Effect of Service Quality on Customer Satisfaction; The Case of Dashen Bank S.C
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Date
2021-06
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A.A.U
Abstract
Service quality and customer satisfaction are critical ideas for businesses to comprehend if they are to expand and remain competitive in today's market. Any modern organization considers service quality to be very important because it contributes to increased customer satisfaction, profitability, lower costs, and improved customer retention. The main purpose of this research study is to examine the effect of service quality on customer satisfaction in some Adds Ababa branches of Dashen bank. To measure the service quality, an extensive survey of the bank customers has been performed with a structured questionnaire distributed to three hundred one respondents of five branches and convenience sampling was used to select the sample. Statistical Package for Social Sciences (SPSS) version 24 has been used to analyze the data and descriptive as well as inferential statistical tools including the use of frequency, tables and Pearson Correlation Coefficient and linear regressions presented. The research result indicated that all the five service quality dimensions (tangibility, reliability, responsiveness, assurance and empathy) have positive and significant with customer satisfaction. Empathy has the significant effect on customers’ satisfaction level which shows that the bank should give due attention for customers feeling, interest and needs in delivering the service. The customers were somehow satisfied with assurance service quality provided by the bank. However, they leveled the service quality provided by the bank as less than they are expected. The study recommends that the bank should enhance its service delivery in all aspects of service quality dimensions to meet the expectation of customers in order to be competent in the market and maximize its profit share.
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service quality, customer satisfaction