THE EFFECTS OF LOAN SERVICCE QUALITY ON CUSTOMER SATISFACTION IN BERHAN INTERNATIONAL BANK

Abstract

The aim of the study is to investigate the effect of service quality on customer satisfaction regarding quality of credit services specifically provided by Berhan Bank. Service quality is studied within a spectrum of different dimensions. Empathy, responsiveness, Tangibility and reliability respectively find out the service quality dimensions may enhance customer satisfaction in a better way. Respondents are chosen from a range of various categories and the samples were drawn using purposive sampling. This research mainly focuses on Berhan Bank credit customers. This study used SERVPERF model of measuring service quality developed by Cronin and Tailor in 1992, which used five dimensions (tangibility, reliability, responsiveness, empathy and assurance). Questionnaires were distributed 250 credit customers of the bank. A 100% response rate is yielded. Findings indicate that service quality and all its dimensions have significant and positive association with customer satisfaction. Mainly, Empathy and Responsiveness resulted in high relationship, high significance and high predictors of customer satisfaction.