The Effect of Customer Service Quality on Customer Satisfaction in Selected Private Banks (Addis Ababa)

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Date

2012-11

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Addis Ababa University

Abstract

This research examined the effect of customer service quality on customer satisfaction in selected private banks in Addis Ababa. Service quality has been defined as a degree and direction of discrepancy between customers' service perception and expectations. Customer satisfaction is defined as the customer’s subjective evaluation of a consumption experience, based on some relationship between the customer’s perceptions and objective attributes of the product. To achieve the objectives of this study, data was collected through questionnaire from a sample of 342 bank customer. These respondents were selected using simple random sampling method. The data collected from the questionnaire were analyzed using Statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. The results of this study indicate that, except responsiveness the four service quality dimensions (tangibility, assurance, empathy and reliability) have positive and significant relationship with customer satisfaction. The finding of this study also indicates that customers were most satisfied with the assurance dimensions of service quality. On the contrary, customers were less satisfied with reliability and empathy dimensions of service quality. The results also indicate that unlike responsiveness the four service quality dimensions (tangibility, empathy, assurance and reliability) have positive and significant effect on customer satisfaction. Furthermore, the service quality dimensions (tangibility, reliability, assurance and empathy) significantly explain 80% of the variations in customer satisfaction in private banks in Addis Ababa. Based on the findings of the study, the researcher forwards some recommendations to the banks management and suggestions for other researchers.

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Keywords

Customer Service Quality on Customer Satisfaction

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