WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

ASSESSING CUSTOMER SERVICE DELIVERY SYSTEMS

AND EFFECTS ON CUSTOMER SATISFACTION IN
MACRO FINANCE INSTITUTION WOLAITA SODO TOWN
ADMINISTRATION

THE RESEARCH PROPOSAL SUBMITTED TO THE DEPARTMENT OF

MANAGEMENT IN PARTIAL FULFILLMENT OF BACHELOR OF ARTS
DEGREE IN MANAGEMENT.

PREPRED BY LIDIYA BERGENE

ID MGMT/WE/197/12
ADVISOR ;- ADISU (MBA)

MARCH ,
2024

WOLAITA SODO, ETHIOPIA

Table of Contents
1. INTRODUCTION.............................................................................................................................................................3

1.1. BACK GROUND OF THE STUDY...................................................................................................................3

1.2. Statement of the problem...........................................................................................................................................4

1.3. Objectives of the study................................................................................................................................................5

1.3.1. General objective.......................................................................................................................................................5

1.3.2. Specific objective......................................................................................................................................................5

1.4. Significance of the study............................................................................................................................................5

1.5. Scope of the study..........................................................................................................................................................5

CHAPTER TWO...........................................................................................................................................................................6

2. Literature review......................................................................................................................................................................6

2.1 Service Industries are every where........................................................................................................................6

2.1.1Distinctive characteristics of services..........................................................................................................7

2.1.2 The customer service environment...............................................................................................................9

2.1.3 Defining a service culture..................................................................................................................................9

2.1.5The service concept................................................................................................................................................9

2.1.6 Significant of customer’s services...............................................................................................................10

2.2 Customer satisfaction....................................................................................................................................................11

2.2.1Customer perceived value...................................................................................................................................11

2.2.2 The need of customers........................................................................................................................................12

2.2.3 What customer wants?.......................................................................................................................................12

2.2.4 Customer satisfaction..........................................................................................................................................13

2.2.5 Total customer satisfaction..............................................................................................................................13

2.2.6 Total quality management................................................................................................................................13

2.2.7 Measuring satisfaction.......................................................................................................................................14

1
 2.3 What is customer service?................................................................................................................................15

What are the guiding principles of companies that deliver effective customer service?15

2.3. Empirical literature review.................................................................................................................................17

CHAPTER THREE....................................................................................................................................................................17

3. RESEARCH METHODOLOGY.............................................................................................................................17

3.1. Description of study area..........................................................................................................................................17

3.2. Study design.....................................................................................................................................................................17

3.2. Population.........................................................................................................................................................................18

3.3 .sample size........................................................................................................................................................................18

3.4. Sampling technique......................................................................................................................................................18

3.5. Method of data collection.........................................................................................................................................18

3.6. Data processing and analysis..................................................................................................................................19

3.6.1. Data processing....................................................................................................................................................19

3.6.2. Data analysis..........................................................................................................................................................19

3.7 Data Source and Type..................................................................................................................................................19

WORK PLAN AND TIME PLAN..................................................................................................................................................19

4.1 Budget Break Down.............................................................................................................................................................19
4.2. TIME FRAME......................................................................................................................................................................20
REFERENCES.....................................................................................................................................................................................21

CHAPTER ONE

2
1.INTRODUCTION
1.1. BACK GROUND OF THE STUDY
Today, companies face their toughest competition ever. Moving from a product and sales
philosophy to a marketing philosophy, however, gives a company a better chance of
outperforming competition. The cornerstone of a well-conceived marketing orientation is strong
customer relationships. Marketers must connect with customers – informing, engaging, and may
be even energizing them in the process. John chambers, CEO of Cisco systems, put it well:
“Make your customer the center of you culture.” Customer centered companies are adapt at
building customer relationships, not just products they are skilled in market engineering, not just
product engineering (Kottler, 2005).
A walk in to most micro financ and you’ll notice that human contact is kept to a minimum. The
scenario at a branch of Washington Mutual, known affectionately as “Mamu” (WA-Moo) by its
employees and loyal customers, s a sharp contrast, there are not teller windows. No rapes if you
need to open a checking account (with free checking). You step right up t the concierge station
and a friendly person directs you to the right “nook”. Mamu gets caries with customers by
training its sales associates to be approachable and to find out about customers ‘needs (Kottler,
2005).
Improving satisfaction is the major goal of many organizations in the service sector now a day’s
customers perception, evocation, a psychological relation to the consumption experience with a
product or services (Palmer, 1995).
As companies find it harder and harder to differentiate their physical produces, they turn to
service differentiation. Many books point out the significant profitability of companies that
manage to deliver superior as service. Companies seek to develop a reputation for superior
performance in on-time delivery, better and faster answering of inquiries, and quicker resolution
of complaints. Service becomes the Mantra. Perhaps the most dramatic example of how the
growth of service has changed the face of business is what has happened to one of the world’s
most successful companies, IBM (Kottler, 2005).

The researcher want tops study about the macro finance institution wolaita sodo town
administration which would be solved the problem that arise when the studying in service
delivery and customer satisfaction are not satisfactory in case wolaita sodo town administration

3
1.2. Statement of the problem
Now a day’s in Ethiopia the bank industry is being highly expanded. New banks are entering to
the market and taking shares of banks that are facing the new challenges and surrender their
potential market.
It is time for macro finance institution to do a lot for its sustainable development and profitability
and also provide a good service for its customer concerning loan user, money transfer user,
depositor and other users. If the bank could not deliver proper service for its customer, the bank
will incur extra cost for customer attraction. Then what makes customer service issue of macro
finance institution in wolaita sodo town administration is the critical area to study.
1.3. Research question
In the view of achieving good service delivery and customer satisfaction, the researcher put the
following key basic questions.
What is the employees view about the working environment and their approach with the
customer?

What is the participation of customers in the decision process or other activities in macro
finance institution?
Does the bank provide proper service for the depositor?
Does the customers satisfied by the existing service?
1.3. Objectives of the study
1.3.1. General objective
The general objective of the study is to assessing the quality of service delivery and customers’
satisfaction relationship macro finance institution in wolaita sodo town administration as a case
study.
1.3.2. Specific objective
Identify the level of the existing service quality in accordance with customer’s perception.

To view about the working environment employees and their approach with the customer.

 To participate the customers in the decision process or other activities in macro finance
instituation.

 To provide bank proper service for the depositor.

 To satisfy the customers by the existing service.

4
 1.4. Significance of the study
The primary purpose of the research will be to identify the problem which may be affect the
service delivery and customer satisfaction.
The outcome of the study will be to help the bank to understand the weakness and strength side
of service delivery and customer satisfaction. This leads to the bank may use to take necessary
measurement to improve the strategies in the study area. The study will assist the researchers to
get basic research skill. Lastly, the research results can be considerable input for other
researchers, who are interest to assess any attributes related to bank services.

1.5. Scope of the study

The study focuse on service delivery and customer satisfaction in macro finance institutional
Sodo town. The study also will focus only on customers issue and the relevant variable related to
customers. Even if the bank renders its service to its international customers, the study focuses
only on domestic customers.
The study will be to compose of the opinion or ideas of those customers selected by
simple random sampling to make the study every easy and due to limitation of resource and time
to contact on the customers of the bank.
1.6. Limitation of the study
Some of the limitation that face when the researchers make the research includes: -
Limitation of materials like book, Journal, articles and research paper in the area

Lack of researchers’ experience.

5
 CHAPTER TWO
2. Literature review

2.1 Service Industries are every where

The government sector, with its courts, employment services hospitals, loan agencies, military
services, police and fire departments, postal service, regulatory agencies, and school, is in the
service business. The private nonprofit sector, with its Museums, charities churches, colleges,
foundations, and hospitals, is in the service business. A good part of the business sector,
Management consulting firms, hotels, insurance companies, low firms, Management consulting
firms, Medicaid practices Motion picture companies, plumbing repair companies and real estate
firms, is in workers in the manufacturing sector, such as computer operators, accountants, and
legal staff, are really service providers. In fact they make up a “service factory” providing
service to the goods factory.” And those in the retail sector such as cashiers, clerks, and sales
people and customer service representatives are also providing service.

We define a service as follows: A service is any act or performance that one party can offer
another that is essentially intangible and does not result in the ownership of anything its
production may or may not be field to a physical product.

Manufacturers, distributors and retailers can provide value added services or simply excellent
customer service to differentiate themselves (kottler, 2005).
Categories of service Mix
A company offering often includes some services. The service component can be a minor or a
major part of the total offering. Five categories of offerings can be distinguished.

1. Pure tangible good – the offering consists primarily of a tangible good such as soap,
toothpaste, or salt. No services accompany the product.
2. Tangible good with accompanying services – The offering consists of a tangible good
accompanied by one or more services. Levitt observes that the m make technologically
sophisticated the generic product (e.g., cars and computers); the more dependent are its sales
on the quality and availability of its accompanying customer. Services (e.g. Display rooms,
deliver, repairs and maintenance) application aids, operator training, installation advice,
warranty fulfillment) .

6
3. Ay bird – The offering consists of level parts of goods and services for example people
patronize restaurants for both food and service
4. Major Service with accompanying minor goods and services _ the offering consists of a
Major Service along with additional services or supporting goods for example, airline
passenger buy transportation.
5. Pure service – The offering consists primarily of a service Examples include baby- sitting
psychotherapy and massage because of this varying goods to service mix it is difficult to
general ice about services without further distinctions, here are some additional distinctions
that can be helpful:
 Service vary as to whether they are equipment based (automated carwashes, vending
Machines) or people based (window washing, accounting services)
 Service companies can choose among different processes to deliver their service.
 Same services resource the client’s presence and same do not.
 Service differs as to whether they meet a personal need (personal services) or business need
(business services).
 Service providers differ in their objectives (profit or nonprofit and ownership (private or
public) (Kotler 2005).
2.1.1Distinctive characteristics of services
Services have four distinctive characteristics that greatly affect the design of marketing programs
intangibility, inseparability, variability, and perish ability.
INTANGIBILITY: unlike physical products, services cannot be seen, tasted, felt, heard, or
smelled before they are bought. The person getting a face – lift cannot see the results before the
purchase, and the patient in the psychiatrist’s office cannot know the exact outcome.

To reduce uncertainty, buyers will look for evidence of quality. They will draw inferences about
quality from the place, people equipment, communication material, symbols and price that they
see. Therefore the service provider task is to manage the evidence to tangibilize the intangible.
INSEPARABILITY: service are typically produced and consumed simultaneously. This is not
true of physical goods, which are manufactured put into inventory distributed through multiple
resellers, and consumed later. If a person renders the service then the provider is a part of
service. Because the clients also present as the service is produced, provider client’s interaction
is a special feature of services marketing.

7
In the case of entertainment and professional services buyers are very interested in the specific
provider. It is not the same concert if Madonna is indisposed and replaced by Shania Twain, or if
a legal defense will be supplied by John Nobody because antitrust expert David Bias is
unavailable. When clients have strong provider preferences price is raised to ration the preferred
providers limited time

VARIABILITY: Because service depends on who provides them and when and where they are
provided, they are highly variable. Same doctors have an excellent bedside Manner others are
less patient with their patients. Same surgeons are very successful in performing a certain
operation others are not service buyers are aware of this variability and often talk to others before
selecting a service provider. Here are three steps service firms can take to increase quality
control.
PERISHABILITY: services cannot be stored. Perish ability is not a problem when demand is
steady. When demand fluctuates, services firms have to own much more equipment because or
rush hour demand than if demand were even throughout the day same doctors charge patients for
missed appointment because the service value exists only at that point.
- Refer more sources – prior research work
- Books
- Articles
- Since your title is service delivery and customer satisfaction your literature should focus on
this so incorporate a service delivery.
- Meaningfully organize and analyze the information you obtained (not simply writing
whatever it is) (kottler 2005).
2.1.2 The customer service environment
In this section the six components that make up a service environment and contribute to
customer service delivery are discussed. Use the factors to ensure that a viable customer service
environment is the responsibility of every employee of the organization not just the customer
service representatives.

Let’s take time to examine that six key components of a customer service environment which
will illustrate many factors that contribute to customer service delivery:

8
 1. The customer
2. Organizational culture
3. Human resources
4. Product/ deliverables
5. Delivery systems
6. Service (Robert W. Lucas, 2005).

2.1.3 Defining a service culture

Concept many elements contribute to a service culture. What is service culture in an
organization? The answer is that it is different for each organization. No two organizations
operate in the same manner, have the same focus or provide management that accomplishes the
same results.

2.1.5The service concept

The service concept is the specification that describes the benefits offered by the service. This
becomes a key element in the customer’s perception of the ‘moment of truth’, when the service
provider and customer actually meet. The service concept can include a complex set of values –
Physical, psychological and emotional – and these affect both what the company does and how it
is perceived by its customers and clients. The Service concept also describes the way in which
the organization would. Like its employees and stakeholders to perceive its service offering. The
service concept includes the service package within the offer, and includes both the physical and
tangible elements of the service offering and its intellectual/intangible elements. The total service
package – the Bundle of goods and services– includes:
Physical items – the physical good that is changing hands, if any (Often called facilitating goods
in services);
Sensual benefits – aspects that can be experienced through the Sensory system (explicit
intangibles);
Psychological benefits – emotional or other aspects (implicit Intangibles).
The service delivery system is the way in which the service concept and Service package are
actually delivered to the consumer. This process May include customer participation in the
manner in which the offer Is designed and delivered to customers, including personnel, clients,

9
Technology and physical support. The service delivery system is dictated by and defined by the
service concept (Heskettet al., 1990).

2.1.6 Significant of customer’s services

Customer service allows a company to build a number of important strengths regarding
competitive advantage there are four major advantage of customer service:-
i. Building competitive barriers
ii. Ensuring customer loyalty
iii. Differentiating products
iv. Decreasing marketing costs. (Bate son, 1999) Service quality

Quality:- is a measure of how closely a product conforms to customers’ needs, wants and
expectations. It is the degree to which a product conforms to customer expectation and
specification (palmer and Cole 1999).

Determinant of service quality

The criteria used by customers that are important in molding their expectation and perceptions fit
the following dimensions:
Reliability involves consistency of performance and dependability. It means that the firm
performs the service right the first time. It also means that the firm honors its premises
specifically.
Responsiveness: concerns the willingness of employees to provide service.
Competency: means possession of the required skills and knowledge to perform the service.
Courtesy: Involves politeness, respect, consideration, and friendly approach
Communication: Means keeping customer informed in language they understand and listening to
them. It may mean that the company has to adjust its language for different customer.
Credibility: involves trustworthiness, believability, and honesty. It involves having the
customer’s best interests at here.
Security: It freedom from danger, risk or doubt.
2.2 Customer satisfaction
Building customer values, satisfaction and loyalty managers who believe the customer is the
company’s only true profit center consider the traditional organization chart in figure 5. La – a

10
pyramid with the president at the top management in the middle and front - line people and
customers at the bottom –obsolete.

2.2.1Customer perceived value

Customer are more educated and informed than over and they have the tools to verify company’s
claims and seek out support or alternative how then does that ultimately make choices?
Customers tend to be value maximizes within the bounds of search costs and limited knowledge,
mobility and income.
Customer perceived value (CPV) is the difference between the prospective customer’s evaluation
of all the benefits and all the costs of an offering and the perceived alternatives.
Total customer value is the perceived monetary value of the bundles of economic functional and
psychological benefits of customers expect from a given market offering. Total customer costs is
the bundle of costs customers expect to incur in evaluating, obtaining using and disposing of the
given market offering including monetary time, energy, and psychic costs.
Customer perceived value is thus based on the difference between what the customer gets and
what he or she gives for different possible choices. The customers get benefits and assume costs.
The marketer can increase the value of the customer offering by same combination of raising
functional or reducing one or more of the various types of costs. The customer who is choosing
between two value offerings v1 and v2 will examine the ratio v1:v2 and four v1 if the ratio is
larger than one favor v2 if the ratio is smaller than one and will be indifferent if the ratio equals
one. (Kottler 2005,).
2.2.2 The need of customers
Management support: the availability of management to answer questions and assist front. Line
employees in customer interactions when necessary. Also the level of management involvement
and enthusiasm in coaching and mentoring professional development.
Motivators and rewards: monetary rewards materials items, or feedback the prompts employee
to continue to deliver service and perform at high level of effectiveness and efficiency.
Training: instruction or information provided through a variety of techniques that teach
knowledge or skills, or attempt to influence employee attitude toward excellent service delivery
(Robert w. Lucas, 2005).

11
2.2.3 What customer wants?
Here are seven common things that customers want and expect if they are to keep doing business
with you and your organization.
Concept. Customers expect effective, efficient service and value for their money. Customers
also expect certain common things that serviced providers can furnish.

1. Personal recognition. This can be demonstrated in a number of ways (sending thank you
cards or notes, or birth day cards, returning calls in a timely fashion, taking the time to look
up information that might be helpful even if the customer did not ask for it.
2. Courtesy: Basic courtesy involves pleasant rise such as “please” and “thank you” as
there is no place or excuse for rude behavior in a customer service environment.
3. Timely service. Most people don’t mind waiting briefly for service if there is a legitimate
reason car when you are waiting on the phones, but they do not like to spend what they
believe is undue amounts of time waiting to be served.
4. Professionalism. Customers expect and should receive knowledgeable answers to their
questions service that satisfies their needs and lessens effort on their part and service
personnel who take pride in their work.
5. Enthusiastic service. Customers come to your organization for one purpose to satisfy a need.
6. Empathy. Customers also want to be understood (Robert W. Lucas 2005).
7. Patience customer should not have to deal with your frustrations or pressures (Robert w.
Lucas, 2005)
2.2.4 Customer satisfaction
A measure of the degree to which an object meets the customer’s expectations. The challenge to
meet by suppliers is that. If you raise customer’s expectation too high and fail to meet them, they
will be dissatisfied and likely to switch to an alternative supplier.
Conversely if customer’s expectations are low and you excited them are likely to repeat purchase
and commend your products to others. The paradox to be soused is the level at which to pitch the
initial appeal in order to encourage trail (Michael J. Baker 1978).
The company can increase customer satisfaction by lowering price and increase service but this
may result in lower profits. The company must aim high if they want to hold on to their
customers. Customers delight created and emotional relationship with a product or service, not
just a rational preference. The in turn creates high customer loyalty (Michael J. Baker 1978).

12
2.2.5 Total customer satisfaction
Whether the buyer is satisfied after purchase depends on the offer’s performance in relation to
the buyers expectations. In general satisfaction is person’s feelings of pleasure or disappointment
resulting from comparing a product perceived performance (or outcome) in relation to his or her
expectation. If the performance falls short of expectations, the customer is dissatisfied. If the
performance matches the expectations, the customer is satisfied. If the performance exceeds
expectations, the customer is highly satisfied or delighted.
Although the customer – centered firm seeks to create high customer satisfaction that is not its
ultimate goal if the company increases customer satisfaction by lowering its price of increasing
its services, the result may be lower profits (Kotler, 2005).
2.2.6 Total quality management
The quest to maximize customer satisfaction led some firm to adopt total quality management
principles. Total quality management (TQM) is an organization - wide approach to continuously
improving the quality of all the organization’s processes, products and services.
According GE’s former chalrman. John F, Welch, quality is our best assurance of customer
allegiance, our strongest defense against foreign competition and the only growth to sustained
growing and earnings. The drive to produce gods that are superior in world market led same
countries and groups of countries to recognize or award prices to companies that exemplify the
best quality practices (e.g. the Deming price in Japan, states, and European quality award).
Product and service quality customer satisfactions and company profit ability are intimately
connected. Higher levels of quality result in higher levels of customer satisfaction which support
high prices and (often) lower costs studies have shown a high correlation between relative
product quality and company profitability.
In practicing TQM, however, some firms ran into implementation problems as they became
overly focused perhaps even obsessed with processes and how they were doing business. They
lost sight of the needs and wants of customer and why they were doing business. In some cases,
companies were able to achieve bench marks against top quality standards, but only by incurring
prohibitive increases in costs for example scientific equipment maker varies embraced TQM
principles but found itself rushing to meet production schedules and deadlines that managers
now feel may not have been that important to their customers to being with.

13
This bottom – line orientation forces companies to make sure that the quality of the product
offerings in the liability consumers actually want. The company might be able to increase
itsprofit ability by means other than increased satisfaction (for example, by improving
manufacturing process or investing more in R & D).

Also the company has many stakeholders including employees, dealers, suppliers and stock
holders. Spending more to increase customer satisfaction might divert funds from increasing the
satisfaction of other “partners” Ultimately, the company must operate on the philosophy that it is
trying to deliver a high level of customer satisfaction subject to delivering acceptable levels of
satisfaction to the other stake holders, give its total resources (Kotler 2005).

2.2.7 Measuring satisfaction

Many companies are systematically measuring customer satisfaction and the factors shaping it
for example IBM tracks how satisfied customers are with each IBM sales person they encounter
and makes this a factor in each sales persons compensation a company would be wise to measure
customer satisfaction regularly because one key to customer retention is customer satisfaction. A
highly satisfied customer generally stays loyal longer buys more as the company introduces new
products and upgrades existing products, talks favorably about the company and its sensitive to
price offers product or service ideas to the company and costs less to serve than new customers
because transactions are routine.
The link between customer satisfaction and customer loyalty, however, is not proportional.
Suppose customer satisfaction is rated on a scale from one to five. At a very low level (customer
satisfaction (level one) customers are likely to abandon the company and even bad mouth it. At
levels two or four. Customers are fairly satisfied but still find it easy to switch when a better
offer comes along. At level five the customer is very likely to repurchase and even spread good
word of mouth about the company high satisfaction or delight creates an emotional band with the
brand or company not just a rational preference (Kotler 2005).
2.3 What is customer service?
Customer service is not merely customer relations or how nice frontline workers are to
customers. Rather, satisfying or even delighting customers is the goal of excellent customer
service. Because customers for different types of services have different needs, customer service
strategies will differ and must be tailored to the target customer.

14
What are the guiding principles of companies that deliver effective customer service?
In the customer service literature, five guiding principles are adopted by public as well as private
agencies delivering excellent customer service:
1. Embrace change and persistently strive to improve (be a learning organization).
2. Continually ask the target customers what they want and then give it to them.
3. Empower, support, and reward frontline personnel.

How does an organization develop and implement an effective customer service

strategy?

1. Identify the Target Customer.

 Begin by identifying the target customers and by considering the point of purchase, point of
service delivery or receipt, and point of consumption.
 Cluster or segment target customers based on their common behaviors, knowing that
targeting the wrong customers can have adverse effects on the organization.
Determine the priorities of various clusters of customers, knowing that the capabilities of the
organization are crucial in addressing these priorities.
2. When possible, focus on customers with high current or future value.
3. Determine What Customers Want.
 Determine what target customers want (not just what they need right now) by asking them in
person or as part of a mail or telephone surveyor by using other mechanisms (e.g., electronic
tracking and researching marketing trends) to determine what they want?
 Determine how well the organization can meet the customers’ "wants" in comparison with
competitors. The success of other companies at meeting and exceeding customer
expectations changes a customer’s frame of reference and increases a customer’s
expectations.
 Determine which "wants," if performance delivery were to be improved, would most impact
the organization’s bottom line (profit, cost, loyalty, trust, or compliance).
4. Establish an Organizational Culture Supportive of Customer Service.
 Utilizing the information gathered, establish the company’s customer-focused vision. The
vision statement should be simple and may also identify what the company does not want

15
 to be. Some examples of simple vision statements include "Absolutely, Positively
Overnight" by Federal Express and L.L. Bean’s promise "Guaranteed. Period."
 Live up to what is promised by concurrently developing and applying externally and
internally oriented strategic service concepts that reflect the vision.).

5. Implement an Externally Oriented Strategic Service Concept.

The externally oriented strategic service concept establishes how the organization’s service is
designed, marketed, and delivered to target customers.

 Take into account the costs of providing services and ways to minimize those costs while
implementing quality control. The service concept must be developed with the frontline
worker at its center.
 When planning, realize that control of information can take the place of assets. The added
knowledge of the building layout allows fewer fire fighters to accomplish the same task that
requires more firefighters when they do not have this advance knowledge And convenient
way to allow customers to complain by installing video.
 One final element of an externally oriented service strategy is to regularly measure customer
satisfaction or delight in the products and services. (Harvard Business Review, 1994).
6. Implement an Internally Oriented Strategic Service Concept.
The internally oriented strategic service concept establishes how the organization’s internal
processes will support the customer-focused vision. The premise behind the internally oriented
strategic service concept is "…capable workers who are well trained and fairly compensated
provide better service, need less supervision, and are much more likely to stay on the job. As a
result, their customers are likely to be more satisfies (Harvard Business Review, 1994).
2.3. Empirical literature review
Nowadays, delivering quality service has become a very important factor for successful
companies. Companies have the difficult task of fulfilling all the needs and expectations from
their customers. According to (Ishikawa, 1985) quality must be built into each design and
process, because quality cannot be created afterwards through inspections. Poor quality creates
losses of sales in a competitive market and increases the costs of production through customer
complaints and remanufacturing. There are a number of ways in which distinctive competitive

16
positions can be developed and maintained. A key way to building a strong competitive position
is through product/ service differentiation which creates a clear image of the bank and its
products/services in the eyes and minds of customers. Strong competitive positions can be
maintained by building barriers to competitive action by various means (Mosad, 1996).

CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1. Description of study area

This study will be conducted at macro finance institution Sodo town which is located in Wolaita
Zone in Southern Regional State of Ethiopia. The researcher selected this branch because of he
works in this branch. So he hopes to collect the relevant information

3.2. Study design

The study design will be to descriptive, specifically cross-sectional design. This study would also
to describe service of macro finance institution sodo town and its customers in terms of the
quality dimensions only during the study period.
3.2. Population
The total number of customers locally in macro finance institution Sodo Branch would be this
will be depositors, money transfers and loan users.
3.3 .sample size
To determine the total sample size, the researcher will be to use select the sample size. By using
the above method the researchers selected from depositor, from money transfers and from loan
users. Then the total sample size will be Moreover, the currently there are permanent employees
in the bank; the researcher will be to use all number of the employees because their number size
will be not difficult to manage properly during the study period.
3.4. Sampling technique
Researcher will be to use random sampling to select the sample because every single observation
of the sample has non-zero chance of being actually included the sample. So that bias will be to
avoid at the outset.

17
3.5. Method of data collection
For primary data collection, self-administer questionnaire issue for customers and the method
will be to determine to be best for:
Obtaining information form first large number of respondent with in short period of time

Minimizing cost of the study

Enabling respondents to fill with privacy

Most of the questions are designed as close ended because of the difference in economic level,
perception and the like among respondents. However, the respondents were given flexibility to
answer some key open ended question, the researchers include open ended question in the
questionnaires. Besides, structured interview was used to collect data from all selected
permanent employees concerning service delivery. Also observation was conducted by the
researchers during data collection period in order to strengthen data about customers to
employees’ interaction. Finally, library research and internet were a worth mentioning source of
secondary data that help the researches while reviewing previous studies and basic concepts.
3.6. Data processing and analysis
3.6.1. Data processing
At this phase, the gathered data will be to passé through editing, sorting, classifying, and
tabulating. Through editing, the data had been checked and adjusted for admissions, legibility,
and errors so that the data become completed, consistent, and reliable.
Then the data will be to sort as it facilitates subsequent processing and analysis. Then by
classification large volumes of data were reduced into homogeneous groups to get meaningful
relationships among the variables that affect customer service delivery.
Next by tabulating, the researcher find easy to search facts behind the customer service delivery
and comparisons for searching problem would be facilitates.
3.6.2. Data analysis
Here the data will be to transform into understandable form and that will be easy for
interpretation. To do so,
The data got summarized categorized, rearranged
The data got tabulated for indicating the events percentages and frequency distribution.
Graphs and charts also were used to simplify and clarify the research data.

18
3.7 Data Source and Type
Primary and secondary are used for the analysis of the study. Primary data mainly obtain
through the administering of questionnaires while secondary data sources like some reliable
literature and empirical findings that can be applied in order to have a better understanding the
service Delivery construct.

WORK PLAN AND TIME PLAN

4.1 Budget Break Down

S/ Description Payment
N

1 Field expense payment 3000

2 Internet service 500

3 Transport fee 100

4 Pen 100

5 Printing cost 150

6 Paper 300

7 Editing cost 250

8 Writing cost 500

9 Flash 250

10 Pencil 30

Total 5180

19
 4.2. TIME FRAME
No. Description DEC Jan Feb march april may june

1 Title selection X X

2 Proposal writing X

3 Proposal submission X X

4 Proposal defense X

5 Developing questionnaire X

6 Data collection X

7 Data analysis X

8 Report writing X X

9 Submission X

20
 REFERENCES
1. David L. Kurtz and Kenneth E.C low (1998) service marketing 3 rd ed. John wiley and Sons
Ltd network.
2. Harvard Business Review (1994), Command preference: the art of delivering quality service.
3. Heskett, J. ,Sasser, E. and Hart, C. W. (1990) Service Break throughs. New York Free press.
4. John E.G Bateson (1995), managing service marketing text and reading (3 rded). The Dryden
press Orlando
5. Kottler, (2005) marketing management (12t ed.), prentice-Hall of India private limited.
6. Michael J. Baker (1987), Dictionary of Marketing and advertising Michael J.Baker.Ltd New
York.
7. Palmer, Adrian, Cathepeter Cale (1995), service marketing, and practice enger cliffs
US prentice hill.
8. Robert W. Lucas (2005), customer service, third Edition.
9. Zelalem,Issues and challenges of Rural Watwr Scheme(2005),Sample size
determination

21