The impact of quality service delivery on customer satisfaction: in the case of selected commercial banks in Ethiopia under Addis Ababa district branches.
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Date
2019-12
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A.A.U.
Abstract
The banking industry of Ethiopia plays a crucial role for the economy of the country. As the
financial institution and service sector the activities of the commercial banks mainly depend
on customers. By delivering quality service customer satisfaction has become the issue of
success for the banking industry. This research has considered critical literature reviews of
studies which were done with related to customer satisfaction with the objective of examining
quality service delivery factors and the impact on customer satisfaction. Since there is stiff
competition in the banking industry of Ethiopia; customer satisfaction is the means of gaining
competitive advantage within the industry. And this study used a quantitative research
approach with purposive sampling technique to select two private and one public bank out of
eighteen banks in the industry. Primary data source (questionnaire) was used with a total
sample size of 400 respondents. For this study the dependent variable is customer satisfaction
whereas the independent variables are; technology, bank accessibility, employee competency,
internal processes and office layout. And the questionnaire data which was collected by using
likert scale was analyzed by using descriptive and inferential statistics (ANOVA, correlation
and multiple linear regression models). ANOVA was used to test the relationship between
demographic characteristics and customer satisfaction and the result showed that there is a
relationship between (age and level of education) and customer satisfaction. And based on
the regression analysis, there is insignificant (weak) relationship between technology and
customer satisfaction. On the other hand, there is significant impact between four
explanatory variables (bank accessibility, employee competency, internal processes and
office layout) and customer satisfaction in service quality of both public and private banks.
Thus to excel the service quality and to satisfy the customers the commercial banks should
improve the service. Network and power interruption, lack of competent employees and gaps
in awareness creation for the banking service to the customers in easy and understandable
manner are the causes for poor service quality. Therefore, to achieve the objectives and goals
the commercial banks should give appropriate solutions for the identified problems to
overcome customer dissatisfaction in service quality.
Description
A thesis submitted to Addis Ababa University, college of business and economics department of management in requirements for master of business administration (MBA)
Keywords
Customer Satisfaction, Service Deliver, Service Gap, Quality Service