Assessing the Effect of Service Quality on Customer Satisfaction -A Study of ZSIC Life Limited

The key to surviving in a global market for every organization is to focus on the quality of service to customers and life insurance companies are not an exception. ZSIC Life limited has implemented several service features and systems such as changing the interior design of the institution, consistently delivering on promised services, promptly responding to customer needs and investing in technologies. Therefore, the study assessed the effect of service quality on customer satisfaction using ZSIC Life limited as an example. A study of 100 customers who had at least one life insurance policy with ZSIC life was conducted at the main branch in Lusaka. The study used a descriptive and experimental research design. The study analyzed the data by determining frequencies, percentages and means and also used correlation and regression analysis to determine the effect. The study found that service quality significantly impacts customer satisfaction. Specifically, tangibility i.e., physical appearance of office spaces was found to greatly influence customer satisfaction levels; Reliability which refers to consistency in service quality; Responsiveness, which involves timely and effective communication were crucial factors in enhancing customer satisfaction. The study revealed that the company’s’ responsiveness and tangibility have a significant impact on customer satisfaction while reliability had a lesser effect on customer satisfaction. Customer satisfaction had a linear dependence on tangibility, reliability and responsiveness with a correlation value of 0.964. The unstandardized coefficient for tangibility was 0.512. The t-value was 2.821, and the p-value was 0.0043, indicating a statistically significant relationship. This suggested that for every one-unit increase in tangibility, customer satisfaction increased by 0.512 units, holding all other variables constant. The significant p-value indicates that tangibility is an important factor in determining customer satisfaction at ZISC life insurance. The unstandardized coefficient for reliability was 0.842, with a standard error of 0.046. The t-value was 3.273, and the p-value was 0.0021, indicating a statistically significant relationship. This implied that for every one-unit increase in reliability, customer satisfaction increased by 0.842 units, holding all other variables constant. The significant p-value highlighted the crucial role of reliability in influencing customer satisfaction. An analysis of the impact of responsiveness on customer satisfaction revealed that a Pearson correlation coefficient of 0.748, signified a strong positive correlation. This meant that as responsiveness increases, so does customer satisfaction. The substantial correlation coefficient highlighted the importance of responsiveness in shaping customer satisfaction. Based on this significant correlation, it was concluded that responsiveness significantly impacts customer satisfaction. This depicted a very good linear dependence between the customer satisfaction and the three predictor variables. The study therefore recommended that insurance companies should improve physical environment, leverage technology to improve efficiency of services offered, provide consistent services, train employees, conduct regular customer surveys, monitor and evaluate service quality. This research would not only contribute to academic knowledge but also provide valuable insights for practitioners aiming to optimize service quality in the evolving insurance landscape.