Effects of Service Quality on Customer Satisfaction in Nib Insurance Company (S.Co)

Abstract

Customer satisfaction is a critical factor for service organization like insurance companies. Company’s sustainable growth revolves around the satisfaction of customers. Thus, this study focused to investigate the effect of service quality on customer satisfaction and to examine the relationship between the five service quality dimensions and customer satisfaction. In addition it tries to assess the level of customer satisfaction and quality service offered by NIC. In order to attain the research objective, descriptive and explanatory research designs have been employed and both primary and secondary sources of data were used. Questionnaire was designed and categorized under five dimensions of the SERVEPERF model for 391 customers. Then the collected data analyzed with the help of SPSS version 26. Background information of respondents; and respondents’ perception on service quality and satisfaction are analyzed under descriptive statistics such as frequency, mean and standard deviation techniques. Besides, to investigate relationship between service quality dimensions and customer’s satisfaction and the impacts of service quality dimensions on customer satisfaction correlation and regression analysis techniques are applied respectively. The finding indicates that the performance of NIC in providing quality service is high and customers are satisfied. The result also indicates that all service quality dimensions have a positive correlation with customer satisfaction while Reliability and Tangibility have significantly correlated. The research proves that service quality has a positive and significant effect on customer satisfaction while reliability, responsiveness and assurance dimensions plays the most important role in customer satisfaction level. So NIC can improve its customer satisfaction level more by focusing on these service quality dimensions.