The Impacts of E-Business on Customer Satisfaction: The Case of Selected Insurance Companies in Bale Robe Town

Abstract

The purpose of this study is to investigate the impacts of E-business services on customer satisfaction in selected insurance companies in Robe town. The study measured E-business and its relation with customer satisfaction in the selected public Ethiopian Insurance Corporation and private United Insurance Companies. The sample consisted of 268 respondents’ selected based on random sampling procedure. Primary data were collected by using 5-point Likert scale questionnaire and interview with customer service managers and customer service supervisors of the selected insurance companies. A total of 226 questionnaires were properly filled and returned. The result of the study showed that service quality dimensions; assurance, empathy and reliability have strong influence on E-business user’s satisfaction level respectively and weak impact with tangibility and responsiveness to customer satisfaction level in selected insurance companies in Robe town. The correlation results indicate that there is a positive correlation between the dimensions of service quality and customer satisfaction. The results of the regression test showed that offering E-business quality service have impact on overall customer satisfaction. Thus, the major problem faced by insurance companies in relation to E-business network failure due to poorly developed telecommunication infrastructure, lack of reliable power supply and lack of ICT knowledge from internal customers, lack of integration E-business with bank service and lack of promotion from branches. In order to sustain a reliable service using new technology, insurance companies should work with government bodies (Ethiopian Telecommunication and Ethiopian Electric Power), should work on integration with bank and should work on promoting E-business for customers to gain competitive on insurance industry.