The Effect of Digital Banking Service Quality on Customers’ Satisfaction the Mediating Role of Brand Image : In the Case of Commercial Bank of Ethiopia

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2022-09

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Addis Ababa University

Abstract

The study aimed to examine the effect of Digital banking service quality on customers’ satisfaction: the mediating role of brand image in the case of Commercial Bank of Ethiopia. The study employed an explanatory research design and a quantitative research approach. A survey was conducted on 250 customers of Commercial Bank of Ethiopia who are using Digital banking service quality using a convenience sampling method. A Structural equation model (SEM) is employed to estimate the theoretical model and hypotheses are empirically tested by the use of Partial Least Squares (PLS) through Smart PLS software. The findings of the study showed that ease of use and efficiency, responsiveness, security and privacy, and web design had a positive and statistically significant effect on brand image and customer satisfaction. Website design has a strong effect on brand image. Reliability has no statistical significance in determining brand image and responsiveness has no statistical significance in customer satisfaction. The study also discovered that brand image plays a role in mediating the relationship between website design and customer satisfaction. Additionally, brand image has a mediation role in the relationship between security and privacy and customer satisfaction. Finally, the study recommends that the CBE should incorporate personalized Digital banking service features, increase the quality of Digital banking service channels, and establish a complaint tracking system to identify service recovery and measure customer satisfaction at each transaction and update the drawbacks as possible. Key Words: Digital banking, service quality, Brand image, Customer satisfaction, CBE

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