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Abstract
Customer satisfaction was a strategic issue in the past two decades. This study aims to examine the effect of perceived quality on customer satisfaction using Gronroos’ service quality model. A self-administrated questionnaire was used to collect data from 267 respondents. A two-stage cluster-sampling plan was used to collect samples. Structural equation modeling (SEM) and one sample t tests were employed to analyze data. Results indicate that functional quality has a positive and significant impact on image and perceived quality. Further, image has a positive and significant impact on perceived quality and consequently, perceived quality has a positive and significant impact on customer satisfaction. However, the relationships among technical quality, image, and perceived quality are not significant. Additionally, functional and technical qualities have not significant impact on customer satisfaction. The article is an empirical test of Gronroos’ model development, suitable for explaining customer satisfaction, and provides conceptual clarity, theoretical parsimony and practical implications of perceived quality impact on satisfaction.