The Effects of Service Quality on Customers Satisfactions: The Case of Commercial Bank of Ethiopia Serbo Branch

Abstract

The Commercial Bank of Ethiopia (CBE) is the largest financial institution in Ethiopia. The major objective of this study was to assessing the effects of service quality on customer satisfaction in the case of Serbo branch, Jimma Zone. The study was employ quantitative research approach and explanatory (causal) type of research design was employed as a main research design for this study to the realization of intended objectives. Primary data was gathered from those customers’ who have saving account. To attain this objective, questionnaire were designed categorized under five dimensions of the SERVEQUAL model. The sample was selected based on convenience sampling procedure. The collected data were analyzed with the help of SPSS version 23. Correlation and multiple regressions were used to investigate the relationship between dependent and independent variables. The correlation results showed that positive correlation between the dimensions of service quality and customer satisfaction. The results of the regression test showed that except responsiveness, the four service quality dimensions have a positive and significant effect on customer satisfaction. And also the highest correlation was between reliability and customer satisfaction followed by assurance. The findings of the study also indicate that, sufficiency of knowledge, the ability to help and advice customers that benefit them has positive effect on customer satisfaction. Recommendation the commercial bank of Ethiopia Serbo Branch should give due attention to all the components of these service quality dimensions in their priority influence from ASU to EMP. Moreover, assessing the service quality of the bank branch of the CBE on a regular basis can persistently improve the quality of the service and maintain the level of customer satisfaction one step ahead.