ASSESSMENT OF SERVICE QUALITY AND CUSTOMER SATISFACTION CASE OF WEGAGEN BANK S.C

Abstract

Service quality and customer satisfaction are very important concepts that companies must understand in order to remain competitive in business and hence grow. It is very important for companies to know how to measure these constructs from the consumers’ perspective in order to better understand their needs and hence satisfy them. Service quality is considered very important because it leads to higher customer satisfaction, profitability, reduced cost, customer loyalty and retention. To this end the study aimed to assess the service quality and customer satisfaction of Wegagen bank. In addition to the open ended questions, a self-administered questionnaire was developed based on a SERVQUAL model that identified the influence of five dimensions (i.e. tangibility, responsibility, reliability, assurance and empathy). Since the objective of the study is to assess the quality service and customer satisfaction of Wegagen Bank SC, to conduct the study the researcher used a descriptive type of research design which helps to describe the characteristics service quality dimensions and samples of 260 customers are selected from thirteen branches of the bank that are found in Addis Ababa by using convenient sampling technique. For the purpose of analyzing the data SPSS version 20 is used. And the results revealed that the overall service quality perceived by consumers was not satisfactory meaning expectations exceeded perceptions and all the dimensions showed higher expectations than perceptions of services. The study also finds that reliability dimension is a very important dimension to the customer of the bank thus the bank need to focus on it.This study suggests that SERVQUAL is a most widely used instrument for measuring service quality; hence the management of Wegagen bank S.C should consider this instrument as a tool to assess and help improve their service quality and customer satisfaction. In addition to that the bank should give special attention to the attribute of reliability and tangible dimensions since the customers are focused on these two dimensions.