Assessment on Service Quality in Commercial Bank of Ethiopia: Emphasis on Customers’ Accounts and Transaction Service

Abstract

In this era of intense competition, one of the key challenges that organizations face is how to manage quality service which is a prerequisite for customer satisfaction. As a result of improved information communication technology, customers have become well informed, discerning and value sensitive. Understanding the need, wants and desires of customers and demonstrated ability to satisfy them efficiently is imperative for success in the market place. To this end, this research paper aimed to evaluates the service quality in Commercial Bank of Ethiopia emphasizing on Customers’ Accounts and Transaction Service. The research has adopted a descriptive research design approach. Data were gathered from employees and customers of the bank through close and open ended personally administer questionnaires. Employees and customers of CBE were targeted in this study. Multi stage cluster and simple random sampling strategies were used for choosing the respondents of the study. 250 employees and 150 customers took part in the study. The information obtained from the respondents was analyzed using descriptive statistics. The research has significant implications for branches and for CBE in general, in terms of developing operational, marketing and human resource strategies, and can help CBE to incorporate service quality issues in to their strategies planning. The study may be useful for private commercial banks with a similar banking culture of CBE.The findings of this study were:- lack of training on the bank’s new products and service delivery, improper office arrangement to deliver service, shortage of the necessary working equipment and materials, problem on the allocation of physical facilities, lack of technologically up-to-date physical facilities, lack of performance management system, lack of employees complaint handling system and lack of recognition for employees who do best job in serving customers.