Effect of service quality on customer satisfaction in Tanzanian energy industry: A case of TANESCO residential customers in Nyamagana District

Abstract

This study considers that service quality dimensions including reliability, assurance, tangibility, empathy and responsiveness have enormous contribution to customer satisfaction. This study aimed at assessing the effect of service quality dimensions on customer satisfaction in Tanzania Energy Industry. Data was collected from 186 residential customers of TANESCO in Nyamagana district who were selected using stratified sampling technique. This study used questionnaire and documentary review to gather information concerning the topic under study. Quantitative data were analyzed using descriptive statistics and inferential statistics including Pearson correlation and regression analysis in order to determine the effect of each service quality dimension on customer satisfaction. Regression analysis results indicated that service quality dimensions including reliability, assurance, tangibility, empathy and responsiveness have positive significant influence on customer satisfaction. The findings also indicated that customer expectations of TANESCO services in accordance to service quality dimensions are bigger than their perceptions of services they receive from the company. This study strongly recommend improvement of TANESCO service delivery in terms of service reliability, assurance, tangibility, empathy and responsiveness as a way to achieve customer satisfaction.