Abstract:
Quality service delivery and customer satisfaction are critical issues in most service organizations
including in public sectors where services may be provided in a non-competitive environment due
to the non-existence of alternative providers. The purpose of this study is, therefore to assess the
quality of service delivery and customer satisfaction in public sectors of Lay Armachiho woreda.
The study used mixed research approach with a sequential explanatory research design employed
to examine reliability, responsiveness, tangibility, assurance and empathy as dimensions of quality
service delivery and customer satisfaction. A total of 105 samples participated in the study of
whom 96 were customers selected using simple random sampling technique, 3 were sectors’
officials and 6 were sectors’ section managers selected using purposive sampling technique. Data
were collected using questionnaire from customers, interview from officials and focus group
discussion from section managers. The quantitative data were analyzed using number, percentage,
descriptive statistics such as mean, standard deviation and Pearson product moment correlation
as well as regression analysis techniques. The qualitative data were thematically analyzed. The
finding showed that an overall mean scores = 3.40 for service quality and 3.55 for customer
satisfaction were found above the test value (3.00). Besides, the correlation coefficient (.513, p <
.05) showed a statistically significant relationship between service quality and customer
satisfaction. Given this, the correlation coefficients (r = .312, .322. 2.76 and .353, n =, p < .05)
showed a statistically significant relationship between reliability, tangibility, assurance and
empathy) and customer satisfaction respectively while no statistically significant relationship
between responsiveness and customer satisfaction. From the regression analysis, the beta
coefficient is =.265 (p = .007 < .05) for empathy indicated that it makes the highest contribution
to the prediction of customer satisfaction followed by tangibility and reliability. It is concluded
that although empathy, tangibility and reliability service dimensions significantly contributed to
the prediction of customer satisfaction, responsiveness and assurance were insignificant. The
public sectors, therefore, suggested to review their existing level of service delivery with more
consideration given to dimensions of responsiveness and assurance.