THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION AND LOYALTY IN CREDIT DELIVERY SERVICE (THE CASE OF NIB INTERNATIONAL BANK S.C.)

Abstract

Customer satisfaction is a significant subject for most bankers as well as customer service is the primary end of any bank. A customer always wants something and expects that the bank should come up with the level to fulfill those needs. Considering this situation, the study was intended to assess the impact of service quality and customer satisfaction in the credit service delivery servicer of Nib International Bank S.C Addis Ababa Branches. For this purpose, the study was used descriptive approach focusing on both primary and secondary data. Besides, the study targeted 337 credit service customers (borrowers) of Nib International Bank S.C Addis Ababa Branches in order to collect primary data. The respondents were selected by using simple sampling random sampling technique by assuming that only those customers were contacted to take part in the study those experienced at six month and above with the Bank’s credit services. The primary data for the study was collected through structured questionnaire and were taken from SERVQUAL and modified to fit in the context of bank credit services. Moreover, for the analysis primary data, descriptive statistics were applied to identify the level of Credit service customer (borrower) customers’ satisfaction with the service quality of Nib International Bank S.C Addis Ababa branches. Pearsons’ Correlation analysis is carried out to examine the impact of individual service quality dimensions over customer satisfaction, in line with stated hypotheses. Multiple regression analysis is also done to carry out the relationship between a single dependent (criterion) variable and several independent (predictor) variables. The findings of the study shows that up on the multiple regression produced among the five SERQUAL dimensions tangibility has no any relationship with customer satisfaction that p value is grater than 0.05. Based on the findings of the study valid recommendations forwarded; the Bank should make conscious efforts to be reliable and especial emphasis should be on the tangibility of the Bank’s service such as uses of modern equipments, physical facilities and to develop loan delivery time procedure manual and introduce different types of products to retain its customers.