The Effect of Service Quality on Customer Satisfaction in Selected Private Banks (In Case of Wolaita Sodo Town)

Abstract

In the competitive market, banks in both public and private sectors apply different strategies to improve the quality of their services provided. However, there is a lack of recent evidence to show how the quality of these services affects customer satisfaction, leaving a significant fleabag in Ethiopian literature. Therefore, this study attempted to explore the effect of service quality of private banks on customer satisfaction. Data were collected through questionnaire from a sample of 360 bank customer. The respondents were selected using simple random sampling method. The data collected from the questionnaire were analyzed using Statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. The finding of this study also indicates that customers were most satisfied with the assurance dimensions of service quality. On the contrary, customers were less satisfied with reliability and empathy dimensions of service quality. The results also indicate that unlike responsiveness the four service quality dimensions (tangibility, empathy, assurance and reliability) have positive and significant effect on customer satisfaction.

Keywords: Customer Satisfaction, Service Quality,

DOI: 10.7176/EJBM/11-19-03

Publication date:July 31^st 2019