| Abstract: | The major aim of the study was to examine the effect of electronic banking service quality on
customer loyalty on commercial Banks in Ethiopia. Moreover, the study tries to investigate the
relationship between dimensions of service quality and customer loyalty. Bank service quality
(BSQ) model of (Parasuraman, Zeithaml et al. 1988) was used to evaluate overall level of service
quality and its effect on customer loyalty. The model had five factors; reliability, responsiveness,
empathy, Tangibles, and assurance. Descriptive and explanatory research approaches were used.
Eight branch banks of commercial bank of Ethiopia were selected randomly and 394
questionnaires were administered to customers of selected branch banks using conveniencesampling
method and 394 responses were analyzed in to SPSS version 27. The correlation result
indicated that there is a positive and significant relationship between all BSQ dimensions and
customer loyalty. All independent variables have a significant effect on customer loyalty except
Assurance has a positive but insignificant effect on customer loyalty and empathy has a negative
but insignificant effect on customer loyalty. Considering the results of these finding, the researcher
has given recommendations that CBE needs to seek changes to remain competitive in the industry
through enhancing customer satisfaction and loyalty and should focus on improving service quality
all the areas which requires integrated and collaborative approach with all stakeholders. |
