THE PERCEIVED SERVICE QUALITY AND CUSTOMER SATISFACTION AT NIB INTERNATIONAL BANK

Abstract

The purpose of this research was to investigate the perceived service quality and customer satisfaction at Nib International Bank S.C. (NIB). There is a widely held belief that service quality is a key driver for customer satisfaction. Many Scholars also agreed that there is a positive relationship between product and service quality and customer satisfaction. Today the focus has been on customer perceived quality, especially when dealing with service operations. We have developed a conceptual frame work in cognizant of these and structured questionnaires were designed using the five Liker scale. These questionnaires were distributed and data for analysis were collected from 40 customers and 60 employees of NIB from 20 representative bank branches operating in Addis Ababa. These data were sorted and registered in SPSS version 20 statistical software to analyzing the data. The results of the study indicates that customer satisfaction is not meet almost in all quality customer service dimensions like tangibility, reliability, responsiveness, assurance, empathy and other service attributes. Therefore; it is difficult to maintain highly satisfied loyal customers which assure pereformance. Customer satisfaction has found to be an important mediator between perceived service qualities. It is very important that the bank must design and implement a quality customer service recovery program. The program is critical to the bank, because correctly addressing and solving a customer’s problems in service quality can lead to higher customer satisfaction. This can be achieved through satisfied and committed management and employees in addition to other quality customer service factors as they are critical to business success. A clear understanding from this and the postulated relationships among the studied variables might encourage the bank to figure out appropriate course of action in quality customer service to satisfy high needs of customers