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Obsinan Dejene Business Research Proposal
Obsinan Dejene Business Research Proposal
SCHOOL OF POSTGRADUATE
DEPARTMENT OF MBA
1
ABSTRACT
For this purpose, the study was used descriptive approach focusing on both primary and
secondary data. Besides, Questionnaires will going to distribute to customers and employees of
the bank in order to collect primary data. The respondents will going to be selected by using
simple random sampling technique. The SERVQUAL instrument developed by Parasuraman
(1985) has been applied in designing the questionnaire by using five dimensions of service
quality: tangibility, reliability, responsiveness, assurance, and empathy. The questionnaire aimed
to determine the level of customers’ expectation and perception towards the service quality of the
bank. Correlation analysis is carried out to examine the impact of the five service quality
dimensions over customer satisfaction. The results revealed that the reliability and empathy
dimensions raised the highest level of expectation, whereas the reliability, empathy, and
responsiveness dimensions gained the highest level of perception. The findings showed that the
dimensions of service quality such as tangible, reliability, responsiveness, assurance, and
empathy are positively correlated to customer satisfaction.
CHAPTER-ONE
1. INTRODUCTION
This introduction part of the paper will going to include the following sections:
background of the study, background of the organization, statements of the problem, research
questions, objectives of the study, scope of the study and significance of the study.
Banking depends largely on IT to provide convenient, reliable, and expedient services, and
retain banks’ demanding and discerning customers. Banks have enhanced investments in Internet
services, decreasing automated teller machines (ATMs) and branch offices accordingly. To gain
competitive advantage, more financial institutions are attempting to understand factors that
dictate customer satisfaction with online banking services so that they can devise strategic plans
and capture market share better. Investments in Internet banking, also referred to as online
banking, affect bank performance positively, and high bank performance affects the decision to
invest in Internet banking. The implementation of e-banking projects has shown digital
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transformation’s importance to contemporary organizations’ survival in the digital economy.
While there has been a number of IS (Information Systems) studies of Internet banking, factors
affecting the satisfaction with or the adoption of Internet banking , and there is a large marketing
literature on customer perceptions of luxury brands , research on luxury brands’ service quality
in the context of Internet banking is scarce. While many previous literatures have studied the
interplay among the factors that drive adoption, those that distinguish different types of
customers,i.e, general versus VIP customers, and the way customer type, which plays a role of
moderating variable for customer satisfaction relates to satisfaction with banking services, are
lacking.
This introduction part of the paper will going to include the following sections: background of
the study, background of the organization, statements of the problem, research questions,
objectives of the study, scope of the study and significance of the study.
1.1. BACKGROUND
The current business environment is becoming competitive and challenging than
ever before. With multidimensional challenges and demand of globalization, organizations are
forced to reengineer their products and systems to improve their service quality and remain
competitive. (Yasin et al, 2004; Rodie and Martin, 2001). Customer service is considered as an
integral part of any facet of industry and it defines the future sustainability of any organization.
The rapid advances in technology based systems related to internet are leading to fundamental
ways in how different organizations interact. This applies same for relation of an organization
with its customer. In different service industries the relationship between customer satisfaction
and service attributes have been difficult to identify because services nature is intangible (Hong,
Goo et al., 2004; Nguyen and Leblanc, 2002). Due to intangible nature of services it is difficult
for the firms to analyses how the customers perceive and evaluate the desired outcome of the
service quality (Zeithaml, 1981). As customer evaluates their level of satisfaction by
experimenting the service quality, satisfaction with services is related to conformation or
disconfirmation of expectations (Smith and Houston 1982).
The issue of highest priority today involves understanding the impact of service quality on
profit and other financial outcomes of the organization (Zeithaml et al., 1996). As Organizations
are increasingly becoming customer focused and driven by customer demands. It is becoming
equally challenging to satisfy and retain customer loyalty. Research by Oliver (2009) suggests
that both service quality and customer satisfaction are two distinct but related constructs. It is
particularly true for the service provider firms where increased level of customer satisfaction
results in profit maximization. Therefore experts say that customer satisfaction should be the
fundamental principle of all the service firms as it is the key indicator of firm‘s effective and
efficient performance. As said by Sakthivel et al., (2005) Customer loyalty and satisfaction is
proved to be the major determinant for long term survival and financial performance of the
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company (Jones and Sasser,1995) also customers are considered as final judger to judge the
quality level of product and services offered. So it can be said that the improvements in quality
standards bring positive outcomes for the firm.
Objectives: The main objective of the bank is to stimulate the economic and social development
of Oromia through mobilizing financial resources from cooperates, private business and public
institutions and financing them. Specifically, COOP has the following objectives: Mobilize
deposit and promote the culture of saving that encourage the supply of funds, Create access to
loans and advances and other banking services for broad portions of population, and of course,
The commercial objective of the bank is to maximize shareholders value.
(Source: www.coopbankoromia.com.et)
Service quality plays a critical role in a firm‘s competitive advantage. Studies investigating
service quality have extensively examined service quality measurement to assist practitioners in
effectively managing quality service.
Customer satisfaction has been studied in different directions, from measurement to its
relationships with other business aspects. Some researchers have provided possible means of
measuring customer satisfaction (Levy, 2009; NBRI, 2009). Meanwhile other authors like
Wilson et al. (2008) demonstrated some determinants of customer satisfaction to be product and
service quality, price, personal and situational factors (Wilson et el., 2008, p. 79-80). Other
authors have brought out theories relating customer satisfaction and service quality in their
researches. Providing excellent service quality and high customer satisfaction is the important
issue and challenge facing the contemporary service industry. High customer satisfaction and
loyalty have long been key concerns for operational management in service industries.
Consequently customer orientation, namely, understanding customer requirements and
expectations, is the first step service providers must take to enhance service quality. Service
quality plays a critical role in a firm‘s competitive advantage. Studies investigating service
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quality have extensively examined service quality measurement to assist practitioners in
effectively managing quality service.
Since the cooperative bank of oromia is the youngest bank among the other banks' the
findings of my research is used as a reference to know how their customers are being
satisfied with their services and to carry corrective measures if their customers are not
satisfied in order to make them delightful.
1. What levels of customers ‘satisfaction towards the five service quality dimension interims of
(Reliability, Responsiveness, tangibility, Empathy and Assurance) in CBO of Bishoftu branch?
2. What are the gaps between customers ‘expectation and perception towards service quality in
CBO of Bishoftu branch?
3. Are customers of the bank being satisfied (in the case of COOP of Bishoftu)?
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‘satisfaction towards the five SERVQUAL dimensions.
To assess customer‘s expectation and perception level towards service quality of CBO
of Bishoftu branch according to the five SERVQUAL dimensions: tangibility, reliability,
responsiveness, assurance, and empathy.
To analyze the gap between customers ‘expectation and perception towards service quality.
To measure the service quality of the bank accordingly to SERVQUAL model.
1.6 SCOPE OF THE STUDY
The study will goes assesses service quality and customer satisfaction in Cooperative
bank of Oromia, the case of Bishoftu branch. The study would have gone to conducted on
customers and employees of CBO in Bishoftucity, which is found around Bishoftu bus station,
Lemlem and around Top tourist hotel, which provides multiple services of the Bank.
Furthermore, the aim of the study is to gain a better understanding of the service quality
dimensions that affect CBO‘s customer satisfaction from their perspective.
To address all factors that affect customer satisfaction is too difficult due to the difficulty
of managing these variables. Therefore this study was specifically delimited to only the impact
of service quality on customer satisfaction by using SERVQUAL model of service quality
dimensions developed by Parasuraman et al (1988) (tangibility, assurance, responsiveness,
empathy and reliability) as an independent variable and customer satisfaction as a dependent
variable. To applying the above concept on all over the country's bank industry is too difficult
due to difficult to manage it. Because of this reason this study was specifically focused on
Cooperative bank of Oromia in Oromia region East Shewa Zone at Bishoftu city of all branches.
Generally, the finding and conclusions of the study may help CBO management in
decision making by understanding the problems from this findings with regards to the service
quality provided. And also to gain more knowledge about customer satisfaction in the banking
industry in general and in CBO in particular which Serve as guidelines for the formulation of
policies on the quality of bank‘s services and helping to recognize that customers hold different
types of expectations for service performance.
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the degree of discrepancy between customers ‘normative expectations for service and their
perceptions of service performance (Parasuraman et al., 1985).
Core Banking: Core banking is a banking service provided by a group of networked bank
branches where customers may access their bank account and perform basic transactions from
any of the member branch offices
Customer expectation: means uncontrollable factors including past experience, personal needs,
word of mouth, and external communication about bank service.
Customer perception: means customer‘s feelings of pleasure /displeasure or the reaction of the
customers in relation to the performance of the bank staff in satisfying / dissatisfying the
services.
Service delivery: refers to how well the service is provided to customers. It includes speed,
accuracy, and care attending the delivery process
The study will be organized and presented into five chapters. The first chapter gives a general
idea on the background, objectives of the study, research questions, and statement of the problem
and significance of the study. The second chapter deals about review of related literature to
support the study by discussing the relevant literature from different materials. The third chapter
presents the methodology of the study, Research Design, Research Approach, Research Method,
Source of data, Sampling design, Method of Data Analysis, Sampling Technique, Population and
Sampling and Ethical consideration. The forth chapter deals about Data analysis and
presentation. Finally, the fifth chapter covers the conclusion and recommendation part of the
study.
CHAPTER – TWO
REVIEW LITERATURE
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2.1. OVERVIEW
Like any other business Organizations, banks often find it hard to keep up with
change. First, they need the ability to spot it. This means tracking countless variables. Then, they
need to take the right action. This can be especially tough in today's banking world. Change is
coming at banks from many directions (IBM, 2012). And each change can trigger many more.
Delayed or inadequate responses often make it even harder to overcome threats and capture
opportunity. However, banks that reach this stage of core system transformation can start to
dynamically respond to change. They can also sharpen those responses, reducing labor and
capital costs while improving results.
2.2. IT IN BANKS
To-day, we cannot think about the success of a banking system without information and
communication technology. It has enlarged the role of banking sector in the economy. The
financial transactions and payment can now be processed quickly and easily
Core banking is all about knowing customers' needs; providing them with the right services at
the right time through the right channels.
The platform where communication technology and information technology are merged to suit
core needs of banking is known as Core Banking Solutions
Centralized Accounting All the transactions of the bank directly impact the General
Ledger and Profit and Loss Account. This provides a real time total picture about the
financial position and situation of the bank. This helps for timely effective decision
making for financial management; a very critical and dynamic function in today’s
banking (KULKARNI P. R. 2012).
Centralized Product Control & Monitoring
Centralization helps in better product analysis, monitoring and rollout. Aspects like
interest rate modifications, product modification and interest application can be done
centrally from one place for all the branches.
Bank can quickly respond to market scenario and customer needs. This gives competitive
edge to the bank (KULKARNI P. R.2012).
Introduction of Technology Based Services Service channels such as ATM,
either on-site or off- site, can be started. Cheque Deposit Machines (CDM) can
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be installed. Such machine in WAN connectivity can allow any customer to
deposit the cheque for collection at any branch (KULKARNI P. R. 2012).
Centralized Customer Account Management Any customer becomes the
customer of the bank rather than of a branch. With unique ID / Account Number
the accounts of the customers can be viewed centrally by the bank. As such,
customer profile, details of the services availed by him and customer behavior
about business of the bank can be well understood. Such customer view gives the
bank opportunity to decide directions for business development and marketing
strategies (KULKARNI P. R. 2012).
Centralized Reporting
Presence of centralized data constantly live up-dated at any time ensures comprehensive
report / statement generation. This tremendously helps in decision making as well as
submission to various authorities. Operational efficiency of the bank gets increased due
to quick report generation for bank as a whole (KULKARNI P. R. 2012).
Centralized System Administration
Centralized system / I. T. administration enhances system security and user management.
There is reduction in man-power need and cost. Due to single point resource available IT
manpower is utilized properly (KULKARNI P. R. 2012)
Growth opportunities
Efficiency gains
Risk mitigation for aging systems
Perhaps Technical person/s leaving the bank poses serious problem for the future and If not
mitigated by generating profit out of benefits of core banking the recurring costs are heavy.
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Due to an increasingly competitive, saturated and dynamic business environment, retail
banks in many countries have adopted customer-driven philosophies to address the rapid and
changing needs of their customers (Burnham, T. A., Frels, and J. And Vijay, M. 2003).
Technological advances have changed the world radically, altering the manner in which
individuals conduct their personal and business affairs. Over the past two and half decades in
particular, the banking industry has invested substantial resources in bringing ICT to customers.
The banking industry is undergoing through the significant technological changes; it has several
impacts on customer satisfaction and loyalty.
The researcher in order to conduct this research in addition to service quality dimensions
employs some additional factors to evaluate the performances of core banking services in the
bank. Those factors include the followings:
A. Reducing risks and errors
The security issue is of special concern in the Banking Industry, as banking is highly based
on trust from its customers. Hence, the risk of hackers, denial of service attacks, technological
failures, breach of privacy of customer information, and opportunities for fraud created by the
anonymity of the parties to electronic transactions all have to be managed.
B. Accessibility
Rapid advancement in information and communication technology (ICT) has had a
profound effect on the banking industry and the wider financial sector over the last two and half
decades is now a tool that facilitates the banks' organizational’ business strategies & customer
services.
C. Speed
Transactions are also faster in banks via core banking. Core banking makes transactions
faster through dissemination of required information or data at a quicker and faster rate. The
Banking Industry is currently being renewed in many areas. One of these areas related to the
digitalization of formerly paper-based processes. Electronic mail is increasingly being applied
for especially non-legal correspondence like account statements, marketing and sales. On the
other hand, the introduction of ICT increases efficiency of the employee in the bank (Kulkarni K,
KalkundrikarS.2002).)
D. Satisfactory customer service delivery
The ability of most banks in our country to deliver effective and satisfactory services to
their clients remains a challenge as a result of the continued use of traditional approaches in the
delivery of banking services. In this regard, such banks were faced with a situation where the
functions of their employees and the traditional service delivery functions they offered were no
longer their first interest.
2.7. QUALITY
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Quality has been defined from diverse perspectives. Quality was primarily seen as a
defensive mechanism but it is seen as a competitive weapon for emergence of new markets as
well as growing market share (Davis et al, 2003).
Nowadays, with the increased competition, service quality has become a popular area of
academic research and has been acknowledged as an observant competitive advantage and
supporting satisfying relationships with customers (Zeithmal, 2000).
Service quality is concepts that has aroused substantial interest and argue in research.
There are difficulties defining and measuring it with no overall consensus emerging on either
(Wisniewski, 2001). Service quality has been defined as the overall assessment of a service by
the customers (Eshghi et al., 2008), while other studies defined it as the extent to which a service
meets customer's needs or expectations. Service is assumed to be quality when it consistently
conforms to customer expectations (Asubonteng et al., 1996; Wisniewski and Donnelly, 1996).
Parasuraman et al. (1985) argues that service quality is the measure of service delivered as
against expected service performance.
2.7.2 Meaning of Customer Service
Customer service is defined as the ability of knowledge, capable and enthusiastic
employees to deliver products/service to their internal and external customers in a manner that
satisfies identified and unidentified needs and ultimately results in positive word of mouth
publicity and return business.
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the customer‘s expectations, Get the customer‘s point of view, Deliver what is promised, Make
the customer feel valued, Respond to all complaints should be immediate and should be more
than the customer expectations, Remain aware and evaluate customer satisfaction regularly,
Provide a clean and comfortable customer reception area, Give customers assistance with their
concerns, Referring an appropriate staff member for problem solving action when necessary,
Continually search for customer related improvements.
Front line people: front line people with the customers (the most valuable assess of any
company every day only the best employees is worthy of a company‘s customers. Therefore
customers should be referred to employees who have not been properly trained to handle their
complaints in front of the employees. The most important aspect is personality.
Front line employees must have a positive attitude. They need to care smile possess a pleasant
appearance and voice, and thank the customer often for their business.
Leadership: No quality improvement can succeed without management‘s involvement and
commitment managers can best show their commitment to service quality for example: the top
management must Lead by example, listen to the front line people, and strive for continuous
process improvement.
Satisfaction is a feeling that surfaces from an evaluation process, i.e. when the consumer
of a good or service compares what is received against what is expected from the utilization of
that good or service (Kotler et al., 2009).The following criteria are laid down by Liu et al. (2008)
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for measuring the satisfaction level of customers regarding purchase and subsequent
consumption of goods or services:
Satisfaction: The perception developed by the customers that the goods or services are
acceptable or tolerable.
Content: The features of goods or services and the underlying benefits gives customer a
positive consumption experience.
Relived: The alleviation of the negative state of customers’ mind of by the goods or services
provided.
Novelty: The goods or services bring freshness and excitement in customers.
Surprise: The amazement and unexpected pleasure brought to people by goods or services
consumed. Additionally, studying the different phases of the customer relationship life-cycle
highlights important issues and helps to depict the level of customer satisfaction at each phase. It
also helps to emphasize on specific customer needs and expectations at each stage of the
relationship (Ravald&Grönroos, 1996). Customer satisfaction signifies the relationship between
customer and service provider. It brings about customer loyalty and incites a long term
relationship between both sides.
2.7.4 Service quality and Customer Loyalty
In banking industry, service quality is one of the most important aspects of the premium
customer experience. Most organizations monitor their services quality on a regular basis to
ensure maximum customer satisfaction and to improve customer retention and loyalty. Customer
satisfaction is attained by properly meeting the customer demands and expectations and
providing services which are up to the market standards (Gitomer, 1998). A positive
consumption experience of the customer ensures that overall his feelings for the products or
services consumed are positive. However customer satisfaction does not guarantee repurchase,
customer retention, or loyalty.
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However, maintaining customers is also reliant on several other factors. These include a broader
variety of product choices, higher convenience, best prices, and improved income (Storbacka et
al., 1994). Ioanna (2002) further suggested that product differentiation is impracticable in a
competitive market like the banking industry.
Banks all over the place are providing the similar products. For instance, there is usually only
smallest difference in interest rates charged or the variety of products accessible to customers.
Bank prices are fixed and determined by the market force. Therefore, bank management tends to
differentiate their firm from rivals by providing better quality services to their customers. Service
quality is a very important factor affecting customers ‘satisfaction intensity in the banking
industry.
A positive and significant relationship is found between empathy and customer satisfaction by
Iglesias and Guillén (2004). It was proposed in another research study, that customers may
remain unsatisfied with service quality if a gap is left in empathy.
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In addition to tangibles, reliability and responsiveness; assurance has been identified as
a significant dimension of service quality by Parasuraman et al. (1988). They propose that all of
these dimensions significantly enhance customer satisfaction. It is believed that if the employees
of financial institutions display trustworthy behavior, the satisfaction level of customers can be
enhanced significantly. It may also positively influence repurchase intension of customers
(Ndubisi, 2006; and Ndubisi&Wah, 2005).
Jabnoun and Al-Tamimi (2003) found that banks with better ambience enhance
customer satisfaction in a better way. Association between service quality and customer
satisfaction in banking sector of Sweden is examined by Zineldin (2005).
He found that by combining tangible and intangible attributes of premium quality in products
and services provided by banks, they may create a strong and long-term relationship with their
customers.
A broader customer-base of loyal customers may be won if the services delivery staff is strongly
committed to providing premium quality services as well as is able to effectively handle conflicts
in a timely manner (Malhotra et al., 2005; and Ndubisi, &Wah, 2005).
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loyalty in banking sector of Sweden is also examined by Zineldin (2005). The fact that banks
may create a strong and long-term relationship with their customers by combining tangible and
intangible attributes of premium quality in products and services they provide, was also true in
this case.
Satisfaction and service quality have certain things in common, but satisfaction
generally is a broader concept, whereas service quality focuses specifically on dimensions of
service. (Wilson et al., 2008, p.78).
Although it is stated that other factors such as price and product quality can affect customer
satisfaction, perceived service quality is a component of customer satisfaction (Zeithaml et al.
2006, p. 106-107
Reliability
Assurance
Tangibles
Customer Customer
Product
satisfaction loyalty
Quality
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Personal
Price factor
The above figure shows the relationship between customer satisfaction and service quality.
Many scholars agree that service quality can be decomposed into two major dimensions
(Grönroos, 1983; Lehtinen and Lehtinen, 1982). The first dimension is concerned with what the
service delivers and is referred to by PZB (1985) as ―outcome quality and by Grönroos (1984)
as ―technical quality. The second dimension is concerned with how the service is delivered: the
process that the customer went through to get to the outcome of the service.
Other than identifying the gap between expected service and perceived service, PZB also
identified four other tributary gaps that originate from the provider‘s side. These gaps were
described as follows:
The Four Provider Gaps (PZB 1988) Gap
1. This gap is said to occur when what customers expect are not the same as what management
thinks the customers expect.
2. This gap exists when customer service standards are not aligned with management‘s findings
of the customer‘s expectations.
3. This gap is a result of actual service performance not meeting the set performance standards.
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4. This gap occurs when the organization‘s external communication about its service quality does
not match the actual service performance.PZB (1985) and PZ (2006) also provided a diagram to
illustrate how these four gaps interacted with one another and with the customer gap.
Expected
service
Customer
GAP Perceived
service
Customer
Company GAP 4
Service delivery External
communications
GAP 1 GAP 3
Service
standards
GAP 2
Perception of
customer expectation
18
Source (PZB 2006)
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2.8 SERVQUAL
PZB, in their 1985 paper, identified the need for a tool that puts into operation the
five dimensions and gaps model of service quality. They later followed this up in their 1988
paper with a survey tool named SERVQUAL. The tool is divided into five major categories and
labeled according to the five dimensions of service quality as identified by PZB. Within the
categories, four or five items are listed, totaling twenty-two.
Each item must be answered by the customer two or three times depending on the format
being used. The two-column format asks for the customer‘s expected performance and his or her
perception of the company‘s performance under each item. Under this format, the customer has
to answer a total of forty-four questions. The three-column format adds a third question that asks
for the customer‘s expected minimum service performance, thus increasing the number of
questions to a total of sixty-six. The disadvantage of asking this many questions is that it can
potentially lead to respondent fatigue which can negatively affect the quality of the data. Carman
(1990) states that because of SERVQUAL‘s long list of questions ―it is operationally difficult
to follow the PZB procedure for collecting and analyzing these data.
According to PZB (1985) and PZ (2006), reliability always emerged as the most critical
dimension of service process quality. Boulding et al. (1993) also confirms this finding.
However, because PZB (1985), PZ (2006) and Boulding et al. (1993) neither tested these finding
across a wider set of service industries as well as across different segments of each industry the
validity of their claim is questionable. O‘Connor et al. (1993) reported that reliability was not a
significant contributor to customer satisfaction in his research.
Service or product quality and customer satisfaction both have long been considered
crucial for success and survival in today‘s competitive market. But it is also important to
understand what contributes to customer satisfaction that could be a key to achieve competitive
advantage.).
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Studies show that the overall experience with the service quality results in customer
satisfaction which leads to customer loyalty. Where the overall service quality (as perceived) is
viewed as a combination of core and relational aspects. In the service literature, core and
relational quality are the most basic elements of services. Where core is ―what is delivered‖ and
relational is ―how it is delivered‖ (McDougall and Levesque, 1992, 2000).
Parasuraman et al., (1985) conducted research on different service organization (Bank, Hotel,
Electrical Corporation, Hospital, Transportation) by using ten service quality dimensions
(tangibility, reliability, responsiveness, communication, access, competence, courtesy,
credibility, security, and knowledge). Later Parasuraman et al., (1985) conducted research and
then the ten dimensions were further purified and developed into five dimensions (tangibility,
reliability, responsiveness, assurance and empathy).
Reliability
Assurance
Empathy
Tangibles
Core banking
CHAPTER – THREE
3.0 METHODOLOGY
The third chapter presents the methodology used to conduct the research. It includes
research approach, research method, population, sample and sampling techniques, data collection
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instruments and method of data analysis.
3.1 Research Design
The research design that is followed in order to conduct this study is descriptive design. It
is descriptive research design because it aims to describe, contrast and analyze the problem
identified and to describe the relationship between the service quality variables and customer
satisfaction and how these dimensions affect customer satisfaction.
I will going to use both qualitative and quantitative research methods in this study in order to
understand the service quality and customer satisfaction in COOP, the case of
Bishoftubranches.Moreover, qualitative research would be used, because the researcher believes
that qualitative methods will answer the research questions in more suitable way. And the data is
analyzed using the Statistical Package for Social Science (SPSS, version 16.0) for the
quantitative analyses. This study examined descriptive statistics for the general information of
the overall service quality and customer satisfaction of COOP. This study employed Pearson
product moment correlation analyses to check the relationship between the variables.
3.3 Source of Data
There are different sources and methods of collecting the data. The two main sources
which generally used are primary and secondary. For this research, the primary data will being
collected thorough questionnaires from bank‘s employees and customers of CBO to assess the
study in five SERVQUAL dimensions on customers ‘satisfaction from customers ‘point of view.
In addition secondary sources such as bank annual bulletin published, internet, various journals
and articles are explored to develop the study background and to get information about the
company background.
3.4 Method of Data Analysis
The data which gathers through primary method would be summarized using descriptive
statistics through tables, frequency distribution and percentages, mean and standard deviation,
Pearson correlation to come up the analyses of data. Mean score is used identify the highest and
the lowest of the variables. Pearson‘s Correlation analysis is used to describe independent
variables and the dependent variable.
In choosing the research participants, it could be said that, in this study the researcher
choose probability sampling (simple random sampling) would be used. In this study, respondents
are going to be chosen from employees randomly, because employees are available and it is easy
for this study to select randomly from the total employees. And also to select research
respondents from the total numbers of customers who have registered on the customer data base
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of CBO.
3.6 Population and sampling
The study will be conducted to assess the level of service quality and customer satisfaction
towards of Cooperative bank of Oromia. The target respondents for the study will be 100
customers and 30 employees at three branches of COOP which is found in Bishoftu city
administration.
The data obtained from any source would have been used for the exclusively use of this
study. It cannot be disclosed to any party & rather kept confidential .The right of respondents or
other data provides are respected.
Since there are many number of data collection instrument is there, I will going to select
among them those who are crucial in my research. These are:-
Generally research approaches are linked with various research philosophies (Saunders et al.
2007). Therefore to ensure the validity of this study the research purpose and approaches should
carefully analyzed.
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The data is collected through questionnaires from bank‘s employees and customers of CBO to
assess the study in five SERVQUAL dimensions on customers ‘satisfaction from customers
‘point of view. To keep the validity of the research, questionnaire would be developed based on
the existing theories and literature in relevance with the topic of the study.
Activities November December January February March April May June July
01 Bibliographic searches
02 Reading
03 Submission of Thesis
proposal
07 Data collection
08 Data analysis
09 Writing up of thesis
11 Submission of thesis
24
12 Thesis defense
13
14
A. Salaries
B. Other costs
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Chang, Z. Y., Chan, J and Leck, S. L. (1997). Management of Market Quality for Correspondent
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Asuboneteng, P., McCleary, K.J. and Swan, J.E. (1996), SERQUAL revisited: a critical review
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