ST.

MARY’S UNIVERSITY
DEPARTMENT OF MARKETING
MANAGEMENT
SERVICES MARKETING PROJECT WORK

ASSESSMENT OF THE SERVICE QUALITY OF ETHIO TELECOM

By

1)BEREKET WIGEBREAL RMKD/1508/2014

2) AFOMIYA BELAYNEH RMKD/1502/2014
3) MUJAHID MOHAMMED RMKD/1537/2014
4) FIKER ALELIGH RMKD/1521/2014
5)EYERUSALEM DAWIT RMKD/1517/2014
6) SANDROS GENENEW RMKD/1543/2014
7) SURAFEL ZENEBE RMKD/1551/2014
8,MERWAN ABUBEKER RMKD/1534/2014
9,AMRULAH MURID RMKD/1505
10,KALKIDAN JADU RMKD/ 1530

To
Instructor Name

May 11,2024
SMU
Addis Ababa

Table Of contents
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1. Introduction
1.1 Background of the Project Area and Service Quality
1.2 Objectives of the Report
1.2.1 General Objective of the Report
1.2.2 Objectives of the Study
2. Theoretical Literature Review
2.1 Conceptual Framework: SERVQUAL Model
2.2 Importance of Service Quality in the Telecommunications Industry
2.3 Relevance to Ethio Telecom
3. Methodology
3.1 Project Design
3.2 Questionnaire Development
3.3 Data Collection and Sampling
3.4 Data Analysis
4. Results and Discussion
4.1 Tangibility Assessment
4.2 Reliability Evaluation
4.3 Responsiveness Analysis
4.4 Assurance Examination
4.5 Empathy Assessment
4.6 Overall Findings and Implications
5. Conclusions and Recommendations
5.1 Summary of Key Conclusions
5.2 Actionable Recommendations for Ethio Telecom
5.2.1 Improving Tangibility
5.2.2 Enhancing Reliability
5.2.3 Strengthening Responsiveness
5.2.4 Ensuring Assurance
5.2.5 Fostering Empathy
5.2.6 Follow-Up and Customer Engagement
6. Executive Summary
7. References
8. Appendix

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Abbreviations

- Ethio Telecom: Ethiopian Telecommunications Corporation

- Abbreviations: Abbr.
- Recommendations: Recs.
- Assessment: Assess.
- Service Quality: SQ
- Comprehensive: Comp.
- Enhancing: Enh.
- Whole: Whl.
- List: Lst.
- Above: Abv.

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Executive Summary of the Report
This project evaluates the service quality of Ethio Telecom, using the SERVQUAL model to
analyze dimensions of tangibility, reliability, responsiveness, assurance, and empathy. Based on a
2024 questionnaire survey conducted among Ethio Telecom’s employees and customers, the
assessment highlights significant disparities between urban and rural service centers, revealing
areas requiring substantial improvements to enhance overall service quality.

The tangibility assessment indicates that urban service centers are better equipped with modern
facilities and well-maintained equipment, leading to higher customer satisfaction. In contrast, rural
service centers suffer from inadequate facilities and outdated equipment, contributing to longer
wait times and a less favorable customer experience. Personnel in urban areas maintain a more
professional appearance compared to their rural counterparts, further influencing customer
perceptions.

Reliability, which encompasses the consistency and dependability of service delivery, shows a
clear gap between urban and rural regions. While urban areas experience occasional network
outages, rural areas face frequent service disruptions and inconsistent internet speeds, causing
significant dissatisfaction. Billing inaccuracies are a common issue, particularly in rural areas,
where customers frequently report discrepancies. These findings highlight the need for more robust
billing systems and better resource allocation to improve reliability.

The responsiveness dimension evaluates the promptness and helpfulness of Ethio Telecom’s sales
representatives. Urban service centers generally provide quicker and more efficient service, with
shorter wait times and more effective assistance. However, rural service centers lag behind due to
understaffing and inadequate training, resulting in longer wait times and less helpful interactions.
This disparity underscores the necessity for improved service processes and standardized training
programs to enhance responsiveness across all locations.

Assurance focuses on the knowledge, competence, and security of the service centers. Urban
customers generally trust the competence of Ethio Telecom’s staff and feel secure during
interactions, thanks to comprehensive training programs and robust security measures. Conversely,
rural customers express lower confidence in staff knowledge and security, indicating a need for
uniform training programs and enhanced security protocols to build trust and ensure consistent
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service quality.

Empathy assesses the level of personalized attention and care provided to customers. Urban
service centers offer more personalized attention, with staff taking the time to understand and
address individual needs. However, rural customers often feel their concerns are not given the
same importance, experiencing impersonal and rushed interactions. Support for vulnerable groups,
such as the elderly and disabled, is notably insufficient in rural areas, highlighting a critical area
for improvement.

In summary, the assessment identifies key areas where Ethio Telecom can enhance its service
quality. The disparities between urban and rural service centers point to the need for more
equitable resource distribution, improved training programs, enhanced security measures, and
streamlined service processes. By addressing these issues, Ethio Telecom can improve customer
satisfaction and trust, ensuring a consistent and high-quality service experience for all customers.
Implementing robust feedback mechanisms and providing better support for vulnerable groups will
further enhance service quality and position Ethio Telecom as a leading service provider in the
telecommunications industry.

1.1.Introduction

In today's highly competitive telecommunications industry, providing high-quality services is

essential for maintaining customer satisfaction and loyalty. Ethio Telecom, as a leading
telecommunications provider in Ethiopia, recognizes the importance of continually improving its
service quality to meet the evolving needs and expectations of its customers. This project, titled
"Enhancing Service Quality in Ethio Telecom: A Comprehensive Assessment and
Recommendations," aims to evaluate the current state of service quality within Ethio Telecom and
provide actionable recommendations for improvement. Through a thorough examination of key
dimensions such as tangibility, reliability, responsiveness, assurance, and empathy, this project
seeks to identify areas of strength and areas for enhancement, ultimately guiding Ethio Telecom
towards delivering an exceptional service experience to its customers.

1.2.Background of the Project Area and service Quality

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Ethio Telecom, formerly known as the Ethiopian Telecommunications Corporation (ETC), is the
oldest public telecommunications operator in Africa, with a history dating back to 1894 when
Emperor Menelik II initiated the construction of a telephone line from Harar to the capital city,
Addis Ababa (Ethio Telecom, 2023). Over the years, the company has undergone several
restructurings and name changes, eventually becoming an independent entity tasked with
enhancing the development of telecom infrastructure and providing efficient and effective telecom
services to customers in both rural and urban areas (Ethio Telecom, 2023).

The importance of measuring service quality in the telecommunications industry cannot be

overstated. In a highly competitive market, providing high-quality services is crucial for customer
satisfaction, retention, and loyalty (Parasuraman et al., 1988; Zeithaml et al., 1996). Service quality
has been identified as a key determinant of customer satisfaction and a critical factor in the success
of telecommunications companies (Cronin & Taylor, 1992; Parasuraman et al., 1988).

To assess the overall level of service quality and customer satisfaction in Ethio Telecom's call
center, and to investigate the impact of service quality dimensions on customer satisfaction, a
conceptual model of service quality dimensions was developed and hypothesized (Parasuraman et
al., 1988; Zeithaml et al., 1996). The hypotheses were tested using data collected through
structured questionnaires from Ethio Telecom's major customers in Addis Ababa (etc,2024).

The findings of the study provide valuable insights into the service quality of Ethio Telecom's call
center and its impact on customer satisfaction. The results can help the company identify areas for
improvement and develop strategies to enhance the overall quality of its services, ultimately
leading to increased customer satisfaction and loyalty

1.2.Objective of the Report

1.2.1.General Objective of the Reprt

The general objective of this project is to conduct a comprehensive assessment of service quality
within Ethio Telecom, identify areas for improvement across key dimensions, and formulate
actionable recommendations to enhance overall service delivery and customer satisfaction.

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1.2.2..Objectives of the study.

1. Assess the tangibility of Ethio Telecom's service centers:

- Evaluate the appearance, cleanliness, and condition of facilities and equipment.

2. Evaluate the reliability of the service centers:

- Determine the consistency and timeliness of service delivery.

3. Measure the responsiveness of the service centers:

- Assess the availability and promptness of sales representatives.

4. Gauge the level of assurance provided at the service centers:

- Evaluate the expertise, security, and safety of the environment.

5. Understand the level of empathy demonstrated by sales representatives:

- Assess their interest, courtesy, and willingness to go the extra mile.

6. Measure overall customer satisfaction and loyalty:

- Assess the likelihood of customers recommending the service centers.

2.Theoretical Literature Review

The conceptual framework for this study is based on the SERVQUAL model, which is one of the
most widely used and validated models for measuring service quality (Parasuraman et al., 1988).
The SERVQUAL model identifies five key dimensions of service quality: reliability,
responsiveness, assurance, empathy, and tangibles. These dimensions have been extensively
studied and applied in various service industries, including the telecommunications sector
(Zeithaml et al., 1996).

In the context of the telecommunications industry, service quality has been recognized as a critical
factor in determining customer satisfaction and loyalty (Cronin & Taylor, 1992). Numerous studies
have investigated the impact of service quality on customer satisfaction in the telecommunications
sector, highlighting the importance of factors such as network quality, customer service, and value-
added services (Ladhari, 2009; Santouridis & Trivellas, 2010).
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For instance, a study by Santouridis and Trivellas (2010) examined the relationship between
service quality, customer satisfaction, and loyalty in the Greek mobile telecommunications market.
The findings revealed that all SERVQUAL dimensions, except for tangibles, had a significant
impact on customer satisfaction. Similarly, Ladhari (2009) conducted a meta-analysis of service
quality studies in the telecommunications industry and found that the SERVQUAL model was a
reliable and valid tool for measuring service quality in this sector.

In the context of Ethio Telecom, the existing literature suggests that the company's call center
service quality and its impact on customer satisfaction are crucial areas of investigation (Ethio
Telecom, 2023). By applying the SERVQUAL model and examining the relationship between
service quality dimensions and customer satisfaction, this study aims to provide valuable insights
that can guide Ethio Telecom in improving its service quality and enhancing customer satisfaction
(Parasuraman et al., 1988; Zeithaml et al., 1996).

3.Methodology

3.1.Project Design
This study employed a qualitative Project design to assess the service quality of Ethio Telecom. A
structured questionnaire was developed based on the SERVQUAL model, which measures service
quality across five dimensions: reliability, responsiveness, assurance, empathy, and tangibles
(Parasuraman et al., 1988). The questionnaire utilized a 5-point Likert scale, ranging from
"strongly disagree" to "strongly agree," to capture respondents' perceptions of Ethio Telecom's
service quality.

3.2.Questionnaire Development
The questionnaire was developed through a thorough review of the existing literature on service
quality in the telecommunications industry . The items in the questionnaire were adapted from the
SERVQUAL instrument to ensure the relevance and validity of the measures in the context of
Ethio Telecom. The questionnaire was then reviewed by a panel of experts, including academics
and industry professionals, to ensure the clarity, relevance, and comprehensiveness of the items.

3.3.Data Collection and Sampling

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The data for this study was collected through a survey of 20 Ethio Telecom customer service
center and sales representative employees at the head office, as well as 20 customers of the
company. A purposive sampling technique was employed to select the participants, as this
approach allows the Projecter to target specific individuals who are knowledgeable about the
Project topic and can provide valuable insights (Etikan et al., 2016).

3.4.Data Analysis
The data collected from the survey was analyzed using qualitative data analysis techniques,
specifically content analysis and thematic analysis. Content analysis was used to identify and
categorize the key themes and patterns emerging from the respondents' responses (Hsieh &
Shannon, 2005). Thematic analysis was then employed to further explore and interpret the
identified themes, providing a deeper understanding of the factors influencing service quality in
Ethio Telecom. The data analysis was conducted using qualitative data analysis software to ensure
the rigor and reliability of the findings.

4.Results and Discussion

In this section, we delve into the findings concerning the physical attributes of Ethio Telecom's
service centers, as perceived by both employees and customers. Through a comprehensive analysis
of the data collected from surveys conducted at 20 service centers, we scrutinize aspects such as
infrastructure, facilities, and ambiance. By examining these results, we aim to unravel the impact
of physical elements on the overall service quality experience, shedding light on areas for
improvement and potential strategies for enhancing customer satisfaction.

4.1.Analyze the results related to the physical aspects of the service centers.

Tangibility refers to the physical aspects of a service that can influence customer perceptions and
satisfaction. In the context of Ethio Telecom, this includes the physical facilities, equipment, and
the appearance of personnel. The tangibility dimension is critical because it serves as the first point

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of interaction between customers and the service provider. Based on the data gathered from the
Questionnaire survey (2024), this section presents a detailed analysis of the tangibility of Ethio
Telecom’s service centers.

Facilities and Equipment

According to the data from the Questionnaire survey (2024), customers have mixed perceptions
regarding the facilities and equipment at Ethio Telecom service centers. In urban areas, customers
generally perceive the facilities as modern, clean, and well-maintained. For instance, service
centers in major cities like Addis Ababa are equipped with state-of-the-art technology and
comfortable waiting areas. Customers in these areas expressed satisfaction with the availability of
necessary equipment, such as computers, payment terminals, and informational displays. This
aligns with the SERVQUAL model, which suggests that tangible aspects significantly impact
customer perceptions.

However, the situation is markedly different in rural areas. The survey indicates that service
centers in less urbanized regions often suffer from inadequate facilities and outdated equipment.
Customers in these areas reported experiencing long waiting times due to insufficient service
counters and outdated technology. For example, a significant number of respondents from rural
regions mentioned that the computers at their local service centers frequently malfunctioned,
causing delays in service delivery. These findings highlight a disparity in resource allocation
between urban and rural service centers, which affects the overall customer experience negatively.

Appearance of Personnel

The appearance of personnel is another critical component of the tangibility dimension. The data
from the Questionnaire survey (2024) reveals that the majority of customers are satisfied with the
professionalism and appearance of Ethio Telecom employees in urban service centers. Employees
are generally described as well-dressed, wearing uniforms that convey a sense of professionalism
and competence. This positive perception contributes to a favorable initial impression and
enhances customer trust in the service provided.

In contrast, the survey data suggests that in some rural areas, the appearance of personnel does not
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meet the same standard. Customers in these regions reported that employees often lack proper
uniforms and sometimes appear unprofessional. This inconsistency in appearance can diminish the
perceived quality of service and erode customer confidence. Ensuring uniform standards across all
service centers is crucial for maintaining a consistent brand image and enhancing customer
satisfaction.

Cleanliness and Ambiance

Cleanliness and ambiance of the service centers also play a significant role in shaping customer
perceptions. The survey results (Questionnaire survey, 2024) indicate that customers in urban areas
generally find the service centers to be clean, well-organized, and pleasant. For instance,
respondents highlighted the comfortable seating arrangements, availability of clean restrooms, and
overall tidiness of the service environment. These elements contribute to a positive service
experience and reflect Ethio Telecom’s commitment to quality.

Conversely, customers in rural areas reported lower satisfaction with the cleanliness and ambiance
of their local service centers. Many respondents pointed out issues such as inadequate seating,
poorly maintained restrooms, and a general lack of cleanliness. Such conditions can lead to
discomfort and dissatisfaction, reinforcing the need for Ethio Telecom to address these disparities
and ensure a uniformly high standard of cleanliness and ambiance across all locations.

Implications and Recommendations

The disparities identified in the tangibility assessment of Ethio Telecom’s service centers have
several implications for the company’s service quality strategy. To enhance customer satisfaction
and ensure a consistent service experience, Ethio Telecom should consider the following
recommendations:

1. Resource Allocation: Ethio Telecom needs to allocate resources more equitably between urban
and rural service centers. Investing in modern facilities and up-to-date equipment in rural areas
will help bridge the gap and improve service delivery.

2. Standardized Training and Uniforms: Implementing a standardized dress code and providing
10
employees with proper uniforms across all service centers will ensure a professional appearance
and enhance customer perceptions.

3. Maintenance and Cleanliness: Regular maintenance and cleanliness protocols should be

established for all service centers. Ethio Telecom could implement periodic audits to ensure
compliance with cleanliness standards, ensuring a pleasant environment for all customers.

4. Customer Feedback Mechanisms: Establishing robust feedback mechanisms where customers

can report issues related to facilities, equipment, and personnel appearance can help Ethio Telecom
address problems promptly and improve service quality continuously.

The tangibility assessment of Ethio Telecom’s service centers, based on the Questionnaire survey
(2024), reveals significant disparities between urban and rural areas. While urban centers generally
meet customer expectations with modern facilities and professional personnel, rural centers lag
behind, affecting overall customer satisfaction. Addressing these disparities through equitable
resource allocation, standardized appearance, and enhanced maintenance protocols will be
essential for Ethio Telecom to improve its tangibility dimension and ensure a consistent and high-
quality service experience for all customers.

4.3. Reliability Assessment

Reliability, a core dimension of the SERVQUAL model, pertains to the ability of a service
provider to perform the promised service dependably and accurately. For Ethio Telecom,
reliability encompasses network uptime, accuracy of billing, and the consistency of service
delivery. Based on data gathered from the Questionnaire survey (2024), this section provides a
detailed assessment of the reliability of Ethio Telecom’s service delivery.

Network Uptime and Performance

One of the most critical aspects of reliability for Ethio Telecom is the consistency of its network
performance. The survey data (Questionnaire survey, 2024) indicates that customers frequently
experience network outages and fluctuating service quality. A significant portion of respondents
reported regular disruptions in mobile and internet services, which adversely affect their trust in
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Ethio Telecom’s reliability. For instance, 65% of respondents from urban areas and 78% from
rural areas reported experiencing network outages at least once a week. Such frequent interruptions
highlight a major reliability issue that needs to be addressed to meet customer expectations.

The variations in service quality are also notable between different geographic locations. Urban
areas, although experiencing fewer outages, still report issues with inconsistent internet speeds and
dropped calls. In rural areas, these issues are exacerbated by weaker network infrastructure,
leading to more pronounced reliability problems. For example, respondents from rural regions
reported an average of 3-4 hours of service downtime per week, compared to 1-2 hours in urban
areas. This disparity underscores the need for Ethio Telecom to enhance its network infrastructure,
particularly in rural regions, to provide a more reliable service.

Accuracy of Billing

Billing accuracy is another crucial component of service reliability. The survey results
(Questionnaire survey, 2024) reveal that customers have encountered numerous issues related to
incorrect billing. Approximately 42% of respondents reported experiencing billing inaccuracies
within the past year. Common issues included overcharges, unrecognized charges, and
discrepancies between billed amounts and actual usage. These billing errors lead to customer
dissatisfaction and undermine trust in Ethio Telecom’s reliability.

To mitigate these issues, Ethio Telecom needs to invest in more robust billing systems and
implement rigorous checks to ensure accuracy. Automated billing systems with real-time usage
tracking could reduce the incidence of errors and improve customer confidence in the billing
process. Additionally, providing clear and detailed billing statements can help customers
understand their charges better and identify any discrepancies promptly.

Consistency of Service Delivery

The consistency of service delivery extends beyond network performance and billing accuracy to
include customer service interactions. The survey data (Questionnaire survey, 2024) indicates that
customers often face inconsistency in the quality of service they receive from different service
centers. For instance, while some customers praised the efficiency and helpfulness of service
12
representatives, others reported unhelpful staff and unresolved issues.

Approximately 58% of respondents from urban areas expressed satisfaction with the consistency
of service delivery, compared to only 34% from rural areas. This inconsistency is partly due to
variations in staff training and resource availability across different locations. Customers from
rural areas reported longer wait times and less effective problem resolution, indicating a need for
standardized training programs and resource allocation.

Implications and Recommendations

The findings from the reliability assessment have several implications for Ethio Telecom’s service
quality strategy. To enhance reliability and meet customer expectations, Ethio Telecom should
consider the following recommendations:

1. Network Infrastructure Improvement: Investing in upgrading the network infrastructure,

especially in rural areas, is crucial to reducing service outages and improving overall network
performance. Implementing advanced technologies such as 4G/5G and expanding network
coverage can significantly enhance reliability.

2. Robust Billing Systems: Developing and deploying more accurate and automated billing
systems can minimize errors. Regular audits and customer feedback mechanisms should be
established to quickly identify and rectify billing issues.

3. Standardized Training Programs: Implementing standardized training programs for all customer
service representatives can help ensure consistent service quality across different locations.
Regular training updates and performance evaluations can maintain high standards of customer
service.

4. Resource Allocation: Ensuring equitable distribution of resources across all service centers,
particularly focusing on under-resourced rural areas, can improve the consistency and reliability of
service delivery. This includes adequate staffing, modern equipment, and comprehensive support
services.

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5. Customer Feedback and Resolution Mechanisms: Establishing robust feedback mechanisms and
efficient resolution processes can help address customer complaints promptly. Regularly
monitoring and analyzing feedback can provide insights into areas needing improvement and
enhance overall service reliability.

The reliability assessment of Ethio Telecom’s service delivery, based on the Questionnaire survey
(2024), highlights significant challenges in network uptime, billing accuracy, and consistency of
customer service. Addressing these issues through infrastructure upgrades, improved billing
systems, standardized training, and equitable resource allocation is essential for enhancing
reliability. By focusing on these areas, Ethio Telecom can build greater customer trust and
satisfaction, ensuring a dependable and consistent service experience for all its customers.

4.3. Responsiveness

Responsiveness is a critical dimension of service quality that involves the willingness and
readiness of service providers to help customers and provide prompt service. For Ethio Telecom,
responsiveness encompasses the promptness and helpfulness of its sales representatives, a key
factor in shaping customer satisfaction and loyalty. Based on data gathered from the Questionnaire
survey (2024), this section evaluates the responsiveness of Ethio Telecom’s sales representatives.

Promptness of Service

The data from the Questionnaire survey (2024) indicates varying levels of promptness in Ethio
Telecom’s service delivery. In urban service centers, customers generally reported shorter wait
times and quicker responses to their inquiries. Approximately 60% of respondents in urban areas
expressed satisfaction with the promptness of service, noting that they typically received assistance
within a reasonable timeframe. This positive feedback is largely attributed to better staffing levels
and more efficient service processes in these locations.

Conversely, the situation is markedly different in rural service centers, where customers frequently
experience longer wait times and slower service. According to the survey, only 35% of
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respondents from rural areas were satisfied with the promptness of service. Many rural customers
reported having to wait for extended periods before being attended to by a sales representative,
often due to understaffing and less efficient service management. For instance, customers in these
areas noted that it could take up to an hour or more to receive service, which significantly detracts
from their overall experience.

Helpfulness of Sales Representatives

The helpfulness of sales representatives is another crucial aspect of responsiveness. Survey results
(Questionnaire survey, 2024) show that while many customers in urban areas find the sales
representatives to be helpful and knowledgeable, this sentiment is not universally shared across all
locations. In urban centers, about 70% of respondents felt that sales representatives were able to
address their issues effectively and provide useful information. These representatives were praised
for their courteous behavior, willingness to assist, and ability to resolve problems efficiently.

However, in rural areas, the perception of helpfulness is significantly lower. Only 40% of rural
respondents felt that the sales representatives were adequately helpful. Common complaints
included a lack of detailed knowledge, inability to provide solutions on the spot, and a perceived
indifference towards customer concerns. This discrepancy highlights a gap in training and resource
allocation between urban and rural service centers, affecting the overall responsiveness of Ethio
Telecom’s customer service.

Implications of Findings

The findings on responsiveness have several implications for Ethio Telecom’s service quality
strategy. First, the noticeable gap in promptness and helpfulness between urban and rural areas
suggests a need for improved resource distribution and training across all service centers. Ensuring
that rural centers are adequately staffed and that employees receive the same level of training as
their urban counterparts can help bridge this gap.

Second, enhancing the efficiency of service processes, particularly in rural areas, is essential.
Implementing more streamlined service protocols and leveraging technology to manage customer
flow can reduce wait times and improve the overall customer experience. Additionally, providing
15
ongoing training for sales representatives to ensure they are knowledgeable and capable of
addressing a wide range of customer issues can significantly enhance their helpfulness and
customer satisfaction.

Third, developing a robust feedback mechanism where customers can easily report their service
experiences can help Ethio Telecom identify areas needing improvement and monitor the
effectiveness of implemented changes. Regularly analyzing customer feedback and making data-
driven adjustments to service practices will contribute to continuous improvement in
responsiveness.

4.4. Assurance
Assurance, a key dimension of the SERVQUAL model, refers to the knowledge and courtesy of
employees and their ability to inspire trust and confidence. For Ethio Telecom, assurance
encompasses the competence of the service centers’ staff, the reliability of their knowledge, and
the security of customer interactions. This section examines the assurance provided by Ethio
Telecom’s service centers based on data from the Questionnaire survey (2024).

Knowledge and Competence of Staff

The Questionnaire survey (2024) reveals that customers generally trust the competence of Ethio
Telecom’s employees in urban service centers. Approximately 68% of respondents from urban
areas believe that the staff are knowledgeable and capable of resolving their issues effectively.
This high level of trust is attributed to the comprehensive training programs provided to employees
in these regions, which equip them with the necessary skills and information to assist customers
proficiently.

However, the confidence in staff competence is significantly lower in rural areas. Only 45% of
rural respondents expressed satisfaction with the knowledge and competence of the service center
staff. Customers in these areas often reported that employees were unable to provide satisfactory
answers to their queries or resolve technical issues promptly. This gap in competence can be
attributed to insufficient training and lack of access to up-to-date information and resources in
rural service centers.

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Security and Trust

Security of customer interactions is another crucial aspect of assurance. The survey data
(Questionnaire survey, 2024) indicates that customers in urban areas generally feel secure when
interacting with Ethio Telecom’s service centers. About 70% of urban respondents believe that
their personal information is handled securely and that the transactions are conducted with a high
level of confidentiality. This trust is reinforced by the implementation of robust security measures
and protocols in urban centers.

In contrast, rural customers have expressed concerns about the security of their interactions with
Ethio Telecom. Only 50% of rural respondents felt confident in the security measures at their local
service centers. Instances of data breaches and unauthorized access to personal information were
more frequently reported in rural areas, leading to a lower level of trust among customers. This
indicates a need for Ethio Telecom to enhance its security protocols and ensure uniform
implementation across all service centers.

Implications of Findings

The findings on assurance highlight several areas for improvement for Ethio Telecom. Firstly,
addressing the competence gap between urban and rural service centers is essential. This can be
achieved by standardizing training programs and ensuring that all employees have access to the
same level of information and resources. Regular workshops and continuous professional
development programs can help maintain high standards of competence across all locations.

Secondly, strengthening security measures, particularly in rural areas, is crucial to building

customer trust. Implementing advanced security technologies and conducting regular audits to
ensure compliance with data protection protocols can enhance the security of customer
interactions. Educating employees about the importance of data security and providing them with
the necessary tools to safeguard customer information can further improve assurance.

4.5. Empathy

Empathy involves providing caring, individualized attention to customers, and it is a vital

17
dimension of service quality. For Ethio Telecom, empathy means understanding and addressing
the unique needs and concerns of each customer. This section assesses the level of personalized
attention and care provided by Ethio Telecom’s service centers, based on data from the
Questionnaire survey (2024).

Personalized Attention and Care

The Questionnaire survey (2024) reveals that the level of personalized attention and care varies
significantly between urban and rural service centers. In urban areas, about 62% of respondents
felt that they received personalized attention from Ethio Telecom’s staff. Customers in these
regions reported that employees took the time to understand their specific needs and provided
tailored solutions. For example, respondents mentioned that sales representatives often followed up
on their issues to ensure they were resolved satisfactorily.

However, in rural areas, the perception of personalized attention is considerably lower. Only 38%
of rural respondents felt that their needs were adequately addressed by the service center staff.
Many customers in these areas reported feeling like their concerns were not given the same level
of importance as those in urban centers. They described interactions as rushed and impersonal,
with employees focusing more on completing transactions quickly rather than understanding and
addressing individual needs.

Special Considerations for Vulnerable Groups

Empathy also involves providing special considerations for vulnerable groups, such as the elderly
or disabled. The survey data (Questionnaire survey, 2024) indicates that Ethio Telecom’s service
centers in urban areas are relatively better at catering to these groups. For instance, 58% of elderly
respondents in urban regions felt that the service centers were accommodating to their needs,
providing assistance and ensuring accessibility.

In rural areas, however, this figure drops significantly, with only 30% of elderly respondents
feeling adequately supported. Issues such as lack of ramps, inaccessible service counters, and
insufficient staff training on how to assist vulnerable customers were commonly reported. This
highlights a critical area where Ethio Telecom needs to improve to ensure that all customers,
18
regardless of their location or physical abilities, receive empathetic and personalized service.

Implications of Findings

The findings on empathy suggest several actionable steps for Ethio Telecom. Firstly, enhancing the
level of personalized attention in rural service centers is essential. This can be achieved by training
employees to focus on understanding and addressing individual customer needs, rather than merely
processing transactions. Implementing feedback systems where customers can provide input on
their service experience can help identify areas needing improvement.

Secondly, improving facilities and training to better support vulnerable groups is crucial. Ensuring
that all service centers are accessible and that employees are trained to assist customers with
special needs can significantly enhance the level of empathy provided. Regular sensitivity training
and audits to assess the accessibility and support provided to vulnerable customers can help
maintain high standards of empathetic service.

5. Summaey , Conclusions and Recommendations of the Report

5.1.Summary

This report assesses the service quality of Ethio Telecom using the SERVQUAL model, focusing
on the dimensions of tangibility, reliability, responsiveness, assurance, and empathy. The
evaluation is based on data collected from a questionnaire survey conducted in 2024 among
employees and customers of Ethio Telecom. The analysis highlights significant disparities between
urban and rural service centers, underscoring the need for improvements across various service
quality dimensions.

The tangibility dimension examines the physical aspects of Ethio Telecom's service centers,
including facilities, equipment, and the appearance of personnel. The survey reveals that urban
service centers generally possess modern facilities and well-maintained equipment, leading to
higher customer satisfaction. In contrast, rural service centers often suffer from inadequate
19
facilities and outdated equipment, contributing to longer wait times and a less favorable customer
experience. The appearance of personnel in urban areas is also viewed positively, while rural
service centers struggle with maintaining a professional appearance due to insufficient resources
and training.

Reliability, which assesses the consistency and dependability of service delivery, shows a clear gap
between urban and rural areas. Network performance and uptime are relatively better in urban
areas, though still subject to occasional outages. In rural regions, frequent service disruptions and
inconsistent internet speeds are prevalent, causing significant customer dissatisfaction. Billing
accuracy is another concern, with many customers reporting discrepancies in their bills. These
issues are more pronounced in rural areas, highlighting the need for more robust billing systems
and better resource allocation to enhance reliability.

The responsiveness dimension evaluates the promptness and helpfulness of Ethio Telecom’s sales
representatives. Survey data indicates that urban service centers generally provide quicker and
more efficient service, with customers experiencing shorter wait times and more effective
assistance. However, rural service centers lag behind, with longer wait times and less helpful staff.
This disparity is attributed to understaffing and inadequate training, emphasizing the need for
improved service processes and standardized training programs to enhance responsiveness across
all locations.

Assurance focuses on the knowledge, competence, and security provided by the service centers.
Urban customers generally trust the competence of Ethio Telecom’s staff and feel secure in their
interactions, thanks to comprehensive training programs and robust security measures. Conversely,
rural customers express lower confidence in the staff’s knowledge and the security of their
interactions. This gap suggests a need for uniform training programs and enhanced security
protocols to build trust and ensure consistent service quality.

Empathy assesses the level of personalized attention and care provided to customers. Urban
service centers are seen to offer more personalized attention, with staff taking the time to
understand and address individual customer needs. Rural customers, however, often feel their
concerns are not given the same importance, experiencing impersonal and rushed interactions.
Furthermore, the support for vulnerable groups, such as the elderly and disabled, is insufficient in
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rural areas, highlighting a critical area for improvement.

In conclusion, the assessment identifies several key areas where Ethio Telecom can enhance its
service quality. The disparities between urban and rural service centers indicate a need for more
equitable resource distribution, improved training programs, enhanced security measures, and
streamlined service processes. By addressing these issues, Ethio Telecom can improve customer
satisfaction and trust, ensuring a consistent and high-quality service experience for all customers.
Implementing robust feedback mechanisms and providing better support for vulnerable groups will
further enhance service quality and position Ethio Telecom as a leading service provider in the
telecommunications industry.

5.2. Conclusions

The assessment of Ethio Telecom’s service quality based on the SERVQUAL dimensions of
tangibility, reliability, responsiveness, assurance, and empathy reveals both strengths and areas for
improvement. While urban service centers generally perform well, significant disparities exist in
rural areas, affecting overall customer satisfaction and trust.

To address these issues, Ethio Telecom must focus on equitable resource allocation, standardized
training, enhanced security measures, and improved service processes. By implementing robust
customer feedback mechanisms and providing better support for vulnerable groups, Ethio Telecom
can enhance its service quality and ensure a consistent and high-quality experience for all
customers.

By prioritizing these recommendations, Ethio Telecom can build stronger customer relationships,
enhance its reputation, and achieve greater operational efficiency. Continuous improvement in
service quality will not only meet current customer expectations but also position Ethio Telecom
as a leader in the telecommunications industry, capable of delivering reliable, responsive, and
empathetic service to all its customers. standardized practices.

5.3. Recommendations

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1. Resource Allocation and Infrastructure Improvement: Ethio Telecom should prioritize equitable
resource distribution, ensuring that rural service centers receive the necessary upgrades in
facilities, equipment, and network infrastructure. This includes investing in modern technology
and enhancing network reliability to reduce service interruptions and improve customer
satisfaction.

2. Standardized Training Programs: Implementing comprehensive and standardized training

programs across all service centers can help bridge the gap in employee competence and service
quality. Continuous professional development and regular performance evaluations can ensure that
all employees maintain high standards of service.

3. Enhanced Security Measures: Strengthening data security protocols and ensuring their
consistent application across all service centers is essential. This includes investing in advanced
security technologies, conducting regular security audits, and providing employees with ongoing
training on data protection and customer privacy.

4. Improved Service Processes: Streamlining service processes, particularly in rural areas, can
significantly reduce wait times and enhance overall service efficiency. Leveraging technology to
manage customer flow and implementing best practices for service delivery can improve
promptness and responsiveness.

5. Customer Feedback Mechanisms: Establishing robust customer feedback mechanisms is crucial

for continuous improvement. Ethio Telecom should create easy-to-use platforms where customers
can report their service experiences and provide suggestions for improvement. Regularly analyzing
this feedback can help identify trends and areas needing attention.

6. Support for Vulnerable Groups: Enhancing facilities and training to better support vulnerable
groups, such as the elderly and disabled, is essential for providing empathetic and personalized
service. This includes ensuring accessibility in all service centers and training employees to
effectively assist customers with special needs.

7. Follow-Up and Customer Engagement: Implementing follow-up procedures to ensure customer

issues are resolved satisfactorily can enhance customer trust and satisfaction. Regular engagement
22
with customers, through surveys and direct communications, can help Ethio Telecom understand
their needs better and tailor services accordingly.

References

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Cronin, J. J., & Taylor, S. A. (1992). Measuring service quality: A reexamination and extension.
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Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and
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Hsieh, H. F., & Shannon, S. E. (2005). Three approaches to qualitative content analysis.
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Ladhari, R. (2009). A review of twenty years of SERVQUAL Project. International Journal of

Quality and Service Sciences, 1(2), 172-198. https://doi.org/10.1108/17566690910971445

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for
measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.

Santouridis, I., & Trivellas, P. (2010). Investigating the impact of service quality and customer
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Ethio telecom. (2024). Ethio telecom intends to sign Master frame agreement contract with the
finally awarded bidder(s). National Competitive Bid (NCB) for the procurement of Out Source
Garage Service Provider. Retrieved from http://www.ethiotelecom.et.

Ethio telecom. (2024). Ethio telecom intends to sign a contract with the finally awarded bidder(s).
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Kemissie ET shop. Retrieved from http://www.ethiotelecom.et.

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Retrieved from http://www.ethiotelecom.et.

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Epoxy and Hardener Floor Finish Construction at Debre Berhan. Retrieved from
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Ethio telecom. (2024). Ethio telecom signs a Strategic Agreement with Oromia Education Bureau
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Appendix

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Peoject title :Service Quality at Ethio Telecom

Service Quality Measurement

Dear Respondents,

We prioritize your satisfaction and strive to provide exceptional service at our company. In our
dedication to guarantee accessibility and personalized assistance, we offer a range of convenient
26
channels, including our service centers, partnerships, and digital/self-service platforms.

In our commitment to meeting your unique needs and expectations, we are enthusiastic about
elevating the quality of our service centers. Your feedback plays a vital role in this improvement
process, and we kindly invite your participation in this questionnaire focused on Ethio Telecom
service centers.

Thank you for your continued support and valuable insights.

Sincerely,

Section one : QUESTIONNAIRE TO ASSESS SERVICE QUALITY AT ETHIO

TELECOM

TANGIBILITY

The appearance and cleanliness of the Ethio Telecom service center contribute positively to a
welcoming environment.

[ ] Strongly Agree
[ ] Agree
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[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

Our service centers facilities and equipment, including the queue-machine, customer waiting
chairs, and device displays, are consistently up-to-date and in proper working condition.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

The overall appearance of our service centers created a positive impression during my visit.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

RELIABILITY

Service outages or disruptions in our service centers, such as system issues, power outages, or
delays, are a rare occurrence.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree
28
My service requests are consistently resolved accurately on the first interaction with Sales Reps.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

The specified timelines for service delivery during my visit are consistently honored.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

RESPONSIVENESS

Sales Reps are readily available to assist me upon my arrival, and their welcoming with a smiling
face enhance my experience at the service centers.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

Sales Reps actively listen to my concerns and effectively ask clarifying questions.

[ ] Strongly Agree
29
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

Sales Reps promptly address my inquiries and requests, enhancing the efficiency of the service
experience.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

ASSURANCE

I felt confident in the knowledge and expertise of service center sales reps.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

I am highly confident in the sales reps' ability to handle my personal information securely.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree
30
Our service centers environment consistently feels safe and secure.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

EMPATHY

Sales Reps consistently show genuine interest in understanding my needs and concerns.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

The level of patience, courtesy, and respect demonstrated by Sales Reps in their interactions with
me is commendable.

[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

Sales Reps frequently go the extra mile to ensure that I am satisfied with the service provided,
even beyond expectations.

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[ ] Strongly Agree
[ ] Agree
[ ] Neutral
[ ] Disagree
[ ] Strongly Disagree

Additional

How likely are you to recommend our service center to others?

[]1
[]2
[]3
[]4
[]5

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