ASSESSMENT OF CUSTOMER SATISFACTION IN BANK SERVICE

INCASE OF BANK OF ABYSSINIA DURAME BRANCH

WACHEMO UNIVERSITY DURAME CAMPUS

FACULITY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

SENIOR ESSAY RESEARCH PAPER SUBMITTED TO WACHEMO

UNIVERSITY DURAME CAMPUS COLLEGE OF BUSINESS AND
ECONOMICS DEPARTMENT OF MANAGEMENT IN PARTIAL
FULFILMENT OF THE REQUIREMENT FOR BACHELOR ART (BA)
DEGREE IN MANAGEMENT

PREPARED BY: TBLET BEYENE

ID NO: 1082

ADVISOR: Mr. ZEWUDE KIFLE( MBA)

MAY, 2024

DURAME, ETHIOPIA
 Acknowledgment
First and for most, I would like to thanks the Almighty God for giving me everything. Next I
would like to forward special gratitude to my advisor Mr. Zewude kifele, for his advice,
comment, suggestion and correction to my mistake. Lastly, but I would to thank my family for
their desire and effort to see me being successful in my education.

i
 Abstract
This is a research project with customer satisfaction of the BOA in case of Durame branch. The
study was used both primary and secondary source of data collection; the primary data were
collected through self-administrated questionnaires because of it would be easy and quickly to
get timely data from the respondents and secondary data were collected from with company ,
records journals, websites and internet. Questionnaires was the dominant tool for data
collection in the description of the study along with open ended and closed ended questions were
prepared to the customer of the bank and interview (unstructured) were prepared to the
manager of the bank .The researcher were used both quantitative and qualitative data
collection method to collect available data. Quantitative data means that identifying by number,
percent and table. The study was adapted random sampling for the selection of respondents of
the organization .After the requirement data have been collected from primary and secondary
source of data an appropriate analysis was made by using of descriptive statics .Finally feasible
recommendation would be given for the problem identified in relation to customer satisfaction.

ii
iii
ACRONYM

BOA= bank of Abyssinia

iv
Table of Contents page
Acknowledgment......................................................................................................i
Abstract....................................................................................................................ii
Table of contents.....................................................................................................iii
LIST OF TABLES..................................................................................................vi
CHAPTER ONE......................................................................................................1
1 .INTRODUCTION...............................................................................................1
1.1 Background of the study............................................................................1

1.2 Statement of the problem...........................................................................1

Research Question...........................................................................................2

1.3 Objective of the study................................................................................2

1.3.1 General objective......................................................................................2

1.3.2 Specific objective......................................................................................2

1.4 Significance of the study............................................................................2

1.5 Delimitation of the study............................................................................3

1.6 The scope of study.....................................................................................3

1.7 Limitation of the study.............................................................................3

1.8 organization of the paper……………………………………………………...3

CHAPTER TWO.....................................................................................................4

v
2. LITERATURE REVIEW.....................................................................................4
2.1 Customer satisfaction.................................................................................4

2 .2 Services.....................................................................................................4

2.2.1 Characteristics of service..........................................................................4

2.3 Customer service........................................................................................5

2.3.1 Service encounter......................................................................................6

2.4 Service quality...........................................................................................7

2.4.1 Underlying principles of service quality...................................................8

2.4.2 Customer perceived value.........................................................................8

2.4.3 Customer loyalty.......................................................................................9

2.5 Internal marketing....................................................................................10

2.5.1 Increasing job satisfaction of service employees....................................10

2.5.2 Employee satisfaction.............................................................................11

2.6 Measuring customer satisfaction..............................................................11

2.6.1 Need for measuring customer satisfaction..............................................12

Methods of measuring customer satisfaction.................................................12

CHAPTER THREE................................................................................................14
3. RESEARCH METHODOLOGY.......................................................................14
3.1 Description of study area and population................................................14

vi
 3.3 Source of data..........................................................................................15

3.3.1 The primary Source of data.....................................................................15

3.3.2 The secondary source of data.................................................................15

3.5 target population......................................................................................16

3.6 Sampling technique and sample size determination.................................16

3.7 Data analysis and presentation................................................................17

3.8 Ethical consideration................................................................................17

Chapter four...........................................................................................................18
4. Data presentation, Analysis and interpretation..................................................18
4.1 General characteristic of respondents.......................................................18

4.2 Data gathering from customer..................................................................18

CHAPTER FIVE................................................................................................... 27
5. Summary, conclusion and recommendation.......................................................27
5.1 Summary..................................................................................................27

5.2 conclusions..............................................................................................28

5. 3 Recommendations...................................................................................29

References...................................................................................Error: Reference source not found

Appendix A......................................................................................................................................... Error:
Reference source not found

vii
LIST OF TABLES
Table 4.1............................................................................................................20

Table 4.2............................................................................................................21

Table 4.3............................................................................................................21

Table 4.4............................................................................................................22

Table 4.5............................................................................................................23

Table 4.6............................................................................................................24

Table 4.7............................................................................................................25

Table 4.8............................................................................................................25

Table 4.9............................................................................................................26

Table 4.10..........................................................................................................27

Table 4.11..........................................................................................................28

viii
 CHAPTER ONE

1 .INTRODUCTION

1.1 Background of the study

Like any other business organization the objective of the bank is to generate profit by providing
service to customer.

Customer satisfaction is out come felt by buyer’s who are experienced accompany performance
that had fulfilled expectation. Banks need to understand the determinant of customer value and
customer satisfaction to handle customer appropriately. Customers are satisfied when their
expectation are matches with the performance of product or service ,therefore the bank must
manage their value chains as the whole value delivered system in customer centered way. The
researcher tried to assess the customer satisfaction in BOA Durame branch.

The study will have great importance because customers are important factors for the
organization success or failure. The main target of this research project is to fill
recommendations for the problems that would rise in the banks and to minimize back ward
system of the bank and replace with a method that will attract more clients’ customer.

1.2 Statement of the problem

The major objective of any service business organization is making profit by producing, selling
and rendering service to current customer, which intended to provide benefits. Working for
customer satisfaction is one vital factor that determine the competitiveness of the organization

The performance of BOA Durame branch with regarded to banking activity and to serve its
customer appropriately is not fully satisfactory. Improper customer handling; in ability to give
full information to customer; the time in that the bank customer get banking service is high
compared to other banks specially during holidays and the bank has limited number of
employees compared to its customers.

1
Research Question
Therefore the study wants to answer the following questions at the end of the study.

1/ How the BOA Durame knows its customers demand?

2/ what are the complaint that is raised by customer?

3/ what is the level of customer satisfaction regarding the service by the bank?

4/ what kind of mechanisms are used to handle customer complaint?

1.3 Objective of the study

1.3.1 General objective
The main objective of the study was to asses’ customer satisfaction in BOA Durame branch.

1.3.2 Specific objective

-To identify existing customer complaint;
- To identify the level of customer satisfaction regarding to the service delivery;
- To identify complaint handling mechanism used in the organization;
- To give possible recommendation based on the findings;

1.4 Significance of the study

The output of the study will result in the implication of good customer handling in relation to
specifically selected bank; it will be upon the management decision of good customer service
can develop or makes correction on handling customer.
The result of the research will believe to have the following importance;
-It helps to improve relationship between the bank and customer;
-It enables how to know factors affecting customer satisfaction;
-It helps the bank to understand customer satisfaction;
-It helps as a reference for further study

2
1.5 Delimitation of the study
Even though, BOA has many branches in the whole country but this study is delimited to the city
of Durame, BOA Durame branch. Therefore the study is delimited to BOA Durame branch on
the title of assessment of customer satisfaction, the other branches are not incorporated because
of time, cost and experience.

1.6 The scope of study

This study would be limited geographically, conceptually and methodologically. Geographically,

the study will be conducted at Abyssinia Bank, Durame branch. Conceptually, it would be
limited by assessing the satisfaction of the customer. Methodologically, the study would be
employ descriptive research design.

1.7 LIMITATION OF THE STUDY

Any researcher cannot be carried out smoothly without any facing challenges; similarly the
researcher faced the following problems at the time of conducting the study;

- Lack of experience,

- The study is limited in scope and sample size i.e. the finding of this study may not give a
general picture of the customer satisfaction in BOA Durame branch.

- The researcher faced financial limitation to collect comprehensive and detail study of
customer satisfaction by taking large sample size,

1.8 organization of the paper

This study would be organize in to five chapters. The first chapter contain introduction,
background of the study, statement of the problem, objective of the study, Research question,
significant of the study, scope of the study and organization of the paper. The second chapter
contains review of related literature which is about customer satisfaction. The third chapter deals
with background of the organization, research design, and methodology. The fourth chapter
presents the data analysis and interpretation part. Finally the fifth chapter presents summaries,
conclusion and recommendation of the researchers.
3
 CHAPTER TWO

2. LITERATURE REVIEW

2.1 Customer satisfaction

According to (West brook, 1987; and Oliver, 1991) defined Customer satisfaction is the degree
of satisfaction provided by the goods or services of a company as measured by the number of
repeat customers or customer satisfaction is a highly personal assessment that is greatly
influenced by customer expectations.

It is seen as a key performance indicator within a business organization. High customer

satisfaction ratings are widely believed to be the best indicator of company’s future profit.
Satisfaction can be broadly characterized as a post purchase evaluation of product’s quality given
by customers before purchase.

A highly satisfied customer might;

Stay loyal for long period;

Buys more as the company’s new services and upgrades existing services.
Takes favorable about the company’s and its services.
Pays less attention to competing brands and advertising and less sensitive to price.
Offers product or service ideas to the company’s.

2 .2 Services
Many writers wrote about services in different way, one of the writers( Kotler ,1996) define it
has an act or performance that one party can offer to another that is essential intangibility and
does not result in to ownership of anything.

2.2.1 Characteristics of service

In relation to making program( Kotler,1990,.p,123 ) described that service have five key
characteristics ,this are;

4
1. Intangibility: means that the service cannot be experienced before it is bought or service
lacks physical examination i.e. it is impossible and they cannot be seen, taste, felt, heard and
smelled before they are bought.

2. Inseparability: services are typically produced and consumed simultaneously. It cannot

be separated from the service provider .Thus; the service provider would become a part of
service.

3. Perishability: services are deeds, performance or act whose consumption takes place
simultaneously; they tend to perish with the absence of consumption, hence service cannot be
stored, the go waste, if they are not consumed simultaneously .value of a service exists at the
point when it is required.

4. Heterogeneity: a service is difficult to produce consistently and exactly over time. Service
performance varies from producer to producer, from customer to customer, and from time to
time. This characteristic of service makes it difficult to standardize the quality of service.

5. Non ownership: the final distinguishing characteristics of service is that, unlike a physical
products the customer does not secure ownership of the service, rather the customer pays only to
secure access to or use of the service i.e. with in banking services, although the customer may be
given a check book, credit card etc they serve only to allow the customer to make use of what he
or she is actually buying namely banking services.

2.3 CUSTOMER SERVICE

Customer service is the provision of service to customers before, during and after a purchase or
is the sum total of what an organization does to meet customer expectation and produce customer
satisfaction. According to (Turban ET .el 2002) “customer service is a series of activities
designed to enhance the level of customer satisfaction _that is, the feeling that a product or
service has meet the customer expectation “

5
There are different types of customer service delivered at different stages, we can identify
customer service deliver before the sale of a product or service, during the sale and after the sale
of service.

Customer service in banks is one of the most important ways to keep customers coming back; it
includes responding the customer’s questions and complaints in a timely manner and interacting
with customers through face to face meetings, telephone, mail, fax and e-mail. because of
increased competition banks are required to become more and more customer focused,
according to WASH BURN financial services .it is more costly to acquire new customers than it
is to retain existing customers ,retaining customers requires customer service stuff in banks to
provide service that is quick ,error free and in a convenient way.

2.3.1 SERVICE ENCOUNTER

A service encounter is the period of time during which customer’s interact directly with a
service. According to (SHOS TACK 1985 p.22) defined service encounter are transactional
interaction which one person (office clerk) provides a service to another person .most services
characterized by an encounter between a service provider and customer. (Westemer, 1995).

According to (Collier and Meyer, 1998) defined the definition of service encounter is broad
includes a customer with ,contact employees ,machines , automated systems , physical facilities
,and any service provider visible element .on the web customers engage in service encounter
with business by visiting their web site, navigating through it , searching for product and
service information ,communicating with customer representatives and perhaps purchasing
product and services.

Researchers(Czepiel,1990 ,Gronroos,1990,Moho,and Bitner,1995) believe that the quality of the

interaction between customer and service provider during the service encounter is important
because it is at this level where customer judge the service provided to them .they also agree that
a service encounter is composed of a service outcome(i.e. what the customer receives during the
exchange) and the process of service delivery (i.e. why through which the outcome is delivered
to the customer).

6
They maintain that customer satisfaction with service encounters also known as transactional
satisfaction is a combination of a customer satisfaction with service outcome and customer
service with the process of service delivery.

2.4 Service quality

According to (Clow and Curtz 2003) 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 requirements ,such
as customer satisfaction and its consequent loyalty ,attracting new customers and to increase the
market share and profitability.

Service quality has been defined by in different way by researchers – (Gronroos, 1978) suggest
that service quality is made of two components –technical quality and functional quality.
Technical quality refers to what the service provider delivers during the service provision while
functional quality is how the service employee provides the service.

Parasuraman ET, at (1988) defines service quality as difference between customer expectation of
service and customers perception of the actual service. According to kasper et, at (1999) define
service quality as the degree to which the service offered can satisfy the expectation of the user .
(Zenithal and bitner ,1997 :116) define as service quality is delivery of excellent or superior
service relative to customer expectation . According to these definitions, customers are the sole
judges of service quality.

The organization must learn to think of itself notes producing goods and services but as buying
customers as doing those thing that will make people want to do with in it(Clemmer,1992:25).
Service quality is the major factor contributing to customer satisfaction, however, excellent
service is prerequisite to satisfy customers completely and create loyal customer.

2.4.1 Underlying principles of service quality

According to clow and Kurtz (2003), receiving a high level of service is important to consumers,
but understanding how to evaluate the service quality received is more difficult .Two consumers
receiving what appears to be the exact same service form a company may evaluate the quality the

7
service differently .One consumer may feel the service was good while the other may feel the
service was performed poorly. When discussing service quality the three underling principles
that should be kept in mind are;

1/ service quality is more difficult for the consumer to evaluate the quality of a good,

2/ service quality is based on consumers’ perception of the outcome of the service and their
evaluation of the process by which the service was performed,

3/ service quality perceptions result form a comparison of what the consumer expected prior to
the service and the perceive level of service received.

The process used by consumers in evaluating service differs from the process used for
goods .service tend to be in experience and credence qualities while goods tend to be high in
search qualities. Search qualities are attributes that contributes that consumers can evaluate only
during or after the consumption process while credence qualities are attributes that consumers
have difficulty evaluating even after consumption is complete(Clow ,Kurtz;2003).

2.4.2 Customer perceived value

Perceived value can be defined as a difference between total customer value that a customer
receives from a product or service and total customer cost incurred from assessing ,receiving,
using and getting rid of that product or service(Zeithaml,1998;lovelock,1991;roig et
al,2006).This value cannot be determined by objectively by the service provider ;rather it can
only be perceived by customer who receive the service .

In order to purchase a product or service from a company ,customers will consider and compare
the net customers delivered value as a key decision criteria to select their best service
provider .Therefore ,modern marketing practitioners are more focusing on providing value for
their customer as the key success for their organization(Christopher,2001).

2.4.3 Customer loyalty

According to (Horseman, 1998), there is a strong and positive relationship between customer
satisfaction and customer loyalty. A satisfied customer is more likely to repurchase a product and
share his/her experience with other peoples (Gronroos, 2000; Zari, 2000 ;).Further unsatisfied
8
customers can banish more business from the organization than the other ten satisfied customers
do (Mohasan, 2011).Other several studies have indeed found satisfaction to be a leading factor in
determining loyalty (Sit et al; 2009, Mensah, 2010;) .These studies have concluded that there is a
significant relationship between customer satisfaction and loyalty. They assert that high level of
customer satisfaction will result in increased loyalty for the firm and is positively associated with
repurchase intentions, positive words of mouth, and profitability. On the bases of the above
empirical literatures, customer satisfaction is indicated as a foremost determinant of customer
loyalty.

According to (Caruana, 1999) defined that Service loyalty is the willingness of a customer to
continue to have a service from the same service provider and can be observed from repurchase
behavior or first in mind option even though there are many available options .service loyalty
occurs based on both positive attitude and behavior towards a particular service provider and
helps prevent a customer from switching to another service provider (Caruana, 1999)

For a purchase associated with high risk, either in a form of uncertain service quality or difficult
tasks, customer tends to stick with a company they are loyal to and are willing to pay more for
such service as well as to compensate for a lower risk .Hence ,loyal customers typically create
greater value to company.

Customer loyalty is not created naturally; rather it is created from an integration of close
relationship between service personnel and the customer, understanding of customer needs and
good response and heart fill service.

In order to success in service industry like banks, management tries to develop service and
improve customer satisfaction comparative to its peers. Under a good service relationship chain,
profitability and growth of accompany is a result from customer loyalty, while customer loyalty
is resulted from customer satisfaction, while customer satisfaction is created by customer
perceived value (smith, 2002).

2.5 Internal marketing

9
According to Berry and Parsuraman (1991,p.152)define that internal marketing is process of
handling staff as internal customers and projects as internal products that satisfy the needs and
desires of the customer and adhere to the company’s goal. On the other hand ,(jaworski and
kohli,1993) define that internal marketing is the process promoting the company and its
products to the employees. In other words ,companies in the service industries have to develop
programs that will be addressed to the internal market (their employees)as well as to the external
market or customer(love lock,1991;Gummeson,1994;)

The concept of internal marketing signifies the role of employees in achieving organizational
objectives .employees is the main resource for any service organization. (Retrieved from
internet, December, 2013)

Internal marketing state that the employees of the organization are the first market and final
customer is the second market for the service organization. It is essential to understand and
satisfy the need and wants of employees in order to serve the customer better. Its proven fact that
all over the world only satisfied employees can deliver quality service to customers.

2.5.1 Increasing job satisfaction of service employees

According to (Baron and Harris, 2003, p130-132) states that a basic premise under length the
internal marketing focus is that satisfied employees lead to satisfied customer.

Service employees with high customer contact need to have a very clear understanding of their
role within the organization with in organization.
Service managers are advised to hire individuals who are highly empathetic that is able to take
the view point of another, either customers or follow employees.
Employees need to be trained in how to deal with customers.
Clear lines of command need to be drawn up and communicated between management and
employees.
Employees must be empowered by management to do whatever it takes to satisfy the customers.

The internal marketing approach has been found to have flows from all academic and practical
perceptive .In organization that practice that practice better communications are seen as some of

10
the benefits of the approach .The advocated of internal marketing look to increasing the job
satisfaction of service employees in the belief that it will eventually lead to satisfy customers
(Baron and Harris, 2003:130-132).

2.5.2 Employee satisfaction

According to pierce and Morgan (1991) states that external customer satisfaction cannot be
achieved without the fundamental contribution of the internal customer –contact employees who
provides the service .The front line of employees of the bank interact with the majority of
customers and generally handle a wide range of banking transactions. According to Berry and
Parasuraman (1991,p 151)defined each business should develop internal marketing programs
that would focus on the internal market(employees) in parallel to those for external market
(customers)in order to provide high quality services to its customers continuously.

The marketing of every service organization is to achieve customer satisfaction and customer
retention.

According to (kotler: 1992:123) that the marketing goal can be achieved only when employees
are satisfied. Service organizations should study employees’ expectations and great up the policy
frame work to satisfy them. Employee satisfaction will not only increase employee result in
employee retention but also increase customer satisfaction .The performance of the satisfied
employee result in customer satisfaction and the satisfied customer becomes loyal to the
organization (rao, 2005:137)

Employee job satisfaction may result from role clarification encouragement of approaches,
effective training and clear lines of command. In appropriate serviced environment
empowerment is seen as strategy for increasing both customer satisfaction and employee
enjoyments (retrieved from internet December 2013).

2.6 Measuring customer satisfaction

11
2.6.1 Need for measuring customer satisfaction
In the books marketing management (Kottler, 2000, p: 153) says that, managing customers
satisfaction efficiently is one of the biggest challenge an organization face. The marketing
concept emphasize customer satisfaction yet it is only to last few years that a serious effort has
been made to understand how estate of satisfaction is reached.

Consumers 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 price, major new investments and so on but the ultimate sign of a healthy
company is that its customer satisfaction is the best indicator of the companies’ future benefit.

Methods of measuring customer satisfaction

In the books marketing management (Kottler, 2000, p: 153) says that, managing customers
satisfaction efficiently is one of the biggest challenge an organization face. The tools or methods
to measure customer satisfactions are missing.

Kottler has stated some measurements of customer satisfaction;

i Direct method:

It is directly contacting customers and getting their valuable feedback and is very important .

The followings are some ways by which customers could be directly involved

getting customer feedback through face to face conversation or meeting

direct customer feedback through surveys and questionnaires

12
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 chances to
take corrective measure at correct time .

The following are some ways by which customers could be indirectly involved;

Customer complaint and suggestion box system: are the issues and problems reported by
customer to the service organization with regard to any specific service or product .These
complaints can be classified under different segments according to the severity of complaint.
If the complaints under particular segment go high in a specific period of time then the
performance of the organization is degrading in that specific area or segment, but the
complaints diminish in a specific period of time that means 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 these 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 revisits the service organization
on regular base for purchase, these loyal customer are the satisfied ones and hence they are
bounded with a relationship with the organization. Hence by obtaining the customer loyalty
index, organizations can be indirectly measure customer satisfaction.

13
 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1 Description of study area and population

The study was conducted in Abyssinia bank, which is found in SNNP region, kembata Tembaro
zone at Durame town. This organization is found 666 km from Addis Ababa towards the north
direction and 103 km from Bahirdar towards the north direction. The present-day Bank of
Abyssinia was established on February 15, 1996 (90 years to the day after the first but defunct
private bank was established in 1906 during Emperor Menelik II) in accordance with 1960
Ethiopian commercial code and the Licensing and Supervision of Banking Business
Proclamation No. 84/1994. BOA started its operation with an authorized and paid up capital of
Birr 50 million, and Birr 17.8 million respectively, at that time, the total number of staff was 32
and 131 shareholders.

Currently, the Bank’s subscribed and paid-up capitals reached Birr 4.23 billion and Birr 2.8
billion, respectively while the number of shareholders stood at more than 2,000. Duringlast fiscal
year i.e 2018, the total work force of the bank reaches 5,825. The bank has been expanding its
branch networks and opened more than 330 branches. The number of deposit account holders
reached 1.01 million with a total deposit balance0f Birr 25.79 billion; and outstanding loans and
advances of Birr17.78 billion. The logo is taken from an endemic six petal flower, locally known
as ‘adeyabeba’. Its botanic name is Bidensmacroptera (Sch.Bip.exChiov) Mesfin found in 1984.
The type of the flower is located 38 km East of Robe town, in Bale. The color connotes hope and
peace, signifying bright future for the Bank of Abyssinia in a growing and peaceful economic
environment. Its head office and main branch is Addis Ababa Ethiopia. Abyssinia bank in Debre
Tabor branch, which is located at the center of the town is one of service provider institution in
Ethiopia. It was officially established on May, 2007. Now a day Abyssinia Bank at Debre Tabor
branch address large number of customer with different service such as loan service, adey saving
account, balewuletawoch saving service, time limit service, guaranty service and other technical

14
services. Among them Abyssinia bank is one of the well-known bank in Debre Tabor town.
(www.Abyssinia bank.com).

Vision

- To be the bank of choice for customers, employees and shareholders.

Mission

 To provide customer focused financial services through competent, motivated employees

and modern technology in order to maximize value to all stake holders

3.2. Research design

Research design is the arrangement of condition for collection and analysis of data in manner
that aim to combine relevant to the research purpose with economy in procedure. In this study
descriptive research design is applied because it tries to describe the nature of existing and come
up with appropriate solution. The researcher utilized different research method and material to
assess customer satisfaction in bank service; bank of Abyssinia in Durame branch.

3.3 Source of data

In this study the data is collected from both primary and secondary source of data.

3.3.1 The primary Source of data

The instrument for primary data collection in this research included both questionnaire and
interview questions. The designed questionnaires was distributed to organization`s customers
and the researcher interviewed the manager.

3.3.2 The secondary source of data.

The secondary data collected from written materials such as books, magazines and other bank
documents

3.4 Method of data collection

15
In order to get sufficient and relevant information about the topic under investigation, the study
used both primary and secondary data, the primary data was collected using self-administrated
questionnaires which contains closed ended and open ended questionnaires was distributed to
customers of the organization as well as interview (unstructured) for manager of the bank and
secondary data collected from documents.

3.5 target population

Customers of Abyssinia bank and manager of the bank.

3.6 Sampling technique and sample size determination

Many types of sampling can be used in research. In this the researcher preferred to use simple
random sampling technique because it is clear and simple to understanding and selection of
sample. By which out of 17000 total populations 100 customers were selected. To determine the
sample size the researcher used the formula developed by Yeman in 1967.Because of it is the
most popular and easy to calculate sample size. Which is;
n= N/1+N (e) 2

Where n= sample size

N= Total population

E= errors

Given

N=17000

E =0.1 or 10%

Required

n=?

Solution

16
n=17000/1+17000(0.1)2

n= 17000/1+170

n=17000/171

n= 99.41~100

3.7 Data analysis and presentation

After collecting the relevant data from questionnaires and interview from the manager then this
data analyzed through table and computation of percentages. Data processing involves editing
and classifying the collected raw data in the data analysis .Descriptive analysis is used in the data
analysis because of its simplicity and clarity for percentage of computations and was extensively
employed for analysis purpose.

3.8 Ethical consideration

The researcher was free from unethical behaviorrs such as aggressiveness and hhostility when
getting information from respondents and allowed them as they want. The researcher was polite
to conduct target study and collect information to be delivered to the subject of study only but
the information obtained from respondents in the study kept confidentially.

17
 Chapter four

4. Data presentation, Analysis and interpretation

The study was intended to know assessment of customer satisfaction on BOA in Durame branch.
The required data are expressed based on a quantitative and qualitative way and the study was
collected by using primary data.

4.1 General characteristic of respondents

All the chapter deals with the presentation, analysis and interpretation of data collected on the
assessment of customer satisfaction. The analysis under taken is based on the information
obtained from questionnaires which were distributed to the customer of the of BOA Durame
branch out of 100 questionnaires all of questionnaires were successfully responded and collected
from customer of the bank.

The questionnaires were distributed for 100 customers who were the selected sample of
customers of the organization. Even though the questionnaires were distributed for 100
customers only 93 of them were responded in appropriate manners. So data analysis and
interpretation depends on 93 customers

4.2 Data gathering from customer

Questions were distributed to 100 customers of the bank and all customers have filled the
questionnaire prepared and returned for subsequent analysis.

Table 4.1 sex of respondents

No item respondents
no Percentage (%)
1 sex
male 60 64
female 33 36
total 93 100
Source; from questionnaires
18
As it can be seen from the table 4.1 64% of the customers are male and the remaining 36% of the
customer are females. Based on this data the majority of customers are males.

Table 4.2 ages of respondents

no item respondents
No Percentage (%)
1 age
18-25 10 11
26-35 44 47
36-45 24 26
above 45 15 16
total 93 100
Source; from questionnaires

According to the table 4.2 regarding age, 11% of the respondents were between age 18-25, 47%
of them are between 26-35 years, 26% of respondents of customer are age between 36-45 and
16% of respondents are above age 45.Based on this data between age 26-35 years take the
majority of population.

Table 4.3 Educational status

no Item respondents
No Percentage (%)
1 Educational
status
illiterate - -
elementary 15 16
High school 20 22
certificate 11 12
diploma 17 18
degree 30 32

19
 above - -
total 93 100
Source; from questionnaire

As it can seen from table 4.3 regarding about educational level of the respondents, out of all 16%
of the respondents are studied elementary school, 23% of the respondents are learned up to high
school , 18% respondents are diploma graduates,32% of them are degree level .Based on this the
majority of the respondents hold degree in educational level Table 4.4 types of services

no item respondents
No Percentage%
1 What type of services
Are you get from the BOA branch ?
A money transfer 26 28
Money deposit 62 67
credit 5 5
others - -
total 93 100
Source; from questionnaires

As it can seen from the above table regarding types of services, 28% of respondents get money
transfer, 67% of respondents get money deposit and 5% of respondents get credit from the bank.
in general the table shows that majority of respondents use the bank for the purpose of money
deposit.

20
Table 4.5 the banks equipment quality

no Item respondents
No Percentage%
1 How do you see the quality of equipment in
BOA Durame branch?
Very good 16 17
good 34 37
Average 40 43
poor 3 3
Very poor - -
total 93 100
Source; from questionnaires

According to the above table the researcher observed, that of the respondents, 17% of
respondents said quality of equipment in the bank is very good,37% of them said good in quality
of equipment,44% of them said average and 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 services

No item respondents
No Percentage %
1 Why do you choose BOA Durame
than the other branches?
Location 50 54
Security 30 32
Technology 13 14
Others - -
Total 93 100
Source; from questionnaires

21
As the above table shows that 54% of respondents replied that they prefer to use the service
because of location, 30% of respondents choose this branch because of security and 14% of
respondents choose because of technology. Based on the data majority of respondents choose the
branch because of location.

Table 4.7 service delivery level of the bank

no Item Respondents
No Percentage%
How do see service delivery level
of BOA Durame branch?
Very good 27 29
Good 40 43
Average 21 23
Poor 5 5
Very poor -
total 93 100
Source; from questionnaires

According to the table as it can see in the above regarding service delivery level of the bank 29%
respondents replied that service delivery of the bank is very good, 43% of them says good, 23%
of them says average and 5% of the respondents says poor. Based on this information on the
table majority of respondents replied that service delivery level of the bank is good.

22
Table 4.8 the time to get services

No Item respondents
No Percentage %
How long does it take to
get Service?
Below 5 minute 16 17
5-15 minute 44 48
16-30 minute 15 16
31-45 minute 13 14
Above 5 5
Total 93 100
Source; from questionnaires

According to the above table 17% of respondents waiting to get services below 5 minutes, 48%
of the respondents wait 5-15 minutes to get services,16% of them wait 16-30 minutes to get
services ,14% of respondents wait 31-45 minute to get services and 5% 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.

Table 4.9 ability of employee to give services

No Item Respondent
s
No Percentage (%)
How do you rate the ability
of Employee to give
service?
Very high 19 20
High 34 37
Medium 38 41
Low 2 2
Very low - -
total 93 100
Source; from questionnaires

23
According to the table 4.9 regarding employees ability to give services 20% respondents said
that the ability of employee to give services is very high, 37% of respondents says high, 41% of
them says medium and 2% of respondents says low. Based on this data the majority of customer
or respondents replied that the ability of employees to give services is medium.

Table 4.10 effort of employees to create good relation with customer

No Item responde
nts
No Percentag
e (%)
How do you see effort of employees to
Create good relation with customer?
Very good 12 13
Good 28 30
Average 50 54
Poor 3 3
Very poor - -
total 93 100
Source; from questionnaires

According to table 4.10: 13% of respondent replies that effort of employee is very good to create
relationship with customer, 30% of respondents says good, 54% of them says average the and
3% of respondents replies poor.

Based on the above table, the majority of respondent’s replies that, effort of employees to create
good relationship with customer is average.

24
Table 4.11 service sufficiency of the bank

No Item Respondents

No Percentage (%)
1 Do you think that the bank
service is sufficient?
yes 67 72
no 26 28
total 93 100
Source; from questionnaires

According to table 4.11 regarding service sufficiency of the bank the respondent asked either the
bank service is sufficient or not, 72% of customer says yes and the remaining 28% of them says
Based on data the majority of respondents says yes

From the open ended question the researcher was asked the respondents that says the is bank
services sufficient?. Based on the question the respondent says no because:

- Customers demand increases from time to time

- The branch and the customers is not balanced
- There is no enough modern technology
- And also the existing technologies are not operated fully

Also the other open ended question that the researcher was asked to the respondents;

what is your suggestion or comment that helps the bank to avoid those complaints? And the
customer says the following comments;

The bank should expand customer service officer;

- The bank should recruit and select qualified staff ;

- The bank should give training for employees when new technologies enter in to the bank and
- The bank should work hard on relationship marketing.

25
 Interview response from manager of the bank
1 /what method does the organization use in order to assess customer need?
The replied that the organization used complaint and suggestion box system to know the
complaint and then solve those problems that are raised by customer.
2/ How do you manage the customer complaint?
The manager replied that; first the bank collects the complaint, second discuss it with main
personnel of the organization about the complaint and identify whether the problem is exist
or not, and then if the problem is found in the organization they take appropriate measures to
resolve the existing problems.
3 / Is their training program for employees?

Manager answered that the bank has not independent training for employees, but where needed
the organization sends the target persons who should participate in the training program.

26
 CHAPTER FIVE
5. Summary, conclusion and recommendation

This chapter deals with summery, conclusion and recommendation that are examined in
chapter four .in the First summery of finding are presented to put the major findings of the
study, second a general conclusion of the major finding is given and lastly recommendation
for problem seen in the finding is given.
5.1 Summary
Based on the detail analysis made in the preceding chapter the following major findings of
the study have been summarized as follows;
- The study result shows that the majority (64%)of the respondents are male and the age of
majority of customer are between 26-35 years;
- According to the response given by respondents 32% of them are completed degree in
educational level;
- Majority of the respondents used the bank for the purpose of money deposit services;
- According to the response most of the respondent 44% replied that see the quality of the bank
equipment is average;
- Most of the respondents replied that they choose the branch because of location;
- Majority of the customers (43%) response shows that the service delivery level of the bank is
at a good level;
- According to customers response majority of them waiting 5-15 minutes to get services;
- 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 it exists and
there is not independent training program for employees, but if needed the bank sends target
personnel to participate in training.

27
 5.2 conclusions
From data analysis and summery the following conclusions are presented.
- The highest number of respondents were male by 62% i.e. it takes the majority of the bank
population ;similarly in age distribution the maximum number of customers visiting the
bank was % between 26-35 years;
- The majority of customer choose BOA for location because they minimized distance for
customer ;
- The organization take more than 5 minutes to serve one customer because of the bank has not
enough customer service officer ;
- The customer money deposit services from the organization because of the banks safety;
- The organization prepared the way of customer complaint handling mechanism to knows his
feedback;
- The employee of the bank were able to create good relation with customer and customer and
could design the service by incorporating customer voice;
- The findings reinforce much of the existing literatures in staff satisfaction and service quality
are found to be key drivers of customer satisfaction ;
- Effort of employee to create good relationship in service delivery process is not fully
acceptable by customers;
- The banks do not fulfill the needs of some customers; .

28
 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 driven 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 BOA Durame branch.

- The deviation between customer expectation and actual time they spent for getting service is
high ,thus the bank should assign enough employees to minimize time;
- The bank should try to give its best services in order to meet the customer satisfaction ;
- The bank should install more ATMs at various locations to provide round the clock access to
customers ;
- The bank should work hard on relationship marketing to improve the customers service skill
of employees ;
- All staff employees of the bank should understand the performance of the bank is directly
related linked with customer satisfaction;
- The bank should put effort in dealing with customer satisfaction through an expanding
technologies and sub branches

29
 References
Kotler, Philip (1998), marketing management; 9th edition, New Delhi, India.

Kotler, Philip (2004). Principle of marketing (10th ed), view weli

Mcneill Debra j. (1994) customer service excellent, new work

Zeithmal van and Bitner J.M (1997) Service marketing integrated customer focus across the
firm (2nd ed) new work.

k. Hoffman and Batteson. (2011). Service Marketing concepts, starategies and cases . Mason,
OH 45040 USA: South-Western, a part of Cengage Learning.

Lin 2003 critical appraisal of customer satisfaction and e-commerce;managerial auditing journal
18(3): 202-212

McNeely (2001).Marketing Management. ( 1sted).Nyer, (200).

Mothey, L.B. (2007). The one two punch in marketing strategy: Bank marketing.26,80-84

Palmer A, (2008). Principles of services marketing. Sthed. London: MC Graw-Hill.

Philip Kotler (2003). Principle of marketing.10th edition, Prentice Hall of India Private Limited

Parasuraman (2000).A Conceptual Model of Service Quality and Its Implications for Future
Research. Journal of Marketing.

Smith,R.E.andW.F.Wright(2007),DeterminantsofCustomerLoyaltyand

FinancialPerformance,”JournalofManagementAccountingResearch,16(SpecialIssue),pp.183-205.

Siddiqi and Kazi, O., (2011). Interrelations between Service Qualities Attributes, Customer
Satisfaction and Customer Loyalty in the Retail Banking Sector in Bangladesh. International
Journal of Business and Management Vol. 6, No. 3.

30
Sureschchander, Gs.S. ,Rajendran, C and Anatharaman, R.N, (2002). The relationship between
service quality and customer satisfaction: a factor specific approach. Journal of services
Marketing, 16(4) 365-79

Yemane,Taro.1967.Statistics:AnIntroductoryAnalysis,2ndEd,NewYork.

Yonatan Gebre (2010) Customers Perception of Service Quality: in Ethiopia Banking Sector,
MA Thesis, Addis Ababa University.

Anderson, E., &Cornell, C. (2000).Foundations of the American customer satisfaction index

total
Quality Management.
Batteson. (2011). Service Marketing concepts, starategies and cases. Mason, OH 45040
USA: South-Western, a part of Cengage Learning.
Bolton,RuthN.andJamesH.Drew(2011),"AMulti-StageModelofCustomers'
AssessmentsofServiceQualityandValue"JournalofConsumerResearch,17(4),1991,375-384.

Bruhn, M, Egan (2003). Relationship marketing management of customer relationships with

Clemes, m.d. (2008). an empirical analysis of customer satisfaction in international air ravel,
Innovative marketing, 4: 49-62.

Collart, D. (2000), customer relationship management, New York.

Daniel O. Auka. (2012). Service quality, Satisfaction, Perceived value and Loyalty among
Customers in Commercial Banking in Nakuru Municipality, Kenya. African Journal of
Marketing Management Vol. 4(5), pp.185-203.

Hansemark, O.c. & Albinson, M., (2004) customer satisfaction and Retention: The Experiences
of individual with Employees managing service quality, Vol, 14(1)

Hill, N.etal. (2007).Customer satisfaction: The customer experience through the customers eyes.
London cogent publishing Ltd.

31
 APPENDIX

Wachemo University Durame Campus

College of business and economics

Department of management
Questionnaire to be filled by customer
Dear respondents
The purpose of this questionnaire is to gather adequate information on bank of Abyssinia from
customer of Durame branch.
In order to make the study more fruit full your thoughtful response to the given questions will be
necessary. All of your response will be used only for academic purpose and kept confidential.
A/ please do not write your name
B/ for objective questions circle the one you feel is correct
C/ for subjective questions try to give short and precise response by writing on the space
provided
General characteristics of respondents
1. Sex
A. male B. Female
2. Age
A. 18-25 B. 26-35 C 37-45 D above45
3/ Educational status
A. illiterate C high school E. diploma G above degree
B. elementary D. Certificate F. Degree
4 / what type of services you get from the bank of Abyssinia Durame branch?
A money transfer B money deposit C credit D other, specify-----------
5/ How do you see quality of equipment of bank of Abyssinia Durame branch?
A very good B good C average D poor E very poor
6/why do you choose bank of Abyssinia Durame branch than the other banks?
A location C technology

32
B security D other, specify-------
7/How do you see service delivery level of bank of Abyssinia Durame branch?
A very good C average E very poor
B good D poor
8/How long time it takes to get services?
A below 5 minutes C 16-30 E above
B 5-15 minutes D 31-45
9/How do you measure the ability of employee to give services?
A very high C medium E very low
B high D low
10 /How do you see effort of employee to create good relationship with customer?
A very good C average E very poor
B good D poor
11/Do you think that the bank service is sufficient?
A yes B no
12/ If your answer to question number ''11'' is no what is the reason?
Describe the service that you get from the
bank---------------------------------------------------------------------------------------------------------------
-------------------------------------------------------
13/ what is your suggestion or comment helps to avoid those complaints?
---------------------------------------------------------------------------------------------------------------------
-------------------------

33
GENERAL INSTRUCTION;
Dear respondent please put your level of agreement about the following statements by using the
following scales which is represented by numbers from 1 up to 5; (1) = Strongly disagree (2)
Disagree (3) Neutral (4) Agree (5) Strongly agree
NO Items Strongly Disagree Neutral Agree Strongly
Disagree Agree
1 2 3 4 5
BOA has
modern
1. technologies
The operation
and speed of
the facilities
within the
2. bank is
convenience
BOA performs
the service
right the first
3. time

Employees in
BOA are
helpful to
4. customers
BOA provide
customers with
appropriate
and educate
5. waiting place
BOA has a
system for
dealing with
customer
6. complaints
I am satisfied
with the
service of this

34
7. bank
The service
conditions of
this bank are
8. excellent
The service
provided by
BOA is good
9. enough
In most ways
the service
level of the
bank is less
than my
10. expectation

***************************** Thank you*************************************

INTERVIEW QESTIONS
1. What are the internal and external factor that affect customer of your bank?
2. How your organization handle customer complaint?
3. How do you evaluate customer satisfaction in your organization?
4. Do you think the service delivery of your organization enough to satisfy customer?

35