Quality of Service Delivery and its Impact on Customer Satisfaction in Four Selected Commercial Banks of Addis Ababa

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Addis Ababa University


The aim of this study was to assess quality of service delivery and its impact on customer satisfaction. It described the relationship between service quality dimensions and customer satisfaction in selected commercial banks in Addis Ababa and identifies the most important dimension of service quality for commercial bank customers. Also, it shows the gaps between customer’s expectation and perception on the quality of service delivery system in the banks. The research was carried out through the use of cross-sectional survey design and primarily based on data collected through structured questionnaire developed based on SERVQUAL instrument. Convenience sampling technique was used to select 200 respondents from four commercial banks. The data has been analyzed via reliability method, descriptive statistics, Spearman’s correlation and gap analysis. The finding shows that all the five service quality dimensions are positively related with customer satisfaction. Reliability shows the highest positive relation with customer satisfaction and tangibles demonstrates the least positive relation with customer satisfaction. The result also indicates 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 services. This implies that the selected banks in Addis Ababa are not providing the level of service quality demanded by customers. The findings suggest that commercial banks need to improve all the dimensions of service quality. Keywords: Service quality, Customer satisfaction



Service quality, Customer satisfaction