THE IMPACT OF SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION IN COMMERCIAL BANK OF ETHIOPIA FOREIGN TRANSFER & NR/NT ACCOUNTS BRANCH (CBE FTNR/NT)

Abstract

This research examined the impact of service quality dimensions on customer satisfaction in CBE FTNR/NT Accounts branch by applying SERVEQUAL model comprising five dimensions: Tangibility, reliability, responsiveness, empathy and assurance. To achieve the objectives of this study, data was collected through self-administered questionnaire from a sample of 358 CBE FTNR/NT Accounts branch customers. These respondents were selected using convenient sampling technique. The data collected from the questionnaire were analyzed using statistical tools such as mean, standard deviation, Pearson correlation, and multiple regression analysis. The results of this study indicate that responsiveness, reliability and assurance have positive and significant impact on customer satisfaction with responsiveness having the highest impact. However, tangibility has negative and significant impact on customer satisfaction and empathy has insignificant impact on customer satisfaction. The finding of this study also indicates that customers were most satisfied with Assurance dimension as compared to the other dimensions. On the contrary, customers were less satisfied with tangibility dimensions of service quality. Furthermore, the service quality dimensions explain 54.5% of the variations in customer satisfaction in CBE FTNR/NT Accounts branch. Therefore, the bank should improve its responsiveness to increase customer satisfaction. Furthermore, reliability dimension should also be improved by the bank.