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Critical Factors of Customer Satisfaction in Ethiopian Service Sector

The principal objective of this research is to explore Ethiopian service sector customer satisfaction levels. This research paper reviewed the pertinent literature on services marketing as well customer satisfaction. Then, through structured questionnaire and in-depth personal interviews with 600 Ethiopian telecom, banking and insurance, civil aviation and tourism, and health services customers of both the sexes (300 male and 300 female) in the Addis Ababa region collected the opinions on service interaction, service delivery process, customer complaint handling procedure, overall satisfaction levels and also customers opinion on improvement on service providers ability in the last five years. This study used both quantitative as well qualitative survey research designs. The study measured customer satisfaction levels with recalled service encounters and the method of data collection was convenience type. The data collected was analyzed with the help of Microsoft Excel software packages. Hypotheses were developed based on literature review and applied to empirical data of Ethiopians'. The findings of the analysis showed that 36% customers of Ethiopian service sector were dissatisfied with employees' interaction skills. Furthermore another 47% of the customers were also disappointed with service delivery system and 52 and 61% customers were not pleased with the service recovery process and complaint handling procedure, respectively. And 49% of the customers expressed overall dissatisfaction on the services provided by Ethiopian service sector. Besides 94% respondents robustly acknowledged Ethiopian service sector is improving immensely in providing all kinds of services in the last five years. Because of significant dissatisfaction percentage levels among customers, sector's think tank has the opportunity to seriously evaluate its existing activities, procedures, programs related to service interaction, delivery and recovery process, complaint handling and other areas which crafted unhappiness in the market.