| Abstract: | Banks are extremely crucial in a country's economic life. Although the banking business is
expanding and providing a variety of financial services to the general people, their sheer
existence is meaningless unless they provide excellent service. The aim of this study is to assess
the effect of service quality on customer satisfaction Commercial Bank of Ethiopia west Addis
Ababa district. SERVQUAL model Parasuraman et al., (1988) with five dimensions was used by
this research to evaluate the effect of service quality on customer satisfaction of CBE specifically
in west Addis district. Quantitative means of data collection method is employed to collect the
data through questionnaire. This study used descriptive and explanatory design. Proportionate
and disproportionate stratified sampling technique is used to select the sample size and a sample
of 399 bank customers are taken to undertake the study. Structure questionnaire are used in the
process of data collection from the respondent. The data collected from the questionnaire were
analyzed using statistical tools such as mean, standard deviation, correlation, and regression
analysis VIA SPSS Version 21.The findings of the study indicate from correlation analysis all
service quality dimensions (Assurance, Responsiveness, Tangibility, Empathy,& Reliability) have
a strong and statistically significant relationship with customer satisfaction. When we see the
regression analysis (Empathy, Responsiveness, Assurance and Reliability) has significance effect
on customer satisfaction respectively. Furthermore, 73.8%% of the variations in customer
satisfaction is explained by service quality dimensions in CBE. The quality of service offered by
CBE doesn’t meets with the expectation of customer. So, the bank needs to improve the quality of
service to satisfy and attract the unsatisfied customers. Based on the analysis and results of the
survey, recommendations are made to the bank. |
