Determinants Of Service Quality On Customer Satisfaction: The Case Of Commercial Bank Of Ethiopia

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