DOI: 10.36347/sjebm.2016.v03i10.003

Pages: 533-544

This study is to examine the impact of service quality on customer satisfaction evidence from select private banks in Dessie Town, Ethiopia. Service quality has been defined as a degree and direction of discrepancy between customers' service perception and expectations. Customer satisfaction is defined as the customer’s subjective evaluation of a consumption experience, based on some relationship between the customer’s perceptions and objective attributes of the product. To achieve the objectives of this study, data was collected through questionnaire from a sample of 384 bank customer. These respondents were selected using simple random sampling method. The data collected from the questionnaire were analyzed using Statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. The results of this study indicate that, except responsiveness the four service quality dimensions (tangibility, assurance, empathy and reliability) have positive and significant relationship with customer satisfaction. The finding of this study also indicates that customers were most satisfied with the assurance dimensions of service quality. The results of the descriptive statistical analysis indicated that, customers were most satisfied with the tangibility dimensions of service quality followed by assurance and responsiveness. However, customers were less satisfied with empathy and reliability dimensions of service quality. The correlation result shows that, there is a positive and significant relationship between all items of service quality dimension, tangibility and customer satisfaction, reliability and customer satisfaction, responsiveness and customer satisfaction, assurance and customer satisfaction, empathy and customer satisfaction. Based on the findings of the study, the researcher forwards some recommendations to the banks management and suggestions for other researchers.