Abstract:
The main purpose of this study is to identify the effect of service quality on customer
satisfaction in Cooperative bank of Oromia Ambo branch and oddo liban branch.
Convenience sampling technique was used to select the sample size and a sample of 202
bank customers are taken to undertake the study and Out of these distributed questioners
182 questionnaires were returned. For the purpose of the study primary data were
collected using likert scale based questionnaire. The data collected from the
questionnaire were analyzed using statistical tools such as mean, correlation, and
regression analysis via SPSS (version. 20). Descriptive analysis also indicates that
customers were moderately satisfied with the reliability dimensions of service quality
followed by responsiveness and empathy. However, there are problems that hinder the
effectiveness of service delivery in the bank like power fluctuation, network connection
problem, mismatch of the number service providers with the customers, shortage of
working hours and lack of customer waiting hall. The finding from the correlation result
shows that there is a positive and significant relationship between the service quality
dimensions and customer satisfaction. The Pearson’s correlation indicates that the
highest relationship is found between responsiveness followed by tangibility and
assurance, and customer satisfaction. In addition the three service quality dimensions
responsiveness, assurance, tangibility, has positive and significant effect on customer
satisfaction at the bank. However, the rest two dimensions empathy and reliability have
no effect on customer satisfaction. Service qualities also have positive and significant
effect on customer satisfaction. Based on these, the researcher forwards some
recommendations that the bank should work more on the two service quality dimension
(reliability and empathy) to enhance customer satisfaction to the bank’s management and
suggestions for other researchers. Finally, the researcher forwarded some
recommendations for the management of the bank.
