ASSESSMENT OF SERVICE QUALITY AND CUSTOMER SATISFACTION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA, ADDIS ABABA BRANCH

Abstract

The purpose of this research was to assess service quality and customer satisfaction in Commercial Bank of Ethiopia, Addis Ababa branch so as to provide a solution to the problems found during the study. In doing so, primary data was collected from randomly selected 400 customers of the bank via questionnaire. The data collected was presented, analyzed and interpreted using descriptive statistical tools.The research had revealed that the quality of services in the bank is found to be good in the SERVQUAL model service quality dimensions of responsiveness, assurance and empathy. However, the service lacks tangibility (modern office equipment, attractive, comfortable and visually appealing service Center) and reliability where by customers can depend on it at all times. Customers’ satisfaction with the overall quality of services is found to be more than the average score which can satisfy up to 77 % of service recipients. Hence, most of the respondents feel that the quality service they are getting from the bank is satisfactory and because of this majority of them were happy to continue working with the bank than shifting to/ searching for other banks having better quality of services. The research result shows that there is a positive and strong correlation between service quality and customer satisfaction where by the satisfaction level of customer’ will rise as the quality of services is improved