Abstract

Banking sector in Ethiopia is dominant and it is a dense competent area. Due to this the bank managements tend to continually found the strategies that enables them to be competent in this dense competition. These strategies often focus on handling of customers satisfaction to be strongly compete and pooling more customers. Because, service quality is relevant to keep up their competitive advantage and improve customer satisfaction. So, this study examine the handling of customers satisfaction and assessment of service qualities on Commercial Bank of Ethiopia (CBE) in Addis Ababa at East District by applying SERVQUAL model. This study used convenient and random sampling technique to select the sample respondents and 400 respondents were selected branches of CBE in Addis Ababa at east district. The data sources for this study are primary and secondary data sources. The questionnaires are used as primary data source, which are contained SERVQUAL model and the agreements were measured by applying the five Likert point scales. The correlation result revealed that all dimensions of service quality have a strong and significant statistical relationship with customer satisfaction. The quality of service offered by CBE no meets with the expectation of customer (customers satisfied in somewhat quality service). So, the bank needs to reform service quality for satisfy and attract unsatisfied customers.

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