Dilla University: College of Business and Economics Department of Logistics and Transport Management

DILLA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF LOGISTICS AND TRANSPORT MANAGEMENT
“ASSESSMENT OF THE SERVICE DELIVERY SYSTEMON CUSTOMER

SATISFACTION IN CASE-EXC OF DILLA BRANCH
SENIORE ESSAY RESEARCH ON ASSESSMENT OF SERVICES

DELIVERYON CUSTOMER SATSFACTION IN CASE OF
ETHIOPIAN COMMODITY EXCHANGE(EXC) IN DILLA
BRANCH SUBMITED TO THE DEPARTMENT OF LOGISTICS
AND TRANSPORT MANAGEMENT IN PARTIAL FULFILLMENT
FOR THE DEGREE OF BACHILOR in LOgISTICS AND
TRANSPORT MANAGEMENT
BY: GUTAMA YIGAZU
ADIVSOR: ENDIRIS.A (MBA)
JANAURY,2021
DILLA, ETHIOPIA
DILLA UNIVERSITY
COLLAGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF LOGISTICS AND TRANSPORT MANAGEMNT
TITLE:“ASSESSMENT OF THE SERVICE DELIVERY SYSTEMON CUSTOMER

SATISFACTION IN CASEEXC OF DILLA BRANCH
BY:-
GUTAMA YIGAZU
ID No: 7134/17
Signature: _______________
Date: _______________
Approval by the examining committee
Name signature
Coordinator------------------------------------
Examiner-----------------------------------------
Advisor------------------------------------------------
Declaration
I declare that this work entitled Study on“the assessment service delivery system on
customer satisfactions Dilla Branch”. I have produced it independently except for the
guidance and suggestion of the research advisor. This study had not been submitted
for any degree in this University or any other University. It is offered for the partial
fulfillment of the degree of bachelor of Logistics and Transport Management.
Name: GutamaYigazu Signature
______________
Place of submission: DU
Date of submission: ___________
i
This paper has been submitted for examination with my appropriate approval as
university advisor.
Name: Endris Ali (MBA)
Signature: _____________
Date: _____________
ii
Acknowledgment
Since writing this paper I have been assisted by many individual for whom,I’m very great full
thanks. First of all I would like to praise the almighty of god for his help in my many ups and
downs. Secondary I would like to express my sincere and deepest thanks to MrEndirisAli(MBA)
who is my Advisor, for his continuous initiation, Suggestion, guide and patently reading through
the draft and made essential correcting. Thirdly I would like to thanks the Ethiopia Commodity
Exchange (EXC) in Dilla Branch’s manager, employees and customers, for their great interests
in filling the questionnaire. Generally I would like to thank all those who have any contribution
including my lovely friends on finalizing this research paper.
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Acronyms
ADLI - Agricultural Development Lead to industrialization
CRM-Customer relation management
CRC - Citizen Report Card
ECX - Ethiopia Commodity Exchange
EEA ~ Ethiopian Economic Association
HEP - Hydro Electric Power
EPCA - Ethiopian Population and Census Authority
ILAD ~ industrialization Leads to Agricultural Development
N SDP-New service development process
RATER - Reliability, Assurance, Tangibles, Empathy and Responsiveness
SERVQUAL - Service Quality
SNNPR-Southern nation nationalities and people’s region
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ABSTRACT
This study was “the assessment service delivery system on customer satisfactions Dilla
Branch”. The general objective of the study was to assessment ofServicedelivery on Customers
Satisfaction in case of Ethiopian Commodity Exchange (EXC) in Dilla Branch. Standing from
this,I strive specific objective of study, these are identify the area needs to be improved by this
companies, evaluate service quality delivery in organization and determine responsiveness of
Companies management to their customers. Researchers was used descriptive research design
because it describe the existing problem Research design used under the study was a single cross
sectional study approach because I collected data once. The primary data was collected through a
structured interview for manager and questionnaire, which is closed ended questionnaire for
employees and customers for the purpose of analyzing questionnaires. The reason why I use
closed ended questions, which is to achieve the interest of respondents and time consuming
method for respondents. And secondary data collected through books and internet for the
purpose of identifying related literature review. The researcher was used judgmental for
employees and Convenience sampling method for customers to select the required sample, so
120 questionnaires were distributed for the customers and employees to be filled out. The study
was analyzed and interpreted by using qualitative and quantitative analysis in percentage and in
tabular form. Generally the study was provided summary, overall study was concluded and
recommendation provided in weak and strong area of the study as to, what should be done to
overcome the challenges of service delivery and customers’ satisfaction in Ethiopian Commodity
Exchange (EXC) in Dilla Branch.
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TABLE OF CONTENTS
Contents Page
Declaration...................................................................................................................................................i
Acknowledgment.......................................................................................................................................iii
Abstract V
CHAPTER ONE......................................................................................................................................1
1.1Background of the Study....................................................................................................................1
1.2. Statement of the problem 2
1.3. Basic research question 3
1.4. Research objective 3
1.4.1. General objective 3
1.4.2. Specific objective 3
1.5. Significance of the study 3
1.6. Scope of the study 4
1.7 Limitation of the Study......................................................................................................................4

1.8. Definition used term 4
1.9. Organization of the study 5
CHAPTER TWO 6
2. RELATED REVIEW LITERATURE 6
2.1 What is Service?................................................................................................................................6

2.2 Characteristics of Service..................................................................................................................6
2.3 Designing a New Service Organization.............................................................................................7
2.3.1 New Concepts Require an Adoption Process..................................................................................7
2.3.2 Types of Service Organizations......................................................................................................8
2.4 Categories of New Service................................................................................................................8
2.5 Service Delivery Approach................................................................................................................9
2.5.1. Seven steps to Good Service 10
2.5.2. Benefits of good service 11
2.6. Technology trends in service delivery 11
2.7. Definition basic concepts of customer satisfaction 12
2.7.1. Discovering customer need 12
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2.7.2. Satisfying customer need 12
2.8. Building customer equality 13
2.9. Growing share of customer 13
2.9.1. Consumer market and customer buyer behavior 14
2.10. The changing nature of customer relationship 14
2.11. Building the right relation with the right customer 15
2.12. Factors affecting customer satisfaction 16
CHAPTER THREE...................................................................................................................................19
3. Research design and Methodology....................................................................................................19
Introduction...........................................................................................................................................19
3.1 Research Design..............................................................................................................................19
3. 2 Research approach..........................................................................................................................19
3.3. Method of data collection 20
3. 3.1 Type and Source of Data..........................................................................................................20

3.4. Target population sampling technique and sample size 20
3.4.1. Target population 20
3.4.2. Sampling technique 20
3.4.3. Sample size determination 21
3.5 Method of Data Collection Instruments...........................................................................................21

3.6 Method of Data Analysis.................................................................................................................21
3.7. Ethical Considerations....................................................................................................................22
CHAPTER FOUR.....................................................................................................................................23
4.1. DATA PRESENTATION ANALYSIS AND INTERPRETATION 23
4.2. INTRODUCTION 23
4.3. Analysis of questionnaires collected from customers 29
4.4. Analysis of interview 34
4.5 Major Finding..................................................................................................................................35

CHAPTER FIVE.......................................................................................................................................37
CONCLUTION AND RECOMMENDATION.....................................................................................37
5.1 CONCLUSION...............................................................................................................................37
5.2. RECOMMENDATIONS................................................................................................................39
REFERENCE........................................................................................................................................41
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 No list of tables and figures
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CHAPTER ONE
INTRODUCTION
These chapters are includes; background of study, statement of problem, research question,
research objective, scope study, limitation of study, significances of study ,definition used terms
and organization papers.
1.1Background of the Study

In modern society, the state bears the responsibility to undertake all-round functions that touch
up on every aspect of individual’s life of citizens and the society at large (Dagnachew and
Addissie, 2010).
The confinement of the state to conventional spheres of politics and administration is out of
place, and it is equally required to actively indulge itself in ensuring the economic wellbeing of
citizens and the nation as a whole (ibid) so as to ensure the economic Ill - being the state uses
public enterprises as vital means. These public enterprises established variety of ways in
delivering services to customers.These ways are such as; production line approach, self- service
approach, personal attention approach (Chase and Nicholas, 2002).
Any organization has to take in to account the following while selecting the system or approach
of service delivery:-like, the product package, the form and intensity of customer - server
contact, the organizations winning dimensions and strategy (Martinich, 2005).
Design of the service system should begin with a focus on the service to be provided, Most
service organization does not provide a single homogeneous services instead they provide a
package of services to their customers. An important aspect of the service package is the location
where the service occurs; specifically is the service facilities - based or field - based (ibid).
The constraints in service delivery can be seen From perspective of:- like, demand for the
service, time for the service, system design problem, schedule for service system (Buff s and
Rakish k.2004).
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1.2 Statement of the Problem
Most of the enterprises which are publicly owned are primary planed and established to meet the
interest of the public or community at large. If this so, every public enterprise is expected to
satisfy its customers, so as to active its primary objective. When an organization is failed to
satisfy the customers served by that particular enterprise, at the same time the organization will
said to be fail to achieve the following key objectives. That is to;-avoid regional imbalance,
generate adequate revenue for government expense, exploit the natural and technological
resources of a particular country, reduce unfavorable trade balance and unemployment rate,
Attract foreign fund and donation (Dagnachew and Addisie, 2010).
Oliver (1997, 1999),regards satisfaction as a fulfillment response or judgment, focused on

product or service, which is evaluated for one-time consumption or ongoing consumption.
Quality of services has the poIr to create customer satisfaction. On the other hand poor services
results in customer dissatisfaction and customer defection by going to other competitors.
But if the enterprises is able to satisfy the customers in return they able to achieve their basic
goal and able to successfully achieve the above associate purpose of public enterprise (Ibid).
Prior study done by different researcher Haroon M. (2010), Horstmann R. (1998) doesn’t give
emphasis to the area rather focusing on customer satisfaction and service handling. So, the
researcher believes studying about customer’s satisfaction and service handling to customer
alone couldn’t bring better findings. Therefore, the intention of this study would be try to assess
the problem of service delivery on customer satisfaction in case of EXC in Dilla branch and
possible recommendation would be forwarded based on the finding to the case company.
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1.3 Basic Research Question
1. What is the service delivery systemof ECX Dillabranch?
2. What would be the importance of ECX service to the customers?
3. Does the service delivery system and the service suits each other?
4. What would the impact/ consequence of customer`s satisfaction in ECX, Dilla branch?
5. What would the major problems of the organization in service delivery system?
1.4 Research Objective

1.4.1 General Objective
The general aims of this study would to assess service delivery system on customer
satisfaction in ECX Dilla branch.
1.4.2 Specific Objective
To identify service delivery system of EXC Dilla Branch
To identify the vitality of the service in increasing the income of the customer and
Foreign exchange rate of the country in general.
To describe the service delivery through which it will being delivering.
To dig out the relationship between customers satisfaction and other associated
consequences.
Todescribe major problems of the organization in service delivery system.

.
1.5 Significance of the Study
The primary purpose of this study would be investigate the services delivery on customer
satisfaction in Ethiopian Commodity Exchange(EXC), branch`s Dilla. As well as, forward to
would be possible recommendations that can solve the problems. Hence, this study has forward
suggest recommendations based on the major findings to would alleviate the problems in service
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delivery of ECX. This would be can help the organization to consider the findings while
enacting directives and passing other decisions. It can also sustain the organization`s strong side.
Furthermore, the study can also use as secondary source of data for future researchers, who want
to conduct further study on similar topic, it could be also use as benchmark to evaluate its
applicability. Finally, the study would be important for academic researcher, and be used as a
reference, to conduct further study on this interesting and important area of concept.
1.6 Scope of the Study

Due the giant nature of Ethiopian Commodity Exchange (EXC), it is practically difficult to
include all branches. Thus, the research elaborated the scope by selecting one branches of Exc
located in Dilla town, to see that influence of service delivery on customer satisfaction. Also the
researchers was delaminated the study by gathering primary data by distributed questionnaires
and explained the study using descriptive study. Finally, study emphasized on customer
satisfaction specifically focus on given for service delivering due to direct interaction with
customer.
1.7 Limitation of the Study

The researcher was not able to include all Exc customers in other branches, located at regions of
the country, due to the vast nature of the EXC. In addition, to this, managers of company are not
cooperative to give important information that would help the researcher to conduct the study
1.8. Definition used term

Customer Satisfaction: - customer satisfaction as being directly related to the comparison
between a customer’s expectation of service’s performance and that customer’s perception of
that service (Davis and Aquila no, 20003).
Consumer Buyer Behavior: - Consumer buyer behavior refers to the buying behavior of final
consumers (individuals and households) who buy goods and services of personal consumption
(Kotler and Gray, 2006).
Service:- means the to include all economic activities whose output not physical product or
construction ,generally it consumed at time produced and added value in forms (such as
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convenience, amusement, time lines , comfort, or health ) that are essentially intangible concerns
of its first purchaser(Zeithaml&Bitner,2004).
Customers Expectation:-refers to belief about service delivery that functions as standards or

references point against which performance is judged (Zeithaml&Bitner, 2004).
Customer perception:-According to (Zeithaml&Bitner2004), customer perception is how

customer perceives services, how they assess whether has experience, quality service, and
whether they are satisfied.
Customer gap:-the central focus of the gap model of the consumer gap is difference between
customer’s expectation and perception (Zeithaml&Bitner, 2004)
1.9. Organization of the Study

Generally, this study would have five chapters. The first chapter would contains introduction
part, encompassing background of the study, statement of the problem, research question, and
research objective, significance of the study, scope of the study, limitation of study, definition
used terms. The second chapter will contains the literature review part, which is all about
theoretical review from other written book related to public enterprises, customer satisfaction
and service related issues. The third chapter contains methodology that would use in conduct the
research. Chapter four also discuss the research findings resulting from the analysis of data and
finally are chapter five would have been summarized the research findings and concluding the
study as well as proposing recommendations for future research.
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CHAPTER TWO
2. RELATED REVIEW LITRATURE
2.1 What is Service?

According to Zeithaml&Bitner (2004) service are deeds, processes, and performance. But the
broad definition, service defines to include all economic activities whose output not a physical
product or construction, is generally consumed at the time it is produced, and provides added
value in forms (such as convenience, amusement, timeliness, comfort, or health) that are
essentially intangible concerns of its first purchaser. A service is an intangible product involving
a deed, a performance or an effort that cannot be physically possessed (Zeithaml& Berry, 2003).
Services are a form of product that consist of activities, benefits, or satisfactions offered for sale
that are intangible and do not result in ownership of anything (Kotler& Armstrong, 2004).
Services are bought on the basis of promises of satisfaction (Dibb et. al, 2001)
Service means the need satisfied offering of a firm. The idea of service as potential customer
satisfaction or benefits is very important. Many business managers get wrapped up in the
technical details involved in producing a service. But most customers think about service interns
of the total satisfaction it provides. That satisfaction may require a total product offering that is
really the combination of excellent service, a physical good with the right features, useful
instructions, a trust worthy and perhaps familiar name that has satisfied the customer in the past
(Kotler and Gray, 2006).A service is a deed performed by one part of another. When you provide
a customer with a service, the customer can’t keep it. Rather a service is experienced, used or
consumed. You cannot hold a service. And it may be hard to know exactly what you will get
when you buy it. Service are perishable, they can’t be stored. This wakes it harder to balance
supply and demand (ibid).
2.2 Characteristics of Service

Service marketing is distinct from goods marketing (Dibbet. al, 2001). To understand the nature
of services marketing, it is necessary to appreciate the particular characteristics of services
(Dibbet. al., 2001). Service have four intrinsic characteristics that leads to different consumer
perceptions and behavior which makes it more difficult to evaluate quality and in turn making it
more challenging and complicated to achieve customer satisfaction and establishing competitive
6
advantage. Thus, services managers must deeply understand them to survive in the complex
service environment. The four basic characteristics of service are:
I. Intangibility:-Dibb et al.,( 2001) argues that Services differ From goods most strongly in
their intangibility. Intangibility stems from the fact that services are performances. They cannot
be seen, touched or smelled, nor can they be possessed. Intangibility also relates to the difficulty
that consumers may have in understanding service offerings (Dibbet. al., 2001).
II Inseparability:-Inseparability refers to the notion that, in many service operations,

production and consumption cannot be separated; that is a service is to a greater extent consumed
at the same time as it produced (Oliver, 1980).
III. Perishability:- Perishability refers to the fact that unlike physical goods, services cannot
be saved, stored, resold, or returned (Zeithaml&Bitner 2003).
IV. Heterogeneity:- Heterogeneityrefers to the variability in the quality of service, since

most services are labor intensive, they are susceptible to heterogeneity (Dibbet. al., 2001).
2.3 Designing a New Service Organization

Designing a service organization entails the execution of four elements of what refers to as the
service vision. The first element is identification of the target market, (Who is our customer?),
the second is the service concept (How do I differentiate our service in the market?), The third is
the service strategy (What is our service package and the operating focus of our service?) andthe
fourth is the service delivery system (What are the actual processes, staff requirements
andfacilities by which the service is created?) (Chase and Nicholas, 2002).
2.3.1 New Concepts Require an Adoption Process

When consumers phase a really new concept, their previous experience may not be
relevant.Those situations involve the adoption process. The steps individuals go through on the
way toaccepting or rejecting new idea. In the adoption process an individual moves through
some fairly definite steps:-
Awareness - the potential customer come to know about the service but lacks detail. The
customer may not even know how it works or what it will do.
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Interest- if the costumer becomes interested, he/she will gather general information and facts
about the product.
Evaluation- a consumer begins to give a service mental trial, applying it to his/her personal
situation.
Trial- the consumer may buy the product to experiment with it in use .A product that is either
too expensive to try, is not available to trial may never be adopted.
Decision-the customer decides on either adoption or rejection, a satisfactory evaluation and trial
may lead to adoption of the service and use of it regularly.
Confirmation-the adopter continues to rethink the decision and searches for support for decision
that is further re-enforcement (Murthy, 2002).
2.3.2 Types of Service Organizations

Types of service organizations can be classified in to three broad categories; Service business-are
organizations whose primary business requires interaction with thecustomer to produce the
service. Within this category I can make a further major Distinction:
a)Facilities- based service- where the customer must go to the service facility.
b) Field- based service:-where production and consumption of the service take place in the
customers place or environment
c. Customer support service:- provides support to external customers who have

alreadypurchased the service of the company,
d. Internal service:- re the service required to support the activities of the larger organization,
Their customers are the various departments within the organization which require such service
(Davis and Aquiline, 2003).
2.4 Categories of New Service

Susan Johnson divides new service innovations in to two major categories; Incremental service
and radical service, under incremental service; service line extensions are yields as new services
that augment current service. Radical are defined as new service offerings that was not
8
previously available or new delivery systems for extending service (Davis and Aquilano, 2003)
Service is more complex than goods, in that they include not only the ‘end product’ but also the
method by which that product is delivered Within this dual framework, I define thefollowing
four categories of new service:-
A. Window-raising service-those services that have relatively small increment of change along
both dimensions. In other words the product of that is delivered as part of the service doesn’t
differ significantly from the company’s current offerings, and it is delivered in a very similar
fashion. Services that fall in to this category usually have a very small impact on the firm’s
existing service operation and consequently can be brought to market in a relatively short period
of time (Buff and Rakish, 2004).
B. Breadth - of- offering service - represents a significant design change in the content of the
service, but is delivered to the customer in much the same manner as existing service. While the
specific content of the product differs, the basic method of delivering they service remains the
same. For firms developing new services in this category, the challenges is how to deliver all of
the different type of content to each of the corresponding different market segment in an
effective and efficient manner ( ibid).
C. Revolutionary services - represent new services that provide both very new content and aver
y new method of delivery. These services typically take longer to bring to market and require
significantly more of the firm’s resources than do any of the other categories (ibid).
D. Channel development service - are those in which the service that is provided in the same as
fact currently offered by the firm, but it is delivered differently through another channel, which is
often entirely new (ibid).
2.5 Service Delivery Approach

Service consists of social processes that involve a physical or informational interaction between
provider and customers. Customer enters service system with the expectation of receiving same
self-satisfying benefit. The interaction of employees and customers really lies at the heart of
most service system. The inputs to service delivery system are the market priorities, and the
organization capacities. Additionally service delivery system integrates customers more fully as
active participants in the production system itself. Customer expectation of the delivery system
9
are also vital to marketing efforts designed to retaining existing customers and attract new ones.
(Joseph 2001).
The following are the approaches in which service can be delivered to target customers:
1. The production line approach - the value of this philosophy is that it overcomes many of the
problems inherent in the concept of service itself. That is service implies subordination or
subjugation of the server to the served. Manufacturing on the other hand avoids this connotation
because it focuses on things rather than people (Davis and Aquilano 2003)
2_ the customer involvement approach, it advocates that the service process can be enhanced
by having the customer take a greater participatory role in the production of the service.
Obviously this philosophy requires some selling on the part of the service organization to
convenient customers that this is benefits to them. To this end a number of steps are proposed
including developing customer trust, promoting the benefits of cost, speed and convenience, and
following up to make sure that the procedures are being effectively used. in essence this turns
customers in to ‘ partial employees ‘ who must be trained in what to do and be compensated
primarily through loan prices that are charged for the service (ibid).
3. The personal attention approach is basically the concept of mass - customization applied
to service. With this approach each customer is treated as an individual, with the service firm
often maintaining a data of each customers like and dislike (ibid).
2.5.1 Seven Steps to Good Service
In relation to service delivery, Julie (2004(, forwarded the following seven steps to good service
delivery
l.Say hello:- It sounds obvious the greeting you give yours customer sets the tone for the Whole
transaction, it deserves a little thought.
2. Establish it’s for you:- If Ask yourself ‘am I the right person to deal with this issue for this
Customer"? If you are not, now is the time to establish that and to put the customer in Touch
with the person who is.
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3. Research the fact:- Having established that you are the right person to deal with this; it is
time to get the facts. Remember that customers often do not express themselves directly, you
must dig deep to find the core need.
4. Verify the fact: - The purpose of this step is to make sure that what you heard is actually what
the customer said.
5. Initiate proposal:- The proposal for the way forward is based on your confirmed
understanding of the fact and your knowledge of what it is or is not possible for you’re to agree
to.
6. Commit to action:-This needs to be nothing complex then to say something like ‘I will get on
to the right away’. It is positive statements that promise prompt action. If the customer has
anything to do, then your statement will generally prompt a similar statement from the above.
7. End Transaction: - by the time you have reached this stage with your customer you are
feeling both pretty good. You have listened and understood; you both know what is going to
happen next and are in agreement about it, so why do you need to talk about ending the
transaction? Quite simply because you have worked hard to get this far, you have gained the
advantage and you do not want to lose it now with a casual close
2.5.2 Benefits of Good Service

If as service giver I deal with our customers efficiently and effectively, then the company will
benefit in a number of areas: The cost of solving problems that occur will be minimized; Money
own to the company may be collected quickly; Relationship is developed between the company
and customer;
The Possibility of supplying serviced is opened up; and it introduces the customer to an area of
the company rather than sales (Murthy, 2002).
2.6 Technology Trends in Service Delivery

According to (Berry Leond L. 2002), advances in technology, including automated equipment,
voice recognition systems, high speed data transmissions lines, and faster and more power full
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computers, also have had a significant impact on service. Contributing to the growing trends in
service is the fact that large amount of data are readily accessible to day and can be transmitted
inexpensively over long distance. I identify several major trends in delivery of service that are a
direct result of technology.
2.7 Definition Basic Concepts of Customer Satisfaction

Drawing on work done in service delivering, I define customer satisfaction as being directly
related to the comparison between a customer’s expectation of service’s performance and that
customer’s perception of that service. In other words if the perceived performance meets
expectation then the costumer is satisfied: if it exceeds expectation by a large amount, then the
customer is highly satisfied or delighted; if the performance falls significantly short of
expectations, then the costumer is dissatisfied. Shortly it is disconfirmation or difference between
customers’ expected and perceived performance of a service (Davis and Aquila no, 20003).
Customer expectations are defined as customer preconceived notions of what level of service
they should receive from a particular service organization. Expectation can be derived from
several sources. One source of expectation is advertising. Expectation also can be predicted on
the customer’s prior experience with the company. Additional source of expectation include
word of mouth and previous experiences with similar type of operations (Joseph, 2001).
2.7.1 Discovering Customer Need

It is frequently very difficult to get a precise reading on what customers want and need when
they are confronted with revolutionary ideas for new products. A principal activity of firm’s
marketing department is to carefully scrutinize its customers to understand what they need, to
study industry trends, to examine competitor’s product and to even analyze the need of a
customer’s customer (Berkowitz and Kerin, 2000), Needs are states of felt deprivation. Whereas
‘wants’ are the form of human needs takes as shaped by culture and individuals personality.
Demand is a human want that are backed by buying power (ibid).
2.7.2 Satisfying Customer Need

Since the organization obviously can’t satisfy all customers’ needs, it must concentrate its effort
on certain need of a specific group of potential customer. This is the target market one or more
specific groups of potential customer toward which an organization directs its attention. The four
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‘PS’, controllable marketing mix factors; having selected the target market customers, the firm
must take steps to satisfy their needs. The organization must take action and develop a complete
marketing program to reach customers by using a combination of four tools, often called the four
‘PS’:
Product - a good, service or idea to satisfy the customers need.
Price -- What is exchanged for the product?
Promotion - a means of communication between the seller and the buyer.
Place - a means of getting the product in to the customer’s hand (Perrault and McCarthy 2006).
The uncontrollable, environmental factors:- there are a host of factors largely beyond the control
of the organization. Which includes: social, technological, economic, competitive and regulatory
factors (ibid),
2.8 Building Customer Equality

CRM takes a large term view. Companies want not only to create profitable customers, but to
own them for life, capture their customers’ life time value and earn greater share of their
purchases Customer equity is the combined discounted customer lifetime value of the
¢company’s current and potential customers (Perrault, 2005).
Clearly, the more loyal the firm’sprofitable customer, the higher the firm’s Customer equity may
be a better measure of a firm’s performance, than current sales or market share. Whereas current
sale or market share reflect the past, customer equity suggest the future (Ibid).
2.9 Growing Share of Customer

Beyond simply retaining good customer to capture customer lifetime value, good customer
relationship management can help marketers to increase their share, of customer. The share they
get of the customers purchasing in their product categories. Many marketers are now spending
less time figuring out how to increase share of market and more time trying to grow share of
customers (Martinich, 2005). To increase share of customers, firms can leverage customer
relationships by offering greater variety to current customers. Or they can train employees to
cross- sell and up-sell in order to market more products to existing customers (ibid).
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2.9.1 Consumer Market and Customer Buyer Behavior
Consumer buyer behavior refers to the buying behavior of final consumers (individuals and
households) who buy goods and services of personal consumption. All of these final customers
combine to make up the consumer market (Kotler and Gray, 2006).
Below are the characteristics affecting customer behavior: customer purchases are affected
strongly by:
A) Culture, sub culture and social class;
B) Personal factors: age, life cycle, stage, occupation, economic situation, life style, personality
and self-concept.
C) Social factors: group, family, roles and status
D) Psychological factors; motivation, earning, belief and attitude (ibid).
2.10 The Changing Nature of Customer Relationship

Dramatic changes are occurring in the way in which companies are relating to their customers.
Yesterday/’s companies focused on mass marketing to all customers at arm’s length. Today’s
companies are building more direct and lasting relationship with more carefully selected
customers (Berkowitz and Kerin, 2000).
A. Relating with more carefully selected customers: - Few firms today till practice true mass
marketing selling in a standardized way to any customer who comes along. Today most
marketers realize that they do not want relationship with every customer. Instead, companies
now are targeting fewer, more profitable customers (Julie, 2004). /At the same time the
companies are finding new way to deliver more value to consumers; they are also beginning to
assess carefully the value of customers to the firm. Called selective relationship management,
many companies now use customer profitability analysis to weed out losing customers and target
wining ones for pampering (ibid).
B. Relating on the long term: - just as companies are being selective about which customer they
choose to serve, they are serving chosen customers in a deeper, more lasting way. Today’s
companies are going beyond designing strategies to attract new customers and create transaction
14
with them. They are using customer relationship management to retain current customer and
build profitable, long term relationship with them. The new view is that marketing is the science
and a finding, retaining and growing profitable customer (Berry 2002).
C. Relating directly: beyond connecting more deeply with their customers, many companies are
also connecting more directly, in fact direct marketing is booming.
Consumers can how buy virtually any product without going to stores, by telephone, mail order
catalogs and online. Some marketers have hailed direct marketing as marketing model of the
next century (ibid).
2.11 Building the Right Relation with the Right Customer

Companies should manage customer equity carefully. They should view customers as assets that
need to be managed and maximized. But not all customers, not even all loyal customers, are
good investments. Surprisingly some loyal customers can be unprofitable, and some disloyal
customers can be profitable (Boon and Kurtz, 2001). So as to build the right relationship with the
right customer, I need to select the right customer, and to select the right customer, I have to
classify the whole customers in to specific groups according to their profitability and loyalty.
The following are types of customers classified by different scholars
a.Butter flies: - are profitable, but not loyal. There is a good fit between the company’s offering
and their needs. Hover, like real butter flies, I can enjoy for only a short while and then you are
gone. Efforts to make butterflies converted in the loyal customer are rarely successful. Instead
the company should enjoy butterflies for the moment. It should use promotional blitzes to attract
them, create, satisfying and profitable transactions with them, and cease invests in them until the
next time around (Berry, 2002). .
b. True friends: - are both profitable and loyal. There is a strong fit between their needs and
the company’s offerings. The firm wants to make continuous relationship investments to delight
this customers and nature, retain and grow them. It wants to true friends in to true believers; who
come back regularly and tell others about their good experience with the company (ibid).
15
c. Barnacles: - are highly loyal, but not very profitable. There is a limited fit between their need
the company’s offerings. The company might be able to improve their profitability by selling
them more, raising their fee, or reducing service to them. Hover, if they can’t be made profitable,
they should be fired (ibid).
d. Strangers: show low level of profitability and little projected loyalty. There is little fit
between the company’s offerings and their needs. The relationship management strategy to these
customers is simple; do not invest anything on them (ibid). While to achieve the right
relationship with the right customer one has to clearly know the relationship building blocks; the
key to build lasting customer relationship is to create superior customer value and customer
satisfaction, satisfied customers are more likely to be loyal customers and to give the company a
larger share of their business (Kotler and Gray, 2006). A company can always increase customer
satisfaction by lowering its price or increasing service. But this may result in lower profit. Thus
the purpose of marketing is to generate customer value profitability. This requires a very delicate
balance (ibid).
2.12. Factors Affecting Customer Satisfaction

A. Firm Related actors: factors that falls primarily with in the firms control can be grouped into
four types of waits;
i. Unfair versus fair waits - the successful management of the customer’s perception of fairness
with respect to waiting is dependent on queue design, service system design and contacts hours.
A popular approach to ensure fairness is to group all customers in to a single queue or line
(Davis and Aquila no, 2003).
ii. Uncomfortable versus comfortable waits - it is common sense that when one is
uncomfortable,. Time passes more slowly. There are many ways in which service organization
can affect comfort; temperature, lighting, seating and sound levels should all be considered
(ibid).
iii. Unexplained versus explained waits - customer dissatisfaction with waiting increases when
the waits can’t be justified or explained The repeated use of the same reach, no matter how valid
it is., eventually will negate any benefits gained From the explanation. Waits of unknown
16
duration seem always longer than waits of longer duration. Although there is a justifiable reason
for apparently idle capacity, the customer should not be expected to recognize these.
Consequently workers on rest breaks should not be within the customers view. Thus idle service
workers and service stations should be camouflaged when not in use (ibid).
iv. Initial versus subsequent waits -As Minister Points out, customers tend to be more
dissatisfied with initial waits prior to entering a service delivery system than they are with
subsequent waits after they are in the system (ibid).
B. Customer Related Factors ~ there are some factors that affect customer satisfaction with
waiting that the firm can’t control (Berkowitz and Kerin, 2000). It solo versus group waits -
people waiting in line by themselves tend to grow impatient with the wait in comparison to
people waiting in groups. Although this is not something that can be changed by the service
organization recognition of this fact may suggest service appropriate destructions/ alternatives
(ibid).
Waits for more valuable versus less valuable service - when a service is perceived to be of high
value, customers are willing to Wait longer then they would if they perceived the product to be
of lower value. In other words the perceived value of the product is large enough that customers
are willing to absorb some of the costs in the fund of waiting time. (ibid).
Customers value system - business need to recognize the importance of segmenting the market
by customer value system. Customers who put a premium on obtaining fact service do not mind
paying for it and these some customers do not want to waste their time. To assure consistency
From customers perspective the market focus on the firm, therefore also must be incorporated in
to its operational strategy for Waiting line management (Perrault, 2006). i
Customer’s current attitude -the attitude of customers just prior to interring the service operation
can have significant impact on their level of satisfaction with the service they receive. If
customers enter the service operation upset, they are more likely to be dissatisfied with their
Wait regardless of its length. These types of hallo effect will also impact the customer’s
perception of all facets of the service that they receive (ibid).
17
C Both Firm and Customer Related Factors There are some factors that relate to customer’s
satisfaction With Waiting that can be influenced by both the firm and customer (Martinich,
2003).
These are discussed as follows:
Unoccupied versus occupied waits: Customers who are unoccupied tends to perceive longer
Waiting times than do customers who are occupied during their Waits. Under certain
circumstances, customers can be kept busy while waiting in line doing meaningful activities that
can improve the efficiency of the service (ibid).
Anxious versus calm waits: Customer anxiety regarding the nature of the service or uncertainty
of the wait can affect customer satisfaction. Service organizations can’t totally eliminate
customers anxiety associated with these types of Waits, but they can nevertheless, look critically
at the nature of the service that they provide and take necessary steps to try to reduce customers
anxiety in such situations Providing readingmaterials that both occupy the wait and
simultaneously explain the procedures to be followed can be very effective in reducing
customer’s anxiety and the associated level of impatience with the wait (ibid).
18
CHAPTER THREE
3. Research design and Methodology
Introduction
This chapter is includes ,research design, research approach, sampling technique, target
population, size sample ,method of data collection ,data source ,method of data analysis and
ethical consideration
3.1 Research Design

Research can be classified as exploratory ,descriptive and explanatory depending on the specific
purpose that the research tries to address (Saunders et al, 2012) .Exploratory research design
deals with exploring in to the phenomenon (Marczyk et al., 2005). It focuses on collecting either
secondary or primary data using unstructured formal or informal procedures to interpret them.
Some exploratory research design includes in-depth interview, focus groups, and projective
techniques. Description refers to the process of defining, classifying, or categorizing phenomena
of interest. Descriptive research is useful because it can provide important information regarding
the average member of a group (Marczyk et al., 2005). Specifically, by gathering data on a large
enough groups of people, a researcher can describe the average member, or the average
performance of a member, of the particular group being studied. Explanatory research is about
being able to describe something and having the ability to predict one thing based on knowledge
of another are important goals of scientific research (Marczyk et al.,2005).
Therefore, descriptive study design is used to analyze for the data collected From customers. The
reason behind using descriptive study design is because the researcher is interested in describing
the existing situation under study. Specifically, by gathering data on a large enough groups of
people, a researcher can describe the average member, or the average performance of a member,
of the particular group being studied. To make those practical qualitative research methods
would be used to approach the study subjects.
3. 2 Research approach
This study would be used both qualitative and quantitative approach. In this study quantitative
research approach used for involves collecting and converting data in to numerical form so that
statistical calculations can be made and conclusions drawnand qualitative data. In this study
19
would bebe help to know the attitude, knowledge, skill and believes of employees. In this study
qualitative and quantitative data would be collected to meet the research of objectives. Both
qualitative and quantitative research methods would be used. The rational of using the mixed
method is that it would solve. The research problem and would achieve the objective
3.3 Method of Data Collection
3. 3.1 Type and Source of Data

The study would be using both primary and secondary source of data. The primary source of data
provides first-hand information in order to avoid bias and miss leading interpretation; this
primary data would be collected through questionnaires and interview. Whereas the secondary
sources of data are includes journals and books related to the topic.
3.4. Target population,Sampling Techniqueand Sample Size
3.4.1Target population
Targetpopulations for the research would be employees,customers and manager of Ethiopia
commodity exchange (EXC) of Dilla branch.
3.4.2 Sampling technique

The researcher would be used both probability and non-probability sampling technique From the
various categories of probability sampling technique. The researcher would be specifically
employee simple random sampling technique, this is because first, and all the employees are
considered equally important for the study. Second, the researcher will be access to get the list of
all employees and the last, but not the least reason is in order to avoid bias simplerandom
sampling technique is the first choice of the researcher. On the other hand, among the different
types of non- probability sampling technique, convenience sampling technique will be selected.
This is for the reason that it isdifficult to get all the customers of the Ethiopia Commodity
Exchange (EXC). Due to timeand budgetconstraint of the respondents among the entire
customers of the organization would be used.
20
3.4.3 Sample size determination
Target populations for the research would be employees and customers of Ethiopia commodity
exchange Dilla branch. The researcher was use judgmental sampling method for employees and
Convenience sampling method for customers.The researcher takes sample simply by asking for
volunteers and in the interest of respondent. Finally 120 questionnaires were distributed for the
customers and employees to be filled out. Ethiopian Commodity Exchange found inDilla town,
purposely selected for my study. The study populations include for this research work are
customers who would in the Ethiopian Commodity Exchange, having direct exposure to the
service. After explains the aim of the study to the customers, the required amount of
questionnaires would be given
3.5 Method of Data Collection Instruments

This study would be used both primary and secondary type of data. Primary data would be
collected through questioners, interviews as well as focus group discussion with selecting
management staffs of the company. Secondary data would be collected from company published
document and literatures, books and other publications.
The questionnaire is use vastly because it is less time consuming and less costly than interview,
interview wise it is employee in areas where detail information would gathered and where
comparative advantage of clarifying the question to respondents are demanded.
3.6 Method of Data Analysis

The study would be follow accurate procedure to analyze the data, which is obtaining by both
instruments. The data, which areamasses form both instruments would be analysis using both
qualitative and quantitative approaches. For quantitative data descriptive statics used to through
tabulate and put in number and percentage and figure, the responses from the interview would be
used to support and strength the ideas obtaining by the questionnaire in the qualitative analysis
part. The qualitative description approach is all about the theoretical synthesizing or scrutinizing
part of the study, based on the quantitatively present data. The study would be try its best in
taking care to refrain from influencing conclusion and the general analysis would be to make the
whole study more reliable and dependable.
21
3.7. Ethical Considerations
In order to keep the confidentiality of the data given by respondents, the respondents Ire not
required to write their name and assured that their responses is treated in strict confidentiality.
The purpose of the study was disclosed in the introductory part of the questionnaire.
Furthermore, the researcher tried to avoid misleading or deceptive statements in the
questionnaire. Lastly, the questionnaires Ire distributed only to voluntary participants.
22
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
INTRODUCTION
This section of the study deals with the presentation, analysis and interpretation of data that has
been gathered through interview and questionnaires.
The objective of the study is to “the assessment service delivery system on customer
satisfactions Dilla Branch”.. The researcher has target respondent customers, Employees and
Managers of the Ethiopian commodity exchange(EXC).
Therefore, data gathered through the questionnaires Ire presented using tabulation and
percentage. Thus the Table below contains the demographic characteristics of the respondents.
TABLE 4.1 Demographic characteristics of respondents

No Item Alternative Response in
Frequency Percent
(%)
1 Educational status Degree 40 66.67
Masters degree 15 25
Diploma - -
PHD and above 5 8.33
Total 60 100
2 Work experience <1 years 10 16.67
2-5 years 30 50
5-10 years 15 25
10 and above 5 8.33
Total 60 100
Married 20 100
Marital status Divorced 0 0

3 Single 0 0
Total 20 100%
Source; survey 2020
23
According to the Table 4.1 out of 60 respondents 40(66.67%) hold degree, 15(25%) have
master’s degree, 5(8.33%) hold PHD and above. It also shows that 10(16.67%) have work
experience of less than 1 years, 30(50%) them 2_5 years, 15(25%) them 5_10 years and
5(8.33%) have above 10 years work experience.From the above analysis I can easily inferred that
the majority of the respondents are majority of them holds degree and most of them have 2_5
years’ work experience so this helps Ethiopian commodity exchange(EXC) to give quality
service to customer or they can give good quality service.The above Table(4.1), shows that all 20
of the respondents are found to be married, This constitutes that 100% of the customers are
married or leading household. Now again according to the Ethiopian population and census
authority report, 2009, the dependence rate is 1:4 this implies one individual is expected to feed 4
(four) other individuals who are dependent on him. In addition to this family size of Ethiopia
averagely is 7 (seven). This means, it is expected that there are 7 (seven) members at a single
household.Generally, the customers being married have the aforementioned links with variety of
dimension and extent
Analyses of main questionnaires collected
Table 4.2.1 employs deliver service to users in friendly manner

No Item Alternative Response
Frequency Percent (%)
1 Does this company deliver service to Yes 45 75%
users in friendly manner? No 15 25%
Total 60 100
Source; survey, 2020
According to the Table 4.2.1 60 respondents are required to answer the question and 45(75%)0f
them says yes and 15(25%)0f them replied no .From this Ican understand that most of time
Ethiopian commodity exchange(EXC) employs deliver service to users in friendly manner and
this results service delivered effectively and result in customer satisfaction.
24
Table 4.2.2 employee’s capacity to provide service properly
2 Do you have adequate Yes 25 41.67%
capacity to provide service No 35 58.33%
properly? Total 60 100
According to the above Table 4.2.2, reveal that out of the total respondents 25(41.67%) of the
Ethiopian commodity exchange(EXC), employees respond they have adequate capacity to
provide proper service and 35(58.33%) of them, said they have not adequate capacity to provide
service properly. From this I can understand most of Ethiopian commodity exchange(EXC)
employees does not have adequate capacity to provide service properly to customer, this creates
gap to deliver quality service to customer and dissatisfies customer.
Table 4.2.3 coordination of employees with manager

3 Do you have coordination with Yes 40 66.67%
the manager? No 20 33.33%
Total 60 100
According to the above Table 4.2.3 out of the total respondents 40(66.67%) respond yes and
20(33.33%) respond no. From this I can analyze; Ethiopian commodity exchange(EXC)
employees have coordination with the Ethiopian commodity exchange(EXC) manager and this
coordination between them, facilitate the quality service delivery process toward satisfaction of
customer.
25
Table 4.2.4 readiness of employees to customer/users
4 How is the readiness of you to Excellent 10 16.67%

service customer/user?
Very good 15 25
Good 10 16.67%
Fair 20 33.33%
Poor 5 8.33%
Total 60 100
According to the above Table out of the respondents 10(16.67%) respond excellent, 15(25%)
agree very good,10(16.67%) agree good ,20(33.33%) says fair and 5(8.33%) respond poor. From
this I can understand the readiness of employs to service customer/user is fair, so this delays
service delivery toward customer satisfaction.
Table 4.2.5 Evaluate the during service delivery process

How
5 do you evaluate the speed of Excellent 10 16.67%
Very good 15 25%
service delivery provided for Good 20 33.33%
customers? Fair 15 25%
total 60 100
According to above Table 4.2.5 out of total respondents 10(16.67%) of them respond excellent,
15(25%) of them respond very good, 20(33.33%)of them respond good and 15(25%) of them
respond fair. From this I can understand that employee’s customer request speed is good,so this
makes reduction in customer satisfaction level and overall service delivery.
26
Table 4.2.6 customer request acceptance level
Frequency Percent
(%)
6 How is your customer request Excellent 10 16.67%
acceptance level? Very good 15 25%
Good 20 33.33%
Fair 15 25%
Total 60 100
Source; survey, 202o
According to above Table 4.2.6 out of total respondents 10(16.67%) of them respond
excellent,15(25%) of them respond very good ,20(33.33%)of them respond good and 15(25%) of
them respond fair. From this I can understand that employees’ customer request acceptance level
is good, so this makes reduction in customer satisfaction level and overall service delivery.
Table 4.2.7 employee’s politeness level to customer

7 How is your politeness level Frequency Percent
to customer? Excellent 15 25%
Very good 25 41.67%
Good 10 16.67%
Fair 10 16.67%
Total 60
100
According to the above Table 4.2.7 out of the total respondent 15(25%) of respondent replied
that their politeness level to customer is excellent, 25(41.67%) of them replied verygood,
10(16.67%) respondent replied good, 10(16.67%) of them respond fair. From this I can refer that
Ethiopian commodity exchange(EXC) employee’s politeness to customer is very good, so this
results employees deliver service to customer without boring and mistakes.
27
Table 4.2.8 Overall quality service delivery in the Ethiopian commodity exchange (EXC)
8 Howis the overall quality Excellent 5 8.33%
Very good 15 25%
service delivery?
Good 15 25%
Fair 20 33.33%
Poor 5 8.33%
Total 60 100
According to the above Table 4.2.8 out of the total respondents 5(33.33%) of them respond
excellent, 15(25%) of them responds very good, 15(25%) of them respond good, 20(33.33%) of
them respond fair and 5(8.33%) of them respond poor .From this I can understand that quality
service in the Ethiopian commodity exchange(EXC) used in fair manner and this makes absence
of prompt service in timely manner.
Table 4.2.9 service delivery impact on the organization

Do
9 yo do you think service delivery Yes 45 75%
No 15 25%
has an impact on the Total 60 100
organization?
According to the above Table 4.2.9 out of respondents 45(75%) of them respond yes and
15(25%) of them respond no. From this I can understand that most of time Ethiopian commodity
exchange(EXC) service delivery has impact on the organization.
28
Table 4.2.10 over all Ethiopian commodity exchange (EXC) quality service delivery
Frequently Percent (%)

10 How is the overall quality Excellent 10 16.67%
service delivery? Very good 15 25%
Good 5 8.33%
Fair 25 41.67%
Poor 5 8.33%
Total 60 100
According to the above Table 4.2.10 out of respondent 10(16.67%) of them respond excellent,
15(25%) of them respond very good, 5(8.33%) of them respond good, 25(41.67%) of them
respond fair and 5(8.33%) of them responds poor about overall quality service deliver. From this
I can understand that the overall quality service delivery in the Ethiopian commodity exchange
(EXC) that delivered to users is fair
4.3 Analysis of questionnaires collected from customers

N Alternative Response in
O Frequency Percent (%)
11 Do you have get quality Always 10 16.67%
service in timely manner? Mostly 20 33.33%
Rarely 25 41.67%
Never 5 8.33%
Total 60 100
Table 4.3.1 customer get quality service in timely manner
According to Table 4.3.1 out of respondents 10(16.67%) of them respond always, 20(33.33%) of
them respond mostly, 25(41.67%) of them respond rarely, 5(8.33%) of them respond never they
get quality service. From this I can understand that customer get quality service rarely in the
Ethiopian commodity exchange(EXC) and this result in customer dissatisfaction.
29
Table 4.3.2employs responsiveness to customer

12 How is employee’s Excellent 5 8.33%
Very good 10 16.67%
responsiveness to you? Good 5 8.33%
Fair 30 50%
Poor 10 16.67%
Total 60 100
According to Table 4.3.2 out of respondents 5(8.33%) of them replied excellent, 10(16.67%) of
them replied very good, 5(8.33%) of them replied good, 30(50%) of them replied fair and
10(16.67%) of them replied poor about employees responsiveness to them. From this I can
understand that half of respondent that means 30(50%) of them replied employs responsiveness
to them is fair and I conclude employs responsiveness to customer is fair and this delays quality
service delivery in the Ethiopian commodity exchange(EXC).
Table 4.3.3employees treat customer equally

13 Does the Ethiopian commodity Yes 15 25%
exchange(EXC) employs treat No 45 75%
all customer equally?
Total 60 100
According to Table 4.3.3 out of respondents 15(25%) of them said yes and 45(75%) of them said
no employs treat all customer equally. From this I can understand that Ethiopian commodity
exchange(EXC) employees can no treat all customers equally, this resulted in change of
customer attitude toward the Ethiopian commodity exchange(EXC).
30
Table 4.3.4employees communicate with customer during delivery process
14 Does the Ethiopian commodity Yes 20 33.33%
exchange(EXC) employee No 40 66.67%
effectively communicate with Total 60 100
you during delivery process?
According to Table 4.3.4 out of respondents 20(33.33%) of them said yes and 40(66.67%) of
they said no employees effectively communicate with them during delivery process. From this I
can understand that an employee does not communicate with users during delivery process and
this makes customers does not treated regarding to their services
Table 4.3.5 customer satisfaction

15 How satisfied are you in the Frequency Percent
service delivery? Very satisfied 15 25%
Satisfied 10 16.67%
Fair 30 50%
Undecided 5 8.33%
Total 60
100
According to Table 4.3.5 out of respondents 15(25%) of them said very satisfied, 10(16.67%) of
them respond satisfied, 30(50%) of them respond fair and 5(8.33%) of them said undecided
about they, satisfied from service. From this I can understand that customer satisfaction toward
service delivery is fair or they satisfied fairly.
Table 4.3.6 facility in the Ethiopian commodity exchange(EXC)

16 How is the Ethiopian Most adequate 25 41.67%
commodity exchange(EXC) Adequate 35 58.33%
facility wise?
Total 60 100
31
According to above Table out of respondent 25(41.67%) of them said most adequate and
35(58.33%) of them said adequate the facility in the Ethiopian commodity exchange (EXC).
From this I can understand that facility in the Ethiopian commodity exchange(EXC) that deliver
service to customer is adequately wise or adequate amount of facility in the Ethiopian
commodity exchange(EXC) so this facilitate prompt quality service delivery.
Table 4.3.7 complain about Ethiopian commodity exchange(EXC)

17 Do you have any complain Yes 50 83.33%
about the Ethiopian commodity No 10 16.67%
exchange(EXC)? Total 60 100
According to Table 4.3.7 out of respondents 50(83.33%) of them respond they have complain
about Ethiopian commodity exchange(EXC) and 10(16.67%) of them respond they have not
complain about Ethiopian commodity exchange(EXC). From this I can understand that most of
customers havecomplained about Ethiopian commodity exchange(EXC) service delivery.
Table 4.3.8 types of complain customer

18 What type of complain do you Frequency Percent
have? Price related 10 16.67%
Quality 30 50%
related
Safety related 10 16.67%
Time related 10 16.67%
Total 60
100
According to the above Table 4.3.8 out of respondent 10 (16.67%) of them have price related
complain, 30(50%) of them respond they have quality related complain, 10(16.67%) of them
32
respond they have safety related complain and 10(16.67%) of them respond that they have time
related complain .From this I can understand that most of Ethiopian commodity exchange(EXC)
customer have quality related complain about Ethiopian commodity exchange(EXC).
Table 4.3.9 overall service delivery to customer


19 How does the overall quality Excellent 5 8.33%
Very good 10 16.67%
service delivery address to Good 15 25%
Fair 25 41.67%
you?
Poor 5 8.33%
Total 60 100
According to above Table 4.3.9 out of respondents 5(8.33%) of them said excellent, 10(16.67%)
of them respond very good, 15(25%) of them said good, 5(8.33%) of them said poor and
25(41.67%) of them said fair about overall quality service delivery. Fromthis I can understand
that the overall quality service delivery addressed to customer is fair, so this means customer not
fully satisfied
Table 4.3.10 customer recommendation about Ethiopian commodity exchange(EXC)

service delivery
20 Do you have recommendation Yes 25 41.67%
to Ethiopian commodity No 35 58.33%
exchange(EXC)?
Total 60 100
According to the above Table 4.3.10 out of respondent 25(41.67%) of them respond yes and
35(58.33%) of them respond no recommendation to Ethiopian commodity exchange(EXC)
regardless of quality service delivery and 25(41.67%) of them said yes and they gives
33
recommendation in areas of quality, time, price, employs politeness and they recommend
Ethiopian commodity exchange(EXC) to improve in this areas to address quality service to them.
4.4 Analysis of interview

1. Would tell me please the primary role of manager in the Ethiopia CommodityExchange (EXC)
during service deliver?
According to the manager of Ethiopia CommodityExchange (EXC) the primary role of manger
in the Ethiopia CommodityExchange (EXC) is managing the overall activities that facilitate
service delivery process to achieve superior customer satisfaction and other role such as
evaluating employs performance, preparing training program to employs, integrating various
department, evaluating speed of service delivery and in general he controls the overall activities
to achieve quality service delivery.
2. How do you evaluate the speed of service delivery provided for the customer?
According to the Ethiopia CommodityExchange (EXC) manager said the speed of service
delivery provided for the customer is evaluated every day by using information collected. The
speed of service delivery delivered by employs each day is evaluated by manager and other
related department to facilitate customer satisfaction. From this I can understand that the speed
of service delivery is evaluated by manager every day.
3 .how do you undertake customer request of employee performance in the Ethiopia

CommodityExchange (EXC)?
As manager said customer request about employee performance is accepted and the performance
of employees measured by using benchmark. He identify most of employs have not satisfactory
performance to provide quality service to customer. From this I can understand that the Ethiopia
Commodity Exchange(EXC) employee performance is low to deliver quality service to
customer.
4 .how do you control your employs adequacy that provided service delivery in your Ethiopia
Commodity Exchange(EXC)?
34
According to Ethiopia Commodity Exchange(EXC) manager interview employs in the Ethiopia
Commodity Exchange(EXC) fairly adequate capacity to provide quality service to customer
further needs improvement. The manager said also he control employs adequacy. From this I can
understand that the Ethiopia CommodityExchange (EXC) employs have not adequate capacity to
provide quality service.
5. What are the factors that affect quality service delivery in the Ethiopia Commodity
Exchange(EXC)?
As manager said there are different factors that affect service delivery in the Ethiopia
CommodityExchange (EXC). These factors are political situation, lack of modern machine, lack
of employs capacity, and increase in number of patients day to day, overall Ethiopia
CommodityExchange (EXC) capacity to provide quality service. From this I can understand that
there are different factors that affect quality service delivery in Ethiopia CommodityExchange
(EXC).
6. What are the areas that need improvement by the Ethiopia CommodityExchange (EXC) to
deliver quality service?
According to the Ethiopia CommodityExchange (EXC) manager areas need improvement by

Ethiopia CommodityExchange (EXC) are building site, employs performance, number of
specialized doctors, facility aged in the Ethiopia Commodity Exchange(EXC), coordination
among department. From this I can understand that there are areas that need improvement by the
Ethiopia Commodity Exchange(EXC) to deliver quality service.
7. How is your responsiveness to employs and customer?
As manager, respond his responsiveness to customer and employs is good and this facilitate
quality service deliver toward achieving customer satisfaction. From this I can understand that
the manager responsiveness to employs and customer is not satisfactory needs improvement.
4.5 Major Finding

The overall study has come up with the following major findings that are directly akin to the title
of the study and demand special emphasis to be alleviated and thereby achieve explicitly related
to the objective of the study or research questions. '
35
All the services provided by the organization are poor as measured by the customers of the
organization. This has adversely affect the income of customers, and thereby the country’s
economy, by linking the taxpaying capacity of customers and reducing its commutation of hard
currency or deficit in the balance of payment.
Based on the evaluation of customers, the benefits that they generate due to working with the
organization is not satisfactory, other than being average this means the customers’ expectation
of the benefits and actual merits have varied.
The service being provided by the organization matches with the service delivery system, but the
problem is with those who provide the service to the customers. This implies an efficient service
delivery could be vitiated by inappropriate service provider. Most of the service providers are
eager to leave the organization before time reaches the primary objectives of the study.
36
CHAPTER FIVE
CONCLUTION AND RECOMMENDATION
5.1 CONCLUSION
Based on the major finding obtained through employing the questionnaire and administering
structured interview the overall study has concluded the following points.
The study has should that majority of the customers are males and women’s participation is
lacking in the organization, Majority of customersIre found to be married and hence leading
household, this indicates that the income of the customers shows to all members of the
household. And bearing in mind customers main source of income being trade, particularly
working with ECX, at Dilla, they are generating relatively better as compared with other
economic sources in the country.
As to the study the main reasons for customers to work with the organization is the absence of
any other alternative, which entertained such transactions in the country, other than smuggling.
But the primary motive of customer needs to be the profit that they generated due to their
cooperation with the organization.
The service of the laboratory is less satisfactory as confirmed by both customers and service
providers. This is triggered by both the equipment’s used and the
Professionals engaged in activating these materials. Due to low service quality of the laboratory
the customers are losing the benefit that belongs to them.
As measured by workers and customers the service of the entire six warehouses is less
satisfactory. Alike the laboratory the service of warehouses adversely affects the income of the
customers.
Majority of the respondents evaluated the services rendered by the management of entity and the
whole workers of the organization as less satisfactory. Although management is the brain of any
organization and workers being the machineries activated to achieve the organizations goals, in
ECX, Dilla these are not satisfying the customers or are less satisfactory,
37
> The organization is not providing all the services that the customers want From it in relation to
their previous service provider. This in return has affected the customers not in their satisfaction
but totally on the acquisition of these services.
> The organization is providing the service at lesser speed and quality. In other words the
services provided by the organization are not in congruence with the required speed and quality
demanded by the customers. Although the organization is not providing the services at the
required speed and quality, the customers have confirmed that the acquisition of the services at
bitter speed and quality is very crucial and directly contribute in their level of income.
> The internals rules and regulations of the organization do not have impact on customers’
satisfaction, rather it safe guards the rights of customers through preventing corruption in the
organization.
38
5.2. RECOMMENDATIONS
Since decision without direction is confusion after identifying the major findings and concluding
based on the critical findings. The study has forwarded the following comments, which either
exhilarate to sustain positive sides or strengths, or to totally alleviate their negative sides or
weaknesses. The recommendations have been made taking in to consideration the major finding
of the study and conclusions. Accordingly the suggested recommendations are put as follows:
If there exists some restrictions either explicit or implicit that hinder females participation the
organization has to eliminate, if possible, if this is not possible the organization need to reduce
the extent of such restrictions so as to enhance
Female’s participation in thereby reducing unemployment rate. The customers are working with
the organization due to absence of other alternatives, but this have to be eradicated either through
offering customers better benefit or providing quality services, which shifts them from
alternative seeker to true friends (type of customers).
In case of the laboratory service around 50% the tasks are carried manually, but these has to be
replaced by scientific electronic experiment to assuredly/axiomatically accept the results
emanating from the laboratory. But the use of nose and tongue is not advisable, because
according to the psychological. theory of sensory adoption has confirmed that our sense organs
fall to respond the same results repetitively, due to the fact that as they continue coexisting in
similar condition our sense organ are willing to adapt and perceive as nothing new is happened.
In addition to this material in the laboratory need to be checked their accuracy consistently over
time, to make warehouse service more satisfactory the organization need to use modern
technological materials that protect the product From diseases, reducing problems associated
with jute bag either by preparing jute bag for sale or through precaution about jute bag the
customers has to have they go the warehouses. The organization have to conduct CRP(Citizen
Report Card) so as to assess customers’ needs and then forward possible measures to meet the
requisites and feedback of the customers This will help the organization interns of evaluating
their satisfaction and listen feedbacks and new product development issues in accordance with
respective customers Since customers are not made beneficiaries as per they has to be, the
organization need to conduct survey to assess critically their expectations and the possible ways,
which customers forward to meet this benefits and make aware the management these
39
expectation to balance customers expectation with management perception of that expectation.
The management organ has to be equipped with enough human resource mobilize the hole
workers towards the attainment of predetermined vision, mission and objectives of the
organization. This can be achieved through that the management need to prepare training,
promotion and other opportunities, where good/better performers are acknowledge and penalties
such as demotion where poor performers has to be punished and even dismissed. Here the
management has to give emphasis to mental change, since awareness change is greater change
which is much more than any other change in inspiring and motivating employees. In general
intrinsically motivated workers are highly inspired than extrinsically motivated workers in
achieving organizational goal” the organization has to use BPR oriented service delivery system
for the sack of fostering the speed and quality of service rendered to customers, This\ can be on
their task only. According to the law of diminishing marginal utility, as one continue
consumption beyond maturity stage, then the total satisfaction diminishes. The same is true in
work, as one is over loaded by work, then the total satisfaction diminishes. These means the
commitment, inspiration, motivation, enthusiasm of the workers decreases as the management
impresses them.
40
REFERENCE
 Berkowitz, kerin, et.al (2000), “Marketing “6th, America: New York, McGraw Hill
Companies Inc. `
 Berry Leond L. (2002), ‘Marketing Service, Competing through Quality "foronto:
Newyork [ree press].
 Boon and Kurtz, (2004) ‘Contemporary Marketing; l0‘h, USA: Mike Rochie.
 Buff S. Elwood and Rakish K. Sarin (2004), ‘Modern Production / Operation
Management’, 8‘he, India, Replika press Pvt. Ltd, kundli.
 Chase B. Richard and Nicholas J. Aquilano, (2002) ‘Production and Operation
Management,
 Manufacturing and Service’, 7th, USA: Von Hoffman press Inc.
 Davis, Aquilanoet, al (2003), ‘Fundamentals of Operation Management’ 4th, USA:
International Edition BernetGorden.
 EEA/EEPRI, (2009),’the Quarterly Report on the Macroeconomic Performance of

 Ethiopia’, Vol 7, Nol: Adiss Ababa, Ethiopia; Extreme printing press.
 EEA/EEPRI, (2006),’Evaluation of the Ethiopian Agricultural Extension with Particular
Emphasis in the Participatorv Demonstration and Training Extension Svstem’lste,
Ethiopia, AdissAbaba; Rohobot printers.
 Joseph G.Monks, 2001 ‘Operations Management, Theorv and Problems ‘UAS: McGraw
HillInc.
 Julie Lewieth Waite, 2004 ‘Operational Management and Business Studies’, India, New
Delhi; Viva Books Pvt. Ltd.Kotler. Philip and Gray Armstrong, (2006), ‘Principles of Marketing,
1lth e India, Prentice H
41
DILLA UNIVERSITY
College of Business and Economics
Department Of Logistics and Transport Management
Survey Questionnaire
Objectives of the Questionnaire:
Dear respondents:
My name is GutamaYiazu, a prospective graduate of this academic year Fromdepartment of
Logistics and Transportation Management. First of all I would like to give you a heartily thanks
to give your precious time and kindest cooperative to fill this questionnaire. This questionnaire
will fill by the users Ethiopia Commodity Exchange (EXC) who are considered in the sample.
The purpose of the data which is mainly collected from you is to undertake a successful partial
fulfillment senior essay project for the bachelor degree in logistics and Transport management .
The research under investigation is entitled assessing “the assessment service delivery system on
customer satisfactions Dilla Branch”. Therefore the data provided in this questionnaire is vital
to the success and fruitfulness of the research results. Finally I would like to express my
gratitude and appreciation for your supportive activity for the research data collection task.
GeneralInstruction
Please put your (√) mark on the box provided for the statement you agreed with.
Section 1; Demographic Information

1. Educational level.
Complete grade/1-12 Certificate Diploma Degree
Masters PhD
2. Working experience <6 month 6 month-5 year 6-15 year
>15 year
3. Marital status: married Divorced single
42
Section 2 ;the following question have to filled by employees
1. Do this company deliver service to user is in a friendly manner?
Yes no
2. Do you have adequate capacity to provide service properly?
Yes no
3. Do you have coordination with the manager?
Yes no
4. How is the readiness of you service to customer?
Excellent very good
Good fair poor
5. How do you evaluate the speed of service delivery provided for users?
Excellent very good good poor fair
6. How is your customer request acceptance level?
Excellent very good good fair
7. How is your politeness level to customer?
Excellent very good
Good fair poor
43
8. How is the overall quality service delivery?
Excellent very good
Good fair poor
9. Do you think service delivery has an impact on the organization?
Yes , no
Section 3 ; the following questions have to filled by customers

1. Do you get quality service in a timely manner?
Always rarely
Mostly Never
2. How is employees’ responsiveness to you?
Excellent very good
Fair Good
3. Does the Ethiopia commodity exchange`s employs treat all customers equally?
Yes
No
4. Do the employees effectively communicate with you during delivery process?
Yes no
44
5. How satisfied are you in the service delivery?
Very satisfied Satisfied
Fair undecided
6. How is the company facility wise?
Adequate most adequate
7. Do you have any complain about this company?
Yes no
8. What type of complaint do you have?
Price related quality related
Time related safety related
9. How does the overall Ethiopia commodity exchange service delivery address to you?
Good very good
Excellent bad
10. Do you have any recommendation to company?
Yes no
45
Section 4; the following questions to have filled by manager
1. Would tell me please primary role that you play in the Ethiopia Commodity Exchange (EXC)
during service delivery process?
2. How do you evaluate the speed of service delivery provided for the customer?
3. How do you undertake customer’s request of employee performance in the Ethiopia Commodity
Exchange?
4. How do you control your employs adequacy that provided service delivery in the Ethiopia
Commodity Exchange??
5. What are the factors that affect quality service delivery in the Ethiopia Commodity Exchange
6. What are the areas that need improvement by the Ethiopia Commodity Exchange to deliver
quality service?
7. How is your responsiveness to employs and customers?
46
47

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DILLA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND TRANSPORT MANAGEMENT

“ASSESSMENT OF THE SERVICE DELIVERY SYSTEMON CUSTOMER

SENIORE ESSAY RESEARCH ON ASSESSMENT OF SERVICES

BY: GUTAMA YIGAZU

ADIVSOR: ENDIRIS.A (MBA)

TITLE:“ASSESSMENT OF THE SERVICE DELIVERY SYSTEMON CUSTOMER

Approval by the examining committee

Name: GutamaYigazu Signature

Date of submission: ___________

Name: Endris Ali (MBA)

ADLI - Agricultural Development Lead to industrialization

CRM-Customer relation management

CRC - Citizen Report Card

ECX - Ethiopia Commodity Exchange

EEA ~ Ethiopian Economic Association

HEP - Hydro Electric Power

EPCA - Ethiopian Population and Census Authority

ILAD ~ industrialization Leads to Agricultural Development

N SDP-New service development process

RATER - Reliability, Assurance, Tangibles, Empathy and Responsiveness

SERVQUAL - Service Quality

SNNPR-Southern nation nationalities and people’s region

1.3. Basic research question 3

1.4. Research objective 3

1.4.1. General objective 3

1.4.2. Specific objective 3

1.5. Significance of the study 3

1.6. Scope of the study 4

1.7 Limitation of the Study......................................................................................................................4

1.9. Organization of the study 5

2. RELATED REVIEW LITERATURE 6

2.1 What is Service?................................................................................................................................6

2.5.2. Benefits of good service 11

2.6. Technology trends in service delivery 11

2.7. Definition basic concepts of customer satisfaction 12

2.7.1. Discovering customer need 12

2.8. Building customer equality 13

2.9. Growing share of customer 13

2.9.1. Consumer market and customer buyer behavior 14

2.10. The changing nature of customer relationship 14

2.11. Building the right relation with the right customer 15

2.12. Factors affecting customer satisfaction 16

3. 3.1 Type and Source of Data..........................................................................................................20

3.4.1. Target population 20

3.4.2. Sampling technique 20

3.4.3. Sample size determination 21

3.5 Method of Data Collection Instruments...........................................................................................21

4.3. Analysis of questionnaires collected from customers 29

4.4. Analysis of interview 34

4.5 Major Finding..................................................................................................................................35

1.1Background of the Study

Oliver (1997, 1999),regards satisfaction as a fulfillment response or judgment, focused on

1. What is the service delivery systemof ECX Dillabranch?

2. What would be the importance of ECX service to the customers?

1.4 Research Objective

1.4.2 Specific Objective