Volume 28, Issue 1, December 2016, Pages 51–65
Abiot Tsegaye Kibret1 and Gemechu Nemera Dinber2
1 Department of Management, College of Business and Economics, Arbaminch University, Ethiopia
2 Department of Management, College of Business and Economics, Arbaminch University, Ethiopia
Original language: English
Copyright © 2016 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Healthiness of financial system of a country depends on the success and competitiveness of financial institutions. The success and competitiveness of financial institutions are primarily realized through banks service quality, customer satisfaction and customer loyalty. Cognizant to these facts, this research was conducted to evaluate service quality, customer satisfaction and customer loyalty of commercial banks in Ethiopia. Two hundred three customers were surveyed with purposive sampling from selected commercial banks in major cities in the country. Further, the study explored the relationship among service quality, customer satisfaction and customer loyalty in Ethiopian Banking industry. The study revealed that customers are not satisfied with all dimensions of service quality of commercial banks in Ethiopia, and customers are not loyal to the banks. The study, further, confirmed that service quality, customer satisfaction and loyalty were found to be significantly correlated. Moreover, the study disclosed the existence of significant difference between private banks and public banks for the variables mentioned. The study recommends that banks in general and commercial bank of Ethiopia in particular have to improve the tangibility, reliability, responsiveness, assurance and empathy dimension of service quality in order to satisfy customers and hence to make customers loyal to banks.
Author Keywords: service quality, customer satisfaction, customer loyalty, commercial banks, SERVQUAL.
Abiot Tsegaye Kibret1 and Gemechu Nemera Dinber2
1 Department of Management, College of Business and Economics, Arbaminch University, Ethiopia
2 Department of Management, College of Business and Economics, Arbaminch University, Ethiopia
Original language: English
Copyright © 2016 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
Healthiness of financial system of a country depends on the success and competitiveness of financial institutions. The success and competitiveness of financial institutions are primarily realized through banks service quality, customer satisfaction and customer loyalty. Cognizant to these facts, this research was conducted to evaluate service quality, customer satisfaction and customer loyalty of commercial banks in Ethiopia. Two hundred three customers were surveyed with purposive sampling from selected commercial banks in major cities in the country. Further, the study explored the relationship among service quality, customer satisfaction and customer loyalty in Ethiopian Banking industry. The study revealed that customers are not satisfied with all dimensions of service quality of commercial banks in Ethiopia, and customers are not loyal to the banks. The study, further, confirmed that service quality, customer satisfaction and loyalty were found to be significantly correlated. Moreover, the study disclosed the existence of significant difference between private banks and public banks for the variables mentioned. The study recommends that banks in general and commercial bank of Ethiopia in particular have to improve the tangibility, reliability, responsiveness, assurance and empathy dimension of service quality in order to satisfy customers and hence to make customers loyal to banks.
Author Keywords: service quality, customer satisfaction, customer loyalty, commercial banks, SERVQUAL.
How to Cite this Article
Abiot Tsegaye Kibret and Gemechu Nemera Dinber, “Service quality, Customer Satisfaction and Loyalty of Commercial Banks in Ethiopia,” International Journal of Innovation and Scientific Research, vol. 28, no. 1, pp. 51–65, December 2016.
