IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN INSURANCE COMPANIES IN WOLAITA ZONE MBA Thesis BY Dawit Dalga May 2018 Wolaita Soddo University IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN INSURANCE COMPANIES IN WOLAITA ZONE A Thesis Submitted to Department of Management

IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN INSURANCE COMPANIES IN WOLAITA ZONE
MBA Thesis
BY
Dawit Dalga
May 2018
Wolaita Soddo University
IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN INSURANCE COMPANIES IN WOLAITA ZONE
A Thesis Submitted to Department of Management, School of Graduate Studies, Wolaita Soddo University
In Partial Fulfillment of the Requirements for the Degree of
Master in Business Administration
Dawit Dalga
Major Advisor: Dr.PK. AGARWAL
May2018
Wolaita Soddo University
APPROVAL SHEET
WOLAITA SODDO UNIVERSITY
SCHOOL OF GRADUATE STUDIES
As thesis research advisor, I hereby certify that I have read and evaluated this thesis prepared under my guidance by Dawit Dalga Guto titled “Impact of service quality on customer satisfaction in insurance companies: a study conducted on wolaita zone.”I recommend that it be submitted as fulfilling the thesis requirement.

___________________ ______________________________________
Major Advisor SignatureDate
As members of the Board of Examiners of the M.B.A thesis open defense examination, we declare that we have read and evaluated the thesis prepared by Dawit Dalga Guto and examined the candidate. We recommend that the thesis be recognized as fulfilling the thesis requirements for the degree of Masters of Business Administration.

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ChairpersonSignatureDate
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Internal ExaminerSignatureDate
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External ExaminerSignatureDate
Final approval and acceptance of the thesis is contingent upon the submission of final copy of the thesis to council of graduate studies (CGS) through the departmental or school graduate committee (DGC or SGC) of the candidate.

DECLARATION
I, hereby, declare that I have conducted this project titled ‘the impact of service quality on satisfaction’ under the guidance of Dr. P.K. Agrawal, professor, Dept. of Management, College of Business and Economics, Wolaita Soddo University. I declare that this is my original work and has not been copied from any source either at this university or anywhere else.
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Dawit Dalga
Place: Wolaita Soddo
Date: 05/May/2018
DEDICATION
I dedicate this thesis/dissertation manuscript to my mother W/ro Abebech Akale and my wife Memirt Tsigereda Minase for the treatment with affection and love and for their dedicated partnership in the successes of my life.

 
STATEMENT OF THE AUTHORBy my signature below, I declare and affirm that this work entitled impact of service quality on customer’s satisfaction on Wolaita Zone is my own work. I have followed all ethical principles of scholarship in the preparation, data collection, data analysis and completion of this thesis. All scholarly matter that is included in the thesis has been given recognition through citation. I affirm that I have cited and referenced all sources used in this document. Every serious effort has been made to avoid any plagiarism in the preparation of this thesis.

This thesis is submitted in partial fulfilment of the requirement for a degree of master’s in business administration from the School of post graduate studies at Wolaita Soddo University. I declare that this thesis has not been submitted to any other institution anywhere for the award of any academic degree.

Brief quotations from this thesis may be used without special permission provided that accurate and complete acknowledgement of the source is made. Requests for permission for extended quotations from, or reproduction of, this thesis in whole or in part may be granted by the Head of the School or Department or the Dean of the School of Post Graduate Studies when in his or her judgment the proposed use of the material is in the interest of scholarship. In all other instances, however, permission must be obtained from the author of the thesis.

Name: Dawit Dalga Guto Signature: _____________
Date: 5/05/2018
School/Department: Business Administration / Management
LIST OF ABBREVIATIONSCCE
GDP
IQS
IIE
MLR
NIC
NISCO
SSNPRS
SQCS
SQ
RATER
SERVQUAL
SPSS Commercial Code of Ethiopia
Gross domestic products
Insurance quality service
Insurance industry in Ethiopia
Multiple Linear Regressions  
Nile Insurance Company.  
Nyala Insurance Company.  
Southern nation nationalities people’s regional state
Service quality on customer satisfaction
Service quality
Reliability, Assurance, Tangibles, Empathy, Responsiveness 
Service quality measurement 
Statistical package for social science 
ACKNOWLEDGEMENTFirst of all, I praise God for He helped me to pass all the hard moments and reach this level. Secondly, I would like to express my inmost thank to my thesis advisor Prof. P.K. Agarwal (Ph. D) for his unreserved scholarly comments and technical advice; without him, this study would not have been success. My honest thank to Wolaita soddo Town administration for their financial and moral support in all my work here. I would also like to appreciate Mr. Tomas G/Yeses the chairperson of Wolaita soddo Town administration and Mr. Ermias Kumalo for their cooperation in all necessary ideas and materials for this study.
Lastly, it is important to take this opportunity of expressing my indebtedness to all my family members as well as Ato Daniel Guto my younger brother ; Ato Gizachew Samuel for their moral support.

Finally, I want to thanks the Wolaita Soddo University School of Graduate studies Departmentof Management.

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Dawit Dalga Guto
TABLE OF CONTENTS
TOC o “1-3” h z u STATEMENT OF THE AUTHOR PAGEREF _Toc513034322 h VLIST OF ABBREVIATIONS PAGEREF _Toc513034323 h VIACKNOWLEDGEMENT PAGEREF _Toc513034324 h VIILIST OF TABLES PAGEREF _Toc513034325 h XIILIST OF FIGURES PAGEREF _Toc513034326 h XIILISTS OF TABLES IN APPENDIX PAGEREF _Toc513034327 h XIVABSTRACT PAGEREF _Toc513034328 h XVCHAPTER 1: INTRODUCTION PAGEREF _Toc513034329 h 11.1 Introduction PAGEREF _Toc513034330 h 11.2 Background of the Study PAGEREF _Toc513034331 h 11.3 Statement of the Problem PAGEREF _Toc513034332 h 31.4Research Questions PAGEREF _Toc513034333 h 41.5.1 General Objectives PAGEREF _Toc513034334 h 41.5.2 Specific Objectives PAGEREF _Toc513034335 h 51.6 Significance of the Study PAGEREF _Toc513034336 h 51.7. Scope of the Study PAGEREF _Toc513034337 h 61.8. Limitations of the Study PAGEREF _Toc513034338 h 61.9. Organization of the Study PAGEREF _Toc513034339 h 7
CHAPTER 2: REVIEW OF RELATED LITERATURE PAGEREF _Toc513034340 h 82.1 Introduction PAGEREF _Toc513034341 h 82.2 Conceptual Literature Review. PAGEREF _Toc513034342 h 92.2.1 Concepts of Insurance PAGEREF _Toc513034343 h 92.2.2. Definition of service PAGEREF _Toc513034344 h 92.2.3. The Concept of Service Quality PAGEREF _Toc513034345 h 92.2.4. The SERVQUAL Model PAGEREF _Toc513034346 h 112.2.5. Measuring service quality using SERVQUAL model PAGEREF _Toc513034347 h 132.2.6. Factors of Service Quality on Customers’ Satisfaction Level. PAGEREF _Toc513034348 h 142.2.7 The effects of service quality on customers. PAGEREF _Toc513034349 h 172.2.8 Service quality dimensions & the gaps in customer satisfaction PAGEREF _Toc513034350 h 172.2.9. Determinant’s of service quality in the research model PAGEREF _Toc513034351 h 202.2.10. Customer satisfaction PAGEREF _Toc513034352 h 222.2.11. Importance of customer satisfaction PAGEREF _Toc513034353 h 242.2.12. The Relationship between Service quality and customer satisfaction PAGEREF _Toc513034354 h 252.2.13. Customer satisfaction with service quality models PAGEREF _Toc513034355 h 262.2.14 Service quality and Customer Satisfaction (SQCS) Model PAGEREF _Toc513034356 h 292.3. Empirical Review PAGEREF _Toc513034357 h 322.4. Variable Identification and Description PAGEREF _Toc513034358 h 432.5. Conceptual Framework PAGEREF _Toc513034359 h 452.6. Mathematical Model of the study PAGEREF _Toc513034360 h 46CHAPTER 3: RESEARCH METHODOLOGY PAGEREF _Toc513034361 h 463.1 Introduction PAGEREF _Toc513034362 h 473.2. Description of the study area PAGEREF _Toc513034363 h 473.3 Target Population PAGEREF _Toc513034364 h 483.4 Research Design PAGEREF _Toc513034365 h 483.5. Data Sources and Types PAGEREF _Toc513034366 h 493.5.1. Data collection Method and analysis PAGEREF _Toc513034367 h 493.6. Sampling Techniques and Sample Size PAGEREF _Toc513034368 h 493.6.1. Sampling Technique PAGEREF _Toc513034369 h 493.6.2. Sample Size Determination PAGEREF _Toc513034370 h 50Source: (own survey, 2018) PAGEREF _Toc513034371 h 513.7. Method of Data analysis PAGEREF _Toc513034372 h 513.8. Pilot Study Test PAGEREF _Toc513034373 h 523.8.2 Validity of Research Instrument PAGEREF _Toc513034374 h 55CHAPTER 4: DATA ANALYSIS AND INTERPRETATION PAGEREF _Toc513034375 h 584.1. Introduction PAGEREF _Toc513034376 h 584.2. Questionnaire Return Rate. PAGEREF _Toc513034377 h 584.3: Categorization of insurance satisfaction level PAGEREF _Toc513034378 h 594.4. Descriptive statistics analysis. PAGEREF _Toc513034379 h 594.4.1 Descriptive statistics of variables for insurance companies in wolaita Zone. PAGEREF _Toc513034380 h 594.5. Inferential Analysis PAGEREF _Toc513034381 h 604.5.1. Pearson correlation analysis PAGEREF _Toc513034382 h 614.5.2. Normality testing of data PAGEREF _Toc513034383 h 654.5.3. Linear Regression Analysis PAGEREF _Toc513034384 h 654.6. Checking Multy Co Linearity of Independent Variables, Tangibility, Reliability, Responsiveness, ; Empathy. PAGEREF _Toc513034388 h 754.7. Hypothesis testing PAGEREF _Toc513034389 h 77CHAPTER 5: FINDINGS, DISCUSSIONS AND RECOMMENDATIONS PAGEREF _Toc513034390 h 795.1. Introduction PAGEREF _Toc513034391 h 795.2. Findings of research PAGEREF _Toc513034392 h 795.3. Discussions PAGEREF _Toc513034393 h 815.5. Recommendations PAGEREF _Toc513034394 h 845.6. Scope for further researches PAGEREF _Toc513034395 h 85REFERENCES PAGEREF _Toc513034396 h 86APPENDICES PAGEREF _Toc513034397 h 91APPENDIX A: SUMMARY OF REVIEW OF LITERATURE PAGEREF _Toc513034398 h 92APPENDIX B: QUESTIONNAIRE PAGEREF _Toc513034399 h 95APPENDIX C: RELIABILITY TEST FOR THE INSTRUMENT PAGEREF _Toc513034400 h 101
LIST OF TABLESTable No Label Page No
Table 1 Total population 48
Table 2 Target population to whom sample was taken 50
Table 3 Sampling of the insurance company 51
Table 4 Summary of reliability 55
Table 5 Questionnaire returns Rate 58
Table 6 Categorization of insurance satisfaction level 59
Table 7 Descriptive statistics of service quality and customers satisfaction 60
Table 8 Correlation analysis between customers satisfaction 61
Table 9 The extent (effect) size of each independent variable on customers satisfaction 64
Table 10 Normality testing 65
Table 11 Regression model summary SQD 66
Table 12 Analysis of variance in customer satisfaction by service quality 66
Table 13 Regression Coefficient value of independent variables 67
Table 14 Regression model summary SQ 70
Table 15 Analysis of variance in customer satisfaction by service quality Dimensions 71
Table 16 Analysis of variance in customer satisfaction by SQD 71
Table 17 Multy-Colinarity statistics 75
Table 18 Hypothesis testing 77
LIST OF FIGURESFigure No Label Page No
Figure 1 Gap Models of service quality 19
Figure 2 Customer Satisfaction with Service Quality Model 27
Figure 3 McDougall ; Levesque (2000) Customer Satisfaction withService Quality Model 28
Figure 4 SQCS Model 30
Figure 5 Conceptual frame work 45
Figure 6 The Map of Wolaita Zone. 47
Figure 7 Histogram of residuals 67
Figure 8 Assumption of Linearity test of residuals 68
Figure 9 Scatter- plot of regression standard residuals 69
Figure 10 Histogram of residuals 73
Figure 11 Assumption of Linearity test of residuals 73
Figure 12 Scatter- plot of regression standard residuals 74
LISTS OF TABLES IN APPENDIXTable No Labels Page No
Table:A1 Reliability Statistics for Customer satisfaction 92-95
Table: B1 Service Quality 97
Table: B2 Tangibility 97
Table: B3 Reliability 98
Table: B4 Responsiveness 98
Table: B5 Assurance 99
Table: B6 Empathy 99
Table: B7 Customer satisfaction 100
Table: C1 Reliability Statistics for Customer satisfaction 101
Table: C2 Total statistics for Customer satisfaction 101
Table: C3 Reliability Statistics for Service quality 102
Table: C4 Total statistics for Service quality 102
Table: C5 Reliability Statistics for Tangibility 103
Table: C6 Total statistics for Tangibility 103
Table: C8 Reliability Statistics for Reliability 104
Table: C9 Total statistics for Reliability 104
Table: C10 Reliability Statistics for Responsiveness 105
Table: C11 Total statistics for Responsiveness 105
Table: C12 Reliability Statistics for Assurance 106
Table: C13 Total statistics for Assurance 106
Table: C14 Reliability Statistics for Empathy 107
Table: C15 Total statistics for Empathy 107
ABSTRACTInsurance industry should become one part of solution of sustainable economic growth in the future, however, in order to retain and keep more investors and business owners, Insurance companies must have a greater service quality to satisfy and more wide range of different customer satisfactions regarded to insurance service. The objective of this study was investigating the impact of service quality on customer satisfaction in the insurance companies of Wolaita Zone. In order to do this, a causal cross sectional research study was conducted. A sample of 352 customers was selected using cluster sampling technique. For the purpose of the study primary data were collected from customers using likert scale based questionnaire, then the data were analyzed using descriptive statistics and inferentialstatistics. SPSS software 20.00 was used to analyze the primary data. The questionnaires were analyzed using descriptive analysis, Pearson Correlation Coefficient Analysis and Multiple Linear Regressions. The result of the study revealed that out of the five dimensions of the SERVQUAL dimension four i.e., tangibles, reliability, Assurance, empathy and service quality had high significant impact on customer satisfaction in Wolaita zone insurance companies. It was also found out that responsiveness does not have a significant impact on customer satisfaction. On the other hand, Assurance is the most important factor that influences customer satisfaction followed by empathy, tangibles and reliability service quality also has a positive and significant impact on customer satisfaction .Finally the study recommends that to maintain and improve customer satisfaction insurance companies in Wolaita zone ought to focus on predictors of the customer satisfaction such as four service quality dimension (i.e. tangibility, reliability, assurance and empathy) still have a strong impact on the customer satisfaction. Thus these factors should be the center of the strategy that is aiming at improving customer satisfaction.
Keywords:Service quality dimensions, Tangibility, Reliability, Responsiveness, Assurance, Empathy and customer satisfaction.

CHAPTER 1: INTRODUCTION1.1 IntroductionThis chapter presents a general background of the study, Objectives of the study as well as Statement of the problem. The chapter further defines the scope of the study, significance of the study.

1.2 Background of the StudyThe current business environment is become competitive and challenged than before. With multidimensional challenges and demand of globalization, the organizations were forced to re-engineer their products and systems to improve the service quality and remain competitive, (Yasin et al., 2004, Rodie and Martin, 2001).
Customer service is considered as an integral part of any facet of industry and it defines the future of any organization. The rapid advances in technology based systems related to internet were leaded to fundamental qualities in how different organizations interrelated. This applies similarity for relation of an organization with its customer. In different services industries the relationship between customer satisfaction and service qualities have been difficult to identify because services nature is intangible (Hong, Goo et al., 2004 and Nguyen and Leblanc, 2002).

Due to intangible nature of services it is difficult for the firms to analyses how the customers perceive and evaluate the desired outcome of the service quality (Zeithaml, 1981). As customer evaluate their level of satisfaction by experimented the service quality, satisfaction with services is related to conformation or disconfirmation of expectations (Smith and Houston 1982). The issue of highest priority today involves understanding the impact of service quality on profit and other financial outcomes of the organization (Zeithaml et al., 1996).As per Research by Oliver (2009) Organizations were increasingly become customer focused and were driven by customer demands. It is become equally challenged to satisfy and to preserve customer loyalty. It suggests that both service quality and customer satisfaction were two distinct but related constructs. It is particularly true for the services firms where increased level of customer satisfaction results in profit maximization. Therefore experts say that customer satisfaction should be the fundamental principle of all the service firms as it is the key indicator of firm’s performance. As said by Sakthivel et al., (2005) Customer loyalty and customer satisfaction were proved to be the major determinant for long term survival and financial performance of the company (Jones and Sasser, 1995) also customers were considered as final adjudicators to judge the quality level of product and services offered.
So it can be said that the improvements in quality standards bring positive outcomes for the firm. When service firms well understand this fact that continuous improvements in service quality and offerings effects the satisfaction level of customers, they can better allocate resources to attain quality standards in order to meet their client’s expectations. This research mainly focuses on those improvements and processes to manage the process of quality services delivered to the final consumers and examines the relationship between service quality and customer satisfaction.
To get the answers, research is conducted in a service industry (insurance) to gather information from practical life. For this purpose four leaded insurance companies insurance companies found in Wolaita Zone, Southern Region Ethiopia, Medhin Insurance, Nile Insurance, Nyala Insurance, and Nice Insurance, in Wolaita Zone, SNNPRS, and Ethiopia.
Those insurances were leading investment and corporate insurance operating in local area. It is founded in 1960 in Ethiopia and recently operated in around 15 woredas ; included 3 city administrations. Its head office of all companies is situated in Addis Ababa the Capital of Ethiopia. In insurance service companies, the concept of quality holds the main position. The relationship with the customer is based on the promise that customer satisfaction is achieved through provided standard quality of service. The high quality demands on customers end is become prominent due to the fact that high level of service quality leads to sustainable competitive advantage in the competitive business environment (Sureshchandar et al., 2002) It is not surprised to know that quality level of services is the leaded phenomena to plan strategies in the services firms (Khamalah and Ledaraj 2007).

To better understand the concept of quality and satisfaction, we should look into the definitions of the two main concepts of this research customer satisfaction and service quality, which were applied in this study.

1.3 Statement of the ProblemThis study focused on the impact of service quality of customers satisfaction in the insurance companies of Ethiopia, According to Shifera (Thesis AAU, 2011), in the insurance industry, offered quality services is very important to create closer relationship with the entire customers. Quality of services has the power to create customer satisfaction. On the other hand poor quality of services results in customer dissatisfaction and customer defection by going to other competitors.

According to Collart (2010), one of the determinants of success of a firm is how the customers perceive the resulted service quality, as this is the key driver of perceived quality. It is the perceived value which determines customer satisfaction. Many firms included insurance industries begin to track their customers’ satisfaction through measured their level of service quality perceived by their customers. When service interactions were not properly controlled and handled, or not even handled at all, the outcome is poor perception of service quality and customer dissatisfaction. Therefore, delivered quality service has become one of the most important qualities to gain superior customer satisfaction, which results in company profitability (Kotler, 2003).

Offering quality services is very significant to create closer attachment with the entire customers. The issue of quality service is become a global concern that demands continuous improvement to fit the unbalanced environment and changed customer needs. Quality of services has the authority to create customer satisfaction and make them faithful.

On the other hand deprived quality of services consequences in customer displeasure and customer defection by going to other rivals, reality one satisfied customer tells only to one person but a dissatisfied customer tells nine other people about the problem. Created customers satisfaction includes rapid and effective response and solutions to their needs and desires as well as building and maintained good relationships.
A business can achieve success only by understanding and fulfilled the needs of customer. Hence, customer satisfaction plays an important role for the success and continuous existence of the company. There is a great deal of research work has been found recently concerned customer satisfaction and concepts and theories were discussed on this topic also. Supporters of customer satisfaction were mainly emphasize on the importance of give service According to specifications, and handled customer grievances in a good quality to achieve their organizational goals.

Now days the competition is tough and stiff, where a competition is cut throat, the issue of service quality and customer satisfaction were priority agenda of a business and the ever unsatisfied and increasing need and want of customer for better service day to day what determine the success and existence of the company in the universe is service quality. According to Almossawi (2001) , service quality is very essential in insurance industry due to it provide high level of customer satisfaction and a key competitive advantages .Since customer satisfaction is also based upon the level of service quality provided by the service provider and service quality acts as a determinant of customer satisfaction. So what is expected from company is that total quality perspective is all strategic decision should be “Customer driven” which means the company must show constant sensitivity of emerging customer and market requirements.

Previous study (Meaza, 2016) which were conducted on insurance company in the study area mainly focus on predictors of life insurance company in Wolaita zone. However, it is important to see the impact of service quality on customer satisfaction. Besides this and to the best knowledge of the researcher, there is no research done on impact of service quality on customer satisfaction in the study area so far. Therefore, this is the rational for researching this problem.Therefore, the purpose of this research is to investigate and analyse the impact of service quality on customer satisfaction in insurance companies on Wolaita zone and to test the significance influence of service quality dimensions on customer satisfaction.

Research Questions1. What is the effect of service quality on customer satisfaction in insurance companies in Wolaita Zone?
2. What is the impact of service quality dimensions on customer satisfaction customer satisfaction in insurance companies in Wolaita Zone?
1.5 Objective of the Study1.5.1 General ObjectivesThe general objective of this study is mainly focuses on indirectly impacting factors on Customer Satisfaction in insurance companies.

1.5.2 Specific Objectives1. To analyze the effect of service quality on customer satisfaction of insurance companies in Wolaita zone.

2. To examine the impact of service Quality dimensions on customer satisfaction in insurance companies in Wolaita Zone.

1.6. Research Hypothesis
  Hypotheses for this study were developed based on the studies conducted by various researchers and different variables identified.Based on the reviewed literature and preliminary survey of the study, the following hypotheses were developed. 
H1: Service quality has a significant impact on the customer’s satisfaction in insurance company in Wolaita zone.

H2:  Tangibility has a significant impact on the customer’s satisfaction in insurance company in Wolaita zone.

H3: Reliability has a significant impact on the customer’s satisfaction in insurance company in Wolaita zone,  
H4: Responsiveness has no impact on the customer’s satisfaction in insurance company in Wolaita zone.

H5: Assurance has a significant impact on the customer’s satisfaction in insurance company in Wolaita zone.

H6:  Empathy has a significant impact on the customer’s satisfaction in insurance company in Wolaita zone.

1.6 Significance of the StudyThe study was vital in different ways to managers, policy makers and stakeholders, to policy makers like government agencies such as the National Bank of Ethiopia, the findings and results of this study was provide helpful insights and a more reliable guide to monitor the impact of the operations of Ethiopia’s Insurance Companies. To the management of Wolaita area insurance companies, like Medhin Insurance, Nile Insurance, Nyala Insurance, Nice Insurance, insurance companies, the findings and results were provide a more reliable scientific measure and perspective for evaluated the level of their customer satisfaction with the services they convey.
To other stakeholders like investors, employees, pressure groups, consumer associations, among others, the study will provide helpful information that were allow them to provide useful suggestions to the improvement in service delivery of their respective insurance companies which is found in Wolaita Zone. In addition, the study may help to other researchers as an input for further studies on impact of service quality on customer satisfaction and other related research problems.
1.7. Scope of the StudyThe research is delimited to the data obtained from the customers of the insurance companies that are operating in Wolaita zone.In geographical coverage, insurance companies were selected for the purpose of the study, and practically the study was focus on customers’ satisfaction with quality of service at insurance companies in the study area. Methodologically casual research design was used in Quantitative research approach to conduct the study.

1.8. Limitations of the StudyThere are some of the limitations to this study were as it employed the sample survey method. Sampling error in which the employed sample size may not be adequate to represent the population.

When the researcher conducting the research, the managers of insurance companies has not given genuine information of the research questionnaires’ to fill.  Because of they are indecision to miss their customers When they fill the questionnaires’ almost with strongly disagree, so it needed the researcher to show extraordinary patience and commitment to overcome this challenge needed is that put its own negative impact to accomplish the research as needed.

The outcome of the study will mainly dependent on the individual responses of the respondents who participate in the study. So the result may not be generalized beyond the specific population.
1.9. Organization of the StudyThis study has five main chapters. Chapter one is about the general introduction covered the background of the study, the statement of the problem, the objectives, significance, scope and how the research is organized. Chapter two is mainly concerned with the review of related literatures on customer satisfaction determinants. Chapter three provides the methodologies that were applied to achieve the research objectives included data collection & analyzed methods. Chapter four covers the analysis and presentation of data. This chapter discusses the result obtained in accordance with the research questions. Finally, chapter five deals about findings, conclusions of the study and recommendations emanate from the researcher.

CHAPTER 2: REVIEW OF RELATED LITERATURE2.1 IntroductionThis chapter discusses the literature review. Related work and theories of different authors is discussed to explain the purpose and to answer the research problems of the study. It starts with analyzed the effect of service quality on customer satisfaction by described the relationship between the both constructs. The relationship is discussed by used Oliver’s and McDougall satisfaction/ service quality models. Further it describes the improvement techniques to deliver high quality services to the customer in the service organization under three heading (Developed service improvements strategy, managed the workforce, closed the Gaps). The emergence of modern insurance in Ethiopia is traced to the Bank of Abyssinia which is established in 1905 as the first Ethiopian Bank. The Bank had been acted as an agent for foreign insurance companies to underwrite fire and marine policies. Hailu, (2007)
There were a good number of foreign insurance companies undertake insurance business in Ethiopia through agents prior to 1951. The first domestic insurance company, namely, Imperial Insurance Company of Ethiopia Ltd is established in 1951.Therafter, until 1960 one domestic and numerous foreign insurance companies represented by agents were operated insurance business in Ethiopia. Hailu, (2007)
The 1960 witnessed the establishment of local insurance companies. Domestic private insurance companies started to increase in number during this period.
The Provisional Military government of Ethiopia passed a decision on January1, 1975 to transfer the ownership of insurance company and insurance companies to the government. Consequently, thirteen private insurance companies that were operated insurance business by that time was all nationalized and Ethiopian Insurance Corporation is established as an autonomous public enterprise effective January 1, 1976.

The Ethiopian Insurance Corporation had been a monopoly in the Ethiopian insurance industry for 19 years, i.e. from 1914 up to 1976, followed the collapse of the Dergue Regime in 1991, the economic policy of the country changed to a market economy. As per the proclamation 86/1994 investment in insurance business is restricted to domestic investors only. Consequently, domestic private insurance companies were been established and currently there were 17 insurance companies in the country. Hailu, (2007)
2.2 Conceptual Literature Review.2.2.1 Concepts of InsuranceBasically, insurance services was a business that is to accepting insurances from the contract between an insurer and the insured where by the insurer undertakes to indemnify the assured against losses, which may result from the occurrence of specified events within specified periods. General insurance business can be subdivided into: motor, fire, accident, oil and gas, contractors’ all risks and engineering risks; marine and credit insurance, bond and surety ship etc. This is a contract between the assurer and the assured whereby the assurer undertakes to pay benefits to the policy holder on the attainment of a specified event.

2.2.2. Definition of serviceKotler defines service as “any intangible act or performance that one party offers to another that does not result in the ownership of anything” (Kotler & Keller, 2009, p. 789). Services are the production of an essential benefit, either in its own right or as a significant, not incidental, element of a tangible product, which through some form of exchange satisfies an identifiable customer need.(Miller and Layton,2000, p.661). In all, service can also be defined as an intangible offer by one party to another in exchange of money for pleasure.

2.2.3. The Concept of Service Quality The concept of service quality has been defined as the consumer’s outlook or judgment of the overall excellence or superiority of the service. Perceived service quality results from comparisons by consumers of expectations with their perceptions of service delivered by the suppliers (Lewis et al., 1994; Takeuchi and Quelch, 1983; Zeithaml, 1988). It is argued that the key to ensuring good service quality perception is in meeting or exceeding what customers expect from the service. Thus, if perception of the actual service delivered by the supplier falls short of expectation, a gap is created which should be addressed through strategies that affect the direction either of expectations or perceptions, or both (Parasuraman et al., 1985; Zeithaml et al., 1990).

Expectation of Customers are beliefs about a service that serve as standards against which service performance is judged (Zeithaml et al., 1993); what customers think a service provider should offer rather than what might be on offer (Parasuraman et al., 1988). Expectations are formed from a variety of sources such as the customer’s personal needs and wishes (Edvardsson et al., 1994), the customer’s personal philosophy about a particular service, by promises (staff, advertising and other communications), by implicit service promises (such as price and the Tangibility associated with the service), by word-of-mouth communication (with other customers, friends, family and experts), as well as by past experience of that service (Zeithaml and Bitner,1996).

Customer expectations play an important role in creating satisfaction. Customers’ expectations are consumers? beliefs about the performance a product based on prior experience and communications. When companies fall short of those expectations, customers are dissatisfied. When companies exceed them, consumers are delighted. In both cases, customers are emotionally charged by their experience the delighted are more likely to be loyal, and the dissatisfied are more inclined to switch.( Gilbert, D. H. and Gary, L. F.(1999) .

Customers’ expectations are based on personal experience, observation of others, company actions, advertising, and promotion. Each time a company delights a customer, new expectations are created. Similarly, with each change in product, price, promotion, or distribution, expectations can be affected. A major challenge for companies is to create marketing strategies which give buyers high but realistic expectations. Companies must continue to do better in light of competitor? efforts and rising consumer expectations. (Gilbert, D. H. and Gary, L. F. (1999)
According to Parasuraman et al. (1991), companies can get their competitive advantage by using the technology for the purpose of enhancing service quality and gathering market demand. For decades, many researchers have developed a service perspective (Zeithaml, 2009, Ramsaran and Fowdar, 2007). Chang (2008) describes that the concept of service quality should be generally approached from the customer’s point of view because they may have different values, different ground of assessment, and different circumstances.

Parasuraman, Zeithaml and Berry (1990) mention that service quality is an extrinsically perceived attribution based on the customer’s experience about the service that the customer perceived through the service encounter. According to the work of Kumra (2008), service quality is not only involved in the final product and service, but also involved in the production and delivery process, thus employee involvement in process redesign and commitment is important to produce final tourism products or services.

Another research study on service quality is presented by Grönroos (2007) who focuses on a model that is a comparison between customer expectations of the service and their experience of the service they have received before. This model is named “total perceived service quality”. As he emphasizes on what customer is really looking for and what they evaluate, the service quality is based on two dimensions.

The first dimension is the Service quality in the management and marketing literature is the extent to which customers’ perceptions of service meet and/or exceed their expectations for example as defined by Zenithal et al. (1990), cited in Bowen & David, 2005, p. 340). Thus service quality can intend to be the way in which customers are served in an organization which could be good or poor.
Parasuraman defines service quality as “the differences between customer expectations and perceptions of service” (Parasuraman, 1988). They argued that measuring service quality as the difference between perceived and expected service was a valid way and could make management to identify gaps to what they offer as services. The aim of providing quality services is to satisfy customers. Measuring service quality is a better way to dictate whether the services are good or bad and whether the customers will or are satisfied with it.

Service quality is the expected and perceived quality of all the services an organization offers. Quality is necessary for organizations that sell physical products that are manufactured as well as organizations that only sell services. Without quality, it is nearly impossible to achieve customer satisfaction. A quality good or service performs precisely according to specifications that will satisfy customers. Consequently, quality contributes to customer satisfaction. Gilbert D.H. and Gary L. F. (1999).2.2.4. The SERVQUAL ModelParasuraman et al. (1988) released a widely distinguishes five set of service quality dimension (SERVQUAL). This service quality dimension was amongst the frequently applied and quoted elements in the writing works of service quality (Othman & Owen, 2001). These dimensions namely tangibility, reliability, responsiveness, assurance and empathy have been applied in many service firms to measure quality performance.

Tangibility relate to material characteristics like gadgets, equipment and how staffs carry themselves (Seo, 2012).This component deals with the existence of the physical facilities and the perceived quality of the materials, personnel and equipment used by the service giver (Kandampully, 2007).
Reliability is defined as the dependability, consistency and accuracy with which the service is performed by the provider (Kandampully, 2007). It is about the business keeps its word. It is the ability to perform the promised service dependably and accurately or delivered its promises. (Zeithaml et al., 2006 p.117).

Responsiveness relates to the zeal in the service personnel to serve customers in a well-timed, effective fashion and it incorporates elements like cooperativeness, kindliness and tenderness of the service stuff (Kandampully, 2007). It is the desire of the service giver to be supportive and quick in rendered the service (Prayuhda & Harsanto, 2014).
Assurance is the extent to which the service personnel stimulate faith and credence among the customers of the firm (Kandampully, 2007). It is the employees. Knowledge and courtesy and the service provider’s ability to inspire trust and confidence.(Zeithaml et al., 2006). If the customers don’t find the service and staff of the company pleasant, the chances of them returned back was slim (Delgado-Ballester, 2004). 
Empathy has to do with the cared and individualized attention. Granted to customers besides the degree of understanding personnel manifests in relation to customer needs (Kandampully, 2007). It has been ascertained to be more desirable and significant in magnified the quality of service in industries where established relationships with customers and clients guarantees survival (Andaleeb& Conquality, 2006).
The likelihood of clients returned back to a company provided they were give special care and attention is very high (Delgado-Ballester, 2004).2.2.5. Measuring service quality using SERVQUAL modelZeithaml and Bitner (2003) stated that in order to manage service quality, it is important to manage the gaps between expectations and perceptions on the part of management, employers and customers. The most important gap (Gap 5) was that between customers’ expectations of service and their perceptions of the service actually delivered. So by referring to the gap model, it was noted that a service marketer must lessen the customer gap (Gap 5). In order to do so, the service provider must first try to lessen the other four gaps (Gap 1, 2, 3, and 4) within the organization that inhibit delivery of quality service, as each of these elements contribute towards the expectations and perceptions of customers. Subsequent to the gap model, Parasuraman et al. (1985) designed the SERVQUAL instrument to identify and measure the gaps between customers’ expectations and perceptions of service quality.
Parasuraman et al. (1985) defined service quality in 10 major dimensions that consumers use in forming expectations about, and perceptions of, services. In later research, Parasuraman et al. (1988) revised and defined the service quality into five dimensions reliability, responsiveness, assurance, empathy, and tangibles.The SERVQUAL is popularly used by many studies of service quality. It is a multiple-item scale developed to measure service quality by computing the differences between consumers’ desired expectations and their perceptions of a firm’s performance.

The instrument has been designed to be applicable across a broad spectrum of services. An array of factors or determinants has been identified in the literature for measuring service quality. For instance, Sachev and Verma (2004) measure service quality in terms of customer perception, customer expectation, customer satisfaction, and customer attitude. Despite the numerous models for measuring service quality, Nyeck et al. (2002) admit that the SERVQUAL model remains as the most complete attempt to conceptualize and measure service quality. The model is extensive and widely used to measure service quality in the literature. Therefore this study adopts the SERVQUAL dimensions to measure service quality in Merchant Bank Ghana Limited.
The SERVQUAL dimensions: tangibles, reliability, responsiveness, assurance and empathy were the basis for service quality measurement (Parasuramanet al., 1988; Zeithamlet al., 1990).And also SERVQUAL model identify a gap which maintains that satisfaction is related to the size and direction of disconfirmation of a person’s experience vis-à-vis his/her initial expectations (Churchill ; Surprenant, 1982; Parasuraman, Zeithaml; Berry, 1985; Smith ; Houston, 1982).

2.2.6. Factors of Service Quality on Customers’ Satisfaction Level. Service Quality of Customers generally relied upon the external factors included brand image to determine and observe the service quality (Grönroos, 1984). Service quality is the main factor among the customers through which they can easily differentiate other identical insurance companies (Schleseder & von der Schulenburg, 1991). The relationship marketed increases the worth of service package; it is not an additional tool for have a solid and up-to-date service quality (Lawrence A. Crosby et al., 1987). The core service quality is another contender to determine the customer satisfaction level (V.A. Zeithaml & Bitner, 1996).
The service quality and the satisfaction were the two different paradigms and there is a spontaneous relationship between these two different constructs. Moreover the satisfaction level is also influenced by the customer perceptions about the service quality (McDougall & Levesque, 2000). Chiu (2002); Sureshchandar et al. (2001) reveals that the traditional methods of analyzed the quality of goods were insufficient to track service quality. This is because the service quality has three different characteristics which include: intangibility, heterogeneity and inseparability, service quality is the approach which results with the comparison between what customers expect and what he really gets after acquired the specific service.
In simple words the service quality is a combination of customer expectation regarded the services and after acquired those services what he actually experienced the quality service (Oliver, 2010; Valarie A Zeithaml et al., 1996, There is a debate in between the researchers regarded the dimensions of the service quality, some researchers quoted that there might be two dominant parts of service quality, one is the outcome or central characteristics (prescribed) of the service and the other one is the relational aspect (customer – employee relationship) of specific service (Berry, 1995; Valarie A Zeithaml et al., 1996).
The SERVQUAL scale can help in evaluated the customer perceptions and expectations about the service quality in the most of the service industries (A Parasuraman et al., 1988). Service quality and the customer satisfaction have a clear effect on the customer’s behavioral intentions, perceived service quality act as an originator of satisfaction and high level in the perceived quality of service increases the customer satisfaction, bought intentions moreover, decreases the price sensitivity (González et al., 2007).The better after sales services quality have positive impact on the customer satisfaction, loyalty and repetitive sales (Taylor, 2001).
A study conducted by (Stafford ; Wells, 1996) on service quality of the assessment claims and finds that the customer’s expectations were exceeds than their perceptions of services performance. Many service organizations were collected customer satisfactions indexes for managerial decision made purposes as the quality scorecards were the major predictors of customer satisfaction (Lawrence A. Crosby et al., 1987; Taylor, 2001).
The perceived service quality has a significant relationship with the customer’s satisfaction to obtain the insurance service (Arora ; Stoner, 1996). It is found that the quality of services beed offered by the service industries is evaluated in the same manner by both professional and retail customers (Westbrook ; Peterson, 1998). The males and the females perceive the service quality in an identical quality (Stafford et al., 1996). The insurance customers were unhappy with the insurance industry as the agents did not talk to them on average once a year (Chow-Chua ; Lim, 2000).

Among the six dimensions of the service quality include; Assurance, Tangibles, Personalized Financial Planned, corporate image, and relationship with agents, corporate image, competence and the customer expectations guide them to analyses the service quality and the manager do not ignore this factor at the time of policy made in the rehabilitation of their quality programs (Mehta et al., 2002). Tangibility have no impact on the customer satisfaction levels in insurance industry however the customer satisfaction and on the customer repurchase intention is highly influenced by the word of mouth (WOM). However, customer satisfaction has no direct relation on the customers repurchase intention (Tsoukatos ; Rand, 2006).
The quality of any service at any time is determined by both the aspects of technical as well as functional quality. The technical quality is related to the satisfaction level which is obtained after the use of the service, whereas the functional quality is related to the experiences and customer’s feelings to the services obtained, so that in order to analyze which quality is better, the user would judge the process of service delivery has been enjoyable experience, So, it would be treated as functional quality and as a result the satisfaction achieved by this pleasant service experience would be considered as technical quality (Gummesson, 1991).
The service quality literature distinguishes amongst the observed as well as actual service quality. The actual service quality is identical to objective quality which includes the service failures, number of defects and in accordance with the customer’s specification, however, the perceived service quality is subject to the customer’s own conclusions and evaluations about the quality (Arora et al., 1996). The subjective nature of service quality make it hard to be gauged, however, the managers use their expectations which they compare to the perceptions of the consumer’s in order to measure the overall service quality (A Parasuraman et al., 1988; Parasuraman et al., 1985). The structure of the service delivery is intangible, co-productive and non-repetitive (Tenner ; DeToro, 1992).
The acquisition of services need the mutual participations of the seller and buyer with the mixture of personal experiences, this process is evaluated individually and was modified with needs, goals and expectations (Beaven; Scotti, 1990). Evaluated service quality in the service sector context is not easy, in service industries the evaluations regarded the organization is subjected to attain the organizational goals, increased firm’s good were, increased employees motivations and retention (Czepiel et al., 1985). In order to evaluate the customer’s perceptions about service quality, there were 10 determinants which can be used in SERVQUAL scale the reliability measures deals with the service seller’s performance and steadiness.

According to the buyer’s prospects and the service seller’s receptiveness and their readiness to respond timely, skillfully and with sound knowledge of services, accessibility is the provider’s availability to execute services being offered by them (Anantharanthan Parasuraman et al., 1985). The SERVQUAL model is further reduced to five elements which include tangibles, reliability, assurance, empathy and responsiveness, empathy and assurance contains the original items like credibility, communication, security, competence, knowing the customer and understanding with the customer (Anantharanthan Parasuraman et al., 1988).

As SERVQUAL development, it has helped the foundation of numerous other studies to measure the quality of service different settings (J Joseph Cronin Jr ; Taylor, 1992; Sureshchandar et al., 2001; Tsoukatos et al., 2006, 2007). One of the most often used measures is the SERVQUAL based on extensive research in basic determinants of perceived service quality (Parasuraman, Berry et al. 1985; Parasuraman, Berry et al. 1988; Zeithaml, Parasuraman et al. 1990; Parasuraman, Berry et al. 1991; Parasuraman, Berry et al. 1993; Parasuraman, Berry et al. 1994).
Different models have been developed measured service quality (Stafford, 1996; Bahia and Nantel, 2000). The SERVQUAL model of Parasuraman et al. (1988) proposed a five dimensional construct of perceived service quality- tangibles; reliability, responsiveness, assurance and empathy- with items reflected both expectation and perceived performance.

2.2.7 The effects of service quality on customers.Service quality can be demarcated as the difference between customer’s expectations of service performance earlier to the service encounter and their perceptions of the service received (Asubonteng et al., 2014).
Quality service has a positive effect on the bottom line performance of a firm and thereby on the competitive advantages that could be gained from an improvement in the quality of the service offered so that the perceived service exceeds the service level desired by customers (Caruana, 2012; Chumpitaz, 2014). Performed according to the desired level is critical to the entire organization. Monitored, controlled and improved the quality, the service delivery issue is essential to the firms’ market orientation.
2.2.8 Service quality dimensions ; the gaps in customer satisfactionWhen evaluated service quality, consumer examines five dimensions .tangibles, reliability, responsiveness, assurance and empathy (Parasuramanet al, 2015). For this study one additional dimension called convenience is considered.

According to Bahia and Nantel (2000) disregarded responsiveness in their research, claimed a lack of reliability even though they recognized SERVQUAL and all of its dimensions as the best known, most universally accepted  scale  to  measure perceived service quality. Responsiveness is also one of the original dimensions not modified by Zeithaml, et al (1988).Assurance: Knowledgeable and courteous employees who inspire confidence and trust from their customers establish assurance.
In insurances service quality studies by Anderson, et al (1976), it is determined that a substantial level of trust in the insurances and its abilities is necessary to make the consumer comfortable enough to establish an insurances relationship. Parasuraman, et al (1991) included actions by employees such as always courteous behavior instills confidence and knowledge as prime elements of assurance. Assurance replaces competence, courtesy, credibility, and security in the original ten dimensions for evaluated service quality (Zeithaml, et al, 1988). 
Empathy is the cared and personalized attention the organization provides its customers. Individual attention and convenient operated hours were the two primary elements included by Parasuraman, et al (1991) in their evaluation of empathy.
The degree to which the customer feels the empathy is because the customers to either accept or reject the service encounter. Empathy replaces access, communication, and understandings the customer in the original ten dimensions for evaluated service quality (Zeithaml, et al, 1988).it also stated that satisfaction is the customers’ evaluation of a product or service in terms of whether that product or service has met their needs and expectations.
    As customers feel more satisfied with services, they were more likely to repurchase and encourage others to use the products or services by word-of-mouth. Therefore, this fully interprets the focus of my study in terms of quality service expectation or perception and customer satisfaction, and distinguishes the gaps:
i) Gap 1: Customer expectation – management perception gap: Service firms may not always understand what features a service must have in order to meet customer needs and what levels of performance on those features were needed to bred deliver high quality service. These results to affect the quality customers evaluate service quality.

ii) Gap 2: Management perception – service quality specification gap: This gap arises when the company identifies in the customers in but the means to deliver to expectation does not exist. Some factors that affect this gap could be resource constraints, market conditions and management indifference. These could affect service quality perception of the customer.

iii) Gap 3: Service quality specifications – service delivery gap: Companies could have guidelines for performed service well and treated customers correctly but these do not mean high service quality performance is assured. Employees play an important role in assured good service quality perception and their performance cannot be standardized. This affects the delivery of service which has an impact on the quality customers perceive service quality.

The two of the dimensions of the service quality, which includes core service quality and relationship quality, has their influence on the overall customer’s satisfaction (Butcher et al., 2003). The prior studies reveal that the increase in service quality and enhanced the relationship marketed were the basic tactics to satisfy the customers in the services context (Moriarty et al., 1983).

Past experience
Personnel need
Word of mouth

Expected service

Gap 5

Perceived service

Gap 1
Gap 3
Service delivery

External communication
Gap 4

Service quality specification

Gap 2

Management perception of customer expectation

Fig 1: Gap Models of service quality
Source (Parasuraman et al., 2011. Curry, 2010, Luk and Layton, 2012) conceptual of service quality and its implication. 
iv) Gap 4: Service delivery–external communications gap: External communications can affect not only customer expectations of service but also customer perceptions of the delivered service. Companies can neglect to inform customers of special efforts to assure quality that were not visible to them and this could influence service quality perceptions by customers.

v) Gap 5: Expected Service – perceived service gap: From their study, it showed that the key to ensured good service quality is meeting or exceeded what customers expect from the service and that judgment of high and low service quality depend on how customers perceive the actual performance in the context of what they expected.

The SERVQUAL dimensions: tangibles, reliability, responsiveness, assurance and empathy were the basis for service quality measurement (Parasuraman et al., 1988; Zeithamlet al., 1990).

2.2.9. Determinant’s of service quality in the research modelAn arrangement of factors has been identified in the literature for determining service quality, For instance, Sachev and Verma (2004) measure service quality in terms of customer perception, customer expectation, customer satisfaction, and customer attitude. Despite the numerous models for measuring service quality, Nyeck et al. (2002) admit that the SERVQUAL model remains as the most complete attempt to conceptualize and measure service quality. The model is extensive and widely used to measure service quality in the literature.

Therefore this study adopts the SERVQUAL dimensions to measure service quality on customer’s satisfaction in insurance company in Wolaita Zone.

Service quality
Service quality involves more than the outcome quality the methods and manner by which the service is delivered were of great importance. The mission for service quality has been an essential strategic component for firms attempted to succeed or survive in today’s competitive environment (Munusamyet al, 2008)
Tangibility
The first primary dimension of the proposed model is tangibility Quality. The tangibility encompasses the appearance of the company representatives, facilities, materials, and equipment as well as communication materials. The condition of the physical surroundings is seen as tangible evidence of care and attention to detail exhibited by the service provider (Fitzsimmons & Fitzsimmons, 2001). Davis et al. (2003) summarize Tangibility as the physical evidence of the service.

Tangibility would include those attributes pertained to physical items such as equipment, buildings, and the appearance of both personnel and the devices utilized to communicate to the consumer. Bitner (1992) presented her conceptual framework for examined the impact of physical surroundings as it related to both customers and employees.
Berry and Clark (1991) provided validation of the physical appearance on the consumer’s assessment of quality. With the research by Bitner (1990), it is not that physical appearance might influence the consumer’s level of satisfaction. Tangible is one of the original dimensions that were not modified by Zeithaml, et al (1988).

Reliability
The reliability and consistency of performance of service facilities, goods and staff is seen as important (Johnston, 1997). This includes punctual service delivery and ability to keep to agreements made with the customer. According to Fitzsimmons and Fitzsimmons (2001), reliability is the ability to perform the promised service both dependably and accurately with error free.

Reliability relates to the personnel’s ability to deliver the service in a dependable and accurate manner. Numerous researchers, included Garvin (1987) found that reliability tends to always show up in the evaluation of service.
According to Parasuraman, et al (1988) indicated that reliability normally is the most important attribute consumers seek in the area of quality service. It is also determined by Parasuraman, et al (1991) that the conversion of negative worded to positive worded as suggested by Babakus and Boller (1991) and Carman(1990) increased the accuracy of this dimension. Negative worded in the request for a customer response caused the customer to misinterpret this particular determinant. Ilker (1995) found that if there is an adequate delivery of the basic level of service, then peripheral performance leads consumers to evaluate the service encounter as satisfactory. Reliability is one of the original dimensions not modified by Zeithaml, et al (1988).

Responsiveness
Johnston (1997) describes responsiveness as the speed and timeliness of service delivery. This includes the speed of throughput and the ability of the service to respond promptly to customer service requests, with minimal waiting and queuing time.

Fitzsimmons and Fitzsimmons (2001) argue that when the customer is kept waiting for no apparent reason creates unnecessary negative perceptions of quality. On the other hand, the ability for the bank to recover quickly when service fails and exhibit professionalism also create very positive perceptions of quality. Responsiveness: The desire and awareness to assist customers and deliver prompt service makes up the dimension of responsiveness. Parasuraman, et al (1991) include such elements in responsiveness as telling the customer the exact time frame within which services is performed, promptness of service, awareness to assistance, and never too busy to respond to customer requests.
Assurance
This considers the knowledge and courtesy of employees as well as their ability to convey trust and confidence. The assurance dimension includes the following features: competence to perform the service, politeness and respect for the customer, effective communication with the customer and the general attitude that the server has the customer’s best interest at heart (Fitzsimmons & Fitzsimmons, 2001).

Empathy
 According to Chase et al. (2001), empathy is the provision of caring, individualized attention to customers. Fitzsimmons and Fitzsimmons (2001) posit that empathy includes approachability, sensitivity, and effort to understand the customer’s needs. Johnston (1997) describes empathy as the ability to make the customer feel welcome, particularly by the contact staff.
Parasuraman et al., (2014), later developed the SERVQUAL model which is scale developed to assess customer perceptions of service quality in service and retail businesses. The scale decomposes the concept of service quality into five constructs as follows: Tangibles, Reliability, Responsiveness, Assurance and empathy. It bases on captured the gap between customers’ expectations and experience which could be negative or positive if the expectation is higher than experience or expectation is less than or equal to experience respectively.
2.2.10. Customer satisfaction Customer satisfaction is an appealing straightforward concept that readily lends itself to evaluation. However, upon further consideration it can be appreciated as a complex and multifaceted concept that has attracted enormous attention from both the academic and practitioner communities, not least because it is recognized as being of great significance to the well-being of individuals, firms and the economy as a whole. (Ennew, Christine; Waite, Nigel. (2007).

Satisfaction is generally recognized as a pleasurable outcome, „a desirable end state of consumption or patronization? (Oliver, 1997, p 10). Precise definitions of satisfaction vary, but common themes emphasize that it is a customer’s judgment of the consumption experience formed through some kind of psychological process that involves some form of comparison of what was expected with what was received.
This does not preclude the possibility that interim judgments of satisfaction can be made (i.e. part way through the consumption process), and also allows for the possibility that satisfaction judgments may be made after specific transactions or in relation to an accumulated series of transactions. For example, a customer may form a satisfaction judgment relating to a specific encounter with a financial adviser and a satisfaction judgment relating to the overall relationship with that adviser.
Similarly, consumers may form satisfaction judgments about specific attributes of a service (e.g. the responsiveness of staff, the amount of information provided, branch opening hours, etc.) or about the service overall. 
The term “fulfillment” is commonly used in discussions of satisfaction. However, there is a danger in interpreting such a term too narrowly rather than thinking of satisfaction as simply meeting basic customer requirements, there is an increasing tendency to see satisfaction as being concerned with positive, pleasurable experiences. Some commentators go a stage further and suggest that marketers should go beyond satisfaction and instead focus attention on „delighting? customers (Berman, 2005).

Satisfaction will involve a positive experience and the delivery of a service that matches (or possibly exceeds) customer expectations; delight goes a stage further, delivering beyond expectations and generating a stronger emotional response.

What is evident in most discussions of satisfaction (or even delight) is that consumer judgments are made by comparing the service that is experienced against some pre-existing standard. One of the commonest bases for comparison is that of perceptions against expectations.
This is commonly referred to as the Disconfirmation Model of Satisfaction. In simple terms, when perceptions are less than expectations the result is a negative disconfirmation, resulting in a negative evaluation and a lack of satisfaction. Confirmation of expectations or a situation of positive disconfirmation (where performance exceeds expectations) will result in a positive evaluation, usually satisfaction but perhaps also delight. There are clear similarities between this perspective on customer satisfaction and the idea that service quality is derived from the gap between expectations of what should be received and perceptions of what is actually received.
The key difference arises in the way in which expectations are specified. In the case of service quality, the starting point for a comparison is some notion of I dealexpectations (what I should get); in the case of customer satisfaction, the starting point is predicted expectations (what I will get). Expectations provide only one comparison standard, although probably the most commonly used. Other comparison standards that may be relevant in satisfaction judgments include customer needs and a sense of what is fair/reasonable (equity theory).

A significant amount of marketing research is dedicated to measuring customer satisfaction and customer loyalty, but especially customer satisfaction. Satisfaction ratings are major indicators of an organization’s competitiveness. Today, every extremely successful company makes a rigorous effort to satisfy customers. The race to beat competitors in customer’s satisfaction is a powerful business objective because satisfaction is an overall indicator of how well customers rate a company’s performance. (Gilbert, D. H. and Gary, L. F. (1999).Customer satisfaction is a customer’s positive, neutral, or negative felling about the value she/he received from an organization’s product in specific use situations. (Robert, B. W. and Sarah, F. G. (1996). Today, it is more important for organizations to conduct all aspects of their business to satisfy customers. Favorable satisfaction ratings not only boost sales but can also have a dramatic effect on company performance.

2.2.11. Importance of customer satisfactionAccording to (Smith, 2007) Customer satisfaction measures how well a company’s products or services meet or exceed customer expectations. These expectations often reflect many aspects of the company’s business activities included the actual product, service, company, and how the company operates in the global environment. Customer satisfaction measures were an overall psychological evaluation that was based on the customer’s lifetime of product and service experience. Effective marketed focuses on two activities: retained existed customers and added new customers.

Customer satisfaction measures were critical to any product or service company because customer satisfaction was a strong predictor of customer retention, customer loyalty and product repurchase.

According to Jillian, Geoffrey ; Lester (1997) during a service encounter, the perception of performance of service quality affect the customer awareness to buy more so if the value perceived regarded the performance of quality is According to the expectations, it were lead to satisfied responses by the customer about the service. According to Fornell et al., 1996, for overall customer satisfaction the first determinant was perceived quality and the second determinant was perceived value. Further he supports that the perceived value has positive influence on customer satisfaction.

For service organizations, employee’s performance has a strong influence on firm’s efforts regarded delivered quality services to its customers, So services cannot be standardized and up to the mark unless company understands its employees, deals and manage them in an effective manner. Because ultimately employees were the people who carry company’s vision and mission and helps the company to accomplish its objectives. Also they interact and deal with the customers directly.
If employees were satisfied and happy they were delight handle the customers, but if they were not happy they were response otherwise. It simply means that company can be successful only by effectively utilized the abilities of its workforce and by expanded the scope of their activities. Pfeiffer et al., 1995 has explained the importance of workforce and discussed few practices for managed people in the organization’s that ultimately helps to achieve organizational goals. Some of the practices from Pfeiffer et al., (1995) research was discussed.

2.2.12. The Relationship between Service quality and customer satisfactionWhile customer satisfaction has been considered to be based on the customer’s experience on a particular service encounter, (Cronin & Taylor, 1992) it is in line with the fact that service quality is a determinant of customer satisfaction, because service quality comes from outcome of the services from service providers in organizations.
Definitions of consumer satisfaction relate to a specific transaction (the difference between predicted service and perceived service) in contrast with “attitudes”, which are more enduring and less situational-oriented,” (Lewis, 1993,). This is in line with the idea of Zeithaml et al (2006,).
Regarding the relationship between customer satisfaction and service quality, Oliver (1993)first suggested that service quality would be antecedent to customer satisfaction regardless of whether these constructs were cumulative or transaction-specific. Some researchers have found empirical supports for the view of the point mentioned above (Anderson & Sullivan, 1993; Fornell et al 1996; Spreng & Macky 1996); where customer satisfaction came as a result of service quality.

In relating customer satisfaction and service quality, researchers have been more precise about the meaning and measurements of satisfaction and service quality. Satisfaction and service quality have certain things in common, but satisfaction generally is a broader concept, whereas service quality focuses specifically on dimensions of service. (Wilson et al., 2008,).Although it is stated that other factors such as price and product quality can affect customer satisfaction, perceived service quality is a component of customer satisfaction (Zeithaml et al. 2006, p. 106-107). This theory complies with the idea of Wilson et al. (2008) and has been confirmed by the definition of customer satisfaction presented by other researchers.
It has been proven from past researches on service quality and customer satisfaction that Customer satisfaction and service quality are related from their definitions to their relationships with other aspects in business. Some authors have agreed to the fact that service quality determines customer satisfaction. Parasuraman et al., (1985) in their study, proposed that when perceived service quality is high, then it will lead to increase in customer satisfaction.2.2.13. Customer satisfaction with service quality modelsAccording to Oliver has developed a model in 1993 to explain the relationship between service quality and customer satisfaction. He states that service quality was developed by compared performance perceptions and ideals related to dimensions of quality, satisfaction Contradicts with expectations that were predictive regarded both non quality dimensions and quality dimensions.
Oliver has developed a model in 1993 to explain the relationship between service quality and customer satisfaction. He states that service quality was developed by compared performance perceptions and ideals related to dimensions of quality, satisfaction Contradicts with expectations that were predictive regarded both non quality dimensions and quality dimensions.

Desires
Desires congruency
Over all service quality

Perceived performance

Overall satisfaction
Expectations dis confirmation

Expectation

Figure 2: Customer Satisfaction with Service Quality Model
Source: Spreng and Mackoy (1996)
 
Figure 2 presents Spreng and Mackoy research based on Oliver’s Satisfaction Quality Model. In their research they stated that, satisfaction and service quality were both distinct constructs.
Also expectations were negatively related to satisfaction, but through perceived performance, expectations were positively related to service quality perceived and satisfaction. So managers should always try to decrease the level of expectations in order to provide services that are better than expected.
Which were result in higher level of satisfaction (Davidow and Uttal, 1989Peters, 1987).Furthermore, their Research states that managers should balance the negative and positive aspects of satisfaction because if firms lower the level of expectations, the customer’s perceptions of performance were also go down and that were decrease the level of satisfaction as well. It shows that lowered the Expectations were also made the satisfaction down. If we talk about desires, Spreng and Maackoy (1996) research shows that desires were compatible (congruency) with satisfaction as desires comes prior to satisfaction.
Core quality

Switching intention

Customer satisfaction

Relational quality

Loyal intension

Perceived value

Figure 3: McDougall & Levesque (2000) Customer Satisfaction with Service Quality Model
Source: McDougall & Levesque (2000)
Figure 3 presents another model presented by Mcdougall and Levesque. It describes customer satisfaction in service settings. The main contribution of this model is the inclusion of perceived value and its importance together with service quality and their effect on satisfaction that leads to future intensions.

This model states that perceived service quality and value influence customer satisfaction which in turn affect the future intensions. Where perceived service quality consist of two dimensions as described earlier, Core, the basic service (as promised) and relational (the quality service is delivered). In addition to service quality dimensions Tangibles, Empathy, Responsiveness, Reliability and Assurance that customers use to judge or evaluate overall services (Parasuraman et al, 1985) the core and relational quality leads to overall customer satisfaction or service quality (Zeithaml et al., 1996).

Perceived value is defined as benefits received relative to cost. Customers who think that they got something worth spend were better satisfied as compare to those customers who think that did not get something worth spend (money) (Zeithaml et al., 1988).Customer retention/loyalty that results in repeated transactions is the main goal of service providers as their profit and revenues were linked with it, increased in customer retention and level of satisfaction generate positive word of mouth, more revenues and reduce the marketed cost for the company’s Reichheld (1996) and Heskett et al. (1997). So it can be said that the overall assessment of service provider is viewed in terms of customer satisfaction and future intensions and the customer interests of returned back to the same service provider. According to Jillian, Geoffrey ; Lester (1997) during a service encounter, the perception of performance of service quality affect the customer awareness to buy more So if the value perceived regarded the performance of quality is according to the expectations, it were lead to satisfied responses by the customer about the service.

Study about this research model show that characteristics or nature of service affects the drivers of customer’s intensions and level of satisfaction. So there is a need to develop better understandings about the relative importance of drivers of satisfaction in the service context and how the service characteristics were affect these drivers. However these drivers cannot be generalized when considered a specific service.By determined the influences of such drivers, service providers can focus more on the quality of improve those drivers that can improve the customer satisfaction which ultimately leads to improved sales.

2.2.14 Service quality and Customer Satisfaction (SQCS) ModelService quality and Customer Satisfaction is clear from both models presented above that quality of service is an important factor together with other elements (performance, expected & perceived service) affects the level of customer satisfaction.
It also influences the customer decisions regarded repurchase intentions or switched intentions towards the specific service provider. So a proposed model is developed by considered Spreng and Mackoy (1996), McDougall & Levesque (2000) as well as Parasuraman et al., (1985), models to explain the relationship between service quality and customer satisfaction that ultimately affect the repurchase intensions and results in more revenue for the service firms.

Undoubtedly service quality has a great impact on customer awareness to buy or afterwards repurchase intentions. If the customer is satisfied with the service standards, he was more likely to buy the same service again and was become a loyal customer. A Dissatisfied customer would never like to continue the relationship and were switch to other service providers in the same industry.

According to Oliver has developed a model in 1993 to explain the relationship between service quality and customer satisfaction. He states that service quality was developed by compared performance perceptions and ideals related to dimensions of quality, satisfaction Contradicts with expectations that were predictive regarded both non quality dimensions and quality dimensions. It was discussed on the above model. Also expectations were negatively related to satisfaction, but through perceived performance, expectations were positively related to service quality perceived and satisfaction. So managers should always try to decrease the level of expectations in order to provide services that were better than expected.

Word of mouth + personal need
Which was result in higher level of satisfaction (Davidow and Uttal, 1989 Peters, 1987)?
FavourableResponse

Expected Service quality

Customer expectation

Repurchase intention

Perceived Service quality

Value perceived
Service delivery performance
Switching intention

Unfavourable Response
Service quality

Customer satisfaction

Figure 4: Service quality and Customer Satisfaction (SQCS) Model
Source:Parasuraman et al. (1985); Spreng and Mackoy (1996); McDougall
Service quality
The perception of service quality involves more than the outcome quality the methods and manner by which the service is delivered were of great importance. The mission for service quality has been an essential strategic component for firms attempted to succeed or survive in today’s competitive environment (Munusamyet al, 2008)
Customer’s satisfactions
Customer satisfaction is an individual’s perception of the performance of the product or service in relation to his or her expectations. It is a business doctrine that is inclined towards generated worth to customers, predicted and governed their assumption, and indicated capability and authority to fulfill their demands and requirements. Customer satisfaction is an after use assessment regarded a given product or service.

Words-of-mouth
Word-of-mouth is the most important informal means of communication between consumers. It is defined as the informal communication directed at other consumers about ownership, or characteristics of particular goods and services and/or their sellers. It is understood as the transfer of information from one person to another person’s; it has strong power of persuasion, especially in dissemination of information about a new product. This view has been supported by Sheath, Mittal, and Newman, According to these authors, the word of mouth is power in influenced buying decisions of customers, especially when services or products provided that can cause the high risk to customers. As defined by the Harrison-Ilker, it is a concept of conveyed information from person-to-person, between communicator and receivers of information while assessed a brand, product, company or a service.

Customers’ expectations and experience of service
Can vary of a single organization, the customer perception is their reality. Customer is about perception. It also important for success in influenced customer satisfaction to understand how customer expectations develops and update even if the term expectation is vague and difficult to interpret in surveys. Kandampully (2014) argues that the management of these customer expectations is also an imperative concept in tourism companies for further products and services designed to match and exceed those expectations.

Perceived value
The customer’s overall assessment of the organization service based on the complete experience of the service delivery process and they were subjective.

Service Delivery/performance
Revolves around the idea that it is the result of comparison that customers make between their expectations about a service and their perception of the quality the service has been performed. Service quality can thus be definite as the difference between customer expectations of service and perceived service performance. If expectations were greater than performance, then perceived quality is less than satisfactory and hence customer dissatisfaction occurs.
This model is constructed after going through different models presented by Parasuraman et al. (1985).Spreng and Mackoy (1996) and McDougall & Levesque (2000) related to service quality and customer satisfaction, Zeithmal & Bitner (2000) somehow personal and situational factors also affect the process of customer satisfaction. Personal factors such as personal needs or desires effect the customer perceptions and expectations, whereas situational factors such as positive or negative word of mouth leads to satisfied or dissatisfied customer responses/ opinion about the specific service.

The summary of empirical review of literature is annexed in appendix A:
2.3. Empirical ReviewThe study of insurance service is an important means by which the individuals with relatively low incomes can save and invest efficiently in the long run. Certainly, insurance is a saved contract relatively simple that can be freely bought and regularly by small amounts. With the regular character or contractual of premiums payment by the policyholders, the insurance companies arrive to mobilize the significant saved and stable compared to other financial systems. Thus, in pooled the saved of small and large investors, the insurance companies accumulate stable resources that can be used for heavy and risky investments that were beneficial to the economy (Dickinson, 2000).
In this quality, the insurance service is an important instrument for economic development.

According to Zeithaml and Bitner (2003), satisfaction and service quality were fundamentally different in terms of their underlying causes and outcomes. Although they have certain things in common, satisfaction is generally viewed as a broader concept, whereas service quality assessment focuses specifically on dimensions of service. Service quality is a component of customer satisfaction. Service quality is a focused evaluation that reflects the customer’s perception of elements of service such as interaction quality, physical environment quality, and outcome quality.

These elements were in turn evaluated based on specific quality dimensions: reliability, responsiveness, assurance, empathy and tangibles. Satisfaction, on the other hand, is more inclusive: it is influenced by perceptions of service quality, product quality, and price as well as situational factors and personal factors. According to Parasuraman, Zeithaml and Berry (1988), five principal dimensions that customers use to judge service quality include- reliability, responsiveness, assurance, empathy, and tangibles.

According to Cronin and Taylor (1992) investigated the conceptualization and measurement of service quality and the relationships between service quality, consumer satisfaction, and purchase intentions. A literature review suggested that the current operationalization of service quality confounds satisfaction and attitude. Hence, the authors tested (1) an alternative method of operationalized perceived service quality and (2) the significance of the relationships between service qualities, consumer satisfaction. Also Taylor and Baker (1994) assessed the relationship between service quality and customer intentions across four unique service industries. The results of the research, coupled with the weight of the evidence in the emerged services literature, suggested that consumer satisfaction is best described as moderated the service quality/purchase intention relationship. From the findings they strongly advocated the position that customer satisfaction and service quality were separate and distinct.
According to Anderson, Fornell and Lehmann (1994) investigated the nature and strength of the link between customer satisfaction and economic returns, in the Customer Satisfaction, Market Share, and Profitability: Findings from Sweden. They discussed how expectations, quality, and price should affect customer satisfaction and why customer satisfaction, in turn, should affect profitability; these results in a set of hypotheses that were tested used a national customer satisfaction index and traditional accounted measures of economic returns, such as return on investment. The findings supported a positive impact of quality on customer satisfaction, and, in turn, profitability.

The authors demonstrated the economic benefits of increased customer satisfaction used both an empirical forecast and a new analytical model. In addition, they discussed why increased market share actually might lead to lower customer satisfaction and provided preliminary empirical support for this hypothesis. Finally, they emerged with two findings: First, the market’s expectations of the quality overall satisfaction with the firm; and second, these expectations were largely rational, albeit with a small adaptive component. Furthermore, these investigators revealed that customer satisfaction is considered to be based upon value; therefore it is closely related to price, unlike service quality that is not related to price.

Due to Ennew and Binks (1996) in their article exemplified the then recent developments in relationship marketed that had focused attention on the beneficial effects of customer retention, by explored the relationship between service quality customer relationships and customer loyalty and retention used evidence from the insurance sector and its small business customers. The notion of building relationships and delivered quality service in order to encourage loyalty is perhaps of particular importance in the service sector where it is often argued that customer attraction costs were significantly higher than retention costs.
According to Oppeil and Vriens (2000) sought to bridge the lack of empirical data by established service quality and customer satisfaction relationships utilized the original ten dimensions of SERVQUAL (Parasuraman,et al, 1985) as a started point for their research. But, in their research article proposed the use of integrated conjoint experiments to measure perceived service quality. They also demonstrated the process of modeled the hierarchical relations between operationally defined services attributes, strategically relevant service dimensions, and overall preference for insurances or insurances products.

The proposed method, which is based on hierarchical information integration theory, avoided some of the limitations and problems of SERVQUAL and traditional conjoint analysis. The approach is demonstrated with an application to retail insurances involved four service dimensions and 28 attributes. Conclusions were drawn about which dimensions and attribute changes were yield the strongest improvement in insurances utility and competitive position.

Jamal and Naser (2002) in their paper entitled “customer satisfaction and retail Insurances: An Assessment of Some of the Key Antecedents of Customer satisfaction in retail insurances” reported findings from a survey which looked into the impact of service quality dimensions and customer expertise on satisfaction. A sample of 167 respondents took part in that study. Used a type of regression analysis, the investigators indicated that both core and relational dimensions of service quality appearing to be linked to customer satisfaction used such variables as age, type of business, gender, etc. Findings also indicated that expertise is negatively related to satisfaction.
According to Howcroft, Hamilton and Hewer (2002) in their paper on “consumer Attitude and The Usage and Adoption of Home-Based Insurances in the UK” inquired about to develop their understanding of consumer attitudes towards insurances delivery channels. Accordingly, a questionnaire is designed to obtain information about which delivery channels consumers had used when acquired four types of financial service. That information is then contrasted with data on how these consumers would acquire the same services if they had to purchase them again at some time in the future. The questionnaire also obtained information about the factors which consumers believed to be important in encouraged and discouraged the adoption of home-based insurances. It is found that variables such as age and other demographics had impact on customer selection and satisfaction.
Hallowell (1996) performed a study to examine the relationship of customer satisfaction, customer loyalty and profitability for which the data is collected from largeinsurance’s retail insurance services operations. The service management literature argues that customer satisfaction is the result of a customer’s perception of the value received, where value equals perceived service quality relative to price.
The findings illustrated the relationship of customer satisfaction to customer loyalty and customer loyalty to profitability used multiple measures of satisfaction, loyalty, and profitability. An estimate of the effects of increased customer satisfaction on profitability (assumed hypothesized causality) suggested that attainable increases in satisfaction could dramatically improve profitability.
According to Fornell et al. (1996) discussed the nature and purpose of American Customer Satisfaction Index (ACSI) which is a type of market-based performance measure for firms, industries, economic sectors, and national economies, and explained the theory underlined the ACSI model, the nation- wide survey methodology used to collect the data, and the econometric approach employed to estimate the indices. They also illustrated the use of ACSI in conducted benchmarked studies, both cross-sectional and over time.
The authors found customer satisfaction to be greater for goods than for services and, in turn, greater for services than for government agencies, as well as found cause for concern in the observation that customer satisfaction in the United States is declined, primarily because of decreased satisfaction with services. The authors estimated the model for the seven major economic sectors for which data were collected. Highlights of the findings included that
(1) Customization is more important than reliability in determined customer satisfaction, (2) customer expectations play a greater role in sectors in which variance in production and consumption is relatively low, and
(3) Customer satisfaction is more quality-driven than value- or price-driven.
Newman (2001) in his paper on ” interrogated SERQUAL: a critical assessment of Service quality management in high street retail Insurances” presented a case study of a pioneered nationwide implementation of SERVQUAL by a major UK high street insurances between 1993 and 1997 at an annual cost of one million pounds. In addition to highlighted serious weaknesses in the value of SERVQUAL as a measure of service quality and as a diagnostic tool, the study raised some of the practical difficulties entailed in its implementation.

It is found that the separation of service quality management and marketed management caused major problems in adequately satisfy the insurances customers. In addition, there is a discernible lack of top management commitment, as well as obstacles in the form of functional and informational silos, which served to constrain an integrated company response to SERVQUAL criteria. It is also noted that customer satisfaction is retention, which leads to repeat purchase and increased scope for relationship building and word of mouth recommendation.
Howcroft (1992) in his research related to customer service in selected branches of UK cleared insurances reported the results of a pilot survey which examined the quality of service given to customers at pre-selected branches of a major UK cleared insurances. He viewed that customer satisfaction is the most important determinant of service quality. Although, a number of discernable inconsistencies or gaps were identified between what insurances staff said on been interviewed and what is observed, The researcher noted that the divergent thoughts seemed to agree with the concept that customer perceptions of the level of service quality were determined by compared expectations with actual performance, which provides further foundations for the measurement concepts advanced in this study. 
Increased competition on international markets has led many companies to consider quality as a strategic tool capable of influenced market share and return on investment. Yet a review of the marketed literature reveals a serious lack of explanatory and empirical studies on the concept of quality and its related phenomena as it applies to the service sector.
Ogunaike (2010) in a related paper examines the relationship between service quality and customer satisfaction in the Nigerian insurances. Two hypotheses were formulated in this paper and appropriate statistical techniques employed to test the hypotheses were multiple regression and correlation.
The paper reveals that service quality has significant effect on customer satisfaction. The result also shows that there is a relationship between gender and customer service. Conclusion is drawn and it is recommended based on the findings of the paper that the insurances should focus more on their customers rather than on the products and services, which they sell because customers were the true business of every company.

Bahia and Nantel (2000) in their article described the study performed in Canada to develop a reliable and valid scale for the measurement of the perceived service quality of insurances services. A sample of retail insurances customers is questioned. The proposed scale is called insurances service quality (BSQ) and comprises 31 items which span six dimensions: effectiveness and assurance; access; price; tangibles; services portfolio and reliability. They disregarded responsiveness in their research, claimed a lack of reliability even though they recognized SERVQUAL and all of its dimensions as the best known, most universally accepted scale to measure perceived service quality
Chan and Ma (1990) in their article elaborated the survey in Hong Kong amongst a representative sample of companies directed to understanding their buying behavior and attitude to insurances services. The area explored includes split-insurances behavior, insurances usage, insurances switched, perceived importance of attributes of a insurances in a insurances relationship, and usage of other financial services.
As Hong Kong may be the third financial center in the world, after New York and London, and there is a general lack of literature on corporate insurances behavior of Hong Kong companies, hence their research aimed to contribute a pioneered study, which is expected to provide invaluable insights to insurances operated in Hong Kong both locally and foreign- based so as to formulate their insurances marketed strategies. While, other insurances studies have not found the day-to-day efficiency of insurances operations to be important in the insurances selection process. However, they have found service quality to be significant. M. Kumar, T. Kee & S. Peru (2009) in their study aims to find the differences in the service quality (if any) between two types of insurances, namely conventional and Islamic, in terms of common critical factors after re-examined the SERVQUAL model, originally pioneered by Parasuraman. Further, the technique of dominance analysis is used to examine the relative importance of the critical factors in closed up the overall service quality gap in these two types of insurances.
The results reveal competence and different between insurances, whereas the convenience was found between these insurances indicates that of insurances is in terms Competence and relatively more dominated types of insurances. Laser et al (2000) in the title “service Quality perspective and satisfaction in private insurances “by used SERVQUAL model and technical/ functional Quality model finding (1) Technical functional Quality model is better than SERVQUAL model in predicated customer satisfaction when customer is actively or highly interested in service delivery
2).The various dimensions of service quality differently predict the three measures of satisfaction
3) In instances involved particular elements of quality and satisfaction, both the incidence of service failure and the type of communication between service providers and consumers may influence the effects of quality on satisfaction.

In the article of Lewis (1993) that entitled service quality: Recent Development in financial services “revealed some of the research literature on service quality is considered to include definitions, determinants and measurement of quality. Attention is also given to research applications which f focus on management, employee and customer perspectives. In addition, a number of continued service quality concerns were highlighted, related to changed customer expectations, the need for an integrated approach to service quality and the development of service quality measurement tools is shown. As financial institutions grow, there is a tendency for service to give quality to volume delivery to enhance profitability. Those large insurances appearing to have incorrectly felt that quality service caused profits to erode. But, the researcher is of the opinion that service quality could make a difference as it leads to reduced costs, increased profitability, and other beneficial components.

According to Sergeant and west (2001). It was noticeable that the perceptions of service quality and commitment were related to allegiance, but each of the aforementioned factors, may have a different impact on customer loyalty in a particular market. There were two kinds of reasons that can determine relationship breakdown between the customer and the organization the natural causes (customer demand) and artificial causes (inadequate product specifications insufficient quality of service level). It is obvious that in order to increase customer loyalty the organization must seek to eliminate both natural and artificial customer exit reasons.
Rahaman et al. (2011), explored service quality of the private commercial insurance company in Bangladesh. The findings from their study revealed that, one of the primary causes of service quality design failure is the lack of understanding of the evolving need and preferences of targeted customers.
Llhaamie (2010) examined the level of service quality, expectation and perception of the external customers towards the Malaysian public services using the SERVQUAL instrument. The study found that tangible is the most important dimension. It also has the lowest scores of perception. On the other hand service quality gap is neither the lowest nor the highest. Finally, these external customers have the highest expectation on the reliability of the Malaysian public service.
Ojo (2010) investigated the relationship between service quality and customer satisfaction in the telecommunication industry with a focus on mobile telecommunication network (MTN) Nigeria. The study revealed a positive relationship between service quality and customer satisfaction. The researcher therefore recommended that organizations should focus more attention on service quality, because of its effects on customer satisfaction. To ensure that customer satisfaction level was high organization must first of all know the expectations of the customers and how they can meet such expectations. Customer’s satisfaction helps in customer loyalty and retention. It has been discovered that the cost of attracting new customer far exceeds the cost involved in retaining existing ones.
Kheng et al, (2010) employed the SERVQUAL model developed by parasuraman et al, 1988 with five dimensions to evaluate the impact of service quality on customer loyalty among bank customers in Penang, Malaysia. Customer satisfaction was used as an intermediate variable. The findings show that improvement in service quality can enhance customer loyalty. The service quality dimension’s that play a significant role in the equation were reliability, empathy, and assurance. The findings indicate that the overall respondents evaluate the bank positively, but still there were rooms for improvements.
Sammons (1982) conducted an exploratory study of customer satisfaction of fine dining restaurants in Singapore. The paper seeks to find out the service dimensions of service quality, which lead to higher levels of customer satisfaction. The findings from the study indicated that the service dimensions of assurance, empathy and Tangibility were the most important to customer’s’ evaluation of service quality, and thus, may have a positive influence customer satisfaction of fine dining restaurants in Singapore. The paper seeks to find out the service dimensions of service quality, which lead to higher levels of customer satisfaction. The findings from the study indicated that the service dimensions of assurance, empathy and Tangibility were the most important to customers’ evaluation of service quality, and thus, may have a positive influence customer satisfaction.
Bloomer, et al (1998) have presented model to show how the mental picture, service quality, and customer satisfaction influence customer loyalty. Findings of the research show that the mental picture indirectly and through service quality, influences loyalty. On the other hand, service quality influences loyalty both directly and indirectly (through satisfaction). Besides, this research showed that the reliability and position in the market were relatively important stimulants affecting the loyalty to bank services.
Caruana (2002) on the relationships between customer satisfaction, service quality and service loyalty in Malta’s insurance company, concluded that customer Satisfaction plays a mediator role in the effect of service quality on service loyalty. In fact, service quality affects service loyalty through customer satisfaction. In addition, results of this research show that service quality was an important gateway to customer satisfaction.
Yongyui (2003) has presented a model for the relationship between service quality and insurance reputation. According to the findings of this research, fivefold dimensions of service quality have direct effect on the insurance reputation. In addition, on the basis of this research’s findings, the insurance reputation plays an important role in determination of purchase, repeated purchase, and customer loyalty. This issue has much more importance in insurance service industry, because service quality cannot be accurately evaluated before purchasing.
Sadeghloo et al, (2013) the purpose of this study was to investigate the relationship between internal marketing and service quality. The research method in this study was descriptive and correlation method. Sports and youth offices staff of goldstone province have established statistical population of research that they all participated in the study. The findings showed that between internal marketing and service quality in sports and youth offices staff, there is significant positive correlation. The research findings on the importance of internal marketing and its levels as one of the factors affecting service quality within the sports and youth offices of golestan province underlined. Thus, leaders and HR managers should use the strategic plans for the development of internal marketing in prior to provide higher quality services.  
Abu Elsamen ; alsurideh (2012) the purpose of this research was to examine the impact the internal marketing (IM) on the perceived internal service Quality (ISQ). Their results indicated that that there is a positive relationship between internal marketing dimensions and perceived internal service Quality in varying magnitude. Further, the investigation showed that the dominant dimension of IM was found to be Recruitment with the stronger impact on all perceived internal service. Service providers were recommended to apply IM strategy in order to enhance perceived ISQ foster better external service quality.
According Khalifa, et al (2011) conduct a study entitled on:” the effect of the quality of service on customer loyalty. The results shows that positive relationship between them, and based on the results of the study was presented a number of recommendations related to quality of service and to build a strong loyalty among customers have also been proposals for future studies. as Almutairi, (2010) conduct as study entitled on: the impact of service quality and relationship marketing on customer loyalty. The study aimed at detecting the impact of service quality and relationship marketing on customer loyalty, the finding show that the quality dimensions of a provided service (tangibility, reliability, response, security and sympathy/ has a positive and direct impact on the customer loyalty, and the quality Dimensions a provided service has a positive and direct impact on the relationship marketing, and there was a positive and direct impact of the relationship marketing, and there was a positive and direct impact of the relationship marketing on customer loyalty.

According to Mesay (2012) in his article ”Bank service Quality, Customer satisfaction and loyalty in Ethiopian Insurance service sector” the main aim of the study was to measure the quality of service offered by private insurance company operating in Ethiopia. Moreover, it tries to investigate the relationship between service quality, customer satisfaction and loyalty. The five dimensions of SERVPERF model i.e. reliability, assurance; tangibility, empathy and responsinsiveness’ were used to measure the quality of service offered by the private insurance company. The finding indicates that there was a positive correlation between the dimensions of service quality and customer satisfaction. The study indicates that empathy and responsiveness plays the most important role in customer satisfaction level followed by tangibility, assurance, and finally the insurance reliability. The research findings also indicate offering high quality service increase customer satisfaction, which in turn leads to high level of customer commitment and loyalty.
Rama and Rajeev (2015), examines the impact of perceived service quality on customer satisfaction and customer loyalty, and find mediating role of customer satisfaction was also assessed between perceived service quality and customer loyalty. The results indicated that customer satisfaction mediates the relationship between perceived service quality and customer loyalty, the impact of supposed service quality does not lead to customer loyalty without customer satisfaction. The result shows that improvements of service quality should be conducted on all the five service quality dimensions, especially the dimensions of responsiveness and empathy.This study also found a positive relationship between all service quality dimensions and customer satisfaction.

2.4. Variable Identification and DescriptionThe dependent variable is used in the study overall customer satisfaction in insurance companies service quality. The independent variables were identified in the empirical reviews of my research as identified in the form of:
Customer satisfaction is an appealing straightforward concept that readily lends itself to evaluation. However, upon further consideration it can be appreciated as a complex and multifaceted concept that has attracted enormous attention from both the academic and practitioner communities, not least because it is recognized as being of great significance to the well-being of individuals, firms and the economy as a whole.

The concept of service quality into five constructs as follows: Tangibles, Reliability, Responsiveness, Assurance and empathy. It bases on captured the gap between customers’ expectations and experience which could be negative or positive if the expectation is higher than experience or expectation is less than or equal to experience respectively.
Tangibility are discusses about the physical facilities, equipment, and appearance of personal and presence of users and it is also important for created a good atmosphere. This dimension aspect of a service is one of the few dimensions that a potential service provider can know and evaluate in advance of participation.

Reliabilitydiscusses about performance of service facilities, goods and staff is seen as important (Johnston, 1997). This includes punctual service delivery and ability to keep to agreements made with the customer. According to Fitzsimmons and Fitzsimmons (2001), reliability is the ability to perform the promised service both dependably and accurately with error free.

Responsiveness as the speed and timeliness of service delivery, This includes the speed of throughput and the ability of the service to respond promptly to customer service requests, with minimal waiting and queuing time.
Due to the argument of Fitzsimmons and Fitzsimmons (2001) that when the customer is kept waiting for no apparent reason creates unnecessary negative perceptions of quality. On the other hand, the ability for the bank to recover quickly when service fails and exhibit professionalism also create very positive perceptions of quality.

Assurance considers the knowledge and courtesy of employees as well as their ability to convey trust and confidence. The assurance dimension includes the following features: competence to perform the service, politeness and respect for the customer, effective communication with the customer and the general attitude that the server has the customer’s best interest at heart (Fitzsimmons & Fitzsimmons, 2001).

Empathy is the provision of caring, individualized attention to customers. Fitzsimmons and Fitzsimmons (2001) posit that empathy includes approachability, sensitivity, and effort to understand the customer’s needs.
Johnston (1997) describes empathy as the ability to make the customer feel welcome, particularly by the contact staff. The two of the dimensions of the service quality, which includes core service quality and relationship quality, has their influence on the overall customer’s satisfaction (Butcher et al., 2003). The prior studies reveal that the increase in service quality and enhanced the relationship promoted were the basic tactics to satisfy the customers in the services context (Moriarty et al., 1983).

2.5. Conceptual FrameworkThe conceptual framework indicates the crucial process, which is useful to show the direction of the study. The study shows the relationship between the five service quality Dimensions (reliability, responsiveness, assurance, empathy and tangible) and customer satisfaction.

Tangibility
Service quality

Responsiveness 

Customer  satisfaction

Assurance

Reliability

Empathy

Dependent variables

Independent variables

Figure 5: Conceptual Frameworkon customer satisfaction in insurance companySource: Research Compilation (2018)
The framework above shows proposed framework was served as foundation of this study. It is modified from the Zeithaml et al (1985) gap model theory. Purpose of this study is to examine the how tangibility, reliability, responsiveness, assurance and empathy of service which were the independent variables can bred impact on the dependent variables, customer satisfaction towards the service quality at insurance companies in Wolaita Zone, SNNPRS, Ethiopia.

2.6. Mathematical Model of the studyThe dependent variable in this study was customer satisfaction. According to Kotler and Keller, 2009 Customer Satisfaction can also be a person’s feelings of pleasure or disappointment that results from compared a product’s perceived performance or outcome with their expectations. As a matter of fact, satisfaction could be the pleasure derived by someone from the consumption of goods or services offered by another person or group of people. Or it can be the state of be happy with a situation. Another author justifies that Satisfaction varies from one person to another because it is utility. Thus, here customer satisfaction was measured as dependent variable in this study. Different variables were expected to affect customer satisfaction in insurance industries. Among those variables there were five instructive variables that have been identified based on empirical reviews.
These are Tangibility (T), Responsiveness (R), Assurance (A), Reliability (Re), Empathy (E).

To sum up, the functional form of the model was as follows
CS= ?+ ?1, SQ
CS =?+ ?1T+ ?2R+ ?3A+ ?4Re+ ?5E+U
Where CS = the dependent variable and T, R, A, Re and E were the explanatory or independent variable.

SQ=Service Quality
? is the intercept term. As usual, it gives the mean or average effect on CS of all the variables excluded from the model, although its Mechanical interpretation is the average value of CS when all explanatory variables were set equal to zero.
The coefficients ?1 – ?5 were called the partial regression coefficients and U is the stochastic disturbance term may well represent impact of service quality on customer’s satisfaction but were not taken into account explicitly.CHAPTER 3: RESEARCH METHODOLOGY3.1 IntroductionThis chapter presents details of the research design and methodology. This includes the research design, sample size and sampling technique, data source and collection method, procedure of data collection, questionnaire and pilot study and ethical issues. At the end the method data analysis was presented.

3.2. Description of the study area
Wolaita is the name of both the people and area in Southern Nations, Nationalities and Peoples’ Regional State (SNNPRS). It was located at about 330 KMs South West of Addis Ababa, and 160 km from Hawassa, the Southern Regional of Capital. Wolaita is one of the fourteen zones of the SNNPRS With a total area of 4, 471.3 km².Wolaita is inhabited by over 1.7 million people. Among the current total population of the zone, 795,950 were children (0-14years), 901,276 were youths and 29,352 were old aged (above 65). Women of reproductive aged 15-49 were 42,572. The current average population density of the Zone is 428.2km2. According to the SNNPR Regional Statistical Abstract, the average population density of Wolaita is over 385 people per square meter ppkm²) most densely populated areas in the country.

Source: Ethiopian Map Agency, 2018
Fig6: The Map of Wolaita Zone
3.3 Target PopulationThe target population of the study was the customers of 9 insurance companies havingservice in wolaita zone.

The population sizes of the selected insurance companies were presented here under:
Table 1: Total Population of the study
NO Insurance Companies Number of customers
1 Medin Insurance 900
2 Nice Insurance 621
3 Nyala Insurance 679
4 Nile Insurance 700
5 Birhan Insurance 707
6 Africa Insurance 675
7 Lucy Insurance 875
8 Anbesa Insurance 900
9 Nib Insurance 680
Total 6737
Source: (Data collected from Insurance Companies,2018)
3.4 Research DesignThis research was primarily causal cross sectional research because it aimed at examined the relationship between customer satisfaction as a dependent variable and, trust, service quality, responsiveness, variability, assurance and empathy as independent variables. To find out the relation of each independent variable with the dependent variable that makes the research type causal. A research is quantitative in nature.
Quantitative research designs those which generate numerical data and use statistics to improve numerical data (Leedy and Ormord, 2005); this kind research design is helpful to assess the magnitude of the effect of each independent variable on dependent variable. By Used quantitative design, the researcher was try to quantify the correlation type and strength between the independent variables (service quality, responsiveness, variability, assurance and empathy) and its dependent variable (Customer satisfaction). The researcher also was use qualitative design in order to describe the existed situation under study.
3.5. Data Sources and TypesFor the proper achievement of the objectives of the study; the researcher was use primary data source only, and data analysis method was Quantitative method used.
3.5.1. Data collection Method and analysisQuestionnaire was the most suitable when the sample size was large, because it limits inconsistency and also saves time. In order to collect the required data the researcher were use structured questionnaire as the best instrument. The design of the questionnaire was employed simple and clear language to collect careful data from the respondents. Therefore the researcher collecting the necessary data from the customers of both selected private Insurance Company through close ended questionnaires.
The self- administered and structure questions were be in statements form and the researcher were ask customers to express their agreement/disagreement in the five point Likert scale (1=strongly disagree, 2= disagree, 3= neutral, 4= agree, 5=strongly agree) and also the researcher were supervise for not missed and for attempt all the questions by the respondent.

3.6. Sampling Techniques and Sample Size In order to have a rational representation of the population and to capture a representative sample, the researcher distributed 352 survey questionnaires by using cluster sampling, which is one of the probability sampling methods. This is due to the reason that it brings an easy sample and data selection. Besides, it also provides a cost efficiency advantage and least time consuming.

3.6.1. Sampling TechniqueTotal population for the study was the customers of 9 insurance Companies. As the insurance Companies operate in similar environment i.e. Wolaita soddo area& similar characteristics are given the 9 insurance Companies as 9 clusters having similar characteristics. Out of 9 insurance companies 4 clusters (insurance companies) were randomly selected have total population of 2900 (cluster sample was taken).

Table 2: Target Population for whomthe sample was taken.

NO Insurance Companies Number of customers
1 Medin Insurance 900
2 Nice Insurance 621
3 Nyala Insurance 679
4 Nile Insurance 700
Total 2900
Source: (own survey, 2018)
The clusters for these 4 insurance companies selecting randomly taken customers who having service of insurance, so to the study cluster randomly sample was used.3.6.2. Sample Size DeterminationA simplified formula for proportions recommended by Yamane (1967) was used to calculate sample size. Assumed a 95 % confidence level, e specifies the desired level of precision between (5-10) percent. Assumed e =0.049 ?5% e = was the level of precession that assume e = 0.05
n= N1+N (e2)Where
?= is the sample size,
N =is the population size of the customers (customers of insurance companies) in Wolaita Zone.

e = is the level of precession that assume e = 0.05
Hence the total size was 2900 since the no of people in each sample of insurances were not the same need to proportionate for each insurance company.
In order to determine sample size, the researcher used formula for calculated the required sample size in four sampled branches. The formula is developed by Taro Yamane (1967). It was calculated and when the formula was applied to the above population the sample size which was necessary for the study was determined below as follows.

n= 29001+2900 (0.052)=352The size of the sample from different cluster was kept proportional to the size of the groups Used the formula of proportional allocation N/NT*S, then, the total sample size of the study or 352 customers assigned proportionally by the researcher to be taken from each Insurance company like as:-
Table 3.Calculating population Sample size
NO Insurance Companies Number of customers Proportion (N/NT*S) Sample Size
1 Medhin Insurance 900 900/352*2900 109
2 Nice Insurance 621 621*352/2900 75
3 Nyala Insurance 679 679*352/2900 83
4 Nile Insurance 700 700*352/2900 85
Total 2900 352
Source: (own survey, 2018)3.7. Method of Data analysisThe data which will be obtained from the respondents will be analysed according to the objective of the study. After collecting the questionnaires, the data will be analysed after being transmitted to Microsoft Excel spread sheet.
The following step will be the data in Microsoft Excel spread sheet will import into Statistical Package for Social Science (SPSS) 20. In this method, we will be able to derive a result or priority of the respondents place on each factor after the data organized and analysed by the SPSS software.

Once data is collected, it is necessary to employ statistical techniques to analyse the information, as this study is quantitative in nature. Therefore, reliability testing will be conducted in testing the consistency and stability of the responses that had been collected. Moreover, demographic profile analysis will be examined as well. In addition, description statistical analysis such as means, standard deviations and variance were gained for the interval scale independent and dependent variables will be conducted and as well as setting up a ranking table for the independent variables by allocating the sequences of highest to the lowest mean value. 
Furthermore, the call for the use of Pearson Correlation analysis has been using in testing the hypothesis part to investigate the relationship between the independent variables and dependent variable. Besides that, the linear regression analysis also will be conducted in order to model the function of the independent variables, corresponding parameters and an error term through equation.

3.8. Pilot Study TestA pilot study was conducted prior to distributing the questionnaire to the research sample. The aim of the pilot study was to be in perfect the questionnaire in order to avoid problems in answering the questions by participants in the main study, and to avoid problems in recording data (Saunders et al., 2012).
The pilot study for this research was conducted among thirty customers of the insurance companies, Nine from Nile insurance company, six from Nyala insurance company, Ten from Nice insurance company, and Five from Medhin insurance company,) in order to create participants’ understanding of the questions, any problems in answering, clearness of the instructions, attractiveness of the layout, and time needed to complete the questionnaire (Fink, 2009).
Individuals taking part in the pilot study was asked to share their impressions of the questionnaire content and design, and also to provide their recommendations. This information was important in deciding on whether any amendments to the questionnaire were necessary. All the suggestions were considered, and as a result minor amendments to headings and layout of the survey were implemented. Also, as recommended by managers of the organization and a number of individuals who took part in the pilot study there were some amendments done on items of the questionnaire.

3.8.1. Reliability of Research Instrument
Bells (1993) cited in (Eriksson, 2002) states that reliability with regards to the consistency of the result was obtained from the instrument used in the research. The researcher used valid strategies and techniques appropriate to the research objectives. It has been tried also to present detailed evidence’s of the research plan (i.e. details of the research site, methods of sample selection, instrument used) and its implementation in the methodology section to assure the study’s reliability.
To determine instrument reliability crombach’s alpha() coefficient was used check the internal consistency of the statement used in questionnaire preparation so that Reliability of this work was regarded as the accuracy of data or the fitness of what was tested as the exact occurrence during the study.
It sought to determine the dependability of the research work for accuracy and consistency. In this regard, this pilot study measures whether the items within the research instrument were meaningful to respondents and reflect the way the respondents experience reality. Cronbach’s alpha coefficient as supported in SPSS version 20.00 was used to test for reliability of test for the items of the questionnaire.

The reason for conducting a reliability analysis for each variable was to assess the internal reliability of each scale for the sample used in this study. Hair et al. (2010) argue that Cronbach’s alpha above 0.7 was considered acceptable, and Cronbach’s alpha value above 0.8 was a preferable internal consistency. Cronbach’s alpha coefficients for five items out of six items in the study were above 0.8.
A. Reliability Statistics of customer satisfaction
The customers satisfaction subscale was measured by seven items and its calculated Cronbach’s Alpha was.961 (96.1 %) that show the items in the customer satisfaction sub-scale were strongly correlated each other.

B. Reliability statistics of service quality
The Quality of service given by any insurance company’s subscale was measured by four items and its calculated Cronbach’s Alpha .960 (96%) that show the items in the service quality sub-scale were strongly correlated each other.

C. Reliability Statistics of Tangibility
The Quality of service given by any insurance company’s subscale was measured by seven items and its calculated Cronbach’s Alpha .902 (90.2%) that show the items in the tangibility sub-scale were strongly correlated each other.

D. Reliability Statistics of Reliability test (independent variable)
The Quality of service in insurance company’s was measured by seven items and its calculated Cronbach’s Alpha was 0.885 (88.5%) that show the items in the Reliability sub-scale were strongly correlated each other.

E. Reliability Statistics of Responsiveness
The Service quality was measured by six items and its calculated Cronbach’s Alpha is .898(89.8%) This result confirmed that the responsiveness subscale is reliable based on accepted standard that coefficients value of 0.70 and above shows instrument (Pallant, 2011). That show the items in the customers satisfaction sub-scale were significantly correlated each other.

F. Reliability Statistics of Assurance
The Quality of service was measured by seven items and its calculated Cronbach’s Alpha was .917 (91.7%) that show the items in the assurance sub-scale were strongly correlated each other.

G. Reliability Statistics of Empathy
The Quality of service was measured by five items and its calculated Cronbach’s Alpha was .902 (90.2%) that show the items in the empathy was the cared and personalized attention the organization provides its customers. Individual attention and convenient operated hours were the two primary elements included in the evaluation of empathy. The degree to which the customer feels the empathy was causes the customer to either accept or reject the service encounter. Empathy like other service quality sub-scale was strongly correlated each other.

 The combined items in the research instruments indicates 0.913 Cronbach’s alpha coefficient. This result confirmed that the research instrument was reliable based on accepted standard that coefficients value of 0.70 and above shows a reliable instrument (Pallant, 2011). The resulting Cronbach’s alpha values indicated high satisfaction of customers of service quality test for each scale.

Table 4. Summary of Reliability Study
NO Variables Cronbach’s alpha
Customer satisfaction 0.913
Service quality 0.960
Tangibility 0.920
Reliability 0.885
Responsiveness 0.898
Assurance 0.917
Empathy 0.902
Source: (own survey, 2018)
3.8.2 Validity of Research InstrumentMcMillan (1992) views validity as the extent to which the test-items measure what they purport to do. The content validity of the research instrument was assessed using expert judgment by five individuals 4 from top managers in the organization and the advisor of the subject, from Wolaita soddo university college of Business and Economics, Department of Management Through the expert judgment, construct validity was ascertained to established the extent to which the instruments measured respondents’ impacts of service quality dimension on customers satisfaction.

The instrument was also subjected to a pilot test commonly referred to as a pre-test. The pilot instrument was administered on 4 insurance companies on the service quality in customer’s satisfaction that had the qualities of the respondents of this study. It has been established in the subject with works that 30copies of the questionnaire to representative respondents were enough to identify problems in a questionnaire (Adeniji, 2011; Narver and Slater, 1990). The pre-test helped the face validity of the instrument.
It helped to determine the level of recognition that the insurance company had for the type of information they were responding to. The importance of this validity was that once the respondent knows what information the instrument was looking for, they can use that ‘context’ to help understand the questions and provide more useful and accurate answers.

Based on the validity analysis of performed by the mentioned experts some amendments were made on the questionnaire. The content validity of the instrument for the study was ensured as the service quality dimension and items were identified from the literature and were reviewed by professionals and academicians. Pilot study was conducted with customers who were seen as similar to the population for the study .The purposes of pre-test was to refine the questionaries’ and to assess the validity to measure in wolaita Zone context.

Content validity:
For the present study, the content validity of the instrument was ensured as service quality dimensions and items were identified from the literature and exploratory investigation, and were thoroughly reviewed by professionals and academicians. The respondents provided comments on clarity of some items and confirmed face validity of items in the questionnaire.

Face Validity:
According to Gray (2004), researchers can benefit much from ascertaining the face validity of instruments by using some participants of the study. Since the two executives of insurance companies were the participants of this study, they had the chance to comment on this instrument.
So as to maintain the trustworthiness and believability of the study, sample participants’ of the users of insurances on the finding was obtained. They proved the credibility of the study by stating their agreement on the result obtained.

All possible attempts were made to make the study biased free. The researcher explored different review literatures and related studies on the anticipated issues to avoid craving on limited works. The different design methods were also read and understood so as to choose the best for the issue raised. Furthermore, the instrument was also chosen on the bases of the selected type of research design. Therefore, the dependability of the study were checked and found to be consistent.
3.9. Ethical Consideration
The study was give due consideration to ethical issues such as confidentiality and anonymity. Therefore, the participants were first communicated as to the purpose and significance of the study and that their responses was used only for academic purpose and kept confidential. They were also been assured that their names and their identity would remain anonymous
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION4.1. IntroductionThis chapter discusses the interpretation and presentation of the findings obtained from the data. The chapter presents the background information of the respondents and the interpretation of the analysis based on the objectives.

4.2. Questionnaire Return Rate.            There be stayed 352 (Three hundred fifty two) questionaries’ were distributed to customers of four insurance company found in Wolaita Zone. A total of 352 questionaries’ were returned i.e.100% of the distributed questionaries’ used for the analysis.

Table 5: Questionnaire returns Rate
Insurance Companies Questionnaire were distributed questionnaires Returned
Number of  questionnaire Returned Questionnaires  to be Return in% Percent of questionnaires returned
Medhin insurance company 109 109 109X100/109=100 30.96%
Nyala insurance company 83 83 83X100/83=100 23.57%
Nile insurance company 85 85 85X100/85=100 24.14%
Nice insurance company 75 75 75X100/75=100 21.30%
Total 352 352 100%
Source: (own survey, 2018)
The main objective of this study is the impacts of service quality dimension customers satisfaction by taking sample fromfour selected insurance companies Medin insurance company, Nyala insurance company, Nile insurance company, and Nice insurance company for these customers structured questionnaires were distributed as discussed on the table5.

4.3: Categorization of insurance satisfaction levelTable 6: Categorization of insurance satisfaction level
Category of Response Scale
Strongly Disagree=0-1 Very low satisfaction on taking quality service in insurance company
Disagree=1.01-2 Low satisfaction on taking quality service in insurance company
Undecided to agree=2.01-3 Neutral
Agree=3.01-4 High satisfaction on taking quality service in insurance company.

Strongly Agree=4.01-5 Very high satisfaction on taking quality service in insurance company.

Source: (own source, 20
According to table 6satisfaction level of customers are categorized as Very low satisfaction on taking quality service in insurance company (0-1) Strongly Disagree, Low satisfaction on taking quality service in insurance company (1.01-2) Disagree, Neutral (2.013) Undecided to agree, High satisfaction on taking quality service in insurance company (3.01-4) Agree, and Very high satisfaction on taking quality service in insurance company (4.01-5) Strongly Agree
4.4. Descriptive statistics analysis.4.4.1 Descriptive statistics of variables for insurance companies in wolaita Zone.Respondents of the study were asked different questions regarding to the effect of perceived service quality on customers satisfaction. The question was designed using to 5 point Likert scale where all the information to measure as the range of strongly disagrees to strongly agree.

Descriptive statistics is used to show the mean score and standard deviation of the variance which have been asked in the surveys and the mean and standard deviation of the insurance companies. i.e. The mean column shows the average answers for each independent variables and standard deviation shows the speediness of the answers. A low variance is a good signal, because it shows the questions were designed in such a way that most of the customers understand it in the same way.

Table 7.Descriptive statistics for service quality, service quality dimensions and customer satisfaction.NO Variables N Mean Standard deviation
1 Customer satisfaction 352 3.70 .991
2 Service Quality 352 3.52 .668
3 Tangibility 352 3.61 .833
4 Reliability 352 3.34 1.032
5 Responsiveness 352 3.71 .889
6 Assurance 352 3.46 .897
7 Empathy 352 3.52 .892
Source: (own survey, 2018)
According to the table 7 shows that the mean score of seven variables (one dependent variable and six independent variable of the 4 insurance companies has the valueService quality ranges about 3.52 tangibility ranges about 3.70, Reliability ranges about 3.61, Responsiveness ranges about 3.34, Assurance ranges about 3.71, Empathy ranges about 3.46, This shows that the commutated service quality customers satisfaction of insurance highest mean score falls under Assurance (3.71) followed by tangibility (3.70), and moderate value of customers satisfaction is Reliability(3.61), whereas the lowest mean score of insurance companies are Responsiveness & Empathy, 3.4, 3.46 respectively.
4.5. Inferential AnalysisIn this section, the results of inferential statistics are presented. For the purpose of assessing the objectives of the study, Pearson’s Product Moment Correlation Coefficient and regression analyses were performed. With the aid of these statistical techniques, conclusions are drawn with regard to the sample and decisions are made with respect to the research hypothesis.

4.5.1. Pearsoncorrelation analysisBased on questionnaires which were filled by the customers of selected insurance companies, the following Correlation analysis was made.

Table 8.Correlation analyses between service quality dimensions and customer satisfaction.Factors Customer satisfaction
Service quality Pearson correlation .353
Sig(2-tailed) .000
Tangibility Pearson correlation .357
Sig(2-tailed) .000
Reliability Pearson correlation .466
Sig(2-tailed) .000
Responsiveness Pearson correlation .305
Sig(2-tailed) .000
Assurance Pearson correlation .705
Sig(2-tailed) .000
Empathy Pearson correlation .119
Sig(2-tailed) .000
Source: (own survey, 2018)
Note: correlation is significant at the 0.01 level Sig (2-tailed)
The result of Pearson correlation analysis provided in table 8 Shows that service quality has significant and positive association with customer’s satisfaction. The result shows a coefficient of .353**at P=0.001(r=.353**, P<0.001) which shows that the service quality and customer satisfaction are correlated moderately.

The results of Pearson correlation analysis provided in the table 8 shows that Tangibility is significantly, positively correlated with customer satisfaction. The result indicates that, a coefficient of .357**at p=0.000(r= .357**, p<0.001) which shows that the two variables, independent & dependent variables that is Tangibility & customer satisfaction are positively correlated (35.7).  
The likely description of this finding that the insurance customer often looksto any tangibility indication which may be used as direction of service quality. The customers of insurance searches for material characteristics like gadgets, equipment and how staffs carry themselves (Seo, 2012) This component deals with the existence of the physical facilities and the perceived quality of the materials, personnel and equipment use by the service giver (Kandampully, 2007). Mesay sata (2012). Pearson correlation analysis provided in table 8Shows that Reliability has significant and positive association with customer’s satisfaction. The result shows a coefficient of .466**at P=0.001(r=.466**, P<0.001) which shows that the contracts Reliability and customer satisfaction are correlated.

The study confirms that Reliability and customer satisfaction are interrelated with each other. The possible explanation of this finding is that the insurance customer frequently looks to any consistency indication which may be used as direction of the service quality. The customers can consider the premises of insurance, the Insurance company promises to do something by a definite time, it does. or perhaps the existence of insurance company staff. Reliability is demarcated as the dependability, consistency and accuracy with which the service is performed by the provider (Kandampully, 2007).

It is about the business keeps its word. It is the ability to perform the promised service dependably and accurately or delivered its promises. The result of Pearson correlation analysis provided in table 8shows that Responsiveness is correctly correlated to customer’s satisfaction. The result shows a coefficient of .305**at P=0.001(r=.305**, P<0.001) which shows that the contracts Responsiveness and customer satisfaction are positively relationship (30.5%).

The study confirms that Responsiveness and customer satisfaction are definitely correlated with each other. The insurance customers prepare a friendly insurance, which is deliver prompt service to customer as promised to do something by certain time and without delay. Responsiveness is likely to have an important and positive effect on customer satisfaction in the insurance company Mengi (2009) also found that responsiveness is positively related to customer’s satisfaction.

The result of Pearson correlation analysis provided in table 8 also shows that Assurance have significant positive association with customer’s satisfaction. The result shows a coefficient of .705**at P=0.001(r=.705**P< 0.001) which shows that the contracts Assurance and customer satisfaction are interrelated. The coefficient of determination shows that there is a significant relationship of (70.5%).

According to this study there is a positive relationship between assurance and customer satisfaction in the insurance company. The insurance customers are competence to perform the service, politeness and respect for the customer, effective communication with the customer and the general attitude that the server has the customer’s best interest at heart (Fitzsimmons & Fitzsimmons, 2001).

Theanalysis of Pearson correlation resultedin the table8shows that Empathy quality is positively correlated to customer’s satisfaction. The result shows a coefficient of 0.119**at P=0.001(r=.119**, P<0.001) which shows that the contracts Empathy and customer satisfaction are significantly interrelated. The coefficient of determination shows that there is a positive relationship of (11.9%).

According to this study there is a significant relationship between Empathy and customer satisfaction in the insurance company. The result shows that the ability to make the customer feel welcome, particularly by the contact staff. Chase et al. (2001), empathy is the provision of caring, individualized attention to customers. Fitzsimmons and Fitzsimmons (2001) posit that empathy includes approachability, sensitivity, and effort to understand the customer’s needs. It is also pointed out empathy is significantly interrelated to customers satisfaction.

4.5.1.1. Calculating effect sizes of Independent variables on Dependent variable.

The correlation coefficient is a standardized measure of an observed effect, it is a commonly used to measure of the size of an effect and that values of ±.1 represent a small effect, ±.3 is an average effect and ±.5 is a great effect (Brooks 2008).
To determine whether the effect is practical or not the researcher need to compute what the effect sizes of each customers satisfaction by using correlation coefficients.

Table 9. The Extent (effect size) of each service quality dimensions on customer’s satisfaction
Factors (Correlation)2 Size of the effect (±.1) small effect, (±.3) medium effect and(±.5) large effect
Service quality .12 The effect of service quality is smallereffect than .3 and greater than +1 which is medium effect
Tangibility .14 The effect of Tangibility is smaller than .3 and greater than +1which is medium effect.

Reliability .28 The effect of Reliability is approximately equals to .3and greater than +1 which is medium effect
Responsiveness .025 The effect of Level of Responsiveness is less than .1which is no effect
Assurance .51 The effect of Assurance is greater than .5 which is great effect
Empathy .21 Empathy shows the effect size of less than .3 and greater than +1 which shows medium effect
Source: (own survey, 2018)
Table 9 shows that the independent variables Tangibility, Reliability, Responsiveness, Assurance and Empathy have a large effect on customer’s satisfaction,therefore that effect which represents the large requires the substantive further findings.

Normality of data was assessed using Skewness and Kurtosis statistics (Tabachnick&Fidell, 2007). According to this analysis, normality was deemed to be violated if the Skewness and Kurtosis values fell below +1 or Z Skewness & Z Kurtosis between+1.96. Results presented in table 11 reveal that normality assumption was supported.(Table 10). All of the Skewness and Kurtosis values fell in the stated region, hence we can summarize that data of our study is normal & we can apply parametric test.

4.5.2. Normalitytesting of dataTable 10. Normality testing assumption
Mean Standard deviation Skewness Kurtosis
Statistics Statistics Statistic Std. Error Statistic Std. Error
Service Quality 3.5262 .668 .025 .130 .312 .259
Tangibility 3.61 .833 .236 .130 .203 .259
Reliability 3.34 2.32 .535 .130 729 .259
Responsiveness 3.71 .889 .216 .130 .106 .259
Assurance 3.46 .897 .383 .130 .731 .259
Empathy 3.52 .892 .733 .333 .030 .259
Customer satisfaction 3.70 .991 .570 .130 .850 .259
Source: (own survey, 2018)
4.5.3. Linear Regression AnalysisIn order to determine the extent to which the explanatory variables explain the variance in the explained variable, multiple regression analysis was performed. In this study Multiple Liner Regression analysis has been carried out to show the effect between the five service quality dimension dimensions that can affect customer satisfaction in selected insurance companies.
Multiple Regression model should be tested by using four major Assumptions of it. These are co-linearity assumptions, the linearity assumptions, the normality assumptions and the homoscedasticity assumptions (Osbrnetet, al, 2002) four of major assumptions were tested by the researcher.

4.5.3.1. Model testing Independent variable Service quality & Dependent variable customer satisfaction
Table 11. Regression Model summary
Multiple R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson
.535a .286 .284 .838 1.765
Predictors: (Constant), Service quality.

(b) Dependent Variable: Customer satisfaction
Source: (own survey, 2018)
Table 11 shows that the independent variable (service quality) accounted for 28.6 % of the variance in customer satisfaction. Therefore, 28.6 % of the variation on customer satisfaction in insurance companies in wolaita zone can be explained by service quality.
Table 12. Analysis of Variance in customer satisfaction by service quality
Sum of Squares Df Mean Square F Sig.

Regression 98.650 1 98.650 140.368 .000
Residual 245.978 350 .703   Total 344.627 351   Dependent Variable: Customer satisfaction.

Predictors: (Constant), Service quality
Source: data calculated in SPSS version 20, (2018)
The table 12 shows that the proportion of variance explained in tables, (table 12) is significant or not. It also tells whether or not the overall effect of service quality (independent variable) on customer satisfaction is significant.
The sig. (p-value) = .000 which is below the .05. Hence, it can be concluded that the overall model is statistically significant, or that the service quality variable have a significant effect on the customer satisfaction.

Table 13. Regression Coefficient value of the independent variable Service quality
Unstandardized Coefficients Standardized Coefficients T Sig.

Std. Error Beta (Constant) .898 .240   3.737  .000
Service quality .793 .067 .535 11.848 .000
a. Dependent variable customer satisfaction
b. Predictors: (Constant), Service quality
Source own survey, 2018
Table 13 depicted that the standardized beta coefficient column shows the contribution of service quality variable in order to makes the model.  Value shows the variation in dependent variable due to one unit change in predictor and my research Value of service quality is .793 which means that one unit change in service quality will lead to .793 unit change is customer satisfaction of insurance service keeping all the predictors constant. Service quality has a positive and significant effect on customersatisfaction on insurance companies in Wolaita zone with a beta value (beta = 0.535), at 95 percent confidence level (p < 0.01).

Thus, the regression equation can be written as
-519056182731CS=.898+.793SQFig 7.Histogram of residualsSource: (Research analysis, 2018)
-897007616448 When we examine the normality of residual from histogram draw the residuals are not skewed, that means the assumption of normality is satisfied.

Figure 8. P-P plot of standardized residuals
Source: (Research analysis, 2018)
The researcher conducts a test of linearity assumption. Regression assumes that variables have a linear relationship (Berry and Feldman, 1985). There are several pieces of information that are useful to the researcher in testing this assumption: among those visual inspection of P-Plot was used by the researcher to have information about linearity. The researcher observes the figure of linearity and there are no outliers from the regression line. This implies as the linearity assumption on is fully satisfied.

-2211469939
Figure 9. Scatter plot of regression standard residuals for checking homoscedasticitySource: (Research analysis, 2018)
The researcher also carry out a test of homoscedasticity assumption, Homoscedasticity means that the variance of errors is the same across all levels of the independent variables. When the variance of errors differs at different values of the independent variable, heteroscedasticity is indicated. According to Berry and Feldman (1985) and Tabachnick and Fidell (1996) slight heteroscedasticity has little effect on significance tests; however, when heteroscedasticity is marked it can lead to serious distortion of findings. This assumption can be checked by visual examination of a plot of the standardized residuals (the errors) by the regression standardized predicted value.  The researcher visually examines homoscedasticity test and as it shows that, there is no problem of hetrocedasticty and the assumption of homoscedasticity is satisfied.

4.5.3.2 Model testing – Independent variable – Service quality &Service quality dimensions Tangibility, Reliability, Responsiveness, Assurance, & Empathy.

Table 14. Regression Model summary
Multiple R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson
.727 .528 .522 .685 1.880
predictors:(Constant),Empathy, Reliability, Assurance, Tangibility, Responsiveness
Dependent Variable: Customer satisfaction
Source: (own survey, 2018.)
As the table 14shows that the influence of each independent variables of the service quality dimensions on dependent variable customer satisfaction multiple regression models were accomplished. Square of correlation coefficient of all factors share is (72.7%) of factors of customer’s satisfaction. Therefore, the researcher found that Tangibility, Reliability, Responsiveness, Assurance and Empathy shares (72.7%) of service quality dimension on customer’s satisfaction in insurance company in wolaita zone.
This means that (27.3%) of the customer’s satisfaction affecting factors cannot be explained by this study variables Tangibility, Reliability, Responsiveness, Assurance and Empathy. Therefore, there must be also other variables which did not included in this study which have an influence on service quality dimension on customers’ satisfaction in the study area.

The adjusted (R2) value indicates the loss of predictive power or shrinkage, the adjusted value tells us how much variance in customer satisfaction would be accounted for if the model had been derived from the population from which the sample was taken, the adjusted R2 gives some idea of how well our model generalizes and ideally its value to be the same, or very close to, the value of R2. In the table the difference for the final model is small (in fact the difference between the values is (0.528-0.522) = 0.011 about (1.1 %). This shrinkage means that if the model were derived from the population rather than a sample it would account for approximately (1.1 %) less variance in the outcome. Therefore, the regression model results in significantly better service quality dimension on customers satisfaction than that of mean value of all service quality dimension of customers satisfaction.

Table 15. Analysis of Variance in customer satisfaction by service quality dimensions
Sum of Squares Df Mean Square F Sig.

Regression 182.080 5 36.416 77.516 .000
Residual 162.547 346 .470 Total 344.627 351 a. Dependent Variable: Customer satisfactionb. Predictors: (Constant), Empathy, Reliability, Assurance, Tangibility, Responsiveness
Source: (data calculated in SPSS version 20, (2018)
The table 15 shows that the proportion of variance explained in table, (table 14) is significant or not. It also tells whether or not the overall effect of the six independent variables on customer satisfaction is significant. The sig. (p-value) = .000 which is below the .05. Hence, it can be concluded that the overall model is statistically significant, or that the variables have a significant combined effect on the dependent variable.

Table 16.Regression Coefficient value of the Tangibility, Reliability, Responsiveness, Assurance and Empathy
Unstandardized Coefficient Standardized Coefficient T Sig.

Standard error Beta Constant .972 .067 .535 11.84 .000
Tangibility .141 .058 .119
2.430 .016
Reliability .114 .046 .119
2.499 .013
Responsiveness .013 .055 .012
.237 .812
Assurance .708 .049 .640
14.29 .000
Empathy .161 .047 .145 3.448 .001
Source: (own survey, 2018)
a. Dependent variable customer satisfaction
The table 16 shows that, all the explanatory variables included in this study can significantly explain at 95% confidence level to the variation on the dependent variable. The standardized beta coefficient column shows the contribution that an individual variable makes to the model.
Value shows the variation in dependent variable due to one unit change in predictor and my research Value of tangibility is .141 which means that one unit change in tangibility will lead to .141unit change is customer satisfaction of insurance service keeping all the predictors constant.
In this way all other can be interpreted value shows the gradient of the predictor. i.e. the beta weight is the average amount the dependent variable increases when the independent variable increases by one standard deviation (all other independent variables are held constant.

As these are standardized we can compare them. Thus, the largest influence on the customer satisfaction is from the Assurance (.640), Empathy (.145), and the next is Tenability and Reliability with the beta value of (.119).The importance of variables can be analysed using T value also which states that Assurance is higher T value that means Assurance is the most important predictor of customer satisfaction for insurance companies in Wolaita zone. On the other hand Responsivenesshaving significance value more than one significance level i.e. .05 is insignificant in predictor of customer’s satisfaction of insurance company in Wolaita zone.

Meanwhile Table 14 also indicates that Assurance, Empathy, Tenability and Reliability lave significantly effect on customer’s satisfaction because their significant values were less than 0.05 except responsiveness factors.

Thus, the regression equation can be written as
CS=.972+.141Ta+.114R+.013Res+.708Ass+.161E
Fig 10: Histogram of residuals
Source: (Research analysis, 2018)
When we examine the normality of residual from histogram draw the residuals are not skewed, that means the assumption of normality is satisfied.Figure 11. P-P plot of standardized residualSource: (Research analysis, 2018)
Finally, the researcher conducts a test of linearity assumption. Regression assumes that variables have a linear relationship (Berry and Feldman, 1985).

There are several pieces of information that are useful to the researcher in testing this assumption: among those visual inspection of P-Plot was used by the researcher to have information about linearity. The researcher observes the figure of linearity and there are no outliers from the regression line. This implies as the linearity assumption is fully satisfied.

9652029210Figure 12: Scatter-plot of regression standard residuals for checking homoscedasticity
Source: (Research analysis, 2018)
The researcher also carry out a test of homoscedasticity assumption, Homoscedasticity means that the variance of errors is the same across all levels of the independent variables. When the variance of errors differs at different values of the independent variable, heteroscedasticity is indicated. According to Berry and Feldman (1985) and Tabachnick and Fidell (1996) slight heteroscedasticity has little effect on significance tests; however, when heteroscedasticity is marked it can lead to serious distortion of findings.

This assumption can be checked by visual examination of a plot of the standardized residuals (the errors) by the regression standardized predicted value. The researcher visually examines homoscedasticity test and as it shows that, there is no problem of hetrocedasticty and the assumption of homoscedasticity is satisfied.

4.6. Checking Multy Co Linearity of Independent Variables, Tangibility, Reliability, Responsiveness, & Empathy.Table 17. Co-Linearity statistics
Variables Co-Linearity Statistics
Tolerance VIF
Tangibility .571 1.753
Reliability .600 1.667
Responsiveness .568 1.761
Assurance .679 1.472
Empathy .771 1.297
Source:(own survey, 2018)
Table 17.Shows the results of the multi-co linearity,when multi-co linearity appears, any variable’s effect can be predicted or accounted for by the other variables in the analysis (Hair et.al, 2006).

The primary concern was that as the degree of multi-co linearity increases, the regression model estimates of the coefficients become unstable and the standard errors for the coefficients can get wildly inflated. Therefore, this must be eliminated. The multi-co linearity problem will build interpretation of variables difficult or perhaps not possible, because it is hard to verify the clear relationships between dependent and predictor variables. The result of multi-co linearity, the assessments of the relative strength of the explanatory variables and their joint result are unreliable (Garson 2008). In keeping with Drazin and Rao (1999), the rule of thumb is that tolerance values bigger than 0.2 do not have multi-co linearity, whereas tolerance values between 0.2 and 0.1 reminds that researchers ought to read the results with caution. Tolerance values below 0.1 indicate a sever multi-co linearity.
Therefore, the tolerance values of all the explanatory variables as referred from Table 16 was greater than the cut off (0.20) which were Tangibility (.571), Reliability (.600), Responsiveness (.568), Assurance (.679), Empathy (.771) Therefore, the researcher can interpret it as there may be less degree of multi-co linearity in the variables due to some internal relationship but it was observed, as there were no serious multi-co linearity problems.

Other checking technique was variance inflation issue conjointly referred from Table 15,the variance-inflation factor (VIF) is that the reciprocal of tolerance. Garson (2008) recommend the rule of thumb is that when VIF is bigger than four were Multi-co linearity may be a drawback. However, a lot of lenient cut-off of points has been utilized in application, as an example, Dielman (2007) use 10 as the cut-off points. O’Brien (2007) indicates the principal common rule of thumb for a VIF is 10 that are regarded by several researchers as a symbol of severe or serious multi-co linearity issues. The VIF values of all the explanatory variables of customer satisfaction were less than the cut-off (rule of thumb) i.e. when VIF was greater than four (4). Thus, the VIF values of the independent variables were Tangibility (1.753), Reliability (1.667), Responsiveness (1.761), Assurance (1.472), Empathy (1.297) all having values below the cut-off. So, the researcher can interpret it, as there were nomulti-co linearity problems but some less degree of collinearly from natural relationships of the variables may be happened.

4.7. Hypothesis testingThe hypotheses of the research were tested based the results of regression coefficient.

Table 18. Test of Hypothesis
Hypothesis P–values Level of sig. Reference table Result
H1 .000 .05 13 H1 is accepted
H2 .016 .05 16 H2 is accepted
H3 .013 .05 16 H3 is accepted
H4 .812 .05 16 H4is rejected
H5 .000 .05 16 H5 is accepted
H6 .001 .05 16 H6is accepted
Source: Research survey, (2018)
H1: Service quality has a significant effect on customer’s satisfaction in insurance company.

The regression analysis from (table 13) of service quality (?=0.535and p<0.001) has a significant influence on the customer satisfaction at 99.99 % confidence level. Therefore, the research hypothesis is accepted.
H2:Tangibility has a significant effect on customer’s satisfaction in insurance company.

The result of multiple regression as presented in Table 16, Tangibility (?= 0.119 and p<0.05) has a significant positive influence on customer Satisfaction. Therefore, the researcher decided to accept the alternative hypothesis (H1) i.e., Tangibility has significant influence on customer Satisfaction in Wolita zone insurance companies and accept the alternative hypothesis (H0). This result is consistent with previous to that of (Anderson et a l., 1994; Anderson; Sullivan, 1993; Anderson; Mittal, 2000; Bruhn 2003; Gustafson; Johnson 2002; Gronholdt et a l., 2000; Rust et al., 1995) in the determinants of customer satisfaction in the insurance companies.

H3:Reliability has a significant effect on customer’s satisfaction in insurance company.

In Table 16 of multiple linear regression analysis displayed &revealed that Reliability factor had significantly and positively related to customer satisfaction with(?= 0.119 and p<0.05).This impliesthat we accept the hypothesis stating reliability has appositive and significant influence on customer Satisfaction in Wolita zone insurance companies . This study is supported by the findings of Eshetu and Mammo (2009) indicate that Reliabilityhas a significant influence on customer Satisfaction.

H4:Responsiveness has significant effect on customer’s satisfaction in insurance company.

Responsiveness has not significant impact on customer Satisfaction in Wolita zone insurance companies (table 16).It was expected Responsiveness is a good predictor of customer satisfaction in Wolita zone insurance companies. Regression analysis of the study as shown in Table 16 above, Responsiveness with the value of (?=0.012 and p>0.01) shows that responsiveness has no significant impact on customer satisfaction. Therefore, the research hypothesis proving Responsiveness has significant influence on customer satisfaction was rejected.
H5:Assurance has a significant effect on customer’s satisfaction in insurance company.

From the result of regression analysis of Assurance (?=0.64 and p<0.01) has a significant influence on the customer satisfaction. Therefore, the research hypothesis is accepted (table 16).
H6:Empathy has a significant effect on customer’s satisfaction in insurance company.

Result of regression revealed that(table 16) Empathy with (?=0.145 and, p<0.01) has a significant influence on the customer satisfaction. Therefore, the research hypothesis is accepted.

CHAPTER 5: FINDINGS, DISCUSSIONS AND RECOMMENDATIONS5.1. IntroductionThis chapter is organized under five sections the findings, discussion, conclusions and recommendations and scope for future researches of the study. The conclusions are based on the research objectives of the study. Based on the findings of the study recommendations are made to for the insurance companies and suggestion for other researchers.

5.2. Findings of researchThe mean distribution of variance indicates responseof 7 variables (one dependent variable and six independent variable of the 4 insurance companies has the value tangibility ranges about 3.70, Reliability ranges about 3.61, Responsiveness ranges about 3.34, Assurance ranges about 3.71, Empathy ranges about 3.46, This shows that the commutated service quality customers satisfaction of insurance highest mean score falls under Assurance (3.71) followed by tangibility (3.70), and moderate value of customers satisfaction is Reliability(3.61), whereas the lowest mean score of insurance companies are Responsiveness & Empathy, 3.4, 3.46 respectively.

Using skeweness and kurtosis was deemed to be tainted if the normality value, Skewness and Kurtosis fell below +1 or standardized Skewness & Kurtosis below +1.96. Results presented in my research reveal that normality assumption was supported. All of the Skewness and Kurtosis values fell in the stated region.

As multiple regression models was accomplished that the Influence of each independent variables of the service quality dimensions on dependent variable customer satisfaction. Square of correlation coefficient of all factors share is (72.7%) of factors of customer’s satisfaction. Therefore, the researcher found that Tangibility, Reliability, Responsiveness, Assurance and Empathy shares (72.7%) of service quality dimension on customer’s satisfaction in insurance company in wolaita zone. This means that (27.3%) of the customer’s satisfaction affecting factors cannot be explained by this study variables Tangibility, Reliability, Responsiveness, Assurance and Empathy. Therefore, there must be also other variables which did not included in this study which have an influence on service quality dimension on customers’ satisfaction in the study area.

In this study adjusted (R2) value indicates the loss of predictive power or shrinkage, the adjusted value tells us how much variance in customer satisfaction would be accounted for if the model had been derived from the population from which the sample was taken, the adjusted R2 gives some idea of how well our model generalizes and ideally its value to be the same, or very close to, the value of R2. The difference for the final model is small (in fact the difference between the values is (0.528-0.522) = 0.011 about (1.1 %). This shrinkage means that if the model were derived from the population rather than a sample it would account for approximately (1.1 %) less variance in the outcome. Therefore, the regression model results in significantly better service quality dimension on customers satisfaction than that of mean value of all service quality dimension of customers satisfaction.
In this study Multiple Liner Regression analysis has been carried out to show the effect between the five service quality dimension dimensions that can affect customer satisfaction in selected insurance companies. Multiple Regression model should be tested by using four major Assumptions of it. These are co-linearity assumptions, the linearity assumptions, the normality assumptions and the homoscedasticity assumptions (Osbrnetet, al, 2002) four of major assumptions were tested by the researcher.

Correlation coefficient analysis indicates that all the explanatory variables included in this study can significantly explain at 95% confidence level to the variation on the dependent variable. The standardized beta coefficient column shows the contribution that an individual variable makes to the model. Value shows the variation in dependent variable due to one unit change in predictor and my research Value of tangibility is .141 which means that one unit change in tangibility will lead to .141unit change is customer satisfaction of insurance service keeping all the predictors constant. In this way all other  can be interpreted value shows the gradient of the predictor. i.e. the beta weight is the average amount the dependent variable increases when the independent variable increases by one standard deviation (all other independent variables are held constant).
As these are standardized we can compare them. Thus, the largest influence on the customer satisfaction is from the Assurance (.640), Empathy (.145), and the next is Tangibility and Reliability with the beta value of (.119). The importance of variables can be analysed using T value also which states that Assurance is higher t value that means Assurance is the most important predictor of customer satisfaction for insurance companies in Wolaita zone. On the other hand Responsiveness having significance value more than one significance level i.e. .05 is insignificant in predictor of customer’s satisfaction of insurance company in Wolaita zone.

In my study the VIF values of all the explanatory variables of customer satisfaction were less than the cut-off (rule of thumb) i.e. when VIF was greater than five (5). Thus, the VIF values of the independent variables were Tangibility (1.753), Reliability (1.667), Responsiveness (1.761), Assurance (1.472), Empathy (1.297) all having values below the cut-off. So, the researcher can interpret it, as there were no multi-co linearity problems but some less degree of collinearly from natural relationships of the variables may be happened. The researcher also carry out a test of homoscedasticity assumption, Homoscedasticity means that the variance of errors is the same across all levels of the independent variables. When the variance of errors differs at different values of the independent variable, heteroscedasticity is indicated. The researcher visually examines homoscedasticity test and as it shows that, there is no problem of hetrocedasticty and the assumption of homoscedasticity is satisfied.

5.3. DiscussionsRegarding to multiple regressions as presented as service quality has highly significant positive association with customer’s satisfaction next to Assurance. This finding is supported by Tizazu et al., (2012). He found thatservice quality has a positive and significant effect on customer satisfaction in mekele town insurance companies.Service quality has been an essential strategic component for firms attempted to succeed or survive in today’s competitive. Another finding supported by (Asubonteng et al., 2014) Service quality as demarcated as the difference between customer’s expectations of service performance earlier to the service encounter and their perceptions of the service received i.e. Quality service has a positive effect on the customer’s satisfaction.
In this study Assurance is found a great significant they affecting customer satisfaction. This finding supported by a Munusamyet al, (2008). They reported that assurance has apositive and significant effect on customer satisfaction.
The research result shows that Tangibility indicated that has a significant positive influence on customer Satisfaction in Wolita zone insurance companies. In this research Tangibility is found to significant they affecting customer satisfaction. Al-Hawary et al., (2011) also supported this study. According to him tangibility has positive and significant relationship with customer satisfaction. This study also supported by (Anderson et a l., 1994; Anderson; Sullivan, 1993; Anderson; Mittal, 2000; Bruhn 2003; Gustafson; Johnson 2002; Gronholdt et a l., 2000; Rust et al., 1995) in the determinants of customer satisfaction in the insurance companies in Thailand.
The result of multiple linear regression analysis indicated that Reliability factor had significantly and positively related to customer satisfaction in insurance company. This implies that the researcher accepted the study stating reliability has appositive and significant influence on customer Satisfaction. This study is supported by the findings of (Curak & Gaspic, 2011; Eshetu & Mammo, 2009; Brown& Kim, 1993;Eisingerich and Bell, 2007;Teichert and Rost, 2003) indicate that Reliability has a significant influence on customer Satisfaction in Pakistaninsurance sector.

As multiple linear regression analysis indicated that Responsiveness has not significant impact on customer Satisfaction. It was expected Responsiveness is a predictor of customer satisfaction in insurance companies. Regression analysis of the study as indicated that Responsiveness has no significant impact on customer satisfaction.

The result of Pearson correlation analysis indicated that Assurance has highly significant positive association with customer’s satisfaction. The coefficient of determination shows that there is a significant relationship of assurance and customer satisfaction. According to this study there is a positive relationship between assurance and customer satisfaction in the insurance company.In this study Assurance is found a great significant they affecting.Therefore the finding of (Fitzsimmons & Fitzsimmons, 2001; Teichert and Rost, 2009;Curak & Gaspic, 2011; Brown & Kim, 1993;Schiffman and Kanuk, 2007; Fullerton, 2003) is consistent with this finding in Malessiya.

According to this study there is a significant relationship between Empathy and customer satisfaction in the insurance company. The result shows that the ability to make the customer feel welcome, particularly by the contact staff. Chase et al. (2001), empathy is the provision of caring, individualized attention to customers. Fitzsimmons (2001) suggests that empathy includes approachability, sensitivity, and effort to understand the customer’s needs. It is also pointed out empathy is significantly correlated to customers satisfaction.

5.4. ConclusionsBased on the major findings derived from the discussions and interpretation of the data collected through questionnaires and document analysis, the following conclusions are made.

Regarding to these research findings, overall service quality and all its dimensions such as tangibility, reliability, responsiveness, assurance and empathy have a significant and positive association with customer satisfaction in Wolita Zone insurance companies.Generally, based on the result of this research it is evidently observed that from service quality dimensions Assurance is the most influential factor of customer satisfaction in insurance companies in Wolaita zone .Empathy is the next important factor for customer satisfaction Both tangibility and reliability are the third important factors towards insurance companies in Wolita zone. However, Responsiveness is not found to have a significant effect on customer satisfaction. The predictor’s variables of service quality, Tangibility, Reliability, Assurance and Empathy were supported. Therefore, we can conclude that the four service quality dimensions are statistically explaining the variation in customer’s satisfaction.
5.5. RecommendationsFrom the major independent variables considered in the study Assurance has great impact on customer satisfaction in insurance company. Therefore, the insurance companies should improve the assurance dimension by providing training for employees to make them competent enough to deliver the service and the companies should have the customer’s best interest at heart.
Empathyalsoconsidered as one of the energetic factors influencing customer satisfaction. Thus, management of insurance companies ought to enhance the empathy dimension by treating customer with great respect, giving individual attention to customers, serving customers based on their specific needs and treating customers in a friendly manner. This is to say, the insurance companies management should focus on this factor in order to increase customer satisfaction. 
Based on the findings of this study reliability dimension was one of the important factors influencing customer satisfaction. The insurance company managers should enhance customers’ reliability on the insurance companies by fulfilling the service as promised, performing the service exactly at the first time, showing a keen interest in solving customers problems, providing the service at the promised time.

Tangibility dimension was also another important factors influencing customer satisfaction. Hence, the insurance companies should emphasize for introducing and updating equipment, materials, facilities and technology in order to ensure prompt service delivery and improve customer satisfaction. As well asto maintain and improve customer satisfaction insurance companies in Wolita zone ought to focus on predictors of the customer satisfaction such as four service quality dimension (i.e. tangibility, reliability, assurance and empathy) still have a strong impact on the customer satisfaction. Thus these factors should be thecenter of the strategy that is aiming at improving customer satisfaction.

5.6. Scope for further researchesThe future research may replicate this study in other service industries and other parts of the country; for instance in the hotel service, telecommunication service, educational institutions, hospitals and so on.
Future studies may also investigate possible mediation effects of customer satisfaction by using customer loyalty as dependent variable. By examining the relationship between service quality and the customer loyalty mediated by customer satisfaction.Furthermore this study includes only five service quality dimensions. However, there could be some otherrelevant factors that may affect customer satisfaction. Thus, futureresearch works which incorporate diversified service quality dimensionslike competence, courtesy, credibility and securityaccess communication and other variables like customer relationship will be advisable.

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APPENDICES
APPENDIX A: SUMMARY OF REVIEW OF LITERATURENO Name Researcher, 
Year and Country. Title of the Research Researched Variables
Aderaw Gashayie (2013) Ethiopia Determinants of Life Insurance in Ethiopia. I.V: Per capita income, expectancy,Real interest rate and Inflation
Research Finding: It is identified that insurance is determined by per capita income, expectancy, real interest rate and inflation. It is suggested that insurance industry in Ethiopia seriously consider these factors to breed growth in the insurance industry.

Bahia and Nantel (2000)
Dimension of Service Quality and Insurance service quality. I.V: assurance; access; price; tangibles; services portfolio and reliability Effectiveness.

Result of finding : They overlooked responsiveness in their research, claimed a lack of reliability even though they recognized SERVQUAL and all of its dimensions as the best known, most universally accepted scale to measure perceived service quality.

Caruna (2002) Madagascar. The relationship between service quality, customer’s satisfaction service quality, and service loyalty in Malta Bank. I.V: service quality, dimensions, assurance; access; price; tangibles; services portfolio and reliability Effectiveness. DV: customer’s satisfaction
Result of finding: Service quality, affects service loyalty thoroughgoing customer’s satisfaction.

Kheng et al,(2010) The impact of service quality on customer’s loyalty among bank customers in Penang Malaysia.  IV: SERVIQUAL model
Result of finding: The finding shows that improvements in service quality can enhance customer loyalty. The service quality dimensions that play significant role in the equation are reliability, empathy and assurance.

NO Name Researcher, Year and Country. Title of the Research Researched Variables
Ogunaike (2010), Nigeria Relationship between service quality and customer satisfaction D:V Customer satisfaction
I.V: service Quality (Reliability, Reliability, Assurance, Tangibles, Empathy).
Result of finding: The paper reveals that service quality has significant effect on customer satisfaction. The result also shows that there is a relationship between gender and customer service.

6. Mesay (2009) Bank Service Quality, Customer Satisfaction and Loyalty in Ethiopian Banking Sector. I.V: Five dimension of SERVPVPERF model.D.V: Customer satisfaction and their loyalty.

Result of finding: It tries to investigate the relationship between service quality, customer’s satisfaction and loyalty. The finding indicates that there is appositive correlation between dimension of service quality, customers satisfaction
7. Chan and Ma (1990) , Hong Kong Buying behavior and attitude to Insurances services. I.V: split Insurance behavior, Insurances usage, Insurances switched service quality.

Result of finding: They have found service quality to be significant.
8. (Newman (2001) interrogated SERQUAL: a critical assessment of Service quality management in high street retail Insurances I.V: Relationship building and word of mouth.

D.V: customer satisfaction
Result of finding: It is also noted that customer satisfaction is retention, which leads to repeat purchase and increased scope for relationship building and word of mouth recommendation.
Source: (Compiled by Researcher from different researches and Articles, 2018)
NO Name Researcher,
Year and Country. Title of the Research Researched Variables
9. Parasuraman, A., Zeithaml, V.A., & Berry, L.L. (1988). SERVQUAL: A multiple item scale for measured customer perceptions of service quality. D.V: Customer Expectation.

Result of finding: Customers form their expectations from their past experience, friends’ advice, and marketers’ and competitors’ information and promises.
10. Howcroft, Hamilton and Hewer(2002),UK Consumer Attitude and the Usage and Adoption of Home-Based Insurance services in the UK. D.V: Customer Satisfaction.

Result of finding: -It is identified that variables such as age and other demographics had impact on customer selection and satisfaction.
11. Jamal and 
 Naser (2002) customer satisfaction and retail Insurances: An Assessment of Some of the Key Antecedents of Customer satisfaction in retail Insurance I.V: age, type of business, gender D.V: customer Satisfaction
Result of finding: Used a type of regression analysis, the investigators indicated that both core and relational dimensions of service quality appearing to be linked to customer satisfaction used such variables as age, type of business, gender, etc. Findings also indicated that expertise is negatively related to satisfaction
12. Laser et al, (2000) Service Quality perspective and satisfaction in private Insurances sector. I.V: SERVQUAL model
Result of finding: The finding is Technical/ functional Quality model is better than SERVQUAL model in predicated customer satisfaction when customer were actively or highly interested in service delivery.

Source: (Compiled by Researcher from different researches and Articles, 2018)
NO Name Researcher, Year and Country. Title of the Research Researched Variables
13. Kelifa et al,(2011) The effect of quality of service, customer’s loyalty study on hotel service in Aden. I.V: Service Quality DV: Customer Loyalty
Result of finding: The finding revealed that reliability and stability, and to identify the impact of dimensions of service Quality on customers loyalty has positive relationship between them.

14 Reich held F, F. (1996) Boston Impacts of service Quality & the relationship between Customer Perception, expectation D.V: Customer Perception, expectation
D.V: Customers’ perceptions and expectations of the quality of the products and services.

Research Finding: The Researches states about service quality in customer perception were independent, but it provides some useful insights for organizations to develop their marketed strategies.

15. llhaamie (2010)
Malaysia Level of service quality, expectation and perception of external customers towards the Malaysian public services IV: SERVQUAL model (service quality dimension).

Research Finding: Found that tangible is the most important dimension and external customers have the highest expectation on the reliability of the Malaysian public services
16 Rahaman al (2010)
Bangladesh Factors Determining service quality of the private commercial bank in Bangladesh. I.V service quality model 
D.V. customer satisfaction.
Research Finding: One of the primary causes of service quality design failure is the lack of understanding of the evolving need and preferences of targeted customers.
Source: (Compiled by Researcher from different researches and Articles, 2018)
APPENDIX B: QUESTIONNAIREDear respondent,
Wolaita Soddo University College of Business and Economics Department of Management
MBA Program
Questionnaire requests to be completed service quality on customer satisfaction in insurance companies the study conducted on wolaita zone.
Dear participants
My name is Dawit Dalga Guto. I am a postgraduate student in the department of management: MBA program at Wolaita Soddo University. Now I am conducting a research in the area of “the impact of service quality on customer satisfaction in insurance companies: A study conducted on wolaita zone with the aim of considering the dimensions of service quality of customer satisfaction which have an impact on the customers using the service from the insurance companies. Therefore your answers are very important and valuable for the successful completion of the study.

Please fill out all of the questions to the best of your knowledge. The information was provided ; kept confidential and were used only for academic purpose.

I thank you in advance for your cooperation.

.

Impact of service quality on customer satisfaction in insurance companies in Wolaita zone
Questionnaires using 5 point Lickert scale below 
Strongly disagree (1), disagree (2), undecided (3) Agree (4) Strongly Agree (5)
1. SERVICE QUALITY
NO STATEMENTS SD
(1) DA
(2) UD
(3) A
(4) SA
(5)
1.1 The service of your company is appropriately located 1 2 3 4 5
1.2. Your insurance company provides Special services or counters for elderly/disabled 1 2 3 4 5
1.3 Clear guidance and information sign on how to use the company services and facilities are available in your insurance company. 1 2 3 4 5
1.4 It is easy to get any service in your insurance company. 1 2 3 4 5
2. TANGABLITY
NO STATEMENTS SD
(1) DA
(2) UD
(3) A
(4) SA
(5)
1.1 My insurance company has providing visually attractive materials and facilities associated with the service. 1 2 3 4 5
1.2. Insurance company staff appears to be neat ; Professional to attract customers.  1 2 3 4 5
1.3 Insurance company has modern looking updated equipment, fixtures and facilities. 1 2 3 4 5
1.4 The insurance company has appearance of the physical service is in line with the kind of facilities provided. 1 2 3 4 5
1.5 The insurance company has guidance signs indicating as to which counters are offering which services 1 2 3 4 5
1.6 The advertisement in broadcasts or relatives is effective for me to use the service of this insurance company 1 2 3 4 5
1.7 The insurance companys physical facilities are attractive and modern. 1 2 3 4 5
3. RELIABLITY
NO STATEMENTS
SD
(1) DA
(2) UD
(3) A
(4) SA
(5)
2.1 My insurance company provides promised services as per the set Schedule. 1 2 3 4 5
2.2. The insurance company providing services right the first time. 1 2 3 4 5
2.3 The insurance company employees show genuine interest in Solving customers’ problems.  1 2 3 4 5
2.4 The Insurance company maintains error-free records. 1 2 3 4 5
2.5 The Insurance company provides its services at the time it promises to do so. 1 2 3 4 5
2.6 If the Insurance company promises to do something by a definite time, it does. 1 2 3 4 5
2.7 The insurance company provides indemnity without hassle. 1 2 3 4 5
4. RESPONSSIVNESS
NO STATEMENTS SD
(1) DA
(2) UD
(3) A
(4) SA
(5)
3.1 My insurance company communicates the customers of the nature and schedule of services available in the organization. 1 2 3 4 5
3.2. My insurance company is ready to respond to customer requests. 1 2 3 4 5
3.3 The insurance company provides prompt service to customers.  1 2 3 4 5
3.4 Employees of Insurance company are always willing to help customers. 1 2 3 4 5
3.5 Insurance companies’ employees were never too busy to respond to customer’s request. 1 2 3 4 5
3.6 The insurance company’s management is accessible, listen to and provide honest responses to customer’s inquiries. 1 2 3 4 5
5. ASSURANCE.

NO STATEMENTS SD
(1) DA
(2) UD
(3) A
(4) SA
(5)
4.1 The insurance company agents and employee have the proper knowledge and competence  in providing services 1 2 3 4 5
4.2. The insurance company staffs that instill confidence in customers through proper behavior. 1 2 3 4 5
4.3 The insurance company making customers feel safe  and  secure in  their transactions.  1 2 3 4 5
4.4 The insurance company is consistent in providing quality service. 1 2 3 4 5
4.5 My insurance company fulfills its obligations to customers. 1 2 3 4 5
4.6 Employees of the insurance company show positive respect to customers. 1 2 3 4 5
4.7 The insurance company making customers fee and safe and secure in their transactions  1 2 3 4 5
NO STATEMENTS SD
(1) DA
(2) UD
(3) A
(4) SA
(5)
5.1 My insurance company gives caring and individual  attention to customerby having customer’s best interests at heart. 1 2 3 4 5
5.2. The agents and employees who understand the specific needs of their customers. 1 2 3 4 5
5.3 My insurance company has convenient operating hours  and days of the branches for the customers.  1 2 3 4 5
5.4 The insurance company maintains strong customer relationship 1 2 3 4 5
5.5 My insurance company always informs the customers about new and  attractive schemes and always suggests the customers on the taking correct decision. 1 2 3 4 5
6. EMPATHY
7. CUSTOMERS SATISFACTION.

NO STATEMENTS SD
(1) DA
(2) UD
(3) A
(4) SA
(5)
6.1 Do you intend to continue using this insurance service? 1 2 3 4 5
6.2 Do you recommend this insurance company too their people? 1 2 3 4 5
6.3 Would you like to stay in this insurance company next time? 1 2 3 4 5
6.4 Do you like repurchase many services in this insurance company? 1 2 3 4 5
6.5 Would you encourage friends and relatives to visit this  insurance company? 1 2 3 4 5
6.6 Do you think the performance in this insurance company is satisfactory? 1 2 3 4 5
6.7 Would   you   consider   insurance company as the firstchoice when you   need the insurance service? 1 2 3 4 5
Source: (own survey, 2018)
APPENDIX C: RELIABILITY TEST FOR THE INSTRUMENT Table C 1: Reliability Statistics for Customer satisfaction
Cronbach’s Alpha Cronbach’s Alpha based on Standardized Items N of Items
.961 .962 7
Table C-2: Item –Total Statistics for Customer satisfaction
STATEMENTS Scale mean of item Delete Scale Variance  ifitem Deleted Corrected Item Totl Correlation Squared multiple Correlation Cronbach’s Alpha if Item Deleted
Intended to continue using this  insurance service. 23.93 26.133 0.771 .716 0.962
The recommend this insurance  company toothier people. 23.97 24.999 0.908 .855 0.953
To like to stay in this insurance  company next time. 23.93 23.995 0.834 .754 0.958
To repurchase many services in this insurance company. 23.90 24.162 0.868 .848 0.955
You encourage friends and relatives to visit this insurance company. 23.83 24.282 0.892 .821 0.953
The performance in this insurance company is satisfactory. 23.73 24.340 0.869 .807 0.955
The insurance company as the first choice when you need the insurance services 23.70 23.459 0.923 .951 0.951
Table C-3: Item – Reliability Statistics for service quality
Cronbach’s Alpha Cronbach’s Alpha based on Standardized Items N of Items
.960 .960 4
Table C-4: Item –Total Statistics for service quality
Statements Scale mean of item Delete Scale Variance  ifitem Deleted Corrected Item Totl Correlation Squared multiple Correlation Cronbach’s Alpha if Item Deleted
The service of your company is appropriately located 23.93 26.133 0.771 .716 0.962
Your insurance company provides Special services or counters for elderly/disabled 23.97 24.999 0.908 .855 0.953
Clear guidance and information sign on how to use the company services and facilities are available in your insurance company. 23.93 23.995 0.834 .754 0.958
It is easy to get any service in your insurance company. 23.90 24.162 0.868 .848 0.955
Table C-5: Reliability Statistics for Tangibility
Cronbach’s Alpha Cronbach’s Alpha based on Standardized Items N of Items
.920 .920 7
Table C-6: Item –Total Statistics for Tangibility
STATEMENTS Scale mean if item delete Scale Variance if item Delete Corrected Item TotalCorrelationSquared multiple Correlation Cronbach’s Alpha if Item Deleted
My insurance company has providing visually attractive materials and facilities associated with the service. 23.07 25.03 .800 .702 .903
Insurance company staff appears to  be neat & professional to attract customers 23.13 22.80 .902 .873 .891
Insurance company has modern looking updated equipment, fixtures & facilities 23.07 23.44 .815 .769 .901
The insurance company has appearance of the physical services is in line with the kind of facilities provided. 22.97 25.75 .713 .615 .911
The insurance company has guidance signs indicating as to which counters were offering which services 23.00 24.75 0.719 .778 0.911
The advertisement in broadcasts or  relatives is effective for me to use the service of this insurance company. 23.13 25.91 0.615 .544 0.921
The insurance companys physical facilities  were attractive and modern 22.83 25.79 0.704 .737 0.912

Table C-7: Reliability Statistics for Reliability (Indepenendant variable)
Cronbach’s Alpha Cronbach’s Alpha based on Standardized Items N of Items
.885 .887 7
Table C-8: Item –Total Statistics for Reliability
STATEMENTS Scale mean if item Deleted Scale Variance if item Deleted Corrected Item-Total Correlation Squared multiple Correlation Cronbach’s  Alpha if Item Deleted
My insurance company provides promised services as per the set Schedule. 22.60 23.214 0.636 .570 0.875
The insurance company providing services right the first time. 22.73 20.823 0.71 .596 0.866
The insurance company employees show genuine interest in Solving customers’ problems. 22.43 20.323 0.700 .531 0.866
The Insurance company maintains error-free records. 22.80 20.752 0.715 .553 0.865
The Insurance company provides its services at the time it promises to do so. 22.57 21.389 0.651 .546 0.872
If the Insurance company promises to do something by a definite time, it does. 22.53 21.068 0.690 .581 0.887
The insurance company provides indemnity without hassle. 22.63 21.568 0.657 .588 0.871
Table C-9: Reliability Statistics for Responsiveness
Cronbach’s Alpha Cronbach’s Alpha based on Standardized Items N of Items
.898 .876 6
Table C-10: Item –Total Statistics for Responsiveness
STATEMENTS Scale mean if item Deleted Scale Variance if item Deleted Corrected Item Total Correlation Squared multiple Correlation Cronbach Alpha if Item Deleted
My insurance company communicates the customers of the nature and schedule of services available in the organization. 19.67 19.540 0.617 .449 0.895
My insurance company is ready to respond to customers’ requests. 19.60 15.697 0.792 .550 0.871
The insurance company provides prompt service to customers. 19.60 16.524 0.793 .644 0.869
Employees of Insurance company were always willing to help customers. 19.50 17.983 0.729 .660 0.880
Insurance companies’ employees were never too busy to respond to customers’ request. 19.53 183740 0.677 .588 0.887
The insurance company’s management is accessible, listen to and provide honest responses to customer’s inquiries. 19.43 17.289 0.759 .554 0.875
Table C-11: Reliability Statistics for Assurance
Cronbach’s Alpha Cronbach’s Alpha based on Standardized Items N of Items
.813 .815 7
Table C-12: Item –Total Statistics for Assurance
STATEMENTS Scale mean if item Deleted Scale Variance if item Deleted Corrected Item Total Correlation Squared multiple Correlation Cronbach’s Alpha if Item Deleted
The insurance company  agents & Employee have the proper knowledge& competence  in providing services 23.60 28.869 0.627 .456 .916
The insurance company staffs that instill confidence in customers through proper behavior. 23.53 26.740 0.771 .664 .903
The insurance company making customers feel safe and  secure in their transactions.  23.73 25.651 0.764 .751 .902
The insurance company is consistent in providing quality service. 23.77 27.633 0.504 .565 .931
My insurance company fulfills to obligations to customers. 23.67 23.747 0.906 .764 .886
Employees of the insurance company show positive respect to customers 23.60 24.455 0.857 .745 .892
The insurance company making customers fee and safe and secure  in their transactions  23.70 24.355 0.827 .709 .895
Table C-13: Reliability Statistics for Empathy
Cronbach’s Alpha Cronbach’s Alpha based on Standardized Items N of Items
.902 .903 5
Table C-14: Item –Total Statistics for Empathy
STATEMENTS Scale mean if item Delete Scale Variance if item Deleted Corrected Item-Total Correlation Squared multiple Correlation Cronbach’s Alpha if Item Deleted
 My insurance company gives carrying and individual attention  to customers by having customer’s best interests at  heart.  15.00 14.276 0.773 .659 0.878
The agents and employees who understand the specific needs  of their customers. 14.77 14.392 0.702 .617 0.891
My insurance company has convenient operating hours and days of the branches for the customers 15.13 13.361 0.763 .614 0.878
The insurance company maintains strong customer relationship. 14.90 13.266 0.763 .712 0.878
My insurance company always informs the customers about  new and attractive schemes andalways suggests the customers on the taking correct decision. 15.13 13.430 0.782 .660 0.874
Source: (own survey, 2018)