The Effect of Service Quality on Customer Satisfaction: The Case of Dashen Bank S.C.

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Addis Ababa University


The objective of the study is to examine the service quality provided by Dashen Bank and its effect on customer satisfaction using SERVPERF model. The research used descriptive and explanatory research design to describe the service quality dimensions and to understand the relationship between the variables. The Bank classified its branches in grades. In line with this, the study applied proportionate stratified sampling technique to determine the number of branches included in the sample from different grades and simple random sampling techniques to select the sample branches from each grade. Primary data is collected from the customers of the Bank using self-administered questionnaire. The questionnaire contained SERVPERF model with a 22 performance statements and the degree of the customers’ agreement has been measured using five Likert Scale method. Quantitative research method is applied to analyze the data using Statistical Package for Social Science (SPSS) software version 20 and the data is presented in descriptive and inferential statistics. The correlation result of the study showed that there is a positive and significant relationship between service quality dimensions and customer satisfaction. The regression analysis exhibited, the service quality dimensions have significant influence on customer satisfaction except responsiveness. It also indicated that assurance is the dominant service quality dimension that has a strong relation with customer satisfaction in Dashen Bank. Key Words: Service quality, Customer satisfaction, SERVPERF, Dashen Bank



Service quality, Customer satisfaction, SERVPERF, Dashen Bank