Impact of e-banking service on customer satisfaction commercial bank of Ethiopia in jimma city

Abstract

The study focused on impact of e- banking service quality on customer satisfaction in the commercial bank of Ethiopia. The main objective of the study was to identify the relationship between electronic services quality and customer satisfaction using the seven quality dimension model such as reliability, Transactional efficiency, customer support, services security, easy use, performance and service content. Explanatory research design was used to find out how electronic services quality affects customer satisfaction in commercial bank of Ethiopia. For data collection, primary and secondary data were used. The simple random sample techniques were used in selecting the respondents. A sample size of 387 was used for the study and the data collecting was analyzed by using SPSS version 21. For data analysis both descriptive and inferential statically were used. Descriptively tables, percentages, mean and standard deviations were used to analyses demographic variables. Inferentially, regression and correlation were used. Regression was employed to test the impact of e-banking services quality on customer satisfaction while correlation was used to determine the strength of the relationship of the variables. The research findings from the hypothesis test using the electronic service quality dimension shows that strong predictor of customer satisfaction in commercial bank of Ethiopia with R-Square 0.694. The other findings indicate that performance, easy use, customer support and service content are all positively correlated and significant at 1% level. Additionally the regression analysis indicates reliability, transaction efficiency and service security all are negatively correlation with customer satisfaction and significance at 5% level. Finally, based on the findings of the study, it was recommended that there is the need to train majority of the e-banking user’s people on internet banking.