Service Quality and Customer Satisfaction in Small and Medium sized Enterprises in Ibadan Metropolis, Oyo State

Abstract

Customer satisfaction is the key to the long-term survival of any business. It promotes customer
loyalty and ensures low customer attrition rate. In line with this, business owners and
researchers are usually interested in factors that affect customer satisfaction. This study
examines the influence of service quality on customer satisfaction in SMEs in Ibadan
Metropolis, Oyo state. The study adopted a descriptive survey research method. The population
encompassed residents of five local governments in Ibadan out of which 384 were
systematically selected as the study sample. The research instrument is a structured
questionnaire. Data was analysed using descriptive and inferential statistics. The study found a
high level of customer satisfaction among the SMEs. While customers set their expectations
quite high, these businesses generally meet them. The results also showed that service quality
has a significant impact on customer satisfaction. The study concluded that service quality both
play a crucial role in determining customer satisfaction. It was therefore recommended that
SMEs should prioritize activities and policies that enhance the quality of services rendered to
customers.