Assessment Of Farmers Satisfaction With Direct Seed Marketing: The Case Of Sibu Sire Woreda Eastern Wollega Zone, Ethiopia

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1 Assessment Of Farmers Satisfaction With Direct Seed Marketing: The Case Of Sibu Sire Woreda Eastern Wollega Zone, Ethiopia Dr.G.Parimalarani Associate Professor, Department of Bank Management, Alagappa University, Karaikudi, India Mr.Gadisa Adugna Keneni, Wollega University, Ethiopia Abstract This paper tries to assess agricultural farmers satisfaction on direct seed marketing in Sibu Sire Woreda. The general objective of the study was to assess agricultural farmers satisfaction on direct seed marketing in Sibu Sire Woreda. In this research, the SERVQUAL instrument developed by Parasuraman (1985), has been applied with a little modification in designing the questionnaire by using five dimensions of service quality: tangibility, reliability, responsiveness, assurance, and empathy. Questionnaires are distributed to 316 end users from 1500 active improved seed users of Sibu Sire Woreda farmers. The questionnaire aimed to determine the level of agricultural farmers satisfaction on direct seed marketing in Sibu Sire Woreda. Data collected from respondents were analyzed by both quantitative and qualitative methods. Key words: Service expectation,, Agro-dealers perception, Actual Service delivery, Delivered service. 1.1ntroduction In the world, 60,000 agricultural enterprises sell their products without middlemen. Among them are approx. 14,000 professionally managed companies. For these farmers direct marketing represents the main channel of distribution. Over 90% of the crops in developing countries are still planted with farmers varieties and farm-saved seed (KPMG, 2006). As a result, large international seed companies concentrate on those countries with large commercial seed sectors and often focusing on high-value crops grown by larger farmers in more favorable areas, i.e. targeting those who are best able to pay for their seed. They tend to avoid self-pollinating crops - including many of the crops smallholder farmers grow and on which they depend for their food security - because these are the crops for which farmers save their own seeds, reducing opportunities for commercial seed production of these crops. Almekinders (2010). Seed is a key input for improving crop production. Generation and transfer of improved technologies are critical prerequisites for agricultural development. Inefficient seed supply and distribution system hampered use of improved seed were the major challenges which were observed through other studies. The underlying assumption is that by serving as one-stop-shops for agricultural technologies, services and advice, agro-dealers can contribute to increased awareness and help build demand for the inputs. Significant efforts have been invested in supporting agro-dealers as part of the new Green Revolution agenda. (AGRA, 2009). The Gates-Rockefeller supported Alliance for a Green Revolution in Africa (AGRA) has committed itself to training at least 10,000 well-functioning agro-dealers throughout Africa over the first fiveyear phase of its Agro-dealer Development Programme (ADP) (AGRA 2011). In Ethiopia, Since the 1990s, smallholder frames has demonstrated crop productivity growth through the adoption of improved technological package. For the sustainable long run maintenance of crop productivity growth, developing a responsive seed system that facilitates the adoption and flow of new crop technology is believed to be vital. In the current five year plan of Ethiopia, popularly known as the Growth and Transformation Plan, overhauling the national seed system is considered as one of the key interventions in the transformation of the agricultural sector to ensure the target of doubling agricultural production in 2015 (MoFED, 2002,2006). 1.2 Objectives The objective of the study was to assess agricultural farmers level of satisfaction on direct seed marketing in Sibu Sire Woreda. > RJCBS: Volume: 05, Number: 09, July-2016 Page 16

2 1.3 Research Methodology Target Population and Sample of the Study According to Sibu Sire Woreda Agriculture Office Report or SSWAOR, (2014/15), in Sibu Sire Woreda the total farmers were 14,241, from this total number, the active improved seed users farmers were So that from those the active improved seed users farmers 316 samples used by means of a descriptive survey to analyze the occurrences. Purposive sampling was used to select Sibu Sire Woreda from western Oromia improved seed users because the Woreda farmers had long duration in the use of improved seeds, as to compare with other Woredas in the western Oromia in eastern Wollega Zone. In Sibu Sire Woreda there are 14,241 farmers seed users in the production year SSWAOR(2014/15).Thus, the study was conducted using a descriptive survey which studies a population by taking samples to analyze occurrences. Therefore, the following formula was used for determining the sample size. n - The sample size N - The population size e - The acceptable sampling error * 95% confidence level and p= 0.5are assumed (Yamane Taro, 1967) Therefore, n= (0.05)2 =316 This 316 is the sample size comes from the active improved seed users farmers of 1500, in Sibu Sire Woreda. 1.4 Research Approach and Data Collection Techniques The study used both quantitative and qualitative approaches. The quantitative tools used to collect numerical information like improved seed varieties distributed in quintals, improved seed demanded, amount of improved seed supplied, amount improved seed distributed, and amount improved seed leftover etc. The qualitative tools employed to analysis customers satisfaction through collecting data about attitudes of end users, expectations, quality specifications, service delivery and the actual quality services offered for end users etc. In order to gather data relating to perception and expectation about quality of the service rendered by Agro-dealers, 316 questionnaires that were designed according to SERVQUAL method using, the self status questions developed based on self status quality dimension which is adopted from Parasuraman,(2009) the question consist of a number of items administered to respondents pilot test was conducted using 10% of the sample size to identify and illuminate potential problems associated with questioners. Subsequently five response categories Likert scale written in English(from strongly disagree up to strongly agree), then translated in to the local language. 1.5 Method of Data Analysis To address the objectives of the research and to analyze the data, both quantitative and qualitative methods were employed. The data collected through interview were analyzed qualitatively. The first objective of the study level customer satisfaction in Sibu Sire Woreda was analyzed by using simple linear regression method. The dependent variable is Agricultural farmers satisfaction and the independent variables are Customer expectation, Quality service specification, Agro -dealer s perception, actual services delivered. The data collected from farmers were entered into statistical software package SPSS (Version 20.0) and analyzed quantitatively using SERVQUAL Model and service gap were analyzed by descriptive statistics in which average & percentage were used and presented in tables. To indicate the relationship between the dependent (customer satisfaction) and independent variables (Tangibility, Reliability, Responsiveness, Assurance and Empathy), T-test paired were used to test the significant mean difference gap between farmer s expectation and perception of service quality dimensions. In this study, descriptive analysis is chosen because of its simplicity and clarity to draw inferences. The study evaluated the service gap (Service Quality) from the mean of expectations before receiving services subtracting the mean of perception after receiving service by farmers. > RJCBS: Volume: 05, Number: 09, July-2016 Page 17

3 2.Review of Literature Mittal & Kamakura (2001 )states that Customer satisfaction is key factor information of customer s desires for future purchase Furthermore; the satisfied customers will probably talk to others about their good experiences. This fact, especially in the Middle Eastern cultures, where the social life has been shaped in a way that social communication with other people enhances the society, is more important. Parasuraman (1985) in his paper specified that although satisfaction has been defined as the difference between expectation and performance, but there are differences between quality and satisfaction. For example, satisfaction is a decision made after experience while quality is not the same. On the other hand, in satisfaction literature, expectations for goods is would, while in service quality literature, expectations for goods is should have introduced another group of factors known as neutral factors. Liljander & Strandvik (1993) say that experience is not needed for evaluating service quality, and service can be evaluated on the basis of the knowledge about service provider, while satisfaction is an inner view, resulted from customer s own experience from the service. The research conducted by Sureshchandar et al. (2002) shows that, there is a two-way relation between satisfaction and service quality. M a t t h e w & C h r i s t i n e s t a t e s ( ) t h a t customer satisfaction is a customer s rational and emotional perceptions, which are based on service experiences. Xiang & James (2010) opines that in a service context, quality and value are proposed as antecedents of satisfaction; their effects on loyalty are mediated by satisfaction. 3. Some Challenges in the Seed Marketing System in Oromia Region Agriculture has always been and remains the basis in Ethiopia economy in general and that of Oromia region, in particular. In Oromia, agriculture accounts for about 65% of Gross Domestic Product (GDP). More than 89% of the populations of the region depend on this sector for household food security, livelihoods, and incomes. Agriculture also generates more than 90% of export earning and supplies about 70% of the region s raw material requirement for agro-based industries. Thus, the Government of Ethiopia s (GoE s) economic growth strategy, namely Agriculture Development Led Industrialization, places very high priority on accelerating agricultural growth and achieving food security (ADLI, 1991). Agriculture is also a main focus of the GoE s poverty reduction strategy, which includes the Sustainable Development and Poverty Reduction Program (SDPRP) approved in 2002, Food Security Strategy (FSS), in Plan for Accelerated and Sustained Development to end poverty (PASDEP) and, most recently, introduced the five years growth and transformation plan (MoFED 2002, 2006). Despite these continuing efforts made by GoE, agricultural production and productivity remains much below the country s requirement even though positive performance observed recently. The overall agricultural growth is still not encouraging and consequently failed to register the desired economic development that would enable its people pull out of poverty as desired. Low productivity is partly due to limited use of the improved varieties seed, low-level input use, limited irrigation facilities and suboptimal crop management practices (PASDEP, 2004). Seed shortage and the variable quality seed available on the markets are the major constraints to increased crop productivity in the Oromia region despite tremendous effort that has been made by different factors, the shortage of improved quality seed at farm level remains as one of the major factors that hindered the need for agricultural transformation in the regions. The annual use of improved varieties certified seed is at very low level, usually less than 4% of the total cultivated area (Oboard, 2008). The requirement of food grains and industrial raw materials for the ever-growing population is increasing from time to time. Therefore, attaining the domestic food and industrial raw material requirements has been the foremost social priority of the Ethiopian government and agricultural development has been given as high priority for rapid and sustainable economic growth and transformation strategy of the country. According to the Five Year Growth and Transformation > RJCBS: Volume: 05, Number: 09, July-2016 Page 18

4 Plan(GTP), the food grain production of 20011/12, Ethiopia was expected to double the total crop production by the end of the planning year of 2015 (MOED, 2010). 4. Assessment of farmers satisfaction with direct seed marketing-analysis Service quality is composed of tangibility, reliability, responsiveness, assurance, and empathy. The respondents were asked to rate each statement concerning their Expectations and perceptions on Direct Seed Marketing. As stated in the research methodology, Likert scale was used to measure the contribution of service quality dimensions for Expectations and perceptions of farmers on direct seed marketing. The researcher has explored farmers expectation and perception levels towards service quality of direct seed marketing in Sibu Sire Woreda. The degree of Expectations and perceptions of farmers on direct Seed Marketing is set from 1 to 5 (5 is from the highest expectation/satisfaction, whereas, 1 is the lowest expectation/satisfaction). The translation of level ranking is analyzed based on the following criteria of customers satisfaction designed by Best (1977: 174) The score between mean lowest satisfaction (Lowest) The score between mean low satisfaction (Low) The score between mean average satisfaction (Average or Medium) The score between mean good satisfaction (High) The score between mean very good satisfaction (Highest). In general, farmers expectation not exceeds the perceived level of service shown by the perception scores as it is indicated on the above Table 1. This resulted in a positive gap score (Perception Expectation). According to Parasuraman et al., (1988, p.30) it is however common for farmer s expectation to exceed the actual service perceived and this signifies that the farmers were satisfied with the direct seed marketig ` Statement Perception Score Expectation Score Gap Score Tangibility TA TA TA TA TA Overall mean score Reliability RL RL RL RL RL Over all mean score Responsiveness RN RN RN RN Over all mean score Assurance AS AS AS AS Over all mean score > RJCBS: Volume: 05, Number: 09, July-2016 Page 19

5 EMPATY EM EM EM EM Over all mean score Source: Compiled from Primary data Table-1: Gap Score of Expectation and perception Customer Satisfaction Concerning Tangibility Table 1 indicated that overall satisfaction of expectation towards tangibility is (2.32). Customer perception of tangibility dimension was ranked at the highest level (3.85). This implies that farmers are satisfied because their perceptions are higher than what they expect from direct seed marketing of Sibu Woreda. As it is shown in the table customers expectation of tangibility dimension of service quality is low but their perception towards tangibility is at highest level. And among the elements of tangibility TA2 i.e. The agricultural improved seed purchase must met quality standards has the highest value of expectation (2.7) so the agro-dealers must provide quality product. Customer Satisfaction Concerning Reliability Table 1 indicated that overall satisfaction of expectation towards reliability is (0.46). Farmer s perception of reliability dimension was ranked at the highest level (3.46). This implies that farmers are satisfied because their perceptions are higher than what they expect from direct seed marketing. As it is shown in the table customers expectation of reliability dimension of service quality is low but their perception towards reliability is at highest level. And among the reliability dimensions RL4 i.e. providing the services at the time they promise to do so is the most important dimension because farmers expectation score is 3.25 which (average) higher than other dimensions. Finally the gap score result is average i.e. (3.0) so reliability dimension of service quality affects perceptions of farmers on direct seed marketing. The responsiveness dimension involves willingness to help customers and provide prompt services. It is essential that staffs are willing and able to help farmers provide prompt service and meet their expectation.table 1 indicates that overall expectation towards responsiveness dimension was at the low level (2.47). And among the dimensions RN2 i.e., prompt service to Customers has highest ranking of expectation at 3.2, so the staffs should give prompt service. It is highly possible that customers are satisfied when they receive a quick response from the agro-dealers.and as the table also shows that overall satisfaction of perception towards responsiveness was at a high level (3.48). Generally, farmers expectation and perception towards responsiveness of the Sibu Sire Woreda agro dealers direct seed marketing falls under high level of farmer s satisfaction The assurance dimension refers to the knowledge and courtesy of employees and their ability to inspire trust and confidence including competence, courtesy, credibility and security. Table 1 shows that overall expectation towards assurance dimension is again at low level (2.35), with trustworthiness and product knowledge of the staff ranking most important (3.21). This implies that most farmers expect staff to make them feel safe when staying and has product knowledge. The table also indicates that perception of assurance dimension ranked at the average level (3.21), with which all assurance variables being the important factor on farmer s perception. Even if farmers expectation is low but their perception is on average level so, it s good the if the staffs have broad and deep knowledge, skills, capacity and experience to satisfy farmers specially AS3 i.e. Friendliness and courtesy of Agrodealers workers since it highest ranking of expectation at The empathy dimension represents the provision of caring and individualized attention to customers including access or approachability and ease of contact, effective communication, and understanding the customers. Table 1 shows that overall expectation concerning empathy dimension is the low level (2.54).The table also indicates the overall perception of the empathy dimension which is at the average level (3.31). Even though the mean score of expectation from effective communication is less than > RJCBS: Volume: 05, Number: 09, July-2016 Page 20

6 perception, the overall mean score of customers perception is greater than the overall of their expectation. Therefore, it is possible to say that customers are satisfied. Gap scores analysis: The gap score analysis is to enable us find out how farmers perceive service quality in direct seed marketing and try to identify what dimensions of service quality they are satisfied with. According to Parasuraman et al., (1985, p.48) the higher (more positive) the perception (P) minus expectation (E) score, the higher the perceived service quality and thereby leading to a higher level of farmer satisfaction. In this regard, the gap scores were calculated based on the difference between the farmers perceptions obtained and expectations of services by Agro-dealers was different. Which means perceptions is greater than expectation. In general, it was found that, farmers perceptions of service quality offered by farmers did not meet their expectations (all gaps scores dimensions are positive). Dimensions that reported larger mean gaps were tangibility (1.2538), reliability ( ), and No. Paired sample test Expectation and Perception 1 The Agrodealer must have sold Modern Agricultural equipment- 2 The agricultural improved seed you purchase must have met quality standards 3 Employees of the Agrodealers have provided quality products 4 Materials associated with the service must have well conserved 5 The Agrodealer must have located at Convenience Location mean Std. deviation Paired differences T df Sig(2- tailed Std. 95%cofidence error interval of the difference Lower upper > RJCBS: Volume: 05, Number: 09, July-2016 Page 21

7 from your farm. Empathy ( ) while smaller mean gaps), were responsiveness ( ) and assurance ( ) these values show that the perception of performance in the direct seed marketing more than the expected level of service quality. According to Parasuraman et al., (1988), overall service quality is measured by obtaining an average gap score of the SERVQUAL dimensions. In this regard, to evaluate overall service quality as perceived by Agro-dealers. Table 2: Test of farmer s satisfaction by using Tangibility Dimension Satisfaction Level of farmers by Agro Dealers in Sibu Sire Woreda Sources: Compiled from the primary data, 2015 A paired t-test was used to compare two population means where you have two samples in which observations in one sample can be paired with observations in the other sample. Expectation and Perception observations on the same subjects. A paired t-test model is applied to before and after situation, the expectation before taking service regarding the following dimension were asked tangibility, reliability, responsiveness, assurance and Empathy.After the farmer taking service( perception dimension)were asked regarding tangibility, reliability, responsiveness, assurance and Empathy. Table 2 Tangibility Dimension -test results from comparing the tangibility points means show statistically significant differences between the expectation and perception on tangible. In all dimension, The Agro-dealer must have sold Modern Agricultural equipment, the agricultural improved seed you purchase must have met quality standards, Employees of the Agro-dealers have provided quality products, Materials associated with the service must have well conserved, The Agro-dealer must have located at Convenience Location from your farm in the all above dimension indicate statistical significance expectation and Perception on the above listed dimension. Table 3: Test of farmer s satisfaction by using Reliability Dimension Expectation and Perception Paired Differences t df Sig. (2- Std. Std. 95% Confidence tailed) Deviation Error Interval of the Difference Lower Upper When employees of Agro-dealer promises, they must do so The Agro-dealer must have Sincere interest in solving customers problems The Agro-dealer will do the job right the first time and will continue in doing it without error The Agro-dealer must Provide services at the time they promise to do so The Agro-dealer might have Insists on sale false seed.000 Sources: Compiled from the primary data, 2015 As it is indicated on the above table 3 on the reliability dimension: When employees of Agro-dealer promises, they must do so, The Agro-dealer must have sincere interest in solving customers problems, The Agro-dealer will do the job right the first time and will continue in doing it without error, and The Agro-dealer might have Insists on sale false seed For four variable Since the P-value is less than 0.05.Therefore,there were statistical significance difference between expectation and Perception on the > RJCBS: Volume: 05, Number: 09, July-2016 Page 22

8 above listed dimensions. Only on one dimension, on the agro-dealer must provide services at the time they promise to do so there is no statistical significance between expectation and perception Since the P-value is greater than 0.05 which was Responsiveness Dimension result show that Sales representative of Agro-dealer should tell customers exactly when services will be performed, The Agro-dealers must give prompt service to Customers, The Agro-dealer never too busy to respond to customers requests on the time. For the listed above variable there were statically Significant difference between farmers expectation and actual service provided by agro-dealers since have the p-value is greater than 0.05.while two dimension, the Agro-dealer must have willingness to help customers, and The Agro-dealer never too busy to respond to customers requests on the time there were statically there is no significant different between expectation and perception two responsiveness dimension. Since the P-value is less than 0.05 as it shown on the table Table 4: Test of farmer s satisfaction by using Responsiveness Dimension Responsiveness Dimension Std. Deviation Paired Differences T df Sig. (2- Std. 95% Confidence tailed) Error Interval of the Difference Lower Upper Sales representative of Agro-dealer should tell customers exactly when services will be performed. The Agro-dealers must give prompt service to Customers The Agro-dealer must have willingness to help customers The Agro-dealer never too busy to respond to customers requests on the time Sources: Compiled from the primary data, 2015 Table-5: Test of farmers satisfaction by using Assurance Dimension Assurance Dimension Behaviors of Agrodealer must install confidence in you Customers feel safe in their transactions with the Agro-dealer Friendliness and courtesy of workers of Agro-dealers Std. Deviation Paired Differences T df Sig. (2- tailed) Std. 95% Confidence Error Interval of the Difference Lower Upper > RJCBS: Volume: 05, Number: 09, July-2016 Page 23

9 The Agro-dealer should have knowledge to answer customers questions Sources: Compiled from the primary data, 2015 As it is indicated on the table 5 Four thre Assurance Dimension Behaviors of Agro-dealer must install confidence in you, Customers feel safe in their transactions with the Agro-dealer, The Agro-dealer should have knowledge to answer customers questions There were statically difference between farmers expectation before getting service and actual service performance. Since their P-value is less than 0.05 only one variable, Friendliness and courtesy of workers of Agro-dealers there were no statically difference between expectation and actual services result since the p-value is greater than Test of farmers satisfaction by using Empathy Dimension T-test result reveals that in all dimension of empathy The Agro-dealer are giving Individual attention to the customers, The Agro-dealer provide Convenient operating hours to customers, Agro-dealers give customers personal attention, The Agro-dealer must understand the specific needs of customers T- test results from comparing the empathy points means show statistically significant differences between the expectation and perception on scales. On all the above listed variables of empathy indicate there were no statistical significance difference between expectation and perception on scales. For all variables since the p-value is greater than Table 6: Test of farmer s satisfaction by using Empathy Dimension Sources: Compiled from the primary data, 2015 Empathy Dimension Paired Differences t df Sig. (2- Std. Deviation 95% Confidence Interval of the tailed) Std. Error Difference Lower Upper The Agro-dealer are giving Individual attention to the customers The Agro-dealer provide Convenient operating hours to customers Agro-dealers give customers personal attention The Agro-dealer must understand the specific needs of customers Overall farmers Expectations and perceptions on direct seed marketing Table 7 shows that overall satisfaction of expectation on the five dimensions is low (2.02). The result of customers expectation shows that empathy dimension is at the high level (2.54) followed by responsiveness (2.47), assurance (2.35), tangibility (2.32), and reliability (0.46) in descending orders. Most farmers expect the employee to be effective empathy and responsiveness and assurance respectively- since farmers expectation is high regarding these dimensions. The table also indicates that overall satisfaction of perception on the five dimensions is at average level (3.348). And most customers perceived tangibility the most important dimension at (3.58), followed by reliability (3.46), responsiveness (3.4), empathy (3.2), and assurance (3.1) in the descending order. > RJCBS: Volume: 05, Number: 09, July-2016 Page 24

10 Table 7 Overall means score of Expectations and perceptions of farmers on direct Seed marketing Source: Researcher s survey finding (2015) 5. Conclusion The purposes of this study are to find out how farmers perceive service quality and to see how the SERVQUAL model is applicable in the context of Agro-dealer service by using its dimensions to measure service quality. In conclusion, knowing how farmers perceive service quality and being able to measure service quality can benefit the stakeholders. Measuring service quality can help management provide reliable data that can be used to monitor and maintain improved service quality. Using the SERVQUAL model to assess service quality enables management to better understand the various dimensions and how they affect service quality and farmers satisfaction. This will help them to identify those that have strengths and weaknesses and thereby make necessary improvements. However, in this study, the researcher have been trying to measure service quality and farmers satisfaction by using the `SERVQUAL model and find out if it is an effective tool in assessing farmers perceptions of service quality with Agro-dealer service.from the study the findings show that the SERVQUAL model is a good tool to measure service quality in agro-dealer service because all dimensions (tangibles, responsiveness, assurance and empathy agro-dealer service) prove it s reliable for measurement. Therefore this implies that different methods and models could be used to measure service quality and farmers satisfaction. This dimension is very important in measuring service quality in agro-dealer services according to Magi and Julander (2009). Findings also show that farmers perceived more than what they expect in these Agro-dealer services in direct marketing since there were positive gap score for all service quality dimensions (tangibles, responsiveness, assurance and empathy agro-dealer service) and hence they are satisfied and therefore they must strive tries to improve all the dimensions of service quality in order to bring highest perceived service quality and better customer satisfaction. 6.Reference AGRA (2011) PASS Programme for Africa's Seed Systems: Supporting the Seed Value Chain in Africa, PASS Programme Brochure, Nairobi: Alliance for a Green Revolution in Africa. Bowersox, Closs and Cooper (2002). Key Factors in Guest Satisfaction, Cornell Hotel and Restaurant Administration Quarterly, 28, Cronin, J. J. and Taylor, S. A. (1992), Measuring Service Quality: A Re-examination and Extension, Journal of Marketing, Vol. 56, pp Ching-Chow Yang (2003).Service-oriented Industrial Management, Yang-Chih Book, Taipei. > RJCBS: Volume: 05, Number: 09, July-2016 Page 25

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