THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION: THE CASE OF

ETHIO TELECOM CALL CENTER

A seiner Essay submitted to the department of Business Administration for Partial Fulfillment of
the Requirements for the award of Master’s Degree in Business Administration

BY: ESRAEL KENA

Advisor: Tesfa Mezgebu (Assistant Professor)

RIFT VALLEY UNIVERSITY

SEBETA COMPUS

Aug, 2023

Sebeta, Ethiopia

i
DECLARATION

ii
I’m Esrael Kena, the undersigned, certifies that this thesis is my original work, prepared under the
guidance of Tesfa Mesgebu ( Ass. P). All material sources used in the work are properly labeled. I also
confirm that the thesis have not been partially or fully submitted to any other higher education
institution.

Participant name: Esrael Kena

Signature_______________
Date___________________
 APPROVAL
The undersigned certifies that he has read the paper entitled "The Impact of Service Quality on
Customer Satisfaction" submitted by Esrael Kena and recommends that it be accepted by Rift Valley
University.
In the case of Ethio Telecom Call Center, the requirement to award a Master of Business
Administration degree was partially fulfilled.
____________________ _____________________ _________________
Dean office Signature Date
____________________ _____________________ _________________
Advisor Signature Date
____________________ _____________________ _________________
External Examiner Signature Date
____________________ _____________________ _________________
 ACKNOWLEDGMENTS
I would like to take this opportunity to express my deep gratitude and deep respect to my advisor Tesfa
Mesgebu (Assistant P) for his guidance, valuable feedback and constant work motivation throughout
the thesis.

I would also like to sincerely thank all the family, friends and colleagues who answered the survey,
without which this research would be incomplete. Also I would like to thank the respondents, who
honestly responded to my questions, and others who directly or indirectly contributed to this research
work.
TABLE OF CONTENTS

ACKNOWLEDGMENT

LIST OF TABLES

ABBREVIATIONS AND ACRONYMS

ABSTRACT

DECLARATION....................................................................................................................................... ii

APPROVAL......................................................................................................................................... ii
ACKNOWLEDGMENTS................................................................................................................... iii
ABSTRACT......................................................................................................................................... vii
ACCRONYMS AND ABBREVIATIONS........................................................................................viii
CHAPTER ONE...................................................................................................................................1
INTRODUCTION................................................................................................................................1
1.1 Background of the study............................................................................................................1
1.2 Statement of the problem................................................................................................................2
1.3 Research Questions........................................................................................................................ 4
1.4. Objective of the study....................................................................................................................4
1.4.1 General Objectives...................................................................................................................... 4
1.4.2 Specific objectives.......................................................................................................................5
1.5. Significance of the study............................................................................................................... 5
1.6. Scope of the study......................................................................................................................... 5
1.7. Limitation of the study.................................................................................................................. 5
1.8 Operational Definition....................................................................................................................6
`1.9. Organization of the paper.............................................................................................................6
CHAPTER TWO..................................................................................................................................7
2. REVIEW OF RELATED LITERATURE........................................................................................7
2.1. Theoretical Review of Literature...................................................................................................7
2.1.1. Service Concept..........................................................................................................................7
2.1.2. Customer Expectation VS Perception of Service........................................................................7
2.1.3. Service Encounters..................................................................................................................... 8
2.1.4. Call Center Service.....................................................................................................................8
2.1.5. Importance of call center services...............................................................................................9
2.1.6. Service Quality........................................................................................................................... 9
2.1.6.1. Quality of Service Model.......................................................................................................10
2.1.6.2. Choice of service quality Model for the study.......................................................................13
2.1.7. Customer Satisfaction...............................................................................................................13
2.2. Empirical Review........................................................................................................................ 14
2.2.1. Relationship between Service quality and customer satisfaction..............................................14
2.2.2. Studies Related to Call center Service......................................................................................15
2.2.3. Service quality and customer satisfaction studies related to ethio telecom...............................17
2.3. Conceptual Framework................................................................................................................17
CHAPTER THREE............................................................................................................................ 19
RESEARCH DESIGN AND METHODOLOGY..............................................................................19
3.1 Research approach........................................................................................................................19
3.2 Research design............................................................................................................................ 19
3.3. Population of the study................................................................................................................ 19
3.4. Sample size Determination..........................................................................................................19
3.5. Sources of Data............................................................................................................................20
3.5.1 Primary source of data...............................................................................................................20
3.5.2 Secondary source of data...........................................................................................................20
3.6 Data Collection procedures...........................................................................................................21
3.7 Data collection instrument............................................................................................................21
3.8 Data analysis methods.................................................................................................................. 21
3.9. Reliability and Validity............................................................................................................... 21
3.9.1. Reliability................................................................................................................................. 21
3.9.2. Validity..................................................................................................................................... 21
3.10. Ethical Considerations...............................................................................................................22
CHAPTER FOUR.............................................................................................................................. 22
RESULT AND DISCUSSION...........................................................................................................22
 4.1 Description of Sample.................................................................................................................. 23
4.2 Background characteristics of the respondents.............................................................................23
4.3. Reliability Test............................................................................................................................ 25
4.4. Service Quality Dimensions, Overall Service Quality and Customer Satisfaction......................26
4.5 Relationship between Service Quality Dimensions, overall Service Quality and Customer
Satisfaction......................................................................................................................................... 27
4.6. Impact of Service quality Dimensions on Customer satisfaction.................................................29
4.7 Impact of overall Service quality on Customer satisfaction..........................................................30
4.8 Discussion.................................................................................................................................... 31
CHAPTER FIVE................................................................................................................................ 32
5. SUMMARY, CONCLUSION AND RECOMMENDATIONS.....................................................32
5.1. Summary of Findings.................................................................................................................. 32
5.2. Conclusion................................................................................................................................... 33
5.3. Recommendations....................................................................................................................... 33
5.4.2. Direction for Future Research...................................................................................................34
REFERENCES....................................................................................................................................... 35
APPENDIX 1........................................................................................................................................ 39
Questionnaire..................................................................................................................................... 39
Appendix 2: Statistical output............................................................................................................ 45

LIST OF TABLES

ABSTRACT
The main purpose of this study was to assess the overall level of service quality on customer
satisfaction in the case of ethio telecom call center. To achieve this, some specific objectives were set a
conceptual model of service quality dimensions was developed and hypothesized. The major tools used
for data collection is, questioners for ethio telecom major customers in Addis Ababa who have access
to use both 980 and 994 access numbers. This study was conducted as a quantitative study, and also the
Research was focused primarily on building quantitative data. This study uses a combination of
descriptive and causal research designs. The target population of the study was an infinite numbers;
because it continually changes each time; therefore, the researcher used determining the sample size
for an unknown population. The sample size determined for the study is 246 respondents using the
formula of an infinite population. Only 230 responses received out of the targeted sample size of 246
respondents. The study used a quantitative and qualitative research approach. For this study purpose,
primary data was collected through standardized questionnaires and secondary data from journals,
company publications, and other published documents. The findings of the study show that service
quality of ethio telecom call center is below average and customers are not satisfied with the service.
The study concluded that over all service quality of call center is not good and customers are not
satisfied with the services of ethio telecom call center. The researcher recommended that ethio telecom
should work hard on all these service quality dimensions to improve its service quality and customer
satisfaction of call center.

Key words: service quality, customer satisfaction, service quality dimensions

ACCRONYMS AND ABBREVIATIONS

CRM: Customer Relationship Management

ET: Ethio Telecom

ETA: Ethiopian Telecommunication Agency

ETC: Ethiopian telecommunications Corporation

IPCC: Internet Protocol Call Center

KPI: Key Performance Indicators

PSTN: Public Switched Telephone Network

SERVPERF: Service Performance Scale/model

SERVQUAL: Service Quality Scale/Model

VPN: Virtual Private network

IVR: interactive voice response

 CHAPTER ONE

INTRODUCTION

1.1 Background of the study

In the service industry, a service is an act or performance that one party can offer to another that is
intangible in nature and does not result in you owning anything. Its production may or may not be
associated with a physical product (Kotler & Keller, 2012).

Quality is a key source of competitive advantage in the service sector. Service quality is used to
differentiate and enhance service offerings and gain a strategic competitive advantage. Parasuraman
defines service quality as "the difference between customer expectations and service perceptions"
(Parasuraman, 1998). They argued that service quality, as the difference between perceived and expected
service, is a valid method that management may notice gaps in what it delivers as service.

Customer satisfaction compares customer expectations with perceptions of actual service experiences
(Huffman & Bateson, 2001). Service quality satisfaction is often evaluated in relation to functional and
technical quality (Gronroos, 2001). Customer satisfaction is the sense of joy or disappointment obtained
by comparing the performance and outcomes of a product or service to expectations (Kotler, 2012).

The call center is defined as a location where calls are made on a large scale for the purpose of sales,
marketing, customer service, telemarketing, technical support or other specialized business activities
(Bodin and Dawson, 2006). Almost all call centers are active 24 hours a day, 365 days a year.

Despite the importance of the call center industry, there is a lack of comprehensive and in-depth research
on it. Many aspects of the field, such as call center agent sales proficiency (Downing 2011), the
relationship between job functions such as content, diversity, autonomy, and quality of work life
(Zeenobyah & Vo 2011), and models of inbound call density prediction (Taylor 2012), have been studied,
but often there is insufficient research to provide a comprehensive, accurate, and reliable understanding of
contact center phenomena. More specifically, there is often much research on the same or a similar
phenomenon in the face-to-face service context, but a lack on the contact center side.

Furthermore, according to Lywood, Stone and Ekinci (2009), contact center profitability is influenced by
customer experience. They go on to argue that businesses should strive to treat their customers with
greater empathy while recognizing the need for good call cost control to manage profitability. This means
that while there seems to be a trend to emphasize productivity, companies should also manage customer
service and customer satisfaction.

The modern call center sector has developed around the globe in recent years and is one of the fastest
growing industries in the world. For example, the call center industry in India is a huge industry that
employs more than 330,000 people and is worth about 3.2 billion per year and is growing at a very rapid
growth rate of about 25% per year, according to the Call Center Association, 1999. Today more than 500
companies from UK, USA and other developed countries are outsourcing their call center activities to
India.

The ethio telecom call center services are provided through online telephone supporting by IVR
(interactive voice response). 994 call center is accessible to all service users of Ethio Telecom around the
country and its serving customer in five different languages specifically English, Amharic, Oromiffa,
Tigrigna and Somali, whereas 980 call center is dedicated only for selected enterprise, VIP and Key
account customers. 994 call center services support customer enquiry by providing full information about
ET products and services, subscription requirements, billing and related enquires, activation of value
added services, fault registration, status update and follow up. In ethio telecom, call centers are trying to
satisfying customers by reducing the overall cost of transaction and improving the quality of interaction
with customers. But it's becoming difficult for call centers to make a balance between quality and
efficiency while trying to achieve companies‟ objectives. The major objective of this study is to examine
the impact of service quality on customer satisfaction in ethio telecom call centers and to find out
important dimensions of services having greater influence on customer satisfaction.

1.2 Statement of the problem

According to Kotler and Armstrong (2003), satisfying customer needs is the number one priority that must
be considered if the company is to survive and thrive.

Customer satisfaction is a key factor in the success of any business system. According to Potluri and
Magnale (2010), customer satisfaction is the key to a company's survival and a source of competitive
advantage. However, the ethio Telecom case is the opposite of what the researchers found. This means
that the company is consistently profitable and has an excellent financial performance, but customers are
dissatisfied with most services.
Wolfreed M. (2000) investigated that the impact of service quality on overall satisfaction is somewhat
affected by the occurrence of service outages. In particular, fewer service outages increase the positive
effect of service quality on satisfaction. It should come as no surprise that as service outages become less
frequent, customers was able to recognize and appreciate the process elements of service quality.
This is the rationale behind this investigation. Ethio Telecom fights for service quality without considering
customer value and service failures regarding the company's service quality and customer satisfaction.
Call centers are used to provide various services including customer service, technical support, sales and
telemarketing, customer relationship management, financial and accounting services, etc. The company
has taken many measures to improve service quality and customer satisfaction. Recruiting and staffing of
qualified and professional manpower, equipping the call center with modern systems such as CRM and
IPCC, increasing the availability of the call center with a high success rate and setting standardized KPIs
are among the measures taken to improve the overall performance of the call center and improve customer
satisfaction.

We also have a standardized set of call quality monitoring parameters and procedures to provide consistent
service from call attempt to call attempt. These call quality monitoring parameters and procedures are used
to measure the quality of service provided by call center agents and customer satisfaction. However, it is
difficult for call centers to balance quality and efficiency while trying to meet their business objectives.
Customer satisfaction is not only achieved through technology (physical performance of the offer), but
there are so many customer service demands, especially in the telecom industry like Ethio Telecom.
According to Shemwell et al. (2005) the key to maintaining a competitive advantage in today's competitive
world is to provide quality service those results in customer satisfaction. Overall customer satisfaction with
an organization's services is a function of all customer encounters/experiences with that organization.

Similar to service quality, customer satisfaction can occur at multiple levels in an organization, e.g.
Satisfaction with the contact person, satisfaction with the core service and satisfaction with the organization
as a whole. The majority of services could be handled by call center agents where supporting systems and
human elements work together. Downing (2011) noted that the knowledge, skills and abilities of sales
people have been widely studied by academics, but much more in face-to-face situations than in mediated
settings such as call centers. Additionally, Cummane and Conn (2000) note that despite concerns about
customer satisfaction in the contact center industry, empirical studies was conducted on employee
dissatisfaction rather than customer satisfaction.

Call center service is one of the most important weapons to build good customer relationship management
and retention (Bennington et al., 2000). But there are not enough studies on service quality and customer
satisfaction in a telephone service encounter (call center) as opposed to a face-to-face service encounter,
particularly in Ethiopia.

Majority of call center research focuses on efficiency and employee satisfaction, not customer satisfaction.
The concept of the call center service industry mentioned in the company background, Ethio Telecom's call
center is the call center handling an average of over 270,000 customers a day who request a variety of
 services. Furthermore, although the SERVQUAL model applies primarily to face-to-face service
interactions and not telephony interactions such as call centers, other researchers such as (Anton, 2004)
adapted his SERVQUAL model with minor modifications.

However, currently there is a lack of research on service quality on customer satisfaction in ethio telecom
call center after it enter to new era of competition,

A current study was conducted to assess the impact of service quality on customer satisfaction in the case of
Ethio Telecom's call centers, allowing the company to take corrective action based on the results. For these
reasons and those mentioned above, this study found it important to conduct this study and examine the
fundamental roles and effects they have.

Thus, this study intends to fill the gap by investigating the impact of service quality on customer satisfaction
in the case of ethio telecom call center. In which ethio telecom enter a new era of competition.

1.3 Research Questions

Based on the above problem statement, the main research question is as follows:

i. What is the impact of overall service quality on customer satisfaction?

ii. How is the quality of service and customer satisfaction in the ethio telecom call
center perceived by customers?
iii. How are the services offered by the ethio telecom call center related to customer
satisfaction?
iv. What is the relationship between the dimensions of service quality and overall
service quality?
v. What is the relationships between the overall service quality and customer
satisfaction in call center services?

1.4. Objective of the study

1.4.1 General Objectives

To assess the impact of service quality on customer satisfaction in the case of ethio telecom call
center.
1.4.2 Specific objectives
i. To assess the impact of overall service quality on customer satisfaction.

ii. To analyze the perception of service quality and Customer satisfaction with Ethio Telecom call
center services.

iii. To analyze service offered by ethio telecom call center related to customer satisfaction.

IV. To analyze the relationship between the dimensions of service quality and overall service quality.

V, To assess the relationships between the overall service quality and customer satisfaction in call
center services?

1.5. Significance of the study

This study was significant in the following respects: Service Quality and Customer Satisfaction focus
on the delivery of services where customer and service provider interact face-to-face. The impact of
service dimensions on service quality and customer satisfaction is different in face-to-face interaction
in service delivery and in service delivery where there is no face-to-face interaction, such as call center
service. This study may contribute the knowledge of service quality and customer satisfaction, the
relationship between service quality dimensions and customer satisfaction in the call center industry.

The study results are also be relevant for the management of Ethio Telecom and other companies
providing call center services to identify the existing strengths and weaknesses in terms of service
quality, delivery and level of customer satisfaction that customers experience during their visit to the
company's call centers. In addition, this study may help the company focus on the very influential
service dimensions of service quality and customer satisfaction for call center service.

1.6. Scope of the study

This study was limited to evaluating the quality of the services provided and the level of customer
satisfaction in the ethio telecom call center from the point of view of ethio telecom customers in
Addis Ababa who have access to use both 980 and 994 access numbers. The reason for the selection
of large customers is that these customers are expected to use the majority of the services provided by
ethio telecom. The result of the study cannot be generalized to private customers.

1.7. Limitation of the study

As i conduct this study, research was confronted with the inadequacy of relevant studies on the
subject, particularly in the ethio telecom sector. The lack of organized related documents would
be the other limitation for this study. As a result the researcher took this as a limitation of the
study. In addition the researcher expected to face lack of sufficient literature worked on this
topic.

1.8 Operational Definition

 Service quality: The magnitude and direction of the discrepancy between consumer
perceptions and expectations, or the extent to which services meet or exceed customer
expectations.
 Customer satisfaction: Satisfaction is also a person's feelings of joy or disappointment that
arise from comparing the perceived performance or results of a product to their expectations.
 Customer: Recipient of services or ideas obtained from vendors, vendors or suppliers in
exchange for financial or other valuable consideration.
 Call center: A physical location where customer and other calls are handled by an
organization, usually with some degree of computer automation.
 SERVQUAL: A service quality (gap) model that measures service quality based on customer
expectations and perceptions.
 SERVPERF: A service quality model that measures service quality based on customer
perceptions.
 Service encounter: An instance of interaction between servers "officially located" in a
Service Area, where such interaction is aimed at satisfying the customer's presumed desire for
service and the obligations of the server to provide that service.

`1.9. Organization of the paper

The research report consists of five chapters. The first chapter is the introductory part of the study,
which includes: background of the study, statement of the problem, research questions and objective
of the study, significance of the study, scope of the study, limitations of the study, Operational
definitions and organization of the paper. The next chapter, chapter two, mainly focuses on existing
literature covering the theoretical framework related to the study, empirical studies related to the
company and the subject under study (call center), and finally the development of a conceptual
framework from the Theories and Empirical Studies. The third chapter deals with the methodology of
the study. It includes research design, research methods, and data collection tools and data analysis
techniques. The content of the fourth chapter is the result and discussions. The last chapter, chapter
five, contains conclusions, recommendations and; Limits and directions for further study.
 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1. Theoretical Review of Literature

2.1.1. Service Concept

It leads to ownership of everything (Kotler & Keller, 2009). Overall, service can also be defined as an
intangible offering from one party to another in exchange for pleasure.

Quality can also be defined as a set of characteristics and attributes of a product or service that relate
to its ability to meet explicit or implicit needs (Kotler 2002). It is also clear that quality is an
intangible act or performance offered by one party to the other, which refers to services that are not
worthy of offering and may create user satisfaction or dissatisfaction.

2.1.2. Customer Expectation VS Perception of Service

Service quality is determined by comparing customer expectations and perceptions. Before you start
the service delivery process, you need to know what your customers expect. Expectations are
typically formed prior to using a service, but can also arise when a customer is actively involved in
providing the service. They reflect tendencies and beliefs about what will or should happen (Mudie &
Pirrie, 2006). Customers may unconsciously expect to be treated in certain ways when completing
transactions (Timm, 2001). They have their own expectations for different transactions. Consulting
services customers, in particular, have clearly defined expectations and choose organizations that
deliver the expected services.

Perception is always considered in relation to expectations (Zeithaml, Bitner and Gremler, 2009).
Perceptions may develop during service, but are always embodied after use (Mudie & Pirrie, 2006).
Customer perception is entirely subjective and based on the customer's interactions with the product
or service.

The quality of service is considered satisfactory or good if their expectations are met. Otherwise it is
considered unsatisfactory, bad, poor or defective. When customer perceptions exceed expectations,
the company is considered superior and more likely to convert customers into regular customers
(Timm, 2001).
2.1.3. Service Encounters
Service encounters are the building blocks of customer perception. Customers often perceive service
based on the quality of their interactions with service representatives. Service organizations therefore
prioritize quality service operations and aim to exceed customer expectations in execution.
Employees should be an integral part of service delivery and be able to adequately keep promises to
customers each time they encounter service delivery. The role of frontline workers is defined as the
activity that connects an organization with the organization in which it operates (Bateson and
Hoffman, 2006). There are three alternate types of service encounters.

Long Range Encounters: This customer-employee (organization) interaction takes place without
direct contact. Even without human contact if the transaction is mediated through technology. By
controlling the physical and technical aspects of service, companies can increase customer perception
of service quality.

Telephone answering: This is the most common type encountered by customers and employees in
many organizations (utilities and service companies such as telecommunications services). Customer
judgment of service quality depends on tone of voice, staff knowledge, courtesy and
effectiveness/efficiency in dealing with customer issues.

Face-to-face encounters: Direct contact between customers and employees. Both verbal and
nonverbal behaviors are important determinants of service quality perceptions, and other specific cues
need to be managed.

2.1.4. Call Center Service

A call center is defined as a place of large volume calls for the purpose of sales, marketing, customer
service, telemarketing, technical support, or other professional business activities (Bodin and
Dawson, 2006). Almost all call centers are open 24/7. Apart from this business definition, call centers
are considered a strategy for customer relationship management (Mitchell, 2005). If a company
believes that a customer relationship shouldn't end with a sale and needs customer access after the
sale adds value to the transaction.

In call centers, human agents or automated answering machines handle telephone communications
with customers, including resolving problems and complaints, providing information, answering
questions, and receiving feedback (Moon et al., 2004 ).
Call centers are the best way to provide and manage customer satisfaction after services and products
have been delivered by meeting customer needs in an efficient, convenient and friendly manner
(Anton, 2004). On the other hand, if a customer has a problem, it helps restore satisfaction.

2.1.5. Importance of call center services

In today's competitive market, customer service call centers have moved from the back to the front
office as a strategy for customer satisfaction and retention (Anton, 2004). The importance of call
centers is also a top priority in the telecommunications industry. All players have call centers as a
positive way to differentiate their services. They use call centers to build, nurture and manage
customer relationships by establishing direct communication with them. This allows businesses to do
more with their customers and attract new ones.

In practice, however, call centers have fully realized their potential to help organizations achieve their
goals of high customer satisfaction. Customers are less satisfied with call center services than face-to-
face office services (Bennington et al., 2000). Therefore, considering the long-term goal of customer
retention, it is very important for organizations to provide excellent service to their customers through
their call centers. It is important for all to understand why customers use call center service. From
customers’ perspective, the main call center benefits for customers are convenience, flexibility and
customization (Bennington et al, 2000). It is customers who ultimately consume the services offered
by call centers hence their perceptions count most.

In telecommunication industry, almost 90% of customers consumed the call center services are
existing service subscribers, so call centers are a fundamental weapon for customer relationship
management and customer retention in the industry.

2.1.6. Service Quality

Quality is the keyword for an organization's survival in the global economy. Businesses are in the
midst of a transition from a production-centric philosophy to a customer-centric approach. A
company with high service quality poses a challenge for other companies, as service quality is seen as
an important tool for companies trying to differentiate themselves from their competitors (Landari,
2008).

Nitetsuki et al. (2000) defined service quality as 'meeting or exceeding customer expectations' or 'the
difference between customer perception and service expectations'. Service quality in the management
and marketing literature is the extent to which customer perceptions of service meet and/or exceed
customer expectations (e.g., as defined by Bowen & David (2005)). increase). Quality of service,
therefore, is how you serve your customers within an organization, which can be good or bad. They
argue that measuring service quality as the difference between perceived and expected service is a
valid method and may lead management to recognize gaps in service delivery.

2.1.6.1. Quality of Service Model

1. SERVQUAL model

One of the most useful measures of service quality is the dimensions of the SERVQUAL model.
When first creating this model, Parasuraman et al. (2002) identified 97 attributes condensed into 10
dimensions. They have been found to affect service quality and are considered important criteria for
accessing customer expectations and perceptions of the services provided (Kumar et al., 2009).

The SERVQUAL scale, also known as the gap model by Parasuraman et al. (2005) has proven to be
one of the best ways to measure service quality to customers.

This method of evaluating services has been shown to be consistent and reliable by some authors
(Brown et al., 2000). They felt that the service they perceived or experienced was less than expected.
It means that the quality of service is not satisfactory. If the perceived service is better than the
expected service, the obvious conclusion is that the quality of service is satisfactory (Jain et al.,
2004). From the way this theory is presented, the SERVQUAL concept seems to be the most suitable
for evaluating service quality from the customer's point of view. When it comes to perceived and
expected benefits, it is clear that this extends to those who use or use benefits. Who are the end
users/customers? Original study by Parasuraman et al. (2005) presented ten (10) dimensions of
service quality.

Assets, Reliability, Responsiveness, Competence, Courtesy, Reliability, Security, Access,

Communication, Customer Understanding.

After refinement, these 10 dimensions of his above were later reduced to his 5 dimensions as follows.

Tangible: Physical facilities, equipment, appearances of staff, and communication materials.

reliability: This has been consistently shown to be the most important determinant of service quality
perception. It is the ability to deliver promised services reliably and accurately. Promises can include
delivery, service provision, problem resolution, and pricing.

responsiveness: Willingness to help customers and provide prompt service. This dimension
emphasizes attention and speed in dealing with customer requests, questions, complaints and issues.
It's time to wait for help, an answer to a question, or attention to a problem. To truly differentiate
through responsiveness, you need a well-staffed customer service department and front-line
employees who can respond quickly to all contacts.

Assurance: knowledge and courtesy of employees and their ability to inspire trust and Confidence.
This dimension is likely to be particularly important for services that customers perceive as high risk
or uncertain about their ability to evaluate outcomes. Trust and confidence are embodied in the
contact employee and the company itself.

Empathy: caring individualized attention the firm provides to its customers. The aggregated sum of
difference between perceptions and expectations from the five dimensions forms the global perceive
quality construct.

2. Gap model

function of the difference between the expectation and performance along quality dimensions. The
various gap visualized in the model are:

Gap 1: Consumer expectation – Management perception gap: - The difference between

customer’s expectation and management perception of those expectations. I.e. not knowing what
consumers expect.

Gap 2: Management perception – Service quality specification gap: - The difference between
management perception of consumers’ expectations and service quality specifications i.e. improver
service quality standards.

Gap 3: Service quality specifications – Service delivery gap: - The difference between service
quality specifications and service actually delivered i.e. the service performance gap.

Gap 4: Service Delivery – External communication Gap: - The difference between service
delivery and communications to consumers about service delivery i.e. whether promises match
delivery.

Gap 5: Expected Service – Perceived Service Gap: - The difference between consumer’s
expectation and perceived service. This gap depends on size and direction of the four gaps associated
with the delivery of the service quality on the marketer’s side.

Functional and Technical Dimension Model

Other researchers have recognized the need for additional components of service expectations with
functional and technical aspects. (Grnroos 2000) The idea was that consumers would rate services
based on technical aspects. H. Offerings and Functionality i. 2000).

SERVPERF Scale

Although the elements listed in SERVQUAL model have been proven to be the main method for
evaluating service quality from the consumers perspective (Brown et al., 2000), drawbacks in using
SERVQUAL in measuring service quality has been the reason that the SERVPERF scale was
proposed by Cronin & Taylor (2000, cited in Jain et al. (2004,) after they called into question the
conceptual basis of the SERVQUAL, having found it, led to confusion with service satisfaction (Jain
et al., 2004,).

These researchers discarded the ´E´ for ´expectation` claiming instead that ´P´ for ´performance´
alone should be used. They meant that higher perceived performance entails higher quality service.
Unfortunately, during this past century, customers have changed their behaviors in ways that do not
suit organizational Behavior. Till date, it is unclear as to which of SERVQUAL and SERVPERF is
superior in measuring service quality (Jain et al., 2004,). Laroche et al., (2004) made an assessment of
the dimensionality of should and will service expectations. They used a survey measuring customers’
post encounter expectations and visà-vis a well-known airline with a sample of 363 and examined the
existence of hypothesized functional and technical dimensions of should and will expectations and
determined the casual relationships between two types of expectations and hypothesized dimensions.
They tested their dimensions in the context of the turbulent airline industry. This study measured
service quality with other service quality dimensions such as technical and functional dimensions
proposed by Grönross (2000).

Thus, it was proved that the SERVQUAL model does not have to be used in all organizations to
assess service quality. This could mean the following; Different industries may require different
quality of service measurements.

2.1.6.2. Choice of service quality Model for the study

After considering many service quality models, the SERVPERF model of service quality proposed by
Cronin & Taylor (1992) was chosen to understand the dimensions of service quality that may be
relevant to the call center industry. . This model was considered suitable for study due to the
following main reasons. First, SERVPERF has proven superior not only because it is more efficient
to reduce the number of items to be measured by 50% (Hartline and Ferell, 2003; Babakus and
Boller, 2000). 2001; Bolton and Drew, 2001, cited in Mesay, 2012). Second, according to Cronin and
Taylor (2000), their performance-based his SERVPERF scale is a better way to measure service
quality. They claim that the reliability of this scale ranges from 0.884 to 0.964 depending on the type
of industry, with both convergent and discriminative validity (Mesay, 2012). In addition, the
dimension's focus on functional quality makes it suitable for evaluating the quality of call center
services.

2.1.7. Customer Satisfaction

Customer satisfaction is conceptualized in a transaction-specific way. It is based on the experience of
customers encountering a particular service (Cronin & Taylor, 2000), and customer satisfaction is
also cumulative based on an overall rating of the service experience (Jones and Suh, 2000). . These
underscore the fact that customer satisfaction is based on the service experience with his provider and
the results of the service.

Giese and Cote (2000) clearly state that there is no universal definition of customer satisfaction, and
after doing research on different definitions of satisfaction, came up with the following definition.
identified. Relates to a specific focus (i.e. buying experience and/or related products) and occurs at a
specific point in time (i.e. post-purchase, post-consumption).
From this definition, it is clear that consumer/customer satisfaction is determined by their contact
experience with service providers, which is supported by Cicerone et al., (2009) and Sureshchander et
al., (2002). It has been. Satisfaction is determined by experience accumulated at all touchpoints with
supplier organizations. It is important to note that customer loyalty is influenced by customer
satisfaction (Heskett, 1997). Loyal customers will continue to use your service or purchase again and
look for alternatives with minor changes. There is empirical evidence of a positive association
between customer satisfaction and intention to spread word of mouth (DabholkarandThorpe, 2001;
Richins, 2000).

2.2. Empirical Review

2.2.1. Relationship between Service quality and customer satisfaction

Since customer satisfaction is assumed to be based on the customer's experience of a particular
service experience (Cronin & Taylor, 2000), this is consistent with the fact that service quality is a
determinant of customer satisfaction. increase. A service provided by a service provider within your
organization.
Regarding the relationship between customer satisfaction and service quality, Oliver (2000) was the
first to suggest that service quality takes precedence over customer satisfaction. Although there are
certain similarities between satisfaction and service quality, satisfaction is generally a broader
concept while service quality focuses specifically on service aspects.

Perceived service quality is a component of customer satisfaction, although other factors such as price
and product quality are known to influence customer satisfaction (Zeithaml et al. 2006). According to
Sureshchandar et al. (2002), customer satisfaction, like service quality, should be viewed as a
multidimensional construct, can occur at multiple levels within an organization, and can be
operationalized. It means that it should be operationalized along the same factors as it should be.
upon.

For the relationship between customer satisfaction and service quality, researchers explored the
meaning and measurement of satisfaction and service quality. Although there are certain similarities
between satisfaction and service quality, satisfaction is generally a broader concept while service
quality specifically focuses on those aspects of service that increase customer satisfaction. He
supports the fact that service quality leads to customer satisfaction, which is consistent with Saravana
and Rao (2007) and Lee et al. (2007). (2000) he recognizes that customer satisfaction is based on the
level of service quality provided by his provider of services.

According to Negi (2009), the idea of linking service quality and customer satisfaction has existed for
a long time. He conducted a study to examine the relevance of customer-perceived quality of service
in determining overall customer satisfaction related to mobile services (telecom) and found that
reliability and network quality (an additional factor) were the key factors in evaluating overall service
are quality, but also emphasized that concreteness, empathy and safety should not be neglected when
evaluating perceived service quality and customer satisfaction. This study was based on a specific
service industry (mobile services) and it is very important to identify and assess those factors that
contribute significantly to determining customer perceived service quality and overall satisfaction.

Fen & Lian (2005) found that both service quality and customer satisfaction have a positive impact
on customers' return customer intentions, showing that both service quality and customer satisfaction
play a crucial role in the success and survival of any business in the industry play competitive market.
This study proves a close connection between service quality and customer satisfaction. Su et al.,
(2002) conducted a study examining the relationship between service quality and customer
satisfaction, and from that study found that there was a large interdependence between both
components, with a 1 to 1 we concluded that the increase probably leads to customer satisfaction.
Extend your lead further. They also pointed out that service quality is more abstract than customer
satisfaction because customer satisfaction reflects the customer's feelings about many encounters and
experiences with service companies.

2.2.2. Studies Related to Call center Service

(Anton, 1997) identified four primary measures of service quality in call center services.

Operational measures

In the call center industry, service quality performance evaluation is based on several operational
metrics. There are many commonly used operational measures (Anton, 2004; Feinberg et al., 2000).

Feinberg et al. (2000) found that, of 13 operational variables, only first call resolution and
abandonment rates had a significant impact on caller satisfaction, but the relationship remains weak.
Their research shows that operational variables commonly used in call centers have poor predictive
power in evaluating customer satisfaction with call centers. This measure only indicates the level of
efficiency of call centers (Marr and Parry, 2004).

 Call center employee behavior: Burger etc. (2000) established her four dimensions for
measuring customer expectations of call center agent behavior.

 Addictive: We listen to our customers, interpret their problems, assess their constitution
(mood, social behavior, relationship with the company) and adjust their behavior accordingly
to provide robust solutions.

 safety: Clearly explain to the customer the procedure and purpose of troubleshooting to
reduce customer anxiety.

 Sympathy: Empathize with the customer's situation and make the customer's issues feel
important to the organization.

 authority: Agents are empowered and empowered to perform the tasks necessary to resolve
the issue.

 Aspects of service quality: In Paraslaman et al. (2001) Service Quality Gap Model Five
dimensions and 22 service attributes are identified. These dimensions are:

 • Reliability: Ability to deliver promised services.

  Responsiveness: Willingness to provide prompt service. • Security – the ability to inspire
trust and confidence

 Empathy: individual customer care, consideration for customers.

 Tangible Assets: Appearance of physical facilities, personnel and materials. Cainingham et

al. (2006) showed that call center satisfaction has all the dimensions found in SERQUAL
(reliability, responsiveness, assertiveness, and empathy, except concreteness).

Index that combines productivity and quality

Anton (2004) suggests combining different kinds of indicators. The first are internal metrics that
focus primarily on technical quality, such as wait time, hold time, etc. The second type is an external
metric that measures the caller's perception of the call in terms of agent interaction and agent
response. His model examines the contribution of each attribute to three key drivers of customer
loyalty: overall satisfaction, willingness to recommend, and repurchase intent. The metric he is
grouped by three dimensions. Availability (Call center availability (number of calls, wait times, hold
times, and transfers to other agents).

Agent interaction (handled the call quickly, showed interest in the caller's situation, understood the
caller's question, and spoke clearly). Response or resolution (completeness of response, accuracy of
response, adequacy of response, good knowledge of products or services).

2.2.3. Service quality and customer satisfaction studies related to ethio telecom
A number of studies related to service quality and customer satisfaction with ethio telecom and the
previous Ethiopian Telecommunications Corporation (ETC) services were conducted by different
researchers. Potluri and Mangnale (2010) conducted an empirical study to find out the satisfaction
level of ETC customers using the following parameters: service interaction, service delivery process,
customer complaint handling procedure and its outcome and the overall customer satisfaction level.

Another study was conducted by RakshitNegi (2009) with the objective of exploring the causal
relationship between service quality dimensions and overall service quality, and identifying service
quality gaps as experienced by the subscribers of the mobile services of the ETC. The result of the
study indicated over all services quality of mobile communications was perceived to be as below
average by over half (52.7%) of the respondents, followed by less than one-third (28%) who
mentioned it as average, and about one-fifth (19.3%) as above average.
A customer satisfaction survey on ethio telecom mobile services in Ethiopia also conducted by Addis
Ababa university; department of economics in December 2012. As part of the study, we also
investigated the satisfaction of mobile users after using Ethio Telecom's POS. The results show that at
the national level, Ethio Telecom Shops' general advice and customer care is rated an average of 7.2
on his 10-point scale. However, there are no studies specifically related to service quality and
customer satisfaction of Ethio Telecom's call center services.

2.3. Conceptual Framework

A common belief from the literature so far is that there is a correlation between customer satisfaction
and service quality. Service quality can also be evaluated against five service quality dimensions
using various service quality models such as SERVQUA and SERVPERF. These are the most useful,
but they have their own criticisms and differ in applicability to different types of services. Empirical
studies show that the service quality dimension is related to service quality and customer satisfaction.
In addition, various articles and journals have shown that the service quality dimension has a unique
impact on customer satisfaction, but the degree of impact depends on the service quality dimension
and the type of service.

The SERVPERF model is derived from Parasurman's SERVQUAL model and focuses primarily on
perceived service quality. The SERVQUAL approach integrates two components (service quality and
satisfaction) and suggests that, as already mentioned in the theoretical part, perceived service quality
is a precursor to satisfaction. After critically considering both theoretical and empirical research on
service quality and customer satisfaction relevant to various service sectors, the following conceptual
framework is developed. A conceptual framework (Fig. 2.3.) is depicted by combining the service
quality dimension of the SERPERF scale derived from the original SERVQUAL model (Anton,
1997) with a revised service quality model for call center services.

Service Quality
Dimensions
Accessibility Overall Service Quality
Reliability
Responsiveness
Assurance
Empathy
 Service Quality
Dimensions
Accessibility Customer satisfaction
Reliability
Responsiveness
Assurance
Empathy
Dependent variable

Independent variable

Figure .2.3. Conceptual framework model

Based on the revised SERVQUAL model of Parasuraman (2004) and the revised service quality
model of (Anton, 1997), 22 elements of the service quality model were listed for this study, most
important to customers and Identify key aspects that bring satisfaction to This 22 points of his are
listed in the questionnaire.

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

This chapter examines the research Design and methodology for examining the research model and
developing hypotheses. It includes study research approach, design, study population, sample size
determination, data sources, data collection tools, data analysis techniques, ethical considerations, and
finally validity and reliability.

3.1 Research approach

The research approach is deductive as it tests theories rather than developing them. This study was
conducted as a quantitative study, and also the Research was focused primarily on building
quantitative data.
3.2 Research design
A study design provides a framework for collecting and analyzing data. This study uses a
combination of descriptive and causal research designs. This study is descriptive intended to describe
the level of customer satisfaction and service quality of Ethio Telecom call centers and to gain a
deeper understanding of the reality of customer satisfaction with service quality of Ethio Telecom call
centers. A causality study design is used to understand the relationship between service quality
dimensions and customer satisfaction, and the impact of service quality dimensions on overall service
quality and customer satisfaction.

3.3. Population of the study

Researcher was used target subscribers of ethio Telecom customers and key customers in Addis
Ababa where both 980 and 994 access numbers are available. The target population of the study was
unknown in numbers; because it continually changes each time.

3.4. Sample size Determination

Determining the sample size is a scientific task that should be performed with due diligence. ethio
telecom currently has more than 70 million customers. There are a large number of ethio telecom
customers in Addis Ababa who calls for different reasons on 994 and 980. As Bartlet J. et al. (2011)
to determine the sample size, there are different ways to determine the sample size, depending on
whether the population is known or unknown, whether the population is large or small. Therefore,
according to Ethio Telecoms customers, the researcher was used Cochran's formula to determine the
sample size for an unknown population as follows.

Cochran formula, n=

Whereas, n= sample size.

Z= score corresponding to the desired level of confidence.

P= is the estimated proportion

Q= 1-p

e= the maximum error margin or level of precision desired (5%)

Hence, the score for 95% of confidence level is 1.96 and p is the estimated proportion of the study
variable based on previous studies or pilot studies (80%) and q =1-p (20%)

n= = 246

3.5. Sources of Data

In order to achieve the purpose of this study, the relevant data was collected or obtained from primary
and secondary data sources.

3.5.1 Primary source of data

It is clear that the data are obtained from primary sources, which is very important for the reliability
of the study results. It helps researchers to understand the problem at hand clearly and in detail.
Primary data is collected through the administration of questionnaires.

3.5.2 Secondary source of data

Most business research should start with a secondary data source. Because it provides great
background information on topics relevant to your business. However, to be reliable, secondary data
should be combined with primary data. Secondary data are bullet points, brooches, and company
databases are collected by the company. We also collect data from articles to review relevant theory
and empirical evidence to help us better understands customer satisfaction, service quality and his
SERVQUAL model.

3.6 Data Collection procedures

This study uses both primary and secondary data. Questionnaires are used to collect primary data
from the customers included in the sample. Because it's easy to manage surveys. Questionnaires
consist of multiple-choice questions, and secondary data are collected in written or short form, such
as journals, books, and magazines.

3.7 Data collection instrument

The main tools used for data collection are questioners for ethio telecom major customers in Addis
Ababa who have access to use both 980 and 994 access numbers to get the required information from
the primary source, while secondary data is obtained through internal reference documents.
3.8 Data analysis methods
The data collection method is quantitative and interpreted qualitatively; the data is analyzed with it.
After the relevant data are collected, they are analyzed using the Social Science Statistical Package
(SPSS). Each research question is answered accordingly, the results of the analysis are presented in a
table and their implications are explained at the end. Descriptive statistics such as frequency analysis,
mean analysis, and correlation analysis techniques are applied to analyze the respondents' background
information, and to analyze respondents' perceptions of service quality and satisfaction, as well as
service quality dimensions, overall service quality, and customer Analyze satisfaction relationships.

3.9. Reliability and Validity

3.9.1. Reliability
The quality criteria for this study relate to the consistency of the concept scale. This quality criterion
addresses the question of whether research results are reproducible (Bryman and Bell, 2007).

In this study, Cronbach's alpha is used to assess internal consistency (instrumental (questionnaire)
reliability). Cronbach's alpha is a confidence factor used to measure the internal consistency of a test.
This is a number between 0 and 1. The closer the score is to 1, the higher the internal consistency of
the item. This means that all items measure the same variable. It is measured across all service quality
and customer satisfaction.

3.9.2. Validity
In addition to assessing the reliability of the means, their validity was also ensured by assessing the
validity of the constructs. Construct validity is a measure of operational (measurement) validity, the
extent to which it actually measures what it is meant to measure. Various theoretical and empirical
studies have been evaluated and validated to ensure the validity of dimensionality, regardless of
whether the predefined dependent variable can be measured. In addition, external validity was
checked.

External validity describes the applicability of the results to other contexts. External validity is related
to generalization (Bryman and Bell, 2003). For this study, Addis Ababa's major accounts were the
target group, and the sample was sufficient to generalize to all Ethio Telecom's major accounts.
External validity is therefore powerful and can be generalized.
3.10. Ethical Considerations
Addressing ethical issues in business research is becoming increasingly important as social
responsibility and consumer welfare are increasingly considered (Ghauri and Gronhaug, 2005). All
information was stored and processed confidentially without revealing the identity of the respondents.
The information is presented as collected and is identical to the literature collected for the purposes of
this study, as it has not been altered or corrected.

We also have no intention of influencing participants to obtain information by unfair means. The
survey is anonymous and strictly confidential. Information collected through the questionnaire was
used solely for the purpose of fulfilling the requirements for the Master's degree.

CHAPTER FOUR

RESULT AND DISCUSSION

INTRODUCTION

This chapter presents results and a discussion of these results. A demographic profile of participants
was provided. The aim of this chapter is to analyze and discuss the survey finding using different
statistical tools. Consists of reliability test, analysis and interpretations of background of the the
respondents and analysis and interpretations of the different findings from the survey.

4.1 Description of Sample

Dillman, Smyth, and Christian (2009) recommended using multiple methods of contact to improve
response rates.

Table 4.1 Questionnaire Distribution and Response Rates

Method Questionnaire Returned Response rate (%)
distributed
Google form 246 230 93.5
Source: researcher’s own compilation of Survey data 2023

As presented in the above table response rates for Google form questionnaires were higher 93.5%.

4.2 Background characteristics of the respondents

The researches have classified its respondents in to four characteristics: Gender, Age, Academic
qualification and number of years of ethio telecom customer. Accordingly, the below frequency table
depicts that the characteristics of respondents, number of respondents and percentage.

Table 4.2 Background characteristics of the respondents

Statistics
Sex Age Academic Customer of ET

N Valid 230 230 230 230

Missing 0 0 0 0

Frequency Table

Sex
Frequency Percent Valid Percent Cumulative Percent
Valid Male 174 75.7 75.7 75.7
Female 56 24.3 24.3 100.0
Total 230 100.0 100.0

Age
Frequency Percent Valid Percent Cumulative Percent
Valid Below25 28 12.2 12.2 12.2
25-35 158 68.7 68.7 80.9
 36–45 38 16.5 16.5 97.4
46–55 6 2.6 2.6 100.0
Total 230 100.0 100.0

Academic
Frequency Percent Valid Percent Cumulative Percent
Valid High school 12 5.2 5.2 5.2
Diploma 5 2.2 2.2 7.4
BA degree 146 63.5 63.5 70.9
Masters 57 24.8 24.8 95.7
Doctorate 10 4.3 4.3 100.0
Total 230 100.0 100.0

customer of ET
Frequency Percent Valid Percent Cumulative Percent
Less than 1 year
Valid 11 4.8 4.8 4.8
1-5 yrs.
103 44.8 44.8 49.6
6-10 yrs.
64 27.8 27.8 77.4
More than 10 yrs.
52 22.6 22.6 100.0
Total 230 100.0 100.0
Source: researchers own compilation of Survey data 2023

According to the frequency chart above, there are more men (75.7%) than women (24.3%)
participating in the poll. The majority of responders (68.7%) fall into the 25 to 35 year age range,
followed by those under 25 (12.2%), 36 to 45 (16.5%), and 46 to 55 (2.6%).

High school (5.2%), a diploma (2.2%), a BA degree (63.5%), a master's degree (24.8%), and a
doctoral degree (4.3%) were the levels of education attained. The vast majority of participants were
BA graduates.

The goal of the customers' years' experience question is to learn how long the respondents have been
ethio telecom customers. The findings indicate that the majority of respondents (44.8%) had between
1 up to 5 years of client experience.
4.3. Reliability Test
Reliability is the quality of a measurement procedure to provide repeatability and accuracy.

A construct is said to be reliable if it brings the same result when we use it multiple times
(Bhattacherjee 2012).

Table 4.3.Cronbach’s Alpha (Reliability analysis)

Dimension measurements Cronbach's Alpha

Accessibility .867
Reliability .939
Responsiveness .915
Assurance .926
Empathy .927
Satisfaction .934
Source: researchers own compilation of Survey data 2023

Cronbachs alpha is a coefficient of reliability used to measure the internal consistency of a test or
scale. For internal reliability (consistency of the research instrument), reliability test for all service
quality dimensions was done. Therefore, the customer satisfaction scale was found to be 0.934 which
indicates the acceptability of the items.

Moreover, the scale consistency of each dimensions adapted from the combination of service quality
dimensions of Parasuraman (2002) and Anton(1997) namely accessibility, reliability, responsiveness,
assurance and empathy were also computed with the value of 0.867, 0.939, 0.915, 0.926 and 0.927
respectively as table 4.3 shows.

4.4. Service Quality Dimensions, Overall Service Quality and Customer Satisfaction
Respondent’s perception towards ethio telecom call center service quality is measured through five
service quality dimensions. Respondents’ perception towards over all service quality and their
satisfaction level also measured using their mean score. Table 4.4 shows respondents perception
towards service quality dimensions, over all service quality and customer satisfaction.

Table 4.4 Descriptive statistics (Perception of SQ dimensions, over all service quality and
customer satisfaction)

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Accessibility 230 1.00 5.00 3.4207 1.12094
Reliability 230 1.00 5.00 3.7287 1.13451
Responsiveness 230 1.00 5.00 3.7696 1.12127
Assurance 230 1.00 5.00 3.9250 1.04854
Empathy 230 1.00 5.00 3.9017 1.05677
Overall service quality 230 1.00 5.00 3.9130 1.21537
Satisfaction 230 1.00 5.00 3.8565 1.22611
Valid N (listwise) 230
Source: researchers own compilation of Survey data 2023

As table 4.4 shows perception of respondents on Assurance and Empathy is good compared to other
service quality dimensions which have mean score of 3.925 and 3.9017 respectively. Responsiveness
and Reliability has moderate perception with mean score of 3.7696 and 3.7287 respectively. As well
as Accessibility have least perception with mean value of 3.4207.

From this finding, ethio telecom call center service is good in Assurance that means Respondents’
perception towards quality of assurance items like employee knowledge and courtesy of call center is
good.

Respondents’ perception towards Empathy is the ability to understand customers thought and feelings
in a situation from their point of view, rather than their own.

However, the service quality of accessibility, which includes the number of calls made before an
agent picks up, the amount of time held on the line, and the likelihood of being transferred to another
agent, is not good. Other service quality reliability items include providing service at the scheduled
time, performing service correctly the first time, and so on.

According to table 4.4 above, the mean response rating for overall service quality and customer
satisfaction is poor, at 3.9130 and 3.8565 respectively. This table generally demonstrates that overall
service quality and customer satisfaction are low.

According to Anton (1997), the customer satisfaction index (CSI) divides the perception of service
performance into three zones: the preference zone, the acceptance zone, and the rejection zone. He
claims that CSI is in the "preference zone" if it has a score of at least 85.

4.5 Relationship between Service Quality Dimensions, overall Service Quality and
Customer Satisfaction
Correlation analysis is used to assess the relationship among service quality dimensions, over all
service quality and customer satisfaction. Correlation analysis deal with relationships among variable
 and helps to gain insight in to the direction and significance of relation between the variables.
Correlation coefficient take values between -1 and 1 ranging from being negatively correlated (-1) to
uncorrelated (0) to positively correlated (1).

Table 4.5: Correlation (Relationship among Service quality dimension, over all service quality
and customer satisfaction)

Correlations
Accessibilit Reliabilit Respnsvens Assuranc Empath Overall Satisfactio
y y s e y service n
quality
** ** ** **
Accessibility Pearson 1 .849 .795 .682 .690 .568** .531**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 230 230 230 230 230 230 230

** ** ** ** **
Reliability Pearson .849 1 .910 .804 .783 .631 .607**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
Responsiven Pearson .795** .910** 1 .817** .804** .661** .654**
ess Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
** ** ** ** **
Assurance Pearson .682 .804 .817 1 .908 .754 .713**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
** ** ** ** **
Empathy Pearson .690 .783 .804 .908 1 .765 .739**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
** ** ** ** **
Overall Pearson .568 .631 .661 .754 .765 1 .877**
service Correlation
quality Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
Satisfaction Pearson .531** .607** .654** .713** .739** .877** 1
 Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
**. Correlation is significant at the 0.01 level (2-tailed).
Source: researchers own compilation of Survey data 2023

Correlation analysis was undertaken to discuss the relationship between service quality dimensions
and customer satisfaction. According to table 4.5 all service quality dimensions and customer
satisfactions have positive and significant relationship.

Like the relationship between service quality dimensions and over all service quality, the strength of
correlation is different between service quality dimensions and customer satisfaction. Empathy and
assurance have better correlation with correlation coefficient value of .739 and .713 respectively.
Accessibility has the lowest correlation coefficient value of .531. This implies that the better the
quality of service with service quality dimensions items of Empathy and assurance items the higher
the level of customer satisfaction.

The relationship between overall service quality and customer satisfaction is also discussed using
correlation analysis. As the table shows over all service quality and customer satisfaction has positive
and significant relationship with correlation coefficient value of 1.

Parasuraman, Zeithmal and Berry (2002, 1988) point out that service quality and customer
satisfaction is closely related. The existence of this relationship between service quality and customer
satisfaction is more explained by Cronin and Taylor (1992), service quality is an antecedent of
satisfaction.

4.6. Impact of Service quality Dimensions on Customer satisfaction

The main assessment in this part is impact of each independent variable on dependent variable.

Table 4.6 Linear regression Analyses (impact of each service quality dimensions on Customer
satisfaction)

ANOVAb
Model Sum of Squares Df Mean Square F Sig.
1 Regression 194.386 5 38.877 58.103 .000a
Residual 149.880 224 .669
Total 344.265 229
a. Predictors: (Constant), Empathy, Accessibility, Responsiveness, Assurance, Reliability
b. Dependent Variable: customer Satisfaction
 Coefficientsa
Model Unstandardized Coefficients Standardized T Sig.
Coefficients
B Std. Error Beta
1 (Constant) .375 .215 1.747 .082
Accessibility -.008 .092 -.007 -.083 .934
Reliability -.154 .136 -.142 -1.127 .261
Responsiveness .261 .126 .239 2.076 .039
Assurance .226 .134 .193 1.685 .093
Empathy .567 .127 .488 4.451 .000
a. Dependent Variable: customer Satisfaction
Source: researchers own compilation of Survey data 2023

The value of R square is used to evaluate the model. It tells us how much of the variance in the
dependent variable (Customer satisfaction) is impacted by all independent variables (accessibility,
reliability, responsiveness, assurance and empathy). In this case, the value is 0.55 which can be
expressed by percentage (0.55*100) this means that this model explains by 55 percent.

As depicted in the above table. The significance value of F statistics is 0.000 which is less than 0.05.
It means that the variation explained by the model is not due to chance. This also shows that there is a
significant relationship between the dependent and independent variables.

The independent variables estimated to predict customer satisfaction are accessibility, reliability,
responsiveness, assurance and empathy. All these independent variables are significant predictors of
customer satisfaction with a p value < 0.05 except accessibility but Responsiveness, assurance and
empathy have great significance in predicting over all service quality of ethio telecom call center with
p value of 0.00, 0.00 and 0.00. Moreover, the standardized coefficient β in the table shows the impact
of independent variables have on customer satisfaction. All service quality dimensions have positive
impact on customer satisfaction of call center even though their impact is different.
4.7 Impact of overall Service quality on Customer satisfaction
Linear regressions analysis was applied again to assess the impact of service quality dimensions on
customer satisfaction.

Table 4.7 shows the SPSS result of the analysis.

Coefficientsa
Model Unstandardized Coefficients Standardized T Sig.
Coefficients
B Std. Error Beta
1 (Constant) .396 .132 3.007 .003
Overall service .884 .032 .877 27.502 .000
quality
a. Dependent Variable: Satisfaction
Source: researchers own compilation of Survey data 2023

Over all service quality has significant positive impact with p value = 0.00 on customer satisfaction of
ethio telecom call center. The directions of the impact also positive with coefficient β value of 0 .877
which indicate that based on this model overall service quality has significant impact on customer
satisfaction with β value=0.877.

4.8 Discussion
The main issue addressed in this present study is the impact of service quality on customer
satisfaction in the case of ethio telecom call center. This study goes to add some value to the study.
The SERVQUAL model was used in measuring service quality by testing the relationship between
the service quality dimensions and service quality. If they could be good measures of evaluation then
they could have a direct relationship and this was confirmed through my study, that means all the five
service quality dimension have direct relationship with and can measure service quality, this study
also shows that SERVQUAL is the appropriate tool to measure the quality of services in ethio
telecom. This present study in general confirms the service quality dimensions Empathy, Reliability,
Responsiveness, Tangibility and Assurance which were significantly related to service quality and
even went to relate these dimensions with customer satisfaction. Meanwhile in the individual testing,
correlation measured the direction and strength of the relationship between independent variables
with dependent variable. Descriptive analysis and correlation test indicate that among all the service
quality dimensions Empathy and assurance is the major determinants of customer satisfaction in ethio
telecom.

The correlation result shows that all service quality dimensions (Tangibility, Reliability,
Responsiveness, Assurance and Empathy) have a positive and significant effect on customer
satisfaction. Empathy dimension is the dominant with high mean score and frequency and
accessibility with week mean score.

The finding further indicates that the strong correlation is found between Empathy and customer
satisfaction followed by assurance dimension whereas the weakest correlations between accessibility
and customer satisfaction.

In a general view of the situation, it could be seen that the SERVQUAL dimensions mean score and
frequency vary in the different level which represented the service quality dimensions were
distinguished by the customers based on their perception towards all dimension.
 CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1. Summary of Findings

The primary objective of this study was to assess the overall level of service quality and customer
satisfaction at Ethio Telecom's call centers and to explore how service quality impacts customer
satisfaction.

• Respondent background information, perceptions of service quality and customer satisfaction, and
aspects of service quality, the relationship between overall service quality and customer satisfaction,
were all analyzed using descriptive statistics such as frequencies, mean, and correlation analysis
techniques was investigated using Inference techniques.

• Descriptive statistics such as frequency averages and correlation analysis techniques are applied to
analyze the demographic information of the respondents to determine respondents' perceptions of
service quality and satisfaction, as well as aspects of service quality, overall service quality and
customer satisfaction. We analyzed the degree relationship.

• Average comparisons were also performed to assess customer perceptions of aspects of service
quality, overall service quality and customer satisfaction.

• Correlation coefficient statistics show that the empathy and assurance aspects have a strong and
important relationship with customer satisfaction. A significant correlation was also found between
service quality dimensions and customer satisfaction.

• The results also showed that there was a significant correlation between the independent variables
(service quality dimension) and dependent variable (customer satisfaction). There is a relatively
strong correlation between empathy and assurance.

• In general, all independent variables are significantly related to the dependent variable at p= 0.01,
even if the strengths are different.

5.2. Conclusion
The main aim of the study was to assess the impact of service quality on customer satisfaction in
ethio telecom call center, to find out important dimensions of services having greater influence on
service quality and customer satisfaction. Accordingly, five service quality dimensions (accessibility,
reliability, responsiveness, assurance and empathy) were hypothesized to evaluate service quality and
customer satisfaction.

Since the mean value of overall service quality and customer satisfaction is low (below average), it is
concluded that over all service quality of call center is not good and customers are not satisfied with
the services of ethio telecom call center.
Ethio telecom can improve its services by focusing on all service quality dimensions and at the same
time it can increase customer satisfaction by focusing on overall service quality and important
dimensions.

Ethio telecom can improve its call center service quality and customer satisfaction by improving
service quality of all dimensions by giving special attention.

5.3. Recommendations
As the survey results show, all five dimensions of service quality have a large and positive impact on
service quality and customer satisfaction. Therefore, working to improve these service quality aspects
will contribute to overall service quality and customer satisfaction. Based on the findings, the
following recommendations are made.

Ethio Telecom will need to improve the existed and implement different cloud-based communication
channels, such as video chat, chat bot, and integrated voice recording, so contact center service
providers will no longer be limited to voice calls only.

Businesses should assess call center staffing levels for daily calls and take corrective action to
improve availability. Businesses should implement various types of call center agent motivation
programs that encourage employees to provide appropriate service to customers to increase customer
satisfaction.

Companies should implement standardized work processes and procedures related to call center
services. This includes defining achievable KPIs (key performance indicators) and standardized
parameters for monitoring call quality. Implementing these procedures will help minimize agent
disparities in customer service.

Ethio Telecom will provide call center agents with ongoing on-the-job and off-the-job training,
especially in the areas of communication skills, complaint skills, and customer-facing skills, to
enhance service interactions between the company and customers during calls need to do it and
Improves call center level. In addition, this allows customers to be addressed quickly rather than
escalating every complaint elsewhere in the company.

In general, all service quality aspects included in the survey model impact the overall service quality
and customer satisfaction of Ethio Telecom call centers. Based on these aspects, customers perceive
poor overall service quality and satisfaction. Therefore, Ethio Telecom must work diligently on all
these aspects of service quality in order to improve service quality and customer satisfaction in its call
centers.

5.4.2. Direction for Future Research

The purpose of this study was to find out how Ethio Telecom call center customers perceive the
quality of service and measure their satisfaction. Knowing how customers perceive service quality
and being able to measure service quality will provide reliable data that can be used to monitor and
maintain improvements in service quality, which will help Ethio Telecom's management. Bring
benefits to the results also indicate low customer-perceived service quality and satisfaction.
Therefore, this means that Ethio Telecom must work diligently on all aspects of service quality in
order to achieve higher service quality and customer satisfaction.

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APPENDIX 1

Questionnaire
My name is Esrael Kena, I'm studying MBA at Rift Valley University Sebeta compus. I would also
like to thank you for taking the time to complete the ethio telecom satisfaction questionnaire below.
So I politely await your cooperation. Therefore, I conduct research on the impact of service quality
and customer satisfaction in the case of the Ethio Telecom call center.

Part one:

General information about the respondents

Please tick your response with “ ” mark

Instructions:

1. No need to write your name

2. Rate your survey by using tick sign (✓).

Part I Demographic Information

1. Sex: Male Female

2. Age: Below 25 25-35 36 – 45 46 – 55 Above 55

3. Academic qualification: High school complete Diploma BA Degree

Masters Degrees Doctorate Degree

4. How long have you been a customer of ethio telecom?

Less than 1 year 1 – 5 Years 6 – 10 Years More than 10 Years

5. Company category:

Financial institution Service provider Manufacturer

6. From services provided by ethio telecom, which services do you currently using? (Please tick on as
many services as applicable)

Fixed line telephone services Internet service

Mobile services VPN service

Tele birr service

7. How long you have been using Ethio telecom call center service?

Less than one year Three up to five years

One up to three years Above five years

8. How many times you have been called to ethio telecom call center since last three months?

Three times More than four years Four times

9. Which Ethio telecom call center access numbers you have been used to contact Ethio telecom call
center agents? 994 980 Both

10. What were the reasons of your calls to ethio telecom call center? (Please tick on as many reasons
as applicable)

For bill request For Complaint For technical support

For complaint status request For information request For Feedback

Part two:
The statements deal with the perceptions of service experienced in ethio telecom call center. Please
show the extent to which these statements reflect your perception of service in ethio telecom call
center. Please circle a number that shows your level of agreement with the following statements.

(1-Strongly disagree, 2-Disagree, 3-Nuetral, 4-Agree, 5-Strongly agree)

Service quality dimensions Strongl Disagre Neut Agre Strongl

y e r al e y agree
disagree

Accessibility

The number of calls you attempted before

getting Ethio telecom call center agent is few

The length of time you spent on hold waiting for

the first Ethio telecom call center agent to
answer your call is short

The length of time placed on hold by Ethio

telecom call center agent is short

The probability of transferring your call to

another Ethio telecom call center agent is low

Reliability

Ethio telecom call center provides services at

scheduled times as promised

When you have a problem, Ethio telecom call

center shows a sincere interest in solving it
Ethio telecom call center performs the service
right the first time

Ethio telecom call center insists on error free

Records

Ethio telecom call center provides its service at

the time it promises to do so

Responsiveness

Employees in ethio telecom call center tell

customers exactly when service will be
performed

Employees in ethio telecom call center gives

your prompt service

Employees in ethio telecom call center are

always willing to help you

Employees in ethio telecom call center are never

too busy to respond to your request
Assurance

The behavior of employees in the ethio telecom

call center instills confidence in you

You feel safe in your transactions with the

ethio telecom call center

Employees in ethio telecom call center are

consistently courteous with you

Employees in ethio telecom call center have the

knowledge to answer your questions

Empathy

Ethio telecom call center gives you individual

Attention

Ethio telecom call center has operating hours

convenient to you

Ethio telecom call center has employees who

deal with you in a caring fashion

Ethio telecom call center has best interest of

you at Heart

Employees in ethio telecom call center

understand your specific needs

42
Part three:

This part indicates overall level of service quality and your overall level of satisfaction on Ethio
telecom call center services. Please circle a number that shows over all service quality perception
and your level of satisfaction with the following statements.

(1- Highly Dissatisfied, 2- Dissatisfied, 3-Neutral, 4- Satisfied, 5-highly satisfied)

Overall level service quality and Strongly Dissatisfie Neutral Satisfied Strongly
satisfaction d
Dissatisfied Satisfied

Over all, the service quality of

ethio telecom call center service
is good

In general, I am satisfied with the 1

services of ethio telecom call
center

43
Appendix 2: Statistical output
2.1 Reliability test ( Cronbach,s Alpha)

Dimension measurements Cronbach's Alpha

Accessibility .867
Reliability .939
Responsiveness .915
Assurance .926
Empathy .927
Satisfaction .934
Source: researchers own compilation of Survey data 2023

2.2. Descriptive statistics

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Accessibility 230 1.00 5.00 3.4207 1.12094
Reliability 230 1.00 5.00 3.7287 1.13451
Responsiveness 230 1.00 5.00 3.7696 1.12127
Assurance 230 1.00 5.00 3.9250 1.04854
Empathy 230 1.00 5.00 3.9017 1.05677
Overall service quality 230 1.00 5.00 3.9130 1.21537
Satisfaction 230 1.00 5.00 3.8565 1.22611
Valid N (listwise) 230
Source: researchers own compilation of Survey data 2023

44
 2.3. Correlation Analyses

Correlations
Accessibili Reliabilit Respnsvens Assuranc Empath Overall Satisfactio
ty y s e y service n
quality
** ** ** **
Accessibility Pearson 1 .849 .795 .682 .690 .568** .531**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000

N 230 230 230 230 230 230 230

** ** ** ** **
Reliability Pearson .849 1 .910 .804 .783 .631 .607**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
** ** ** ** **
Responsiven Pearson .795 .910 1 .817 .804 .661 .654**
ess Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
Assurance Pearson .682** .804** .817** 1 .908** .754** .713**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
Empathy Pearson .690** .783** .804** .908** 1 .765** .739**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
** ** ** ** **
Overall Pearson .568 .631 .661 .754 .765 1 .877**
service Correlation
quality Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
** ** ** ** ** **
Satisfaction Pearson .531 .607 .654 .713 .739 .877 1
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000 .000
N 230 230 230 230 230 230 230
**. Correlation is significant at the 0.01 level (2-tailed).
Source: researchers own compilation of Survey data 2023

2.4 Linear regressions (Impact of service quality dimensions on Customer satisfaction)

45
 ANOVAb
Model Sum of Squares Df Mean Square F Sig.
1 Regression 194.386 5 38.877 58.103 .000a
Residual 149.880 224 .669
Total 344.265 229
a. Predictors: (Constant), Empathy, Accessibility, Responsiveness, Assurance, Reliability
b. Dependent Variable: Satisfaction

Coefficientsa
Model Unstandardized Coefficients Standardized t Sig.
Coefficients
B Std. Error Beta
1 (Constant) .375 .215 1.747 .082
Accessibility -.008 .092 -.007 -.083 .934
Reliability -.154 .136 -.142 -1.127 .261
Responsiveness .261 .126 .239 2.076 .039
Assurance .226 .134 .193 1.685 .093
Empathy .567 .127 .488 4.451 .000
a. Dependent Variable: Satisfaction
Source: researchers own compilation of Survey data 2023

4.5 Linear regressions analysis (impact of overall Service quality on Customer satisfaction)

Coefficientsa
Model Unstandardized Coefficients Standardized T Sig.
Coefficients
B Std. Error Beta
1 (Constant) .396 .132 3.007 .003
Overall service .884 .032 .877 27.502 .000
quality
a. Dependent Variable: Satisfaction
Source: researchers own compilation of Survey data 2023

Thank you!! For your cooperation

46