THE EFFECT OF PRODUCT QUALITY ON CUSTOMER SATISFACTION-THE CASE OF WALIA BEER PRODUCT

Abstract

The main purpose of this study is to measure the effect of product quality on customer satisfaction in the case of Walia beer. The study has used the eight Gavrin‟s product quality features. These Eight dimensions of product quality features namely Performance, Features, Reliability, Conformance, Durability, Serviceability, and Aesthetics and Perceived quality. However, reliability, durability, and serviceability were not used to measure the level of customer‟s satisfaction in Walia beer due to the reason that they cannot be related to the study. The study uses quantitative approach and done different correlation and regression analysis tools. This research is both descriptive and explanatory type research. Both primary and secondary methods of data collection are applied. From the infinite population a sample size was drawn by using Kothari‟s infinite sample size formula and 384 sample sizes were obtained. Both descriptive and inferential statistics have been used to find mean score and to test hypothesis and to investigate research problem, objectives and questions. According to the findings of the study all the five product quality features have shown a significant positive effect on customer satisfaction. The findings of the regression analysis indicate that those five independent variables of product quality feature indicated in R square is .945, where it means 94.5% variation on dependent variable, i.e. customer satisfaction. Person correlation analysis was also conducted to examine the relationship between product quality dimensions and customer satisfaction and the results shows that all the five dimensions of product quality have a strong positive relationship with customer satisfaction. Based on the finding on the research Walia beer should concentrate their attention on developing more and improved Beer that contains all the necessary product quality features for retaining and sustaining their customers by satisfying their unlimited needs and wants.