THE INFULUNCE OF SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

The objective of the study was to assess the level of customer satisfaction in selected branches at CBE. In order to assess their level of satisfaction, descriptive survey method was employed. Out of four districts in Addis Ababa, two districts and six branches were selected by using convenience sampling technique. Structured questionnaire was used to collect primary data from respondents by using available sampling technique. The respondents were selected from the five grade four branches and one special grade four branch. The self-admistered questionnaire was distributed to 387 respondents. Out of these, 350 were duly filled and returned. These were used in the descriptive analyses. Statistical package for social science (SPSS) 20th version was used in the analyses. Accordingly, the five service quality dimension; namely, tangibles, reliability, responsiveness, assurance and empathy were rated by using 5point likert scale. The result showed that tangible dimensions have negative gap score. This means the physical facilities, equipments and materials which are used at branch level are not up to customer expectation. With regards to reliability dimension, customers perceived the components in the reliability dimension fail to meet their expectation. The responsiveness dimension showed relatively higher negative gap score. This indicates that the employee’s willingness and interest to serve customers are below customer expectation. Besides, assurance dimension scored smaller negative gap score. The last dimension score, Empathy, also shows relatively smaller negative gap score. This was also below customers’ expectation. The correlation result of the study indicated that there is appositive and significant relationship between service quality dimensions and customer satisfaction.