Abstract:
The main objective of this study was to examine the effect of service quality on customer satisfaction in Ethiopian Electric Utility Ambo Town. Quantitative research approaches, explanatory and descriptive research design were used to investigate the relationship between customer satisfaction and service quality dimensions. Both primary and secondary data were collected from respondents (using questionnaire) and related literatures & books. To select representative respondents, the research used a non- probability sampling technique of convenience sampling. Statistical Package for the Social Sciences (SPSS) version 21 was used to analyze the data and the study had a 100% response rate. The finding shows that responsiveness has the highest mean value of 3.79. The correlation analysis also indicates that all service quality dimensions have strong positive and significant association with customer satisfaction and responsiveness has the highest Pearson correlation coefficient (0.696). As per the regression analysis, responsiveness, reliability, assurance, and tangibility have strong positive and statistically significant effect on customer satisfaction with standard β value of 0.552, 0.313, 0.214, and 0.204 respectively. Although empathy has negative effect on customer satisfaction, it is not statistically significant (β=-0.026, p value 0.447). Therefore; the managers of EEU west Addis Ababa district in general and the customer service department of the service center in particular, should be aware that, responsiveness is the most significant in increasing their customers’ satisfaction
