The Effect of Service Quality on Customer Satisfaction: the Case of Commercial Bank of Ethiopia in Addis Ababa
No Thumbnail Available
Date
2024-06-20
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
The study investigates the influence of service quality on customer satisfaction within five district neighborhoods of Addis Ababa served by the Commercial Bank of Ethiopia. Utilizing quantitative research methods, a combination of primary and secondary data collection techniques was employed. A survey designed using the SERVQUAL model, which covers five aspects of service quality, was utilized to fulfill the research objectives. A total of 384 participants were chosen for the study through convenience sampling. The data collected was analysis through the utilization of SPSS version 27. The study employed multiple regression analysis and correlation tests to assess the relationship between independent and dependent variables. Findings from the correlation analysis indicate a positive correlation between customer satisfaction and attributes associated with high-quality service delivery. This study contributes valuable insights into the dynamics of service quality and its impact on customer satisfaction within the context of the Commercial Bank of Ethiopia in Addis Ababa. Regression analysis indicated that superior customer service positively influences overall customer satisfaction. Specifically, responsiveness showed the strongest correlation with customer satisfaction, closely followed by dependability. The study revealed that the Commercial Bank of Ethiopia's performance in delivering excellent service did not meet customer expectations, resulting in decreased customer satisfaction. Consequently, it is recommended that the bank establish a robust complaint management mechanism and provide frontline employees with adequate training. By ensuring consistently high service standards across all touchpoints, banks can enhance customer satisfaction, foster loyalty, and sustain their competitiveness within the banking sector.