THE EFFECT OF SERVICE QUALITY ON THE EXPORTERS’ LEVEL OF SATISFACTION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

This study aimed to determine the effect of service quality on the level of exporter’s satisfaction in case of commercial bank of Ethiopia (CBE). Providing a quality service in a consistent manner is very significant task for organizations. In order to collect primary data, the researcher has administered the questionnaire on current exporters of CBE. A total of two hundred thirty seven (237) questionnaires were distributed to the current exporters using the service of the bank and out of which one hundred eighty nine (189) were properly completed and returned. To measure the service quality, the researcher has used SERVQUAL model consisting of five dimensions (tangibility, reliability, responsiveness, assurance and empathy). To explain the relationship between service quality and overall customer satisfaction, frequency distribution, descriptive statistics, and correlation analysis was performed. According to the correlation result, responsiveness shows the highest positive correlation with overall customer satisfaction and tangibility demonstrates the second highest positive correlation with overall customer satisfaction. Perceived service quality factors have significant relationship with the overall service quality of the banks which indicates that the service quality dimension have strong influence on the overall customer satisfaction. After all, findings indicate that service quality and all its dimensions have significant and positive relationship with customer satisfaction. Therefore, this study has been specifically conducted to consider this phenomenon by considering service quality as the main contributory factor towards customer satisfaction. So, ensuring premium quality services must be used as the prime objective of the business strategy of banks in Ethiopia