Assessment of Service Quality and Customer Satisfaction in CBE

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Date

2014-06

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Publisher

Addis Ababa University

Abstract

Service quality and customer satisfaction are very important concepts that organizations must understand in order to remain competitive in business and hence grow. Service quality is considered very important because it leads to higher customer satisfaction and retention. The general objective of the research is assessing the service quality and customer satisfaction in Commercial Bank of Ethiopia and also determining the relationship between service quality dimensions and customer satisfaction. At the same time it assessed customers’ expectation and perception about service quality of the bank. The student researcher used quantitative research approach, survey research design as a research design and it also used non-probability sampling as a sampling design. The researcher analyzed data by using correlation and descriptive analysis. In the research the SERVQUAL instrument developed by Parasuraman (1985) has been applied in designing the questionnaire by using five dimensions of service quality; tangibility, reliability, responsiveness, assurance and empathy with five point Likert scale from “1” strongly disagree to “5” of strongly agree. In the study 399 questionnaires were distributed to saving account customers in four selected branches of Commercial Bank of Ethiopia in Addis Ababa. It was found that the overall service quality perceived by consumers was not satisfactory meaning expectations exceeded perceptions and all the dimensions showed higher expectations than perceptions of service. It also confirmed that there is a positive and strong correlation between the service quality and customer satisfaction. The findings suggest that the bank need to improve all the dimensions of service quality from the gap analysis carried out

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Keywords

service quality, service quality dimensions, customer satisfaction

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