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

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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.