The Effect of Credit Service Quality on Customer Satisfaction in Zemen Bank S.C Sited in Addis Ababa

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Date

2017-05-03

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Addis Ababa University

Abstract

The aim of this research study is to study the effect of service quality on customer satisfaction regarding quality of credit services specifically provided by Zemen Bank. Service quality is studied within a spectrum of different dimensions. An effort is also made to find out which service quality dimensions may enhance customer satisfaction in a better way. Respondents are chosen from a range of various demographic features and the samples were drawn using purposive sampling. This research mainly focuses on Zemen Bank credit customers. This study used SERVPERF model of measuring service quality developed by Cronin and Tailor in 1992, which used five dimensions (tangibility, reliability, responsiveness, empathy and assurance). Questionnaires were distributed among 150 credit customers of the bank. A 100%response rate is yielded. Findings indicate that service quality and all its dimensions have significant and positive association with customer satisfaction. Mainly, Reliability and Responsiveness resulted in high relationship, high significance and high predictors of customer satisfaction. The recommendations suggested are regular training concerning service quality, design new system which enables to respond to client’s need at the promised time frame, and also the bank should always avail itself to solve credit customer’s problem. Banking sector is a significant sector in Ethiopia’s economy and has seen unparalleled growth and fierce competition during the last decade. Therefore this study has been specifically conducted to look into this phenomenon and seek empirical justification in this regard by considering service quality as the main contributory factor towards customer satisfaction.

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Keywords

Reliability, Responsiveness, Empathy

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