Measuring the Service Quality of United Bank S.C. and its Relationship with Customer Satisfaction
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Date
2014-06
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Addis Ababa University
Abstract
In order to maintain the market share in this time of high competition, commercial banks in Ethiopia need to provide a high quality of service to their customers. This paper measures the service quality of United Bank S.C. and its relationship with customer satisfaction. To do so it used the SERVPERF model of measuring service quality developed by Cronin and Tailor in 1992, which used five dimensions (tangibility, reliability, responsiveness, empathy and assurance). The instrument measured service performance by using twenty two indicators that belong to the five dimensions of SERVPERF. The instrument was tested for reliability and validity before the questionnaire was distributed to 385 customers of United Bank S.C., Addis Ababa branches. In this quantitative survey, Hypothesis was tested to find out whether service quality dimensions had a positive relationship with customer satisfaction. The results indicated that all the dimensions had a positive correlation with service quality and also the regression analysis indicated the two most dominant service quality dimensions from among the five dimensions to be responsiveness followed by empathy. The finding of this study is important to help managers focus their attention on the service quality dimension that matters most to customers
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Keywords
market share, commercial banks in Ethiopia, high quality