| Abstract: | The telecommunications industry is experiencing heightened competition from local and global
markets. This paper aimed to analyze the impact of tele-birr service quality and customer loyalty.
Data were collected from 384 tele-birr user respondents of ethio-telecom customers through a
structured questionnaire. The collected data were analyzed with SPSS (Statistical Package for the
Social Sciences, 27.0) was used to analyze the data, and the study had a 96.2% response rate.
Descriptive statistics analysis indicated that most respondents to the tele birr user had an
experience ranging from 3 months to 6 months (42.2%), while only 15.6% of respondents had more
than one year of experience. The finding shows that responsiveness has the highest mean value of
5.07. The correlation analysis also indicates that all service quality dimensions have a strong
positive and significant association with customer loyalty, and responsiveness has the strongest
association with overall customer loyalty (r= 0.811). As per the regression analysis, assurance,
empathy, and reliability have strong positive and statistically significant effects on customer
loyalty with standard β values of 0.637, 0.119, and 0.090, respectively. Although responsiveness
has a positive effect, it is not statistically significant (β=0.084, p-value 0.054), and tangibility has
a negative effect on customer loyalty. It is not statistically significant (β=-0.020, p-value 0.587).
Therefore, ethio telecom in Addis Ababa, the customer service department of the telebirr, should
be aware that assurance is the most significant in increasing their customers’ loyalty. In addition,
the department should further increase its empathy and reliability by properly delivering its
promises about service delivery and problem resolution, working on improving its tangibility and
responsiveness services differ mechanisms such as on update versions to increase further utilize
cutting-edge equipment and technology, periodically assessing the availabilities and
accessibilities of tangibility services and introduces improvements over time. |
