Effects of Service Quality on Customer Satisfaction in Insurance Company (A Case of Selected Insurance Company Providing Life Insurance, Ethiopia)

Abstract

This study looks at how three insurance companies that offer life insurance rate their customers' satisfaction with their services. This study also assesses the connection between customer happiness and service quality, including its dimensions. For the aim of the study, primary data were gathered using questionnaires with a five-point Likert scale that were built with consideration for all aspects of service quality, including functional dimensions, image, technical quality, and price. Data were collected from samples of 308 consumers using the convenience sampling technique, and STATA version 15 was utilized to analyze the data using descriptive and multiple linear regression statistics. The results of this study show that customer satisfaction is positively and significantly impacted by characteristics of service quality such as image, responsiveness, dependability, and technological quality. On the other hand, assurance and cost have a negative and significant effect on consumer satisfaction. Additionally, customer retention and satisfaction in the chosen insurance firms are related to overall service quality. When creating a firm's strategy, attributes like image, responsiveness, reliability, assurance, and technological excellence should be given priority because they allow a company to increase customer satisfaction.

Keywords: customer satisfaction, service quality, and service quality dimensions

DOI: 10.7176/JESD/14-9-01

Publication date:May 31^st 2023