Abstract:
Service quality and customer satisfaction are very important concepts that organizations must
understand in order to remain competitive in business and hence grow. Service quality is
considered very important because it leads to higher customer satisfaction and retention.
The researcher used quantitative and qualitative research approaches with the survey research
design and also used probability sampling as a sampling technique. The researcher analyzed
data by using correlation, descriptive analysis and designing the questionnaire by using seven
dimensions of Tangible, Reliability, Assurance, Responsiveness, Empathy, Competitive Pricing
and Corporate Image with a five-point Likert scale from “1” strongly disagree to “5” of
strongly agree. In the study, 243 questionnaires were distributed to saving account customers in
selected branches of the Commercial Bank of Ethiopia in Addis Ababa.
It was found that the overall service quality perceived by consumers was satisfactory meaning
expectations related to perceptions and the six service quality dimensions result showed CBE
provides expected customers’ service. On the opposite, the finding shows that the other variable
of competitive pricing is insignificant with customer satisfaction. It also confirmed that there is a
positive and strong correlation between service quality and customer satisfaction. The
recommendations suggest that the bank needs to improve all the dimensions of service quality
from the gap analysis carried out. And also, the bank management should identify the primary
quality determinants, clearly manage the customer expectation, educating the knowledge to
customers regarding the service they render to increase customers’ perception and reduced this
customers gap
