The Effect of Service Quality on Customer Satisfaction: A Case Study on Selected Private Banks in Bahir Dar; Ethiopia

Abstract

The purpose of this study is to measure the service quality and its subsequent effect on customer satisfaction at Private Bank using a model that describes various dimensions of service quality. To this purpose the researcher has studied the service quality of private banks using SERVQUAL model. Convenience sampling technique was used in the study to take a sample from the infinite population. A total sample of 350 respondents who have Banking service were taken as a respondent. The relevant data was gathered using questionnaire which was designed based on the model to examine all the five factors of service quality in the model for bank industry. It was found that clients of are not satisfied with  assurance, reliability and empathy and they are satisfied with tangibles and responsiveness. It  was recommended that managers should train their  employees so as to improve visually attractive facilities and coordinate all people, departments and organizations involved with the services. Finally, managers at should measure clients’ satisfaction and service quality seasonally to keep the services corresponded with customers’ opinions.

Keywords: Service quality, Service quality dimension/Tangibility, Assurance, Reliability, Empathy, Responsiveness and Customer satisfaction