ASSESSMENT OF SERVICE QUALITY IN BANKING INDUSTRY THE CASE OF DASHEN BANK

Abstract

The main objective of this study is to assess the service quality of Dashen Bank in Addis Ababa. Service quality has been defined as a degree of discrepancy between customers’ service expectation and perception. The study which was carried out used judgmental sampling techniques in selecting a total of 4 branches and 311 questionnaires were distributed from this 70% for customers and 30% for employees of bank. A quantitative research approach was implemented. Data were collected using questionnaire developed both in Amharic and English in order to make easy to understand and respond. Service quality has been measured through using five dimensions (SERVEQUAL MODEL) tangibility, responsiveness, reliability, assurance and empathy for customers’ response on service quality. In addition to customers the questionnaire also designed for employees of the bank by using the categories training, satisfaction, technology, comments, leadership, and internal and external factors affecting service quality. Data were analyzed by using STATA 11.0 VERSION for gap, correlations and descriptive Statistics. The findings confirm that the selected branches(Tana Mesalemia, Piassa and Gulelle) have a highest gap on customer expectation and perception on service quality dimension particularly Tana has the highest gap on responsiveness, Mesalemia score the highest service gap on assurance(employees willingness and happiness, bank diversified service, prompt service and quick response to customers requests.), Piassa also has the highest service quality gap on reliability and as the study outcome reflects Gulelle has the highest service quality gap on responsiveness(employees willingness and happiness, diversified service, prompt service quick response to customers requests).so, in order to address those problems, providing quality service to customers in all dimensions by understanding the customers expectation and satisfying them were the key for future business profitability and continuous growth.