ADIGRAT UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF MANAGEMENT

AN ASSESSMENT OF CUSTOMER SATISFACTION IN COMMERCIAL

BANKOF (CBE) IN CASE OFADIGRT BRANCH.

A research paper submitted to department of Management, college of business and economics

Adigrat University in the partial fulfillment of the requirement for the degree of Bachelor Art in
Management.

By Lidiya Abayneh

Advisor : Fasil.D

JUNE 2017

Adigrat, Ethiopia
 A
N ASSESSMENT OF CUSTOMER SATISFACTION IN COMMERCIAL BANK OF ( CBE)
IN CASE OF ADIGRAT BRANCH

Approved by

Advisor Name signature Date

_____________ _________ ________

Examiner

__________ ________ _______

JUNE 2017

Adigrat, Ethiopia
Acknowledgment
Prior and First of Everything I would like to thank my god with .God was with me for each and
every movement upon the accomplishment of this research. Next to that I would like to say
thanks for my family. My families are my support system. They were together with me by sending
me a money to cover different costs and maintaining my psychological confidentiality and as
well as my Advisor Instructor Fasil .D for his best consultation about things should have to be
incorporated and contents should be eliminated from the research paper and finally to the whole
of my friends for their everything God pay their duty.

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ABSTRACT
The researcher starts the study having an objective to assess the degree of customer satisfaction
in respect to the service delivery of CBE Adigrat branch. By distributing questionnaires to the
customers and employees of the bank and by analyzing and presenting the collected data, the
researcher draws the following conclusions. This study was designed to observe the
customer satisfaction in CBE of the Adigrat branch. the main target of this
study was to assess and review the major customer satisfaction by CBE
Adigrat branch in this research paper the primary data was collected
through questionnaire and observation the questionnaire becomes both
open and close ended questions that was field in returned by the selected
customers and employees and which is non probability type of sampling
techniques is the more appropriate to be applied to select the customer of
the bank as a respondent and census method was more appropriate to take
employees of bank as a respondent the researcher prefers to use
observation method because to see the actual customer service they are
enjoying from the employees to evaluate whether it is customer satisfaction
based or not and the response of employees in the bank in addition to
primary data the researcher uses books customer service manual report of
CBE and related research papers as secondary sources. One organization that
can be made at this point was that customers satisfaction is an organizations best asset and
customer today’s demand personal attention from business they spend their money. Therefore
customer services are moving up the priority list in today’s business and it is consuming more of
their time and budget. In today’s business customer is in the driver’s seat, with enough muscle to
dictate business terms and money to pay for choices. Based on the conclusion and the finding
from the survey,

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iii
Contents
Acknowledgment..........................................................................................................................................i
ABSTRACT....................................................................................................................................................ii
List of table..................................................................................................................................................v
CHAPTER ONE..............................................................................................................................................1
1. INTRODUCTION...................................................................................................................................1
1.1 Background of the Study................................................................................................................1
1.2. Statement of the Problem................................................................................................................2
1.3. Research question............................................................................................................................2
1.4. Objectives of the Study.....................................................................................................................3
1.4.1General Objective........................................................................................................................3
1.4.2 Specific Objectives......................................................................................................................3
1..3 Significance of the Study...............................................................................................................3
1.4 Scope of the Study.........................................................................................................................3
1..5. Organization of the paper............................................................................................................4
1.6 Research methodology..........................................................................................................................4
1.6.1 Research design..............................................................................................................................4
1.6.2 Source of data.................................................................................................................................4
1.6.3 Target population...........................................................................................................................4
1.6.4 Sampling Design and Sample Size...................................................................................................5
1.6.5 Data collection Instruments............................................................................................................5
1.6.7 Method of Data Analysis and data presentation............................................................................5
CHAPTER TWO.............................................................................................................................................7
LITERATURE REVIEW....................................................................................................................................7
2.1Defining Customer Satisfaction..........................................................................................................7
2.2. Customer Relationship Management...............................................................................................7
2.3. Customer Loyalty and Retention......................................................................................................8
2.4. Customer Satisfaction Measurement Techniques............................................................................8
2.5. The Nature and Characteristics of Services.......................................................................................9
2.6 Customer Service and Service Quality.............................................................................................10

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2.6.1 Defining Service Quality....................................................................................................................10
2.6.2 Benefits of Services Quality..........................................................................................................10
2.6.4 Usage of serqualication................................................................................................................10
2.7. Measuring Service Quality..............................................................................................................11
2.8 ORGANIZING AND EMPLEMENTING SERVISE QUALITY....................................................................12
2.8.1 RESEARCH FRAME WORK.............................................................................................................12
2.8.2 Customer orientation..................................................................................................................12
2.9. CRM organization..........................................................................................................................12
2.10 Knowledge Management.............................................................................................................13
2.11 Technology based CRM................................................................................................................13
CHAPTE THREE...........................................................................................................................................14
3. DATA PRESENTATION, ANALYSIS AND INTERPRETATION..................................................................14
INTRODUCTION.................................................................................................................................14
3.1. Demographic characteristics of Respondents.................................................................................14
4.2 CUSTOMER RETENTION IN CBE/IN CASE OF ADIGRAT BRANCH/.....................................................17
4.3 CUSTOMER PERCEPTION AND EXPECTATION ABOUT CBE OF THE ADIGRAT BRANCH SERVICES.....18
4.4 Customer satisfaction level..............................................................................................................19
4.5 Customer complains handling mechanisms in CBE of the Adigrat branch.......................................19
4.6 Tangibility of the service..................................................................................................................20
4.7 Service Reliability.............................................................................................................................21
4.8 Service quality of CBE on the Adigrat branch...................................................................................23
4.9 Satisfaction Level of customers.......................................................................................................24
Interview result.........................................................................................................................................25
CHAPTER FOUR........................................................................................................................................26
SUMARY CONCLUSION AND RECOMMENDATION.....................................................................................26
4.1 Summary of the major findings.......................................................................................................26
5.1 Conclusion.......................................................................................................................................27
5.2. Recommendations..........................................................................................................................29
Reference..................................................................................................................................................32
Appendix...................................................................................................................................................33

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 List of table
List of table page

Table 3.1 Background of employee respondents......................................................................................14

Table 3.2 Background of customer respondent.........................................................................................16
Table 4.3 customer retention in CBE of the ADIGRAT branch...................................................................17
Table 3.4 Customers perception, expectation and Satisfaction on CBE of the ADIGRAT branch Service...18
Table 3.5 Employees response on customer satisfaction level..................................................................19
Table 3.6 Response on customer complain handling mechanism of the Bank..........................................20
Table 3.7 Assessment on tangibility..........................................................................................................21
Table 3.8 Response on the reliability of CBE in the Adigrat branch...........................................................22
Table 3.9 assessment on the empathy and assurance of Bank..................................................................22
Table 3.10 Service quality of CBE on Adigrat branch.................................................................................23
Table 3.11 Satisfaction level of customer’s................................................................................................24

vi
 CHAPTER ONE
1. INTRODUCTION
1.1 Background of the Study
Customers are the main important and basis for any organizations success and profitability and
they are king or customers are always right” are quotations widely know that point out the
superiority and indispensability of customers to the survival of the business organization. Growth
and profitability completely depends on customers service that helps to get customers
willingness in playing money for company services (Kotler, 1996)

Therefore Satisfaction is person’s feeling of pleasure resulting from comparing products

perceived performance or outcome in relation to its expectation. Since satisfaction level is a
function of the difference between perceived performance and expectations (Ibid).

Customer satisfaction depends on the products perceived performance relative to buyer’s

expectation. If the product performance fails short of expectation and customer becomes
dissatisfied. If performance exceeds expectations, the customer becomes satisfied highly. If
performance matches its expectation the customer becomes satisfied. Thus organizations develop
a mechanism to identity Their customers and try to satisfy (Denton, 2010).

Communicate your customers’ desire to your personnel. Because the company’ success or failure
highly depends on its customers. Customer would communicate well, with the company and they
would get their satisfaction, because customer’s satisfaction is one of the essential tools for
customer retention, customer loyalty and frequency of service usage (kotler, 2001).

As a major service giving financial institutions, Commercial Bank of Ethiopia satisfy or keep the
interests of the customers and improve its customer services qualities for the attainment of
sustainable customer satisfied and should have as moth services, means that all customer well get
the satisfaction which can’t be wry high for some customer and to low for the other (palmer,
2000).Between customer expectation and the actual service delivery for its customers. According
to the federal government council of ministers regulation number 202/1994, established for the
following functions:-

1
  To accept saving, demand and time deposits.
 To drawn, accept discount, buy and sale bill of exchange, draft and promising notes
payable within or outside Ethiopia.
 To issue letter of credit, buy and sale foreign exchange to provide loans the like.

Commercial Bank of Ethiopia is the leading Bank in terms of market share, branch network,
customer and capital base and aggressively expanded its branches all over the country that is in
number around 1100 branches until 2007E.C.

Here the investigation focuses on customer satisfaction in Commercial Bank of Ethiopia, in the
Adigrat branch generally, this research is attempt to assess problems regarding to customer
satisfaction in CBE of the Adigrat branch.

1.2. Statement of the Problem

In today’s competitive business environment delivering quality services to customers is a very
critical exercise. Meeting customer expectation by giving quality services is very important to
satisfy customers. Customer satisfaction is not a simple work, it is not a physical activity, and
rather

it is an understanding of customers feeling, expectation choice and preference (Palmer,

1995).Any service organization in general become successful and create the main differentiating
factors, it is advisable to be implement rendering quality service to satisfy customers, proper
customer handling, attracting and retaining customers on the organization and used customer
satisfaction both a goal and a marketing tool However, based on the preliminary study of the
researcher, the customer of the CBE in the Adigrat branch seems that they are some satisfied
with the Bank’s services. In order to trace out some problems that cannot make a customer to be
satisfied fully on the service of CBE Adigrat branch the researched going to conduct this study.

1.3. Research question

1 What is the service quality delivered by CBE in Adigrat branch?
2 How to evaluate employee’s willingness towards quality customer service delivery?
3 What is the satisfaction level of customers on several dimensions?
4 What are the levels of satisfaction of customers on CBE of the Adigrat branch?
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1.4. Objectives of the Study
1.4.1General Objective
The general objective of this research is to assess the degree of customer satisfaction in respect to
service delivery of CBE in the Adigrat branch.

1.4.2 Specific Objectives

In related with the above general objective, the researcher is going deal the following specific
objective:

1 To assess the service quality delivered by CBE of the Adigrat branch

2 To evaluate employees willingness towards quality customer service delivery.
3 To assess the satisfaction level of customers on general dimensions.
4 To identify the level of satisfaction of customers on CBE of the Adigrat branch.

1..3 Significance of the Study

This research has the following importance during completions:

 It helps the organization to identify the problems, take corrective actions and handle
their customer’s properly.
 It was give other researchers as a reference to conduct a research on the same area.
 It helps the department as a document in order to prepare some educational materials.
 It have all allow for the researcher to be familiar by many people by solving a
problem regarding satisfaction.

1.4 Scope of the Study

In order to conduct the research manageable, the researcher mainly focuses on its scope on
theoretical, methodologically and geographically.

Theoretically this research intends to assess the satisfaction of customers in regard to the service
delivery of Commercial Bank of Ethiopia in the Adigrat branch. In doing so, the researcher is
restricted to select Adigrat branch of CBE in Adigrat town for obtaining the required
information. This helps to make the research, to be valuable

Methodologically this researcher use descriptive research design to describe the service delivered
from the bank .The study would also conducted by the researcher by using convenience
sampling technique.

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Geographically customer satisfaction is affected at national domestic as well as global level
Because of vastness and several constraints like service quality vastness of the study knowledge
skills experience cost and facility constraints the study was limited to only one bank located at
Adigrat town which is CBE Adigrat branch

1..5. Organization of the paper

This study incorporates all things that have to be included in the research proposal and it already
contains back ground of the study statement of the problem, scope and significance of the study research
objectives and many other things in its First chapter It also states more thing in chapter two which is
review of the literature ‘and in its third chapter it talks something. About research methodologies and
finally in its fourth chapter it Describes about work plan and budget break down of study.

1.6 Research methodology

1.6.1 Research design
This study is going to use descriptive design.This type of design is selected as best to be apply in
this research because it provides an opportunity of collecting data from employer and customers
to describe current bank customer satisfaction.

1.6.2 Source of data

In the process of collection of relevant data, the researcher is going to use both primary and
secondary data source. Like though interval with the customer as well as the employers of the
bank and the researcher also used applied observation method to see the actual customer service
and the response of employees in the Bank.
In addition to primary data, the researcher uses books, customer service manual, report of
CBE, internet and related research papers as a secondary data source
1.6.3 Target population
The target population of the research is the customers and employees of the CBE Adigrat branch.

1.6.4 Sampling Design and Sample Size

In this study, the researcher is attempted to apply convenience sampling which is non probability
sampling technique To Select Customer Of The Bank As A respondent To collect the Relevant
Data And Also The research Apply Census Method to Take Employees of the Bank As A

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respondent To Collect Information. Thus out Of the Available Customer of the Bank the
Researcher Takes of Them Accordingly This Formula Sample size

=(z-score)2 x stdDevx (1-StdDev)

(Margin of error) 2

=(1.96)2x0.5(1-0.5)

(0. 15)2

= 3.8416x 0.5x0.5

0.0225

=0.9604

0.0225

=43

Thus, 43 customers was taken as a respondent and all the available employees of the bank who
are 30 in number was the respondent based on census method.

1.6.5 Data collection Instruments

The data of this study is going to be collected using questionnaires from customers and
employees of CBE Adigrat branch and through interview and observations.
1.6.7 Method of Data Analysis and data presentation
The data analysis method, the researcher was take based on the nature of data which collect from the
target population. This study is to analyze through tabulation and percentage for the response
questionnaire and use description of response regarding the open ended questionnaire data in that
manner the data analyses in descriptive and quantitative form of analysis that means after they ask
everything about the service render from the bank and it was interpreted in quantitative and qualitative

5
technique. Since data analysis and presentation is the most important part of the research to give reliable
and meaningful information.

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 CHAPTER TWO

LITERATURE REVIEW
This chapter of the study deals with review of related documents in relation to characteristics, nature,
determinant, measurements of customer’s satisfaction and service qualities and others.

2.1Defining Customer Satisfaction

Satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a
products perceived performance or out come in relation to its expectation. Customer satisfaction
is customers’ perception that his/her expectations have been met or surpassed. (Kotler, 1996).

If the performance exceeds expectations, the customer is highly satisfied or delighted. A

delighted/satisfied customers is loyal customer who is keen word of mouth services for advertise.
If the service performance falls, short of expectation (If service delivery gap is created between
expectation of customer and available service). The service recipient is dissatisfied. Someone
buys something and he/she expects it to work properly. If it does, he/she satisfied. If it is doesn’t
he/she is dissatisfied. Customer is satisfied whenever his/her needs, wants and expects? It is very
simple, we just ask, and then we provide what the customer wants. If our customer is not
satisfied, he/she may stop doing business with us.(Kotler 2006). All the things we do to achieve
quality and provide excellent service are in important if we don’t work to satisfy the customer
through:-

-Lowering its price or increase its services

-Increase its profitability (improving its manufacturing or investing more in research and
development.

-The company has many stakeholders including employees, dealers, suppliers and stockholders.

2.2. Customer Relationship Management

It is the simplest form of all attitudes, a mindset, a value that you place on your business and its
relationship with its customers. It is a methodology, away of creating and evolving your
organization in the market place and at the sometimes in the mind of each individual customer.
There are three main elements to consider when aligning your business towards customer
relationship, format. The first is to do with retention. The second is to develop customer

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potential. The third elements of customer relationship management and perhaps the most
controversial ones is the de-selection of customer (Robert, 2001).

CRM (Customer Relationship Management) is the process of managing detailed information

about individual customer and carefully managing all customer “touch point” to maximize
customer loyalty and in Addition to this CRM is important because a major driver of company
profitability is the aggregate value of the company’s customer base (Kotler, 2006).

2.3. Customer Loyalty and Retention

Customer loyalty is all about attracting the right customers, getting them to buy, buy in higher
quantities and bring you even more customers. Customers loyalty can be build through:-

-Keeping touch with customers using e-mail marketing, thank you card and more.

-Treating your team, so they treat your customers well.

- Showing that you care and remembering what they like and do not like.

-You build it by rewarding them for choosing you over your competitors

2.4. Customer Satisfaction Measurement Techniques

A number of methods are existed to measure customer satisfaction among them:-

1. Periodic Survey:- It can attack customer satisfaction directly and ask additional questions
to measure repurchase intention and the respondents likely hood or willingness to
recommend the company and brand to others.

2. Monitoring Customer Loss Rate:- By preparing customer list, document companies can
monitor their customers loss rate and contact customer who have stopped buying or who
have switched to another suppliers to find out why.

3. Hire Mystery Shoppers:- Finally, companies can hire mystery shoppers to pose as
potential buyers and report an strong and weak points experienced in buying the
company’s product or service. In addition to tracking customer value expectations and
satisfaction for their own firms, companies need to monitor their competitor’s
performances in such areas.

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2.5. The Nature and Characteristics of Services
What are Services?

Service is any activity or benefit that one party can offer to another that is essentially intangible
and doesn’t result in the ownership of anything. Its production may or may not be tied to a
physical product.

Service have four characters that greatly affect the design of marketing programs their are;

1. Intangibility:- services can’t be seen, tasted, felt, and heard of smelled before purchase, it
is that a pure service can’t be assessed using any of the physical sense. It is all
abstraction, which can’t be seen, tested, felt and heard of smelled before they are brought
(parlrler,1998)
2. Inseparability:-Is the characteristics of service they are produced and consumed at the
same time and can’t be separated from their providers, whether the providers are human
(people) or machine. Both the provider the customer affects the service outcome (Kotler,
2008).
3. Variability:- for services, variability impact an customers not just in terms of out comes
only but also in terms of process of production. Variability means that the quality of the
services depends on who provides them as well as when and how they are provide.
4. Perish ability:-means that perceived services quality depends heavily on the quality of the
buyer-seller interaction during the service encounter.
1. Internal marketing:- Means that the service firms must effectively train and motivate it’s
customer contact employees and all the supporting service people to work as a team to
provide customer satisfaction.
2. Interactive marketing:- Means that perceived service quality depends heavily on the
quality the buyer-seller interaction during the service encounter.

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2.6 Customer Service and Service Quality

2.6.1 Defining Service Quality

Quality is the ability of product or service to meet customer needs, or ability to satisfy stated or
implied needs.
Quality’s extremely difficult to define in a few words. At most basic quality has been defined as
“conforming to requirements”. This implies that originations must establish requirements and
specifications. (Palmer-2001).
2.6.2 Benefits of Services Quality
According to Tschohal, quality services have the following benefits:-
1 Customer loyalty and increase in market share and return on sale
2 Increase sales and profits
3 More frequent sales, repeat business, large sales, order up grading
4 Higher customer count more new customer

2.6.3 THE SERQUAL MODEL

The serqualmethod from Zenithal’ parasuman and Berry (2000) is technique that can be used for
performing a gap Analysis of an organizations services quality performance against quality
needs. SERVQUAL is an empirically derived method that may be used by a service organization
to improve service quality SERVQUAL takes in account the perception of customers of the
relative importance of service attributes. This allows an organization to prioritize and uses its
resource to improve the most critical service attributes.
SERVQUAL /Service Quality/ is an instrument used to measure the service quality construct
and in addition to this SERVQUAL is a multi-item scale developed to Asses customer perception
of service quality in service and retail business.
2.6.4 Usage of serqualication
According to Palmer, SERVQUAL results can be used to identify which company of a service
the company is particularly good or bad. It can be used to monitor service quality over time, to
compare performance with that of competitors, or to measure customer satisfaction with a
particular service industry generally. An organization or industry group can use the information
collected through SERVQUAL to improve its position by acting upon the results and ensuring

10
that it continuously surpasses customers’ expectations. These five dimensions of service quality
measurement used determinants quality service (factors that satisfy customers).(Kotler 2004).
1. Reliability: - The ability to perform the promised services independently and accurately.
It is the customers own reflection on the service. Experience and on how well the service
has been or is being performed. Most customers of service performance.
2. Responsiveness:- The willingness, to help customers and to provide prompt services. It is
particularly important to customer who have problems or require some services, over and
above that which is ordinary provided both willingness and ability for all important.
3. Assurance: - The knowledge and courtesy of employees and their ability to convey by
trust and confidence A favorable Assessment of assurance is indicated that customer is
satisfied that no further problems have been created.
4. Empathy:-The provision of carrying-individualized attention to customers. It can be
described as “the human touch” as it applies in a business setting. The customer assesses
whether or not the service personnel are genuine, committed to the customer and service.
(palmer 2001).

2.7. Measuring Service Quality

Performing according to the desired level of quality is critical to the entire organization. The
quality issue is part of both ex-ante and ex-post evaluations of the marketing policy. Monitoring,
controlling, and improving the quality of the service delivery are essential to the firms’ market
orientations (Denton, 1998).
According to Denton, various approaches used to measure service quality include.
1. Employee research:-Employee especially in the front office, meet customers regularly.
So they should know a lot about their customers, their expectations and their perceptions.
2. Customer research: - Continuous customer research can be based on mail surveys,
interview with different groups of customers (panels) and customer cards (credit cards,
loyalty programs etc.).
3. Complaint registration: - Complaints are important sources of information. The number
and nature of complaints given indication of the quality perception of customers. If the
registration and analysis of complaints are performed properly.

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4. Panel interviews: - To investigate the customer’s personnel feelings, perceptions,
expectations etc. thoroughly in depth personnel interviews are appropriate.
5. Mail surveys: - This can be achieved with many target groups. In customer research it is
necessary to work as the service delivery process from the customers’ perspective, which
stage/phase are they going through. Which steps should they perform during the service
delivery process etc.
6. Telephone surveys: - Even though it is powerful medium for communication, care is
necessary to conduct a telephone survey. Telephone can create a strong. Perhaps lasting
impression and do so for goodwill. (Palmer 2006).
2.8 ORGANIZING AND EMPLEMENTING SERVISE QUALITY
Service Quality Doesn’t Come By Chance Organization Need To Develop Strategies For
Insuring That They Delivery Consistent, High Quality Services Many People Have Attempted
To Identify The Organizational Factor.
Most Commonly Associated With Successful Quality Management Research Under Taken By
the One Who Want To Solve A Problem Recording Customer Satisfaction.(Denton 1998).
2.8.1 RESEARCH FRAME WORK
It is proven fact that the multi dimensions concept of CRM can considered relatively new,
because of the only few studies, which are made on CRM consist of four behavioral dimensions
are: key customer focus ,CRM organization, knowledge management and technology based
CRM.(Kotler 2006).
2.8.2 Customer orientation
It is important in the first instance to confirm that the main purpose behind customer oriented
behavior is to increase customer long lasting satisfaction and to create customer loyalty. As in
the service oriented organization the delivery service in bank when there is interaction between
service encounter.(palmer 2001).
2.9. CRM organization
First and for most to enhance service employees to conduct customer oriented behaviors
organizations have to develop an appropriate working environment for service in work ,for
instance ,providing staff with modern tools, and technology ,customer satisfaction tracking and
complaints management system, inspiration leadership, and appropriate reward systems.
(Denton 2000).

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 2.10 Knowledge Management
Needless to say that useful information about customer can be gather through interaction with
them or from different touch point within the organization itself and creation for deciding
whether CRM successful or not effectively transform information into customer knowledge .
(ZeithmalParasuman and Berry, 2000).
2.11 Technology based CRM
CRM strategies would end in failure if the information technology is not used properly .CRM
based technology enable san organization to plan and implement successful marketing action for
retaining customer long lasting and making them more profitable.(Kotler 2006).

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CHAPTE THREE
3. DATA PRESENTATION, ANALYSIS AND INTERPRETATION
INTRODUCTION:

This part of the study focuses on data presentation, analysis and interpretation that were collected
through questionnaire from the customers and employees of the bank.

Accordingly, in conducting this study 30 Employees and 43 customers were considered as

respondents. Among these respondents 43 (100%) of customers and 30(100%) employees have
filled the questionnaire.

3.1. Demographic characteristics of Respondents

The main objective of the presentation of the respondents profile is to indicate their background
with regarding sex, age, educational level and service years of employee and customer
respondents of the questionnaire.

Table 3.1 Background of employee respondents

No Item Employee response

No Percentage

1 Sex

Male 20 66%

Female 10 44%

Total 30 100%

2 Educational level

Up to high school completed - -

Certificate - -

Degree 25 83%

Masters 5 17%

Total 30 100

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 3 Service experience

2 years 10 33%

2 – 5 years 5 17%

Above 5 years 15 50%

4 Income level

3000-4000 3 10%

4001-5000 22 73%

Above 5000 5 17%

Source survey: 2017

As illustrated in the table1 item 1, Out of 30 employee 20 (66%) of them were males and 10
(44%) of the employees were females.

As presented in table 1, item 2, employees of CBE in Adigrat branch 25(83%) of the respondents
were in Degree level and 5 (17%) of the employees have master level .That indicates majority of
the respondents of the employees have degree level and that become more accessible information
about CBE in the Adigrat branch.

As presented in table1, item 3, 10( 33%) of employees in the Bank have 2 years of work
experience 10,( 50 %) of them have above 5 years work experience on the Bank and 5( 17%) of
them have 2-5 years’ work experience on CBE of the Adigrat branch. This indicated that the
majority of the respondents of the employees have 5 and above year of work experience in
CBE, this enables to deliver quality services to the customer .As indicated on table1, item 4,
10(17%) of the respondents have above 5000 salary level 22,( 73%) of the respondents have
between 4001-5000 salary level category and the remaining3 (10%) is 3000-4000 salary level.
This shows that majority of the employees get 4001-5000 salary level category that may
encourage employees to deliver quality services to satisfy customers of the bank.

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Table 3.2 Background of customer respondent

No Item Customer response

No Percentage

1 Sex

Male 22 51%

Female 21 48%

Total 43 100%

2 Age
15-25 - -
26-35 23 53%
36-45 20 46%
Above 45 - -

Total 43 100%

3 Educational level

Certificate 10 23%

Diploma 11 25w%

Under graduate 22 51%

Total 43 100%

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 Source survey: 2017

As presented on the table2, item1, out of 43 customers 22(51%) of the respondents of the
customer were males and 21 (48%) of them were females. As shown on table2, item2 23(53%)
of the respondent of the customer were under age group of 26-35year 20( 46%) of them were age
group of between 36-45 years.

Certificate level, 10(23%) and 22(51%) of the respondents of customers were in Diploma and
Under Graduate level. This shows that majority of the customers the respondent have Under
graduate and above education level that enables to use more information about the banks
services.

4.2 CUSTOMER RETENTION IN CBE/IN CASE OF ADIGRAT BRANCH/

As the researcher observed and known, customer retention is way of maintaining a satisfied
customer for a long period of time. It can be accomplished by giving quality service to
customers. Customer retention is the ability of a bank to attract new customers and retaining the
existing customers throughout the entire life time of relationship. The results of the selected
customers that retain in CBE of the Adigrat Brach are shown in the following table.

Table 4.3 customer retention in CBE of the ADIGRAT branch.

No Item Customer response

No Percentage

1 How long you have been a

Source: survey 2017
customer of CBE in the
Adigrat branch.

2 years 11 25%

2-5 years 22 51%

Above 5 years 10 23%

Total 43 100%

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As illustration in table 3, 11(25%) of the of the bank have two years, 22(51%) of them were 2-5
years and 10(23%) of them were above 5 years that they become customer of the bank. This
indicated that Majority of the customers (above51%) of the respondents retain in CBE in
Adigrat branch for 2-5 Years as a customers in CBE of the Adigrat branch.

4.3 CUSTOMER PERCEPTION AND EXPECTATION ABOUT CBE OF THE ADIGRAT

BRANCH SERVICES
According to the researcher observes, customer perception is how customers perceive the
service quality of the bank while they are using it and customer expectation is guessing the
service quality of the bank before they are being customers of the bank. Then customer
satisfaction is the difference between the customer’s expectation and perception, when the actual
service delivery of the bank meets or exceeds customers’ expectation then they become satisfied.
These concepts are related each other. The results that collected from the respondents of the
customers are shown in the following table.

Table 3.4 Customers perception, expectation and Satisfaction on CBE of the ADIGRAT branch Service

No Parameters Customers response

No Very high High Medium Low Total

1 Before you are customer of the Bank, - 23 20 - 43
how do you rate your perception that % - 53% 46% - 100%
you have
2 While you are being the customer of No - 18 25 - 43
CBE, the actual service you get meets
expectation, then satisfy with the % 41% 58% - 100%

service

Source survey: 2017

According to the table 4, item no 1,20( 46%) of the respondents of the customer have a medium
perception, 23(53%) of them have high perception, as before being as a customer’s this indicates
that most customers have a good image to accept the Bank. As presented on the table 4, item No
2, 25(58%) of the respondents have a medium satisfaction level, 18(41%) of them have high

18
satisfaction,. This shows that the majority of the respondents have above medium satisfaction
level of the actual service with their expectations about the Bank.

4.4 Customer satisfaction level

According to, customer satisfaction level is the result of customer perception and all internalized
assessment process. It is a judgment of response in relation to customer needs. The researcher
gathers information about the satisfaction level of customers from the respondents of employees
responded from different parameters and then the result is presented in table 3.1.5.

Table 3.5 Employees response on customer satisfaction level

There is good way of treating The customer of CBE in the

customers in CBE of the Adigrat Adigrat branch satisfied with
Items branch. the Bank service

No Percentage (%) No Percentage (%)

Strongly agree 9 30% 17 39%

Agree 21 70% 26 60%

Disagree - - - -

Strongly disagree - - - -

Total 30% 100% 43% 100%

Source survey: 2017

As presented on the table 5, 21(70%) of employees responded agree and 9(30%) of them
strongly agree that the customers are treated in a good way.

As presented on table5, majority of the respondents of the customers have agree satisfaction
level with the Bank service as expected before being a customer of CBE of the Adigrat branch
whereas majority of the respondents from the employee said that CBE have good customer
treatment and satisfied with our service.

4.5 Customer complains handling mechanisms in CBE of the Adigrat branch.

It is a mechanism that the bank used to gather customer problems about the bank services and the
means to answer or solve these problems. This is because complaints are important source of

19
information and indication to the quality perception of customers. Table3.1.6 shows CBE in
Adigrat branch Customer handling ways that the bank uses from employees and customers
responded as below.

Table 3.6 Response on customer complain handling mechanism of the Bank

Parameter Customer response Employee response

No No Percentage No Percentage
(%) (%)

Is there any customer complain handling

mechanisms on CBE in the Adigrat
branch.
1
Yes 20 46% 10 33%

No 23 53% 20 66%

Total 43 100% 30 100%

Source survey: 2017

As presented in table 6, 20 (46%) of the respondents of customers said there is complain

handling mechanisms. While 23(53%) of them reported that there is no complain handling
mechanisms and portray such reasons: - there is no suggestion boxes (folders) and the Bank does
not invite to give feedback on its service to correct it. On the employee sides 10 (33%) of CBE
employees said that there is complain handling mechanisms by using suggestion box (folder),
contact to the supervisors as soon as possible, interviewing and asking questions and direct
contact with service facilitators of the Bank. While 20(66%) said No, This indicates that the
majority of the respondents express their complaint, suggestion and interests freely to the Bank.

4.6 Tangibility of the service

Tangibility is one of the dimensions that used to measure the satisfaction levels of customers.
These dimensions include the physical facilities, equipment, personnel and communication
materials that the banks have to deliver quality services to customers. The fulfilment of such
20
facilities and computer application appears to have a significant contribution to enable the
highest rate of customer positive attitude in the bank service delivery.

Table 3.7 Assessment on tangibility

Employees become well dressed and appealing The technology and equipment
used by CBE of the Adigrat branch
satisfy customers
No Percentage NO Percentage (%)
(%)
Strongly - - - -
disagree
Disagree - - 25 58%
Neutral - - - -
Agree 25 83% 18 41%
Strongly agree 5 17% - -
Total 30 100% 43 100%
Source survey: 2017

According to table7, about the well dressing and attractiveness of CBE in Adigrat branch
employees, Above 25( 83%) of customers response have been agreed and 5(17%) strongly
agreed customers said, the technology and equipment that bank uses satisfy customers that
25(58%) Di agreed and 18 (41%) agree. appearance and technology for communication has a
psychological impact on customers and help the organization to create good customers images
and expectations, respectful responses from the CBE the reverse is also true.

4.7 Service Reliability

Service reliability is one of the basic factors in service quality determination, which brings
customer satisfaction because reliability is the customers own reflection on the bank services.
CBE of the Adigrat branch Service reliability dimensions that used to measure the satisfaction
levels of customers and their percentages are shown in table3.1.8 below.

Table 3.8 Response on the reliability of CBE in the Adigrat branch

21
 Parameters The Bank promised to do something it to do so…
Keep customers record accurately
No of Percentage (%)
respondents
Strongly disagree - -
Disagree - -
Neutral - -
Agree 22 51%
Strongly agree 21 48%
Total 43 100%
Source survey: 2017

The above table show, how CBE is reliable for customers in keeping their records accurately and
providing service one are promised. In this record 22(51 %) of customers agree, the Bank
promise to do something to do so and 21 (48%) of them strongly agree. This indicates that
majority of the respondents are agree with the costumer record keeping.

Table 3.9 assessment on the empathy and assurance of Bank

No Parameters Strongly Disagree Neutral Agree Strongl Total

disagree y Agree
1 The Bank’s operating hour No 3 10 4 9 17 43
convenient for all its % 6% 23% 9% 20% 39% 100%
customers
Employees have willingness No 4 10 5 14 10 43
2 to help customers fairly. % 9% 23% 11% 32% 23% 100%
Source survey: 2017

The above table elaborates that 33% of customers said agree on CBE of the Adigrat branch
operating hour convenient for all its customers, 26% strongly agree, 26% disagree, and 6%
strongly disagree the remaining was responded neutral about the convenience of CBE operating
hour respectively. This shows that majority of the respondent said, the CBE in the Adigrat
branch operating hours satisfied the customers, but some customers become in different.

22
In addition to this, the above table illustrates 9% and 23% of the customers of this bank said,
strongly disagree and disagree about employee’s willingness to help customers fairly. While,
11% were natural, 23% strongly agree and 32% agree with employee willingness to treat
customers fairly, this indicates that there is problems on the treating of customers on CBE of the
Adigrat branch because some of the customers respond disagree, strongly disagree and
indifferent.

4.8 Service quality of CBE on the Adigrat branch

According to palmer, service quality is the service or the product meets or exceeds those
expectations twice and twice again, then in the mind of the customer it is a quality services.
Quality is different in the view of customers because customers have different service
requirements. When the bank gives quality services, it enables to retain customers and attract
new customers. The respondents of the employees responded its ways of quality improvement in
this bank as shown in table11.

Table 3.10 Service quality of CBE on Adigrat branch

No Parameters Employees response

No Percentage
CBE is improving its service quality
1 Yes 28 93%
No 2 6%
Total 30 100%
Source survey: 2017

As presented on the above table, 28 (93%) of the employees agree CBE of the Adigrat branch
improves its service quality, while 2 (6%) of them said no. This shows that the Bank improves its
service delivery system to satisfy customers and the employees who are said “Yes” specify the
following ways of its quality improvement. Such as;

2. By acquiring world class Bank Technology

3. Providing up to date service like mobile Banking, Internet Banking, Core banking, ATM,
etc.

23
 4. Giving training for employees

5. Online system and one window system etc.

4.9 Satisfaction Level of customers

Sampled customers also asked to indicate their satisfaction level with different dimensions and
The Overall services of the bank that gives its customers .In addition to customers the employees
of the bank also responded the level of customer satisfaction as presented below table 3.1.12

Table 3.11 Satisfaction level of customer’s

No Item Customer response Employee response

No Percentage (%) No Percentage (%)

1 In general, how do you rate

customer satisfaction level
of the Bank
Very high 6 13% - -
High 12 27% 18 60%
Medium 18 41% 10 33%
Low 7 16% 2 6%
Total 43 100% 30 100%
Source survey: 2017

The above table 12 shows the satisfaction level of CBE in Adigrat branch customer from the
respondents (Both Customers and Employees), as presented on the table, 41% customer
respondents said that they are satisfied in medium level, 27% of customer highly satisfied, 13%
customers are very highly satisfied and 16% of customers said that customer satisfaction level on
CBE of the Adigrat branch services are low. While 60% of employees said that customers are
highly satisfied, 33% of employees said customers are satisfied in medium level and finally
satisfaction level is low. The finding shows that the majority of the customer’s satisfied in a
medium satisfaction level.

24
Interview result
Regarding too measure of customer satisfaction and priority to customers, many companies are
systematically measures customer satisfaction directly and respondent can also be asked
additionally requisitions to measure intention and willingness to recommend. An interview was
asked manager about

1. How the bank measure customer satisfaction and it gives priority to customers?

The manager of the bank said:-we used different method like it observe from the face to face of
the customer, suggestion box or through sale volumes of the banks use its own effort to identifies
or measure customer satisfaction. This refers that bank has recognized satisfied customer are the
ground source of ensuring customer loyalty.

2. How do the bank responses for customer’s complaints?

In order to know how they are sensitive about customer complaint and the take action
accordingly. Manager said that we received we received about through telephone and customer
them serve

Present their complaint face to face or on the place the service. The branch managers and some
officials from top management team are listening to customers saying get promptly on it
suggestion or complainants as soon as the complaints are happened the correct measurement.
This point is to understand that the bank has given much emphasis on customer compliant to
enhance satisfaction among users. Result a favorable condition only if customers are giving their
comment without basis. Researcher from above statement are the manager of the bank was
sensitive hear customer compliant on to take action.

25
CHAPTER FOUR

SUMARY CONCLUSION AND RECOMMENDATION

4.1 Summary of the major findings
The study is focused on an assessment of customer satisfaction in CBE of Adigrat branch.
Therefore, the major findings were summarized as follows.
Regarding the sex distribution as illustrated in the table 1 item 1,out of 30employee20 (66%) of
them were males and 10(44%) of the employees were females. in terms of educational level as
presented in table 1,item 2,employees of bank have 83% of the respondents were Degree and
17% of the employees have Masters . That indicates majority of the respondents of the
employees have in Degree accessible about CBE branch Adigrat .Regarding work experience
on the bank as presented in table 1, item 3, 17% of bank has within 2-5 years’ work experience
on the Bank, above 50% of them have above 5 years work on the Bank and 33% of them have
less than 2 years’ work experience on CBE. This indicates that the majority of the respondents of
the employees have Above-5 year work experience in CBE this enables to deliver quality
service to the customer. As indicated on table 1, item 4, 10% of the respondents of bank
employees have 3000 -4000salary level, 73% of the respondents have between 4001-5000 salary
level. 17% of the respondents of bank employees have Above This shows that majority of the
employees get above 4001-5000 salary level category that may encourage employees to deliver
quality service to satisfy customer of the bank. In case of customer satisfaction as a researcher
observed and known, customer retention is a way of maintaining as satisfied customer for a long
period of time. It come be accomplished by giving quality service to customers. Customer
retention is ability of a bank to attract new customer and retaining the existing customer
throughout the entire life time of relationship. As illustrated in table 3, 25% of the customer of
the bank has least than two years, 51% of them were 2-5 years and 23% of them were above 5
years that they became customer of CBE in Adigrat branch. This indicated that majority of the
customers (above 51%) of the respondents retain in CBE for more than 2-5 years as a customer
in CBE.

26
According to parasurman, customer satisfaction level is a result of customer perception and all
internalized assessment process. It is judgment of response in relation to customer needs. The
researcher gathers information about the satisfaction level of customers from the respondents of
employees responded from different parameters and the result it is presented in table 3.1.5.
In the case of empathy and assurance of the bank, knowledge, ability courtesy of the front desk
of the bank also play vital role in the delivery of service quality and customer satisfaction.
Customer satisfied when they become treated in short enough time. This response indicates on
table 10.
According to palmer, service quality is the service or the product meets or exceeds that
expectation twice and twice again, then in the mind of the customer it is a quality services.
Quality is different in the view of customers because customer has different service
requirements. When the bank gives quality service, it enables to retain customers and attract new
customers. The respondent of the employees responded its way of quality improvement in CBE
as shown in table 11.
Sampled customers also asked to indicate their satisfaction level with different dimensions and
the overall service of the bank that gives its customers. In addition to customers the employees of
bank also responded level of customer satisfaction as presented in table .11
As shown on table 11 the satisfaction level of CBE customers from the respondents (both
customers and employees), as presented on the table 41% customer respondents said that they
are satisfied in medium level (27%) of customers highly satisfied, 13% customers are very
highly satisfied and 16% of customers said that the customer satisfaction level on CBE service
are low. While 60% of employees said that customers are highly satisfied, 33% of employees
said customers are satisfied in medium level and finally satisfaction level is low. This finding
show that the majority of the customers satisfied in a High satisfaction level.
5.1 Conclusion
The researcher starts the study having an objective to assess the degree of customer satisfaction

in respect to the service delivery of CBE Adigrat branch. By distributing questionnaires to the

customers and employees of the bank and by analyzing and presenting the collected data, the

researcher draws the following conclusions.

27
  Concerning customer’s perception, 46% of the respondents of the customer have a

medium level of perception as before a customer of the bank. In addition to this. 46%

of the customer’s that the actual service acquired from the Bank meets their

expectation by comparing before and as being a customer of bank in a medium level

this indicates there is no much difference with the expectation (perception) and the

actual service even if not delighted.

 Majority of the employee respondents (above 70%) said that CBE of the Adigrat branch

have a good ways of customer treatment and deliver quality services to satisfy customers.

 Regarding with customer compliant handling mechanism, 46% of the customers and

33% of employees agree that, there is customer compliant handling mechanisms which

are suggestion boxes (folders), contact with the supervisors and the service facilitators as

the Bank assigned.

 Concerning with tangibility, above 83% of customers agree that employees dressing is

attractive, this helps to identify easily and leads customer satisfaction, whereas on the

technology and equipment used by the Bank leads dissatisfaction on customers because

58% of the respondents answered disagree with the technology and equipment used by

the bank to satisfy customers.

 Regarding reliability, about 51% of customer respondents were Agree with the Bank

promised to do something to do so and keep customers record accurately.

 Regarding the responsiveness of CBE in the Adigrat branch employees, never busy to

respond customer request promptly whereas above 23% of the customers said that CBE

of the Adigrat branch employees don’t have willingness to answer customer questions,

this leads to customer disaffection.

28
  Majority of the respondents (above 39%) of customers said that the Bank operating hour is

convenient for all its customers, even if 23% of they were not satisfied with the Bank

operating hours. Lastly, 23% of customers responded the employees don’t help customers

fairly in CBE, of the Adigrat branch even though 41% of customers responded on the

fairness of helping customer on the service delivery time.

 Majority of the employee said that bank improves its service quality to satisfy its

customer by acquiring world class Bank technology, providing update service like

mobile and internet Banking and online system and one widow system e.t.c.

 On the satisfaction level of customers of CBE, 39% of the respondents of the employee

respond that customer satisfaction level on the Bank service were satisfactory even if the

customers not become, delighted while 60% of the customer’s responses were on

medium level of satisfaction on CBE services.

5.2. Recommendations
One organization that can be made at this point was that customers satisfaction is an
organizations best asset and customer today’s demand personal attention from business they
spend their money. Therefore customer services are moving up the priority list in today’s
business and it is consuming more of their time and budget. In today’s business customer is in
the driver’s seat, with enough muscle to dictate business terms and money to pay for choices.
Based on the conclusion and the finding from the survey, the following recommendations were
forwarded:

 Currently CBE is diversifying its branches all over the country. However, the service
delivery of those new branches are not satisfying customers, the Bank must fulfill all the
necessary materials and facilities (technology, chair) to enable deliver quality services
and satisfy customers in long term. Adigrat branch is one the part of CBE

 CBE of the Adigrat branch should invest their employees, these in the front line, to
motivate them to serve customer’s best, front line employees should be trained to act in a

29
 manner that recognizes customers as a valuable asset. To motivate employees and get
there commitment, the bank should offer an attractive benefits in different forms that
recognizes the contribution of their efforts towards the overall success of the bank.

 CBE should establish an efficient and effective ways of customer complaint handling
procedures and communicate those procedures with customers. This can be done through:

 Establish independent sections which are totally responsible for customers’ complaints
only.

 Provide immediate actions for customers complain.

 Putting suggestion box in place where customers can easily accesses.

 Increases the awareness of employees towards customers complains.

 Customers want quality services and products. Therefore, CBE of the Adigrat branch
should improve its service quality and the bank give attention for both new customers as
well as retaining the existing ones by using different ways that includes Core banking,
ATM, One window system, mobile and internet banking etc. .

The bank should make clear its services for its customer’s as well as its physical components
make clean, attractive. Comfortable and try to make customers feel satisfy when they come to

the bank.

Part II- Rate the front desk employees (Tellers) based on the SERVQUAL
dimensions.
SERVQUAL dimensions

 Employees become well dressed and appealing …

 The technology and equipment used by the Bank is

satisfying customers….

30
  The Bank promised to do something it do so…

 Keep customers record accurately

 Employees have willingness to answer customer

questions…

Employees have willingness to helpcustomer’s fairy……..

31
Reference
Graham Roberts. Phelps (2001):- Customer Relationship Management, How to Turn a Good
Business into a Great one, Replica Press PVT. Ltd. India.
John Livens and Colin Shaw (2002, 2005):- Building Great Customer Experience Creative Print
and Design Wales Inc.
John TschoHl (1991)-Achieving Excellence through Customer Service. USA.
Keith Denton (1998)- “How to Give Quality Services To Your Customers.” Gulf Publishing
Company, Houston, Texas.
Kotler P. and Gray Armstrong (1996): Principles of Marketing 7th ed. Englewood Clift’s, NJ.
Prince Hall.
P. Kotler (2008): Principles of Marketing, 14th ed. Palatino by s4carlisle Publishing Services.
P.Kotler (2010): Principles of Marketing; 13th edition, Pearson education.

www.CBE.com, April, 2014 report.

32
 Appendix
PART ONE
Adigrat University
College of Business and Economics
Department of Management

A questionnaire filled by employee of CBE in the Adigrat branch.

Dear Respondent!

This questionnaire is prepared by Lidiya Abayneh at Adigrat university department of

management on the research title: An Assessment of customer satisfaction of CBE, In case of
Adigrat branch .You are kindly request to give your precious time and give your response to the
questions genuinely. Please feel free, every things strictly confidential. You are not required to
disclose your name and other personal identification. Put “P” for your response.
Thanking you in Advance!

1. Sex:- Male o Female o

2.Education level:- Certificate o Diploma o Degree o Masters o
3. Income Level
3000-4000 o 40001-5000 Above 5000o
4 Service Experience 2 yearso
2-5 yearso above 5 yearso
5 Is there any customer complaint handling mechanism
Yes o NOo
6 The customers are satisfied with the Bank’s services
Strongly disagree oDisagree oAgree oStrongly agreeo
7 Commercial Bank of Ethiopia is improving its services quality
Yes o NOo
8 In general, how do you rate customer satisfaction level in the Bank?

33
Very high oHighoMediumoLowo
9 employees become well-dressed appealing
Strongly disagreeo Dis agreeo Natural o agreeo strongly agree
10 The Banks operating hour convenient for all its Customers
Strongly disagreeo Dis agreeo naturalo Agreeo Strongly Agree
PART TWO
A Questionnaire to be filled by customers CBE of the Adigrat branch
Dear re spondents!
This questionnaire is prepared by Lidiya Abayneh at Adigrat university department of
management on the research title: An Assessment of customer satisfaction of CBE in case of
Adigrat branch. You are kindly requested to give your precious time and give your response to
the questions genuinely. Please feel free, every things strictly confidential. You are not required
to disclose your name and other personal identification. Thanking you in Advance!
Part I:- Personal information and general questions about the Bank
8 Sex:- Maleo Female o
9 Age:- 15-25 year o 26-35 year o 36-45 year o
Above 45 year o
10 Educational level:- up to high school completed o
oCertificate o Diploma o under graduate o
11 For how long you have been a customer of the Bank
Less than 2 year o 2-5 year o above 5 years o
12 Before you are the customer of the Bank, how do you rate your expectation that you have
on the Bank
Very high o High o Medium o Low o
13 While you are being the customer of the Bank, the actual service you get meets your
expectation?
Very high oHigho Medium oLowo
14 In general how do you rate your satisfaction level with the Bank’s services
Very high o High o Medium o Low o

34
There is good way of treating customers in CBE of the Adigrat branch Strongly agree o agreeo
disagreeo strongly disagreeo
INTERVIEW
1. How the bank measure customer satisfaction and it gives priority to customers?

2. How do the bank responses for customer’s complaints?

35