ASSESSMENT OF CUSTOMERS’ PERCEPTION OF BANK SERVICES AND THEIR LOYALTY THE CASE OF SELECTED COMMERCIAL BANK OF ETHIOPIA BRANCHES OF EASTERN ADDIS ABABA DISTRICT

Abstract

The general objective of this study is to assess customers’ perception of bank service and their loyalty in the selected Commercial Bank of Ethiopia branches of Eastern Addis Ababa district. The researcher used primary data source. Both structured and unstructured questionnaires were used to collect data from a sample of 400 respondents under convenience sampling technique. Data was processed and analyzed by tools of table, graphs and percentages by using SPSS VS 16.0. Customers’ were assessed under the five dimensions of SERVQUAL method. The gap among tangibility , reliability, responsiveness, assurance and empathy perception were insignificant despite all dimensions were having a perception mean value less than an average of 4.0. Almost all of the respondents have replied that they likely will continue as CBE customers, indicating their loyalty which is customer’s intention or tendency to repurchase from the same firm. But very few of them said they will unlikely continues as CBE customers. This may be resulted from the different problems that CBE has. The performance of service quality by the measuring of the perception indicated the seriousness of which the bank attached to its all service delivery. Comparison between the customer responses and service delivery revealed the need for CBE employees and management should work towards enhancing customer relationship management by giving better service. It can be concluded from the analysis that customers were not satisfied with service delivery of CBE