The Effect of Service Quality on Customer Satisfaction; A Case Study of Abay Bank Share Company

Abstract

This research examined the effect of service quality on customer satisfaction in Abay Bank S.C in Addis Ababa city. To achieve the objectives of this study, data was collected through questionnaire from a Sample of 200 customers. These respondents were selected using convenient sampling method. The data collected from the questionnaire were analyzed using Statistical tools such as mean, for descriptive statistics, and Pearson correlation and regression analysis. The finding shows that all the five service quality dimensions (Empathy, Assurance, Reliability, Responsiveness and Tangibility) are highly correlated with customer satisfaction. The results of this study indicate that, except reliability the four service quality dimensions (tangibility, assurance, empathy and responsiveness) have positive and significant relationship with customer satisfaction. The finding also indicates that customers were most satisfied with the empathy dimensions of service quality. Even though reliability has positive correlation, there is no significant relationship with customer satisfaction. Based on the findings of the study, the researcher forwards some recommendations to the banks management and suggestions for other researchers.