THE EFFECT OF SERVICE QUALITY ON CUSTOMERS’ SATISFACTION (THE CASE OF DASHEN BANK S.C., SELECTED BRNACHES IN MEKELLE)

Abstract

Nowadays, firms especially, service providing firms are running their business under a stiff completion. One among the major requirements for them to beat such completion and enjoy competitive advantage is to provide quality service to their customers. Hence, the objective of this research was to examine the determinants of service quality in Dashen bank, Mekelle district as perceived from its customers. Specifically, the focus of the study was to investigate on how service quality dimensions (Tangibility, reliability, responsiveness, assurance and empathy) affect customer satisfaction in the banking sector, specifically focusing on Dashen bank’s branches in Mekelle city. The main objective is to examine the effect of the above mentioned service quality dimensions on customer satisfaction. The specific objectives included assessing the effect of each dimension and identifying major challenges faced by customers. Methodologically, the research employs a cross-sectional and explanatory survey design, using both primary data (collected via structured questionnaire) and secondary data. 200 customers were selected from five branches of Dashen bank, Mekelle district. The SEVIQUAL model is used to measure service quality. The study finds that all five service quality dimensions positively influence customer satisfaction, with assurance and reliability having the most significant impact. Lastly, it can be concluded that improving service quality in these dimensions can enhance customer satisfaction and loyalty, helping Dashen Bank maintain a competitive edge.