EFFECTS OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN AWASH BANK

Abstract

This research examined effect of service quality on customer satisfaction in Awash bank s.c. Service quality has been defined as a degree and direction of discrepancy between customers' service perception and expectations. Customer satisfaction is defined as the customer’s subjective evaluation of a consumption experience, based on some relationship between the customer’s perceptions and objective attributes of the product. To achieve the objectives of this study, data was collected through questionnaire from a sample of 96 customer of the bank. These respondents were selected using simple random sampling method. The data collected from the questionnaire were analyzed using Statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. 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 of this study also indicates that customers were most satisfied with the empathy dimensions of service quality. On the contrary, customers were less satisfied with reliability and tangibility dimensions of service quality. Furthermore, the service quality dimensions (tangibility, reliability, assurance and empathy) significantly explain 80% of the variations in customer satisfaction in awash bank s.c. Based on the findings of the study, the researcher forwards some recommendations to the banks management and suggestions for other researchers. Empathy dimension was considered as one of the most important factors influencing customer satisfaction in awash bank was one of the vital finding of these research. Awash bank must work hard in addressing Empathy dimension of service quality and so that they can retain their customer and attract even new customer.