Assessment of Service Quality and Its Influence on Customer Satisfaction: The Case of Oromia International Bank SC.
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Date
2015-10
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Addis Ababa University
Abstract
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
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Keywords
Service quality, SERVQUAL, Customer satisfaction, Oromia International Bank