ASSESSMENT ON CUSTOMER PERCEPTION OF INTERNET BANKING SERVICE QUALITY: THE CASE OF COMMERCIAL BANK OF ETHIOPIA (Selected Branches in Addis Ababa)

Abstract

Now a days, Banks are enforced to develop alternative service channels due to technological changes to fulfill the customer desire, to gain competitive advantage, to reduce their costs, to maximize the profitability, to enhance the market share, to achieve the customer loyalty and to improve their financial service through innovation products. Commercial bank of Ethiopia has introduced internet banking service and other innovative products in order to get the above listed benefits. However from the total 11.5 million account holders, only 8,759 account holders are using the service. So it is necessary to measure the quality performance of web service using different techniques such as E-SERVQUAL model developed by Zeithaml (2000). The study used this technique to measure the quality of internet banking service and to provide an insight of customer perception towards the internet banking service quality. The purpose of this study is to assess the quality of internet banking service and to identify the gap in order to maximize the usage of the service and satisfy the customers and attract new customers. In this research, descriptive research method was used to investigate research objectives and questions and both primary and secondary sources of data were used. The researcher applied purposive sampling technique to collect the data. A total of 366 questionnaires were distributed to the internet banking users of the 23 grade 4 branches in A.A. The data were analyzed using descriptive statistics and qualitative data analysis. From the data collected & results of the analysis, the study concluded that privacy dimension shows the highest positive customer perception. But responsiveness dimension reveals the least customer perception result. Therefore, the bank should realize a competent advantage by emphasizing privacy on the quality of the internet banking service along others dimensions and the bank should improve the responsiveness by giving emphasis on employee training.