Effect of Service Quality on Customer Satisfaction: The Case of Ethiopian Electric Utility in South Western Region.

Abstract

This study aimed to evaluate the impact of service quality on customer satisfaction in selected customer service centers within the southwestern region's electric utility sector. A combination of descriptive and explanatory research designs utilizing both qualitative and quantitative methodologies was employed. The study's population consisted of 37,258 customers across four customer service centers, with a sample size of 396 respondents, of which 389 completed and returned the questionnaires. A multistage sampling technique was utilized for sample selection, and data collection was performed through interviews and questionnaires. The collected data was analyzed using SPSS 25, employing descriptive and inferential statistical analyses, including frequency, percentage, mean calculations, Pearson correlations, and multiple linear regressions to ascertain the causal relationship between service quality and customer satisfaction. The study's findings revealed that responsiveness was the service quality dimension exerting the most significant influence on customer satisfaction. Additionally, all service quality coefficients associated with customer satisfaction demonstrated positive and statistically significant correlations. Therefore, enhancing responsiveness and continuous improvement initiatives are critical factors to enhance overall customer satisfaction levels. Furthermore, the study determined that all five service quality dimensions (Tangibility, Reliability, Responsiveness, Assurance, and Empathy) positively and significantly influenced customer satisfaction. Consequently, it is recommended that managers and employees within the Ethiopian Electric Utility should actively collaborate to enhance service quality levels, consequently elevating customer satisfaction levels.