Handling of Customers Satisfaction and Assessment of Service Qualities on Commercial Bank of Ethiopia in Addis Ababa at East District

Authors

  • Birhanu Nitsuh Department of leadership and good governance, Civil service University, Addis Ababa, Ethiopia; Department of Chemistry, Addis Ababa University, Addis Ababa, Ethiopia
  • Mekonnen Worku Department of leadership and good governance, Civil service University, Addis Ababa, Ethiopia
  • Lake Endeshaw Department of Physics, Worabe University, Worabe, Ethiopia;Department of Space Science and Application Research and Development (SSARD), Ethiopian Space Science and Technology Institute (ESSTI), Addis Ababa University, Addis Ababa, Ethiopia

DOI:

https://doi.org/10.30564/jbar.v4i1.2360

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.

Keywords:

Commercial Bank of Ethiopia, Customer satisfaction, Service quality dimensions, SERVQUAL model

References

[1] Bethlehem tesfaye. The impact of service quality on customer satisfaction the case of commercial bank of Ethiopia. A thesis submitted to St. Mary’s university, school of graduate studies in partial fulfillment of the requirements for the degree of master of business administration, 2015.

[2] Logasvathi Murugiah, Haitham Ahmed Akgam. Study of Customer Satisfaction in the Banking Sector in Libya. Journal of Economics, Business and Management, 2015, 3(7).

[3] Azzam Mahmoud. The Impact of Service Quality Dimensions on Customer Satisfaction: A Field Study of Arab Bank in Irbid City, Jordan, European Journal of Business and Management, 2015, 7(15). www.iiste.org ISSN: 2222-1905 (Paper) ISSN: 2222-2839 (Online).

[4] Saghier, Nathan. Service Quality Dimensions and Customers’ Satisfactions of Banks in Egypt. Proceedings of 20th International Business Research Conference 4 - 5 April 2013, Dubai, UAE, 2013. ISBN: 978-1-922069-22-1

[5] Parasuraman, A. Berry, L., Zeithaml, V.A. A Conceptual Model of Service Quality and its Implication for Future Research.Journal of Marketing, 1985, 49(4): 41-50.

[6] Parasuraman, A., Zeithaml, V. A., Berry, L. SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing, 1988, 64(spring): 12-40.

[7] Cronin Jr, J. J., Taylor, S. A. Measuring service quality: a reexamination and extension. The journal of marketing, 1992: 55-68.

[8] Bahia, K., Nantel, J. A reliable and valid measurement scale for the perceived service quality of banks. International journal of bank marketing, 2000, 18(2): 84-91.

[9] Tsoukatos, E., Mastrojianni, E. Key Determinants of Service Quality in Retail Banking. EuroMed Journal of Business, 2010, 5(1): 85-100.

[10] Hennayake, H. M. G. Y. J. Impact of Service Quality on Customer Satisfaction of Public Sector Commercial Banks: A Study on Rural Economic Context. International Journal of Scientific and Research Publications, 2017, 7(2): 156-161.Jay

[11] Quyet Van, T., Vinh, N. Q., Chang, T. Service quality effects on customer satisfaction in banking industry. International Journal of u-and e-Service, Science and Technology, 2015, 8(8): 199-206.

[12] Meron Melaku. Impact of Service Quality on Customer Satisfaction: The Case of Bank of Abyssinia S.C. A Research Project Submitted to the College of Business and Economics of Addis Ababa University in partial fulfillment of the requirement for the Degree of Executive Master of Business Administration (EMBA), 2015.

[13] Heizer, Barry Render, Chuck Munson. Operations Management-Sustainability and Supply Chain Management (12th Edition), India-Pearson education, 2017.

[14] Bitner, M. J., Hubbert, A. R. Encounter satisfaction versus overall satisfaction versus quality. Service quality: New directions in theory and practice, 1994, 34: 72-94.

[15] Culiberg, B., Rojšek, I. Identifying service quality dimensions as antecedents to customer satisfaction in retail banking. Economic and business review, 2010, 12(3): 151-166.

[16] Lovelock, C. Services marketing: People, technology, strategy. Pearson Education India, 2011.

[17] Dejene Girma. The effect of service quality on customer satisfaction: the case of Dashen Bank SC, 2017.

[18] Ladhari, R. A review of twenty years of SERVQUAL research. International Journal of Marketing Literature”, Journal of Retailing, 2009, 69(1): 61-103.

[19] Negi, R. Determining customer satisfaction through perceived service quality: A study of Ethiopian mobile users. International Journal of Mobile Marketing, 2009, 4(1): 31-38.

[20] Crosby, L. A., Evans, K. R., Cowles, D. Relationship quality in services selling: an interpersonal influence perspective. The journal of marketing, 1990: 68-81.

[21] Gronroos, C. A Service Quality Model and Its Marketing Implications. European Journal of Marketing, 1984, 18(4): 36-44.

[22] Yemane, Taro. Statistics, An introductory Analysis, 2nd Ed., New York: Harper and Row, 1967.

[23] Endalkachew Abebe. Assessing the impact of Core Banking and service quality on Customer Satisfaction in Commercial Bank of Ethiopia (A case of Bishofftu Branch). A research project submitted in partial fulfillment of the requirement for masters of business administration degree in marketing Management, 2013.

[24] Siddiqi, Kazi, O. Interrelations between Service Qualities Attributes, Customer Satisfaction and Customer Loyalty in the Retail Banking Sector in Bangladesh. International Journal of Business and Management, 2011, 6(3).

[25] Girma Bersisa. Assessment of service quality and its influence on customer satisfaction: the case of Oromia International Bank SC. A research project submitted in partial fulfilment of the requirement for the award of degree of executive masters of business administration (EMBA), 2015.

[26] Daniel, O. Service quality, Satisfaction, Perceived value and Loyalty among customers in Commercial Banking in Nakuru Municipality, Kenya, African Journal of Marketing Management, 2012, 4(5): 185- 203.

[27] Babbie, R. The Practice of Social Research (13th Edition). Wadsworth Publishing Company, 2013.

[28] Rubogorafelix. service quality and customer satisfaction in selected banks in Rwanda. Journal of business & financial affairs,felix, j bus fin aff, 2017, 6: 1. https://doi.org/ 10.4172/2167-0234.1000246.

[29] Babakus, E., Boller, G. W. An empirical assessment of the SERVQUAL scale. Journal of Business research, 1992, 24(3): 253-268.

[30] Bolton, R. N., Drew, J. H. A multistage model of customers’ assessments of service quality and value. Journal of consumer research, 1991, 17(4): 375- 384.

[31] Zeithaml V.A., Berry L.L. Problems and Strategies in Services Marketing. Journal of Marketing, 1985, 49: 33-46.

[32] Oliver, C. Sustainable Competitive Advantage: Combining Institutional and Resource-based Views. Strategic Management Journal, 1997, 18(9): 697-713.

Downloads

Issue

Vol. 4 , Iss. 1 (January 2021)

Article Type

Articles

License

Copyright and Licensing

The authors shall retain the copyright of their work but allow the Publisher to publish, copy, distribute, and convey the work.

Journal of Business Administration Research publishes accepted manuscripts under Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). Authors who submit their papers for publication by Journal of Business Administration Research agree to have the CC BY-NC 4.0 license applied to their work, and that anyone is allowed to reuse the article or part of it free of charge for non-commercial use. As long as you follow the license terms and original source is properly cited, anyone may copy, redistribute the material in any medium or format, remix, transform, and build upon the material.

License Policy for Reuse of Third-Party Materials

If a manuscript submitted to the journal contains the materials which are held in copyright by a third-party, authors are responsible for obtaining permissions from the copyright holder to reuse or republish any previously published figures, illustrations, charts, tables, photographs, and text excerpts, etc. When submitting a manuscript, official written proof of permission must be provided and clearly stated in the cover letter.
The editorial office of the journal has the right to reject/retract articles that reuse third-party materials without permission.

Journal Policies on Data Sharing

We encourage authors to share articles published in our journal to other data platforms, but only if it is noted that it has been published in this journal.