THE EFFECT OF BROADBAND SERVICE QUALITY AND PRICE ON KEY ACCOUNT CUSTOMERS’ SATISFACTION IN ETHIO TELECOM

Abstract

The role of service quality becomes a critical success factor for organizations. The main purpose of the study is to assess the effect of broadband service quality and price on the satisfaction of Key Account customers in ethio telecom. To address the stated research objective primary and secondary data are employed. Primary data was collected from a sample of 343 respondents of the target population of the study who are Key Account customers through stratified random sampling procedure. Secondary data was used to compare ethio telecom’s broadband internet bandwidth and price with Sub-Saharan African countries with the same economic level. Both qualitative and quantitative data analysis techniques were employed. Tests for the Classical Linear Regression Model (CLRM) Assumptions made. To analyze data, a modified SERVQUAL model called SERVPERF model was used. Results indicate that the Key Account customers have a positive perceived service quality towards all dimensions with a score of tangible (3.69), reliability (3.08), responsiveness (3.69), assurance (3.66) and empathy (3.70). Their correlation to each other is also significant with p-value less than 0.05. Also, all dimensions of perceived quality separately contributed to customer satisfaction significantly except responsiveness. Impact of Price and total perceived quality on customer satisfaction was positive as well. In addition, with the comparison of ethio telecom’s broadband internet bandwidth and fair price rank with some Sub-Saharan African countries, Ethiopia found in the lowest rank in both dimensions. Finally, the researcher recommended that ethio telecom should focus on reducing the frequency of the broadband internet interruption, provide the service with more reasonable price and further researches shall be done on this area.