SERVICE QUALITY AND CUSTOMER SATISFACTION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

This paper is designed to find out the impact of quality service on overall customer satisfaction in Commercial bank of Ethiopia. It described the relationship between service quality dimensions and customer satisfaction in selected grade four branches of Commercial Banks of Ethiopia, and identifies the most important dimension of service quality for their customers. Total samples of 400 respondents who have utilized service on commercial bank of Ethiopian were taken as a respondent. For the purpose of the study data was collected through field survey from customers and employees through questionnaire. Structured questionnaire developed based on SERVIQUAL instrument. Convenience sampling technique will used to select respondents from selected grade four branches of CBE. It was show the impacts of delivering quality service in the customer satisfaction in the CBE. The selected branches are not in providing the level of service quality. This study will make clear that quality service has impact on customer satisfaction or customer quality service perception. Generally, tangible, assurance, responsiveness, reliability and empathy are five features of the model and empathy is positively and strongly correlated with customer satisfaction reliability, assurance and Tangibility are positively and moderately correlated with customer satisfaction. According to this finding, responsiveness is positively and weakly correlated with overall customer satisfaction towards commercial Banks of Ethiopia. This means that the bank willingness to help customers and provide prompt services is low. Managers should train employees, improve visually attractive facilities and coordinate all people, departments and organizations involved with the services. Generally; this study described the relationship between service quality dimensions and customer satisfaction and identifies the most important dimension of service quality for CBE policy makers. Also, it shows the gaps between customer‘s expectation and perception on the quality of service delivery system in the bank.