the effect of banking service quality on customer satisfaction in case of selected commercial bank of Ethiopia in Dire Dawa district

The purpose of this study was to evaluate how banking service quality affects customer satisfaction in the Commercial Bank of Ethiopia, based on the five service quality dimensions of the SERVQUAL model in CBE Dire Dawa District Branches in Chiro Town. The study utilized a descriptive explanatory research design and stratified sampling techniques. It surveyed a total of 399 bank customers, using both primary and secondary data sources. The findings indicated that customers were moderately satisfied with the responsiveness dimensions of service quality, followed by tangibility and reliability. However, several problems were identified that hindered service delivery, including power fluctuation, network connection problems, mismatch of the number of service providers with customers, shortage of working hours, and lack of customer waiting hall. Moreover, the study found a positive and significant correlation between the service quality dimensions and customer satisfaction, with tangibility having the strongest impact. The study recommended that the bank should establish complaint handling mechanisms, provide relevant training for its front-line employees and other staff members, and enhance its service quality to meet customer expectations

Publication Details

Journal
National Academic Digital Repository of Ethiopia
Published
2025-09-29
DOI
https://doi.org/10.20372/nadre:19201
Primary Topic
Housing Market and Economics
Type
article
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article

the effect of banking service quality on customer satisfaction in case of selected commercial bank of Ethiopia in Dire Dawa district

National Academic Digital Repository of Ethiopia
Housing Market and Economics
article

the effect of banking service quality on customer satisfaction in case of selected commercial bank of Ethiopia in Dire Dawa district

article en

Abstract

The purpose of this study was to evaluate how banking service quality affects customer satisfaction in the Commercial Bank of Ethiopia, based on the five service quality dimensions of the SERVQUAL model in CBE Dire Dawa District Branches in Chiro Town. The study utilized a descriptive explanatory research design and stratified sampling techniques. It surveyed a total of 399 bank customers, using both primary and secondary data sources. The findings indicated that customers were moderately satisfied with the responsiveness dimensions of service quality, followed by tangibility and reliability. However, several problems were identified that hindered service delivery, including power fluctuation, network connection problems, mismatch of the number of service providers with customers, shortage of working hours, and lack of customer waiting hall. Moreover, the study found a positive and significant correlation between the service quality dimensions and customer satisfaction, with tangibility having the strongest impact. The study recommended that the bank should establish complaint handling mechanisms, provide relevant training for its front-line employees and other staff members, and enhance its service quality to meet customer expectations

National Academic Digital Repository of Ethiopia
Openalex Percentile: Top 34%
Housing Market and Economics
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