MADDA WALABU UNIVERSITY

FACTORS AFFECTING SERVICE QUALITY IN CASE OF COMMERCIAL BANK

OF ETHIOPIA AT MADDA WALABU BRANCH

COLLEGE OF ECONOMICS AND BUSINESS

DEPARTMENT OF MANAGEMENT

Prepared: BY METADEL GETANEH

ID NUMBER:-UGR/4404/11

Advisor: - FISAHA GIDEY

A SENIOR ESSAY II IS SUBMITTED IN DEPARTMENT OF MANAGEMENT IN

Partial Fulfillment of the Requirements of the Bachelor Degree of MANAGEMENT

July, 2021
BALE ROBE ETHIOPIA

ACKNOWLEDGEMENT

First and for most I would like to thank to the almighty God for everything he have made me
accomplish so far. And following, I would also extend my special thanks for my families for
their overall support and encouragement specially my brother for his supports of best efforts
he have contributed towards my education. And in the third place I would like to express my

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deepest gratitude to my advisor ( Fisah Gidey MA) for his technical advice timely comments
of my work. And last but not least, I would like to thank this bank manager for helping me
with the data I needed to attain for my study.

ABSTRACT

Service quality is the delivery of excellent or superior service relative to customer

expectation. This study was identifying factors affecting service quality on customer
satisfaction of commercial Bank and study was conduct in commercial Bank madda walabu
Branch. The researche was using both qualitative and quantitative research approach. the
researche was use employee descriptive research design. Target population for this study

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was commercial Bank madda walabu Branch customers. The researche was distributing
questioner to 100 customers. this study was uses non-probability sampling technique and
From the various methods of non-probability the researche was use judgmental sampling
technique. Both primary and secondary data source was considered. The primary data was
gathered through questioner and secondary data was collect from different research articles,
text books, commercial Bank reports and internet. Data was present in tabulation and
analysis by descriptive statistics percentage. finally the study was organize into five chapter:-
which are chapter one introduction, chapter two literature review, chapter three research
methodology, chapter four data analysis and presentation and the final chapter is
summarization, conclusion and recommendation was include.

Key Terms:- Service Qualiity

TABLE CONTENT

ACKNOWLEDEMENT -----------------------------------------------------------------------------I

ABSTRACT --------------------------------------------------------------------II

List of tables---------------------------------------------------------------------------III

CHAPTER 0NE

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 1. Introduction

1.1 Background of the study---------------------------------------------------------------------

1.3 1 General Objective ---------------------------------------------------------------------3

1.3.2 Specific objective

-----------------------------------------------------------------------------------3

1.5. Scope of the study ----------------------------------------------------------4

1.6 Limitation of the study------------------------------------------------------------------------4

1.7 Significant of the study ------------------------------------------------------------------------

4

CHAPTER TWO

2. Review of literature

2.1 Service---------------------------------------------------------------------------------------------5

2.1.1.Definition of service----------------------------------------------------------------------5

2.1.2. Basic characteristics of service---------------------------------------------------------5

2.1.3. Service vs Customer service------------------------------------------------------------8

2.2 Definition of service quality--------------------------------------------------------------------8

2.2.1. The transcendent approach--------------------------------------------------------------9

2.2.2. The product-based approach------------------------------------------------------------9

2.2.3. The user-based approach----------------------------------------------------------------9

2.2.4. The manufacturing-based approach---------------------------------------------------10

2.2.5. Quality is value---------------------------------------------------------------------------10

2.3. Servqual (What to measure)----------------------------------------------------------------------11

2.4. Service quality gap------------------------------------------------------------------------------12

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2.5. Measuring service quality using servqual----------------------------------------------------13

2.6. Customer expectation of service---------------------------------------------------------------15

2.7. Customer satisfaction----------------------------------------------------------------------------15

2.8. Service quality and satisfaction----------------------------------------------------------------15

2.9. satisfying customer complaints----------------------------------------------------------------16

CHAPTER THREE

3 . Methodology of the study

3.1. Study area description-------------------------------------------------------------------------18

3.1.1. Location---------------------------------------------------------------------------------18

3.2. Research design and strategies---------------------------------------------------------------18

3.3. Data source and data collection techniques------------------------------------------------19

3.3.1. Data type and source-------------------------------------------------------------------19

3.3.2. Method of data collection--------------------------------------------------------------19

3.4.Sampling design---------------------------------------------------------------------------------19

3.4.1. Sampling techniques--------------------------------------------------------------------19

3.4.2. Sample size determination--------------------------------------------------------------19

3.5. data analysis techniques------------------------------------------------------------------------20

CHAPTER FOUR

4. Data analysis and representation-------------------------------------------21

CHAPTER FIVE

5. Summary, conclusion and recommendation

5.1. Summary--------------------------------------------------------------------------------------34

5.2. Conclusion------------------------------------------------------------------------------------35

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5.3. Recommendation-----------------------------------------------------------------------------36

 Reference


 List of tables

List of Tables Page

Table 4.1.Personal information on sex of the respondents--------------------------------------26

Table4.2.The work level of the respondents------------------------------------------------------27

Table 4.3. Age of respondents-----------------------------------------------------------------------27

Table 4.4. Income level of the respondent---------------------------------------------------------28

Table 4.5. About equipment-----------------------------------------------------------------28

Table 4.6. Physical facility attractiveness---------------------------------------------------------29

Table 4.7. Employee related question--------------------------------------------------------------29

Table 4.8. Facility complying with service rendered--------------------------------------------30

Table 4.9. Promise keeping of the bank-----------------------------------------------------------31

Table 4.10. Dependability and trust worthiness of the bank------------------------------------31

Table 4.11. Accuracy of Dashen on keeping customers record---------------------------------32

Table 4.12. Consistency and speed of service delivery------------------------------------------32

Table 4.13. Announcement about delivered service----------------------------------------------33

Table 4.14. Willingness of employees to help customer-----------------------------------------33

Table 4.15. Promptness of employees on responding customer requests---------------------34

Table 4.16.Competency of Dashen employees ---------------------------------------------------34

Table 4.17. Trust ability of Dashen bank employee----------------------------------------------35

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Table 4.18. Safeness of transaction with Dashen ------------------------------------------------35

Table 4.19. Politeness of the employee-----------------------------------------------------------36

Table 4.20. Giving attention individually---------------------------------------------------------36

Table 4.21. Understanding what customer needs-------------------------------------------------37

Table 4.22. Position of Dashen in the heart of the customer-----------------------------------37

Table 4.23. Convenience operating hour---------------------------------------------------------38

CHAPTER ONE

Introduction

1.1. Background of the study

Kotler and Keller (2012) defined service as any act or performance one party can offer
to another that is essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product.

Many authors are defined service in different related terms according to Mudie and Pirrie
(2006) define service as an act, added, performance, or an effort. Thus it is differ from
manufacturing organization that produces something that can be seen, touched and held.
Since service is something that is perceived, sensed and experienced.

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Zeithmal and Bitner (2004) said "Services are deeds, processes and performances.” Service is
represented to the client through problem analysis activities, meetings with the client, follow-
up calls, and reporting a series of deeds, processes, and performances. Although it seems
that the definition is more precise, it provides marketing orientation to the services
concept. This definition gives an understanding that the consumer is interested
in deeds, processes and performances in perceiving the value of the service.

To define service, there is no standard or commonly accepted definition, with the contexts of
business or retailing operations. Service is any act or performance that one partly can offer to
another that is essentially intangible and does not result in the ownership of anything, its
production may or may not be tied to a physical production (kotler, 2006). Satisfaction from
service quality is usually evaluated in terms of technical quality and functional quality
(Gronors, 1990).

According to Rajesh K. and Nishant, (2013) the definition of quality may vary from person to
person and from situation to situation. The definitions of service quality vary only in wording
but typically involve determining whether perceived service delivery meets, exceeds or fails
to meet customer expectations.

Customer satisfaction is a personal feeling of either pleasure or disappointment resulting from

the evaluation of services provided by an organization to an individual in relation to
expectations. (Rajesh K. and Nishant, 2013.)
Customer service is a task, other than common operations that involves interactions with
customer in person, by telecommunication mail, of automated process. The meaning of
customer service varies from one organization to another. Within the service sector, it can be
described as the total quality of the service process as perceived by the customer. (Meheret ,
2011)

A critical component of customer perceptions in the case of pure services, service quality will
be the dominant element in customers’ evaluations. In cases where customers services or
service are offered in combination with a physical product service quality ay also very critical
in determining customer satisfaction. (Meheret, 2011)

1.2. Statement of the problem

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Any service provider organization needs to maintain high service quality as much as possible
for its customers. This is viable only by pursuing service quality dimensions; those are
reliability, responsiveness, empathy, assurance, and tangibility. The main objective of the
researche is to identify factors that affect service quality on customer satisfaction of
commercial Bank. Researche identify that there is information gap on knowhow of the
manager of bank on factors that affect service quality on customer satisfaction. The following
factors are potentially can affect service quality of the bank such as long waiting time,
crowdedness of customer, uncomfortable environment, employee approach to the customer
and forth. The researche on its personal observation identify that there is long waiting time in
the queue system and waiting line. In addition network connection problem and there is also
not that much comfortable environment in waiting line. Large number of customer served
simultaneously. This creates crowdedness mainly during holiday and at lunch time of any
other day. At lunch time there are few employees which don’t meet the demand. All these
problems potentially may affect service quality of the bank. Finally the researche will answer
the following related questions to identify the real factors that affect service quality of
commercial Bank.

1.4. Research questions

The researche will give answers for the following question.

 Is the bank has an ability to perform the promised service dependably and accurately?
 Is there attentiveness and promptness in dealing with customer requests, questions,
complaints and problems?
 Is the bank employees are knowledge, courtesy and ability to inspire trust and
confidence?
 Is the bank caring, individualized attention for the customer?
 Is the bank has good appearance of physical facilities, equipment, personal and
communication materials that satisfy the customer?
1.3. Research objectives

1.3.1. General objectives

The general objective of this study is to investigate the factors affecting service quality in
Commercial Bank. From the perspective of individual users.

1.3.2. Specific objectives

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  To examine whether the bank has an ability to perform the promised service
dependably and accurately.
 To assess the attentiveness and promptness in dealing with customer requests,
questions, complains and problems.
 To apprise the bank employees knowledge curtsey and ability to inspire trust and
confidence of the customers on the bank service.
 To diagnosis whether the bank employees give individual attention for the customer
or not.
 To evaluate the bank has good appearance of physical facilities, equipment, personnel
and communication materials that make customer comfortable with the service the
set.
1.5. Scope of the study

This research was focus only for Commercial Bank madda Walabu customer. Specifically for
madde walabu Branch individual customers. The researche was choosing these customers
because it is simple to conduct true and exact information, time delimitation and they can be
found easily.

1.6. Limitation of the study

It is obvious that the researche is new for such kinds of study thus this create lack of
experiences and there is also financial and time resource limitation. In addition shortage of
reference books is critically affecting the achievement of the study.

1.7. Significance of the study

The purpose of this study was assessing the service quality instruments in bank service from
the perspective of individual customer in madda walabu.

The study was expected to make the following contribution.

1. The researche partial fulfillment of bachelor degree and develop experience how to
conduct research.
2. The study was also hopped to contribution idea for other researche who wants to
conduct further studies in service quality measurement in financial sector, mainly in
bank service.
3. The researche was developing its knowledge and experiences in such study.

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 4. It also used for the organization which the researches conduct the study to get
emphasis of them and to know their strong and weak side.
1.8. DISSMINATION OF THE PAPER.

The main output of the study was disseminated for the customer through presentation of the
bank service to the customer. Linked like need about in madde walabu give different banking
service quality by the researche and through focused on the Commercial bank over mined
about service quality and service delivery.

1.9. SCHEME OF CHATERIZATION

The research was organized in five chapters, which was stated in the following manner.

Chapter one, deals with introduction of the research, statement of the problems of the study,
chapter two, deals with review of related literature, chapter three, deals with research
methodology, chapter four was about data presentation and analysis and chapter five, mainly
concern with conclusion and recommendation

CHAPTERTWO
LITERATURE REVIEW

2.1 Service

Service is an act or performance offered by one party to another. Although the process may
be tied to a physical product, the performance is essentially intangible and does not normally
result in ownership of any of the factors of production. Services are economic activities that
create value and provide benefits for customer’s specific times and places, as a result of
bringing about a desired change in or on behalf of the recipient of the service. (Dr.B.BALAJI,
2002).

2.1.1. Definition of Service

Kotler and Keller (2012) defined service as any act or performance one party can offer
to another that is essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product.
Many authors are defined service in different related terms according to mudie and pirrie
(2006) define service as an act, added, performance, or an effort. Thus it is differ from

15
manufacturing organization that produces something that can be seen, touched and held. since
service is something that is perceived, sensed and experienced.
Zeithmal and Bitner (2004) said "Services are deeds, processes and performances.” Service is
represented to the client through problem analysis activities, meetings with the client, follow-
up calls, and reporting a series of deeds, processes, and performances. Although it seems
that the definition is more precise, it provides marketing orientation to the services
concept. This definition gives an understanding that the consumer is interested
in deeds, processes and performances in perceiving the value of the service.

Services may be defined as intangible activities performed by persons or machines or

both for purpose of creating value perceptions among consumers. Since, services are
intangible activity (ies) or benefit (s) produced by the service provider, in association with
the consumer, its quality results in perception and value assessment by the consumer.

2.1.2 Basic Characteristics of Services

According to Kotler and Keller (2012), four distinctive service characteristics greatly
affect the design of marketing programs: intangibility, inseparability, variability, and
perishability

 Intangibility

Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they
are bought. To reduce uncertainty, buyers will look for evidence of quality by drawing
inferences from the place, people, equipment, communication material, symbols, and price.
Therefore, the service provider’s task is to “manage the evidence,” to “tangibilize the
intangible.” Service companies can try to demonstrate their service quality through physical
evidence and presentation. Suppose a bank wants to position itself as the “fast” bank. It could
make this positioning strategy tangible through any number of marketing tools:
1. Place-The exterior and interior should have clean lines. The layout of the desks and the
traffic flow should be planned carefully. Waiting lines should not get overly long.
2. People-Employees should be busy, but there should be a sufficient number to manage the
work load.
3. Equipment-Computers, copy machines, desks, and ATMs should look like, and be, state of
the art.

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4. Communication material-Printed materials-text and photos-should suggest efficiency and
speed.
5. Symbols-The bank’s name and symbol could suggest fast service.
6. Price-The bank could advertise that it will deposit $5 in the account of any customer who
waits in line more than five minutes.
Service marketers must be able to transform intangible services into concrete benefits and a
well-defined experience. Service providers often choose brand elements-logos, symbols,
characters, and slogans-to make the service and its key benefits more tangible.
 Inseparability

Whereas physical goods are manufactured, then inventoried, then distributed, and later
consumed, services are typically produced and consumed simultaneously. The provider is
part of the service. Because the client is also often present, provider–client interaction is a
special feature of services marketing, Kotler and Keller (2012). There is a marked
distinction between physical goods and services in terms of the sequence of production and
consumption: Whereas goods are first produced, then stored and finally sold and consumed,
services are first sold, then produced and consumed simultaneously. For the production of
many services (e.g. counseling, museums, hairdressing, rail travel, hotels), the customer must
be physically present. Some services may be produced and delivered in circumstances where
the customer’s presence is optional, e.g. carpet cleaning, plumbing. Other services may rely
more on written communication, e.g. distance learning course, or on technology, e.g. home
banking. Mudie and Pirrie (2006).
 Heterogeneity

Kotler and Keller (2012), because the quality of services depends on who provides them,
when and where, and to whom, services are highly variable. Service buyers are aware of this
variability and often talk to others before selecting a service provider. To reassure customers,
some firms offer service guarantees that may reduce consumer perceptions of risk. Here are
three steps service firms can take to increase quality control.
1. Invest in good hiring and training procedures. Recruiting the right employees and
providing them with excellent training is crucial, regardless of whether employees are highly
skilled professionals or low-skilled workers. Better-trained personnel exhibit six
characteristics: Competence courtesy, credibility, reliability, responsiveness, and
communication.

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 2. Standardize the service-performance process throughout the
organization. A service blueprint
Can map out the service process, the points of customer contact, and the evidence of service
from the customer’s point of view.
3. Monitor customer satisfaction. Employ suggestion and complaint systems,
customer surveys,
And comparison shopping. Customer needs may vary in different areas, allowing firms to
develop region-specific customer satisfaction programs.
Firms can also develop customer information databases and systems for more personalized
service, especially online. Because services are a subjective experience, service firms can
also design marketing communication and information programs so consumers learn more
about the brand than what they get from service encounters alone.
According to Mudie and Pirrie (2006).An unavoidable consequence of simultaneous
production and consumption is variability in performance of a service. The quality of the
service may vary depending on who provides it, as well as when and how it is provided.
 Perishability

Kotler and Keller (2012), Services cannot be stored, so their perishability can be a
problem when demand fluctuates. Demand or yield management is critical the right services
must be available to the right customers at the right places at the right times and right prices
to maximize profitability. Several strategies can produce a better match between service
demand and supply
On the demand side:
• Differential pricing will shift some demand from peak to off-peak periods.
• Nonpeak demand can be cultivated.
• Complementary services can provide alternatives to waiting customers, such as
Automated teller machines in banks.
• Reservation systems are a way to manage the demand level.
On the supply side:
• Part-time employees can serve peak demand.
• Peak-time efficiency routines can allow employees to perform only essential tasks during
peak periods
• Increased consumer participation frees service providers’ time
• Shared services can improve offerings.

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• Facilities for future expansion can be a good investment
2.1.3 Services versus Customer Service

According to Zeithmal and Bitner, (2004) services can be offered to the market place by
manufacturers and technology companies as well. Customer service is also provided by all
types of companies including manufacturers, IT companies, and service companies.
Customer service is the service provided in support of a company's core products. Bank
customer service most often includes answering questions, taking orders, technical advices,
dealing with billing issues, handling complaints, and perhaps scheduling loaning periods.
Customer service can occur on site (as when a retail employee helps a customer find a desired
item or answers a question), or it can occur over the phone or via the Internet. Many
companies operate customer service call centers, often staffed around the clock.

2.2 Definition of Service Quality

According to Rajesh K. and Nishant, (2013) the definition of quality may vary from person to
person and from situation to situation. The definitions of service quality vary only in wording
but typically involve determining whether perceived service delivery meets, exceeds or fails
to meet customer expectations.
Mudie and Pirrie (2006), Quality is a word that enjoys widespread usage whilst failing to
capture an agreed definition. From established dictionaries quality is defined as:
 Property, attribute, characteristic, mark, distinction
 Grade, caliber, rank, status, importance, value, worth
 Old fashioned eminence, prominence, excellence, superiority, distinction, supremacy
 General excellence of standard or level
 A distinctive attribute or characteristic possessed by someone or something
 A level of superiority that is usually high
 Of superior grade
to see these in more elaborated way let as review see them in different approach. David
Garvin is noteworthy for analyzing the range of quality definitions, classifying them into five
groups.

2.2.1 The transcendent approach

According to this view, quality is synonymous with innate excellence, absolute and
universally recognizable: ‘You will know it when you see it’. It emphasizes quality as a mark
of uncompromising standards. The origin of quality as excellence dates back to the Greek

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philosophers who referred to it as ‘the best’, ‘the highest form’, ‘the highest idea’. If, then,
we are to grant the title ‘quality’ only to those products and services that achieve the highest
standards, what is to be said of the rest? It would seem we are left with individual perceptions
or judgments of a service’s attributes. That, some might argue, is the current marketing
approach to the identification and measurement of service quality (ibid).
2.2.2 The product-based approach
The emphasis here is on quality as a precise and measurable variable. Any differences (in
quality) that do occur reflect differences in the quantity of some ingredient or attribute
possessed by a product. This approach leads to a vertical or hierarchical ordering of quality.
Products are raised according to the amount of ingredients/attributes that each possesses.
However, an unambiguous ranking is possible only if the ingredients/attributes in question
are considered preferable by all buyers. For services, on the other hand, precision and
measurability represent an ongoing challenge (ibid).
2.2.3 The user-based approach
This approach starts from the premise that quality ‘lies in the eyes of the beholder’.
Consumers are said to have specific wants or needs and those products that best meet their
preferences are those that they view as having the highest quality. There are two problems
With this approach. First, with so many different preferences in the marketplace it is going to
be difficult arriving at an agreed definition of quality. Second, it tends to equate quality with
satisfaction. As Garvin6 perceptually notes, ‘a product that maximizes satisfaction is
certainly preferable to one that meets fewer needs, but is it necessarily better as well’.
Garvin’s user-based approach focuses exclusively on the customer in the determination of
quality. His other four approaches are rooted in manufacturing/operations and engineering
and consequently have difficulty confronting the unique characteristics of services.
2.2.4 The manufacturing-based approach
Whilst the user-based approach to quality is rooted in the subjectivity of consumer
preferences, the manufacturing-based approach, as the name suggests, focuses on internal
matters. It has come to be known as conformance specifications. Products are designed and
manufactured according to predetermined specifications.
2.2.5 Quality is value
In contrast to quality as absolute (the excellence level of thought), the value approach regards
quality as relative to price. A leading authority on pricing, suggests that a buyer’s perception

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of value represents a mental trade-off between the quality and benefits perceived relative to
the sacrifice perceived by paying the price. Thus,
Perceived value= perceived benefits (gain)
-----------------------------
Perceived sacrifice (give)

Buyers, in effect, use price as an index of quality as well as an index of the sacrifice that is
made in purchasing it. According to Feigenbaum, the notion of value has to be included in
any quality definition: Quality does not have the popular meaning of ‘best’ in any absolute
sense. It means ‘best for certain customer conditions’. These conditions are (a) the actual use
and (b) the selling price of the product. Product quality cannot be thought of apart from
product cost. The last sentence in the quotation above is noteworthy as it suggests that ‘you
get what you pay for’. Value, therefore, should be viewed as higher price/higher quality,
lower price/lower quality. However the price set is, in addition, a reflection of market
conditions, internal costs (material, labour, equipment) and operating efficiencies. Depending
on the impact of these factors price may not reflect quality. Customers unable to comprehend
market conditions and cost behaviour are thereby exempted from making an informed
judgment of value. A 'high price’ for whatever service is not necessarily an indicator or
reassurance of excellent quality.
2.3 Service quality (what to measure)
Mudie and Pirrie (2006), Service quality is viewed as a multi-dimensional concept.
Consumers assess and evaluate a number of factors or dimensions. The fifth gap in the Gaps
Model of Service Quality gave rise to SERVQUAL, a self-administered questionnaire
purported to be a generic measure of service quality. In other words, it was designed to be
applicable to a wide variety of services. The dimensions to be measured in the scale are:
Reliability – the ability to perform the promised service dependably and accurately. It is
regarded as the most important determinant of perceptions of service quality. This dimension
is particularly crucial for services such as railways, buses, banks, delivery building societies,
insurance companies services and trade services.
Responsiveness – the willingness to help customers and to provide prompt service. This
dimension is particularly prevalent where customers have requests, questions, complaints and
problems.
Assurance – the employees’ knowledge and courtesy, and the ability of the service to inspire
trust and confidence. This dimension may be of particular concern for customers
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of health, financial and legal services.
Empathy – the caring, individualized attention the service provides its customers. Small
service companies are better placed (though not necessarily better at) for treating customers
as individuals than their larger, invariably standardized counterparts. However, relationship
marketing is designed to offer a more individualistic approach for customers of large
organizations.
Tangibles – the appearance of physical facilities, equipment, personnel and communication
materials. All of these are used in varying degrees to project an image that will find favor
with consumers. Tangibles will be of particular significance where the customer’s physical
presence at a service facility is necessary for consumption to occur, e.g. hair salon, hotel, and
night club.
To apply these dimensions to a particular service organization will require definition in
specific action and behavioral terms. For example, what does reliability mean in service A as
distinct from service B? How does an organization show responsiveness? How does
assurance differ between service A and service B? What can a service do specifically to
demonstrate empathy? On a more general level, it has been argued that service organizations
should be subject to a quality audit as well as the legally required financial audit. Generally
accepted service principles (GASP) would provide service organizations with explanations of
upward and downward trends in quality, just as companies explain good and bad trends in
terms of sales and profits. In today’s society there is now much more of an ‘audit culture’
particularly in the public sector with various bodies charged with overseeing and monitoring
quality standards. For services in general, awards and certification are granted to companies
who meet certain criteria in respect of standards. Additionally there are programs such as
Total Quality Management (TQM) which companies can adopt. In contrast to external
monitoring and the development of universal standards, SERVQUAL is a technique that
purports to measure the customer’s view of quality at the level of a specific service
organization. A summary of how it works together with possible limitations is considered
next.
2.4 Service Quality Gaps

The Gap model of service quality was developed by Parasuraman, Berry and Zeithaml
(1985), and more recently described in Zeithaml and Bitner (2004). It has served as a
framework for research in services marketing, including hospitality marketing, for over two

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decades. The model identifies four specific gaps leading to a fifth overall gap between
customers.’ expectations and perceived service.

The five gaps

􀁸 Customers have expectations for service experiences and they use them to measure
Against the perceived service performance in their judgment of service quality. It is essential,
then, that managers determine what those expectations are when designing the service. The
first gap in service quality occurs when management fails to accurately identify customer
expectations. It is referred to as the knowledge gap. Specifically, it is the difference in
customer expectations and management's perception of customer expectations. Hotel
managers, for instance, must know and understand what their guests expect from their stay,
including all tangibles (the room, amenities, lobbies features) and intangible components
(availability of additional services, ease of check-in and check-out procedures). The size of
the gap is dependent on:
􀁸 The extent of upward communication (from customers to top management),
􀁸 The number of layers of management,
􀁸 The size of the organization,
􀁸 And most importantly, the extent of marketing research to identify customer expectations
􀁸 The second gap is referred to as the design gap. It is measured by how well the service
design specifications match up to management's perception of customer expectations. The
extent of this gap is dependent on management's belief that service quality is important and
that it is possible, as well as the resources that are available for the provision of the service. A
restaurant manager may understand customer expectations for being served within 20
minutes of ordering, but may not have the resources or the appropriate number of staff to
insure that speed of service.
􀁸 Gap three represents the variation in service design and service delivery. Known as the
performance gap, its extent is a function of many variables involved in the provision of
service. Since individuals perform the service, the quality may be affected by such factors as
skill level, type of training received, degree of role congruity (agreeability) or conflict,
and job fit. Some service providers (i.e. waiters, front-desk staff) do not have a high service
inclination, despite training. Service recovery efforts along with extent of responsibility and
empowerment also affect the size of this gap.
􀁸 The process is further complicated by the customer's participation in the service
encounter. A customer may make a special request for a room type different from the one
23
originally reserved, or request a menu item after the initial order has been completed, making
it more difficult to perform the service as intended.
􀁸 The fourth gap is called the communications gap. It is the difference between what is
promised to customers, either explicitly or implicitly, and what is being delivered. Hospitality
companies use advertising, personal selling, and sales promotion to inform, persuade, and
remind guests about its products and services. Showing beautifully appointed hotel rooms,
refreshing swimming pools and luxurious lobby areas in an advertisement communicates to
the target customers. The extent of communications between the company and the advertising
agencies will affect the size of the gap. Over-promising is commonly responsible for the
communication gap. Each gap has a cumulative effect from the preceding gaps.
􀁸 Gap five is the total accumulation of variation in Gaps 1 through 4 and represents the
difference between expectations and perceived service. Furthermore, consumers evaluate
Perceived service along five quality dimensions (from internet)

2.5 Measuring service quality using Servqual

The scale was first published in 1988; improvements and revisions have been made since
then. There are 21 items distributed across the five quality dimensions. One scale is devoted
to perceptions, the other to expectations. Service quality is indicated by the gap between
perceptions and expectations.

Whilst SERVQUAL remains a significant contributor in the literature, a number of

criticisms have been made. A brief summary of the major criticisms is set out below:
● It focuses on the functional aspects of the process (the ‘how’ of the service process),
neglecting the outcome. Of course services are by their very nature experiences, making the
functional aspect of key importance. However services can and do deliver a tangible
outcome, e.g. plastic surgery. SERVQUAL does not allow for that.
● Its application across the service sector has been called into question. Services can vary in
many respects, revealing quite different and unique dimensions.
● It is not clear how the evaluation of expectations and perceptions occurs, i.e. as specific
points on the scale. Equally, how do expectations and perceptions change over time?
.● A respondent who circles 1 in response to a perception item has a potential range on the
difference score (P _ E) of 0 (if his/her expected level is 1) to _6 (if his/her expected level is
7). On the other hand a respondent who perceives the service to be good (and circles a 6 in
response to the perception item) has a much more constrained potential range (0 to _1).

24
● How are gaps between P and E to be interpreted particularly where the same gap score, in
this case _1 can be produced in 6 different ways (P _ 1, E _ 2; P _ 2, E _ 3; P _ 3, E _ 4; P _
4, E _ 5; P _ 5, E _ 6; P _ 6, E _ 7). Do these tied gaps mean equal perceived service quality?
● Following on from the last point, where a respondent scores perceptions at 3 marginally
exceeding his/her score of 2 for expectations can it be concluded that this customer is seen as
having received good quality service? It has been argued that SERVQUAL predicts that:
● Customers will evaluate a service favorably as long as their expectations are met or
exceeded, regardless of whether their prior expectations were high or low, and regardless of
whether the absolute goodness of the (service) performance is high or low. This unyielding
prediction according to some is illogical, arguing that ‘absolute’ levels (e.g. the prior
standards) certainly must enter into a customer’s evaluation.
● As Francis Buttle perceptibly points out, “SERVQUAL” assumes that an E-score of 6 for
Joe’s Greasy Spoon Diner is equivalent to an E-score of 6 for Michel Roux’s Le Lapin
French restaurant. In absolute terms, clearly they are not’. Consequently, some have argued
for the term ‘expectations’ to be dropped in favor of the generic label ‘standard’.
● Is there a need to incorporate expectations into the measurement scale? The authors of
SERVQUAL have argued in favor of its diagnostic value for management. Expectations
serve as a kind of benchmark, anchor or reference point in the assessment of service
performance. Others have argued for a perceptions-only measure of service quality.
2.6 Customer Expectation of Service

According to (Zeithaml and Bitner, 2004) Customer expectations are beliefs about service
delivery that function as standards or reference points against which performance is
judged. Because customers compare their perceptions of performance these reference
points when evaluating service quality, thorough knowledge about customer
expectations is critical to services marketers. Knowing what the customer expects is the first
and possibly most critical step in delivering quality service.

2.7. Customer satisfaction

Customer satisfaction is a personal feeling of either pleasure or disappointment resulting from

the evaluation of services provided by an organization to an individual in relation to
expectations. Service providers frequently place a higher priority on customer satisfaction,
because it has been seen as a prerequisite to customer retention. As a positive outcome of
marketing activities, high customer satisfaction leads to repeat visitation to stores, rape at

25
product purchases, and word- of- mouth promotion to friends, while low customer
satisfaction has been associated with complaining behavior. A satisfied customer often stays
loyal longer, and is likely to patronize the firm in future. Generally, there are two general
conceptualizations of satisfaction, namely, transaction specific satisfaction and cumulative
satisfaction. Transaction specific satisfaction is a customer’s evaluation of his or her
experience and reactions to a particular service encounter while cumulative satisfaction refers
to the customer’s overall evaluation of the consumption experience to date. (Rajesh K. and
Nishant, 2013)

As a matter of fact, satisfaction could be the pleasure derived by someone from the
consumption of goods or services offered Satisfaction varies from one person to another
because it is utility. “One man’s meal is by another person or group of people; or it can be the
state of being happy with a situation. Another man’s poison,” an old adage stated describing
utility; thus highlighting the fact that it is sometimes very difficult to satisfy everybody or to
determine satisfaction among group of individuals. (JENET MANYI, 2011)
2.8. Service quality and Satisfaction
There are four potential gaps (Knowledge gap, Service design and standard gap, Service
performance gap, communication gap) within the service organization that may lead to a final
and most serious gap: The difference between what customers expected and what they
perceived was delivered. If we talk about importance of service quality for the mobile users,
so we come to know that gap s at any point in service design and delivery can spoil
relationship with the customers. Since services are everywhere. Even goods sector needs
service to complete the process – worker, specialist staff, computer operations, accountant
and legal staff and so on. That's why at the time of delivering the services we should
effectively and qualitatively use strategies of service marketing and try to fill the gaps of
GAP model by using the appropriate techniques of service marketing when it comes to
customer satisfaction. (Rajesh K. and Nishant, 2013)
2.9. Satisfying customer complaints
(Kotler and Keller, 2012) On average, 40 percent of customers who suffer through a bad
service experience stop doing business with the company. But if those customers are willing
to complain first, they actually offer the company a gift if the complaint is handled well.
Companies that encourage disappointed customers to complain—and also empower
employees to remedy the situation on the spot—have been shown to achieve higher revenues

26
and greater profits than companies without a systematic approach for addressing service
failures.
Getting frontline employees to adopt extra-role behaviours, and to advocate the interests
and image of the firm to consumers, as well as take initiative and engage in conscientious
behaviour in dealing with customers, can be a critical asset in handling complaints.
Customers evaluate complaint incidents in terms of the outcomes they receive, the procedures
used to arrive at those outcomes, and the nature of interpersonal treatment during the process.
Companies also are increasing the quality of their call centers and their customer service
representatives.
“Marketing Insight: Improving Company Call Centers” illustrates what top companies are
doing.

`Make it easy to complain' it is the point stressed by Loskot (2000) in order to sustain the
satisfaction of customers. This is due to the very reason that people don't like to
complain to business owners. "For various reasons, customers, even if they would like to
complain, usually say nothing, some of them don’t want time and energy; others don’t
believe that it will make any difference. The rest might lack skills and assertiveness.

According to Loskot (2000), customer should be encouraged to complain and it should be

made easy for them to do so. Whatever the business, companies should welcome the
challenging customer and utilize the service failure as an opportunity to improve and even to
impress the customer. This latter point is based on the fact that successful recovery from
service failure can often have a substantial ‘positive feedback’ effect on the customer.

CHAPTER THREE

METHODOLOGY OF THE STUDY

3.1 Study area description

Robe is the capital city of the bale zone in oromia rigional state, lies 412km south of Addis
Ababa; it can be reached by plane and bus. According to local historian was founded in the
1960. Under the region of emperor Haile selase.

3.1.1 Location

In the city of Robe there is so many banks but the researche focus on Commercial Bank. This
bank has branches those are madda walabu Branch, or main Branch and branch. Again the

27
researche focuses on the main branch or madda walabu branch. 3.2 Research design and
strategy

A research design is framework or blue print for conducting a research project. A research
design classified in to two broad categories those are exploratory and conclusive research
design. (Naresh k., 1996)

Conclusive research is typically more formal and structured than exploratory research. It is
based on large, representative samples, and the data obtained are subjected to qualitative
analysis. Conclusive research designs may be either descriptive or casual, and descriptive
research designs may be either cross-sectional.(ibid)

The researche was use descriptive research design through the research process. Because as
the name implies the major objectives of descriptive research is to describe something,
usually market characteristics of function. But exploratory research is meaningful in any
situation where researche project. Exploratory research is characterized by flexibility and
versatility with respect to the methods because formal research protocols procedures are not
employee. It really involves structured questionnaires, large samples, and probability
sampling plans.(ibid)

3.3 Data source and data collection techniques

3.3.1 Data type and source

The study was conducted using both primary and secondary data sources. Secondary data
sources were collect from different research articles, text books, commercial Bank reports
and internet. Primary data source was collected from close ended questionnaire applied due to
the needed data from selected respondents of customer who are using Commercial Bank
service.

3.3.2 Sampling techniques

Among the two methods of sampling this research was uses non-probability sampling
technique. This method was preferable than the other because non-probability sampling is
advantageous for cost minimization. In addition it gives a chance for researche to decide on
its sample selection purposively.

28
From the various methods of non-probability this research paper was use judgmental
sampling technique.

3.5. Sample size determination

Based on the population the sample size of total bank service individual users was be taken
form madda walabu branch.Madda walabu branch have around 20000 target customer
(population), from this the researche was determine the sample size of 100.

In the sample size determination the researche was use this formula.

n= N

1+N (e) 2(taro yemane,1967)

Where:- n=sample

N=target population

e=error

Given required

n=?
N=20000(from commercial Bank profile)

E=0.1(10%)

Solution

n= 20000

20001(0.01)

1+20000(0.1)2

n= 20000

20001(0.01)

n= 99.995 100

3.6. Method of Data analysis

29
As all collected data are presented for analysis editing, coding and verifying of data is
performed and finally the verified data are classified according to their similarity and
organized by discretional method such as frequency, percentage, mean etc. the organized
data are measured by either percentage and mean or both are used as they are required or
needed.

CHAPTER FOUR

DATA ANALYSIS AND REPRESENTATION

This chapter deals with analysis, presentation and interpretation of collected data from the
questionnaire distribute for customers. From 100 respondents only 76 respondents was
returned.

Personal information

NO Item Alternative Respondents

Number Percentage

1 Sex Male 56 74%

Female 20 26%

Total 76 100%

Table 4.1. Personal information on the sex of the respondents

Source questioner (2016).

The above table (table 4.1) reveals that from total respondents 74%are males and 24%are
females. This implies that most of the respondents are male.

NO Item Alternative Respondents

Number Percentage

2 Work level Private worker 22 29%

Government worker 18 24%

Private organization 20 26%

30
 worker

Student 16 21%

House wife - -

Total 76 100%

Table 4.2.The work level of the respondents

Source questioner (2016).

Table 4.2.show that 21% of respondents are students,24% government worker,26% private
organization worker and 29% are private worker. This figure indicate us majority of the
respondents are private workers.

Table 4.3.Age of respondents

Items Alternatives Respondents

No
Number Percentage

3 Age <25 28 37%

26-35 29 38%

36-45 14 18%

46-55 5 7%

>55 - -

Total 76 100%

Source questioner (2016).

As shown on the table (table 4.3) from the total respondents 37% are below 25 years old,
38% between 26-35, 18% between 36-45 and the remaining 7% are include between 46-55
years old. Nearly majority 38% respondents are between 26-35yers old.

Table 4.4 Income level of the respondents.

31
 No Item Alternatives Respondents

Number Percentage

4 Monthly income <1000 21 28%

1000-1500 13 17%

1500-2000 12 16%

2000-2500 7 9%

>2500 20 30%

Total 76 100%

Source questioner (2016).

Regarding monthly income of the respondents the above table (4.4) displays that 28%
respondents said that their monthly income is less than or up to 1000 birr,17% said between
1000-1500, 16% between 1500-2000 and the rest of the respondents(9%)earn between 2000-
2500 and the rest of the respondents birr per month and 30% greater than 2500.from this
analysis we can understand that most of the respondents monthly income is greater than
2500 birr.

Study related research question and analysis

Table 4.5 about equipment

No Items Alternatives Respondents

Number Percentage

1 Commercial has an up-to-date Strongly agree 7 9%

equipment
Agree 20 26%

Neutral 5 7%

Disagree 44 58%

Strongly disagree - -

32
 Total 76 100%

Source questioner (2016)

The above table (table 4.5) reveal that from total respondents 9% said that they are strongly
agree on the up to datedness of commercial bank equipments,26% agree,7% has no idea,58%
said disagree and no one is said strongly disagree. This implies that majority of the
respondents (58%) perceive the commercial banks equipment are not up to dated.

Table 4.6 Physical facility attractiveness

No Item Alternatives Respondents

Number Percentage

2 Commercial bank physical facilities Strongly agree 8 10%

are visually appealing.
Agree 11 14.3%

Neutral 12 15.7%

Disagree 45 60%

Strongly disagree - -%

Total 76 100%

Source questioner (2016)

As indicated on the above table (table4.6) on the question about the facility appeal of
commercial bank 10% respondents said that they are strongly agree on the attractiveness of
the commercial bank facility,14.3% agree 15.7% has no idea,60% disagree and there is
respondent who strongly disagree on the attractiveness of the commercial bank attractiveness
as we look from the data analysis majority of respondents which constitute 60% of
respondents disagree on commercial bank facility appealing.

Table 4.7 Employee related question

No Item Alternatives Respondents

Number Percentage

33
 3 Commercian’ss employees are well Strongly agree 42 56%
dressed and appear net
Agree 17 22%

Neutral 8 10%

Disagree 9 12%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

The above table (table 4.7) reveal that 56% of respondents said that they are strongly agree
on employees well dressed and appear neat, 22% agree, 10% in between, 12% disagree and
none of the respondents said strongly disagree. From this figure any one can compared
majority of respondents strongly agree can compared majority of respondents strongly agree
commercians employees well dress and appear net.

Table 4.8 Facility complying with service rendered.

No Item Alternatives Respondents

Number Percentage

4 The physical facilities of Strongly agree 19 25%

commercial are conducive in
Agree 41 54%
keeping with the type of service
rendered Neutral 5 7%

Disagree 11 14%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

Table 4.8 show that 25% respondents said they are strongly agree that commercial bank
physical facilities are conducive in keeping with the type of service rendered,54%agree,7%

34
said they have no idea,14% said they are disagree and no one is aid strongly disagree. This
implies that majority of the respondents (54%) are agree on the statement.

Table 4.9 Promise keeping of the bank

No Item Alternatives Respondents

Number Percentage

5 When commercial promises to do Strongly agree 32 42%

something
Agree 12 15.7%

Neutral 11 14.3%

Disagree 16 21%

Strongly disagree 5 7%

Total 76 100%

Source questioner (2014)

The above table (table 4.9) shows that 42%respondents said that they are strongly agree
commercial is keep its promises very well, 15.7% agree, 14.3% in between,21% disagree and
the rest of respondents (7%)are said strongly disagree. This implies that most of respondents
strongly agree commercial bank keep its promise.

Table 4.10 Dependability and trust worthiness of the bank

No Item Alternatives Respondents

Number Percentage

6 Commercial can be trusted and Strongly agree 38 50%

dependable.
Agree 25 32.9%

Neutral 7 9.2%

Disagree 6 7.9%

Strongly disagree - -

35
 Total 76 100%

Source questioner (2016)

Table 4.10 depicts that 50% of respondents said they are strongly agree on the statement
commercial can be trusted and dependable, 32.9% agree, 9.2% in between, 7.9% disagree.
This implies most of the respondents (50%) are strongly agree that commercial can be trusted
and dependable.

Table 4.11 Accuracy of commercial on keeping customers record.

No Item Alternatives Respondents

Number Percentage

7 Commercial keeps its record Strongly agree 31 41%

accurately.
Agree 30 39.4%

Neutral 4 5.3%

Disagree 11 14.47%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

Table 4.11 sign that 41% respondents strongly agree on the statement commercial keeps its
record accurately, 39.4% agree, 5.3% has no idea and 14.47% disagree however no one is
said strongly disagree. This implies that most of respondents are strongly agree and
commercial keeps its record accurately.

Tale 4.12 Consistency and speed of service delivery

No Item Alternatives Respondents

Number Percentage

8 Commercial provides consistency Strongly agree 6 8%

36
 speed according to its promised.

Agree 17 22%

Neutral 15 20%

Disagree 38 50%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

As shown on the above table (table 4.12) 8% respondents said that they are strongly agree
commercial provides consistent speed according to its promise, 22% agree, 20% in between,
and 50% respondents said they are strongly disagree. This figure disclose that majority of
respondents (50%) strongly disagree with the statement commercial provide consistency
speed according to its promise.

Table 4.13. Announcement of about delivered service

No Item Alternatives Respondents

Number Percentage

9 Commercial tells customers Strongly agree 44 58%

exactly when service will be
Agree 11 14%
performed.
Neutral 9 12%

Disagree 12 16%

Strongly disagree - -

Total 76 100%

Source questioner (2014)

Table 4.13 depicts the customer response on the statement commercial tells customer exactly
when service will be performed from the total respondents 58%are said they are strongly
agree with the statement, 14% agree, 12% have no idea, 16% disagree and no one is said

37
strongly disagree. From this data analysis we can notice that most of respondents (58%) are
strongly agree with the stated statement.

Table 4.14. Willingness of employees to help customer

No Item Alternatives Respondents

Number Percentage

10 Employee of commercial is always Strongly agree 20 26.3%

willing to help customers.
Agree 34 44.7%

Neutral 12 15.6%

Disagree 11 14.4%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

The above table (table 4.14) reveal analyzed data result that 26.3% respondents are said they
are strongly agree on the statement that employees of commercial are always willing to help
customers, 44.7% said agree,15.6% in between and 14.4% said disagree, none of respondents
said strongly disagree. This figure implies that majority of respondents are agree that
commercial bank employees are always willingness to help customer.

Table 4.15. Promptness of employee on responding customer requests

No Item Alternatives Respondents

Number Percentage

11 Employees of commercial are Strongly agree 16 21%

respond to customer requests
Agree 15 19.7%
promptly.
Neutral 6 7.9%

Disagree 39 51.4%

38
 Strongly disagree - -

Total 76 100%

Source questioner (2016)

As shown on the above table (table 4.15) 21% respondents said they are strongly agree that
employee of commercial are respond to customer request promptly, 19.7% said agree,7.9%
said they have no idea and 51.4% are said disagree. This implies that most of respondents are
disagree that employees of commercial are respond to customer request promptly.

Table 4.16 Competency of commercial employee

No Item Alternatives Respondents

Number Percentage

12 The employee has technical know Strongly agree 23 30%

how in solving the problem.
Agree 34 45%

Neutral 9 12%

Disagree 10 13%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

The above table (table 4.16) reveal that 30% of respondents said that they are strongly agree
commercial bank employees have technical knowhow in solving the customer problem, 45%
respondents said agree, 12% said neither agree nor disagree, and 13% said are disagree,
nevertheless no one is said strongly disagree. From this figure we understand that most of the
respondents are agree on the competency of the employees.

Table 4.17 Trustworthiness of commercial Bank employee

No Item Alternatives Respondents

Number Percentage

39
 13 Employee of commercial are Strongly agree 33 43%
trustable
Agree 21 28%

Neutral 11 14%

Disagree 11 14%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

Table 4.17 reveal that 43% of respondents said they are strongly agree that commercial
employees are trustable,28% agree, 14% between, 14% said they are disagree while there is
no one who said strongly disagree. From this figure we can notice majority of respondents are
strongly agree on trustworthiness of commercial employee.

Table 4.18 Safeness of transaction with commercial

No Item Alternatives Respondents

Number Percentage

14 I feel safe in any transaction with Strongly agree 39 51%

commercial employees.
Agree 26 34%

Neutral 3 4%

Disagree 8 11%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

From the above table (table) the following analysis conducted which indicates that 51% of
respondents said they are strongly agree on statement you feel safe in any transaction with

40
commercial employees, 34% are said agree,4% have no idea and 11% disagree with the
statement. This implies that most of the respondents are strongly agree with the statement.

Table 4.19 Politeness of the employee

No Item Alternatives Respondents

Number Percentage

15 Employees of commercial polite Strongly agree 11 14%

Agree 21 28%

Neutral 11 14%

Disagree 33 43%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

As depicted on the table 4.19 on the statement employee of commercial are polite,14% are
respondents said they are strongly agree,28 agree,14% in between, and 43% are said they are
disagree. Even though no one is say strongly disagree with the statement. This indicates us
most respondents (43%) are said disagree on politeness of commercial bank employee.

Table 4.20. Commercial giving attention individually

No Item Alternatives Respondents

Number Percentage

16 Commercial gives individual Strongly agree 8 15%

attention.
Agree 15 20%

Neutral 19 25%

Disagree 34 45%

Strongly disagree - -

41
 Total 76 100%

Source questioner (2016)

Table 4.20 reveal that 11% respondents said they are strongly agree on the statement
commercial gives individual attention, 20% said they are agree, 25% have no idea and
45%said they are disagree with statement however there is no respondents who said strongly
disagree. From this data analysis any one can understand that majority of respondents are
disagree with the statement.

Table 4.21 Understanding what customers need

No Item Alternatives Respondents

Number Percentage

17 Employees of commercial are what Strongly agree 12 16%

my needs are.
Agree 38 50%

Neutral 4 5%

Disagree 22 29%

Strongly disagree -

Total 76 100%

Source questioner (2016)

Table 4.21 sign that out of 76 respondents 16% said strongly agree that commercial Bank
employees are know what customer needs are, 50% said agree, 5% have no idea, and 29%
disagree and there is no respondent who say strongly disagree. This implies that most of the
respondents (50%) are agreeing that employees of commercial are know what customers best
interest.

Table 4.22 Position of commercial in the heart of the customers

No Item Alternatives Respondents

Number Percentage

42
 18 Commercial has best interest at Strongly agree 12 16%
heart.
Agree 17 22%

Neutral 27 35.7%

Disagree 20 26.3%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

The above table 4.22 indicate that 16% respondents said they are strongly agree commercial
has best interest at heart for them, 22% respondents said agree, 35.7% respondents said they
have no idea and 26.3% are said disagree despite of these no one is said strongly agree. This
implies that much of the respondents (35.7%) have no idea to say either agree or disagree.

Table 4.23 Convenience of operating hours

No Item Alternatives Respondents

Number Percentage

19 Commercial has convenient Strongly agree 13 17%

operating hours to all customers.
Agree 23 30.4%

Neutral 11 14%

Disagree 29 38.6%

Strongly disagree - -

Total 76 100%

Source questioner (2016)

The above table (table 4.23 )reveal that 17% respondents are said they are strongly agree on
the convenience operating hours to all customers, 30.4% agree,14% in between of agree and
disagree and 38.6% respondents said they are disagree. However there is no respondents who

43
said strongly disagree. This implies that much of the respondents disagree with the statement
commercial bank has convenient operating hours to all customer.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

This chapter deals with summary, conclusion and recommendations. In this chapter first, a
summary of the study was presented. Second, conclusions of the major findings are drawn.
Finally, some possible recommendations are forwarded on the basis of the major findings of
the study.

5.1 Summary
 Most of the respondents (74%) are male and 29%are private worker, in addition their
income level is mostly (30%) greater than 2500 per month.
 Majority of respondents (58%) said that commercial Banks equipment are not up to
dated and they also disagree on attractiveness of the banks facility.
 56% respondents are strongly agree that commercial Bank employees well dress and
appear net and 54% respondents agree that physical facilities of commercial are
conducive in keeping with the type of service rendered. In addition 42% strongly
agree that commercial bank keep its promise.
 The respondents also said that they are strongly agreed on trustworthiness and
dependability of commercial Bank.
 In relation to keeping customers record accurately majority of respondents (41%)
replied that they are strongly agree. However 50% respondents said disagree on
consistent speed of the commercial on rendering the service.
 On the other hand 44% respondents said that they are agree employees of commercial
Bank are always willing to help customer nevertheless most of respondents (51.4%)
disagree on promptness of the employee. Even though 45% respondents are agree
that the employee has technical know how to solve the problem.

44
 Regarding the employee politeness 43% of respondents are disagree on courtesy of
the employees commercial Bank. There are also 45% disagree person giving attention
for individual customer.
 Concerning understanding the customer’s interest 50%respondents said that they are
agree. Employees of commercial are known what customers require from them.
 Most of respondents 35%in doubt whether they are best interest of commercial Bank
or not. Finally much of respondents 38.6% that they are disagree on convenience of
operating hours to all customers.
5.2 Conclusion
 The equipment’s of the bank are not up to dated and at the same time not visually
attractive.
 commercial Bank employees are well dressed and appear neat and the facility of
commercial bank complies with the service of the bank rendering.
 Commercial Bank keeps its promise on what it say it perform well. And the bank has
trust worth and dependable for its customer.
 The bank also keep the customers record accurately and dependably. However
commercial Bank has lack of speed when rendering its service.
 Employees of commercial Bank have willingness to help customer when customers
request them for something. Nevertheless there are delayers or lack of promptness of
the employee on responding for what they requested.
 Even though the employees have technical knowhow or competence to solve the
customer’s problem either when they requested or by perceiving or understanding the
problem the customer faced.
 Even if the employee have competence and willingness to help customers there is
lack of courtesy when they approaching to the customer.
 Again regarding the giving individual attention for each customer there is a gap
which means commercial bank does not give that much attention for all customers
separately.
 Finally regarding the operation time of commercial bank is not appropriate for all
customers.

5.3 Recommendation

 Commercial Bank must use improved and up to dated and at the same time visually
appealing equipment’s to attract customers. Again it is important to furnishing the

45
 bank buildings in best color and equipment’s and improving its facility layout to
create comfortable environment for the customers.
 Commercial Bank should have to maintain the dressing style of its employees to
appealing customers and maintaining promise keeping to retaining its existing
customer and attract the potential customers. Generally speaking the bank must
maintain the best side of its service and improve its weakness.
 The bank also required to improve its service delivery speed because time conscious
customers may shift from the bank as a result of delayers of the required service.
 Again at the time customer complain and requisite for any service or information any
of bank employee should have to answer promptly or quickly.
 In such customer involvement is high business courtesy is so important. Because of
this the employee must improve their approach to treating dissatisfied as well as any
involved customer with good face.
 The bank also considering individuals special interest and understand them as to
rendering what they need satisfactory.
 The bank also extending its operating time as to satisfy isolated customers for those
who require additional service time.

46
 References

 Groaners, C. (1990), Service management and marketing MANAGING the moments

of truth in service competition Lexington: McGraw hill
 Meheret, B. (2011) Module of service marketing, robe.
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Access date 01/02/2014

 Naresh, k.(1996).Marketing research an applied orientation.(2nd ed.). Edition. new
york: prentice Hall.inc
 Peter Mudie and Angela Pirrie (2006) , Services Marketing Management.(3rd
edition.).Great Britain: Elsevier Ltd
 Parasuraman, A. , Zeithmal, U.A. and berry, L.L (1985) , “A conceptual model of
service quality and its implications for future research” journal of marketing,
vol.49,fall,pp 41-50.
 Philip Kotler, Gary Armstrong, Principles of marketing.(12 edition.).New Jersey:
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 www.mekellecity.com/mekelle.asp
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Access date 12/01/2014

 Zeithaml, V.A Berry, L.L and Bitner, M.J. (2004), “service marketing”, Mc Graw-hill
New York, N

MADDA WALABU UNIVERSTY

College of Business and Economics

Department of Management

47
 Dear respondent,

The purpose of this questionnaire is to gather information to conduct a research on the

assessment of individual customer satisfaction on service quality in the case of banking
service of commercial bank in madda walabu. This information will be used solely for
academic purposes for the fulfillment BA in management education. All information you
will provide to my study will be kept strictly confidential and shall be used only for academic
purpose. However, the findings of the research may use to improve the banking service.

Thank you very much for your active cooperation.

Sections: based on your experience as a user of bank services, how well commercial bank
renders services to you? For each of the answering statements please indicate your genuine
answer by circling the number describing the extent agreement/disagreement (1 being
“strongly disagree” 2 being “disagree” 3 being “neutral” 4 being “agree” and 5 being
“strongly agree”) with the attributes you think an ideal service provider had possess and
meets.

1. Commercial has up-to-date equipment. ?

1. Strongly disagree  2. Disagree

3. Neutral  4. Agree  5. Strongly agree

2. Commercial ’s physical facilities are visually appealing?

1. Strongly disagree  2. Disagree 

3. Neutral  4. Agree 5. Strongly agree 

3.Commercial employees are well dressed and appear neat?

1. Strongly disagree 2. Disagree

3. Neutral 4. Agree  5. Strongly agree 

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4. The physical facilities of Commercial are conducive in .Keeping with the type of service
rendered?

1. Strongly disagree 2. Disagree

3. Neutral 4. Agree 5.strongly agree

5. When Commercial promises to do something by a certain time, it does so?

1. Strongly disagree 2. Disagree

3. Neutral  4. Agree  5. Strongly agree

6. Commercial can be trusted and dependable?

1. Strongly disagree  2.disagree

3 neutral  4.agree  5.Strongly agree

7. Commercial keeps its record accurately. ?

1. Strongly disagree  2. Disagree

3. Neutral  4. Agree  5. Strongly agree

8. commercial provides consistency speed according to its promised. ?

1. Strongly disagree 2. Disagree

. 3. Neutral 4. Agree  5.strongly agree 

9. commercial tells customers exactly when service will be performed. ?

1. Strongly disagree 2. Disagree 

3. Neutral  4. Agree 5. Strongly agree

10. Employees of commercial are always willing to help customers?

1. Strongly disagree  2. Disagree 

3. Neutral 4. Agree 5. Strongly agree 

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11. Employees of commercial are respond to customer requests promptly. ?

1. Strongly disagree  2. Disagree 

3. Neutral  4. Agree  5. Strongly agree  12.

The employees have technical knowhow in solving the problem. ?

1. Strongly disagree 2. Disagree

3. Neutral 4. Agree 5. Strongly agree 

13. Employees of commercial are trustable. ?

1. Strongly disagree  2. Disagree 

2. Neutral  3. Agree 5. Strongly agree 

14. I feel safe in any transaction with commercial employees. ?

1. Strongly disagree 2.disagree

3. Neutral  4. Agree  5. Strongly agree

15. Employees of commercial are polite. ?

1. Strongly disagree  2. Disagree

3. Neutral 4. Agree 5. Strongly agree

16.commercial gives individual attention?

1. Strongly disagree  2. Disagree 

3. Neutral 4. Agree 5. Strongly agree

17. Employees of commercial are know what my needs are.?

1. Strongly disagree 2. Disagree

3. Neutral 4. Agree 5. Strongly agree 

18. Does commercial has best interest at heart. ?

1. Strongly disagree 2. Disagree 

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 3. Neutral  4. Agree 5. Strongly agree 

19. commercial has convenient operating hours to all customers. ?

1. Strongly disagree  2. Disagree 

3. Neutral  4. Agree  5. Strongly agree 

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