ASSESEMENT OF SERVICE QUALITY DIMENSION AND IT’S IMPACT ON CUSTOMER SATISFACTION IN SELECTED ETHIOPIAN PRIVATE BANKS

Abstract

This study was designed to assess the dimension of service quality and its effect on customer satisfaction taking a case to Ethiopian Private Banks which gives special attention to newly opened banks.Both descriptive and explanatory research design were employed by using quantitative research approach to assess the service quality dimensions and their impacts on customer satisfaction. The researcher used questionnaire method to gather the primary data from the customers’ of the two main branches of the selected private banks. The independent variable that service quality of the banks is measured by using the five service quality dimensions including tangibility, reliability, responsibility, assurance and empathy and while customer satisfaction is considered for dependent variable. the regression output also briefly show that there was a statistically weighty link between service quality dimensions and customer satisfaction which is more sustained by R2 result explaining that the dependent variable is explained more than 80% by the five service quality dimensions. Assurance dimension takes the highest fraction in influencing customer satisfaction followed by reliability, tangibility, responsiveness and empathy. As customer expectations are changing over time, bank managers are advised to measure their customer expectation against the actual performance regularly and handle complaints timely and effectively.