Assessment of Service Quality and Customer Satisfaction (The Case of Oromia International Bank Sh.C)
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Date
2014-06
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Addis Ababa University
Abstract
Service quality and customer satisfaction are very important concepts that companies
must understand if they want to remain competitive and grow. In today’s competitive
environment delivering high quality service is the key for a sustainable competitive
advantage. The purpose of this study is to assess the service quality and customer
satisfaction of Oromia International Bank by using a descriptive research type that used
quantitative research method. The target population of the study was customers of OIB in
Addis Ababa region where 385 samples were selected for the study. A survey has been
used to collect primary data and 302 questionnaires were used in final analysis. Validity
and reliability testing were employed to identify service quality attributes. Study results
show that service quality is at the root of customer satisfaction. The findings of the study
revealed that the overall mean score of perception is higher than expectation in
tangibility and assurance dimensions, yielding a positive SERVQUAL gap, reliability and
assurance were resulted in a negative and the responsiveness has a zero gap. The
attributes perceived satisfactory performed are scattered between the five service quality
dimensions. The most affirmatively perceived service quality dimensions are assurance
and responsiveness followed by reliability. However, empathy and tangibility are less
perceived compared to the other dimensions. Responsiveness shows the highest positive
correlation with overall customer satisfaction and tangibility demonstrates the second
highest positive correlation with overall with customer satisfaction. The result of this
study provides evidence that the SERVQUAL dimensions are a useful tool to predict
overall customer satisfaction for OIB. Further analyses on the assessment of service
quality and overall customer satisfaction OIB is a topic to be researched. Continuous
application of the assessment will allow a comparison between the results and further
diagnostics of the service quality.
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Keywords
Service Quality, Customers’ Expectation, Customer Satisfaction