THE EFFECT OF E-BANKING SERVICE QUALITY ON CUSTOMER SATISFACTION THE CASE OF ABYSSINIA BANKS IN DESSIE DISTRICT

ABSTRACT <em>The necessity to remain competitive within a fast-changing environment in the service industry, especially within the banking sector is a priory task to keep existing consumers happy and attract new customers by introducing and improving new goods and services. Consequently, the study aimed to assess the effects of E-banking service quality on customer satisfaction in the case of selected Abyssinia banks operating in dessie district. The study adopted quantitative research approaches. Convenient sampling technique was employed to select the sample size 388 customers. A structured self-administered questionnaire were implemented and validated for data collection. The response rate from the 388 copies of the questionnaire administered was 87.47% Data were analyzed using descriptive and inferential (Pearson Product Moment Correlation and multiple linear regression) statistics. The study established that Reliability, Service content, Ease to use, Transaction Efficiency, Service security and Customer support positively and significantly influence customer retention. E-banking service quality was found to be a good indicator of improving customer satisfaction among the selected Abyssinia banks in dessie district. This means that there is a need to invest resources in E-banking for the banks to effectively attract loyal customers in the bank. From the study, it is recommended that firms using the </em>service quality dimensions; <em>Ease to use, Transaction efficiency, Reliability, Service security and Service content have strong influence on e- banking user’s satisfaction level.. In order to sustain a reliable service for such technology, commercial bank of Ethiopia should work with government bodies (Ethio-Telecom and Ethiopian Electric Power). They also need to developed skills and knowledge of customers in using e-banking service.</em>