MADDA WALABU UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANEGMENT

FACTORS AFFECTING BANK CUSTOMER SATISFACTION (IN

CASE OF DASHEN BANK IN ROBE BRANCH).

RESEARCH PROPOSAL PRESENTED IN PARTIAL

FULLFILMENT OF THE REQUIREMENT FOR DEGREE OF
BACHELOR OF MANEGMENT

PREPARED BY:

ASHEBIRE LAKEW.……………….ID UGR/4432/11

ADVISOR: ABEBE SEBOKA

JULY, 2021

BALE-ROBE/ETHIOPIA
ACKNOWLEDGEMENT
First and for most, I would like to thank my almighty GOD for his protection and help
me at every steps of my life and success in my work.

Next, my deepest gratitude was my advisor Abebe Seboka (MA) for his advice and
guidance during the entire period of my study, without his support this would not have
been finalized.

Lastly, I would like to thank my families to providing me financial and moral support to
accomplish the study successfully and at the end my gratitude was to those respondents
for their honest responses to the questioner prepared for awarded by the researcher
during data collection

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Table of Contents
ACKNOWLEDGEMENT...................................................................................................ii
ABSTRACT.......................................................................................................................iii
CHAPTER ONE..................................................................................................................1
INTRODUCTION...............................................................................................................1
1.1 Background of the study................................................................................................1
1.2 Statement of the problem...............................................................................................3
1.3 Objective of the study....................................................................................................4
1.3.1 General objective........................................................................................................4
1.3.2 Specific objective........................................................................................................4
1.4 Significance of the study...............................................................................................4
1.5 Scope of the study..........................................................................................................5
1.6 Organization to the research..........................................................................................5
CHAPTER TWO.................................................................................................................6
RELATED LITERATURE REVIEW.................................................................................6
2.1History of banks in Ethiopia...........................................................................................6
2.2.1 Objectives of customer satisfaction surveying program.............................................7
2.2.2 Good customer service...............................................................................................8
2.2.3 Importance of customer satisfaction...........................................................................8
2.2.4 Benefits of customer satisfaction..............................................................................10
2.2.5 Measuring customer satisfaction..............................................................................10
2.3 Understanding customer satisfaction rating.................................................................11
2.4 Factors influencing customer satisfaction ratings........................................................12
2.4.1 Customer are genuinely satisfied..............................................................................12
2.5 Customer retention.......................................................................................................12
2.5.1 The importance of customer retention......................................................................13
2.6 Important of Customers Satisfaction...........................................................................13
2.7 Customer Satisfaction objective and Strategies...........................................................14
2.9 Empirical literature......................................................................................................15

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CHAPTER THREE...........................................................................................................17
METHODOLOGY............................................................................................................17
3.1 Research design...........................................................................................................17
3.2 Sampling design and Sample size................................................................................17
3.3 Source of data..............................................................................................................17
3.4 Methods of data collection tools..................................................................................18
CHAPTER FOUR.............................................................................................................19
DATA ANALYSIS AND INTERPRETATION...............................................................19
4.1 Demographic profile of respondents...........................................................................19
4.2 Service dimension........................................................................................................21
4.3 Customer satisfaction...................................................................................................23
4.4 Customer expectation from the bank...........................................................................26
CHAPTER FIVE...............................................................................................................30
FINDINGS, CONCLUSION AND RECOMMENDATIONS..........................................30
5.1 Findings.......................................................................................................................30
5.2 Conclusion...................................................................................................................31
5.3 Recommendations........................................................................................................32
References..........................................................................................................................33
APPENDIX........................................................................................................................34

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ABSTRACT

The study was investigating factors affecting banks customer satisfaction particularly on
Dashen bank in Robe branch. The study was investigating the major factors affecting
banks customer satisfaction. The data used for the study included primary and secondary
data. For the study both an open and closed ended questionnaire was used and data from
primary sources was analyzed through qualitative description whereas secondary data
was obtained from documents, magazine and internet. The study was use simple random
sampling technique method and the sample size of the study was 100 customers. After
collecting the data collection, the collect data was analyzed by using descriptive statistics
like percentage and tabulation.

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1
CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Customer satisfaction is the extent to which service provide performance matches a user
expectation, it is one of the most studied areas in marketing, if the service performance
falls a short of expectation the user is dissatisfied. If the performance matches exceed
expectation the user is satisfied (Kotler p., 1996, p. 401).

Customer service is giving what we promised on time, it rates to everything a company

does to satisfy its customers and to help realize the greatest possible value form the goods
and service they are purchasing. It is the action company can take to demanded value to
the basic goods and service. Companies can achieve customer satisfaction by providing
quality service to their customers. Customer are motivated to remain as customer when
they use the kind of service needed and have the excellence experience moreover
customers reduce risk, save time, find reap social and other benefits by forming
relationship with the company.

According to (Harvard business review, 1995) customer satisfaction is a measure of

degree to which a product or service meets the customers’ expectations. Measuring
customer’s satisfaction also enables a business to determine the companies’ strength’s
and weakness and identify new markets that increase its customer base measuring
customer satisfaction is an essential form of determines how the business reaches its
target and goals.

The link between customer satisfaction and customer loyalty is not proportional. Suppose
customer satisfaction is related on a scale from one of five. At a very low level of
customer satisfaction (level one), customers are likely to abandon the company and even
bad mouth it. At level two to four, customers are likely to abandon the company and even
bad mouth it. At level two to four, customers are fairly satisfied but still find it easy to
switch when a better offer comes along. At level five, the customers are very likely to
repurchase and even spread good word of mouth about the company. High satisfaction or
1
delight creates an emotional bond with the brand or company, not just a rational
preference.

This refers to the evaluation of a product or service in term of weather the product or
service has meet the customer’s needs and expectation fowler to meet their need and
expectation is assumed to result in dissatisfaction with the product to service
(Zeittiational and Blither 1998) kotler (2001) observes that customer satisfaction depends
on a product proved performance in delivering value reactive to buyers expectations. If
the product performance falls short of customer expectations the buyer is dissatisfied
outstanding marketing compacts go out of their way to keep their customer satisfied they
know that satisfied customers make repeat purchase and they fell others about their food
expedience with the product.

Bcuunywa (1992) states that to find out whether you are giving better service ask the
customer the early computers were slow compared to those of present this has enabled
banks to handle increased number of customer and chaperoning find in information
technology this has changed the cattier of banking to automation. According to protest
(1995) customer satisfaction is repletion of organizational competency or capability in
the delivery of service to the customer.

Consequently satisfying customers is not an impossible task, in fact meeting and

exceeding customer expectation may reap severally valuable benefits for the firm,
positive matches generating from existing customers often translate into more new
customers. Customers are often willing to pay more and stay with the firm that meets
their needs than to take the risk associated with moving to a lower price service offering.
(Hoffman K.; 2000)

Consequently satisfying customers is not an impossible task, in fact meeting and

exceeding customer expectation may reap severally valuable benefits for the firm,
positive matches generating from existing customers often translate into more new
customers. Customers are often willing to pay more and stay with the firm that meets
their needs than to take the risk associated with moving to a lower price service offering.
(Hoffman K.; 2000)

2
Generally in order to maintain the company profitability it should be more emphasis on
the degree of customer satisfaction. (Kotler; 1996, p. 392).

1.2 Statement of the problem

Customer satisfaction has a vital impact on achieving the company objective.
Investigation of the overall practices and factors influencing customer satisfaction within
Dashen bank is the concern of the paper.

Customer satisfaction is important for banks to be competent with the other bank.
According to (Kotler 2000) customer’s services is an act or performance that one party
can offer to another that is essentially intangible and doesn’t resort in the ownership of
anything. Today we are living an environment which is computation exists. As a result
most organization should work for the satisfaction and delights of customers by realizing
that satisfied customers are most laky loyal and will make repeated order to wide range of
service offered by a business (Philip Kotler 1994).

However in our country Ethiopia, most of the existing organization have little
understanding and practice on the impact of service delivery in their customer
satisfaction.

Dashen bank is one type of service providing organization which has many branches in
Ethiopia one of its branches is found in Robe city this bank is known by providing
different service. But the customer of the bank is not fully satisfied because of the
following problems Dashen bank do not provide adequate loan, customers are not fully
aware about the banks service, problem related to collection of the loan, lack of adequate
professionals.

Beside these problems, there are slogans like customer is a king, customers are always
right etc. But these motto are not shared and well communicated to all employees of the
banks, as a result some employees lack good customer service handling. These are the
problems of the bank which motivates the researcher to conduct research work in this
bank.

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The major research questions that the research paper will address are;

1. What are the factors which affect customer satisfaction in Dashen bank?
2. What is the current level of customer satisfaction at Dashen bank?
3. How the bank can maximize its customer satisfaction?

1.3 Objective of the study

1.3.1 General objective

The general objective of this study is to investigate factors affecting banks customer
satisfaction particularly on Dashen bank Robe branch.

1.3.2 Specific objective

1. To identify the various elements which positively influence customer satisfaction
in Dashen bank?
2. To find out problems in Dashen bank services provision.
3. To identify the level of customer satisfaction in the study area.

1.4 Significance of the study

This study help to know about the factors that affect bank customer satisfaction in
Dashen bank Robe town.

 The bank may benefit from the findings that it gives lessons by showing its weak
fronts in terms of satisfying customers.
 This study enables the researcher in acquiring academic fulfillment for
graduation. The study will serve as reference and documents for related works of
others.
 It provides insights for potential researchers who would like carry out another
similar research.
 In addition to the above advantages, it may provide concrete information for
readers about factors influencing customer satisfaction.

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1.5 Scope of the study
The scope of the study focuses on the factors affecting bank customer satisfaction in case
of Dashen bank at Robe branch. Even though will happy to do the study in all banks at
all, but due to shortage of time and financial resources the study is limited to the specified
town and bank.

This study explores Dashen bank’s customer satisfaction. It doesn’t indicate customer
satisfaction in other banks and other issues were not dealt.

1.6 Organization to the research

The rest of the paper has been organized as follows. chapter one includes introduction
part, chapter two discuss previous works made on change management(review literature)
section, chapter three is about design and methodology of the study , and chapter four is
about the presentation and interpretation of the data, the final chapter (chapter five)
discusses the conclusion and recommendation section.

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CHAPTER TWO

RELATED LITERATURE REVIEW

2.1History of banks in Ethiopia

Modern banking in Ethiopia is gain in 1905 with the bank of Abyssinia, a private
company controlled by the bank of Egypt. In 1931 it was liquidated and replaced by the
bank of Ethiopia which was the bank of issue until the Italian invasion of 1936. During
the Italian occupation bank of Italia bank notes formed the legal tender, under the
subsequent British occupation; Ethiopia was briefly a part of the east Africa currency
board. In 1943, the state bank of Ethiopia was established, with two departments
performing the separate function of an issuing bank and commercial bank.

In 1963 these function were formally separated and national bank of Ethiopia were
formed and the central bank. Commercial bank of Ethiopia were formed in the period to
1974 several other financial institution emerged including the state owned.

The agriculture and industrial development bank /established largely to finance state
owned enterprises. The saving and mortgage corporation of Ethiopia. The imperial
savings and home ownership public association. (http://www.nbe.gov.et/history.htm/

2.2 Define customer satisfaction

Customer satisfaction is the state of mind that customers are about a company when their
expectations have been meeting or exceeded over the life time of the product or service.
The achievement of customer satisfaction leads to a company loyalty and product
repurchase. There are some important implications of these definitions.

1. Because customer satisfaction is subjunctive’s non quantitative state,

measurement, want be exact and will require sampling and statically analysis
2. Customer satisfaction measurement must be undertaken with an understanding of
the gap between customer expectations and attribute performance perceptions.

6
 3. There should be the connection between customer satisfaction measurement and
bottom line results.

Each industry could add to this list according to the nature of the business and the
specific relationship with the customer, customer satisfaction measurement variables will
differ depending on what types of satisfaction is being researched.

Clearly defining and understanding customer satisfaction can help any company identify
opportunities for product and service innovation and serve as the basis for performance
appraisal and reward system. It can also serve as the basis for customer satisfaction
surveying program that can insure that quality improvement effort sere properly focused
on issues that are most important to the customer.
(http://www.enwikipedia.org/wiki/customer satisfaction/

2.2.1 Objectives of customer satisfaction surveying program

In addition to a clear statement defining customer satisfaction, any successful surveying
program must have a clear set of objectives that on a meet, will lend to improved
performance. The most basic objectives that should be meeting by any surveying
program include the following:

A. Understanding the expectation and requirements of any your customers

B. Determining how well your company and its compotators are satisfying these
expectations
C. Developing service and product standards based on your findings
D. Examining trends over time in order to take action on time basis.

Carful’s consideration must be given to hit the organization hopes to accomplish, how the
results will be disseminated to various parts of the organization and how the information
will be used. Conducting customer satisfaction surveying programs burden on the
organization and its customer in terms of time and resource.

There is no point in engaging in this work unless it has been thoughtfully designed so that
only relevant and important information is gathered. This information must as; low the

7
organization to take direct action. Nothing is more frustrating than having information
that indicates problems exist but fails to the specific cause.

2.2.2 Good customer service

Good customer service is a life blood of any business, you can offer promotions and slash
prices to bring in as many new customers as you want, but unless you can get some of
those customers to come back, your business won’t be profitable long.

Good customer service is all about bringing customers back and about sending them
away happy-happy enough to pass positive feedback about your business along to others,
who may them try to the product or service you offer for them and in their turn repeat
customers. If you are a good sales person you can sell anything to anyone. Bu tit will be
your approach to customer service that determines whether or not you will ever be able to
sell that person anything else. (http://www.sabintocanda. about.com/bio)

2.2.3 Importance of customer satisfaction

The importance of customer satisfaction cannot be overstated without customers the
service firm has no reason to exist. Every service business needs to proactively define
and measure customer satisfaction. It is native to wait for customers to complain in order
to identify problems in service delivery system ort to gauge the firms progress in
customer satisfaction based on the number of complaints received. Consider the
following figures gathered by the technical assistance research program (TARP).

The average business does not hear form 96 percent of its unhappy customers. For every
compliant received 26 customers actually have the same problem. The average person
with a problem tells gar 10 people, thirteen percent will tell more than 20. Customers
who have their complaints satisfactory resolved tell an average of five people about the
treatment they received. Complainers are more likely to do business with you again than
non-complainers. 54-70 percent it resolved at all and 95 percent if handled quickly. The
TARP figure demonstrates that customer do not actively complains to service firms

8
themselves instead customer value their dissatisfaction with their fad, by defecting its
competitor and with their mouth, by talking your existing and potential customers exactly
how they were miss treated by you firm. Based on the TARP figures, a firm that serves
100 customers per weak and boats ago percent customer satisfaction rating will be the
object of thousands of negative stories by the end a year. For example, if 10 dissatisfied
customers per weak tell 10 of their friends of the poor service. Received by the end of the
year (52 week) 5200 negative word of mouth communication will have been generated.

The TARP figures are not all bad news firm the objectives of positive word of mouth
communication. Although positive stories can ultimately translate into customer loyalty
and new customers. A firm should also learn for the TARP figures that complains are the
firm’s friends. Complainers are a free source of market information and the complaints
themselves should be viewed as opportunities for the firm to improve its delivery system,
not as a source of irrigation.

 Normative deficit definitions: compares actual outcomes to those that are

culturally acceptable.
 Equity definition: compares gains in a social exchange if the gains are in equal the
loser is dissatisfied.

Normative standard definition: expectations are based on what the consumer believes
he/.she should relieve dissatisfaction occurs when the actual outcome is different for
standard expectation. Procedural fairness definition: satisfaction is a function of the
consumer being that he/she treated fairly. Expectancy disconfirmation model: model
proposing the comparing customer expectations to their perception leads customer to
have their expectations confirmed or disconfirmed.

 Confirmed expectations: customer expectations that match customer perception.

 Disconfirmed expectations: customer expectations that don’t match customer
perception.
 Negative disconfirmation: anon match because customer perception is lower than
customer expectations.

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  Positive disconfirmation: Anon match because customer perception exceeds
customer expectations. (Thomason service marketing 3rd, p. 300-041)

2.2.4 Benefits of customer satisfaction

Although some may argue that customers are unreasonable at times, little evidence can be
found of extravagant customer expectations. Consequently satisfying customers is into an
impossible task. In fact meeting and exceeding customer expectations may reap several
valuable benefits for the firm. Positive words of math generated from existing customers
often translate into more new customers. For example, consider the positive publicity
generated for the firms listed in the top 10 most admired companies. Satisfied current
customer often purchase more products more frequently and are less likely to competitors
that are dissatisfied customers.

Companies who command high customer satisfactory rating also seem to have the ability
to instate themselves from competitive pressures, particularly price competition.
Customers are often willing to pay more and stay with a firm that meets their needs then
to take the risk associated with moving to a lower priced service offering.

Finally, firms that pride themselves on their customer satisfaction efforts generally
provide better environments in which to work within these positive work environments,
organizational cultures develop where employees are challenged to perform and rewarded
for their efforts customer satisfaction survey’s also provide several worthwhile benefits
such survey’s provide a formal means of customer feedback to the firm, which may
identify existing and potential problems, satisfaction surveys also convey the message to
customers that the firms cares about their wellbeing and values customer input
concerning its operations. However, the replacement of customer feedback forms by
some companies makes customers wonder if they really want the feedback (Thomson
service marketing 2nd edition p. 866-07).

2.2.5 Measuring customer satisfaction

Measures of customer satisfaction are delivered via indirect and direct measures. Indirect
measures of customer satisfaction include tracking and monitoring was records profits
and customer complaints firms that rely solely on indirect measures are taking a passive
10
approach to determining whether customer perceptions are meeting or exceeding
customer expectations. More over if the average firm does not hear from 96% of its
unhappy customers it is lowering a great many customer while waiting for the other 4
percent to speak their minds. Direct measurements of satisfaction are generally obtained
via customer satisfaction service, however today the least customer satisfaction service is
not hundred among firms. For example the scales use to collect the data varies (e.g. is
point to 100 scales) question asked to reproduce very long goal to specific questions and
ditch collection method vary (e.g. personal interview to self-administered questionnaires)
(Hoffman K., 2001, 2ndedition, p. 299).

A five point scale which is typically labeled utilizing the following formed:

A. Very dissatisfied
B. Somewhat dissatisfied
C. Neutral
D. Somewhat satisfied
E. Very satisfied

Firms utilize this format general combine the percentage of “somewhat satisfied and very
satisfied responses to arrive of satisfaction rating. Similarly, firms that utilize also point
scale with anchor points “very dissatisfied” and very satisfied” define customer
satisfaction as the percentage of customers rating their satisfaction higher than 6. This is
exactly the problem federal express encountered which it set up first customer
satisfaction was measure on a 100 point scale and transaction success was defined as
whether the package actually arrived the next day. Up on further qualitative examination,
federal express determined that transaction success as defined by the customer was too
much broader concepts (Thomson service marketing 3rd edition p. 307.

2.3 Understanding customer satisfaction rating

After a consultant conducted a customer satisfaction survey for regional engineering firm,
the result related to upper management were that the firm commanded upper management
wonted to know whether is present was “a good” satisfaction rating or not, to effectively
utilize customer satisfaction rating, it is necessary to understand the factor that my

11
influence customer responses. Despite the lack of standardization among satisfaction
studies, they share on common characteristics. “Virtually all self-report of customer
satisfaction processes a distribution I which a majority of the responses indicate the
customers are satisfied and the distribution itself is negatively skewed.

2.4 Factors influencing customer satisfaction ratings

Satisfaction ratings may be influenced by numerous confiding factors that occur during
the data collection process. The following section provides expeditions for inflated
satisfaction result and reinforces the main that obtaining concurrent measurement of
customer satisfaction is not an easily accomplished task.

2.4.1 Customer are genuinely satisfied

One possible reason for high satisfaction corral is simple the customer are satisfied with
the good and service they typically purchase and consumer that why they buy these
product form the firm in the first place; indicatively who make good tense. If the majority
of customers were neutral or dissatisfied, they would most likely direct to the
competitive.

2.5 Customer retention

Customer retention focusing the firms marketing efforts towards the existing customer
base. More specifically in contrast to seeing new customers, firms engaged in a customer
retention effort work to satisfy existing customers with the intent of developing long term
relationship between the firm and its carried client for the purpose for browning the
business many example of successful customer retention efforts are based on the firm’s
ability to redefine its existing customer companies are challenged themselves, now more
than ever before, to look at what the product really provides to their customer,
understanding consumption uses of the product and the steps required by consumers to
obtain the product often leads to ideal that a visits the firm in differentiating itself from its
competition (Hoffman K. (2001) 2nd edition).

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2.5.1 The importance of customer retention
Customer retention has become increasingly important because of several changes in the
marketing environment. Reason customer retention has become important to today;
marketers are the increase in competition. A factor contributing to increase completion
includes the relative partly and lack of differential advantage of goods and services in an
up on marked.

2.6 Important of Customers Satisfaction

The important of customer satisfaction is apparent when you reality that without
customer satisfaction is a parent when you realities that without customer, you donate
have a business: a single UN satisfied customer can send more business way from your
company than satisfied customers.

Customer satisfaction is important for the following reasons?

1. To Understand the Needs of the Customer

A business relationship, just like any other relationship relies on both people getting their
needs and wants to meet. Customers do not want to get the impression that they are just
being used by you for money. Smaller interactions like “Thank You” and anise smile can
go a long way towards customer satisfaction.

2. To make sure Employees Operation With the Same Principle

A big part of customer satisfaction is reliability. If customers come to expect a certain

mode of behavior from you and your employees, you should deliver it to them each and
every time. By training employees to treat all customers with the same respect, customers
will or, have the same experience with your company, which will increase customer sat is
faction.

3. To be Honest When you donate me Expectation

The phrase the customer is always right is at the care of a good customer satisfaction
strategy. It doesn’t matter whether or not the customer misread the instructions or made
the mistake: employee should take the steps to make the customer happy

13
 4. It is also the foundation of a good business

Satisfied customers will make a great foundation for return business and they maxi also
bringing in their friends and associates. Logically, customers are the heart of any
business.

2.7 Customer Satisfaction objective and Strategies

The most widely pursued customer satisfaction objectives are the following?

 Achieving a high quality offering

 Achieving a high level of productivity

 To differentiate the service rendering

 To retain the current customers

The strategies that can be taken to fulfill the above objectives are:

 Providing training those of employs

 Material maintaining and creating service

 Accepting and respecting customer suggestions

 Develop principles of standardization for service rendering system.

Models are important for the purpose of identifying customer satisfaction exactly. The
service rendering company should clearly identify customer models in order to conduct
sustainable business process.

Customer perceived value: - a customer’s opinion of a service to value to him or her. It

may have little or nothing to do with service market praise, and depends on the service
quality to satisfy his or her needs or requirements.

Customer reliability customers hold have uninterrupted service an over desired duration.
It is also vary crucial for those banks for the following reasons?

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  It maintains reputation

 Provides repeat business

 Competitive advantage

Customer Expectation: - This is a customer perceived value search from the service
being utilizing or consuming. Normally customer may predict or focus about the quality
of the service weather it may satisfied or not (Kneepan J.Warren, 1995)

Customer Value: -The difference between what a customer from a service or product
and what he use has to give in order to get it. Sometimes customer values will not be
correctly matched as they want.

Customer loyalty: - it is used to describe the behavior of repeat customers as well as

those that of good ratings, reviews or testimonials. The ultimate goal of customer loyalty
is happy customers who will return to purchase again and persuade others to use that
industries service. This equated profitability as well as happy stake holders.

There are two ways strengthen customer retention one is to erect high switching barriers
the second is to deliver high customer satisfaction.

2.9 Empirical literature

According to Turban et al., (2002) was customer service is a serious of activities designed
to enhance the level of customer satisfaction that is the feeling that product or service has
meet the customer expectation.

According to (Harvard business review, 1995) customer satisfaction is a measure of

degree to which a product or service meets the customers’ expectations. Measuring
customer’s satisfaction also enables a business to determine the companies’ strength’s
and weakness and identify new markets that increase its customer base measuring
customer satisfaction is an essential form of determines how the business reaches its
target and goals.

15
Consequently satisfying customers is not an impossible task, in fact meeting and
exceeding customer expectation may reap severally valuable benefits for the firm,
positive matches generating from existing customers often translate into more new
customers. Customers are often willing to pay more and stay with the firm that meets
their needs than to take the risk associated with moving to a lower price service offering.
(Hoffman K.; 2000)

Clearly defining and understanding customer satisfaction can help any company identify
opportunities for product and service innovation and serve as the basis for performance
appraisal and reward system. It can also serve as the basis for customer satisfaction
surveying program that can insure that quality improvement effort sere properly focused
on issues that are most important to the customer.
(http://www.enwikipedia.org/wiki/customer satisfaction/ )

16
CHAPTER THREE

METHODOLOGY
This chapter covers the procedure that study follows in conducting the study. It outlines the
research design, research population and sampling, Data collections instruments and Data
collection procedures and Data analysis, presentation and interpretation. It gives the procedure
that uses to gather measure and analyze the necessary data.

3.1 Research design

This study follows a descriptive type of research. Mainly because the major purpose of
descriptive research is to describe characteristics of objects, people, groups,
organizations, or environments. This study used both quantitative and qualitative
approach, in order to substantiate the results questionnaire is used.

3.2 Sampling design and Sample size

The type of sampling technique that the study uses is probability sampling techniques of
simple random sampling. Study population was elected in such a way that every element
in the population has equal chance of being selected. The study uses simple random
sampling by using lottery method.

In order to measure customer satisfaction derived for the service questionnaires are
prepared and distributed to customers to be filled the sample size that was taken is 100
customers which is randomly selected.

3.3 Source of data

This study used both primary and secondary sources. Primary data includes structured
questionnaire was distributed to customers. Secondary source includes the organization
document, magazine and other assistant books from library are used for the research.

17
3.4 Methods of data collection tools
The tool of data collection that the researcher used to collect primary data is questionnaire
method that was distributed to customer. This study used both open and close ended questions.
Secondary data for this study are gathered from relevant research and seminar papers, annual
reports, statistical abstract, magazines, newspapers and journals. Furthermore, other data was
gathered from records at departments’ files, records and other documents.

3.5 Data analysis and interpretation

The quantitative data was collected, checked for completeness, enter and analyzed using
Descriptive Statistical tools. Descriptive statistical tools such as mean, percentage and
frequency were used to analyze the collected data. The analyzed data presented using
tables, charts and graph. The interpretation of the data provides based on the results that
is generated from the data.

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CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

In this part of the paper focus on data presentation analysis and interpretation of data
collected from the respondents towards investigation of factors affecting banks customer
satisfaction a case of Dashen bank in Robe branch. The data are presented in a table form
and it seems appropriate to interpret to each data.

4.1 Demographic profile of respondents

Table 4.1.1 Sex, age and Education level of the respondents

No Item No of respondents %

Sex Male 61 61%

1
Female 39 39%

Total 10 100%

Age interval 20-30 88 88%

30-40 10 10%
2
40-50 2 2%

>50 - -

Total 100 100%

Secondary level 2 2%

3 Education status Certificate 23 23%

Primary level 19 19%

First degree and above 13 13%

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 Diploma 43 43%

Total 100 100%

Own survey, (2021)

From a table 4.1.1, item 1, we can understand that 61% (61) of respondent are male and
the remaining 39% (39) are females. From this most of the Dashen banks customers are
males than females.

As shown in the table above 4.1.1, item 2, it is indicated that, the majority of the
respondent 88% (88) belongs to the age group 20-30 years. 10% (10) respondent belongs
to the age group of 30-40 years and the rest 2% the age group of 40-50 years and there is
no respondent above 50 years. That shows most of the Dashen Bank customers are more
or less young. Item 3, Least number of customers 2% (2) are attend secondary level
education, 23% (23) have certificate, 19% (19) have complete a primary level and the
remaining 13% (13) and 43% (43) are first degree and diploma respectively. We can
understand that most of the Dashen bank customers have diploma.

Table 4.1.2 Occupation of respondents

No Item No of respondents %

1 Merchant 64 64%

2 Government employee 12 12%

3 Student 9 9%

4 Investor 2 2%

5 Other 13 13%

Total 100 100%

Own survey, (2021)

Form the occupation part of the table the merchant has the highest proportion from the
total respondent by scoring 64% (64) from the total respondents. The remaining units are

20
close to each other in terms of number by taking 13%, 12%, 9% and 2% other,
government employee, student and investor respectively.

4.2 Service dimension

Table 4.2.1 Respondents opinion concerning accessibility of the bank

No Response No of respondents %

1 More accessible 26 26%

2 Accessible 51 51%

3. Not accessible 23 23%

Total 100 100%

Own survey, (2021)

As we depict from the table indicated above 26% of respondents says that the
geographical location of the bank is more accessible 51% of the respondents says that the
geographical location the banks is accessible, 23% of the respondent are says that the
geographical location of the bank is not accessible. From this we have understand that the
bank place are accessible for most customers of the bank.

Table 4.2.2 Respondents view pertinent to banks technology adaption.

No Degree of scale No of respondents %

1 Very high 26 26%

2 High 51 51%

3 Moderate 23 23%

4 Low 4 4%

5 Very low - -

Total 100 100%

Own survey, (2021)

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From the table 4.2.2 indicated above 37% of the respondents also states that the
technological standard of the bank is moderate and the remaining 32% and 4% states that
the modernization or technological use of the bank is very high and low respectively.

Table 4.2.3 Employees commitment to serve customer

No Degree of response No of respondents %

1 Very high 18 18%

2 High 33 33%

3 Moderate 43 43%

4 Low 6 6%

Total 100 100%

Own survey, (2021)

To integrate the process any organization needs employees who are empowered with the
commitment to respond and trained in the skill to act for customers. As indicated in the
table 4.2.3 above 33% of the respondents said that the employees take high commitment
and authority to take care of customers and also 43% of the respondents said that they
take a moderate responsibility and commitment to take care of customers. The remaining
18% and 6% of the respondent says that very high and low respectively.

An important part of arriving the bank for customers is empowering employees with the
responsibility and authority to meet customers’ needs an expectation. Empowerment
simplifies and accelerates the problem solving process and focuses employees on
preventing future problems, while continuously improving service quality from
customer’s perspective.

4.3 Customer satisfaction

Table 4.3.1 Customer demand towards the bank services

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 No Response No of respondents %

1 Very high 25 25%

2 High 30 30%

3. Moderate 43 43%

4 low 2 2%

Total 100 100%

Own survey, (2021)

Due attention is given to the demands and wants to customers. It is supported by 30% the
respondents is high the reply moderate followed by 43% of the respondents who said that
the level of attention is moderate it is the demands and wants of customers that argue any
business organization to examine their performance whether it satisfies those demands
and wants, 25% of the respondent said that the attention level is very high the remaining
2% of the respondent said that their attention level is low.

Table 4.3.2 Banks priority to customer satisfaction

No Response No of respondents %

1 Excellent 25 25%

2 Very good 30 30%

3 Good 40 40%

4 No response 5 5%

Total 100 100%

Own survey, (2021)

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As shown in the table 4.3.2 above 25% of the respondent said the bank gives priority to
customer satisfaction is excellent. This may imply that the bank has recognized that the
satisfied customers is the ground source of business because he or she remains loyal to
the service center, 30% the respondents said that it is very good, 40% the respondents
said that the banks priority to customer satisfaction is good. The remaining 5% of the
respondents said that it is not give answer customer satisfaction determines the banks
success or failure. It is important to know how satisfied customers really area.

Table 4.3.3 Customer response about availability of complaints on the bank staffs

No Item No of respondents Percent (%)

1 Yes 42 42%

2 No 58 58%

Total 100 100%

Own survey, (2021)

According to table 4.3.3, above 42% of the respondent pictured out that have staff or unit
assigned to handle the complaints from the customers. These ideas not supported by only
58% of the respondent. A bank needs to actively search for dissatisfied customers,
because these customers are real opportunities to improve customer service.

Most customers don’t complaints because they think complaints. This is because of the
reason the customers have not awareness about where the assigned staff is located.

Table 4.3.4 Banks response to customer complaints

No Item No of respondents %

1 Very high 17 17%

2 High 19 19%

3 Moderate 61 61%

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 4 Slow 3 3%

5 No response 0 0%

Total 100 100%

Own survey, (2021)

As shown in table 4.3.4, 19% of the respondents said that their response is high and 17%
of the respondent’s response is very high. 61% the respondent said that their response is
moderate, 3% the respondents response is slow response from the banks and the
remaining 0% no responses. The concept implies that the bank is not give awareness
about where the staff is located in order to give complaint. Hence, no solution to the
problem raise any activity to be performed successfully, it has to be coordinates by a
given unit person so that the predetermined goals needs to be attained.

Table 4.3.5 Satisfaction status of customers with the bank service

No Item No of respondents %

1 Yes 52 52%

2 No 48 48%

Total 100 100%

Own survey, (2021)

According to table 4.3.5, 52% of the respondents states that for every time satisfied from
the bank, the remaining 42% are not satisfied form the bank service. This shows most of
the customers of Dashen bank is not fully satisfied by the bank service they get.

25
4.4 Customer expectation from the bank
Table 4.4.1 Customers expectation before joining the bank

No Item No of respondents %

1 Very good 35 35%

2 Good 47 47%

3 Moderate 12 12%

4 No response 6 6%

Total 100 100%

Own survey, (2021)

From the above table shows that 35% of the respondent had said that every good
expectation from the bank before joining it on the other hand, 47% of the respondents
have said good and 12 respondents had moderate and the remaining, 6% of the
respondents have not given their response.

Table 4.4.2 Customers expectation view joining the bank

No Item No of respondents %

1 Very good 32 32%

2 Good 18 18%

3 Moderate 46 46 %

4 No response 4 4%

Total 100 100%

Own survey, (2021)

In terms of performance expectation 32% of the respondents said that the banks
performance matches their expectation very high, they found that the banks actual
performance not exceed their expectations, while 18% the respondents said that the
performance matches their expectation high, they found that the bank actual performance

26
equals to their to their expectations, 46% the respondent said that the banks performance
equals to their expectations and 4% the respondents the response towards view joining
the bank is doesn’t know about the service of the bank.

Table 4.4.3 The bank fulfill customers need requirement without customer interest

No Item No of respondents %

1 Yes 77 77%

2 No 23 23%

Total 100 100%

Own survey, (2021)

From table 4.4.3 the banks fulfillment of customers need requirement 77% of respondent
stats that the banks fulfill my requirement, and the remaining request. This shows most of
the customers are satisfied by the bank.

Table 4.4.4 Banks service during the current time

No Item No of respondents %

1 Excellent 19 19%

2 Very Good 45 45%

3 Good 30 30%

4 Poor 6 6%

Total 100 100%

Own survey, (2021)

Most of the respondents 30% replied that it is good 45% replied it is very good and 19%
and 6% are excellent and poor respectively. Since most of them evaluate the current
service given by the bank is very good, it is clear that customers are not fully satisfied. So
27
the bank continued to improve its current service by applying different alternatives that
can suit the bank.

Table 4.4.5 customer’s time taken to get a service from the bank.

No Item No of respondents %

5 Very long 6 6%

Long 26 26%

Medium 37 37%

Short 31 31%

Total 100 100%

Own survey, (2021)

Form table 4.4.5 we can understand that 37% the respondent time to taken a service is a
medium 26% of the respondents to taken a long time periods and the remaining 6% and
31% are very long time and taken short time respectively. We have understand that most
of the customer get a service form the bank is to taken a time is as medium one, as a
result the bank to improve their waiting time.

Table 4.4.6 the working time of the bank related to customer opinion

No Item No of respondents %

6 Excellent 10 10%

Very good 23 23%

Good 31 31%

Poor 36 36%

Total 100 100%

Own survey, (2021)

28
According to table 4.4.6, 31% of the respondents the working time of the bank are good,
23% of the respondent is very good and the remaining 10% and 36% are excellent and
poor respectively. Most of the respondent states that the working time of the bank is
essential for customers in appropriate to their needs.

Table 4.4.7 Method of expressing complaint to the bank

No Item No of respondents %

1 Yes 41 41%

2 No 59 59%

Total 100 100%

Own survey, (2021)

In the above table 59% of the respondent identifies that methods of expressing complaint
not agree by the customers and the remaining 41% of the respondents are states that the
bank to solve a customer’s complaint.

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CHAPTER FIVE

FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Findings
The research findings written below were derived from the collected data. The major
findings were as follows:

 The service of Dashen bank is used by more males than females. Majority of the
bank’s customer were youth i.e. found between the age group of 20-30. The
educational level of the respondent was more of diploma holder.
 Merchants cover the largest proportion of occupation category while, government
employee, student, others and investors took the remaining percentage.
 The geographical accessibility of banks is accessible to customers.
 Most of the respondents also state that the technological standard of the bank is
good.
 Majority of the respondents said that they take a moderate responsibility and
commitment to take care of customers.
 Most of the respondents who said that the level of attention is moderate it is the
demands and wants of customers that argue any business organization to examine
their performance whether it satisfies those demands and wants but it is not
satisfactory
 The firm is giving more priority to customer satisfaction. Customers didn’t know
whether complain staff is available or not. Also they have not aware about where
the assigned staff is located.
 Large number of customer expectation before being Dashen bank customer has
good view about the bank and also they get good service view joining the bank but
not satisfactory
 Since most of them evaluate the current service given by the bank is only good but
not very good or excellent, it is clear that customers are not fully satisfied. We have
understand that most of the customer get a service form the bank is to take a time is

30
 as medium one, as a result the bank to improve their waiting time. Most of the
respondent states that the working time of the bank is essential for customers in
appropriate to their needs.
 Majority of the respondent identifies that methods of expressing complaint not
agree by the customers.

5.2 Conclusion
The study was conducted on Dashen Banks in Robe branch entitled with investigation of
factors affecting banks customer satisfaction. As it is stated in the analysis part 100
sample respondents were asked through questionnaire, so the conclusion is derived from
the analysis.

Most customers of the bank are adult males, this shows other group of users such as
females and olds are few in number. Almost all of the customers have diploma of
education. Which are engaged in business (merchants).

The bank doesn’t give appropriate attention to customer to accept their complaint and to
give awareness about where they tell or put their complaint. The employees of the bank
shouldn’t utilize their maximum effort to treat incoming customers and to take case of
responsibility and authority in order to satisfy customer needs and wants. And also the
location of the bank is not accessible to most of the bank customers.

In general the service of the bank is good by giving priority to customer satisfaction and
customer expectation satisfies customer demands and wants. But it is not satisfactory
because of many reasons like accessibility of the bank, lack of additional services such as
VISA card, western union, tale banking and the like.

31
5.3 Recommendations
 Based on the research result, Dashen bank should make some improvement to
retain its customers as well as to increase its customer number by providing
quality service. The following constructive suggestions and recommendations are
made by the researchers.
 The bank should give attention to customer complaints by giving awareness about
where to access the staff by using sign board.
 The employees of the bank should utilize the maximum participant to treat
incoming customers and to take case of responsibility and authority in order to
satisfy customer demands and wants.
 The bank should improve its loan service by minimizing bureaucracy and time
spends. The management also should work harder in which the bank is losing
ground.
 The location of the bank should be suitable to customers to be accessible and
known.
 Additional services must be increased to maximize its current service level and
market share. These are western union, VISA card, tale banking and the like.
 The bank should increase the level of female users by different techniques, in
order to control the overall service.
 Understanding and meeting customer demands, staying on schedule and customer
moral should also be evaluated carefully as of the bank’s first priorities like
quality service and service control.

32
References
Christopher L. (2004), “Service marketing” 5th edition.

Hoffman, K. Douglas (2001) “Essentials of service marketing” 2nd edition.

PhilipKotler, (2004), “Principles of marketing” 8th edition.

Harvard business review, (1995), “customer satisfaction review”

Thomson, (1998),“Service marketing”3rd edition.

Turban et al and Gary Armstrong, (2002),“principle of Marketing” 12th edition, USA.

Philip Kotler/1999/, customer satisfaction measurement 9th edition

Kotler, P and G zaltman (1994), Social marketing, an approach to planned social changes
vol.35

Philip Kotler and Armstrong, (2000), “principle of marketing” 10th edition.

Fitzsimons, (2003),“customer complaint” 2nd edition.

Internet source
http://www.businessball.com
http://www.tarupublication.com
http://www.nbe.gov.et/history.htm.

http://www./dashenbank s.c.com

http://www.en.wikipedia.org/wiki/custoemrsatisfaction.

33
 APPENDIX
MADDA WALABU UNIVERSITY

FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

Questionnaire (to be filed by Dashen bank customer)

This questionnaire was prepared by university of Madda Walabu University, faculty of

business and economics, management third year student aimed to gather pertinent
information about banks customer satisfaction in case of Dashen bank Robe branch.

Be honest in providing genuine information since it has a significance effect on the result
of this research.

I. Socio-demographic questions
1. Gender: A. Male B. Female
2. Age: A. 20-30 B. 30-40 C. 40-50 D. >50
3. Level of education: A. illiterate C. secondary level
B. primary level D. certificate

E. diploma F. first degree and above

4. Occupation: A. government employee C. student

B. merchant D. investor E. others
II. Questions related to Service dimension
1. Is the geographical location of the bank is suitable for you?
A. more suitable B. suitable C. not suitable

34
2. How do you see the modernization of the service style of the bank?
A. very high B. high C. moderate D. low
3. How do you see the employees take responsibility and authority to take care of
customers? A. very high B. high C. moderate D. low
III.Questions with regard to Customer satisfaction
1. To what extent the bank striver to meet customers’ needs and wants
A. very good B. good C. moderate D. low
2. How do you feel that the bank give priority to customer satisfaction?
A. excellent B. very good C. good D. no response

3. Is the bank has any assigned staff to handle customer satisfaction?

A. Yes B. No
4. How do you see the bank’s response to customer complaints?
A. very quick B. quick C. moderate D. slow E. No response
5. Are you always happy with the bank you use? A. Yes B. No
IV. Customer expectation questions
1. How do you expect the bank service before you become a customer?
A. very good B. good C. moderate D. no response
2. How do you get the expected performance after going?
A. very good B. good C. moderate D. no response
3. Does the banks fulfill customers need requirement without customer interest?
A. yes B. no
4. What is the bank service look like during this time?
A. excellent B. very good C. good D. poor
5. How much time takes to get a service from the bank?
A. very long B. long C. medium D. short
6. Do you think that the bank’s working time need improvement?
A. excellent B. very good C. good D. poor
7. Do you know the method of expressing your complaints to the bank?
A. yes B. no

35