THE EFFECTS OF SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION: THE CASE OF NIB INSURANCE S.C

Abstract

The study assessed the effects of service quality dimensions on customer satisfaction. The study was identifying the factors that influence customer satisfaction of NIC service quality focused on the five dimensions of service quality such as tangibility, reliability, responsiveness, assurance and empathy which were considered as the base for the analysis of this study. To achieve the overall objective of the study the researcher collected data from customers of the NIC, using a questionnaire. Accordingly, 228 respondents participated in the study based on designed sample size. Both descriptive and inferential statistics methods were used in the study. A multiple regression model was fitted to see the significance of factors affecting customer’s satisfaction. The data were analyzed by using SPSS version20 package. The result of the study revealed that the overall level of customer’s satisfaction in the study area is low as compared to those who were satisfied. The result of study showed that except tangibility the rest service quality dimensions were positively related to and found to significantly affecting customer satisfaction of NIC. From the study; reliability, responsiveness and empathy remains the most determinant and they strongly influence customer’s satisfaction level of NIC. In overall, the results of the regression revealed that independent variables (reliability, responsiveness and empathy) are significant with customer satisfaction at the level p < .05. Furthermore, multiple regressions identify the relative contribution of each variable and determine the best predictor variables among a set of variables. Reliability has the highest contribution to customer loyalty among the independents variables (B = .394). Based on the findings, the study recommend the following management bodies of the NIC further investigate the main reason of unsatisfied customers and they should take corrective measure accordingly. Furthermore, the research would enable the company to see their wherebeing and gives a chance to explore the core value of their customers needs and these further make the company to sustain and to be the leading insurance service provider in market.