The Effect of Service Quality on Customer Satisfaction in Case of Bank of Abyssinia

Abstract

This research examined the effect of customer service quality on customer satisfaction at Bank of Abyssinia in Addis Ababa. Service quality is defined as a degree and direction of discrepancy between customers' service perception and expectations. Customer satisfaction is defined as the customer’s subjective evaluation of a consumption experience, based on some relationship between the customer’s perceptions and objective attributes of the product. To achieve the objectives of this study, data was collected through questionnaire from a sample of 396 bank customer. Out of these distributed questioners 361 questionnaires were returned. Therefore, the response of rate of the study was 90.16%. The data collected from the questionnaire were analysed using Statistical tools such as mean, standard deviation, correlation, and linear regression model has been applied to identifay the effectes service qulaity on customer stsfaction by using SPSS version 25. The study has been tested the classical linear regression model assumptions in order to maintain the data validity and robustness of the regressed result of the research and all assumption incorporated in this study were full filled its condition. From the analyses the results are confirmed that, all the service quality dimensions which were consider in this study have positive and significant effect on customer satisfaction. thus, the service quality dimensions which were considering in this study were significantly to explain the customer satisfaction in banks of Abyssinia in Addis Ababa at 5%. The finding of this study indicates that customers were satisfied with the tangibility, reliability, responsiveness, assurance and empathy dimensions of the service quality of the bank of Abyssinia. Based on the findings of the study, the researcher forwards some recommendations to the bank’s management and suggestions for other researchers.