THE EFFECT OF SERVICE QUALITY ON CUSTOMER SATISFACTION (THE CASE OF COMMERCIAL BANK OF ETHIOPIA, AYERTENA BRANCH)

Abstract

Today, service industry becomes a competitive area Service rendered organization like banking sector has emerged on scene with a variety of forms such as internet banking, mobile banking, and ATM. Mature competition and global finance system has been forced to investigate the significance of customer satisfaction in line with availability of service quality. This study was set to examine the effect of service quality on customer satisfaction the case of Commercial Bank of Ethiopia using SERVEQAL model. The purpose of the study were to measure customer perception and expectation gap on service dimensions and examine the relationship between overall service quality and customers satisfaction in CBE at Ayertena Branch.A selfadministered questionnaire using was employed to gather, primary data from 232 respondents who are customers of CBE, using convenient sampling technique. Data was processed using SPSS’s version 23 and analyzed via descriptive statistics (i.e. frequencies and percentages, mean scores) and Pearson’s linear correlation and regression analysis. The results of the regression revealed that all independent variables (service quality dimensions) are significantly and positively affected customer satisfaction. Moreover, the finding revealed that all the service quality dimensions are weak significantly correlated and positively associated with the overall customer satisfaction. The researcher recommended that in order to ensure customer satisfaction Commercial bank of Ethiopia should improve its performance on all the dimensions service quality.