THE EFFECT OF SERVICE QUALITY ON BRAND EQUITY: THE CASE OF ABAY BANK S.C

Abstract

Brand equity is one of the crucial components that enable banks to get superior advantage over their competitors. This study is intended to investigate the effect of service quality on customer based brand equity. So, the objective of this research is: to analyze the effect of SERVQUAL on customer based brand equity, to compare and evaluate each SERVQUAL dimensions in relation to brand equity dimensions, to analyze the level of performance of ABAY BANK S.C regarding proper awareness and implementation of SERVQUAL dimensions, and to evaluate and review the position of customers associated with ABAY BANK brand equity. The sample respondents were customers of ABAY BANK S.C in selected branches found in Addis Ababa. In connection to this, structured questionnaire distributed to 384 samples but analysis was made based on the data collected from 331 respondents. And also different diagnostic test were applied to know whether the model is valid or not, having the model is valid the binary analysis and hypothesis testing is performed by SPSS software. The finding of this research clearly states that Service quality is considered as a significant instrument for a firm’s great effort in order to differentiate itself from its competitors and effective implementation of those five dimensions of service quality have a significant effect on customer based brand equity. Service quality is vital to the development and infuses strong and dominant brands because it enhances perceived superiority of the brands or customer based brand equity on side of existing and potential customers and helps to distinguish brands from other similar service providers in competitive markets.