THE EFFECT OF POINT OF SALES(POS) TERMINAL SERVICE QUALITY ON CUSTOMER SATISFACTION IN COMMERCIAL BANK OF ETHIOPIA

Abstract

Service quality and customer satisfaction has increasingly been identified as key factors for influencing Point of sale machine customers for their being loyal to the bank. The main aim of this study is to examine the effect of Point of sales machine service quality on customer satisfaction in CBE by selecting five branches of South Addis Ababa district. The study adopted E-SERVQUAL model measurement dimensions comprising of seven dimensions (Reliability, Responsiveness, Security, Efficiency, fulfillment, Assurance and Empathy) by using primarily quantitative data. And also the study used Descriptive, Correlation, Regression and ANOVA analysis Via SPSS.The regression finding revealed that Security, Responsiveness, Empathy and Efficiency are statistical significant whereas Reliability, Assurance and Fulfillment are statistical insignificant. The correlation finding shows that the variables of Empathy, Responsiveness, fulfillment and Reliability have strong positively association with overall customer satisfaction. The other dimensions ofprivacy, assurance and efficiency have a positive moderate relationship with customer satisfaction. Moreover,the descriptive analysis showed that based on the computed mean scores efficiency andsecurity are the most dominant service quality dimensions. Thus,the study concludes thatto improve the service quality of POS of the bank leads to enhance its competition by paying much more attention to satisfying customer’s needs. Finally, the study recommends that the management of CBE should give more emphasis on customer’s satisfaction in order to sustain the profitability of the bank by improving the service quality dimensions