Assessment of Service Quality and Its Influence on Customer Satisfaction: The Case of Oromia International Bank SC.

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Addis Ababa University


This research aims to measure service quality at Oromia International Bank SC. It also examined the influence of quality service towards customer satisfaction The SERVQUAL model was used to determine customers’ perception of service quality at OIB. The researcher collected sample data from 40 branches of Oromia International bank selected on simple random sampling. Systematic random sampling also used to select 399 respondents from each sample branches and questionnaires were distributed to all. Out of the total distributed questionnaire 225 were returned and 14 of the returned were rejected due to missing data while the remaining 211 responses were used for data analysis. all the service quality dimensions showed a negative disconfirmation result indicating that the service quality at OIB is below the customers’ expectation. Moreover the study identified positive and strong relation between the independent variables, the five service quality dimensions indicating that customers of OIB are less satisfied by the its service. The negative disconfirmation for tangibles is the highest score that calls for the OIB managements’ immediate action since the improvement in this dimension significantly changes the service quality and customers satisfaction as well. The researcher recommended that the bank should invest on the human resources part to enhance the skill and quality of the service providing staff. By doing so the bank could have sustained competitive advantages as the human aspect of an organization is not easily imitated by the competitors. Secondly, it should also invest in the physical evidence of the service, the tangible dimension. Key words: Service quality, SERVQUAL, Customer satisfaction, Oromia International Bank



Service quality, SERVQUAL, Customer satisfaction, Oromia International Bank