Effect Of Internal Marketing On Customer Service Quality In Commercial Bank Of Ethiopia East Addis Ababa District
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Date
2017-05-05
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Addis Ababa University
Abstract
This project investigates the situation of customer-employee interaction during service encounters, and to see whether there is a plausible relationship between IM programs of the firm which aims at enabling employees by applying marketing like tools that the firm normally used for the external market and customers perceived service quality which is the outcome of customers’ evaluation of the service quality which could be the basis for their future patronage decision. Even though the growing importance of people in service sectors are supported in main literatures there are still problems where traditional approaches of managing business that dully focus on external customers’ satisfaction is still a believes of many firms. The study targets 130 samples of customers based on their convenience and easiness to discern their perception of service quality they receive from the bank and select 189 front-line employees randomly from different branches to obtain there evaluation of the bank’s IM practice.The result shows that generally employees are dissatisfied with their bank’s IM activity. The correlation analysis shows that all variables of IM have a significant association with employees’ perception of internal service quality. The study also examines the influence of five dimensions of service quality on customers’ perception of service quality. Employees’ empathy, responsiveness, tangibility dimension, assurance and reliability of the service were found significant in affecting customers’ judgment of service quality. Even if there is a strong positive correlation between IM variables and perceived service quality, the regression analysis shows that only Employees’ Training, reward, empowerment and internal marketing research are significant to explain the variation in customers perceived service quality. Therefore, it is advisable for the bank to take the necessary measures regarding employees’ training; revising the existing reward system to reflect all employees requirement; there should be empowerment to assist employees in their difficulties; internal marketing should be there to treat the employee as a customer
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reward system, service quality, responsiveness