THE EFFECT OF PRODUCT INNOVATION ON CUSTOMER SATISIFACTION (A CASE OF COMMERCIAL BANK OF ETHIOPIA IN HOSSANA TOWN)

ABSTRACT The purpose of this research was to investigate how a case study of product innovation impacts customers of the commercial bank of Ethiopia in the town of Hosanna. The research examines the impact of product, marketing, service, technological, and process innovations on customer satisfaction at CBE. Five research hypotheses are developed in the literature review. Specifically, the study looked at how product innovation impacts customer satisfaction across five dimensions: product, marketing, service, technological, and process innovation. Both quantitative designs with descriptive and explanatory approaches were utilized. 380 customers from 10 branches of CBE supervised under hosanna town completed a five point scale self-administered questionnaire to collect data. Once all necessary statistical assumptions were verified, the data was examined using descriptive and inferential statistical methods with the assistance of SPSS 20. The findings also indicate that three aspects of banking innovation - product, marketing, and technological innovation - positively impact customer satisfaction. Conversely, service innovation is shown to have a negative impact on customer satisfaction, while process innovation is determined to have no significant effect. In conclusion, it is suggested that CBE management focusing on enhancing customer satisfaction should allocate a majority of the company's resources towards product innovation, marketing innovation, and technological innovation.