Effect of E banking on Customer Satisfaction: The Case of Commercial Bank of Ethiopia
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Date
2018-06
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A.A.U
Abstract
This research work intends to investigate the effect of E-banking variables on customer satisfaction in Commercial Bank of Ethiopia. In addition the research tried to investigate major challenges encountered by the bank in delivering the service that may reduce the level of customer satisfaction in using the technology. Based on literature five quality dimensions viz. reliability, efficiency, security, responsiveness and contact have been selected as forecasters of customer satisfaction in E-banking. The study adopts Quantitative Research design. Data has been gathered through already tested questionnaire from 386 CBE E-banking users in Addis Ababa. The sample were selected from eight city branches by judgment sampling technique The data was gathered through 5-point likert scale and analyzed with the help Statistical Package for Social Science (SPSS) version 23. To test the relation between e banking satisfaction and the selected variables Multiple Linear Regression method was used. Further chi square test also done so as to test the relation between demographic character and e banking satisfaction. The empirical result shows that the quality dimensions: reliability, efficiency, responsiveness and contact have strong impact on e banking customer satisfaction in CBE. Therefore CBE need to satisfy these dimensions (efficiency, reliability, responsiveness and contact) by all means in order to achieve customer satisfaction in e banking. More over the finding reveals customer satisfaction in using e banking has a relation with age and educational level. The major challenges that the bank faced in providing the service are; service broken due to internet connectivity and electric power problem, lack of Information and Communication infrastructures, lack of customer awareness in using the technology. Thus, in order to sustain customer satisfaction CBE should work with concerned government bodies (Ethio-telecom & Electric power corporations). In addition to government support the bank should strive along with all banks in Ethiopia with the help of Bankers association so as to have dedicated infrastructure to financial institutions in the country.
Description
A Thesis Submitted to Addis Ababa University in Partial Fulfillment of the Requirements for the degree of Masters of Arts in Business Administration (MBA)
Keywords
Customer satisfaction, Electronic Banking, Service Quality