“The Effect of Service quality on Customer Satisfaction in Bank of Abyssinia”

Abstract

This study looked at the effect of customer service quality on customer satisfaction at the Bank of Abyssinia in Addis Ababa. The degree and direction of the gap between customers' service perception and expectations is what is meant by "service quality." Customer satisfaction is characterized as the subjective assessment of a consumption experience made by the customer, based on some correlation between their perceptions and the objective characteristics of the product. Data from a sample of 396 bank customers was gathered using a questionnaire in order to accomplish the goals of this study. 383 surveys were returned from these distributed questioners. As a result, the study's response rate was 96.7%. In order to determine the effects of service quality on customer satisfaction, statistical tools like mean, standard deviation, correlation, and linear regression model were applied to the data obtained from the questionnaire. In order to maintain the data validity and robustness of the research's regressed results, the study's assumptions for the standard linear regression model were tested, and all of them were found to be true. According to the analyses, all of the service quality factors taken into account in this study have a positive and significant impact on customer satisfaction. Therefore, the dimensions of service quality that were taken into account in this study significantly contributed to the 5% explanation of customer satisfaction in banks of Abyssinia in Addis Ababa. The results of this study show that customers were happy with the bank of Abyssinia's tangibility, reliability, responsiveness, assurance, and empathy dimensions of service quality. The researcher makes some recommendations to the bank's management based on the study's findings, as well as advice for future researchers.