Impact of Service Quality on Customer Satisfaction: The Case of Bank of Abyssinia S.C

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Date

2015-12

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Addis Ababa University

Abstract

Banks play a very important role in the economic life of a nation. Although the banking industry is growing and offering various types of financial services to the public, their mere existence does not do any good unless they deliver a quality service. This study is set out to examine the impact of service quality on customer satisfaction in Bank of Abyssinia S.C. SERVPERF model by Cronin and Taylor’s(1992) is used to identify the relationship. Quantitative means of data collection method is employed to collect the data through questionnaire. Proportionate and disproportionate stratified sampling technique is used to select the sample size and a sample of 399 bank customers are taken to undertake the study. The data collected from the questionnaire were analyzed using statistical tools such as mean, correlation, and regression analysis VIA SPSS Version. The results of this study indicate that, all the service quality dimensions (tangibility, reliability, responsiveness, empathy and assurance) have positive and significant relationship with customer satisfaction. Also the finding of this study indicates that customers were most satisfied with the assurance dimensions of service quality followed by responsiveness. Accordingly from the regression result it is observed that all service quality dimensions have positive and significant impact on customer satisfaction. Furthermore, 44% of the variations in customer satisfaction is explained by service quality dimensions in bank of Abyssinia S.C. Based on the findings of the study, the researcher forwarded some recommendations to the bank’s management. Key Words: Service Quality, Customer Satisfaction

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Keywords

Service Quality, Customer Satisfaction

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