Assessing service quality and Customer Satisfaction (A case of Commercial Bank of Ethiopia)

Abstract

The purpose of this study is to assess service quality and customer satisfaction at commercial bank of Ethiopia using SERVQUAL model that describes various dimensions of service quality. To this purpose the researcher has studied the service quality of the CBE using SERVQUAL model. Convenience sampling technique was used in the study to take a sample from the infinite population. A total sample of 400 respondents who have utilize service on commercial bank of Ethiopian were taken as a respondent. A questionnaire was designed based on the model in order to examine all the five factors of service quality in the model for bank industry. It is inclusively concluded that customers of CBE are not satisfied with the perceived services and it warns the bank to focus on customers’ expectations. Tangibles, assurance, responsiveness, reliability and empathy are five features of the model and in empathy is positively and strongly correlated with customer satisfaction reliability, assurance and Tangibility are positively and moderately correlated with customer satisfaction and responsiveness is positively and weakly correlated with customer satisfaction. Managers should train employees, improve visually attractive facilities and coordinate all people, departments and organizations involved with the services. Finally, managers at CBE should measure customers’ satisfaction and service quality to keep the services corresponded with customers’ opinions.