EFFECT OF SERVICE QUALITY ON CUSTOMER SATISFACTION THE CASE OF BERHANINTERNATIONAL BANK S.C

Abstract

This research aims to measure service quality at Berhan International Bank SC. It also examined the influence of quality service towards customer satisfaction the SERVQUAL model was used to determine customers’ perception of service quality at BIB.The researcher used both descriptive and explanatory because the researcher was interested in describing the existing situation and explanatory used to understand the relationship of service quality and customer satisfaction. The researcher collected sample data from 10 branches of Berhan International bank selected based on the customers with highest number BIB called this branches section green. Based on the number of customers the 224 questionnaires were distributed to all green branches then after a short interview was made with customers’ service quality dimensions showed a negative disconfirmation result indicating that the service quality at BIB is below the customers’ expectation. Moreover the study identifiedpositive and strong relation between the independent variables, the five service quality dimensions indicating that customers of BIB are satisfied by the its service. The negative disconfirmation for tangibles is the highest score that calls for the BIB managements’ immediate action since the improvement in this dimension significantly changes the service quality and customers satisfaction as well. The researcher recommended that the bank must invest on the human resources part to enhance the skill and quality of the service providing staff. By doing so the bank could have sustained competitive advantages. Secondly, it also invests in the physical evidence of the service, the tangible dimension and must have its own building.