉን ለመፈ ም በአገልግሎት መስጫ ማእከሉ ለምን ያህል

ጊዜ ይቆያሉ ?

ከ1- 5 ደቂቃ ከ5-10 ደቂቃ ከ10- 15 ደቂቃ

ከ15-20 ደቂቃ ከ20-30 ደቂቃ ከ30ደቂቃ በላይ

5. በአገልግሎት መስጫ ማዕከሉ ሰራተኞች አገልግሎት አሰ የበለ የሚስተናገዱበት እና የረኩት በማናቸዉ ጊዜ ነዉ?

በቅድመ ሽያ ወይም የአገልግሎቱን ዉል ከመፈረሜ በ ት

በድህረ ሽያ ወይም የአገልግሎቱን ዉል ከ ረምኩ ቡኋላ

በሁለቱም ጊዜ እረክቻለሁ

በሁለቱም ጊዜ አረካሁም

ክ ል ሦስት የደንበኞች እርካታ መ ይቅ

መመርያ፤ ትክክል ነዉ ብለዉ በሚያስቡት ምርጫዎ ት ለ ት የራይት (√) ምልክት ያድርጉ፡፡

76
 በ ም አልስማም መልስ አልሰ ም በ ም እስማማለሁ

1 2 3 4 5 6 7

የደንበኞች እርካታ መ ይቅ 1 2 3 4 5 6 7

1 በአገልግሎት መስጫ ማዕከሉ ሰረታኞች ብቃት እረክቻለሁ

2 የሰራተኞቹ ስለአገልግሎቱ የሚገል በት መንገድ ተመችቶኛል

3 ሰራተኞቹ ተገልጋይን ለመርዳት የሚያደርጉት ረት አመርቂ ነዉ

4 የሰራተኞች አለባበስ እና ን ህና አ ባበቅ ለደንበኞች ምቾት የሚሰ ነዉ

5 ሰራተኞቹ ስለመደበኛ መስምር አገልግሎት ቅም እና ባህርያት በአግባቡ እና በበቂ

ሁኔታ ገለጻ ያደርጋሉ

6 ቀ ሲበላሽ በቀላሉ ይ ገንልኛል ወይም እጅግ በትንሽ ክ ያ ይተካልኛል

7 በአገልግሎቱ ላይ ተደጋጋሚ ብልሽት ያጋ መኛል

8. ለአገልግሎቱ ምን የቀዉ ክ ያ በዉሉ ላይ ከተ የቀዉ ጋር ተመሳሳይ ነዉ

9. በአገልግሎቱ የአገኘሁት ቅም ዉለታዉ ላይ ከተ ቀሱት ጋር ተመሳሳይ ነዉ

10 የአገልግሎቱ ተ ቃሚ በመሆኔ ከድም ባሻገር ተጨማሪ አገልግሎት አግኝቻለሁ

11 ብልሽት ሲያጋ መኝ ዉል በገባሁት መሰረት ይ ገንልኛል

12 ለአገልግሎቱ የሚ የቀዉ የ ጆታ ሂሳብ የሁሉንም አቅም ያማከለ ነዉ

77
 ክ ል 4 የደንበኛ አገልግሎት ራት መ ይቅ

መመሪያ፡- እባክዎትን ከተሰ ት አማራ ች የተስማሙበት ላይ(√)ምልክት ያድርጉ፡፡

በ ም አልስማም መልስ አልሰ ም በ ም እስማማለሁ

1 2 3 4 5 6 7

የአገልግሎት ራት መመዘናወች 1 2 3 4 5 6 7

ተጨባ ነት

13 ድርጅቱ አገልግሎቱን በአግባቡ ሊሰ የሚችል ዘመናዊ መሳርያ ያቀርባል

14 የድርጅቱ የሥራ ቁሳቁሶች ለእይታ የሚስቡ ናቸዉ ?

15 የድርጅቱ አገልግሎት መስጫ ማዕከል ለደንበኞች በሚያመች ቦታ ላይ ነዉ

16 ደንበኛ የሚስተንግዱ ሠራተኞች አለባበሳቸዉ ሩና ን ህናዉን የ በቀ ነዉ?

ታማኝነት

17 የአገልግሎት መስጫ ማዕከሉ የሚሰ ዉ አገልግሎት ራት ወ ነት የአለዉ ነዉ

18 ሰራተኞች የደንበኞችን ማህደር በትክክል ይይዛሉ?

19 ሰራተኞች በተቀመ ዉ መስፈርት መሠረት አገልግሎት ይሰ ለ?

20 ድርጅቱ ማንኛዉንም ብልሽት በቅድሚያ ያሳዉቃል

ተ ያቅነት

21 ሠራተኞቹ የሚገባዉን አገልግሎት በሰአቱ ይሰ ሉ

22 ሠራተኞች ደንበኞችን ለመርዳት ( ለማገልገል ) ላጎት አላቸዉ

23 ሠራተኞች ሁል ጊዜ ደከመኝ ሰለቸኝ ሳይሉ ደንበኛን ያስተናግዳሉ

24 ሠራተኞች ለደንበኞች ያቄ ፈ ን ምላሽ እና ትኩረት ይሰ ሉ?

በራስመተማመን

78
25 የሠራተኞቹ ባህሪ ደንበኞች እምነት እንዲኖራቸው ያደርጋል?

26 ሠራተኞቹ ትህትና አላቸው ለደንበኛም ቅም ይተጋሉ

27 ሠራተኞቹ ደንበኞችን ለማስተናገድ በአገልግሎቱ ላይ በቂ እዉቀት አላቸው?

የሥራባሇቤትነት

28 ሠራተኞቹ የደንበኞችን ላጎት በቀላሉ ይረዳሉ

29 ሁሉም ሠራተኞች ደንበኞችን በአግባብ ያስተናግዳለ ?

30 ድርጅቱ እና ሠራተኞቹ ለደንበኛ ያቄ ትኩረት እና ቅድሚያ ይሰ ሉ

31 ሠራተኞቹ ስለአገልግሎቱእናከአገልግሎቱ ጋር ለተያያዘ ጉዳይ በቂገለጻ ይሰ ለ

32 የአገልግሎት መሥጫ ማዕከሉ ለሁለም ደንበኛ አመቺ የሥራ ሰዓት አለዉ

33 የሂሳብ መ የቂ ቢል ግል እና ራት ያለዉ በመሆኑ በሁሉም ደንበኛ ለመረዳት ቀላል ነዉ

34 የአገልግሎት መስቻ ማዕከሉ ለሁሉም ደንበኞች ምቹ የሆነ ቢሮ ፤ወንበር እና የወረ

መ በቂያ ቦታ አለዉ

Source; International Journal of Advancements in Technology

http://ijict.org/ ISSN 0976-4860 Vol. 5 No. 1(March 2014)©IJoAT

79
 DEBREBRHAN UNIVERSITY (DBU)

College of Business and Economics (CB&E)

Master of Business Administration (MBA)

Questionnaire on service quality impact on customer satisfaction of land line phone subscriber of

ethiotelecom in the case of Debrebrhan town.

Dear respondents,

This study is conducted in partial fulfillment of the requirement for the master’s degree in business

administration (MBA) at Debrebrhan University.

Its main objective is to identify the service quality impact on customer satisfaction of land line phone subscriber

of ethiotelecom in the case of Debrebrhan town. The research is going to be carried out on your response and

other relevant data that could support it.

The purpose of this questionnaire is to obtain in your perception and views regarding various aspects of service

quality of ethiotelecom. Your cooperation to respond is very important to this study because it represent

thousands of others who are not including in the sample.

Please answer every question, the questionnaire seeks basic factual information and you can tick the option that

you choose or write your answer on the blank space provided. Space is provided at the end of the questionnaires

for to add further comment or explanation. I would promise that all information you provided would be strictly

confidential.

I thank you very much in advance for your cooperation.

80
The questionnaire has four Parts;

Part 1. Personal Information.

Part 2. Topic Related questionnaire.

Part 3. Customer satisfaction questionnaire.

Part 4. Service Quality questionnaires.

PART I Personal Information

Instruction; Put “√” in the box of your choice.

1. Gender [ ] Male [ ] Female

2. What Age group do you belong to?

[ ] 20- 30 [ ] 51-60

[ ] 31-40 [ ] above 60

[ ] 41-50

3. What is your educational level?

[ ] 1 to 12 grade [ ] first Degree

[ ] Certificate [ ] Master’s Degree and [ ] College

Diploma

81
 4. What is your average Gross income per Month ?

[ ] Less than 2000 ethio Birr [ ] 4501- 5000 ethio birr

[ ] 2000- 3000 ethio Birr [ ] above 5000

[ ] 3001– 4500 ethio Birr

5. What is your Occupation?

[ ] Public employed [ ] Private employed [ ] Self employed

Part II Question Related to the Topic.

Instruction; Put “√” in the box of your choice

1. For how long are you a customer of fixed wire line?

[ ] 1-5 Year [ ] 15-20Year

[ ] 5-10 Year [ ] 20-25Year

[ ] 10-15 [ ] above 25 Year

2. For which purpose you have rented the service?

[ ] Home Service

[ ] Business service

[ ] Organization (governmental or Non-governmental)

82
3. Types of payment Mode You use ?

[ ] Prepaid payment mode

[ ] Postpaid payment mode

4. If your answer for question number 3 is postpaid payment mode, how long time took to pay your bill at

the business center?

[ ] 5-10 Minutes [ ] 15-20 minutes

[ ] 10-15 minutes [ ] 20-30 minutes

[ ] above 30 minutes

5. When you are satisfied with the business center staff treatment or service?

[ ] In pre-sales service [ ] in both pre and post sales

[ ] In after or post sales service [ ] not satisfied in both time.

83
 PART III Customer Satisfaction Questionnaire.

Instru tion; Put √ in the o of your choice

Strongly Strongly

Disagree Neutral Agree

1 2 3 4 5 6 7

Questionnaire 1 2 3 4 5 6 7
1 I am satisfied with efficiency of the business center staff.
2 I am satisfied with the communication behavior of the staff
3 I am satisfied with the commitment of the staff to support the
customer.
4 Employee appear neatly and well Dressed.
5 Employee explains properly and accurately about the service benefit
and characteristic.
6 Fault happened frequently.
7. Price of fixed wire line service is correct as being mentioned in
contract agreement.
8 The received service benefits are correct as mentioned in the contract.
9 I get from the service additional value added service.
10 When fault happen the maintenance is done per the agreement
mentioned during the contract agreement.
11 The fixed wire line tariffs consider the majority people financial
capacity.
Source; International Journal of Advancements in Technology
http://ijict.org/ ISSN 0976-4860 Vol. 5 No. 1(March 2014) ©IJoA

84
 Part IV Service Quality Questionnaire

Instru tion; Put √ in the o of our hoi e

Strongly Strongly

Disagree Neutral agree

1 2 3 4 5 6 7

Quality Dimension 1 2 3 4 5 6 7
Tangibility
13 The company provide update equipment for the service
14 The company Business Center facilities are attractive
15 The company business located at the convenient position to the customer
Reliability
16 The clarity of the service kept consistently
17 The customer profile and record well handled
18 The company inform any failure and damage ahead of time
Responsiveness
19 Employee provide the service per the standard
20 Employee ready to serve customer
21 Employee never tired and busy to respond for the customer request
Assurance
22 Personal behavior of the staff enable to get the customer trust
23 Business center staff are polite and strive for the customer benefit
24 Staff have expected knowledge and skill on the service to serve customer
Empathy
25 The business center staff easily understand the customer need
26 All the business center staff give individual attention for customer
27 The company and its employee give high priority for the customer interest
28 The staff give all information about the service for the customer
29 The company business center has convenient working hour for all customer
30 The bill quality and clarity understandable by all its customer
31 The business center waiting area , office, chair are convenient for all
customer
Source; International Journal of Advancements in Technology

http://ijict.org/ ISSN 0976-4860 Vol. 5 No. 1(March 2014) ©IJoAT

85
 Appendix 3

GAP SCORE ANALYSIS

Dimension Statement Perception Expectation Gap Score Over all Gap score Average Gap
Score
TA1 2.87 4.28 -1.41
Tangibilit

TA2 3.08 4.91 -1.83

TA3 3.09 4.96 -1.87 -5.11 -1.71
y

RL1 3.12 5.04 -2.28

Reliability

RL2 2.16 5.04 -2.88

RL3 3.15 4.50 -1.35 -6.51 -2.05

RS1 3.40 5.41 -2.01

Responsiven

RS2 3.22 5.09 -1.87

RS3 3.25 5.03 -1.78 -5.66 -1.88
ess

AS1 3.95 5.29 -1.34

Assuranc

AS2 3.46 5.21 -1.75

AS3 3.28 5.10 -1.82 -4.91 -1.64
e

EM1 2.50 4.50 -2.00

EM2 3.13 5.41 -2.28
EM3 3.19 5.09 -1.90
Empathy

EM4 3.17 5.03 -1.86

EM5 3.16 5.28 -2.12
EM6 3.04 5.21 -2.17
EM7 3.23 5.09 -1.86 -14.19 -2.03

-36.38 -9.31
Table 4.4: Average Gap Score on Expectations and Perceptions

Source: Field Survey (2018)

86
 Appendix 4

GAP SCORE ANALYSIS

Table 4.4: Ranked Service Quality Dimensions and its Average Score

Ranking Dimensions Gap score Average score

1 Assurance -4.91 -1.64

2 Tangibility -5.11 -1.71

3 Responsiveness -5.66 -1.88

4 empathy -14.19 -2.03

5 Reliability -6.51 -2.05

Source: Field Survey (2018

87
 Appendix 5

The Expectation Questionnaire

Quality Dimension Expectation of Respondent Score

1 The Telecom company provide update equipment for the service. 4.28

2 The Modern company Business Center facilities are attractive. 4.91

3 The company business located at the convenient position to the customer. 4.96

4 I expect clarity of the service kept consistently. 5.04

5 The customer profile recorded well and update. 5.04

6 I expect the company inform any failure and damage ahead of time. 4.50

7 I expect all Employee provide the service per the standard. 5.41

8 Employee ready to serve customer any time . 5.09

9 Employee never tired and busy to respond for the customer request. 5.03

10 Personal behavior of the staff enables to get the customer trust. 5.29

11 Business center staff is polite and strive for the customer benefit. 5.21

12 Staff have expected knowledge and skill on the service to serve customer. 5.10

13 The business center staff easily understands the customer need. 4.50

14 All the business center staff give individual attention for all customer interest . 5.41

15 As the company and its employee give high priority for the customer interest. 5.09

16 The staff gives all information about the service for the customer in pre and post sales. 5.03

17 The company business center has convenient working hour for all customer. 5.28

18 I expect Clear bill quality understandable by its entire customer. 5.21

19 As the business center waiting area , office, chair are convenient for all customer 5.09

Average 5.025

88
 Appendix 6

The Perception questionnaire;

Quality Dimension Expectation of Respondent Score

1 The company provide update e equipment for the service 2.87

2 The company Business Center facilities are attractive 3.08

3 The company business located at the convenient position to the customer 3.09

4 The clarity of the service kept consistently 3.12

5 The customer profile and record well handled 2.16

6 The company inform any failure and damage ahead of time 3.15

7 Employee provide the service per the standard 3.40

8 Employee ready to serve customer 3.22

9 Employee never tired and busy to respond for the customer request 3.25

10 Personal behavior of the staff enable to get the customer trust 3.95

11 Business center staff are polite and strive for the customer benefit 3.46

12 Staff have expected knowledge and skill on the service to serve customer 3.28

13 The business center staff easily understand the customer need 2.50

14 All the business center staff give individual attention for customer 3.13

15 The company and its employee give high priority for the customer interest 3.19

16 The staff give all information about the service for the customer 3.17

17 The company business center has convenient working hour for all customer 3.16

18 The bill quality and clarity understandable by all its customer 3.04

19 The business center waiting area , office, chair are convenient for all customer 3.23

Average of perception 3.13

Source; spss output survey 2018

89