Abstract:
In worldwide the economic growth and developing of country /expansion /of bank industry was more planning and controlling of market fluctuation with profitably, in came generated and afford all service providers. In Ethiopian cooperative bank of oromia was playing significant contribution to poverty reduction and strategy developing of GDP of countries by solving the finical problem of urban and rural people. The aim of this Study was; To assess customer‘s expectation and perception level towards service quality of CBO according to the five service quality and customer satisfaction dimensions: tangibility, reliability, responsiveness, assurance, and empathy and To analyze the gap between customers’ expectation and perception towards service quality, To measure the service quality of the bank accordingly to service quality and customer satisfaction model in the study area, Both qualitative and quantitative research was operational to take on the study data was used to collect the required information. In order to conduct the study purposive sampling technique was used. To select the sample of respondents, simple random sampling technique was engaged. The sample size of the study was 179 members from this 162 returned and 17not returned. Determined by using Yamane formula sampling design. Both primary and secondary data was used to collect the required information. Questionnaire, Key informant interview, Focus group discussion, field observation and likert’s scale were the main tools for data collection. Data were analyzed by using descriptive statistics such as, percentages, frequencies, mean and standard deviation methods. Before analysis data were sorted, summarized, coded and entered in to Excel for statistical analysis by using SPSS version 21. Correlation analysis is carried out to examine the impact of the five service quality dimensions over customer satisfaction. The results exposed that the reliability and empathy dimensions raised the highest level of expectation, whereas the reliability, empathy, and responsiveness dimensions gained the highest level of perception. The findings showed that the dimensions of service quality such as tangible, reliability, responsiveness, assurance, and empathy are positively correlated to customer satisfaction. Finally, it was suggested that the CBO should undertake an internal on the perception and expectation of the bank’s services such as location of ATM machines, access to ATM cards, information signage and special needs services ranked CBO to be inconvenient to customers.
