Abstract:
The major objective of this study was to examine the effect of service quality on customer
satisfaction in Ethiopian Insurance Corporation in Gondar Branch. The researcher used
descriptive and explanatory research design to understand the effect of service quality between
the customer satisfaction and explanatory variables. The researcher used a quantitative and
qualitative (mixed research approach which allows gathering numerical data, measuring
variables, predicting and using statistical procedures to analyze and develop inferences. The
population of this study comprises customers of Ethiopian Insurance Corporation in Gondar
Branch. The study used primary and secondary data source. The study used convenience
sampling technique to the easiest for the researcher to access the sample and available at a
given time or willingness to participate in the research. The finding of the study indicated that
the majority respondents have taken insurance policy to protect from unexpected risks of their
assets and their business. The finding also shows that the majority of customers used insurance
policy term for 1-5 years. The customers bought the premium amount above 60,000.00 birr in
Ethiopian Insurance Corporation in Gondar branch. The findings indicated that empathy,
assurance, tangibles, and Information Technology have significant influence on customer
satisfaction at 95% confidence level. Conversely, responsiveness, and reliability have no
significant influence on customer satisfaction in Ethiopia Insurance Corporation Gondar
branch. The collected data was analyzed with the help of SPSS version 20. Correlation and
multiple regressions were used to investigate the relationship between dependent and
independent variables. The correlation results indicate that there is all positive correlation
between the dimensions of service quality and customer satisfaction. The results of the
regression test showed that offering quality service have positive effect on overall customer
satisfaction. And also, the highest correlation is between empathy and customer satisfaction
followed by assurance. The finding of the analysis showed that, the performance of EIC in
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providing quality service is not in a position to meet the expectation of the customer. Low
service quality leads low customer satisfaction. Based on this, in order to improve performance
of the corporation, the researcher suggested that, it should prepare complaint handling
mechanisms, relevant training for its front-line employees to identify and give the appropriate
response to customers specific needs as well as to put customer best interest at heart. And also
use comprehensive tele-birr service.
