The Effect Of Agency Banking Service Quality On Customer Satisfaction: A Case Of Commercial Bank Of Ethiopia, Merkato District

Abstract

The main objective of the study was to determine the effects of agency banking service quality on customer satisfaction in Commercial Bank of Ethiopia merkato district. To the specific the study were focuses to determine the effect of tangibility, responsiveness, assurance and empathy dimension of Agent banking service quality on customer satisfaction. The study used explanatory approach to conduct the research. The population of study consisted of the agency banking customers of agents offering agency banking in CBE. The study used a sample of 381 agency bank customers. Questionnaires were used to gather the data. The questionnaire underwent validity and reliability tests, as well as a pilot study, before data being collected. Before distributing the surveys to the respondents, the researcher received ethical approval. Explanatory, correlation and multiple regression analysis analyses were performed using SPSS 23. To summarize the data, percentages, means, and standard deviations were employed. The independent factors, which include tangibility, assurance, responsiveness, and empathy dimension, account for 95% of the variation in the dependent variable. When the explanatory factors under research are contrasted, assurance (0.332), empathy (0.294), tangibility (0.203), and responsiveness (0.092) emerge as the main drivers of consumer satisfaction in this study. The results of the multiple regression analysis showed that not all service convenience factors had a statistically significant impact on customer satisfaction. Access to the agents and customer happiness are statistically related, as are the advantages of the services and customer contentment. The ease of the decision, the ease of the transaction, the ease of the post-benefit, and customer happiness were all related. Regarding service dependability, the agents fulfilled their commitments, showed a strong interest in resolving customer issues, supplied services on time, and kept accurate transaction records. According to multiple regression coefficients, there is a statistically significant connection between customer satisfaction and service quality.The study recommends that, agents must continually improve service delivery by reducing the time customers wait to be served, by improving professionalism, sense of belongingness, attractiveness and eliminating errors in financial transactions through adequate controls to keep the satisfaction level.