Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo

Natnael Salfore Sharecho; Devulapalli Raghava

doi:doi:10.11648/j.ebm.20220801.12

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Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo

Natnael Salfore Sharecho, Devulapalli Raghava

Published in European Business & Management (Volume 8, Issue 1)

Received: 20 January 2022 Accepted: 16 February 2022 Published: 25 February 2022

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Abstract

Nowadays, there is increased demand for higher quality services as consumers throughout the world in all sectors become more concerned with quality. Currently, quality in service is the main issue by which producers differentiate themselves from the competitor. The overall objective of this study was to investigate the effect of service quality on customers’ satisfaction in the case of Commercial Bank of Ethiopia branches in Wolaita Sodo town. For this purpose, 383 respondents were selected from target population using simple random sampling method and 22 item likert scaled SERVPERF instrument questionnaires were distributed and 344 valid responses were analyzed. The correlation analysis result indicated that there were positive and significant relationship between all service quality dimensions and customer satisfaction. Regression analysis which was performed to study the effect of service quality on customer satisfaction found that four service quality dimensions: namely, empathy, responsiveness, reliability, and assurance were positively and significantly affect customers’ satisfaction and the tangibles dimension was insignificant for analyses. Compared with other quality dimensions in SERVPERF instrument, empathy has high effect on customers’ satisfaction. It can be concluded that the service quality has significant effect on customer satisfaction in the bank. The bank is recommended to work hard in all quality aspects and give more personal attention to customers, understand the interest of customers, care for their customers, and give prompt service as these will result in customers’ retention, positive word of mouth and increased profitability.

Published in	European Business & Management (Volume 8, Issue 1)
DOI	10.11648/j.ebm.20220801.12
Page(s)	12-19
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Service Quality, Customer Satisfaction, SERVPERF

References

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[7]	Dawit, J. B., & Adem, U. (2018). The Effect of Perceived Service Quality on Customer Satisfaction in Private Commercial Banks of Ethiopia: The Case of Selected Private Commercial Banks at Dire Dawa Administration. Bus Eco J, 9 (358), 2.
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[20]	Zeithaml, V. A. & Bitner, M. J. (2003). Service Marketing: Integrating Customer Focus across the Firm. Boston, MA: McGraw Hill.
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APA Style

Natnael Salfore Sharecho, Devulapalli Raghava. (2022). Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo. European Business & Management, 8(1), 12-19. https://doi.org/10.11648/j.ebm.20220801.12

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Natnael Salfore Sharecho; Devulapalli Raghava. Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo. Eur. Bus. Manag. 2022, 8(1), 12-19. doi: 10.11648/j.ebm.20220801.12

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AMA Style

Natnael Salfore Sharecho, Devulapalli Raghava. Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo. Eur Bus Manag. 2022;8(1):12-19. doi: 10.11648/j.ebm.20220801.12

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@article{10.11648/j.ebm.20220801.12,
  author = {Natnael Salfore Sharecho and Devulapalli Raghava},
  title = {Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo},
  journal = {European Business & Management},
  volume = {8},
  number = {1},
  pages = {12-19},
  doi = {10.11648/j.ebm.20220801.12},
  url = {https://doi.org/10.11648/j.ebm.20220801.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20220801.12},
  abstract = {Nowadays, there is increased demand for higher quality services as consumers throughout the world in all sectors become more concerned with quality. Currently, quality in service is the main issue by which producers differentiate themselves from the competitor. The overall objective of this study was to investigate the effect of service quality on customers’ satisfaction in the case of Commercial Bank of Ethiopia branches in Wolaita Sodo town. For this purpose, 383 respondents were selected from target population using simple random sampling method and 22 item likert scaled SERVPERF instrument questionnaires were distributed and 344 valid responses were analyzed. The correlation analysis result indicated that there were positive and significant relationship between all service quality dimensions and customer satisfaction. Regression analysis which was performed to study the effect of service quality on customer satisfaction found that four service quality dimensions: namely, empathy, responsiveness, reliability, and assurance were positively and significantly affect customers’ satisfaction and the tangibles dimension was insignificant for analyses. Compared with other quality dimensions in SERVPERF instrument, empathy has high effect on customers’ satisfaction. It can be concluded that the service quality has significant effect on customer satisfaction in the bank. The bank is recommended to work hard in all quality aspects and give more personal attention to customers, understand the interest of customers, care for their customers, and give prompt service as these will result in customers’ retention, positive word of mouth and increased profitability.},
 year = {2022}
}

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TY  - JOUR
T1  - Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo
AU  - Natnael Salfore Sharecho
AU  - Devulapalli Raghava
Y1  - 2022/02/25
PY  - 2022
N1  - https://doi.org/10.11648/j.ebm.20220801.12
DO  - 10.11648/j.ebm.20220801.12
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 12
EP  - 19
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20220801.12
AB  - Nowadays, there is increased demand for higher quality services as consumers throughout the world in all sectors become more concerned with quality. Currently, quality in service is the main issue by which producers differentiate themselves from the competitor. The overall objective of this study was to investigate the effect of service quality on customers’ satisfaction in the case of Commercial Bank of Ethiopia branches in Wolaita Sodo town. For this purpose, 383 respondents were selected from target population using simple random sampling method and 22 item likert scaled SERVPERF instrument questionnaires were distributed and 344 valid responses were analyzed. The correlation analysis result indicated that there were positive and significant relationship between all service quality dimensions and customer satisfaction. Regression analysis which was performed to study the effect of service quality on customer satisfaction found that four service quality dimensions: namely, empathy, responsiveness, reliability, and assurance were positively and significantly affect customers’ satisfaction and the tangibles dimension was insignificant for analyses. Compared with other quality dimensions in SERVPERF instrument, empathy has high effect on customers’ satisfaction. It can be concluded that the service quality has significant effect on customer satisfaction in the bank. The bank is recommended to work hard in all quality aspects and give more personal attention to customers, understand the interest of customers, care for their customers, and give prompt service as these will result in customers’ retention, positive word of mouth and increased profitability.
VL  - 8
IS  - 1
ER  -

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Author Information

Natnael Salfore Sharecho

Department of Management, University of Gondar, Gondar, Ethiopia
Devulapalli Raghava

Department of Master of Business Administration, QIS College of Engineering & Technology, Andhra Pradesh, India

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Plain Text BibTeX RIS

APA Style

Natnael Salfore Sharecho, Devulapalli Raghava. (2022). Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo. European Business & Management, 8(1), 12-19. https://doi.org/10.11648/j.ebm.20220801.12

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ACS Style

Natnael Salfore Sharecho; Devulapalli Raghava. Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo. Eur. Bus. Manag. 2022, 8(1), 12-19. doi: 10.11648/j.ebm.20220801.12

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AMA Style

Natnael Salfore Sharecho, Devulapalli Raghava. Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo. Eur Bus Manag. 2022;8(1):12-19. doi: 10.11648/j.ebm.20220801.12

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@article{10.11648/j.ebm.20220801.12,
  author = {Natnael Salfore Sharecho and Devulapalli Raghava},
  title = {Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo},
  journal = {European Business & Management},
  volume = {8},
  number = {1},
  pages = {12-19},
  doi = {10.11648/j.ebm.20220801.12},
  url = {https://doi.org/10.11648/j.ebm.20220801.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20220801.12},
  abstract = {Nowadays, there is increased demand for higher quality services as consumers throughout the world in all sectors become more concerned with quality. Currently, quality in service is the main issue by which producers differentiate themselves from the competitor. The overall objective of this study was to investigate the effect of service quality on customers’ satisfaction in the case of Commercial Bank of Ethiopia branches in Wolaita Sodo town. For this purpose, 383 respondents were selected from target population using simple random sampling method and 22 item likert scaled SERVPERF instrument questionnaires were distributed and 344 valid responses were analyzed. The correlation analysis result indicated that there were positive and significant relationship between all service quality dimensions and customer satisfaction. Regression analysis which was performed to study the effect of service quality on customer satisfaction found that four service quality dimensions: namely, empathy, responsiveness, reliability, and assurance were positively and significantly affect customers’ satisfaction and the tangibles dimension was insignificant for analyses. Compared with other quality dimensions in SERVPERF instrument, empathy has high effect on customers’ satisfaction. It can be concluded that the service quality has significant effect on customer satisfaction in the bank. The bank is recommended to work hard in all quality aspects and give more personal attention to customers, understand the interest of customers, care for their customers, and give prompt service as these will result in customers’ retention, positive word of mouth and increased profitability.},
 year = {2022}
}

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TY  - JOUR
T1  - Effect of Service Quality on Customer Satisfaction in Commercial Bank of Ethiopia, Branches in Wolaita Sodo
AU  - Natnael Salfore Sharecho
AU  - Devulapalli Raghava
Y1  - 2022/02/25
PY  - 2022
N1  - https://doi.org/10.11648/j.ebm.20220801.12
DO  - 10.11648/j.ebm.20220801.12
T2  - European Business & Management
JF  - European Business & Management
JO  - European Business & Management
SP  - 12
EP  - 19
PB  - Science Publishing Group
SN  - 2575-5811
UR  - https://doi.org/10.11648/j.ebm.20220801.12
AB  - Nowadays, there is increased demand for higher quality services as consumers throughout the world in all sectors become more concerned with quality. Currently, quality in service is the main issue by which producers differentiate themselves from the competitor. The overall objective of this study was to investigate the effect of service quality on customers’ satisfaction in the case of Commercial Bank of Ethiopia branches in Wolaita Sodo town. For this purpose, 383 respondents were selected from target population using simple random sampling method and 22 item likert scaled SERVPERF instrument questionnaires were distributed and 344 valid responses were analyzed. The correlation analysis result indicated that there were positive and significant relationship between all service quality dimensions and customer satisfaction. Regression analysis which was performed to study the effect of service quality on customer satisfaction found that four service quality dimensions: namely, empathy, responsiveness, reliability, and assurance were positively and significantly affect customers’ satisfaction and the tangibles dimension was insignificant for analyses. Compared with other quality dimensions in SERVPERF instrument, empathy has high effect on customers’ satisfaction. It can be concluded that the service quality has significant effect on customer satisfaction in the bank. The bank is recommended to work hard in all quality aspects and give more personal attention to customers, understand the interest of customers, care for their customers, and give prompt service as these will result in customers’ retention, positive word of mouth and increased profitability.
VL  - 8
IS  - 1
ER  -

Copy | Download