Abstract
The purpose of this study is to investigate impacts of service quality on customer satisfaction in selected insurance companies on Bale Robe Town. Since, service quality model was especially developed to examine the quality service of insurance; researchers selected this model to extensively test retail insurance industry. The current study measured service quality and its relation with customer satisfaction in the selected public and private branch. Exploratory method used as the research method of the study. The sample consists of 268 respondents’ selected based on random sampling procedure. The dimensions of the study were tangibility, reliability, responsiveness, assurance and empathy.Primary data were collected by using 5-point Likert scale questionnaire and interview with customer service managers and customer service supervisors of the selected insurance companies. A total of 226 questionnaires were properly filled and returned. The empirical result shows that service quality dimensions; assurance, empathy and reliability have strong influence on user’s satisfaction level respectively and weak impact with tangibility and responsiveness to user’s satisfaction level in selected insurance companies in Bale Robe Town. Correlation and multiple regressions were used to investigate the relationship between dependent and independent variables. The correlation results indicate that there is a positive correlation between the dimensions of service quality and customer satisfaction. The results of the regression test showed that offering service quality have impact on overall customer satisfaction. The research proves that assurance, reliability and tangibility have strong influence on user’s satisfaction level respectively and weak impact with empathy and responsiveness to user’s satisfaction level in selected insurance companies in Bale Robe Town. Thus study concluded that service quality, if managed effectively, can contribute significantly towards customer satisfaction. Keywords: Service quality, Customer Satisfaction, Insurance DOI: 10.7176/EJBM/12-31-01 Publication date: November 30 th 2020
Highlights
Service quality means the difference between the customer’s expectation of service and their perception of perceived service
The results indicate that most important service quality practice on customer satisfaction was Assurance, which goes to prove that assurance was perceived as a dominant service quality
The main objective of this research was to identify the impact of the five dimensions of service quality, including tangibility, reliability, responsiveness, assurance and empathy, on customer satisfaction
Summary
Service quality means the difference between the customer’s expectation of service and their perception of perceived service. Individual can receive reimbursement for losses due to car accidents, theft of property, and fire; medical expenses and loss of income due to disability or death (William, etal, 1998). Most companies are beginning to use quality management programs in order to improve their performances, and that in turns leads to a customer satisfaction, Kotler et al, (2002). Insurance is one of the risk management techniques that provide protection against a financial loss arising from the occurrence of these unexpected events (Teklegiorgis Assefa, 2004). Service quality is generally viewed as the output of the service delivery system, especially in the case of pure service system. Service quality leads to customer satisfaction. (Jain et al, 2009)
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