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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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