Assessment of Online Banking Service Quality on Customer Satisfaction:In the case of Awash Bank East Addis Ababa Regional branches

Abstract

The aim of the study is to investigate online banking service quality on customer satisfaction in the case of Awash Bank east Addis Ababa region. The study applied explanatory research design to identify and evaluate the relationship online banking service and customers’ satisfaction.Quantitative research approaches were used to collect data through the utilization of a questionnaire. A total of 310 bank customer respondents were participant in the study. Primary data were used to find out the research output. To generate the output of the study results the statistical software version 20.0 was used and analyzed and interpreted accordingly. The finding of the study revealed that the overall customer satisfaction levels of online service are found lower than level of customers’ expectation (mean=2.08, SD= 0.59). Specifically, the result of the study using service quality dimension revealed that online banking service, attribute Assurance (mean=2.97, SD=0.6123) is rated as relatively the best area of customer satisfaction, followed by tangibility (mean=2.94, SD 0.601) and empathy (mean= 2.87, SD=0.66). Relatively cause of dissatisfied dimensions were responsiveness (mean=2.08 SD=0.59) and reliability (mean=2.67, SD=0.39).This shows the existence of slight variation on the satisfaction level of customers towards service quality dimensions. However, the level of satisfaction for all attribute is very low which is above the mean. Regarding their correlation all the service quality dimensions are positively correlated to customer’s satisfaction. Particularly responsiveness(r=.565**), assurance(r=.467*) reliability(r=.673**) tangibility(r=.436*) empathy(r=.439*). This means a unit an improvement in service quality dimensions will have a percentage positive impact on customer’s satisfaction. Based this fact Awash bank it is critical to build up a strategy bundle which centers around disagreeable improvement by giving uncommon consideration for staffs preparing, intermittent survey of items and administrations, setting up client's input framework and assessing its innovation stage with current mechanical headways. Thusly, the bank can improve its administration quality, in this manner find out its customers‟ fulfillment and win the firm market rivalry.