| Abstract: | The main objective of the study was to analyze the effect of service quality on customer
satisfaction at Dashen Bank S.C. To this purpose the researcher has studied the effect of service
quality on customer satisfaction, the extent to which service quality dimension is aligned with the
customer satisfaction. Additionally, the researcher used an explanatory research design and a
quantitative approach. A convenience sample of the population was taken as part of the study. A
total of 240 questionnaires were handled by the respondents, and 225 of them completed and
returned their questionnaires. The questionnaires were analyzed by using statistical software
program namely Statistical Package for Social Science (SPSS version 27). The study's findings
were presented in inference and descriptive analysis, and the result of the descriptive statistics
revealed that the impact of service quality on customer satisfaction is at a good level, with a
overall mean value of 4.04 on a 5-point scale. The finding suggests that Empathy, Assurance,
Tangibility, Reliability, Responsiveness of service quality have a positive effect on customer
satisfaction. In addition, the result of the multiple linear regression output signals that the
service quality dimensions factors have affected the customer satisfaction with different effect
level such as every unite increase in Empathy, Assurance, Tangibility, Reliability,
Responsiveness dimension lead to an increase in customer satisfaction by 13.2%, 25%, 26.6%,
20% and 24.4% respectively. This shows that career development opportunities were highly
affected by employee’s performance. The result of the present study proposes that Dashen bank
of Ethiopia need to prioritize these dimensions to improve its employee performance, ultimately
improve its overall performance. Service quality dimensions like Empathy, Assurance,
Tangibility, Reliability, and Responsiveness have a considerable positive effect on the level of
customer satisfaction. Due to this, Dashen Bank S.C needs to prioritize those dimensions to
improve its customer satisfaction and retention, ultimately improve its overall achievement. |
