Table of content............................................................................................

page no

Chapter One ......................................................................................................3

1. Introduction..........................................................................................3

1.1 Background of the Study....................................................................3

1.2 Statement of the Problems.................................................................7

1.3. Research Questions..........................................................................9

1.4. Objectives of the Study....................................................................10

1.4.1. General Objective...............................................................10

1.4.2. Specific Objectives..............................................................10

1.5. Significance of the study...................................................................10

1.6. Scope of the Study............................................................................11

1.7. limitation of the study........................................................................11

Chapter Two.......................................................................................................12

2. Literature review..................................................................................12

2.0 Theoretical literature...........................................................................12

2.1 Definition of Service.........................................................................12

2.2. Service quality ...............................................................................12

2.3. Managing service quality.................................................................14

2.4 customer satisfaction.......................................................................15

2.5. Factors affecting customer satisfaction............................................17

2.5.1. Determinants of customer satisfaction...............................19

2.5.2 Measuring customer satisfaction.........................................19

2.5.3 Understanding of customer satisfaction.................................20

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 in relation with service service.

2.6 Empirical review of literature...........................................................23

2.7 conceptual framework .......................................................................25

2.8 Things to Do When You Have a Dissatisfied Customer.....................25

2.9 Customer Satisfaction in Retail Banking............................................26

2.10 SERVQUAL......................................................................................26

2.11 Criticisms of SERVQUAL..................................................................27

2.12 The Relationship between Service Quality and................................28

Customer Satisfaction

Chapter Three.....................................................................................................30
3.0 Research methodology.......................................................................30
3.1 Research design.................................................................................30
3.2 Data source.........................................................................................30
3.3 research approach..............................................................................30
3.4 Target population................................................................................31
3.5 Method of data collection....................................................................31
3.6 Data analysis technique......................................................................32
3.7 Model specification..............................................................................31
4.0 Time schedule.....................................................................................33
5.0 Budget schedule..................................................................................33
6.0 Reference............................................................................................34
Appendixes...........................................................................................................37

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 CHAPTER 1
1.0 INTRODUCTON
1.1 BACKGROUND OF THE STUDY
As the world of commerce becomes increasingly competitive, customer service skills are
more critical than ever.(www.the-future-of-commerce.com/2021/08/02/). In toady’s
competitive environment, delivering high quality service is the key for a sustainable
competitive advantage (Angelova and Zekiri, 2011).Customers are not only looking for
quality products or services,but they also expect a high level of support and care from service
providers.Customer service has always been a fundamental part of business. Consumers
expect a lot from service providers – and have several to choose from. Customer satisfaction
needs to be part of each step of their journey, from initial interaction through getting the
service and beyond.( www.the-future-of-commerce.com/2021/08/02/).

Financial institutions have amongst the highest customer acquisition costs in the
industry today. Acquiring new customers can cost more than retaining the existing
ones. Expenditures including ( advertising, promotion, marketing etc...) are amongst
the high cost requirements. Hence, it is essential to adopt the right strategies to
improve customer service in banking. Customer service means different things in
different industries, but it always boils down to the same basic element, providing
superior levels of service to your customers.(https://www.revechat.com/ Nov 17,
2022).

Customer service in the banking sector depends on efficient and prompt customer service. It
is the most important duty of the banking operations. Prompt and efficient service will
develop good public relations, reduce complaints and increase business. Providing quality
customer service is important in the banking industry because it makes customers feel valued,
helps you meet their needs more effectively and improves your overall customer retention.
(https://www.revechat.com/ Nov 17, 2022).According to the Site, expectations for banking
experiences have been shifting continuously.There is a new baseline for the customer

3
experience in banking. People expect more channels, faster and personalized responses
without long wait times. Banking customers want their financial institutions to provide more
than just basic service – they want insights, guidance, and relevant recommendations. Hence,
improving customer service in banking is crucial.

Banks pay particular attention to customer satisfaction, because the degree of competitive
power and survival of a bank lies in its customer satisfaction. (Kattack and Rehman 2010).
Bowen and Hedges (1993) claim that banks that offer very high quality services have a
competitive advantage, because the benefits of improved quality of service are large market
shares, increased in profits and increased in customer retention.

In Africa, it is perceived that the customers of bank lately are more knowledgeable,
demanding, analytical and aware of their rights as such they would not like to be treated
badly or given substandard service (Asante and Kwasi, 2012). According to (Moller, 2008)
customers of retail banks in Africa are clearly seeking a responsive service, with a high level
of staff efficiency. This would suggest that efforts to increase speed of processing
information and customers are likely to have an important and positive effect on customer
satisfaction.

Modern banking in Ethiopia has been introduced in 1905.The first bank called Bank of
Abysinia was inaugurated in Feb.16, 1906 by the Emperor.(www.nbe.gov.et/history-of-
banking). The Bank was totally managed by the Egyptian National Bank. Bank of Abyssinia
had been carrying out limited business such as keeping government accounts, some export
financing and undertaking various tasks for the government. Moreover, the Bank faced
enormous pressure for being inefficient and purely profit motivated.Then reached an
agreement to abandon its operation and be liquidated in order to disengage banking from
foreign control and to make the institution responsible to Ethiopia’s credit needs. Thus by
1931 Bank of Abyssinia was legally replaced by Bank of Ethiopia. (www.nbe.gov.et).

The first privately owned bank, Addis Ababa Bank share company, was established on
Ethiopians initiative and started operation in 1964.with a capital of 2 million in association
with National and Grindlay Bank, London which had 40 percent of the total share. In 1968,
the original capital of the Bank rose to 5.0 million and until it ceased operation, it had 300
staff at 26 branches. Following the declaration of socialism in 1974 the government extended

4
its control over the whole economy and nationalized all large corporations. Organizational
setups were taken in order to create stronger institutions by merging those that perform
similar functions. Accordingly, the three private owned banks, Addis Ababa Bank, Banco di
Roma and Banco di Napoli Merged in 1976 to form the second largest Bank in Ethiopia
called Addis Bank with a capital of Eth. birr 20 million and had a staff of 480 and 34
branches. Before the merger, the foreign participation of these banks was first nationalized in
early 1975. Then Addis Bank and Commercial Bank of Ethiopia S.C . were merged by
proclamation No.184 of August 2, 1980 to form the sole commercial bank in the country till
the establishment of private commercial banks in 1994. (www.nbe.gov.et/history-of-
banking).

According to (nbe.gov.et) .Following the downfall of the rule of command economy in 1991,
a liberal economy system was brought up . In line with this, Monetary and Banking
proclamation of 1994 established the national bank of Ethiopia as a judicial entity, separated
from the government and outlined its main function. Monetary and Banking proclamation
No.83/1994 and the Licensing and Supervision of Banking Business No.84/1994 laid down
the legal basis for investment in the banking sector. Consequently shortly after the
proclamation the first private bank, Awash International Bank was established in 1994 by 486
shareholders and by 1998 the authorized capital of the Bank reached Birr 50.0 million.

Ethiopia currently has one government-owned bank, one development bank and 25 and
counting private commercial banks (ehiosucss.com/ List of Banks in Ethiopia 2022). listed as
Awash international bank,Nib international bank,Bank of abyssinia,Dashen bank, Hibrent
bank Zemen bank wegagen bank, Berehan international bank Abay bank s.c, Addis
international bank, Bunna international bank, Oromia international bank, Lion international
bank, Cooperative bank of oromia, Debub global bank, Enat bank, zemzem bank,Hijra
bank,sinqee bank, Amhara bank,Tsehay bank,Tsedey bank,Ahadu bank and shabelle bank .
The revised NBE directive, that is, the ‘minimum capital requirement for banks directive no.
SBB/78/2021’that entered into force as of April 12, stated that existing banks shall raise their
paid up capital to five billion birr in five years’ time until June 30, 2026.(
https://www.capitalethiopia.com/2021/04/19).

5
The latest private bank in the financial industry of Ethiopia, Amhara Bank was established
According to the Ethiopian Commercial Code, adopted in 1960, Banking Sector
Proclamation No. 592/2008 and NBE Directive No. 592/2008 .(www.borkena.com/ amhara-
bank June 19 2022❩. The bank has been under formation for quite some time, until it
officially started operation on June 18, 2022. Amhara bank is said to differ from the rest of
the private banks. One of the things that sets it apart from the rest of the private banks, based
on a report from( Amhara Media Corporation(AMC) on June 18 2022 broadcast), is that it is
established with the largest number of shareholders in the history of private banks in the
country. It has over 165,000 shareholders, which has increased up to date to 191,000 and
increasing.(amharabank.com.et 2022). Over half of the share was sold in Addis Ababa. Over
30 percent of the shares are sold in other parts of Ethiopia outside of the Amhara region. It is
only 20 percent of the share that is sold in the Amhara region, according to the report from
(AMC).
Amhara Bank has over 6.516 billion birrs starting capital that is already signed and 4.83
billion birr that are paid. That makes it, according to the source(AMC), one of the largest
private banks in the country. It opened 72 branches across the country on the same day that it
was inaugurated. The number increased to 75 by the end of June 30, 2022.(Annual report of
the bank 2021/22). The bank attracted more than 82 thousand customers within the remaining
11 working days of the fiscal year and mobilized Birr 401.1 million, backed by 1,425
competent and motivated staff. Currently as of June 30, 2022, the total asset reached Birr 7.1
billion and The total paid-up capital of the bank as of was Birr 4.8 billion.(Annual report of
the bank 2021/22).Some cities in the Amhara region of Ethiopia have multiple branches of
Amhara Bank. Headquartered in the Legahar area in the capital Addis Ababa, the bank seeks
to be accessible to over 70 percent of people in the countryside that is said to have limited
access to banking services.

The new bank says it has got the technological infrastructure to make that commitment a
reality.(AMC). Amhara Bank, one of the youngest private banks in Ethiopia, bagged 237
million Birr in gross profit from its less than a month operations in the last 2021/22 fiscal Year.
(https://furtherafrica.com/ethiopia/amhara-bank/2023/01/04/).Currently it has 4000 plus
employees and 250 branches across the country.(amharabank.com.et 2022/23). Therefore this
study will assesse the customer service, service quality and factors that affect customer
satisfaction in Amhara bank s.c Addis Ababa Ethiopia, kality total branch.
6
1.2 Statement of the problem.
Modern-day customer service requires a well-trained staff, but now, it also hinges on the
right technology platforms. (https://sqnbankingsystems.com/blog/what-do-consumers-expect-
from-their-banks/). In addition to having these two elements in place, banks need to create
seamless transitions between them.They also need to ensure there offering their customer the
type of customer service they want. Some clients prefer handling customer service questions
on their own. They don’t want to deal with a human if they can take care of it online or
through an app. Others want to interact with humans. banks need to pre-empt their
preferences and give them what they want. (sqnbankingsystems.com)

According to the site (sqnbankingsystems.com) New research indicates that banking

customers rank the following items at the top of their must-have list when selecting financial
institutions.

 Customers want low fees on checking accounts and other services, but they’re willing
to accept fees when they perceive that they’re receiving value in return. When setting
fees, make sure the fee corresponds with value. Otherwise, you risk sacrificing
customer retention rates for short-term revenue streams.
 Trust issues have always plagued the banking industry, and a lack of consumer
confidence can undermine your appeal. To attract and keep customers, your bank
needs a strong commitment to cybersecurity and anti-fraud measures.
 Your customers want easy access to mobile and online banking tools. They want to
be able to manage their accounts, discover new products, and access banking services
conveniently from anywhere. But they also still need convenient access to ATMs and
branches.
 Your customers need savings rates that help them beat inflation and earn a return on
their investments. They also need low-cost access to loans. To stay relevant, you need
to structure your offerings in a way that beats the competition.
 Customers want to work with banks that have a positive reputation. But, keep in
mind your reputation can’t just come from clever marketing — It also has to be built
on real experiences and interactions

7
  Your customers need accounts, loans, and financial services tailored to their needs.
They expect personalized recommendations and guidance. If you don’t provide that,
your customers will find another option.
To be successful, your financial institution needs to understand what your customers want
and make a plan to meet their desires.

Moreover Most services involve a direct contact between the customers and the service
provider.(Mersha and Abdlakha (1990). This means that, in addition to task proficiency,
interpersonal skills like courtesy, friendliness, tolerance and pleasantness are important
dimensions of quality, particularly in high contact service where front-line employees are
the key to customer satisfactions Mersha and Abdlakha (1990). The customer is the judge
of quality. Understanding customer needs, both current and future, and keeping pace with
changing markets requires effective strategies for listening to and learning from customers.
Thus a service provider must interact effectively with customers to create superior value
during service encounters. As such, most banks now have developed a way to address
customer problems. To provide quality service, employee needs ongoing training and the
necessary technical skills to provide quality service.

Customer satisfaction on banking services of Amhara Bank of Ethiopia in Addis Ababa

kality total branch, the study revealed According to personal observation by the group
members of this research is that, there are some problems hindering the smooth delivery of
the banking services. The waiting time of customers is more bulky, which enhance the plan
of time management is failed, the network problem, for instance is the major obstacle in the
check clearing operations. Besides, in the availability and operations of ATM's and the
delays of the loan approval are the major problems. In the electronic banking services, the
benefits they obtained are limited..

The banking today is redefined and re-engineered with the use of IT and banks start
offering more sophisticated services to customers with continuous product and process
innovation (Tiwari and Kumar, 2012). Today’s dynamic and stiff market competition
forced banks to spend all their resources on improvement of service quality and value
added activities in order to survive and become productive. Yeboah et al, (2013) believes
that total automation of banking is an imperative need for all banks to attract more
customers, provide efficient and quality services, and survive in the emerging new
8
competition, apart from the profit motive which is the primary objective of the banks. One
of the research questions in this study is to know whether the customers are satisfied or not
in the services of Amhara Bank of Addis Ababa branch (kality total site), and to know the
most significant variables that govern customer satisfaction in the study area.

Since there are many banks around the area,currently Amhara bank kality total branch is
facing challenges with stiff competition. Hence ,delivering quality service and creating
customer satisfaction is expected to win this competition. In relation to this, the focus of
this study is: To measure the level of satisfaction of customer and service qualities of
Amhara bank kality Total branch and which SERVQUAL dimensions are important for
customer satisfaction? The main purpose of this study is to assess customer satisfaction
with service quality in Amhara bank of Ethiopia in case of kality total Branch.

1.3 Research question

 What is the level of customer satisfaction of services in Amhara Bank kality total
Branch?
 What looks like the service quality in customer satisfaction of Amhara Bank kality total
Branch?
 What is the effect of Information Technology on customer satisfaction in Amhara Bank
kality total Branch?
 What is the effect of fees on checking accounts and other services that affect customer
satisfaction on Amhara Bank kality total Branch?

1.4. Objective of the Study

1.4.1. General objectives:
 The main objective of this study was to examine the customer service and factors
affecting customer satisfaction at Amhara Bank kality total Branch?

9
 1.4.2 Specific objective:
The study has got the following specific objectives:

 To examine the level of satisfaction of services at Amhara Bank kality total Branch?
 To examine the effect of service quality on customer satisfaction in Amhara Bank kality
total Branch?
 To examine information communication technology on customer satisfaction of Amhara
Bank kality total Branch?
 To investigate charge of price for services that has effect on customer satisfaction at
Amhara Bank kality total Branch?

1.5 Significance of the study

The private bank utilize the findings of this study on factors that influence customer
satisfaction as a basis for formulating customer engagement and satisfaction strategies in
order to alleviate the problem of satisfaction. For Manager of Amhara bank kality total
branch, this research offers information on groups of factors leading to high levels of
customer satisfaction. They can use the information in allocating recourses (where should
be improved) and making better informed decisions on which factors to develop. They can
also serve as one aspect in enhancing the understanding of the factors related to customer
satisfaction. The private bank can adopt a recommendation that was made by the study so
as to enhance customer satisfaction at the bank.

The study is likely to provide knowledge on the importance of service on customer

satisfaction and service quality. The finding enables the bank (Amhara bank kality total
branch) to understand the relation between service quality and customer satisfaction and
helps them to know the most important dimension used to satisfy customers. Also it
indicates the extent of the gap between perceived performance and customers ‘expectation
of service quality.

The results of the study provide information for concerned organizations in setting and
developing policies and strategies to improve customer satisfaction and to protect and
enhance customer experiences with banking so as to retain and attract new customers.
10
Finally, this study Will boost to knowledge and skills in analysing and interpreting the
gathered data during the study. It also helps to identify and prioritize the factors that affect
customer satisfaction at Amhara S.C bank kality total branch.

1.6 Scope of the Study

This study focused on factors influencing customer service at Amhara bank s.c kality total
branch, and measures customers overall level of satisfaction. It was used self-administered
questionnaires and interview questionnaires. The scope of the survey is limited to studying
customer satisfaction in Amhara bank S.C Addis Ababa kality total branch.The time
boundaries of the study is estimated to be from( April to May 2023).In the department of
management.

1.7 Limitations of the Study

 The exclusion of customers of other branches from the sample survey which could have
impact on inferring conclusion on the bank’s service quality and customers’ satisfaction
throughout Addis Ababa and in Ethiopia.

CHAPTER 2
LITERATURE REVIEW

2.0 Theoretical literature

2.1 Definition of Service
Many writers define ‘service’ in different ways: for example (kottler; 2003;128) defined
service as “any activity or benefit that 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”. Any intangible actions that are performed by person or
machines or both to create good perception within users called service. Although services
are performed by service providers and consumer together its quality results in perception
and value assessment by the customer (Rao; 2007).

2.2 Service Quality

11
Service quality is very important component in any business related activity. This is
especially so, to marketer a customer’s evaluation of service quality and the resulting level
of satisfaction are perceived to affect bottom line measures of business success (lacobucci
et al.,1994). Customer expectations are beliefs about a service that serve as standards
against which service performance is judged (Zrithaml et al., 1993); which customer thinks
a service provider should offer, rather than on what might be on offer (Parasuram et al.,
1988). To some, service quality can also be defined as the difference between customer’s
expectations for the service encounter and the perceptions of the service received.

According to the service quality theory (Oliver, 1980), it is predicted that customers will
judge that quality as ` low` if performance does not meet their expectations and quality as
`high` when performance exceeds expectations. Closing this gap might require toning down
the expectations or heightening the perception of what has actually been received by the
customer (Parasuraman et al., 1985). According to Gronroos (1982), perceived quality of a
given service is the result of an evaluation process since consumers often make comparison
between the services they expect with perceptions of the services that they receive. He
concluded that the quality of service is dependent on two variables: Expected service and
Perceived service. Quality spells superiority or excellence (Taylor and Baker, 1994)
(Zeithaml, 1988), or, as the consumer’s overall impression ofthe relative inferiority /
superiority of the organization and Its services (Bitner and Hubbert, 1994; Keiningham et
al.,1994-95). Consumer behavioural intentions are also influenced by the standards of
service quality (Bitner, 1990; Cronin and Taylor, 1992, 1994; Choi et al., 2004).

As described by Lewis and Booms (1983) giving quality service implies meeting the
requirements to customer expectations regularly. Also Parasuraman, et al (1985) defined
service quality as “the degree and direction of discrepancy between consumer’s perceptions
and expectations in terms of different but relatively important dimensions of the service
quality, which can affect their future purchasing behaviour.’’ This definition clearly shows
that service quality is what customers’ assess through their expectations and perceptions of
a service experience. Customers’ perceptions of service quality result from a comparison of
their before-service expectations with their actual service experience.

Customer’s expectation serves as a foundation for evaluating service quality because,

quality is high when performance exceeds expectation and quality is low when performance
12
does not meet their expectation’’ (Asubonteng et al., (1996: 64). Expectation is viewed in
service quality literature as desires or wants of consumer i.e., what they feel a service
provider should offer rather than would offer (Parasuraman et al., 1988). Perceived service
is the outcome of the consumer’s view of the service dimensions, which are both technical
and functional in nature (Gronroos, 1984). Parasuraman et al, (1988:15) define “perceived
quality as a form of attitude, related but not equal to satisfaction, and results from a
consumption of expectations with perceptions of performance.” Therefore, having a better
understanding of consumers attitudes will help to know how they perceive service quality
in banks.

Quality evaluations derive from the service process as well as the service outcome. As
stated by (Gronroos, 1982) there are two types of service quality these are technical quality
and functional quality. Technical quality is - what the customer is actually receiving from
the service (outcome) while functional quality is the manner in which the service is
delivered (process). “A vague exhortation to customer contact employees to “improve
quality” may have each employee acting on his/her notion of what quality is. It is likely to
be much more effective to tell a service contact employee what specific attributes service
quality includes, such as responsiveness. Management can say, if we can improve our
responsiveness, quality will increase”(Asubonteng et al; 1996:63).

2.3 Managing Service Quality

One of the critical tasks of service companies is service quality management. It is

commonly said that “what is not measured is not managed’’(Anonymous). Without
measurement managers will not be sure weather service gaps exist, let alone what types of
gaps and where they exist. Many organizations are eager to provide good quality services,
but fall short simply because they do not accurately understand what customers expect from
the company. The absence of well-defined tangible cues makes this understanding much
more difficult than it would be if the organization were making manufactured goods.
Services organizations should ask the following key question: - (Cole; 1995:147)

 What do customers consider the important features of the service to be?

 What level of these features do customers expect?
 How is service delivery perceived by customers?

13
In service marketing the quality of service is critical to a firm’s success. Service providers
must understand two attributes of service quality: - first quality is defined by the customer
not by producer or seller. Second, Customer assesses service performed (Stanton; 1987).
Consequently, to effectively manage quality, a service firm should:

 Help customers formulate expectation Expectations are based on information

from personnel and commercial sources promises made by the service provider and
experience with the particular service as well as other similar services.
 Measure the expectation level of target market A service firm must conduct
research to measure expectations. Gathering data on the target market’s past
behaviour, existing perceptions and believes and exposure of information can
provide the bases for estimating expectation.

2.4 customer satisfaction

Customer satisfaction is a post utilization opinion of the consumers that whether a product or
service provides acceptable level of consumption-related fulfilment or not (Oliver &
Rust, Customer delight: foundations, findings, and managerial insight., 1997)Study of (B. &
C., 2004)argued that satisfaction doesn’t depend upon the product or service itself rather it
relies on the customer’s perception. Likewise, (Jr. & Brady, 2000)states that satisfaction is a
result of perception of the customer about the value received. Moreover, study of (Liker, &
Choi, , 2004)found that there is a positive influence of perceived value on the
satisfaction. Therefore, it is understood that satisfaction level varies to customers
experiencing the same level of services (Ueltschy, Laroche, Eggert, & Bindl, 2007).

Rapid technological improvements and sturdy competition are forcing the firms to camber
their thoughts towards increased market share, for which, customer satisfaction is recognized
as a central concept (Jones & Sasser, 2016). Achieving customer satisfaction leads the firms
towards customer loyalty, improved profitability, positive word of mouth and depressed
market expenditures (Reichheld, Teal, & Smith, 1996)Customer loyalty is the customer’s
commitment to repurchase the product or service consistently for future use, regardless
of new situation or competitor offer ( (Oliver & Rust, 1997)Loyal customer show
greater resistance to negative word of mouth and they are less price sensitive. Furthermore,
(Garbarino & Johnson, 1999) observe loyalty as consumer preference towards goods or

14
services and propose that loyalty leads the firm to capture greater market share. Building of
brand image is also an important matter for service firms as it is a powerful determinant for
products marketing.

Kotler and Keller (2012) define satisfaction as follows:

“Satisfaction reflects a person’s judgment of a product’s perceived performance in

relationship to expectations. If the performance falls short of expectations, the customer is
disappointed. If it matches expectations, the customer is satisfied. If it exceeds them, the
customer is delighted.”

Obviously, angry or dissatisfied customers are troublesome because they may switch to
another company and spread negative word of mouth. But is it sufficient just to satisfy a
customer? After all, a firm might reason that products and services are rarely perfect and
people are hard to please. Companies that take this approach may be asking for trouble
because there is a lot of evidence that merely satisfying customers is not enough.
Marginally satisfied or neutral customers can be taken away by competitors. A delighted
customer, however, is more likely to remain loyal in spite of attractive competitive
offerings. Customer satisfaction plays an especially critical role in highly competitive
industries, where there is a tremendous difference between the loyalty of merely satisfied
and completely satisfied or delighted customers Hoffman and Bateson (2006).

Although a variety of alternative definitions exist, the most popular definition of customer
satisfaction or dissatisfaction is that it is a comparison of customer expectations to
perceptions regarding the actual service encounter. Comparing customer expectations with
their perceptions is based on what marketers refer to as the expectancy disconfirmation
model. Simply stated, if customer perceptions meet expectations, the expectations are said
to be confirmed and the customer is satisfied. If perceptions and expectations are not equal,
then the expectation is said to be disconfirmed Hoffman and Bateson (2006).

According to Hoffman and Bateson (2006) the term disconfirmation sounds like a negative
experience, it is not necessarily so. There are two types of disconfirmations. If actual
perceptions were less than what was expected, the result is a negative disconfirmation,
which results in customer dissatisfaction and may lead to negative word-of-mouth publicity
and/or customer defection. In contrast, a positive disconfirmation exists when perceptions

15
exceed expectations, thereby resulting in customer satisfaction, positive word-of-mouth
publicity, and customer retention.

today’s capitalistic world, there are always new and existing competitors to be aware of. This
is important because your customers will always have somewhere else to buy similar
products or services. In a highly competitive and nearly identical products economy, offering
differentiating services and building long-term relationships with customers can be critical
for banks success. The competitive power, strength, and survival of a bank lie in the degree
of its customer satisfaction (Jayaraman et al, (2010). Banks must therefore, recognize and
give earnest attention to the satisfaction of customers in planning their success, as customers
could shake the whole interest of the business they are linked.One of the most fundamental
concepts in customer satisfaction analysing service operation in banking sector is the function
between the “ front office” and the “back office”.Front-office procedures are those
experienced by the customers. In some instance they represent a very small proportion of
service from organizations total activities. Recognizing the importance of the front-office
interaction for customer satisfaction, customer service is defined as follows: Customer
service is a task, other than proactive selling, that involves interactions with customers ,in
person, by telecommunication, or by mail. It is designed,performed,and communicated with
two goals in mind: Operational efficiency and customer satisfaction.(Aster
Bekele,2009),Hand out Effective Customer Service, book.

2.5. Factors that Affect Customer Satisfaction

For marketers or service providers, achieving customer satisfaction is important because it

is supposed to be an important motive of customer loyalty, repeated business (with
customer)and positive word of mouth (Bearden and Teel, 1983). However quality is not the
only factor that effects the customer satisfaction, there are other factors beside quality like
Performance, Expectations, (Mohr, 1982) desires and price factor affect the customer
perceptions and the overall satisfaction level. Where quality of service is a descendent of
customer satisfaction as described by Cronin and Taylor (1992), Service quality is not the
only factor that has direct impact on customer satisfaction.

16
Matzler et al., (2002), went a step forward to classify factors that affect customers’
satisfaction into three factor structures;

 Basic factors: these are the minimum requirements that are required in a
product to prevent the customer from being dissatisfied. They do not necessarily
cause satisfaction but lead to dissatisfaction if absent. These are those factors
that lead to the fulfilment of the basic requirement for which the product is
produced. These constitute the basic attributes of the product or service. They
thus have a low impact on satisfaction even though they are a prerequisite for
satisfaction. In a nutshell competence and accessibility.
 Performance factors: these are the factors that lead to satisfaction if fulfilled
and can lead to dissatisfaction if not fulfilled. These include reliability and
friendliness.
 Excitement factors: these are factors that increase customers’ satisfaction if
fulfilled but does not cause dissatisfaction if not fulfilled which include project
management.

Similarly Zeithaml and Bitner (2003) stated determinants of customer satisfaction are:
Product and Service Features: Customer satisfaction with a product or service is influenced
significantly by the customer’s evaluation of the product or service features. In conducting
satisfaction studies, most firms will determine through some means (often focus groups)
what the important features as well as over all service competition.

2.5.1 Customer Satisfaction Determined by the following factors:

Customer Emotion: Customers’ emotions can also affect their perceptions of satisfaction
with products and services. These emotions can be stable, pre-existing emotions-example:
mood state or life satisfaction.

Attributions for Service Success or Failure: Attributions are the perceived causes of
events, influence perceptions of satisfaction as well. When they have been surprised by an
outcome (the service is either much better or worse than expected), customers tend to look for
the reasons and their assessment of the reasons can influence their satisfaction.

Perceptions of Equity or Fairness: Customers ask themselves: have I been treated fairly
compared with other customers? Did other customers get better treatment, better prices, or
17
better quality services? Did I pay a fair price for the service? Notion of fairness are central to
customers’ perceptions of satisfaction with products/services.

Other consumers, family members, and co-workers: In addition to products and service
features one’s own individual feelings and beliefs, consumer satisfaction is often influenced
by other people.

2.5.2. Measuring Customer Satisfaction

According to Hoffman and Bateson (2006) and Zeithaml et.al. (2009), customer satisfaction
is often measured by direct and indirect measures. Direct measures relate to the data obtained
from customer satisfaction surveys. Indirect measures refer to tracking and monitoring sales
records, profits and customer complaints. Customer satisfaction ratings are usually fairly
high. The various confounding factors that occur during the data collection process such as
genuine satisfaction of customers, response bias, method of data collection, issues relating to
the questions in the form, timing, context, social desirability bias and mood of the customer
commonly influence ratings. In fact, satisfaction surveys might increase customer satisfaction
regardless of the good or service being evaluated. More feedback is provided to the services
organization in a meaningful manner by setting standards using past satisfaction measures
and comparisons with competition Hoffman and Bateson (2006).

2.5.3 Understanding of customer satisfaction in relation with service

quality

The aggregated sum of difference between perceptions and expectations from the five
dimensions forms the global perceive quality construct. Laroche, et al., (2004)
(2004).Following this view, customers’ expectations were met through the outcome
dimension(reliability) and exceed it by means of the process dimension (tangibility,
assurance, responsiveness, and empathy). All the five dimensions of service quality had
influenced customer satisfaction substantially and improving the service quality elements is
widely considered as the main ancestor which could effectively bring significant
contributions on customer satisfaction.

Customer satisfaction in today's marketing era is believed to strongly connect with

understanding consumer behaviour. To understand the consumer buying pattern as firms are

18
looking to influence them, each organization seeks help from external agencies and various
sources to acquire the required information via the very common consumer behaviour
research analysis. Ultimately, there are certain motivating and influencing factors which play
important role in convincing a customer to choose a product and the same factors are also
responsible for the consumer satisfaction after the post purchase behaviour. Consumers prefer
products not base on the functional features anymore; rather products are preferred by them
based on the environmental impacts and some other dynamic factors (Mont and Plepys,
2003). Also, one of the extremes, customer satisfaction is always intended to influence
buyers' repurchase intention through positive word of mouth interaction; meanwhile being the
other extreme, dissatisfaction leads to negative word of mouth communication. Moreover,
satisfied customers always suggest others to go for the product while dissatisfied customers
will also recommend others in huge numbers but in the context of negative marketing, most
probably dissatisfied customers recommend others not to use the product (La Barbara and
Mazursky, 1983).Product differentiation is impossible in a competitive environment of the
banking industry.

According to Qureshi et al. (2013) customer satisfaction has strong influence on the
efficiency and financial performance of banks. It has great influence upon performance and
profitability of the banks. He also claimed that satisfied customers share their experiences
with other people and occupy unambiguous word of mouth (grapevine) advertisement and
publication of the banks. This positive word of mouth publication is very helpful in
increasing banks relationship and interaction with the whole community. Many literatures
found that there is strong relationship between customer satisfaction and organizations
efficiencies, operational and financial. The state of satisfaction depends on a number of
factors which consolidate as psychological, economic and physical factors. The quality of
service is one of the major determinants of the customer satisfaction (Kumbhar, 2011).

Research hypothesis H1: service quality has an impact on customer satisfaction.

Information communication technology on customer satisfaction

The advancement in technology has played an important role in improving service delivery
standards in the banking industry. In its simplest form, Automated Teller machine and
deposit machines now allow consumers to carry out banking transactions beyond banking
hours. With online banking, individuals can check their account balances and make payments
19
without having to go to the banking hall. There is also, mobile banking which allows
individuals to check their account balance and make fund transfers using their mobile phones.
This is gradually creating a cashless society where consumers no longer have to pay for all
their purchase with hard cash (Wisdom, 2012). He finally conceded that the growth in the
application and acceptance of internet driven technology means that delivering an enhanced
service is more achievable than ever before.

Rahman (2014) argues that the use of technology has significantly increased customer
satisfaction index. In the banking industry, According to Wang, et al., (2014), there are
numerous was in which IT has influenced customer satisfaction in the banking sector. This
includes the provision of internet banking, provision of mobile banking, provision of e-loans
among others. According to Rahman(2014) internet banking is used synonymously with
electronic banking to refer to banking transaction over an electronic internet enabled medium.
Internet banking has a wide range of platforms including telephone banking, online banking,
use of ATM, use of Debit and Credit Card, and finally Electronic Funds Transfer (EFT) and
the Real Time gross settlement (RTGS).

In Ethiopia cash is still the most dominant medium of exchange, and electronic payment
systems are at an embryonic stage (Worku, 2010). Bultum (2014) concurred that the
development of Ecommerce, adoption and diffusion of E-banking system is not well
developed in Ethiopia. All banks in Ethiopia are too late to move with technological
advancement and they should clearly chart out the time schedule for their integration and
technological advancement. Even though currently there are three government and sixteen
private banks in the Ethiopian banking industry, the modern e-banking services like ATMs,
Payment cards, Tele banking, Internet banking, Mobile Banking and other are new to the
industry. ATM combines a computer terminal, record-keeping system and cash vault in one
unit, permitting customers to enter the bank‟s book keeping system with a plastic card
containing a personal Identification Number (PIN) or by punching a special code number into
the computer.

Internet banking the idea of internet banking is to give customers access to their bank
accounts via a web site and to enable them to enact certain transactions on their accounts,
given compliance with stringent security checks. It is used to provide traditional banking
service over the internet (Opponget al., 2014).
20
Mobile Banking Mobile banking is a service that enables customers to conduct some
banking services such as account inquiry and fund transfer, by using of short text message
(SMS) (Bultum, 2014).

Telephone Banking Telebanking (Telephone Banking) can be considered as a form of

remote or virtual banking, which is essentially the delivery of branch financial services via
telecommunication devices where the bank customers can perform retail banking transactions
by dialling a touch-tone telephone or mobile communication unit, which is connected to an
automated system of the bank by utilizing automated voice response (AVR) technology
(Oppong et. al., 2014).

H2: Information technology has an impact on customer satisfaction.

Price fairness ;Price fairness refers to consumers' assessments of whether a seller's price is
reasonable, acceptable or justifiable (Xia et al, 2007). Price fairness is a very important issue
that leads toward satisfaction. Charging fair price helps to develop customer satisfaction and
loyalty. The price fairness itself and the way it is fixed and offered have a great impact on
satisfaction. Marzieh & Davood, (2012) identified customers preferred dimensions that
include: financial considerations (interest earnings, interest payments); branch environment-
related considerations (atmospherics); and convenience related considerations (ATMs,
opening hours).

H3: Prices fairness has a positive and significant impact on customer satisfaction.

2.6. Things to Do When You Have a Dissatisfied Customer

If customers dissatisfied, the first step is to identify and define their dissatisfaction. Their
wants and needs first must be uncovered and defined to see if the features and benefits of
your company’s product or services can satisfy those wants and needs. Their dissatisfaction
as well as their satisfaction should be measured and analyzed to get a better perception of
their true level of dissatisfaction. Once the reason and level of their dissatisfaction is exposed
then a system to improve that unhappiness can be instituted and a control can be implemented
to insure continuation of that improvement in product or level of service.
(www.qualitygurus.com).

21
2.7. Customer Satisfaction in Retail Banking

Customer satisfaction and service quality are inter-related.The higher the service quality, the
higher is the customer satisfaction. Many agree that in the banking sector, there are no
recognized standard scales to measure the perceived quality of a bank service. Thus,
competitive advantage through high quality service is an increasingly important weapon to
survive. Measuring service quality seems to pose difficulties to service providers because of
the unique characteristics of services: intangibility, heterogeneity, inseparability and
perishability (Bateson, 1985). Because of these complexities, various measuring models have
been developed for measuring perceptions of service quality(Gro¨nroos, 1983; 1990;
Parasuraman et al., 1985; 1988;,1991; Stafford, 1996; Bahiaand Nantel, 2000; Aldlaigan
andButtle, 2002)

2.8. SERVQUAL

For the purpose of measuring customer satisfaction with respect to different aspects of
service quality and to overcome problems which is created as a result of the gap between
management and customers, a survey instrument was developed by Parasuraman et al in
1988. The instrument is called SERVQUAL. The basic assumption of the measurement was
that customers can evaluate a firm’s service quality by comparing their perceptions with their
experience. It is designed to measure service quality as perceived by the customer. “Based on
the information from focus group interviews, Parasuraman et al. (1985)identified basic
dimensions that reflect service attributes used by consumers in evaluating the quality of
service provided by service businesses.” Parasuraman et al. (1985; 1988)measured the quality
of services provided by retail banks, a long-distance telephone company, a securities broker,
an appliance repair and maintenance firm, and credit card companies. Based on their study
Parasuraman et al (1985) identified ten key determinants of service quality. They are:

1.Reliability 4.access 7.Credibility 10. Tangibles

2.Responsiveness 5.courtesy 8. Security
3.Competence 6.communication 9. Understanding/ knowing/ the customer

22
In their 1988 work, Parasuraman et al discovered an instrument for measuring consumers’
perception of service quality, after that it became known as SERVQUAL. They prepared a
quantitative research and the previous ten components were collapsed into five dimensions: -

1. Reliability: is ability to perform the promised service dependably and accurately.

2. Responsiveness: willingness or readiness of employee or professionals to provide

Service .

3. Assurance: knowledge and competence of service providers and the ability to

convey trust and confidence.

4. Empathy: Caring, individualized attention the firm provides to its customers.

5. Tangibles: Physical facilities, equipment’s and appearance of personnel.

Reliability, tangibles and responsiveness remained distinct, but the remaining seven
components collapsed into two aggregate dimensions, assurance and empathy
(Andersson,T.D.1992).

2.9 Criticisms of SERVQUAL

Though, the SERVQUAL model has been the major generic model used to measure and
manage service quality across different service settings and various cultural backgrounds, it
has been subjected to a number of theoretical and operational criticisms (Buttle,
1996).However Asubonteng et al (1996) conclude that until better but equally simple mode
emerges SERVQUAL will predominate as a service quality measure. As identified by Buttle
(1996) theoretical and operational criticisms of SERVQUAL are listed below.

 “Theoretical:
 Paradigmatic objections: SERVQUAL is based on a disconfirmation
model rather than an attitudinal paradigm; and SERVQUAL fails to drawn
established economic, statistical and psychological theory.
 Gaps model: there is little evidence that customers will assess service
quality in terms of P – E gaps.

23
  Process orientation: SERVQUAL focuses on the process of service
delivery, not the outcomes of the service encounter.
 Dimensionality: SERVQUAL’s five dimensions are not universals; the
number of dimensions comprising SQ is contextualized; items do not
always load on to the factors which one would a priori expect; and there is
a high degree of inter- correlation between the five RATE
dimensions”(Buttle, 1996).

 “Operational:

 Expectations: the term expectation is polysemic; consumers use standards

other than expectations to evaluate SQ; and SERVQUAL fails to measure
absolute SQ expectations.
 Item composition: four or five items cannot capture the variability within
each SQ dimension.
 dimension Moments of truth (MOT): customers’ assessments of SQ may
vary from MOT to MOT.
 Polarity: the reversed polarity of items in the scale causes respondent error.
 Two administrations: two administrations of the instrument cause boredom
and confusion.
 Variance extracted: the over SERVQUAL score accounts for disappointing
proportion of item variances” (Buttle,1996).

2.10 The Relationship between Service Quality and Customer Satisfaction

The relationship between customer satisfaction and service quality has received a good deal
of attention in the literature (Bolton and Drew; 1994). Parasuraman et al (1988) defined
service quality and customer satisfaction as “service quality is a global judgment, or attitude,
relating to the superiority of the service, whereas satisfaction is related to a specific
transaction”. Satisfaction is a “post consumption experience which compares perceived
quality with expected quality, whereas service quality refers to a global evaluation of a firm's
service delivery system” (Parasuraman et al., 1985).

Iacobucci et al. (1995) conclude that the key difference between service quality and customer
satisfaction is that quality relates to managerial delivery of the service while satisfaction
reflects customers' experiences with that service. They argue that quality improvements that
are not based on customer needs will not lead to improved customer satisfaction. Bolton and
24
Drew (1994:176) pointed out customer satisfaction depends on pre-existing or
contemporaneous attitudes about service quality”. Anderson et al. (1994) also point out that
improved service quality will result in a satisfied customer. Service quality has found as one
of the significant factors in distinguishing services and products. Service quality is an
important tool to measure customer satisfaction (Pitt et. al, 1995). There is a close
relationship between service quality and customer satisfaction.

Customer satisfaction can be protected by providing products or services with high quality. In
addition, as service quality increases, satisfaction with the service and intentions to reuse the
service increase. Based on the survey result Siddiqi (2011) described that all the service
quality attributes are positively related to customer satisfaction and customer satisfaction is
positively related to customer loyalty in the retail banking settings. Kumar et al (2009) also
stated that high quality of service will result in high customer satisfaction and increase
loyalty. Furthermore Parasuraman et al (1988) found that customer satisfaction is the
outcome of service quality.

2.11. Empirical Review of Literature

Potluri and Zeleke (2009) investigated the influence of employees‟ competency to customer
satisfaction in Ethiopian banking sector. The study asserted that competencies are observable
behaviors, knowledge, skills, and abilities of marketing personnel to attract and retain
customers by delivering quality service. The study found that competent frontline employees
are invaluable assets for any organization‟s survival in the dynamic and competitive
environment. The study recommended that in assessing the competency level of employees
helps organizations to communicate desired behaviors, control costs and increase customer
satisfaction.

Awanet al. (2011) investigated the service quality and its relationship to customer
satisfaction among the customers of conventional banks and Islamic banks. They carried a
survey using a modified SERVQUAL scale to 200 walk-in customers conveniently drawn.
The study used regression analysis and identified five service quality dimensions namely;
empathy,service architecture, convenience service encounter, employee service criteria,
customer focus and five customer satisfaction dimensions: responsiveness, competency, safe
transaction, competitive services and knowledge for the overall banking.

25
Shanka (2012) studied the relationship between service quality, customer satisfaction and
loyalty using five dimensions of SERVPERF model which are reliability, assurance,
tangibility, empathy and responsiveness in private banks in Ethiopia. The study used
correlation and multiple regressions to analyze data from a convenient sample of 260
respondents. The study shows that all service quality dimensions are positively correlated
with customer satisfaction.

A research conducted by Mesay, (2012) tried to investigate the relationship between service
quality, customer satisfaction and loyalty and the result indicated that offering high quality
service increase customer satisfaction which in turn leads to high level of customer
commitment and loyalty. In addition, it was showed that there is a positive and significant
link between customer satisfaction and service quality like tangibility, reliability; competence
conflict handling and inferred that customer satisfaction is positively significant related to
customer loyalty (Mohsin et al, 2012). In addition to this even the customer’s expectations
towards particular services are also changing with respect to factors like time, increase in the
number of encounters with a particular service, and competitive environment.

Bahraini, (2012) found out that employee behaviour and how they interact with customers
were the most important and fundamental factor in increasing the quality of bank services
besides the reliability, innovation in banking services and profit and convenience. The study
tried to measure customer satisfaction by using factors that include employee behaviour,
competence and skills of staff, innovation and diversity in service, benefit and facilities, how
to respond, physical facilities, reliability, ease of service and bank’s reputation and thus,
suggested banks to be innovative and to diversify their services. Through technological
development accessibility has been extended and so introduction of new service delivery
channel that enable consumer to do business with service firms from home or office. In
banking services, attributes like: appearance of the facility, attitude and behaviour of staff,
decor and atmosphere, business hours, interest rate and waiting time are used for the
measurement of satisfaction.

According to a study done by KPMG (2015) indicates that the rapid proliferation of
smartphones and tablets globally, both in developed countries and developing countries has
fueled on the mobile banking, raising the number of people who use mobile banking to 0.8
billion. Adoption rates of mobile banking are highest reaching 60- 70% in China and India.
26
The study further suggests that the number of mobile banking users is set to rise to 1.8 billion
people by 2019.So this shows ICT facilities has an impact on customer satisfaction then
retention. A study conducted by yalew, (2015) suggested that the share of using technology-
based service products by the customer on his/her overall satisfaction is about 80.3%. Based
on this it can be conclude that the impact of Information and communication Technology on
customers satisfaction is very strong and significant impact on customer satisfaction in
Ethiopian private banking industry.

2.12. The Conceptual Framework.

The conceptual frame work shows that the three independent variables namely service
quality, information technology and price fairness has an impact on dependent variables
(customer satisfaction), and for the service quality there are the five dimension used to
measure this variable.

Figure 2.

Service quality

 Reliability
 Responsiveness
 Assurance
 Empathy

Customer satisfaction Information technology

27 Price fairness
 +
Chapter 3
Research Methodology
3.1 Research Design
The study could be identified as descriptive research, because descriptive research is an
appropriate choice when the research aim is to identify characteristics, frequencies, trends
and categories(www.scribbr.com/methodology/May15/2019).Morover it answers the “what,”
“when,”and “where” of a research problem. It is also possible to get a balanced mix of
numerical response (Quantitative data) and open-ended answers (Qualitative data) from the
descriptive method.(www.survey sparrow.com Nov 18 2022).

The descriptive research is appropriate for this study because the intention of this study is to
describe the present satisfaction level of the customers of Amhara bank (Kality total branch),
with regard to factors like services quality, ICT and pricing. This design was also enabled the
researcher to determine and report on how customers are satisfied or not.
3.2Data Sources and Types
The data sources that the researchers design for this study are both primary and secondary.

primary data sources such as

28
  Questionnaires; both open end and close ended questioner filled by the customers of
Amhara bank kality total branch and,
 Interview; structured and unstructured interview questions asked to the management
of the selected bank .
Secondary data sources such as
journal, Web sites, research documents etc. will be used as well.
3.3 Data Types.
From the two general types of data’s ,which are Quantitative and Qualitative, the study
involves both quantitative and qualitative data and the combination of the strengths of each to
answer research questions.
 Quantitative methods will be ideal for measuring prevalence of known phenomena
including inferences of causality.
 Qualitative methods allow for identification of previously unknown processes,
explanations of why and how phenomena occur.( European Journal of EducationVol.
48, No. 2, June, 2013)

3.4. Research Approach

There are three research approaches that are used in different researches. These are
quantitative, qualitative and mixed methods Creswell (2003). Qualitative research approach
to research is concerned with subjective assessment of attitudes, opinions and behaviour
Kothari, (2004). Such an approach to research generates results either in non-quantitative
form or in the form which are not subjected to rigorous quantitative analysis. In addition, the
purpose of qualitative research is to gain a deeper understanding and describe a problem. On
the other hand quantitative research is based on the measurement of quantity or amount. It is
applicable to phenomena that can be expressed in terms of quantity Kothari (2004). The
purpose of quantitative research is to gather, analyse, and measure statistical data. In a
quantitative research approach a number of objects are selected and studied in order to
increase the ability to draw general conclusions. Therefore The study is going to involve the
collection of both quantitative and qualitative data.

3.5 Target population and Sampling

29
Target population can be defined as all people or items (unit of analysis) with the
characteristics that one wishes to study. The unit of analysis may be a person, group,
organization, country, object, or any other entity that the researchers wish to draw scientific
inferences about. Bhattacherjee, (2012).Currently the number of Amhara Bank customer
reached 550,000 and number of worker as it start operating were1425, which raised to 4000
and plus up to date.(https://ethiopianmonitor.com/2022/12/29).Therfore the target populations
of the study are customers of Amhara bank Addis Ababa(kality total branch) which are
currently 4600 with 10 employees.(According to the staff members).

Israel (2003) as cited in Hussein (2012) summarized that there are four strategies to decide
sample size including (1) census for small populations, (2) imitating a sample size of similar
studies, (3) applying formulas to calculate a sample size, and (4) using published tables.
Applying the calculation methods for determining a sample size allow the researcher to
achieve the necessary sample size for a different combination of levels of precision,
confidence, and variability of a particular study. Therfore we use the third strategy because
according to Yamane (1967 cited in Israel 2003) cited in Hussein, (2012), there three criteria
are useful for determine the appropriate sample size which are ; level of precision, level of
confidence, and degree of variability. So that given these three criteria, the sample size had
been determined based on the following simplified formula:
n=N /1+ N (e )²
Where, n is sample size, N is the population size and e is the level of precision. A 95%
confidence level and e = 0.05, will assume for the purpose of determining sample size for this
study. Accordingly, the sample size for the study is calculated as follows.
n=4600 /1+ 4600 ( 0.05 ) ²
n=368 customers
Therfore the research will use random selction for the given customers

3.6. Method of Data Collection

 The researchers develop a self-administered questionnaire of descriptive type to
collect primary data. The Primary data will be collected by using both open end and
close ended questioner, filled by the customers of Amhara bank, kality total branch.

30
 On the other hand data will be collected from the management of the selected bank
using both structured and unstructured interviews.
 Secondary data will be collected from various , journals, annual reports, web sites and
research document which support primary data.

3.7. Data Analysis Techniques.

Copper and Schindler (2014) defines data analysis method as the use of the statistical and non
statistical analysis of collected data by a researcher so as findings. For this study the data
gathered through questioner will be analyzed using descriptive analytical methods like
frequencies, percentages, mean, and standard deviation to be analyzed quantitatively. The
data will be presented using table, graphs, chart and in descriptive format. Besides, data
gathered through interview will be analyzed qualitatively through narration to support the
study.

4.Time schedule
The time schedule planned by the researchers is as follows;
Table; Time schedule

Activities DURATION
On the year April May June
2023
 
1 Finalizing the proposal
2 Finalizing related literature review 
3 Finalizing research methodology 
4 Data collection 
5 Data analysis 
31
 6 Research report writing 
7 Submission of draft report 
8 Submission of final report 

5.Budget schedule
Table for budget allocation to do the research
Table; Budget schedule

Materials Amount Unit price ETB Total ETB

Paper 1 pack for( 460 birr) 3 1380

Pen 5 20 100
Pencil 1 10 10
Print 100 5 500
Transport Per person 300 1500
Internet data Per person 100 500
Other expense 1000
Total 4990

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definition-examples/.
https://www.revechat.com/blog/customer-service-in-banking/.
https://addisfortune.news/amhara-bank-makes-headway-with-strong-capital/amp/
https://sqnbankingsystems.com/blog/what-do-consumers-expect-from-their-banks/
https://borkena.com/2022/06/19/amhara-bank-the-latest-in-ethiopias-financial-
market-inaugurated/
https://ethiopianmonitor.com/2022/12/29/amhara-bank-makes-237mln-birr-profit-
from-first-year-operations/
https://nbe.gov.et/history-of-banking
https://ethiosuccess.com/list-of-banks-in-ethiopia/

34
https://www.capitalethiopia.com/2021/04/19/the-swing-of-paid-up-capital-over-the-
years/?amp=1
( Amhara Media Corporation on June 18 2022 broadcast).
https://furtherafrica.com/2023/01/04/ethiopia-amhara-bank-makes-3-6m-profit-on-first-year-
of-operations/

Appendixes
Admas University
Kality campus
Department of Business Management
Dear Respondents,
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We a graduate students at Admas University(Addis Ababa, Kality campus) . Currently, we
are conducting a research study on “Assessment of Service Quality and Customer
Satisfaction in Amhara bank kality total branch, Addis Ababa Ethiopia” in partial fulfilment
of B.A Degree in Business management. We request your help to spend some minutes of
your time by filing the provided questionnaire.

This questionnaire is intended to gather information about service quality and customer
satisfaction of perceptions Amhara bank kality total branch and related issues. The
questionnaire is prepared to help the study through your attitude and behaviour related to
quality service usage satisfaction. We can assure you that any information that you provide in
this questionnaire will be kept confidential. and used for academic purpose only. Thank you
in advance for your cooperation in filling the questionnaire.

Part I. General information

2. Type of account : current Saving Fixed deposit
Any other _________
3. Gender male Female
4. Age group :
Under 18 years 18-29 years 30—45 years
46—60 year above 60 years

5. Your education level: primary secondary Diploma

First Degree Masters degree and above
6. How long have you been a customer of this bank ?
<, 1 month 4-7 months
1-3 months since it starts

Part .II Service quality and Factors that affect customer satisfaction.
Kindly tick“√” the answer that best represents your views.

36
 Research questions Strongly Disagree Neutral agree Strongly
disagree agree
I. service quality
Reliability
1 I am satisfied with the services provided
by the bank as promised.

2 I am satisfied with the service of handling

a problem (speed of problem solving)
3 I am satisfied with the operating hours of
the bank.

4 I am satisfied with the way bank deliver

up to date and accurate records.
5 The bank is dependable .
Tangibility
6 I am satisfied with the premises
(infrastructure, building etc) of the bank.
7 I am satisfied with technological up-to-
date equipment of the bank.
8 I am satisfied with the way employees
dress.
9 I am satisfied with the marketing
materials complete information.
Responsiveness
10 I am satisfied with the security of the
bank and security of my money
&transaction .
11 I am satisfied with the employee’s
eagerness of instilling confidence to me .
12 I am satisfied of the knowledge of the
employee’s up to date knowledge about
products, services, rules& regulation and
polices on the bank.
13 I am satisfied in their speed and
efficiency of services

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 Assurance
14 The bank staff trustworthy.
15 If I need help the bank staff could
explain clearly
16 I am satisfied in their politeness
17 The staff is confident in service delivery
Empathy
18 The Bank is serving each customer
individualized attention
19 Employees of the bank to fully
understand the needs of the customer
20 The Bank is operating at hours
convenient to all customers
21 I am satisfied the bank caring for me.
II. Availability of ICT facilities
22 Availability and convenient location of
ATM machine
23 Availability of Internet banking services.
24 Availability Mobile banking services
25 Availability of Telephone banking
III. Prices and interests
26 Interest rate on loans/credits
27 Its services charges
28 Its interest rate on saving deposits
29 I am satisfied in obtaining loans.
IV. Customer satisfaction
30 I am satisfied with the service my bank
provides
31 I am satisfied with how I am treated by
the bank’s employees
32 I do not consider switching to another
bank to get better service
33 I would recommend my bank to others.

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Anything else, you want to comment the overall experience of the bank
----------------------------------------------------------------------------------------------------------------
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Interview question for management person

1. Do your customers are satisfied by the service you deliver to them?
2. Do you probably know the factors that your customers complain your services and give
solution?
3. What standard does your organization use to measure customers‟ satisfaction?
4. How do you see overall customer satisfaction?

39