The Effect of Service Quality on Customer Based Brand Equity (A case of Commercial Bank of Ethiopia)

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


Brand equity is one of the crucial components that enable banks to get superior advantage over their competitors. This study will be intended to investigate the effect of service quality on customer based brand equity. So, the objective of this research will be: to analyze the effect of SERVQUAL on brand equity dimensions, to compare and evaluate each SERVQUAL dimensions in relation to brand equity dimensions, to analyze the level of performance of CBE regarding proper awareness and implementation of SERVQUAL dimensions, and to evaluate and review the position of customers associated with CBE brand equity. Furthermore, the finding of different researchers indicated that service quality dimensions are not equally important for achieving brand equity. The degree of importance is depending on the nature of the service and performance of the service provider. The service quality of banking industry in Ethiopia in general and CBE in particular demonstrate improvement but the degree of dependability, helpfulness, responsiveness (promptness) and availability and consistency of facilities such as ATM machine, outreaches of branch outlet and other modern technology is inadequate to gain customer based brand equity This study was conducted on customers of CBE in selected branches of Addis Ababa district. In connection to this, structured questionnaire have been distributed for to 384 randomly selected samples but analysis was made based on the data collected from 328 respondents. Analysis and interpretation of the data was conducted by using descriptive and inferential statistical tools with the help of SPSS. The finding of this research clearly states that Service quality is considered as a significant instrument for a firm’s great effort in order to differentiate itself from its competitors and effective implementation of those five dimensions of service quality have a significant effect on customer based brand equity. Service quality is vital to the development and infuses strong and dominant brands because it enhances perceived superiority of the brands or customer based brand equity on side of existing and potential customers and helps to distinguish brands from other similar service providers in competitive markets. Key words: SERVQUAL, brand equity, SERVQUAL dimension, banking industry



SERVQUAL, brand equity, SERVQUAL, dimension, banking industry