Assessment of service quality and customer satisfaction in case of some selected branches of ‘‘co-operative bank of oromia’’ in addis ababa.

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.