Abstract:
The main object of this study to examine the effect of service quality dimensions on customer
satisfaction in two selected private Bank sectors located in Jimma town. A research design for this
study has both descriptive and explanatory was used. The research instrument used in this
research was questioners. A total of 397 of questionnaires were distributed physically to
customers of Awash and Dashen banks in jimma town. Statistical package for social science
(SPSS) was used to analyze the data which were collected from the survey, respondents feedback
were analyzed through Both descriptive and inferential statistics were used to analyze and interpret
the findings. . Descriptive statistics used for such as frequency and mean and standard deviations
moreover independent sample t-test was applied, inferential statistics used for such Pearson
correlation analysis and multiple regression .the results indicates that the independent variables
service quality dimension have significant relationship with customer satisfaction. The finding
reveal that assurance and empathy have a significant impact on customer satisfaction whereas
tangibility, responsiveness and reliability do not have significant relationship with customer
satisfaction. The research recommend that even though The SERVQUAL dimensions a positive
relationship with customer satisfaction , Awash and Dashen banks the bank were not fully utilized
to satisfy customers effectively. Therefore banks should pay attention to service quality and other
factors which in turn increase customer satisfaction.