ASSESSMENT OF SERVICE QUALITY IN COMMERCIAL BANK OF ETHIOPIA: A STUDY CARRIED OUT IN WEST DISTRICT

Abstract

Banks play a very important role in the economic life of a nation. Although the banking industry is growing and offering various types of financial services to the public, their mere existence does not do any good unless they deliver a quality service. The purpose of this study was to assess the quality of service offered by commercial bank of Ethiopia on west district branches using the five dimension SERVQUAL model i.e. Tangibility, Reliability, Responsiveness, Assurance and Empathy. In this research descriptive study method was used to investigate the research objectives and questions. Both primary and secondary sources of data were employed; Simple random sampling method was used to obtain the respondents from commercial bank of Ethiopia west district branches. In order to achieve the aim questionnaire survey were used to collect the data. The survey questions were developed based on five likert scale and customers were asked to rate the service quality based on the given parameters. A total of 398 questionnaires were distributed to the 3 selected west district branches (Torhayloch, Ayertena & Bethel). After data collection the data received from respondents was set in to the SPSS. Descriptive statistics was employed to analyze the mean and standard deviation for each SERVQUAL dimensions to assess the service quality. From the data collected & result of the analysis, the study concluded that Assurance dimension shows (μ:4.3) the highest service quality level. But responsiveness dimension reveals (μ:3.12) the least service quality level. Therefore, the bank should realize a competent advantage by emphasizing assurance on the quality of service along others dimensions and the bank should improve the responsiveness dimension by giving emphasis on employee training.