ASSESSMENT OF SERVICE QUALITY AND ITS EFFECT ON

CUSTOMER SATISFACTION IN CASE COMMERCIAL BANK OF

ETHIOPIA DIRE DAWA DECHATU BRANCH

RESEARCH PAPER SUBMITTED TO DEPARTMENT OF LOGISTICS AND SUPPLY

CHAIN MANAGEMENT FOR PARTIAL FULFILLMENT OF REQUIREMENT OF
BACHELOR ART DEGREE IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT

BY: YUSUF TUNA

ADVISOR: ZERAH WOLDE

DIRE DAWA UNIVERSITY

SCHOOL OF BUSSINESS AND ECONOMICS

DEPARTEMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

DIRE DAWA

ETHIOPIA

JUNE, 2015
ACKNOWLGDEMENT

Firstly I would like to thanks ALLAH the almighty God creators and sustainers of the
heaven and the absolute to whom alone all worship is due.

Next, I would like

to express my sincere appreciation and gratitude to my Advisor Zerah .W for his

encouragement and valuable guidance in my engine senior essay as well as my deepest
love appreciation and gratitude go to my family for their financial and moral support and
irreplaceable advice.

My third gratitude goes to my dear friends for giving me motivation while

I was in my work.

The last but not the least, I would like to thank the department of logistics and supply chain
management head office and commercial bank of Ethiopia Dire Dawa dechatu branch
manager for their support in time of my work.
Abstract

This study focus on the assessment of service quality and its effects on customer
satisfaction in case of commercial bank of Ethiopia Dire Dawa dechatu branch, the
objective of the study is to assess service quality and its effects on customer satisfaction.
These research conducted by using primary source like interview and both open-ended and
close-ended questionnaires because it uses to provide the desired first hand information
and secondary data collected from the existing literature formed the literature review of the
study i.e. books journal, article obtained from the internet and the bank’s documents, in
addition to this the study used simple random sampling method and analyzed data by using
percentage and presented by via tabulation. The characteristics of the respondents such as,
age, sex, and educational status have been analyzed using percentage to see the proportion
of customers and employees in each characteristic.

Finally: some idea was forwarded as conclusions and recommendations

 Chapter One

Table of contents

Contents Pages

Chapter One

1. Introduction ------------------------------------------------------------------
1.1 Background of the study -----------------------------------------------
1.2 Background of the organization --------------------------------------
1.3 Statement of the problem ----------------------------------------------
1.4 Research questions ------------------------------------------------------
1.5 Objective of the study ---------------------------------------------------
1.5.1 General objective ------------------------------------------------
1.5.2 Specific objectives ----------------------------------------------
1.6 Significance of the study ------------------------------------------------
1.7 Scope of the study --------------------------------------------------------
1.8 Limitation of the study --------------------------------------------------

CHAPTER TWO……………………………………………………

2. LITERATURE REVIEW………………………………………..
2.1 Concept of quality…………………………………………….
2.2 Description of service…………………………………………
2.3 Service quality………………………………………………..
2.4 Types of service……………………………………………..
2.5 Characteristics of service………………………………………
2.6 Customer service………………………………………………..
2.7 Service marketing mix………………………………………….
2.8 Evaluating service quality……………………………………………….
2.9 Ensuring service quality and retention………………………………..
 2.9.1 Customer satisfaction………………………………………….
2.9.2 Customer retention…………………………………………..

2.10tracking customer satisfaction……………………………………..

2.10.1types of measuring customer tracking………………………..

2.11measuring customer satisfaction………………………………………

2.11.1 Need for measuring customer satisfaction……………………………

2.11.2 Method of measuring customer satisfaction………………………

2.12 customer handling………………………………………………………………

2.12.1 Types of customer handling…………………………………………

2.13 total quality management…………………………………………………….

2.13.1 Element of total quality management…………………………………………………

CHAPTER THREE
3 RESEARCH DESIGN AND METHEDOLOGY

3.1 Reseaerch Design............................................................................................

3.2type and source of data…………………………………………………………………………………

3.3sampling techniques and sampling size……………………………………………………………

3.4methods of data collection……………………………………………………………………………

3.5method of data analysis………………………………………………………………………………

CHAPTER FOUR
4. DATAANALYSISANDPRESENTATION........................................................................

CHAPTER FIVE
5 .SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary…………………………………………………………………………………………………………

5.2 conclusion………………………………………………………………………………………………………

5.3 Recommendation………………………………………………………………………………………………..

APPENDIX

REFERENCES

CHAPTER ONE

1.Introduction

1.2 Background of the study

According to (Clow and curtz, 1998) defined service quality is a comparison of expectation
with the performance. It is becoming more crucial for banks in the banking sector to get
loyal customers, provision of high service quality is necessary in meeting several
requirement such as customer satisfaction and its consequent loyalty, attracting
newcustomers and to increase the market share and profitability (Anderson and Fornell,
1994, p: 236 - 238). While Eshghi etal (2008) defined service quality is the overall
assessment of a service by the customers. The concept of service quality originates from
consumer behavior and confirmation or disconfirmation paradigm (Gron Roos, 1992). The
paradigm postulates that customers compare the quality of the product after usage to their
expectation before usage (Swan and Comb 1976) and indicates their satisfactions or
dissatisfaction with the product or service purchased (Woodrupt al, 1983).

Customer satisfaction is a term frequently used in marketing. It is a measure of how

products and service supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as “the number of customers or percentage of total
customers, whose reported experience with a firm, its products, or its service (ratings)
exceeds specified satisfaction goals. Literature establishes that customer satisfaction is a
key to long term business success (Zelthami etal …, 1996).

The study has investigated how service quality affects customers’ retention and
satisfaction.Customer retention is a dependent variable which occurs when the service
provided by company is rated by customers as high quality and satisfactory. The
studypostulates that the quality of the service provided by commercial bank of Ethiopia
determines the retention rate of the customers with the bank. Accordingly CBE canensure
customer retention when its service performance exceeds customers’ expectations.

1.2Background of the organization

The commercial bank of Ethiopia is recognized as the largest bank in the country. It’s the
first bank to source automatic teller machine (ATM) service for its customers and it’s the
first bank to source western union money transfer in the customers and it’s the first bank to
source western union money transfer in the country (WWW.com.bank.et.com). The CBE
has been playing a great role in the economy development of the country for a long time,
today more than ever before, the CBE has aggressively expanded its presence in all
direction of the country. Despite the flourishing of private commercial banks, the CBE has
remained in the leading position in terms of assets, capital and customer base and branch
network (WWW.com.bank.et.com).
1.3 Statement of the problem

The trade liberalization and globalization have resulted in keen competition among firms
and industries. The Ethiopian banking industries is not exempted especially with the
proliferation of banking and financial institution in the country. With the availability of
goods and services organizations need proactive strategies. The absence of which can lead
to a study decline of market share (collier, 2006). Researchers recommend making service
quality is a cornerstone of an organizations marketing strategy in order to ensure successful
business (Asubonteng et al. 1996; Collier, 1991).

Customer have become knowledgeable and this gradually led to a greater degree of
“customer sovereignty” (Blanchard and Galloway, 1994). When making a choice,
customer’s choice of bank over another is based on several factors such as the locations,
interest rates, quality is seen as one of the key factor and thus has received considerable
attention by organizations. Stafford (1996) opines that the financial services, particularly
banks, compete in the market place with generally undifferentiated products, therefore
service quality becomes a primary competitive weapon, the banking industry is highly
competitive; banks do not only compete among each other: but also with non bank and
other financial institutions both local and foreign (Keynak and Kucukemiroglu, 1992; Hull,
2002).

In the quest to improve its services, retain and attract customers, commercial bank of
Ethiopia has introduced innovative measures like ATM Network, internet banking, express
money, western union, money gram, Dahbshil and money transfer … etc. are outstanding
efforts which aim at bringing satisfaction to the customers.

The emerging situation calls for the assessment of service quality is relation to customer
expectation and service performance to help commercial bank of Ethiopia to improve its
service quality and its effects on customer satisfaction as to ensure customer satisfaction.

The things that motivate me to investigate on the assessment of service quality and its
effect on customer satisfaction is to know and identify whether CBE is providing quality
service and satisfying its customers to the level of their expectation; in an open competition
environment of financials industry. Therefore this study tries to assess customers’
satisfaction toward the services provided by commercial bank of Ethiopia dechatu branch.

1.4 Research questions

This study has the following basic questions in addressing the research problem.

 What are the means to attract new customers?

 What is the relationship between quality service delivery and customer
retention?
 Does the service quality have any effect on customer satisfaction?
 What is the base for the customers to choose one bank over another?

1.5 Objective of the study

1.5.1 General objective

The main objective of the study is assessingservice quality and its effect on customer
satisfaction in case commercial bank of Ethiopia Dire Dawa Dechatu branch

1.5.2 Specific objectives

 Assessing the means of attractionof the new customers

 Investigating the relationship between quality service delivery and customer
retention
 To assess the effect of service quality on customer satisfaction
 To identify the factors that influence the customers to choose one bank over the
another

1.6 Significance of the study

This study is intended to uncover problem related with quality service and its effects on
customer satisfaction in commercial bank of Ethiopia, Dire Dawa Dechatu Branch,
conducting this study has paramount importance to various stakeholders. Commercial bank
of Ethiopia and other similar financial institutions can get certain input from the findings
and recommendations of this study. In addition the customers of the bank can as well get
useful information about the service quality of the commercial bank dechatu branch. Above
all the study well informs the Dchatu branch management team to reconsider how they are
providing services to the customers and thus calls them to improve their service quality and
as well to sustain their strength to successfully satisfy their customers and retain them
forever. Further any interested individual who makes research in the similar area can use
the findings of this study as an input and thus it can pave the way for other endeavor
researchers to conduct further and deep investigations in the area under discussion.

1.7 Scope of the study

This paper was restricted to assessment of service quality and its effect on customer
satisfaction in case of commercial bank of Ethiopia Dire Dawa Dechatu branch alone due
various reasons, such as time and financial constraints. Further the study specifically
focuses on examining factors affecting customer satisfaction and how commercial bank
dechatu branch is treating its customers to retain them as constant and loyal clients.

1.8 limitation of the study

Shortage of necessary resources to conduct this study in great detail and the reluctance
from the sides of the employees of the bank in supporting the researcher in filling the
questionnaire can be considered as challenge not to easily conduct this study. Further the
busyness of the sampled customers of the bank while filling the questionnaire and
understanding it correctly and the faced difficulty to contact them again to collect the
distributed questionnaire was really difficulties that made to leave some of the
questionnaires unreturned.
CHAPTER TWO

2. LITERATURE REVIEW

The review focus on the overview of concept of quality, concept of service, service quality,
customer satisfaction, and the role of service quality in ensuring customer satisfaction and
retention, measuring customer satisfaction and method of measuring customer satisfaction

2.1 Concept of quality

The word “quality” is frequently used to describe products and /or service. It cannot
different meaning to different people and organizations, and therefore lacks universal
definition.

2.2 Description of service

Bateson and Hoffuan (1999) define service as deeds, efforts or performance whilst Regan
(1963) see service as activities, benefits or satisfactions offered for sale or provided in
connection with the sale of goods. Hehizer and Render (1999) describe services as “those
economic activities that typically produce an intangible product such as education,
entertainment, food and lodging, transportation, insurance, trade, government, financial,
real estate, medical repair and maintenance like occupation.” Johns (1999) adds that service
could mean an industry, a performance, an output or offering or a process. As compared to
manufactured products, services are less tangible and less measurable. Service
organizations have a significant proportion of their employees in direct contact with their
external customers. Customers on the other hand view service as an experience of life
which consists of element of core need, choice and emotional content (Johns 1999). These
service elements are present in different service output and encounters and affects each
individuals experience differently. The factors critical to services include value (benefit at
the expense of cost), service quality and interaction.
2.3 Service quality

Service quality is a concept that has aroused considerable interest and debate in research.
There are difficulties defining and measuring it with no overall consensus emerging on
either (Wisie wski, 2001). While Eshghi et al. (2008) defined service quality as the overall
assessment of a service by the customers. Asubouteg et al. (1996) and Wisnie Wski and
Donnely (1996) it has the extent to which a service meets customers needs or expectations.
Service is said to be quality when it consistently conforms to customer expectation.
Parasuraman et al. (1985) argues that service quality is the measure of service delivered as
against expected service performance. According to Parasuraman et al (1988) defines
service quality as difference between customer expectation of service and customers
perception of actual service.

2.3.1 Types of services

Schmenner (1986 cited in Fitzsimmous and Fitzsimmous, 2001) develops a service

processes matrix and categories service along two dimensions that significantly affect the
character of the service delivery process. The vertical dimension measures the degree of
labor intensity, which is defined as the ratio of labor cost to capital cost while the
horizontal dimension measures the degree of customer interaction and customization,
which is a marketing variable that describes the ability of the customer to affect personally
the nature of the service delivered. The matrix indicates four types of services labeled as
service factory, mass service, service shop and professional service

2.3.2 Characteristics of services

2.3.2.1 Characteristics of service are represented as follows:

 Intangibility:- intangibility refers to the aspect not associated with any physical
form or physical characteristics. It’s very much pronounced in the pure service
elements like, the lecture given by a professional in various other service like a
hotel, fast forward outlay, the quality, intangibility makes difficult to
communicate and display exactly what the product is it often not possible to
 take, see, hear or smell service before they are purchased (Alazar A. 2006, pp.
117)
 Inseparability:- this refers to the fact that production and consumption of the
service are too closely like to be separately. In term, the complication of this are
that the customers personnel is in cost case necessary at time of production and
is often involved at the same time (Alazar A. 2006, pp. 117)
 Heterogeneity:- because they depend on who provide them when, where they
can provide service are highly variable service buyers before selecting the
service providers. Service firms can take 3 steps towards quality control:- the
first inventory in good hiring and training producers, the second standardizing
the service performance process and the third monitoring customer satisfaction
through suggestion and complicate system (Alazar A. 2006, pp. 118)
 Perish ability:- service cannot be stored i.e. service cannot exist before and
after that actual performance perishes ability described several strategies for
producing a better much between demand and supply in service business. Some
of them
- Per time employee can be hired to service real demand
- Complementary service can be developed during peak time to provide
and to waiting customers.
- Shared service can be developed (Alazar A. 2006, pp. 118)

2.4 Customer service

Customer service is a task other than common operation that involves interaction with
customer and person or by telecommunication of automatic process.

Customer service is a customer care that seek to acquire new customers, provide superior
customers satisfaction and companies can take to add value to basic goods and services”
(Philip kotler and Gary Armstrong, 1996 pp. 165)

The companies must also decide how it will serve targeted customers how it will
differentiate and position itself in the market place. A company value promote is a set of
benefit of values it promise to deliver service to customer to satisfy their need. Certain
company may sell best products and service that ultimately determine how successful the
business will be the customer feels good and they will buy and come back. (Philip Kotler
1996, pp. 167)

2.5 The service marketing mix

The service marketing mix constitutes variable service firm can manage to produce, sales
and obtain profits. This variable can be used to differentiate a firm from its competitor and
to build a competitive advantage. The element of marketing mix include the service
outcome (products) the price, distribution and form image.

1. Service outcome:- product component of the marketing mix the outcome of the
service. It casuist of two component
 The technique:- is the end result of the service or “what” of the service
 The functional outcome:- the process of recurring the service or “how the
service was provided” (Alazar A. 2006, p. 118).
2. Price:- because service is intangible and experimental nature, the prices becomes
more important to customers as we want to expect.
3. Distribution:- because of the inherent characteristics of service, distribution
become more challengeable. Distribution is the availability and accessibility of
service to the customers (Alazar A. 2006 pp. 118)
4. Cooperative image:- important element in the purchase decision of service is of the
image customer having of the firm or organization. Personal experience, word of
mouth communicates image offers of a firm (Alazar A. 2006 pp. 118)
5. Promotion:- service firms have several means of promoting their, firms,
advertising sales promotion and personal selling are the major component, since
service are experimental in nature, promoting a service is more complex than
promoting a good (Alazar A. 2006, pp. 118).

The major differentiating factor for service companies is quality of customer service. The
customer is dissatisfied if performance is less than expectation. If performance matches
expectations, the customer satisfied. Highly satisfied customers make repeat purchase and
tell other about their goods extrudes with the products. Smart company aim to delight
customers by pronouncing only what they can delivers, their delivering more than they
promise (Philip Kotler, 1996, pp. 16).

2.6 Evaluating service quality

Quality is a measure of how closely a product confirms to customer needs, wants and
expectation. It is the degree to which a product confirms to customer expectation and
satisfaction.

According to Jaff (2001, pp. 269) evaluating service qualify on assessment of the overall
performance of an organization is not enough. This provides little or no insight in to the
short coming and excellent part of service delivery managers cannot take any decision
based on such and overall judgment.

Implementing and evaluating service quality is a very complex process, because of the
intangible nature of service and the difficulty in measuring customers’ expectation and
perception. Zelthmal and Bituer (1996) believe that content and delivery of a service are
essential factors for evaluating service quality. While customer evaluates the quality of
delivery, service providers determine the content of the service.

Edvardson (1998) contents that the concept of service should be approached from the
customer’s perspective. Because the customers total perception of the outcome is the
service and the customer outcome is created in a process where service is generated
through that process. Customers’ involvement in the service process is necessary, since
they are co-producer of service. The service process can be a delivery of service,
interpersonal interaction, performance or customer’s experience of service.

2.7 Ensuring customer satisfaction and retention

2.7.1 Customer satisfaction

Customer satisfaction is a widely used term in business to measure the kind of products and
services provided by a company to meet its customer expectation. Customer satisfaction is
believed to be the company’s key performance indicators (KPI), particularly when
organizations complete for customers.
Literature establishes that customer satisfaction is a key to long term business success
(Zelthami et al …, 1996). To protect gain market shares organizations need to outperform
competitors by offering high quality product or service to ensure satisfaction of customers.
(Reicheld, 1996: Granroos: 2000: Tsoukatos 2008), with banks customer longevity is
achieved through the delivery of high quality service (Berry et al … 1985: Anderson et al
…, 1994) especially under unregulated and volatile financial market conditions. (Colgate
and Lang, 2001) Banks need to understand customers service requirement and how it
impact on service delivery and customer attitudes (Gerrad and Cunning how, 2001).

The ability of a bank to meet the expectation of customers determines the extent of
satisfaction delivered by customers. Berlied al (2004) describes customer satisfaction as the
measure of the extent a bank fulfill the general expectation of a customer and how far and
/or close does the existing bank come to the customers ideal bank in his mind, customer
satisfaction can be viewed as the future intention of customers toward the service provider,
which is more or less related to the attitude (Leveque et al, 1996), in order to maintain and
increase purchases, the bank needs to provide value (high quality) to customers (Anderson
and Jacobsen, 2000).

2.7.2 Customer Retention /loyalty

Good customer’s relationship management creates customer delight. Delighted customers

remain loyal and talk favorably to others about the company and its products. Studies show
big differences in the loyalty of customers who are less satisfied. Even a slight drop from
complete satisfaction can create an enormous drop in loyalty. Thus, the aim of the
customer’s relationship management is to create not just customer satisfaction, but
customer delight. Companies are realizing that losing a customer means losing more than a
single sale. It means losing the entire stream of purchases that the customer would make
over a life time of patronage. (Kotler, 1996)

2.8 Tracking customer satisfaction

Tracking customer satisfaction enables you to keep a finger on the pulse of your customers
so you can continue to deliver a great customer experience. Tools for tracking and
measuring customer satisfaction range from the primitive to sophisticate. Companies use
the following method to measure how much customer satisfaction they are creating:-

 Compliant and suggestion system

A customer countered organization makes it easy for customer to make suggestion or

complaints. Restaurants and hotels provide forms on which can check of their like and
dislikes hospitals place suggestion in the corridors supply comment cards to existing
patents and employee patents advocates to solicit grievance.

Some customer cantered companies such as general electric and wire pool get up customer
host line with 800 numbers to make it easy for customer to increase suggestion or
complaints. Such system not only helps companies; to act more quickly to resolve
problems. They also provide companies with many good ideas for improved products and
service (Philip Kotler and Gary Armistrong 1996, pp. 573).

 Ghost shopping

Another useful way of assessing customer satisfaction is to hire people as buyers to report
their experience in buying the company’s and competitors products. These “ghost”
shoppers can even present specific problems to test whether the companies’ personal
handle difficulties well. For example, ghost shopper can complain about restaurant handles.
These complain not only should companies hire ghost shopper, but managers themselves
should leave their office from time to time and experience firsthand treatment, and then
receive as customer. (Philip Kotler, 1996, pp. 573)

 Customer satisfaction survey

Survey and questionnaires are the most common marketing research method typically they
are used to:

 Assess the level of customer satisfaction with particular products, service or

experiences
 Identify factor that contribute to customer satisfaction and dissatisfaction
  Determine the current status or characteristics and potential customer
satisfaction
 Causation in measuring customer satisfaction

Customer satisfaction rating are sometimes difficult to interpret when customer rate their
satisfaction with some element of the company’s performance, their satisfaction, order or
something else, yet, if the company tried to define every element in detail. Customer would
face a huge questionnaires and companies also most recognize that two customer can report
being “highly satisfied” for different reasons are might be easily satisfied most of the time,
whereas the other might be maked to praise, but was pressed on this occasion. Further
managers and sale people can manipulated their rating on customer satisfaction. They can
be especially nice customer just before the survey or try to exclude unhappy customer from
being included in the survey (Philip Kotler, 1996, pp. 574)

2.9 Measuring customer satisfaction

2.9.1 Need for measuring customer satisfaction

In the books marketing management (Kotler, 2000, p: 153) says that, managing customer
satisfaction efficiently is one of the biggest challenge one organization face. The marketing
concept emphasizes customer satisfaction yet it is only to last two years that a serious effort
has been made to understand how estate of satisfaction is reached. Customer form
expectation based on past experience: information from social sources and sales
presentation and advertising when using the service they compare these expectations with
their experiment to arrive at good level of satisfaction. The ideal outcome or result is equal
or exceed expectations the result is satisfaction occurs.

Companies that achieve high customer satisfaction rating it make sure that their target
market is known it. A customer oriented company would track its customer satisfaction
level each period and set improving goals. Profit could be change in particular year for
many reasons, including rising costs, falling prices, major new investments and so on but
the ultimate sign of healthy company is that its customer satisfaction is the best indicator of
the company’s future benefit.
2.9.2 Methods of measuring customer satisfaction

In the book marketing management (Kotler, 2000, p: 153) says that, managing customer
satisfaction efficiently is one of the biggest challenge an organization face the tools for
methods to measure customer satisfaction are missing … Kotler has stated some
measurement of customer satisfaction.

I. Direct method: it is directly contacting customers and getting their valuable

feedback is very important. The following are some ways by which customers
could be directly involved getting customer feedback through face to face
conversation or meeting.
 Direct customer feedback through survey and questionnaire
 Last customer analysis: companies should contact customers who have shifted
buying or those who switched to a competitor to learn which this happened
II. Indirect method:- the major draw backs of direct method is that it turns out to
be very costly and requires a lot of pre-compiled preparations to implement for
getting the valuable feedback’s the service organization totally depends on the
customer due to which they looses options and chance to take corrective
measure at correct time.

The following are some way by which customers could be indirectly involved.

 Customer compliant and suggestion box system:- are the issue and problems
reported by customer to the service organization with regard to any specific
service or product. These complaints can be classified mater different segments
go high in a specific period of time then the performance of the organization is
degrading in that specific area or segment, but the organization is performing
well and customer satisfaction level is higher.
 Customer loyalty:- it is necessarily required for an organization to interact and
communicate with customers on a regular base to increase customer loyalty. In
this interaction and communication it is required to learn and determine all
individual customer needs and respond accordingly. Customer is said to be loyal
if he/ she resists the service organization on regular base for purchase, these
 loyal customer are the satisfied ones and they are bounded with a relationship
with the organization. Hence by obtaining the customer loyalty index,
organization can be indirectly measure customer satisfaction.

2.10Customer handling

Customer expectation is increasing daily, customers are better informed and more
demanding than ever before and the competition to obtain and keep these customers is
getting tougher by the minute. The difference between keeping and losing a customer’s
depends almost entirely on the experience that your customer facing staff provides. This
unique, one day, high intensity training course is totally committed to providing the
essential focus, skill and motivation to provide the highest level of customer care each and
every day to keep your customer coming back for more. (Kotler 1996)

 The importance of a positive attitude

 How attitude affects your communication
 Effective listening

2.10.1Types of customer handling

According to Kotler (1996), define four different level of relationship to customers. These
are re-defined in terms of service. They can be circumscribed as follows

 Basic:- the sale person sales the service, but does not contract the customer
alone
 Reactive:- a person sells a service and encourage the customer to all that he/
she has any question /complaints/
 Accountable:- the sales person phones the customer a hour time other to check
whether the service is meeting the customers any service expectations
 Partnership:- the company workers continuously with customers to discuss
ways to affect customer saving to perform better (Kotler, 1996, pp. 378 - 79)
2.11 Total quality management

Total quality management is an approach to improving the effectiveness and flexibility of

business as a whole. It is essential way of organizing and improving the whole
organization, every department, every activity and every single person at every level. Total
quality management ensures that the management adopts strategic overview of total and
focus on prevention rather than inspection (Oakland, 1989).

Total quality management is an approach for continuously improving the quality of goods
and services delivered through participation at all levels and function of the organization.
(Pafu, 1989)

In industry service quality is predominantly an employee related issue. There are no

physical and dimensional to measure the quality of service. Service managers must realize
that service quality and customer satisfaction is not in their direct charges rather it is in the
charge of the employees who are in the fore front. It is only through the employee that a
service firm can excel in quality (Gravin 1989, Total quality to service).

Total quality when properly used is an integral part of an organization, not a separate, stand
– alone program, and encompass all of the functional areas and levels of total quality
management.

 Elements of total quality management

There are four elements that are integral to every successful total quality management.

1. Leadership
2. Employee involvement
3. Product or process excellence and
4. Customer focus (daris, Aqalilaw, chose 2003, pp. 226)
 CHAPTER THREE

3. Research Methodology

3.1 Research design

The researcher used descriptive design on Analytical design method, because these method
is very useful to clearly describe the present state of an area of investigation to cover wide
magnitude in order to obtain precise information at it occurs and it helps that explain the
study in terms of the conditions. The intention of the paper was to describe the assessment
of service quality and its effects on customer satisfaction

3.2 Nature and source of data

The study would be conduct based on data from primary and secondary source in order to
gather relevant information for the study. The primary source of data would be collected
from the selected respondent understudy. The reason why the researcher used primary data
is to collect information for the specific purposes of the study. The study was also
employee mainly questionnaires in collecting the primary data because questionnaires
would provide a quantitative method of data gathering the evidence, data or information we
find is expressed in numerical terms.

The secondary data would be collected from the existing literature formed the literature
review of the study. the source of the secondary data included books, journals, article
obtained from the internet and the bank’s documents. The reason why the researcher uses
secondary data was because secondary data tends to be readily available and in expensive
to obtain.
3.3 Sample size and sampling method

Sampling is the process of using the small number of item from the whole population.
Therefore, the researcher would use probability sampling technique mainly the simple
random sampling technique. The target population of this study would be customer of
commercial bank of Ethiopia Dire Dawa Dechatu Branch and the employee of the bank,the
considered 17000 customers and 36 employee of the bank. Due to collecting the data from
this huge population is difficult; therefore the researcher was select a sample size of 30
from customers and 10 from the employee of the bank.

The reason for the researcher to select simple random sampling technique has the following
reason:-

 This method is simple, it’s fair ways of selecting a sample from the target
population since every member is given equal opportunity of being
selecting
 Another key feature of simple random sampling is its representatives of the
population

3.4 Methods of data collection

Data collection is the process of gathering data and information to address question of the
paper. In order to conduct the study the researcher would use open ended and close ended
questionnaires and the interview would also conduct for collecting primary source of
information for the research.

 The reason for using open ended questionnaire is to let the respondents
freely write the appropriate answers they think. close ended and interview
were used to obtain more information about the subject when gathering the
data.
 The researcher would use open ended because respondents was express themselves
freely and it is good for respondents who wants to answer in their own word.
 The researcher would also use close ended questionnaires because it’s easier and
less time consuming to complete and easier to analysis.
  Likely to have a higher response rate and less missing data.
 The researcher was use interview because of interview allow to gather wide range
of open ended data. The interview would provide information about the people’s
motivation feelings, attitudes and what they remember.

3.5 Methods of data analysis

The collected data was carefully edited, coded, tabulated and organized based on the types
of basic questions and nature of data analysis. Tables and percentage will be the most
appropriate interpretations and analysis of data.
CHAPTER FOUR

4. Introduction

The aim of the study was assessing customer satisfaction toward CBE services. Accordingly
about 50 questionnaires were distributed to respondents selected through simple random
sampling, from these 35 questionnaires to customer and 15 to employee of the bank. Out
of the total distributed questionnaires 30 from customer and 10 from employeeof the
branch were properly filled and successfully returned. The data were presented by using
table,percentages and sequences. Descriptive analysis was followed to critically example
to the response obtained from the sampled respondents

4.1 General characteristics of respondents

Table 4.1 Sex of respondent

N o I t e m R e s p o n d e n t s

1 S e x N o . P e r c e n t a ge %

M a l e 2 1 7 0

F e m a l e 9 3 0

T o t a l 3 0 1 0 0

Source:own survey questionnaire, 2015

As the above table 4.1 shows 21(70%) of the customer were male and the remaining 9
(30%) of the customer are females. From the above table the researcher was conclude that
the majority customer of the bank was male

Table 4.2 Age of respondents

N o I t e m R e s p o n d e n t s

2 A g e N o . P e r c e n t a ge %
 1 8 - 2 5 3 1 0

2 6 - 3 5 1 4 4 3 . 3

3 6 - 4 5 8 2 6 . 6

A b o v e 5 1 6 . 6

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

According to the result seen from the table 4.2 regarding age,3(10%) of the respondents
were between age 18 –25, 14 (43.3%) of them are between 26 – 35 years, 8 (26.6%) of
respondents of customer are age between 36 – 45 and the remaining, 5 (16.6%) of
respondents are above age 45, based on this data between age 26 – 35 years take the
majority of population of the customer. This implies that most clients of the bank are
matured individuals who can well understand the service levels of the bank.

Table 4.3 Educational status

N o I t e m R e s p o n d e n t s

3 Educational status N o . P e r c e n t a ge %

I l l i t e r a t e - -

E l e m e n t a r y 1 5 5 0

H i g h s c h o o l 2 6 . 6

C e r t i f i c a t e 6 2 0

D i p l o m a 3 1 0

D e g r e e 4 1 3 . 3

Above 1st degree - -

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

As it can be seen from table 4.3 regarding educational level of the respondents, 15 (50%)
of the customers are studied elementary school, 2 (6.6%) of the respondents are high school
studied and 6 (20%) of the respondents are certificate graduate. The remaining 3 (10%) and
4 (13.3%) are diploma and degree graduates respectively. Based on this the majority of the
bank customers are elementary school completes. This shows that most of the businesses in
dire Dawa are owned by academically less educated individuals.

Table 4.4 Type of services

N o I t e m R e s p o n d e n t s

4 What types of services are you get from the CBE dire dawa dechatu branch? N o . P e r c e n t a ge %

M o n e y t r a n s f e r 1 0 3 3 . 3

M o n e y d e p o s i t 1 6 5 3 . 3

C r e d i t 4 1 3 . 3

O t h e r s - -

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

As it can seen from the above table regarding types of services, 10 (33.3%) of respondents
get money transfer, 16 (53.3%) of respondents use the bank for money deposit and 4
(13.3%) of respondents get credit account from the bank.Majority of respondents use the
bank for the purpose of money deposit. This indicates that the bank provides many more
services even though the people are not effectively utilizing all of them exhaustively.

Table 4.5 The bank’s equipment quality

N o I t e m R e s p o n d e n t s

N o . Percentage %

5 How do you see the quality of equipment in CBE, dire dawa dechatu branch?

V e r y g o o d 4 1 3 . 3

G o o d 7 2 3 . 3
 A v e r a g e 1 8 6 0

P o o r 1 3 . 4

V e r y p o o r - -

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

According to the above table the researcher observed, that from the total respondents,
4(13.3%) of respondents said quality of equipment in the bank is very good, 7 (23.3%) of
them replied good on quality of equipment, 18 (60%) of them said average and 1 (3.3%) of
them said poor. Based on the response given by the respondents in the above table
concerning quality of equipment in the bank majority of respondents said that the quality of
equipment is average.

Table 4.6 The reason for using the bank than other

N o I t e m R e s p o n d e n t s

N o P e r c e n t a ge %

Why do you choose CBE, dire dawa, dechatu branch than other?

L o c a t i o n 1 6 5 3 . 3

S e c u r i t y 1 0 3 3 . 3

T e c h n o l o g y 4 1 3 . 4

O t h e r s - -

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

As the above table shows that 16 (53.3%) of respondents replied that they prefer to use the
service because of location, 10 (33.3%) of respondents choose this branch because of
security and 4 (13.4%) of respondents choose because of technology. Based on the data
majority of respondents choose the dechatu branch because of nearest to their locations.
Table 4.7 Quality of service delivery

N o I t e m R e s p o n d e n t s

N o P e r c e n t a ge %

How do see the quality of service delivery in CBE dire dawa dechatu branch 2 1 7 0

V e r y g o o d 7 2 3 . 3

G o o d 1 4 4 6 . 6

A v e r a g e 7 2 3 . 3

P o o r 2 6 . 6

V e r y p o o r - -

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

According to the table 4.7 above, regarding quality service delivery level of the bank, 7
(23.3%) respondents replied that the quality of service delivery of the bank is very good, 14
(46.6%) of them said good, 7 (23.3%) of them said average and 2 (6.6%) of the
respondents said poor.Majority of respondents replied that quality service delivery level of
the bank is good. This implies that there are many efforts made by the bank to improve its
services.

Table 4.8 The time to get services

N o I t e m R e s p o n d e n t s

N o P e r c e n t a ge %

8 How long does it take to get service?

Below 5 minute 4 1 3 . 3

5 – 15 minute 1 4 4 6 . 6
 16 – 30 minute 3 1 0

31 – 4 5 minute 7 2 3 . 3

A b o v e 2 6 . 6

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

According to above table 4 (13.3%) of respondents waiting to get services below 5

minutes, 14 (46.6%) of the respondents wait 5 – 15 minutes to get services, 3 (10%) of
them wait 16 – 30 minute to get service, 7 (23.3%) of respondents wait 31 – 45 minute to
get service and 2 (6.6%) of respondents wait above 45 minutes to get services. based on the
above data the majority of customers wait 5 – 15 minutes to get services. This shows that
the bank has automatized many of its services from traditional time consuming system.

Table 4.9 Ability of employee to give services

N o I t e m R e s p o n d e n t s

N o P e r c e n t a ge %

9 How do you rate the ability of employee to give service?

V e r y h i g h 4 1 3 . 3

H i g h 1 0 3 3 . 3

M e d i u m 1 5 5 0

L o w 1 3 . 3

V e r y l o w - -

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

According to the table 4.9 regarding employees ability to give services 4(13.3%)
respondents said that the ability of employee to give services is very good, 10 (33.3%) of
respondents says high, 15 (50%) of them says medium and 1 (3.3%) of respondents says
low. Based on this data the majority of customers or respondents replied that the ability of
employees to give services is medium. This shows that some employees need additional
training to make the services more convenient and timely.

Table 4.10 Politeness, respect, consideration and friendship of the employee

N o I t e m R e s p o n d e n t s

N o Percentage %

1 0 How do you see the politeness, respect, consideration and friendship of the employee

V e r y h i g h 8 2 6 . 6

H i g h 1 8 6 0

L o w 3 1 0

V e r y l o w 1 3 . 3

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

As the above table 4.10, shows 8 (26.6%) of the respondents replied that politeness,
respect, consideration in the bank was very high. Besides, 18 (60%) of the total response
collected shows high. The remaining 3 (10%) and 1 (3.3%) of the total respondents said
that low and very low each. Therefore, from the above results presented in table one can
conclude that the politeness, respect, consideration and friendly in the bank is high.
Table 4.11 Relationship between quality service delivery and customer retention

N o I t e m R e s p o n d e n t s

N o Percentage %

1 1 Is there relationship between the quality of service delivery and customer retention?

Y e s 3 0 1 0 0

N o _

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

As can be observed from table 4.11 above, regarding the relationship between quality
service delivery and customer retention, all the survayed respondents unanimously agreed
that there is positive and linear correlation between quality service and customer
satisfaction and retention.

Table 4.12 Service sufficiency of the bank

N o I t e m R e s p o n d e n t s

N o Percentage %

1 2 Do you think the bank service quality is sufficient?

Y e s 2 1 7 0

N o 9 3 0

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

According to table 4.12 regarding service sufficiency of the bank the respondents were
asked whether the bank service quality is sufficient or not, accordingly, 21 (70%) of the
respondents said yes and the remaining 9 (30%) of them replied the services they get from
the bank is not satisfying as it out to be.
13. From the open ended question the researcher was asked the respondent that replied*the
bank service is not sufficient*. Based on the question the respondent says *NO* because:

 Customer demand increase from time to time

 The bank has not enough customer service officer
 The branch and customer is not balance
 There is no enough modern technology

14. Is there any problem in delivery of service in the bank?

Most of the customer said that there is no problem at all, but some of them were
stated some problem which are

 No enough space which the customers waiting to get services

 Unavailability of sufficient information desk, so the bank should improve
those to deliver quality service.

Table 4.13 Effect of service quality on customer satisfaction

N o I t e m R e s p o n d e n t s
N o P e r c e n t a ge %

Does service quality have any effect on customer satisfaction?

Y e s 2 5 8 0 . 4

N o 5 1 9 . 6

T o t a l 3 0 1 0 0 %

Source: from questionnaires filled, 2015

As shown on the above table 4.15 concerning the effect of service quality on customer
satisfaction 25(80.4%) of respondent replied yes and the left 5(19.6) responded no. leading
to conclusion, the majority of the respondentreplied yes on the clients
Part II Analysis of data collected from employees commercial bank of
Ethiopia Dire Dawa Dechatu branch

 Personal data of samples employee respondents of CBE dire dawa dechatu branch

Table 4.14 Personal profile of employee

N o N o o f i t e m Frequency i n No No of respondent in %

1 S e x

M a l e 7 7 0

F e m a l e 3 3 0

T o t a l 1 0 1 0 0

2 A g e

1 8 - 2 5 3 3 0

2 6 - 3 5 6 6 0

3 6 - 4 5 1 1 0

A b o v e 4 6 0 0

T o t a l 1 0 1 0 0

3 Educational level

I l l i t e r a t e 0 0

1 2 c o m p l e t e 0 0

D i p l o m a 5 5 0

D e g r e e 5 5 0

M a s t e r 0 0

T o t a l 1 0 1 0 0

Source: questionnaire collected in 2015

As above table 4.16 items 1. Shows 7 (70%) of respondents are male and 3 (30%) of
respondents ate females. Majority of the respondents are males.

In the above table 4.16, as item 2 shows, 3 (30%) of respondents are between the age of
18-25 and 6 (60%) of respondents are between the age of 26-35 years old and also 1 (10%)
of respondents is between 36 – 45 years. Majority of the employees of the bank are in age
range of 26-35 years. This shows that most of the employees of the bank are in productive
work ages and energetic to provide fast and timely services.

As the above table 4.16 item 3 shows, regarding educational level of the respondents,
5(50%) of them are diploma holders whereas 5 (50%) of the respondents are first degree
holders. This indicates that most of employees are at least diploma and first degree holders.

Table 4.15 Evaluation of customer handling

N o I t e m Respondents No of respondent in %
4 Do you think the company manager solve customer complaint?
Strongly disagree (1) - -
D i s a g r e e ( 2 ) - -
N e u t r a l ( 3 ) 2 2 0
A g r e e ( 4 ) 3 3 0
S t r o n g l y a g r e e ( 5 ) 5 5 0
T o t a l 1 0 1 0 0
Source: questionnaires filled 2015

From table 4.16 above, concerning the efforts of the management in addressing the
complaints of the customer, 2 (20%) of the respondent replied that they are indifferent, 3
(30%) of the respondents answered that the management of the company timely and
properly solves the complaints of the customers, whereas about 50% of the respondents
strongly agree that the management of the company solves complaints of the clients. This
implies that the management team of the bank is doing their level best to address the
complaints of the customers.
Table 4.16 Relationship between quality service delivery and customer retention

N o I t e m R e s p o n d e n t s

N o Percentage %

1 1 Is relationship between the quality of service delivery and customer retention?

Y e s 3 0 1 0 0

N o _

T o t a l 3 0 1 0 0

Source: from questionnaires filled, 2015

From above table 4.17 regarding the relationship between quality of delivery and customer
retention, 30 (100%) or all of the respondents replied about the existence of relationship
between quality service and retention. accordingly from the statement we conclude that the
commercial bank of Ethiopia dechatu branch retain his customer by fulfilling service they
want.

Table 4.17 Sound advertisement and promotion to attract new customer

N o I t e m Respondents No of respondent in %
5 Is there any sound advertisement and promotion to attract new customers
Strongly disagree (1) - -
D i s a g r e e ( 2 ) 2 2 0
N e u t r a l ( 3 ) 1 1 0
A g r e e ( 4 ) 4 4 0

Strongly agree (5) 3 3 0

T o t a l 1 0 1 0 0
Source: questionnaires of 2015
From table 4.18 sound advertisement and promotion, 2 (20%) of the respondents are
disagree. 1 (10%) of the responded replied neutral and the remaining 4 (40%) and 3 (30%)
respondent are said agree and strongly agree respectively. The data most of the respondent
stated that the majority of the respondent agree with the availability of sound advertisement
and promotions to attract new customer.

Table 4.18 Relationship between customer and the organization

N o I t e m R es po nd ent s No of respondent in %

6 Does the organization has close relationship with its customer

S t r o n g l y d i s a g r e e - -
D i s a g r e e - -
N e u t r a l 1 1 0
A g r e e 3 3 0
S t r o n g l y a g r e e 6 6 0
T o t a l 1 0 1 0 0
Source: questionnaires filled, 2015

From table 4.19, regarding whether the bank has close relationship with the customers, 1
(10%) of the respondents replied that they are indifferent/neutral, 3 (30%) of the
respondent agreedthat the organization has close relationship with its customers, the
remaining 6 (60%) of the respondents havestrongly affirmed that the organization has close
relationship with the clients. This shows that generally there is good relationship between
commercial bank of Ethiopia dechatu branch and its customers.
 Interview response from manager of the bank

According to the manager response, there is customer complaint handling mechanisms in

the organization such as complaint suggestion box for customer and face to face
communication with customers to know the complaint and then solve those problems that
are raised by customer by which it acts more quickly to resolve the problem of customer,
the manager replied that; first the bank collect the complaint and identify whether the
problem is exist or not, and then if problem is found in the organization appropriate follow
to resolve the existing problem.

According to the manager response, the bank manages its service qualify by using effective
performance management system i.e. secure service; analyzing customer demand and
respond to changing customer demand, maximizing the effectiveness and efficiency of
organizational operation and improving service quality and customer satisfaction.

The manager answered that the bank has not fixed independent training for employees, but
where needed the organization train the target person who should participate in the training
program.
CHAPTER FIVE

5. Summary, Conclusion and Recommendation

This chapter deals with summary, conclusion and recommendation based on the data
analyzed in previous chapter. Summary of finding are presented to put the major finding of
the study. General conclusion of the major finding of the study is given and finally
recommendations are forwarded for addressing the problems encountering the commercial
bank.

5.1 Summary

Based on the detail analysis made in the preceding chapter; the following major finding of
the study have been summarized.

 Summary of data gathered from customers

- The study result shows that the majority (70%) of customers of the bank is
academically less educated or primary school graduates.
- Majority of the customers use the bank for single purpose of money deposition;
- About (60%) of the respondents consider the equipment quality of the bank as
averagely satisfying.
- Most of the respondents replied that the reason why they choose this branch is
mainly because of its vicinity.
- Majority of respondents,(54%)of them said that the quality of service delivery of
the bank is not at good level.
 Majority of the respondents replied that they have to wait for about 15-30minutes to
get services;
 Summary of data that was gathered from employees
- The study results indicatethat majority (70%) of employees is male and mostof
them are between 26 – 35 years.
- Almost allemployeesof the bankare diploma and first degree holders.
- Majority of the employees strongly agree on solving customer complaint properly
and at right time.
- Most of the employee replied that agree on the availability of sound advertisement
and promotion to attract new customer.
 According to the response of the manager the bank uses complaint and suggestion
box system to know the complaint of the customer and then solve the problem if
their exist and there is not fixed independent training program for employee, but of
needed the bank sends target personnel to participate in training.

5.2 Conclusion

From data analysis and summary the following conclusions are presented

- The highest number of respondents were male by 67% i.e. it takes the majority of
the bank population; similarly in age distribution the maximum number of
customers visiting the bank was 52% between 21 – 30 years.
- The majority of customers choose CBEbecause of its location, because they
minimized distance for customer.
- The bank equipment qualities have positive effect on customer satisfaction.
However CBE Dire Dawa main branch not have enough equipments as expected by
customer.
- The organization take more than 15-30 minutes to serve one customer because of
the bank has not enough customer service officer;
- Majority of the respondents of the bank get money deposit services from the
organization;
 - The organization, CBE dechatu branch is ready to address customers complaint and
has prepared some mechanisms to know customers feedback.
- Creating good relationship between employee of the bank and customer is a
positive effect on customer satisfaction, but employee of the bank has some
problem in creating good relation with customer.
- Good satisfaction level of the customer is important for an organization survival,
but the level of customer satisfaction not as much as good in the bank.
- The finding reinforce much of the existing literatures in staff satisfaction and
service quality are found to be key drives of customer satisfaction;
- Fulfilling the needs of customers is a positive impact on customer satisfaction, but
bank does not fulfill the needs of some customers.

5.3 Recommendations

With the recent establishment of several new banks in Ethiopia, the banking industry in the
country is undergoing dynamic expansion. It is, therefore, imperative for banks to
continually monitor their level of service delivery, changing customer profiles and the
driver of satisfaction in order to retain their current customers and also to attract new ones.
Based on this fact and the findings of the study the following recommendations are
proposed to help improve customer satisfaction at CBE Dire Dawa dechatu main branch.

- The deviation between customer expectation and actual time they spent for getting
service is high, thus it is recommended that the bank would solve it if it assign
enough employees to minimize the service waiting time;
- It is advisable that the bank try to give its best services in order to meet the
customer satisfaction;
- It recommended that the bank install more ATMs at various locations to provide
round the clock access to customers;
- It is preferable that the bank work hard on relationship marketing to improve the
customers service skill of employees;
- It is advisable that all staff employees of the bank understand the performance of
the bank is directly related linked with customer satisfaction;
- It is recommended that the bank put effort in dealing with customer satisfaction
through an expanding technologies and sub branches
- Since keeping the promise for customers contributes in attracting as well as retained
loyal customers of the bank, it is advisable that the employee of the bank respect the
promise by telling only the truth about their service.
- Good working environment or condition such as enough working place and well
organized office arrangement facilities of the service delivery of the employees for
the customer that adds value for the satisfaction of customers, so in order, to do so,
it preferable that the bank create a good working condition that can create satisfied
employees, who can serve the customers well.
- Giving attention for customers ‘needs and wants in service delivering organization
contributes for the increment of loyal customers who are blood vessels of the
organization
- Giving attention for customers ‘needs and wants in service delivering organization
contributes for the increment of loyal customers who are blood vessels of the
organization, hence, it is advisable that the employee of the bank should pay due
attention to their customers needs and wants by appealing being polite and
cooperative to solve customers’ problem.
- Moreover, to serve the customer well, providing timely training for employees
plays a great role. Thus it is recommended that the bank give fixed training to staff
to enable them in servicing the customers well.
APPENDIX
References

1. Anderson, I W and eta’el (1994): customer satisfaction, market share and

profitability: 5th edition, journal of marketing, Washington DC
2. Berry et al … 1985; Anderson et al … 1994
3. Batterson and Hoffan (1992) principle of marketing (7th edition)
4. CBE background of CBE, retrieved at November, 18 (2013), http://
5. Curistian Gronroos, (1982). Strategic management and marketing in service sector:
2nd edition, Mels up publisher LTD.
6. Davis, Aquilano and Chaase foundawenfal of operation management 4th edition,
Boston: Mc graw – Hill /Win, 2003
7. Gravin 1989, total quality to service
8.
9. Hoffman K Douglas (2002): Essential of service marketing: 2nd ed.
10. Philip Kotler, (199 ) marketing management, edition, prentice hall LTD; New
York.
11. Philip Kotler (2004), principle of marketing (10th ed), view weli
12. Parasuraman ET. At (1988) marketing management: 9th edition
 13. www.past.comapny.com
14. www.combank.net.com

15. Zelthmal Van and Bituer J.M (1997) service marketing integrated customer focus

Dire Dawa University

School of Business and Economics

Department of logistics and supply chain management

Questionnaire form related to service quality

Dear respondent:

I am graduating class student of Dire Dawa University. I am carrying out research entitled
to “Assessment of service quality and its effects on customer’s satisfaction” in partial
fulfillment of acquiring BA in logistics and supply chain management. The objective of the
questionnaires are to gather information which help me to analysis the assessment of
service quality and its effects on customer satisfaction in case of commercial bank of
Ethiopia Dire Dawa dechatu branch

Dear respondents each of your answers are very crucial as well as very important for
successful completion of the paper. Please give your answer as honestly and openly as you
can briefly. Indicate your response by putting (√) mark in the given box and write your
idea on the space provided.

N.B. your name is not requested

I would like to thank you in advance!

General characteristics of respondents

1. Sex: a. male b. female

2. Age: a. 18-25 b. 26-35
c. 36-45 d. above 45
3. Educational status: a. literate b. elementary
c. high school d. certificate e. diploma
f. degree g. above degree

4. What types of service you get from the CBE Dire Dawa dechatu branch?
a. Money transfer c. credit
b. Money deposit d. other, specify
5. How do you see quality of equipment of CBE Dire Dawa dechatu branch?
a. Very god c. average e. very good
b. Good d. poor
6. Why do you choose CBE Dire Dawa dechatu branch than other bank?
a. Location c. technology
b. Security d. other, specify
7. How do you see the quality of service delivery in CBE Dire Dawa dechatu branch?
a. Very god c. average e. very good
b. Good d. poor
8. How long does it take to get service from bank?
a. Below 5 minute c. 16-30 minute
b. 5 – 15 minute d. 31-45 minute
9. How do you rate the ability of employee to give service quality
a. Very high c. medium e. very low
b. High d. low
10. Politeness, respect, consideration and friendly of the employee is?
a. Very good c. low
 b. High d. very low
11. Is relationship between quality service delivery and customer retention?
a. Yes b. No
12. Do you think that the bank service quality is sufficient?
a. Yes b. No
13. If your answer is “No” for specific question number “12” what is your reason?

14. Is there any problem in delivery of service in the bank

15. Does service quality have any effect on customer satisfaction?

a. Yes b. No

Questionnaires for employee

Part – I personal information

1. Age: a. 18-25 b. 26-35

c. 36-45 d. above 45
2. Sex: a. male b. female
3. Educational status: a. illiterate b. 12 complete
c. diploma d. degree e. MA

4. Do you think the bank manager solve customer complaint?

a. Strongly agree c. neutral d. disagree
b. Agree e. strongly disagree

5. Is relationship between quality service delivery and customer retention?

b. Yes b. No

6.Is there any sound advertisement and promotion to attract new customer?

a. Strongly agree c. neutral d. disagree

 b. Agree e. strongly disagree

7. The organization has close relationship with its customers

a. Strongly agree c. neutral d. disagree

b. Agree e. strongly disagree

8.What are the means of communication to attract customers toward the bank

a. Advertising c. employee
b. Customer d. other, if any