In Partial Fulfillment of the Requirements For the Degree of Master of Arts in Marketing Management Education

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Addis Ababa University


Service quality is defined as the degree of alignment between customers' expectations and their perceptions of the service received. Measuring of customers' satisfaction is also recess GlY to the process of serving customers. The purpose of this study is to assess whether the Commercial Bank of Ethiopia, North Addis Ababa District branch Banks customers were satisfied with the service they were provided by the banks and to identifY the areas in which the bank has serious drawbacks. To conduct this research, descriptive survey method was used. The questionnaire was designedji-om the SERVQUAL model which was developed by Parasuraman (1988). From the Jourteen branches of Commercial Bank of Ethiopia North Addis Ababa District Branches, four branches were selected purposely. To these selected branches, 300 questionnaires (75 questionnaires to each branch) were distributed. As a result the SERVQUAL scores for thefive service quality dimensions and the 22 attributes of service quality dimensions were found negative. The customers of the banks were dissatisfied by the service quality of the bank provided to them. The customers were also ranked first reliability as the most important and responsiveness as the second important attribute of service quality dimension. To close the gap between cllstomers' expectation and perception, the bank managers are suggested to provide training to staff personnel who contact customers in the area of service quality dimensions e:,pecially reliability, assurance, responsiveness, empathy and tangibility. In relation to customers ' satisfaction, bank managers suggested to evaluate the service they provide to their customers from time to time. In addition to this, they are also recommended to facilitate ways receiving feedback and encouraging customers to provide them Jeedback. Finally, bank managers are also recommended to undertake investigation with regard to the most important service q1lality attribute to customers and based on the research result, they are suggested to mobilize financial, material and human resources towards the most relatively important attribute service quality.