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Service Quality and Customer Satisfaction

This document is a research proposal submitted by Esrael Kena to Rift Valley University in partial fulfillment of a master's degree in business administration. The proposal examines the impact of service quality on customer satisfaction at Ethio Telecom's call centers. It includes a background of the study, problem statement, research questions, objectives, significance, scope, limitations, and organization of the paper. The literature review covers theories of service quality and customer satisfaction models as well as empirical studies on their relationship and call center services. The research methodology discusses the approach, design, sampling, data collection and analysis, reliability, validity, and ethics.

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0% found this document useful (0 votes)
107 views34 pages

Service Quality and Customer Satisfaction

This document is a research proposal submitted by Esrael Kena to Rift Valley University in partial fulfillment of a master's degree in business administration. The proposal examines the impact of service quality on customer satisfaction at Ethio Telecom's call centers. It includes a background of the study, problem statement, research questions, objectives, significance, scope, limitations, and organization of the paper. The literature review covers theories of service quality and customer satisfaction models as well as empirical studies on their relationship and call center services. The research methodology discusses the approach, design, sampling, data collection and analysis, reliability, validity, and ethics.

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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RIFT VALLEY UNIVERSITY

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


TELECOM CALL CENTER

A Research Proposal Submitted to Rift valley University Sebeta compus in Partial Fulfillment of The
Requirements For The master’s degree in Business Administration

NAME: ESRAEL KENA


I’D: 0050/21

Advisor: Pr. Tesfa M.

MAY 07, 2023


Contents
ACCRONYMS AND ABBREVIATIONS...............................................................................................................................iii
CHAPTER ONE................................................................................................................................................................. 1
INTRODUCTION..........................................................................................................................................................1
1.1 Background of the study.....................................................................................................................................1
1.2 Statement of the problem........................................................................................................................................2
1.3 Research Questions...................................................................................................................................................3
1.4. Objective of the study..............................................................................................................................................3
1.4.1 General Objectives.................................................................................................................................................3
1.4.2 Specific objectives..................................................................................................................................................3
1.5. Significance of the study..........................................................................................................................................3
1.6. Scope of the study...................................................................................................................................................4
1.7. Limitation of the study.............................................................................................................................................4
1.8 Definition of terms....................................................................................................................................................4
`1.9. Organization of the paper.......................................................................................................................................5
CHAPTER TWO................................................................................................................................................................ 5
REVIEW OF RELATED LITERATURE...................................................................................................................................5
2.1. Theoretical Review of Literature..............................................................................................................................5
2.1.1. Service Concept.....................................................................................................................................................5
2.1.1 .1. Customer Expectation VS Perception of Service...............................................................................................6
2.1.1.2. Service Encounters.............................................................................................................................................6
2.1.1.3. Call Center Service............................................................................................................................................7
2.1.1.3. Call Center Service............................................................................................................................................7
2.1.1.4. Importance of Call Center Service......................................................................................................................7
2.1.2. Service Quality......................................................................................................................................................8
2.1.2.1. Service Quality Models.......................................................................................................................................8

ii
2.1.2.2. Choice of service quality Model for the study..................................................................................................11
2.1.3. Customer Satisfaction.........................................................................................................................................11
2.2. Empirical Review....................................................................................................................................................12
2.2.1. Relationship between Service quality and customer satisfaction.......................................................................12
2.2.2. Studies Related to Call center Service.................................................................................................................13
2.2.3. Service quality and customer satisfaction studies related to ethio telecom.......................................................15
2.3. Conceptual Framework..........................................................................................................................................15
2.4. Hypotheses of the study........................................................................................................................................16
CHAPTER THREE............................................................................................................................................................17
RESEARCH DESIGN AND METHODOLOGY.....................................................................................................................17
3.1 Research approach..................................................................................................................................................17
3.2 Research design......................................................................................................................................................17
3.3. Sampling design and procedure.............................................................................................................................17
3.3.1. Target Population................................................................................................................................................17
3.3.2. Sampling technique.............................................................................................................................................17
3.3.3. Sample size..........................................................................................................................................................18
3.4. Sources of Data......................................................................................................................................................18
3.4.1. Primary source of data........................................................................................................................................18
3.4.2. Secondary source of data....................................................................................................................................18
3.5 Data Collection methodologies...............................................................................................................................19
3.6 Data collection instrument......................................................................................................................................19
3.7 Data analysis methods............................................................................................................................................19
3.8. Reliability and Validity............................................................................................................................................19
3.8.1. Reliability............................................................................................................................................................19
3.8.2. Validity................................................................................................................................................................ 19
3.9. Ethical Considerations............................................................................................................................................20
Budget plan................................................................................................................................................................... 20
REFERENCES.................................................................................................................................................................. 22
APPENDIX...................................................................................................................................................................... 28

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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

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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

v
developed countries are outsourcing their call center activities to India. But in the Ethiopian context, the ethio
telecoms call center is the only known and heavily used call center service in Ethiopia.

In this paper the researcher will examine 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.

1.2 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 will be 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 that 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,

vi
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
will be 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 is new in Ethiopia and as mentioned in the company background, Ethio Telecom's call
center is the only 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. applied to phone calls.

A current study is being 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, researchers found it important to conduct this study and examine the fundamental roles and effects
they have.

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. Assess the overall impact of 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.

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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 will be 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 will contribute the knowledge of service
quality and customer satisfaction, the relationship between service dimensions, service quality and customer
satisfaction in the call center industry.

The study results will 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 will 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 will be 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 wholesale 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 will be confronted with the inadequacy of relevant studies on the subject,
particularly in the Ethiopian telecommunications sector. Because the study will be conducted at a single
organization, the research cannot provide general truth, 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 Definition of terms


 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.
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 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, definition of terms 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 analysis of the study and its interpretations. The last chapter, chapter five, contains conclusions,
recommendations and; Limits and directions for further study.

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CHAPTER TWO

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.

2.1.1 .1. 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.

Customer perception is entirely subjective and based on the customer's interactions with the product or service.
Perception is derived from customer satisfaction with a particular product or service and quality of service delivery.

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). 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).

2.1.1.2. 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.

x
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.

2.1.1.3. Call Center Service

2.1.1.3. 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.

2.1.1.4. 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.

xi
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.

2.1.2. 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. Did.

2.1.2.1. 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 dimensions of service quality.

Assets, Reliability, Responsiveness, Competence, Courtesy, Reliability, Security, Access, Communication, Customer
Understanding.

The SERVQUAL model, which first appeared, had 22 sets of Likert-type items, one measuring the perceived level of
service for a particular organization and another measuring the level of service quality expected by respondents. . After
refinement, these 10 dimensions of his above were later reduced to his 5 dimensions as follows.

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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.

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 consumer’s 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,).

xiii
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.

2.1.2.2. 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.

2.1.3. 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).

xiv
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.

xv
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

xvi
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.

xvii
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.

Overall Service Quality


Service Quality
Dimensions

Accessibility

Reliability

Responsiveness

Assurance
Customer satisfaction
Empathy

Figure .2.3. Conceptual framework model

xviii
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.

2.4. Hypotheses of the study


H1: The service quality aspect contributes positively and significantly to the overall service quality.

H2: The quality of service aspect contributes significantly to customer satisfaction.

H3: Overall, service quality has a large positive impact on customer satisfaction.

xix
CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Research approach


The research approach is deductive as it tests theories rather than developing them. This study will be conducted as a
quantitative study. Research 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. Sampling design and procedure

3.3.1. Target Population


Researcher will be used to target subscribers, Ethio Telecom customers and key customers in Addis Ababa where both
980 and 994 access numbers are available.

3.3.2. Sampling technique


From Probability sampling technique, stratified probability sampling technique will be used to obtain responses from
respondents by dividing the population into subgroups based on the amount of revenue the company has generated.
This is to ensure that each subgroup within the population is well represented in the sample. This study will be grouped
main customers into three parts. Very critical, medium and less critical customers are applied to the stratified random
sampling formula. This is:

Sample size of the strata = Sample size/population size x layer size

3.3.3. Sample size


Accurate information about specific populations can only be obtained from the census. However, in many cases it is
not possible to cover the entire population for reasons of time and expense. Sampling is therefore one way that
researchers can study a relatively small number of units that represent the entire population. 250 respondents are
selected from 3,200 major customers. In determining the sample, researchers use a formula to determine sample size.
As shown below.

xx
N
n¿ 2
1+ N e

Where

n= sample size

N= population size

e= margin of error (0.05%) or maximum tolerable error.

3.4. Sources of Data


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

3.4.1. 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 understand the problem at hand clearly and in detail. Primary data is collected through the
administration of questionnaires.

3.4.2. 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 understand customer satisfaction,
service quality and his SERVQUAL model.

3.5 Data Collection methodologies


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.

3.6 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.

3.7 Data analysis methods


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

xxi
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.

3.8. Reliability and Validity

3.8.1. 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. H. 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.

3.8.2. 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.

3.9. 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.

xxii
Budget plan
No Items Quantity(unit) Amount in birr

1 Equipment 1 1000

2 Stationery 5 500

3 Materials 10 1000

4 Secretarial 3 450

5 Travel 2 400

6 photocopying 100 400


7 printing and binding 100 500

Total amount 221 4250

xxiii
Time plan

No Description Period of time in months


February March April May June
1 Research thesis √
will be submitted
to the respective
advisor
2 Here is the period √
that the thesis will
be viewed by
advisor and
returned to the
researcher.
3 Period of the √
thesis correction,
that commented
by respective
advisor
4 Thesis
submission after 
it corrected by the
researcher.
5 In this month it 
will be that, the
thesis again
reviewed by
respective advisor
and returned to
the researcher for
the last
submission.

xxiv
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xxviii
APPENDIX

Appendix 1: Questionnaire

Appendix 1.1: Questionnaire (English Version)

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


xxix
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

xxx
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 Strongly Disagree Neutr al Agree Strongly


disagree agree

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

xxxi
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

xxxii
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

33
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 Dissatisfied Neutral Satisfied Strongly
satisfaction
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

34

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