Quality of Customer Service and Customer Satisfaction: In the Case of Commercial Bank of Ethiopia

Abstract

This study aims to examine the relationship between the quality of customer service and customer satisfaction in CBE. The study employed a quantitative research methodology, using a survey questionnaire to collect data from CBE customers. The survey was distributed to CBE customers in all areas of banking services. The sample size was 200 CBE customers. The data was analyzed using SPSS software. The findings of the study revealed a positive relationship between the quality of customer service and customer satisfaction in CBE. All five dimensions of service quality had a positive impact on customer satisfaction, but reliability and responsiveness had the strongest impact. The study also found that there were significant differences in the quality of customer service and customer satisfaction across different areas of banking services. Retail banking customers had the highest levels of customer satisfaction, followed by corporate banking customers and a small or medium-sized enterprise (SME) banking customers, who have a wide range of financial needs. The findings of this study have a number of implications for CBE. First, the findings suggest that CBE should focus on improving the quality of its customer service in all areas of banking services. This can be done by improving the five dimensions of service quality: tangibles, reliability, responsiveness, assurance, and empathy. Most importantly, the findings suggest that CBE should pay particular attention to the dimensions of reliability and responsiveness. These two dimensions had the strongest impact on customer satisfaction, so improving them would likely lead to a significant increase in customer satisfaction.