Effect of Service Quality on Customer Satisfaction: A Case of TANESCO Ngara District, Kagera Region in Tanzania.

Mwasajone, Yonah Oseah (2025) Effect of Service Quality on Customer Satisfaction: A Case of TANESCO Ngara District, Kagera Region in Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

This study examined the relationship between service quality and customer satisfaction in Tanzania's energy sector, with a focus on Tanzania Electric Supply Company Limited (TANESCO) in Ngara District, Kagera Region, in Tanzania. The study’s specific objectives were to assess the effects of assurance, reliability, tangibility, empathy, and responsiveness on customer satisfaction. The study employed the SERVQUAL model. The study used the stratified and random sampling design to select the survey respondents. The researcher distributed structured questionnaires to 91 respondents to collect the research data. The data obtained were analyzed using descriptive and multiple regression analysis through SPSS. The analysis revealed that all five service quality dimensions of assurance, reliability, tangibility, empathy, and responsiveness had a positive and statistically significant influence on customer satisfaction. Among them, reliability and responsiveness had the strongest effects. The study concludes that responsibility and reliability werea major concerns of TANESCO customers’ satisfaction. The implications of this study indicated that TANESCO should prioritize reliability and responsiveness to enhance customer satisfaction. The study recommends TANESCO to develop targeted service quality improvement strategies and establish customer feedback mechanisms to monitor and adapt customers’ services. Additionally, the study inform policymakers to enforece the customers’ service quality in TANESCO. By improving service quality, TANESCO will increase its operational efficiency and financial performance. Keywords: Service Quality, Customer Satisfaction, SERVQUAL, TANESCO, Tanzania.

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