Effect Of New Product Development On Customer Satisfaction: In The Case Of Awash Bank West Addis Ababa Region

Abstract

The purpose of this study was to investigate the effect of new product development on customer satisfaction of Awash Bank S.C; the case of West Addis Ababa Region. To achieve study objective, descriptive and explanatory research design were used and quantitative research approach used. The study was delimited to proportionate convenience and lottery sampling techniques. The source of the data the study was primary source of data from customers & secondary data from bank report the data was collected using a semi- structured questionnaire which has been developed and distributed to a sample of 400 the total population for the study was user of new product in the west Addis Ababa region branches. The data were analyzed, through i n f e r e n t i a l a na l y s es were conducted by using Multiple Regression. The n e w products in this study were E-School service on the findings have shown that all independent variables, of new product (reliability, product quality, perceived ease of use, trust & responsiveness) have the positive correlation with the dependent variable, (customer satisfaction). In this c a s e , re l a ti v e l y produ ct q u al it y h a d a h i gh e r s t r on g relationship with customer satisfaction. The results also revealed that these independent variables jointly explained Adjusted R square is 0.728 of the variance in Awash Bank S.C customer satisfaction. This summary shows that about 72.8% variance in customer satisfaction is explained by new product variables (reliability, product quality, perceived ease of use, trust & responsiveness), and the ANOVA results shows, it is possible to see the overall significance of the model. Likewise, the empirical findings of the simultaneously by multiple regressions indicated that, all the predictor variables: have a positive and statistically significant effect on the customer satisfaction of Awash Bank S.C. All independent variables significantly effect dependent variable (customer satisfaction). Finally based on the finding, the study recommends that management of the bank has to improve quality of reliability, usefulness, trust and responsiveness