The Effect Of New Product Development On Customer Satisfaction: The Case Of Commercial Bank Of Ethiopia

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Date

2018-05-16

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Addis Ababa University

Abstract

New product development has become potentially valuable way of securing competitive advantage by improving organizational performances and improving customer satisfaction through quality service. This study was conducted with an objective of identifying effect of new product development on customer satisfaction in commercial bank of Ethiopia. It conceptualized and developed five dimensions of new product development: reliability, trust, perceived ease of use, perceived usefulness and relative advantage. The new products included in this study were mobile banking, internet banking and POS machines. This study used both descriptive and explanatory research designs. The total population for the study was 360,008 and the sample size for this figure was 400. Those Sample respondents for this study are selected by using Non probability convenience sampling method. Data were collected from primary sources through questionnaire and analyzed through both descriptive and inferential methods. The descriptive analysis was conducted by using mean and standard deviation. On the other hand, inferential analysis was conducted by using Pearson correlation method and linear multiple regressions method. The result indicated that new product development and its attributes (reliability, trust, perceived ease of use, perceived usefulness and relative advantage) have significant effect on customer satisfaction. All independent variables significantly affect dependent variable (customer satisfaction). Based on the findings, the researcher recommends that management of the bank has to improve reliability of the products, trust, easiness to use, perceived usefulness and relative advantage of the products

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Keywords

New product development, reliability, trust

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