The Effect Of Electronic Banking Innovation On Customer Satisfaction In Case Of Awash Bank West Addis Ababa Region

Abstract

This study was to examine the effect of e-banking innovation in case study on customers of Awash Bank West Addis Ababa region. The study tests five dimensions of innovation which is product, marketing, service, technological and process innovations whether there is a relationship on customer satisfaction in AB. Five research hypotheses are constructed in the literature review. This study was intended to examine the effect of e-banking innovation on customers’ customer satisfaction in AB West Addis Ababa Region. Particularly, it was focused on examining the effect of e-banking innovation in creating customers’ satisfaction in terms of five dimensions: namely product, marketing, service, technological and process innovation. Both descriptive and explanatory designs with quantitative approach were employed. Data were collected using five-point scale self-administered questionnaire from 385 customers that questionnaire customers that were to sampled across 10 branches of AB supervise under West Addis Ababa Regions. After all appropriate statistical assumptions were checked and confirmed data were analyzed through descriptive and inferential statistical tools by using spss v.23 According to the data, about 66% of the variation in customers’ satisfaction can be explained by the dimensions of e-banking innovation. Result also shows that three of proposed dimensions of e-banking innovation namely (product, marketing and technological innovation), has a positive effect on customer satisfaction and service innovation found to have negative effect on customer satisfaction, however process innovation found to have statistically insignificant to analyze. Finally, it is recommended that as the management of AB who desire to improve on customer satisfaction should invest much of the company’s resources into product innovation, marketing innovation and technological innovation