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