ASSESSEMENT OF SERVICE QUALITY IN THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

Service quality mean a collection effect service performance which determine the degree of satisfaction of user service The aim of enhanced service quality is to increase customer satisfaction and retention of its customers. This descriptive study seek to asses customer perception of service quality. The SERVQUAL model was used to determine the customer perception of service quality. This model examines five dimensions of service quality; Reliability, Assurance, Tangibles, Empathy, and Responsiveness Parasuraman et al. (1985, 1988). The researcher used both qualitative and quantitative research design, where much emphasis has been given for the latter. Among the various quantitative methods, the researcher used descriptive study, where emphasis is given on studying a situation or a problem in order to asses service quality gap.7(seven) representative branches was selected out of the total population based on convenient sampling technique and customer of the Bank are selected based on probability simple random sampling technique. 284 customers were selected based on statistical formula developed Cochran (1963:75). And also the data collection instruments were adopted from some previous study Parasuraman et al. (1991) which consists of 22(Twenty two) items. By using those models and method the researcher obtain some findings. The findings revealed that there is a considerable gap between the actual service delivery and the customers’ expectation. Among the five dimensions of service quality; Reliability and Responsiveness shows a higher negative gap score showing that customers do not perceive the bank is unable to provide consistent service. Farther more, the Empathy dimension has a lower negative gap at CBE. Based on the results the researcher suggests that the banks need to train their staff on proper customers’ service techniques. While those five dimensions are major measurement tools, Reliability and Responsiveness is the important service quality gap indicator at the banks. The study also indicates that the banks need to become more responsive and assuring to their customers as well as increase their accessibility.