The effect of Service quality on customer satisfaction in Awash and Dashen banks on Jimma town, a comparative study

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.