RELATIONSHIP BETWEEN SERVICE QUALITY AND CUSTOMER SATSFACTION WITH SPECIAL FOCUS ON AUTOMETED TELLER MACHINE IN COMMERCIAL BANK WEST ADDIS ABEBA DISTRICT

Abstract

In today’s ever changing competitive environment, business cannot survive unless they satisfy their customers. The delivery claim service in banking industry is critical in satisfying customer needs and wants in order to retain existing customers &to attract potential customer to get competitive advantage from its competitors, then sustainable business growth. The research significant to examine relation between ATM service quality dimensions on customer satisfaction. In order to have quality claim service examining a proper delivery system has to be in place. To attain this objective, questionnaire was designed self-administered, close ended which consist demographic character and categorized under nine dimensions of the SERVEQUAL model. The sample consists of 250 respondents selected based on convenience sampling procedure. This study used quantitative research design and both primary and secondary data. The collected data was analyzed by using causal design with the help of SPSS version 16. The correlation and multivariate analysis results indicate that there is a positive correlation between the dimensions of service quality and customer satisfaction. The results of test showed that offering quality service have positive impact on overall customer satisfaction. And also the highest correlation is between Responsiveness and customer satisfaction followed by Reliability. The finding of the analysis showed that, the performance of CBE Low service quality leads low customer satisfaction. Based on this, in order to improve performance of the Bank, the researcher suggested that, the company should prepare power back, data recovery mechanisms, relevant support call center like 951 to get response compliant plus promoting the culture of technology and by giving special attention for the dimension which have weak relationship. The overall level of customer satisfaction shows that above half of the147 (66.52%) were satisfied, 42(19.00%) were stayed neutral and 32(14.48%) were highly satisfied with the ATM service of CBE.