AN ASSESSMENT OF SERVICE QUALITY AND CUSTOMER SATISFACTION: THE CASE OF DASHEN BANK S.C

Abstract

The liberalization of the economic system in Ethiopia enabled the emergence of private banks and have created competitive environment in Banks. The purpose of this study focused on an assessment of service quality and customer satisfaction in the case three branches of Dashen Bank in Addis Ababa.The study used purposive sampling technique and employed the formula presented by Yemane Taro (1967). Accordingly, 390 respondents were selected. Liker- scale questionnaire was administered based on SERVQUAL’s five-dimension model. The data were analyzed using SPSS version-20. Statistical tools such as frequency, correlation, regression analysis and ANOVA were used to answer the research questions. The findings showed that all the five service quality dimensions have direct relation with customer satisfaction. From the five dimensions, Responsiveness and Assurance have strong relationship whereas empathy and tangibility dimensions have relatively moderate relationship. The result also indicated that the overall service quality perceived by consumers was not satisfactory, meaning expectations exceeded perceptions and all the expected level of service quality demanded by customers The findings suggested that Dashen Bank might be improved its service quality in the all dimensions.