Bank Service Quality in Ethiopia: the Case of North and South Gondar Zones

The main objective of this study was to test the impact of service quality dimensions on customer satisfaction. The conceptual model proposed in the study postulated that service quality impacts on customer satisfaction directly. The model also postulated that service quality has a positive relationship with customer satisfaction, and tested them through Multiple Regression to find their significance. Questionnaires were distributed to gather data. The SERVQUAL instrument has a useful diagnostic role to play in assessing and monitoring service quality in banks. The results of the study confirmed the five factors of service quality with customer satisfaction were significant in all factors of service quality. Reliability, Responsiveness, Empathy, Assurance, and Tangibles are significant determinants of customer satisfaction. Thus, service quality can be used to predict customer satisfaction. The research has shown a positive relationship between service quality and customer satisfaction. This research concluded that service quality is the basic and also most important factor that impacts customer satisfaction. This finding reinforces the need for banks managers to place an emphasis on the underlying dimensions of service quality, especially on Assurance, and should start with improving service quality in order to raise customer satisfaction.