The Effect of Interest Free Banking Service Quality on Customers’ Satisfaction: A Study on Commercial Bank of Ethiopia
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Date
2018-06-06
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Addis Ababa University
Abstract
The diminishing levels of service quality in the financial institutions had resulted in abysmal performance of most banks and other financial institutions in the sector and this challenge has made it imperative for financial firms like CBE to be customer centered in all their operational activities. The purpose of this study is to determine the effect of service quality of IFB on customers’ satisfaction using CBE as a case study. The study utilized convenience and random sampling techniques to select 400 customers who served as respondents in the study. Correlation and multiple regression analysis were employed as analytical techniques. The results show that Assurance is highly correlated with customer satisfaction which was followed respectively by compliance, empathy, reliability, responsiveness and tangibility dimensions. It was also discovered that the six service quality dimensions significantly influenced the satisfaction of Commercial Bank of Ethiopia customers’ as all gets correlation value more than 0.7. The study recommends that management of the bank should exploit and maneuver the service quality dimensions as a survival strategy for improving customers’ satisfaction in an industry characterized by intense competition and environmental dynamism.
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Services Quality, Interest Free Banking Services, Customer Satisfaction