THE EFFECT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN THE CASE OF ADDIS INTERNATIONAL BANK AT ADDIS ABABA

Abstract

The main objective of this study is to examine the effect of service quality on customer satisfaction in the case Addis international Bank at head office and selected branches in Addis Ababa by using SERVPERF model. Descriptive and explanatory research design was employed for this study in order to describe the level of customer perception about service quality which offered by the bank and to see the relationship of service quality dimension and customer satisfaction. The study was used convenient sampling technique to select the sample respondents; and 398 respondents were selected from all branches of ADIB at Addis Ababa. This study used both primary and secondary source of data to achieve its objective. The primary data was collected through questionnaire. The collected date was analyzed by using SPSS version 20. It was used descriptive statistics to demonstrate the profile of respondent and to see the perception of customer about the quality of service and used inferential statistics to know the relationship between service quality dimensions and customer satisfaction and the effect of service quality dimensions on customer satisfaction. The correlation result revealed that all service quality dimensions have a strong and statistical significant relationship with customer satisfaction. The regression analysis result indicates service quality dimensions have a positive effect on customer satisfaction. The quality of service offered by ADIB doesn’t meet with the expectation of customer. So, the bank needs to improve the quality of service to satisfy and attract the unsatisfied customers.