THE EFFECT OF ELECTRONIC BANKING SERVICE QUALITY ON CUSTOMER SATISFACTION: IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

One of the biggest contemporary challenges of management in service industries is providing the right quality to maintaining customer satisfaction and getting positive word of mouth from the consumers. Service quality and customer satisfaction has increasingly been identified as key factors for influencing Electronic banking customers for their being loyal to the bank. This study seeks to examine the effect of electronic banking service quality on customer satisfaction among saving account customers in six selected branches of west Addis district (Habtegiorgis, Geja sefer, Teklehaymanot, pawlos, sumaletera and Anwar mesgid) of the CBE. A survey research was conducted that primarily used quantitative data. A total of 190 bank customers from all selected branches responded to the questionnaire items that measured the research variables. A descriptive ANOVA and correlation analysis was carried out and revealed that service quality dimensions are significant predictors of customer satisfaction. More over logistic regression analysis carried out and the result; Speedy and Quick service, adequate Amount of cash limit to be withdrawn in a day, Employees readiness to response quickly, easiness to regain the captured, expired and lost cards, simplicity and clear language, Appearance of the ATM facility and its Attractiveness, availability of statement printing are identified as a determining factors of Customer satisfaction. The effects of demographic and personal banking detail indicators of service quality perception, and customer satisfaction are also examined. The result revealed that saving account customers’ perception of service quality influenced by differences in age, level of education, occupation and average re-patronage per month. Age and sex were the demographic variables influencing customers’ satisfaction. To overcome the methodological limitation of this study, the branches shall use an in depth full study with a longitudinal design and relatively increased sample size. The result of this study implies management of the six branches shall design appropriate marketing strategies to achieve an increased service quality via boosting customer satisfaction.