ASSESSMENT OF THE SERVICE QUALITY DIMENSIONS AFFECTING CUSTOMER SATISFACTION: A CASE STUDY OF AWASH INTERNATIONAL BANK S.C

Abstract

The purpose of this paper was assessing the service quality affecting customers’ satisfaction in Awash International Bank. Accordingly, descriptive survey design was used to conduct the study using SERVPERF model of Cronin and Taylor’s (1992). By using convenience sampling 400 participants were included in the study. Accordingly; 400 questionnaires were distributed for study participants. The quantitative data gathered through questionnaire was analyzed and interpreted using appropriate statistical tools like percentage, mean, and regression analysis. The findings of data analysis indicated that among the five service dimensions: Reliability, Empathy and Tangibility were with higher mean value than other dimensions. This indicates that the level of quality of service delivered by AIB for its customers were better in the dimensions of Reliability, Tangibility and Empathy in relation to other dimensions. Hence; other dimensions Like Assurance and responsiveness needs some improvement. Moreover, the overall predictive powers of the three service dimensions were higher than the other two dimensions. Since reliability has 3.3 beta value to predict customers satisfaction. Similarly, Empathy has 3.291beta value to predict on customers satisfaction and tangibility has 3.189 beta values to predict on customers satisfaction. The conclusion of the study indicated that the dimensions; Reliability, Tangibility and Empathy have higher mean value which indicates better satisfaction and dominantly affect customers satisfaction in Awash International Bank Whereas, some improvement is needed for Responsiveness and assurance dimensions. Based on the findings and conclusions of the study; the following recommendations are forwarded for concerned bodies; it was found that among all service dimensions Responsiveness and assurance needs some improvement. Therefore, Awash International Bank should try to improve Responsiveness and assurance dimensions by improving the rate of the service by responding promptly to customer service requests on time with minimal waiting hour. Similarly, the bank has to improve assurance dimension which relates to the capability of the service provider to deliver the output specifically in terms of the knowledge, politeness and trustworthiness of the employees to customers’ of the Bank.