SERVQUAL AND SERVPERF MODEL TO ASSESS SERVICE QUALITY AND CUSTOMER SATISFACTION: THE CASE OF BANK OF ABYSSINIA SHARE COMPANY

Abstract

The purpose of this study was to investigate customers’ expectations and perceptions of banking service quality and attempts to measure and compare service quality and customer satisfaction in Bank of Abyssinian S.C. (BOA). The significance of the study is to give sufficient information on the impact of a number of relevant concepts that influence customers’ satisfaction. In addition, this study will help BOA to improve its service quality for better customer satisfaction. The research used a descriptive form of research design and quantitative approach to collect data. The total population and sample selected were 554,333 and 400 of BOA customers respectively. The research used questionnaire data collection procedure; and the questionnaire developed for this study was based on a modified SERVQUAL and SERVPERF models. The software used to analyze and interpret the data was Statistical Package for Social Science (SPSS). The findings revealed that the level of service quality had negative discrepancy between BOA customers’ expectations and perceptions but the overall customer satisfaction was at mean ≈2 (high level). The study results show that service quality is at the root of customer satisfaction. Finally, this research concludes that Assurance is the dominant service quality dimension which affects customer satisfaction and recommends BOA should get experience sharing with best customer service performing companies. SERVQUAL and SERVPERF are suitable instruments for measuring service quality in the retail banking sector in Ethiopia.