The Effects Of Service Quality On Customer Satisfaction In Commercial Bank Of Ethiopia (A Case Of Holeta Town)

Abstract

The importance of service quality for any business performance has been recognized in the literature through the direct impact on customer satisfaction. The major objective of this study was to assess the effects of service quality on customer satisfaction, the case of commercial bank of Ethiopia, Holeta town Branch. The study was employed quantitative research approach as a main research design for this study to the realization of intended objectives. Primary data was gathered from those customers, who have saving account. To attain this objective, questionnaire were designed categorized under five dimensions of the SERVEQUAL model. The sample was selected based on convenience sampling procedure. The collected data were analyzed with the help of SPSS version 26. Correlation and multiple regressions were used to investigate the relationship between dependent and independent variables. The correlation results showed that positive correlation between the dimensions of service quality and customer satisfaction. The results of the regression test showed that except Empathy, the four service quality dimensions have a positive and significant effect on customer satisfaction. And also the highest correlation was between reliability and customer satisfaction followed by assurance. The findings of the study also indicate that, sufficiency of knowledge, the ability to help and advice customers that benefit them has positive effect on customer satisfaction. It was recommended that because all dimensions of service quality are positively related with customer satisfaction, the Bank managers in the study area should focus on increasing this quality attributes so as to improve service quality and increase clients satisfaction. It is also important to evaluate the level of its service quality frequently which will allow the company to measure its effectiveness on quality provision of service in the eye of customer so as to determine their satisfaction level