The Impact Of Service Quality On Customer Satisfaction The Case Of Development Bank Of Ethiopia

The main purpose of the study was to examine the effect of service quality on customer satisfaction in the Development Bank of Ethiopia. The study was conducted on manufacturing industries which are users of loan service of Development Bank of Ethiopia. Survey was made to gather primary data from 83 manufacturing industries selected using stratified random sampling method. Structured questionnaire SERVPERF model was used to evaluate customers’ perception of service quality and customer satisfaction. The result of this study indicated that customers were satisfied with the assurance dimensions of service quality followed by empathy, responsiveness and reliability while they were less satisfied with tangibles dimension. The finding also indicated that all service quality dimensions (tangibles, reliability, responsiveness, assurance and empathy) have positive and significant effect on customer satisfaction. Among these dimensions empathy is the most important factor which influences overall customer satisfaction. Moreover 76.3% of the variations in customer satisfaction in Development Bank of Ethiopia could be explained by the five dimensions of service quality. Hence the management of the DBE should devote considerable effort on its service quality in order to enhance the level of customer satisfaction

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