The Determinants of Customer Satisfaction: The Case of Dashen Bank and Wegagen Bank, Hawassa Branch

Abstract

The focus on customer satisfaction in banking industry is becoming extremely prevalent as it is being employed to keep existing customers from switching to other banks and to sell them more services, and to attract customers from non-banking community and competitors. The objective of the study is to investigate the determinants of customer satisfaction and to examine the effects of service quality, IT-based service options, developing stronger relationship with customers, and corporate image on customer satisfaction. Primary data was collected from 200 respondents that were selected from customers of Dashen and Wegagen Bank, Hawassa branch. The respondents were selected from saving account holders, current account holders, and ATMs card holders of two banks through quota sampling techniques. In addition, relevant ideas were collected from secondary sources for comparison of professional and accurate business transaction with services of banks. To determine the relationship between dependent and independent variables Pearson chi square test was applied. To compare Dashen and Wegagen banks in terms of service delivery two-sample mean comparison test was used. In addition, to determine the relative importance of variables the econometrics model known as logistic regression model was used. The results of the study reveals that having employees who give customers personal attention, having customers’ best interest at heart, owning employees who understand customers specific needs, creating stable relationship customers, and possessing excellent quality of management, are the variables that are statistically significant and have influence on customer satisfaction.

Keywords: customer satisfaction, service quality, IT-based service, corporate image

DOI: 10.7176/JMCR/92-04

Publication date: January 31^st 2024