Abstract:
The aim of this study is to assess of service quality and customer satisfaction. It described the
relationship between service quality dimensions and customer satisfaction in selected branches
of Co-operative bank of Oromia in Addis Ababa and identifies the most important dimension of
service quality for the bank customers. Also, it shows the gaps between customer’s expectation
and perception on the quality of service delivery system in the bank.
The research was carried out through the use of descriptive research design and primarily
based on data collected through structured questionnaire developed based on SERVQUAL
instrument. Convenience sampling technique was used to select 150 respondents from five
selected branches of Co-operative bank of Oromia in Addis Ababa. The data has been
analyzed through descriptive statistics, Pearson’s correlation and gap analysis.
Among the five services quality dimensions reliability shows the highest positive relation with
customer satisfaction and tangibles demonstrates the least positive relation with customer
satisfaction. The result also indicates that the overall service quality perceived by consumers
was not satisfactory meaning: expectations exceeded perceptions and all the dimensions
showed higher expectations than perceptions of services. This implies that the selected
branches of CBO in Addis Ababa are not providing the level of service quality demanded by
customers. The findings suggest that the CBO need to improve all the dimensions of service
quality.
