High level of service quality is often what customers expect and value in purchasing services from service organizations such as education institutions. It is vital to ensure that satisfactory or even superior service is delivered at the first time to delight customers. Measuring and managing service quality has received increased attention of researchers and practitioners in various disciplines. Service providers must believe that customer as core concept of their business; customer satisfaction is what guarantees the future of education institutions and it is achievable by taking up their services and students’ needs. In other words, service quality is typically defined in terms of consumer satisfaction. The purpose of this study was to measure the service quality and its subsequent effect on customer satisfaction at Oromia State University using a model that describes various dimensions of service quality. To this end, the researcher has studied the service quality of the University using SERVQUAL model. Proportional stratified sampling technique was used in the study to take a sample from the population. A total sample of 343 respondents who were senior students at the University was taken as a respondent. A questionnaire was designed based on the model in order to examine all the five factors of service quality in the model for education institutions. It was inclusively concluded that students of Oromia State University were not satisfied with the perceived services of three dimensions of the model and it warns the University to focus on students’ expectations. Reliability, assurance, responsiveness, empathy and tangibles were the five features of the model and in assurance and empathy, the students were satisfied, but in the remaining three dimensions, students feel dissatisfied. Managers should train employees, improve teaching aid facilities and coordinate all people, departments and organizations involved with the services. Finally, managers at the University should measure students’ satisfaction and service quality seasonally to keep the services corresponded with students’ opinions.
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