Effects Of Service Quality On Member Satisfaction Of Primary Consumer Cooperatives The Case Of Ambo Town, Oromia Regional State, Ethiopia

Abstract

The major objective of this study is to assess the effects of Service Quality on Member Satisfaction of Primary Consumer Cooperatives; the case of Ambo town, Oromia Regional State, Ethiopia. Dimensions as adopted in SERVPERF model (tangibility, assurance, responsiveness, empathy & reliability), have been utilized as measurement constructs to assess the level of service quality and member’s satisfaction. Both qualitative and quantitative method has been applied to analyze the data collected from the service recipient in the study area. For this study a simple random probability sampling method and Non probability sampling was used. Descriptive statistics such as frequency mean and correlation analysis techniques are applied to analyze background information of respondents. Respondents’ perception and expectation on service quality and member’s satisfaction as well as relationship between service quality dimensions and member’s satisfaction are also analyzed under descriptive statistics. Besides, Multiple Regression Analysis technique was applied to investigate the impacts of service quality dimensions on satisfaction and at the same time test the hypothesis developed. The finding of the study shows that members are satisfied on responsiveness, reliability, empathy and assurance while they are dissatisfied on tangibility. The finding on the base of correlation analysis also implies that the relationship between service quality dimensions and member satisfaction is analyzed and the result shows all service quality dimensions have positive and significant relation with member’s satisfaction. The finding also confirms the service quality dimensions have an impact on member’s satisfaction implying that the higher the quality of service, the higher is the level of member’s satisfaction. From this finding, it can be summarized that primary consumer cooperative should improve its service by mostly focusing on responsiveness and tangibility of service quality dimensions