THE EFFECT OF SERVICE QUALITY ON CUSTOMER’S SATISFACTION IN THE CASE OF CBE NORTH ADDIS DISTRICT CITY BRANCHES

Abstract

This research was conducted to explore the effect of service quality on customer satisfaction of CBE North Addis district city branches. Using service quality dimensions adapted from parasuraman et al; that are tangibles, reliability, responsiveness, empathy and assurance. In this context, the main objective of this study was to assess the customer satisfaction on the service quality of CBE. A total of 384 questionnaires were administered to customers of CBE in ten branches and 350 questionnaires were returned and usable for a comprehensive empirical analysis. Both descriptive and inferential statistics have been used to find mean score, to test hypothesis, to investigate research problem, objective and questions. From the correlation analysis it was found that all the five service quality dimensions are positively correlated with overall customer’s satisfaction. From the regression analysis assurance and empathy found to be the most important dimension in affecting customer’s satisfaction with the highest beta value. However, the rest dimensions that are tangibles, reliability and responsiveness have positive association with overall service quality. In addition to this the result of overall customers satisfaction with the service quality analysis is above average i.e. the majority of the respondent feel that CBE`S service quality is satisfactory