Assessment of Service Quality, Customer Satisfaction and Loyalty in the Banking Sector a Case Study of Dashen Bank S.C.
No Thumbnail Available
Date
2014-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The main objective of the research is to evaluate service quality in banking industry in case of Dashen Bank S.C and to measure the relative importance of the five service quality dimensions towards customer satisfaction and loyalty.
The researcher has employed explanatory research design with which service quality was explained using the five service quality dimensions and the relationship between service quality, overall customer satisfaction and loyalty was established. Primary data was collected from selected customers of the bank through self administered questionnaire with 22 items SERVPERF scale and three items of overall service quality, customer satisfaction and loyalty, on a five-point Likert-type scale ranging from “strongly disagree” (1) to “strongly agree” (5). Respondents were selected from four Addis Ababa branches of Dashen Bank using convenience sampling method. In order to analyze the collected data, multiple regression analysis and independent sample t-test were employed.
The regression analysis revealed that the five service quality dimensions explain about 45%, 32% and 25% of the variation in overall service quality, customer satisfaction and loyalty respectively. In addition, it is also found that satisfaction has full and significant mediating effect on the relationships between service quality dimensions (reliability, and empathy) and customer loyalty.
In Dashen Bank, tangible, empathy and reliability are the most important dimensions in predicting overall service quality. Therefore, in order to deliver quality and dependable service the bank should improve its ability of performing the promised service dependably and accurately, give caring, and individualized attention for its customers, and have visually appealing physical facilities, modern looking equipment, and personals with neat appearance
Description
Keywords
service quality, quality dimensions, customer satisfaction