Banks Service Quality And Customer Satisfaction A Comparative Study Between Public And Private Banks A Case Of Commercial Bank Of Ethiopia And Awash International Bank S.co

As the competitive environment become more turbulent in the banking industry, there is thernneed to provide quality service and ensure customer satisfaction, in order to enjoy highrnmarket share and competitive advantage. The study therefore was conducted to assess andrncompare service quality and overall customer satisfaction in the banking industry, takingrnCommercial Bank of Ethiopia and Awash International Bank s.co as target study area. Thernmain objective of this study was to assess and compare customer expectations andrnperceptions and overall customer satisfaction towards CBE and AIB S.co using fiverndimensions of service quality: tangibility, reliability, responsiveness, assurance, and empathyrnand a single item was used to measure overall satisfaction. Questionnaires were distributedrnto 384(192for each bank) customers of the two banks. The target population was contactedrnconveniently to the researcher that was found available. The primary data was collectedrnusing self administered questionnaire through survey method. To analyze the objectives,rndescriptive statistics, Pearson correlation and paired sample t-test was employed. The resultsrnrevealed that assurance dimension raised the highest level of perception in CBE and in AIBrnS.co and responsiveness has the highest gap score while tangibility has the lowest gap scorernin both banks. Moreover the entire service quality dimensions have a strong and positivelyrncorrelated with overall satisfaction. In addition, the finding of paired sample t-test shows thatrnthere is a significant difference in perception of customers’ of CBE and AIB S.Co. Tornconclude, based on the mean perception of SERVQUAL dimension Awash International BankrnS.co provides better service quality comparing to Commercial Bank of Ethiopia exceptrntangibility dimension which is high in CBE. Gaps of AIB S.co are rather smaller than therngaps of CBE which are a proof that AIB S.co delivers more quality service to the customer.rnThis is simply because; the quality of service in CBE is so much below the expectations. Thernstudy suggests that SERVQUAL model is appropriate in the banking sector. Hence, managersrnof the two banks can use this instrument to provide better quality services to their customers.

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