The Effect Of E-Banking Service Quality On Customer Satisfaction In The Case Of Commercial Bank Of Ethiopia

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Date

2019-07

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Publisher

Addis Ababa University

Abstract

The banking sector in Ethiopia has experienced massive competition among themselves with the introduction of Multiple E-banking service specially after 2010 .In order to minimize their operational costs, and for some other reason commercial banks in Ethiopia have adopted Electronic banking including ATMs, mobile banking and internet banking, POS, PDA and the like where customer can access their accounts in different ways. It can make basic financial services more accessible by minimizing time and distance to the nearest retail bank branches as well as reducing the bank‘s own overheads and transaction- related costs and also enable them to have wider Coverage. The purpose of this study is to examine the effect of e-banking service quality dimensions on customer’s satisfaction of Commercial Bank of Ethiopia. Explanatory Research Design with Quantitate Research approach were employed. Both Primary and secondary Data were used during this research work. Primary Data was collected via selfadministered 360 questionnaires from the population of customers of 20 branches (five branches from each four districts) of CBE in Addis Ababa by using non-probability sampling approach particularly convenient sampling technique. As secondary Sources Different related literature with the topic under study were used .The constructs in this study were developed by using measurement scales adopted from prior studies. The instrument was evaluated for reliability and validity. Data were analyzed using SPSS Version 20. Results of this study indicated that E-banking service quality was directly associated with customer perceived service quality. The results in this study indicate that Reliability; Responsiveness; Ease of use; Personalization; Security; and Website design have influence on customer’s satisfaction of e-banking. In summary, findings provided evidence that E-banking service quality dimensions were influential on customer perceived service quality. Security Dimension and Ease of Use dimension has rated as the most and least Significant Service Quality Dimension respectively. The researcher concludes that there is a linear relationship between e-banking service quality and customer satisfaction. Management of bank needs to view and think from customers’ perspectives so that the management understands customers’ expectations.

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Keywords

E-Banking Service, Quality, Commercial Bank Ethiopia

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