THE EFFECTS OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN THE CASE OF AWASH BANK

Abstract

The purpose of this study was to assess the effect of service quality on customer satisfaction in the case of Awash Bank. The study has used the SERVQUAL model of service quality with the application of the five service quality dimensions. These five dimensions of service quality (reliability, responsiveness, assurance, empathy and tangibility) are used to measure service quality and their effects on the level of customer’s satisfaction in Awash Bank selected branch for this research. The study used quantitative research approach with the aid of descriptive and explanatory designs in order to achieve the research objectives. It has used both primary and secondary data sources to gather pertinent data for the study. Convenient sampling technique is used to select representative samples for the study. Primary data is collected through questionnaire while document review is used to gather information from secondary sources of data. Both descriptive and inferential statistics including correlation and regression analysis are employed to analyse data. According to the findings of the study, four of the five dimensions of service quality have shown a significant positive effect on customer satisfaction. The finding shows that service responsiveness did not show significant effects on customer satisfaction. The result of the study further show that the overall model adopted in the study indicates that tangibility and empathy in service delivery are highly significant at p=0.000. However, reliability and assurance are significant at p of 0.002 and 0.029 respectively. In general, the fitted model of the study expresses that service quality has a significant effect on the level of customer satisfaction in Awash Bank.