Abstract
The importance of service quality for any business performance has been recognized in the literature through the direct impact on customer satisfaction. The paper studied the effect of service quality on customer satisfaction in commercial Bank of Ethiopia Adama city. SERVPERF model by Cronin and Taylor’s (1992) is used to identify the effect and the relationship. Quantitative means of data collection method is employed to collect the data through questionnaire. This study used descriptive and causal research design and both primary and secondary data. The sample consists of 398 respondents selected based on convenience sampling procedure. The collected data was analyzed with the help of SPSS version 20.Correlation and multiple regressions were used to investigate the relationship between dependent and independent variables. The finding of this study indicates that customers were most satisfied with the assurance dimensions of service quality and dissatisfied with network quality dimension. The findings of the study also indicated that there are positive and significant relationships between seven service quality dimensions and customer’s satisfaction. And also except responsiveness all service quality dimensions have positive and significant effect on customer satisfaction. Furthermore, 72.8% of the variation in customer satisfaction is explained by service quality dimensions in commercial bank of Ethiopia Adama city. The study recommends that the bank should improve the service quality dimensions especially network quality, responsiveness, empathy and security in order to satisfy customers. Keywords: Service quality, Customer satisfaction, SERVPERF model DOI : 10.7176/JMCR/58-01 Publication date :July 31 st 2019
Highlights
Nowadays, with the increased competition, service quality has become a popular area of academic research and has been acknowledged as an observant competitive advantage and supporting satisfying relationships with customers (Zeithmal, 2000).Service quality aroused substantial interest and argues in research
The findings show that Cronbach alpha for all dimensions of service quality are above 0.70 which indicates a high level of internal consistency for all items
Tangibility is found to have the highest correlation with customer satisfaction while the lowest relationship was found between network quality and customer satisfaction and the findings from the inter correlation indicates that the highest relationship is found between tangibility and responsiveness
Summary
With the increased competition, service quality has become a popular area of academic research and has been acknowledged as an observant competitive advantage and supporting satisfying relationships with customers (Zeithmal, 2000).Service quality aroused substantial interest and argues in research. The survival of any business organization depends on the satisfaction of its stakeholders or customers since customers being the major and critical ones among those stakeholders. They are the sources of profit for profit making organization and the primary reason for being in operation for any non- profit making organization. Jayaraman et al, (2010) define it as the customer’s overall impression and cognitive judgment of the relative inferiority or superiority of the organization and its services or as the difference between customer expectations for the service and their perceptions of the service received
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