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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Publisher

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

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