THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION: THE CASE OF ZEMEN BANK S.C

Abstract

The objective of this study to examine the relationship between service quality dimensions and customer satisfaction, the effect of service quality on customer satisfaction, and to identify the dominant service quality dimension with the strongest effect on customer satisfaction. To achieve its purpose the study employed an explanatory research design based on SERVPERF model of service quality measurement. About 156 respondents from three branches of Zemen bank have participated in filling a self-administered questionnaire that contained 22 performance statements grouped into five service quality dimensions. The collected data is coded and analyzed using SPSS 25 statistical software. The analysis includes both descriptive and multiple regression analysis. The descriptive assessment revealed that the bank got the highest score in the tangibility dimension followed by the assurance and reliability dimensions. The responsiveness and empathy dimensions have gotten relatively lower scores. The Pearson correlation revealed a strong relationship between the quality dimensions and customer satisfaction. The regression result revealed that except for empathy the other four quality dimensions have a statistically significant and positive effect on customer service. The responsiveness dimension has the strongest effect on customer satisfaction followed by assurance and tangibility. Finally, the study suggested some recommendations based on the findings.