TITLE OF THE RESEARCH: ASSESS THE FACTOR AfFECTING

SERVICE QUALITY ON EEPCO,IN CASE OF YIRGALEM DISTRICT

A SENIOR ESSEY SUBMITTED TO THE DEPARTMENT OF MARKETING

MANAGEMENT HU PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR OF
BACHELOR ARTS (BA) DEGREE IN MARKETING MANAGMENT

HAWASSA UNIVERSITY

COLLAGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT

PREPARED BY: ANIMAW KEFALE

ID NO: HU/0057/07

ADVISOR :GIRMA BALCHA(MBA)

June, 2017

YIRGALEM ,ETHIOPIA

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 DECLARATION

I undersigned declare that this research is my original and has not been
presented for a degree in any university, and that all sources of materials
used for these have been fully acknowledged.

Declared by: Animaw kefale

Signature: _______________________

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 ACKNOLEGMENT

Above all, I praise God who guided me with his everlasting forgiveness throughout my life. I
would like to express sincere gratitude to my research adviser Girma Balcha (MBA). I am
indebted to Hawassa University; college of Business and Economics. Finally, I wish to
express my gratitude to my father and mother and also my brothers and sister for their love,
affection, trust, support and encouragements thought out my life.

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 ABSTRACT

This study was conducted on assessing the service quality of EEPCO, Yirgalem district. It was
try to assess the factor that affect the service quality, the activities carried out by EEPCO
service provision looks like to provide quality service. The source of data could be both
primary and secondary sources and it was used open and close ended questionnaires and
unstructured interview for manager as a method of data collection the study was adopting
convenience sampling techniques. The conclusion of the major finding on assessing service
quality of EEPCO Yirgalem district, there is a lot of problems about EEPCO yirgalem
district, in giving service. Like misconnection of power, high amount of payment, high time
consumption, lack of advanced technologies and employees could not adapt with the system.
EEPCO faces different problems to ensure and giving quality service and to achieve its
objective. At the end of the study the conclusion and the recommendation was given for the
problem identified.

. List of acronyms

EEPCO- Ethiopian electric power corporation

SQ- service quality

P-perception

E- Expectation

SERVQUAL-service quality

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Table of content Page

Diclaretion....................................................................................I

Acknowledgement.......................................................................II

Abstract........................................................................................III

Acronyms......................................................................................Iv

CHAPTER ONE

1 Interoduction............................................................................1

1.1 Background of the study.......................................................................1

1.2 Background of the organization........................................................... 2

1.3 Statment of the problem and basic research question........................2

1.4 Objective of the study.............................................................................2

1.4.1 General objective.................................................................................2

1.4.2 Spacific objective................................................................................3

1.5 Significance of the study........................................................................3

1.6 Scope of the study.................................................................................3

1.7 Limetation of the study..........................................................................3

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1.8 Organozation of the study.....................................................................3

CHAPTER TWO

2 LITERACHER RIViEW.......................................................5

2.1 Definition and concepts of service.......................................................5

2.2 Characterstics of service.......................................................................6

2.3 Types of service and service environment ...........................................6

2.3.1 The impact of service environment on consumer...........................7

2.4 Service quality........................................................................................8

2.5 Customer perception and expectation....................................................9

2.5.1 Service quality dimensions...................................................................9

2.6 Factor affecting service quality...............................................................11

2.7 Service quality mesurment......................................................................11

2.8 Servuce quality verses customer satisfaction........................................11

CHAPTER THREE

3. RESEARCH METHODOLOGY......................................................12

3.1 Research design..........................................................................................12

3.1 Data source and type...................................................................................12

3.3 Targate population........................................................................................12

3.4 Sample size and sampling technique...........................................................12

3.5 Data collection instrument.............................................................................13

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3.6 Data analysis and interperetation method....................................................13

CHAPTER FOUR

4. DATA ANALYSIS AND INTERPERETATION..................................14

Table 4.1. Demographic characterstics of respondants.....................................14

Table 4.2. Respondats view to the quality and accessibility of service..............16

Table 4.3. Respondants satisfaction with the service..........................................17

Table 4.4. Respondats interest with the service provision....................................19

Table 4.5. Respondants work experiance...............................................................21

Table 4.6. Respondants service provision experiance...........................................21

Table 4.7. Customer compliant handling practice..................................................23

CAPTER FIVE

5. CONCLUSION AND RECOMMENDATION.........................................25

5.1 Conclusion..........................................................................................................25

5.2 Recommendation...............................................................................................25

REFERENCE

APPENDIX

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 CHAPTER ONE

1.1 Background of the study

In today’s constantly changing business environment providing a superior service quality,

through an adequate and strong focus on customer (chiara G, 2007) is one of the key factors
enabling firms to gain a lasting competitive advantage in winning the market. For this, know
a day’s marketers, according to (R.Ladhari, 2011) are trying to focus more on a continuous
monitoring and evaluation of service quality, involving various innovative and offerings and
service developments which have advocate influence on customer service experiences.
Because for instance, better service quality increases perceived service value and
satisfaction, improve the service provider’s customer

Retention financial performance, and also enhance a firm’s corporate image (Nguyen and
Lebalanc, 1998)

Providing a quality service is there for about meeting and even, depending on the company’s
capability, excelling customer’s expectation. In other words it is the difference between
expectation prior to the service encounter and the actual perceived service that the
company provides marketing it to brilliant on the customers satisfaction service experience
(Gronroos, 2008). Thus, company’s in various service industry have to be able to measure
actual service quality in order to take any corrective measures in relation to improving the
both the technical and the functional quality, such as by introducing new and innovative
product service futures revisiting the established relationship, etc. one way of conducting
the service quality measurement, which is quality popular, is through the application of
SERVQUAL. It basically measures quality in terms of five dimensions of service, namely the
tangibles, reliability, responsiveness, assurance and empathy. Therefore, this paper will try
to analyze and assess the challenges service quality in Ethiopia electric power corporation
(EEPCO). Our country Ethiopia is one of the countries in which difference service
organizations are established and giving service. For those service organizations EECPO is
one which is established in Southern region Yirgalem town to give service and gain profit.
The EECPO gives service the electric power to the customer, the customer uses the power to

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several things and pay by bill where they use. So this study will try to assess the factors that
affecting service quality.

1.2.Background of the organization

Our country Ethiopia is one of the countries in which different service organizations are
establishd and giving service.EEPCO was one of those service organizations which was found
in 1890 with their own duties to give electric power to the customers.EEPCO was its own
distingushed history of providing electric power to the customers of ethiopian people.It was
one of the public company which is mainly perform their activities and legaly established
in1922 in Ethiopia.EEPCO is one which is established in Yirgalem district which is located to
the SNNP of the region.It was established 1942G.C.Now adays this public campany is awell
maneged service campany and giving service to the customers.

1.3 Statement of then problem and basic research question

The main objective any service business organization would making profit by providing good
service to customer EEPCO A district was one of the service business organization which
facilitate investment by providing electric power in giving and delivering service quality.
Service quality was very important because quality service gives or gain profit and attraction
of customer for organization. Product or service EEPCO Yirgalem district would be does know
about factor affecting the service quality but there was no situation found by the
organization the researcher describes the role of service quality in developing customer
satisfaction EEPCO Yirgalem district, via answering the following basic questions:

1. What are the factors that affect the service quality?

2. What activity carried out by the EEPCO carry out to handle its customer?
3. What the EEPCO service provision looks like?

1.4 Objective of the study

1.4.1General objective
The general objective of this study was to assess the factor affecting service quality in
EEPCO, Yirgalem district.

1.4.2 Specific objectives:

1. To investigate the factors that affect service quality.
2. To identify the service provision approach by EEPCO Yirgalem district
3. To examine the activities of EEPCO carries out to handle its customer

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1.5 Significance of the study
For the organization it would provide relevant information about the service quality to
concerned bodies and important for the decision makers of the organization and the
managers of the EEPCO, Yirgalem district to increase service quality and developing
customer satisfaction and also for the researcher this study gives experience to the
researcher how to conduct or study research and gives deep understanding for researchers
about factors affecting the service quality and also it would be used as a corner stone for
researcher to make for their analysis on this subject. To the other researcher it would
provide concrete information for then readers the factors affecting the service quality.

1.6 Scope of the study

Because of the scarce resources available and time constraints to investigate the study, the
researcher would restrict to assess the factor affecting service quality in case of EEPCO,
Yirgalem district.

1.7 Limitation of the study

While conducting the study the researcher was fased the following limitations

Difficalty indistributing questionaries to the selected employees.

Some respondants were not interested to fill open ended questions.

Since the researcher is full time student,it encountered constraints in time and budget
constraints.

By limiting the scope of the study,the researcher overcome the problem.

1.8 Organization of the study

This study consists of five chapters.The first chapter deals with the introduction part of the
study. Here,statment of the problem,questionares,objective of the study,significans,scope
and limitation of the study were included.Chapter two focus on literature review of
important conceptes related to the study.The third chapter deals the methodology used for
the research.Chapter four focuses on results and discussion and finaly chapter five
represent,summary,conclussion and recommendation.

CHAPTER TWO

LITERACHER REVIEW

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2.1. Definition and concepts of services

The world economy nowadays is increasingly characterized as a service economy. This is

primarily due to the increasing importance and share of the service sector in the economies of
most developed and developing countries. In fact, the growth of the service sector has long
been considered as indicative of a country’s economic progress. Economic history tells us that
all developing nations have invariably experienced a shift from agriculture to industry and
then to the service sector as the main stay of the economy. This shift has also brought about a
change in the definition of goods and services themselves. No longer are goods considered
separate from services. Rather, services now increasingly represent an integral part of the
product and this interconnectedness of goods and services is represented on a goods-services
continuum (Zeithaml and Bener, V, 5, 2003).

Different authors give different definitions for service. Zeithaml and Betner (2003) gave short
definition “services are deeds, processes, and performance”. Broadly it includes all economic
activities whose output is not a physical product or a construction, is generally consumed at
the time it is produced and provides added value forms (such as convenience, amusement,
timeliness, confront, or health) that are essentially give concerns for its first purchaser.
Service is activities, benefits and satisfactions which are offered for sale or are provided in
connection with the sale of goods. It involves some interaction with customer or property in
their possession, and does not result in a transfer of ownership (McDonald and Payne, 2003).

A concise and consistent definition of service as, it is a set of one time consumable and
perishable benefits that delivered from the accountable service provider, mostly in close
coactions with his internal and external service suppliers, effectuated by distinct functions of
technical systems and by distinct activities of individuals, respectively, commissioned
according to the needs of his service consumers by the service customer from the accountable
service provider, rendered individually to an authorized service consumer at his/her dedicated
trigger, and, finally, consumed and utilized by the triggering service consumer for executing
his/her upcoming business or private activity.

The Ethiopian services sector comprises of electricity, water, construction, road, rail, ocean,
and air transport, communication, tourism, hotel and restaurants, financial services, real
estate, health, education and other services. They are directly relevant to achieving social
development objectives and having a significant effect on the overall investment climate thus

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makes an important contribution to GDP in the country, providing jobs, inputs and provides
crucial inputs for the rest of the economy (Ibid p92).

2.2. Characteristics of services

There are four major characteristics that greatly affect design of marketing. Includes:

1. Intangibility: - Services are intangible and do not have a physical existence, hence it
cannot be seen, tasted, felt or smelled before they bought. To reduce uncertainty, buyers
will look for signs or evidence of the service quality.This is most defining feature of a
service and that which primarily differentiates it from a product.
2. Heterogeneity/Variability: Given the very nature of services, each service offering is
unique and cannot be exactly repeated even by the same service provider. It is impossible
for a service industry, or even an individual seller, to standardize output. Each ‘’ unit’’ of
the service is somewhat different from other ‘’unit’’ of the same service. While products
can be mass produced and be homogenous the same is not true of services.
3. Inseparability/Simultaneity of production and consumption: -This refers to the
fact that services are generated and consumed within the same time frame.This is not
true of physical goods, which are manufactured, put into inventory, distributed
through multiple resellers, and consumed later. If a person renders the service, the
provider is part of the service. Since the client is also present as the service is
produced, provider-client interaction is a special feature of services marketing. Both
the provider and the client affect the service outcome and very difficult to separate
service from the service provide.
4. Perish ability: Services cannot be stored, saved, returned or resold once they have been
used. Once rendered to a customer the service is completely consumed and cannot be
delivered to another customer.

2.3. Types of Services and Service Environment

1. Core Services: A service that is the primary purpose of the transaction.

2. Supplementary Services: Services that are rendered as a corollary to the sale of a tangible
product. E.g.: Home delivery options offered by restaurants above a minimum bill value.

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Service environments are related to the style and appearance of the physical surroundings and
other experimental elements encountered by customers at service delivery sites. In designing
the service environment many service giving organizations go in to so much trouble. The
service environment consists of four dimensions:

i. Physical facility: Exterior and interior of a facility with all of its furnishings, equipment,
and décor.
ii. Location: Physical location of a facility.
iii. Ambient conditions: intangible elements of a service environment such as sound,
temperature, and odours.
iv. Interpersonal conditions: Interactions between customers and service personnel. (ibid)

2.3.1. The Impact of Service Environment on Consumers

The service scope by itself has a great impact both on customers and employees. In addition
to purchase decisions, the service scope will influence customer expectations and their
evaluation of service quality. The service scope can also affect employee attitude and work
motivation. Individuals who work in a comfortable physical environment tend to have better
attitudes about work than employees who work in undesirable physical environments. The
way the service environment and its accompanying atmosphere impact buyer behaviour, is
listed in three ways as follows:

1. As a Message creating medium, using symbolic cues to communicate to the intended

audience about the distinctive nature and quality of the service experience
2. As an attention creating medium, to make the services escapes stand out from those of
competing establishments and to attract customers form target segments (Gafa, 2002).
3. As an effect creating medium, using colours, textures, sounds and spatial design to
enhance the desired service experience for certain goods, services or experience.
Service marketing mix: have four central components of a service marketing strategy.

1. Target market segmentation:- entails breaking down the potential market into segments;
 Matching the customer needs and price sensitivity,
 Choose the most attractive segment by its size, average profit and will it fit into the
firms capabilities.

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  Research the latent wants of customers, identify the problems they face i.e. good
quality service, and how well a competitors servicing the expectations of customer.
2. Differential advantage. After defining the market, a positional concept has to be created.
The concept should be based on the most important attribute the customer will
acknowledge the difference immediately from competitors.
3. Operating strategy : There should be transforming a marketing opportunity into high
performance for the firm. A few points to consider;
 Hear search made for maximise the offering and the cost in providing the service
 Develop the design for service delivery
 Then creating a strategy system that integrates the delivery system and the positioning
strategy and a central vision with employees to build performance quality is made.
4. Service marketing mix: The last step is to create a marketing mix Traditional marketing
components of product, price, place /distribution and promotion. In addition to 4
P’s(product, price, promotion and place) service marketing includes 3 more components
i. People; all human actors who play apart in service delivery and thus influence the
buyer’s perception: namely, the firm’s personnel, the customer and other customers in
the service environment.
ii. Physical Evidence; the environment in any tangible components that facilitate
performance or communication of the service.
iii. Processes: The actual procedure mechanisms and flow of activities by which the
service is delivered and operating system (Zeithaml and Betner, 2003).

2.4. Service Quality

Quality has been essential to the success of every business or activity. The goal of quality is to
consistently meet or extends customer expansions by providing products and services at a
price that creates value for customers and profits for the company (Woods and king 2002).
Service quality is an achievement in customer service. It reflects at each service encounter.
Service quality aim may be achieved by understanding and improving operational processes;
identifying problems quickly and systematically; establishing valid and reliable service
performance measures and measuring customer satisfaction and other performance outcomes.
Service quality can be related to service potential (ex, worker's qualifications); service process
(the quickness of service) and service result (customer satisfaction) (Mohammed et al., 2009).

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2.5. Customer perception and expectation of Service Quality

Customer’s expectations have been defined as an individual’s thought or belief of that a

customer has about the performance of a service performance is satisfied (Clow and kinz,
2003). They reflect anticipated performance (Gilbert et al., 1982). Prior to using a service
consumer will have in his mind different scenario of the service that he/ she might express. So
this expression shapes satisfaction (Muddie and Cottam 1993). Customers form service
expectations from past experiences, word of mouth and advertisement. In general, Customers
compare perceived service with expected service in which if the former falls short of the latter
the customers are disappointed.

Customers hold different levels of service expectations are desired service and adequate
service between them is zone of tolerance (Van Iwaardenet al., 2003).

1) Desired service; is the highest, the level of service to the customer hopes to receive
the “wished for” level of performance.
2) Adequate service; which is the threshold level of acceptable service, the level of
service the customers tolerate to accept.
Zone of tolerance which is the gap found betweendesired services and adequate service levels.
These indicate the extent to which customers are willing and tolerate to accept the service
variation. The justification is;

 If service performance > Desired service customer delighted

 If service performance = in zone of tolerance customer satisfied
 If service performance < Adequate service customer dissatisfied. Ibid p 60.

2.5.1. Service Quality Dimensions

A customer's expectation of a particular service is determined by factors such as

recommendations, personal needs and past experiences, word-of-mouth communication and
the organization’s external communications exercise (marketing). The expected service and
the perceived service sometimes may not be equal, thus leaving a gap. Ten determinants that
may influence the appearance of a gap described by Parasuraman et al. (1985)as;

1. Competence is the possession of the required skills and knowledge to perform the
service. For example, there may be competence in the knowledge and skill of contact
15
 personnel, knowledge and skill of operational support personnel and research capabilities
of the organization (Doll et al., 1994; Kaynamaand Black, 2000).
2. Courtesy is the consideration for the customer's property and a clean and neat appearance
of contact personnel, manifesting as politeness, respect, and friendliness.
3. Credibility is the factors such as trustworthiness, belief and honesty. It involves having
the customer's best interests at prime position. It may be influenced by company name,
company reputation and the personal characteristics of the contact personnel.
4. Security is the customer feeling free from danger, risk or doubt including physical safety,
financial security and confidentiality (Joseph et al, 1999).
5. Access is approachability and ease of contact. For example, convenient office operation
hours and locations (Parasuraman et al, (1985; Kaynama and Black 2000).
6. Communication means both informing customers in a language they are able to
understand and also listening to customers. A company may need to adjust its language
for the varying needs of its customers. Information might include for example,
explanation of the service and its cost, the relationship between services and costs and
assurances as to the way any problems are effectively managed (Dollet al.1994).
7. Knowing the customer means making an effort to understand the customer's individual
needs, providing individualized attention, recognizing the customer when they arrive and
so on. This in turn helps in delighting the customers i.e. rising above the expectations of
the customer (Zeithmal et al., 1988; Delone and Mclean 2003).
8. Tangibles are the physical evidence of the service, for instance, the appearance of the
physical facilities, tools and equipment used to provide the service; the appearance of
personnel and communication materials and the presence of other customers in the service
facility (Parasuraman et al., 1985;Zeithmal et al ., 1985).
9. Reliability is the ability to perform the promised service in a dependable and accurate
manner. The service is performed correctly on the first occasion, the accounting is correct,
records are up to date and schedules are kept (Parasuraman et al, 1985; Zeithmal et al,
1988 ; 2002) Yang and Fang (2004) Liu and Arnett (2000); Riel et al(2001)
10. Responsiveness is to the readiness and willingness of employees to help customers in
providing prompt timely services (Parasuraman et al 1985; Zeithmal et al, 1988).

2.6.Factors affecting service quality

Services are deeds, process and performance. This is not the general definition
because different authors said about the service or define about the service. But

16
 whatever different authors say there are factors that affect or hinder the service
quality. These are:-
 Process
 Customer perception
 Time
 Facial expression of personnel
 Characteristics of service
 Service levels
2.7.Service Quality Measurement

The reason for the necessity of measuring SQ is that because it allows for comparison the
state of customers before and after service delivery or consumption. Different researchers
develop different models to measure service quality.
As mentioned above Parasuraman et al. (1985) develop 10 dimensions first through which
service performance be compared from expectation. SERVQUAL uses the five dimensions of
SQ for both perception and expectation. To determine SQ deduct the total sum of customers’
expectation from their expectation.
 Where; SQ- service quality; P- Perception ; E- Expectation
After the development of SERVQUAL model by PZB (1985), researchers have done studies
regarding SQ measurement in a wide variety of industries such as Banking, education, hotel,
hospital, revenues (Zeithaml and Betner, pp 92, 2003). Other dimensions to define SQ was
developed by Gronroos (2001), identify SQ as Technical quality, Functional quality and
Reputation quality (Johnson et al, 1995).
2.8.3. Service Quality versus Customer Satisfaction

Most researchers agree that customer satisfaction is a short term, transaction specific
measures, whereas SQ is an attitude followed by a long term, overall evaluation of
performance (Hotfan and Bateson 1997). The SQ theory originated from the product quality
and customer satisfaction literature early conceptualization of service quality is based on the
disconfirmation paradigm where quality is a result of the difference between perceived and
expected service (Ali Dehghan,, p 40-41, 2006).

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 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research designe

To assess the factors affecting service quality in case of EEPCO,

Yirgalem district,the researcher was use descriptive research design.
Because descriptive research design describes the factors or
phenomena they exist.

3.2 Data source and type

To address the problem the researcher would use both primary and
secondary data.The primary data would be collect from primary
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sourse, such as cusomer,employees, manajer of the company by using
interviw and questioneries.

3.3 Target population

The target populations are collected from kebele 03 and they are 3011
target populations were found in this kebele.

3.4 Sample size and sampling technique

The researcher uses convinenience sampling technique.Because

convinense sampling technique used to overcome time and cost
constraints both as to the customer and the researcher and the total
number of 03 kebele who using in EEPCO,Yirgalem district 3011 in
number i.e. the population in 03 kebele is 3011.The sample size have
been by using the formula below

n=N/1+N (e)2

n=3011/1+3011(0.1)2

n=3011/1+3011(0.01)

n=3011/31.11

n=97

10% eror

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3.5 Data collection instrument

The major tool used for data collection are structured interview for the
manajer and questionaries for the employees and customer in order
secondary sourses data was optain by requiring internet
document,reference book.

3.6 Data analysis and interpritation method

After collecting the necessery data from different sources there are
mentiond above in order to make clear and easily understandable
research report the researcher use simple stastical tool like tabulation
and percentage method of analysis.

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 CHAPTER FOUR

4.DATA ANALYSIS AND INTERPRETATION

This chapter deals with the analysis, discussion and presentation of the data that was gathered
through questionnaire and interview. From 97 questionnaires 52 questionnaires are for
customer were distributed and for employees 30 questionnaires were distributed and 15
questionnaires are not answered.

4.1Demographic characteristics of respondents

In this part the research was grouped five categories which includes; sex, age, educational
level, marital status and occupation.

Table 4.1 Demographic characteristics of respondents

No Item Customers Customer Employees Employees percentage

frequency percentage frequency %
%
1 Sex
Male 32 61.53 10 65.6
Female 20 38.46 5 33.3
Total 52 100 15 100
2 Age
18-30 15 28.84 4 26.6
31-43 25 48.07 9 60

44-55 10 19.23 2 13.33

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 56-67 2 3.84
Total 52 100 15 100
3 Educational
status
High 29 55.76
school
completed
Diploma 12 23.03 8 53.33
Degree 10 19.23 6 40
Above 1 1.92 1 6.66
Total 52 100 15 100
4 Marital
status
Single 19 36.53 5 33.33
Married 33 63.46 10 65.66
Total 52 100 15 100
5 Occupation
Employee 34 65.38 10 65.66
Merchant 18 34.61 5 33.33
Other
Total 52 100 15 100

Source: own survey, 2017

According to table 4.1 above the customer and employees demographic characteristics are
described as follows; from customer respondents of table 4.1 item 1, 32(61.53%) of
respondents are male and 20(38.46%) are females with regard to item 2 of table 4.1 the age of
respondents are 15(28.84%) of respondents are less than (18-30), 25948.07%) of them are
(31-43), 10(19.23%) of them are (44-55) and 2(3.84%) of respondents are (56-67) years.

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 Under item 3, of the above 4.1 above regarding with respondents educational level of
29(55.76%) of them are high school completed 12(23.07%) are diploma, 10(19.23%) are
degree and 1(1.92%) are above. In item 4 of above table 4.1 in relation to their marital status,
19(36.53%) of customer are single and 33(63.46%) of them are married. Finally, in item 5 of
the above table 4.1 customer occupation, 34(65.38%) are employees, 18(34.61%), are
merchants. From the above data, majority of the customers are male in the age of 31-43,
diploma, married and employed.

From the above employee respondents under item 1, the table 4.1, 18(60%) are males and
12(40%) of employees are female. In item 2, in relation to their age, 4(13.33%) are between
(18-30), 22(73.3%) are (31-43), 3(10%) are (44-55) and 1(3.33%) respondents are 56-67
years. In item 3 in the above table 4.1 relation to education level of employees 2(6.66%) of
employees are high school completed, 25(83.33%) are diploma, 2(6.66%) are degree and
1(3.33%) of employee respondents are above. In item 4 in table 4.1 related to the employees
marital status 5(16.66%) are single and 25(83.33%) are married and finally in item 5 table 4.1
employees based on occupation 30(100%) are employed.

As the table Table 4.1 above shows majority of employees are male, in the age of 31-43,
diploma and married.

i. Analysis of data obtained from customer respondents

In this part the data which are gathered from customers are discussed. And in the subsequent
table below, reason how the customers are see the EEPCO Yirgalem district in its
accessibility is discussed

Table 4.2: Respondents view to the quality and accessibility of service

How do you see EEPCO of Frequency Percentage

Yirgalem district in its accessibility?
Good 21 40.38
Very good 31 59.61

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Unreachable
Neutral
Total 52 100
How do you rate the quality of Frequency Percentage
electric power service given by
EEPCO Yirgalem district?
Very high
High 2 38.84
Neutral
Low 40 76.92
Very low 10 19.23
Total 52 100
How fast is the office to give Frequency Percentage
service?
Long 38 73.07
Medium 14 26.92
Short
No limitation
Total 52 100

Source; own survey, 2017

Table 4.2 How the customers see EEPCO Yirgalem district in its accessibility

According to table 4.2 on the above 31(59.61%) of respondents are respondents the EEPCO is
very good in its accessibility and 21(40.38%) of respondents are respond EEPCO is good in
its accessibility.

According to table 4.2 on the above 40(76.92%) respondents are said the quality level of
EEPCO service is low, 10(19.23%) respondents are respond very low and 2(3.84%)

24
respondents are respond high. Generally as we see the above statement most of customer
respondents are said the quality level of service is low because of its low quality service.

As table 4.2 on the above 38(73.07%) respondents are respond long and 14(26.92%) are
respond medium as we see the above statement most customer respondents said EEPCO was
not give fast response it takes long time to response it happens through it can be the EEPCO
have work load, because of shortage of materials that are important or essential to give fast
response or there no technological advancements that help to give fast response

Table 4.3Respondents’ satisfaction with the service

No Item Frequency Percentage

1 Are you satisfied with EEPCO

electric power service?
yes 34 65.38
No 18 34.61
Total 52 100

2 I am satisfied with respect full

employee of the office in the
EEPCO?
Strongly agree 4 7.69
Agree 29 55.76
strongly disagree
Disagree 14 26.92
Total 52 100
3 I am satisfied with communication
ability of employee and
performance of employee of

25
 EEPCO?

Strongly agree
Agree 8 15.38
Strongly disagree 10 19.23
Disagree 34 65.38
Total 52 100

Source: own survey, 2017

As the table 4.3 on item 1, 34(65.38%) of respondents respond “yes” and 18(34.61%) of
respondents are respond “No”. generally the researcher concluded majority of respondents are
satisfied with the EEPCO service.

As shown un table 4.3 on the above item 2, 29(55.76%) respondents are agree to respect full
employee of the EEPCO, 14(26.92%) are disagree and 4(7.69%) respondents are strongly
disagree to respect full employee of EEPCO.

In table 4.3 item3, 34(65.38%) of respondents are said disagree by the communication ability
and performance of employee in EEPCO, 10(19.23%) are strongly disagree and 8(15.38%)
respondents are agree.

Generally in the above table 4.3 and on the above statement as it shows majority of customers
are satisfied that can be raised in item 2 and also majority of customers are not satisfied that
can be raised in item idea.

Table 4.4: Respondents’ interest with the service provision

No Item Frequency Percentage

26
 (%)
1 What do you like most about the EEPCO of
Yirgalem district?
Quality of service 7 13.46
Prompt response to complains 28 53.84
Good attitude of staff 17 32.69
Other
Total 52 100
2 What do you dislike most about the EEPCO
of Yirgalem district?
Technological system failure 15 28.84
Staff attitude 14 26.92
Service giving low 23 44.23
Other
Total 52 100

3 How do you see the level of service

quality of EEPCO Yirgalem district?
Excellent
Good 18 34.61
Satisfactory
Poor 34 65.38
Total 52 100
4 How do you see the maintenance service
when power is stopped or blocked by
EEPCO of Yirgalem district?
Very good

27
 Good 9 17.30
Neutral
Poor 17 32.69
Very poor 26 50
Total 52 100

Source: own survey, 2017

As shown in table 4.4on the above under item 1, 28(53.84%) of respondents are like the
prompt response to complaints, 17(32.69%) are like good attitude of staff and 7(13.46%) of
respondent like the quality of service.

In table 4.4 item 2, 23(44.23%) of respondents are dislike the service giving low, 15(28.84%)
are dislike the technological system failure and 14(26.92%) respondents are dislike the staff
attitude. Generally, most of the customer of EEPCO likes prompt response to complaints and
most of customers of EEPCO in item 2 dislike service giving low.

As clearly described in table 4.4 on the above under item 3, 34(65.38%) of respondents are
said poor and 18(34.61%) are said good and in table 4.4 under item 4, 26(50%) of
respondents are very poor, 17(32.69%) are said poor and 9(17.30%) of respondents are
respond good.

 What additional service do you expect from EEPCO Yirgalem district?

From EEPCO service most of respondents didn’t expect any additional service but
they want smart service so they suggest use advanced technological system and
modern and experts should require in general most customers want is not additional
service renewing and moderate or make smart the existing service.

 What do you suggest the EEPCO to improve its service?

In this question there is no different answer it is similar with the above question but
most of customers suggest EEPCO should introduce latest materials and use advanced
technological and skilled man power.

28
 ii. Analysis of data obtained from employees
In this part the deals with data that was gather from employee of EEPCO of Yirgalem
district which are 30 in number.

Table 4.5: Respondents’ work experience

How many years have you been employee Frequency Percentage (%)
here?
Less than 6 month
six month to a year
1 year to 3 year 3 10
Greater than 3 year 12 40
Total 30 100

Source: own survey of 2017

According to the above table 4.5, 12(40%) of employees are worked in EEPCO greater than 3
years and 3(10%) are 1year- 3 year. As table 4.5 shows on the above majority of employees
are experienced and they work in EEPCO for long time.

Table 4.6 Respondents’ services provision experiences

No Item Frequency Percentage (%)

1 As one employee of EEPCO of Yirgalem
district how do you see the service
quality?
Good 2 6.66

29
 Very good 13 43.33
Neutral
Poor
Very poor
Total 30 100
2 What problem do you face keeping you
serving quality service?
Nature of service attitude
Over load of work 30 100
Time of the box
Other
Total 30 100
3 What is the degree of relationship
between you and customer?
Good6 4 13.33
Very good 11 36.66
Neutral
Poor
Very poor
Total 30 100
4 How do you see the effort of the EEPCO
Yirgalem district to give quality service?
Good 14 46.66
Neutral 1 3.33
Week
Very weak
Total 30 100

Source: own survey of 2017

30
As shown in table 4.6on the above of item 1, 13(43.33%) of respondents said the service
quality was very good and 2(6.66%) of respondents said that the service quality is good. So as
employee’s respondent’s service quality is very good in EEPCO as they say.

In item 2 of table 4.6 on the above problem encountered serving quality service 30(100%)
respondents said that over load of work is the problem. So as we have seen here the major
problem encountered in serving quality service is overload of work is the problem.

According to item 3 on the table 4.6 above the degree of relationship between customer and
employee 11(36.66%) of respondents are respond very good and 4(13.33%) of respondents
are respond the relationship between them and customer is very good position.

As shown in table 4.6 item 4 on the above regard to the effort of EEPCO Yirgalem district to
give quality service 14(46.66%) of respondents said the effort of EEPCO Yirgalem district to
give quality service is good and majority of employee respondents EEPCO Yirgalem district
said the effort to give quality service good.

 What activities does your company perform to improve service quality?

As employee respondents said to improve the service quality it takes so many ways
like recruiting employees by giving training, by using trying new technologies and
evaluate the performance of employees.

Table 4.7customers’ complaint handling practice

How do you see the EEPCO handle Frequency Percentage (%)

customer service complain?
Suggestion box
Telephone
Customer service officer 30 100
Other
Total 30 100

As we see on table 4.7 30(100%) of employee respondents said that customer service quality
complains was handled by customer service office.

31
 iii. Analysis of data obtained via Interview
An interview schedule was arranged with the manager of the district, and questions
like ‘What type of service EEPCO of Yirgalem district is giving?’ was forwarded,
and he replied,
As the manager responds EEPCO is currently giving service like
 Electric power supply
 Line maintenance

An interview schedule was arranged with the manager of the district, and questions like ‘How
do you treat customer complains about the service quality? Was forwarded, and he replied,

According to the managers response, they treat customer complains through respecting
them and listening there problem carefully and give solution for their complains as
much as we fatly as the rule and regulation of EEPCO says.

An interview schedule was arranged with the manager of the district, and questions like
‘what difficulties do you face in giving quality service? Was forwarded, and he replied,

According to the managers response there are some difficulties as giving power to
customer some of commonly known difficulties are, the electric line poles are old life
time most probably they occur to fail down because of rain and other and also the line
technology is sold not modernized.

An interview schedule was arranged with the manager of the district, and questions like
‘Have you ever arranged training session for your employees? Was forwarded, and he replied,

As a manager said, the training program or session was given for the employees in
every three months.

An interview schedule was arranged with the manager of the district, and questions like ‘What
type of technology do you apply in giving the service? Was forwarded, and he replied,

As a manager said, there is no modern technology in their organization all activities

done by old or past worked technologies.

32
An interview schedule was arranged with the manager of the district, and questions like ‘In
your opinion where the weakness and strength of your organization is/are is delivering quality
service? Was forwarded, and he replied,

As the response of manager the strength of EEPCO is treating all customers equally
and giving training session to the employees in every three month. The weaknesses are
there is no technological advancement, there is no fast maintenance and sometimes
there was disconnection of electric power.

CHAPTER FIVE
5. CONCLUSION AND RECOMMENDATION
5.1 Conclusions

In this the researcher was assess the service quality of EEPCO Yirgalem, district. EEPCO
gives electric power for the customer or for the society and those customers are use this power
for several things such like lightening and for working but, the respondents identifies some of
the problems by using the collected raw data from the respondents these reasons are
misconnection of electric power, high amount of payment, high time consumption.

There are many constraints in EEPCO Yirgalem, district but according to the employee
respondents response of the collected raw data the researcher try to identify some of the

33
constraints some of these constraints the most and major constraint is lack of advanced
technologies based on the respondents.

EEPCO Yirgalem district to the society contributes a vital role in improving living standard,
makes globalized and suitable for working. The level of EEPCO Yirgalem district services are
varies from place to place within the country. Therefore, all of the factors as stated i the
forgoing statement shows there are challenges to providing a quality service. This is clearly
indicates that the corporation needs to internalize the problem and solve the problems to
improve the quality service.

5.2 Recommendation

Based on the analysis and assessment of the existing challenges of giving quality service the
following recommendations as a marketing management for the subsequent improvement has
been identified these are :-

 As the finding shows lack of technological advancement one of the problems which
has a significant impact in giving quality service so, EEPCO Yirgalem district should
have to use or import advanced technologies to minimize then problem.
 The finding also shows there was misconnection of electric power and high amount of
payment this problems show or overcome by the problem of advanced technologies
so, the researcher recommended to EEPCO, EEPCO should have to use and import
advanced technologies by communicating with government bodies and get support
from non-governmental organizations and modifies the existing technologies.
 Based on the finding there was also a problem in service provision approach so,
provide and facilitate towards a clear directions how to use the existing technologies
or show a clear direction how to use a system or give them sufficient training to adapt
with the system for the employee.
 Based on the finding there was a problem in customer handling so, then researcher
suggest to EEPCO Yirgalem district to provide customer handling training to the
employees and establishing and maintaining a lasting relationship with customer.

34
 Appendix

A. QUESTIONER PEPARED FOR CUSTOMER

B. The purpose of this questionery is to collect data factor affecting service
quality in case of EEPCO,Yirgalem district.the purpose of this study for
acadamic fulfillment.Your response are very important for the success of
the study and your data is kept confidential.Thus you are kindly
requested to fill the questioner with an appropriate data.Hint:- please
put <<x>> marks for questions that are deliverd with box

Part 1: Personal information

1.1. Sex: male female

1.2. Age: 18-20 31-43 44-55 56-67
1.3. Educational level: High school completed Diploma Digree
Above
1.4. Marrital status: single married
1.5.Occupation: employed merchant other
General questions

1) How do you see EEPCO of Yirgalem district in its accessibility

Good very good
Unreachable neutral
2) Are you satisfied with EEPCO electric power service?
Yes No
3) How do you rate the quality level of electric power service given by
EEPCO Yirgalem district?
Very high high neutral low very low
4) How fast is the office to give service?
Long medium short no limitation
5) Please tick the number that you feel appropriate using the scale from 1-
5 where 1 means strongly disagree, 2 disagree, 3 neutral, 4, agree, 5
strongly agree

35
1, I am satisfied with respect full employee of the office

2, I am satisfied with communication ability of the employee in the

EEPCO

3, I am satisfied with the performance of employee of the EEPCO

4, I am satisfied with all service delivered

6) What do you like most about the EEPCO of Yirgalem district?

Quality of service good attitude of staff
Prompt response to complaints
If other
_________________________________________________________
7) What do you dislike most about the EEPCO of Yirgalem district?
Technological system failure
Staff attitude
Service giving low
If other _____________________________________________________
8) How do you see the level of service quality of EEPCO of Yirgalem
district?
Excellent good satisfactory poor
9) How do you see the maintenance service when a power is stopped or
blocked by EEPCO of Yirgalem district?
Very good good neutral poor very poor
10) In your opinion please specify factors affecting service quality in
EEPCO of Yirgalem district?
___________________________________________________________
___________________________________________________________
____
11) What additional service do you expect from EEPCO Yirgalem
district?
___________________________________________________________
___________________________________________________________
____
36
12) What do you suggest for the EEPCO to improve its service?
___________________________________________________________
___________________________________________________________
__
13) B .Questioner prepared for employee
Part1) personal information
1.1. Sex: male female
1.2. Year of service: less than 6 month 1-3 years
6 month-1 year above 3 years
1.3. Educational level: tenth completed diploma
Degree above
Part2) General question

1) How many years have you been completed here?

Less than 6 month 1 year to 3 year
Six month to year greater than 3 year
2) As one employee of EEPCO of Yirgalem district how do you see the
service quality?
Good very good neutral poor very poor
3) What problem do you face keeping you serving quality service?
Nature of service attitude over load of work time of the
box
If other please specify
___________________________________________________________
___________________________________________________________
____

4) What is the degree of relationship between you and customer?

Good very good neutral poor very poor

5) How do you see the effort of EEPCO,Yirgalemdistrict? Good

very good neutral weak very week
6) What activities does your company perform to improve service quality?

37
______________________________________________________________
______________________________________________________________
____

7) Is there any activity does your company do to improve the service

quality?
Yes no
other______________________________________________________
8) How does EEPCO handle customer service quality complain?
Suggestion box customer service officer
Telephone if other pleases specify
___________________________________________________________
___________________________________________________________
____
9) Do you think there was a problem in giving quality service?
Yes no
If “specify”
___________________________________________________________
_ c Interview schedule with manager

1) What type of service EEPCO of Yirgalem district is giving?

2) How do you treat customer complains about then service quality?
3) What difficulties do you face in giving quality service?
4) Have you ever arranged training session for your employees?
5) What type of technology do you apply in giving the service?

6) In your opinion where is/are the weakness and strength of your

organization is delivering quality service

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Christoper, Lock and Jachen, W. (2004): Services marketing – people, teaching,
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Dagger TS, Sweeney JC, Johnson LW: (2007): A hierarchical model of service

38
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D.J. Flint et al., Customer value anticipation, customer satisfaction and loyalty: An
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219– 230
Donabedian, A. (1980), Explorations in Quality Assessment and Monitoring,
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Grönroos, C. (1984) A services Quality Model and its Marketing Implications
European
Journal of Marketing, Vol18. No. 4, pp. 36-44.
Parasuraman A, Valarie A.Zeithaml, & L L. Berry (1991) Refinement and
Reassessment of the SERVQUAL ScaleJournal of Retailing. Vol 67 No420

39