Abstract:
The study assesseseffects of service quality on customer satisfactionat ERCAJImma
branch. This study endeavors to discover the impact of service quality on customer
satisfaction in ERCA of Jimmabranches using Five dimensions in service quality
(SERVQUAL) such as tangibility, reliability, responsiveness, empathy, and assurance are
considered as the base for this study. To achieve the overall objective of the study collect
data from customers of the branches, using questioners. Accordingly, 242 respondents
were participated in the study using a simple random sampling technique.Both
descriptive and inferential statistics methods were applied in the analysis part. The data
were analyzed by using SPSS version 20.1. The result of the study reveals that the overall
level of customer’s satisfaction in the study area is low as compared those who were not
satisfied. The result of study showed that except assurance the rest service quality
indicators (SERVQUAL) positively and significantly affect customers’satisfaction in the
organization. Thus, it can be concluded that responsiveness, reliability and tangibility
remains the most determinant and/it strongly influence customers’ satisfaction level of
the study area. Furthermore, multiple regressions identify the relative contribution of
each variable and determine the best predictor variables among a set of variables.
Accordingly, responsiveness has the highest contribution to customer loyalty among the
independents variables (beta = .873). Based on the findings the study recommend the
following management bodies of the branch further investigate the main reason of
unsatisfied customers and tried to create continuous improvements on the major factors
affecting customers level of satisfaction.
