BULE HORA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT
Asses on the impact of Technology on customer service
(in case of Hibret Bank Hossana Branch)

By: Chaltu Dugo

Id No:2815/13
Advisor: TAFESE N.(PHD Scholar)
A senior essay submitted to the partial fulfillment of the requirement
for bachelor of art degree (BA) in marketing management.

APRIL, 2023

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Table of Contents
ACKNOWLEDGEMENT..................................................................................................................iv
ABSTRACT.........................................................................................................................................v
Acronyms............................................................................................................................................vi
CHAPTER ONE..................................................................................................................................1
1. Introduction..................................................................................................................................1
1.1Background of the Study.............................................................................................................1
1.2. Statement of the Problem..........................................................................................................2
1.3. Research Questions...................................................................................................................3
1.4. Objective of the Study...............................................................................................................3
1.4.1. General Objective...............................................................................................................3
1.4.2. Specific Objective..............................................................................................................3
1.5. Significance of the Study..........................................................................................................3
1.6. Scope of the Study.....................................................................................................................4
1.7. Organization of the research paper............................................................................................4
1.8 Basic term...................................................................................................................................5
Chapter Two.........................................................................................................................................6
Literature of Review.........................................................................................................................6
2. Introduction..................................................................................................................................6
2.1. Technology Issue.......................................................................................................................6
2.2. Development in Technology.....................................................................................................6
2.3. Technologies for Connecting....................................................................................................6
2.4. Technology is a key Driver of Service Innovation...................................................................7
2.5. Technology in the Service.........................................................................................................7
2.6. Electronic Banking Technologyor E-banking...........................................................................8
2.7. Electronic Payment System.......................................................................................................9
2.8. Benefits of information Systems (IS)........................................................................................9
2.9. Societal Factors Affecting customer service...........................................................................10
2.10. Automated Teller Machine (ATM).......................................................................................10
Online banking (or Internet banking or E-banking).......................................................................13
2.11. ATM Services Quality..........................................................................................................13
2.12. The Telephone in Customer Service.....................................................................................14
2.13. Advantages of Telephone Customer Service........................................................................14
2.14. Electronic Billing Presentment and Payment........................................................................15
2.15. Advantages and Disadvantages of Technology....................................................................15

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Chapter three......................................................................................................................................17
3. Research Methodology...............................................................................................................17
Introduction........................................................................................................................................17
3.1.Description of the study area....................................................................................................17
3.2. Research Design......................................................................................................................18
3.3. Target Population....................................................................................................................18
3.4. Sampling Technique/Procedure..............................................................................................18
3.5. Data type and Source...............................................................................................................18
3.6. Data Collection method...........................................................................................................19
3.7. Data Analysis and interpretation.............................................................................................19
Tableone(1).budgetschedule......................................................................................................19
Table two. work schedule...........................................................................................................20
Reference............................................................................................................................................21

ACKNOWLEDGEMENT
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Above all, I praise God who guided me with his everlasting forgiveness and I would like
to express sincere gratitude to my research advisor Tafese N. (PHD) for guiding me since
start from this proposal. I am indebted to Bule Hora University, college of business and
economics.

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ABSTRACT
This Paper will entitle an assessment on the impact of technology on customer service of
Hibert Bank in Bule Hora branch. So, modern technology provision is one of the most
important services of Hibret bank while aims to increase the modern technological
supported service and serve customers based on the needs of technological service. The
objective of study is to assess the impact of technology on customer service of Hibret Bank
of in Bule Hora branch and this study will conduct to understand the real problem related to
the banks technology service. To this convenience sampling technique will use for primary
and secondary data collection through questionnaires which will be collect from customers
and managers of the bank. So, the paper will be identifying the major findings of the study
and it will makes conclusions and recommendations of the main findings.

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Acronyms
Is= information system

E- Banking= electronic bankin

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CHAPTER ONE

1. Introduction
In this research proposal I will try to show the following elements. the study begin with
background of the study which means the main title of my research will discussed with in
global, Ethiopian as well as in Bule Hora perspective consequently statement of the
research. Additionally the general and specific objective of the research will discuss,
further more the basic research question will discuss, beyond to these the significant and
scope of my study will propose finally organization of the paper and conceptual term will
brief precisely.

1.1Background of the Study

There are been much controversy regarding the definition of the term bank, it is a person or
a company caring on the business of receiving money and collecting drafts for customers
subject to the obligation of honoring checks down up on them from time or time current
account. (World Bank 2016)

Generally bank can be divided in to two, public bank and private bank. Public bank related
with rules and regulation of government and private bank is related with group of
individual, both of them gives service for the society.
Then I want to focus on the private bank of Ethiopia. There are so many private banks in
Ethiopia; one of the most popular private banks is Hibret bank. Hibret bank is like any
other private bank established to earning profit. The major role of Hibret bank is providing
the technological support service 24/7 payment card service through ATM, mobile and
internet banking service and other service. Technology is providing vehicles for delivering
existing service in more accessible, convenient and productive ways. Technology facilitates
basic customer service function, transaction, learning and information seeking.
(www.Hibretbanks. com).

Technology enable both customer and employees to be more effective in getting and
providing services through self-service technology, customer can serve themselves more
effectively the smart card is a good example of stored value card, used widely in some part
of Ethiopia. Customers can download cash from other account in to card so they can be

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used like cash. But the card is more secure than cash because personal information is stored
in the chip. So, technology can provide tremendous support for customer and company like
bank and stake-holders in making them more effective in delivering service ( Zeithmal. A,
Bitner,M. and Gremler D. (2006).

The number of shareholders and paid up capital have been increasing continuously and
significantly and currently stand at over paid-up 3436 and its capital currently stood at Birr
1.5 billion. However, the 13th Extraordinary Annual General Meeting of the shareholders
of Hibret bank endorsed the increase of paid-up capital to Birr 2 billon and subscribed
capital to 5 billion within the coming three years.

To expand its coverage, the bank is finalizing preparation to open additional branches both
in Addis Ababa and regional towns.

Hibret bank is governed by the board of directors consisting of a chair person a vice chair
person and seven directors. The overall management is entrusted to the management team
which comprises the president/ chief executives officer, who is appointed by the board of
directors, two vice presidents and twelve department’s managers, including engineering
service.

It is a pioneer to introduce a core banking system as of July 2000; there by managing to

network the head office and all branches using a more versatile 150 standard core banking
system, the bank is now delivering more efficient service to its customers (Hibret bank
brochure, 2016).

1.2. Statement of the Problem

We are living in an era of competition whose more and more organization enter the market
with homogeneous product or service the use of modern technology is very important. The
more competition, this calls the rise of technological improvement for service excellence.
In this regard, technology, specifically the internet, provides an easy way for customers and
employees to learn, do research, and collaborate with each other. The bank without
technology creates some problems like:

 Fail to handling customers complain.

 Unable to generate or raise high amount of profit.
 Unable to providing information for customers.

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 Fails to measure employees and customers satisfaction so those and related
problems are initiated or motivated me to do the research on this bank.

1.3. Research Questions

The following basic questions were attempted to conduct this research study.

 Did the technology force the bank to serve problem related to profitability and other
issues.
 Did the technology has a role to bank and customers traditionally consistencies on
time, place and geographical locations?
 How the customer’s access information about the service by technology that
provided by the bank?
 How did the bank technology handling the customers complain?

1.4. Objective of the Study

1.4.1. General Objective
The general objective of the study was assessed the impact of technology on customer’s
service of Hibret bank in West Guji Zone Bule Hora Branch branch.

1.4.2. Specific Objective

 To assess the role of the technology to solve problem related to profitability and other
issues of bank.
 To assess the technological availability of the bank and customers without problem.
 To access information access that bank gives the customers by using the bank
technology
 To assess how the bank handling the customers complain in terms of technology.

1.5. Significance of the Study

The significance of this study, as earlier stated in the objective of the study. It was
very significant to both the Hibret bank in Bule Hora branch and customers who has
got service from it and as well as, it was significant to the others research those who
want other research in future. Hence, the research work in the area was desirable
and solves the problems related to modern technology. And the most important of
this study was to gain bachelor art degree (BA) in marketing management.
There are:

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 Provide data which help to identify the impact of technology on banking operation.
 Provide some implication for future research work in the area.
 Provide some information to government and private bank in the country the way of
taking measures to improve their banking activities.
 Suggest possible solution and recommendations on using technological
encouragement.

1.6. Scope of the Study

Geographical scope

Geographically, this study was limited to only to Hibret bank Bule Hora branch in Bule
Hora town.

Time scope

The data that will be collect to this study will limit only to 2010E.c

Empirical scope

The paper emphasize only on the assessment of the impact of technology on customer
services of Hibret bank in Bule Hora branch because it can also study from different angle.

Methodological scope

The researcher will conduct this study only by using descriptive methods with tables,
graphs and percentage.

Therefore, in general, the researcher is need to do by consider different branches and others
but shortage of time and insufficient finance is an obstacle, so the researcher has do the
research only in Hossana branch on the impact of technology on customer services of
Hibret bank.

1.7. Organization of the research paper

The research paper will be organized in logical sequence for the sake of the readers to
easily understand. The paper will contains the following chapters:-chapter one deals about
the introduction part background of the study, background of the organization, statement of
the problem, objective of the study, significant of the study, limitation of the study, and
scope of the study. Chapter two discuss with review of the related literature. Chapter three

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deals with methodology of the study and chapter four discuss data analysis and
interpretation. Finally, based on the finding of the study summary, conclusion and
recommendation was presented on chapter five.

1.8 Basic term

Technology is application of scientific knowledge for achieving practical goal in area
producible way.

Customer services the assistance and advice provided by accompany to those people
who buy or use it products or services.

Information system is combination of soft ware, hard ware, and telecommunications

network and to collect useful data, especially in an organization.

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Chapter Two
Literature of Review

2. Introduction
In the second chapter I will explain the major concepts of my research title based on the
empirical review in addition by conceptual frame work. Like, Technological issue,
Development of technology, Benefit of Technology as well as the major roles will be
discussed.

2.1. Technology Issue

Technology is the invention of tools and techniques, and is similarly many way to the
history of humanity. Background knowledge has enabled people to create new things, and
conversely scientific endeavors have become possible through technological which assist
human to travel to places. Technological artifacts are produce of an economy- A force for
economic growth and a large part of everyday life.

Technology innovation affect and are affected by, society’s cultural traditions
(http//wwwBlurfit.com/1998/.htm/computerization.com).

2.2. Development in Technology

The rise in accessibility of computer technology and the increasing sophistication of
software, allowing the generation of personalized letters and telephone scripts, has eased
the task of direct marketers. Large data bases holding detailed information on individuals
can be stored, up dated and analyzed to enhance targeting. Automated telephone systems
make it possible to handle dozens of calls simultaneously, reducing the risk of losing
potential customers. Furthermore, developments in technology, in telephone cable and
satellite television and the internet have triggered the rise in home -based electronic
shopping (Darymple H, 1976).

2.3. Technologies for Connecting

The major force behind the new connectedness is explosive advances in computer,
telecommunications, information, transportation and other connecting technologies. The
technology boom has created exciting new ways to learn about and track customers and
create products and services tailored to individual customer needs. Technology is helping

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companies to distribute products more efficiently and effectively and to communicate with
customers in large groups or one-to-one.

2.4. Technology is a key Driver of Service Innovation

The term “technology” as commonly used, refers to the practical application of cutting
edge tools and procedures. Innovative service providers are interested in how they can use
new technological development to automate and speed up processes. Reduce costs (and
perhaps prices) facilitate service delivery, relate more closely to their customers and offer
them more convenience, add appeal to existing products, and make it possible to develop
new types of services(Robinson and Stiden, 1967)

The ability of firms to generate business through technology driven service innovations is
often dependent on customers having access to the necessary equipment and infrastructure
it’s predicted that the growth of broad band telecommunications which speeds customers
interactions with web sites, will provide a powerful stimulus for use of internet channels
(ibid)

2.5. Technology in the Service

The stereotype of a service firm is a small-scale labor intensive establishment with
unsophisticated processes that require little or no investment in technology. Service relay
heavily on communications and computer technologies, which rapidly become obsolete this
results in a shorter useful life of capital equipment in service and manufacturing (Kotler,
1999).

 Application areas of technology in services:

o Processing the customers
o Processing the customer’s equipment.
o Processing information
o Creating new services

Quality and service policy

For consumer durables, and most industrial goods, product quality and service are
related. High quality product requires less service and low quality product requires
more service. The quality of service product is determined by the user’s perception .it is

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the degree to which the bundle of service attributed as a whole satisfies the user/
customers. This is called expectation –to – perception match

Dimension of service quality

They identified five principal dimensions that customers use to judge service quality-
reliability, responsiveness, assurance, empathy, and tangibles, which are listed in order
deeding relative import to customers.

I. Reliability: The ability to perform the promised service dependably and accurately.
Reliable service performance is a customer’s expectation and means that the service
is accomplished on time in the same manner and without errors every time.

E.g.believing mail at post office.

II. Responsiveness: the willingness to help customers and to provide prompt service.
Keeping customers waiting, particularly for no apparent reason, creates unnecessary
negative perception so quality.
III. Assurance: the knowledge and courtesy of employees as well as their ability to co
convey trust and confidence, the assurance dimension the factures, competence to
performer effective best interest at.
IV. Empathy: The provisions of caring, individualized attention to customer’s empathy
include the following factors approachability, sensitivity, and effort to understand
the customers need.
V. Tangible: the appended of physical qualities, equipment, personnel, and
commencer motives (Steven Baron and Kim Harris 1995)

2.6. Electronic Banking Technology or E-banking

The e-banking can the provision of information about a bank and its services via a
home page on the www. Individual have started to used electronic banking, which
allow a customer to check their balance and process bill payment via a secure internet
connection and computer and available 24 hours a day. It is fast, convenient and is
easier than going to the bank to get funds. With electronic banking there are other
functions in IT that have involved such as:
o Automated Teller Machine (ATM)
o Direct deposit

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o Electronic bill payment and
o Advancement in information technology and banking has been important to the
industry and businesses (James, 1978).

2.7. Electronic Payment System

An electronic payment is any kind of noncash payment that does not involve a paper
check .Methods of electronic payment includes credit card, debit cards and the ACH
(Automated Clearing House) network. The ACH system comprises direct deposit direct
debt and electronic checks for all these methods of electronic payment. There are three
main types of transactions:
1. A one-time customer-to-vendor payment is commonly used when we shop online at an
e-commerce site, such as e-bay. The sit processes the credit card information and sends
an e-mail notifying that the payment we received.
2. In are occurring customers-to-vendor payment when buyers pay a bill through are
regularly scheduled direct debt from checking account or an automatic charge to credit
card.
3. To use automatic bank-to-vendor payment, buyer’s bank must offer a service called
online bill pay. By logging on to bank’s website, enter the vendor’s information and
authorize bank to electronically transfer money from buyers account to pay bill (Isaac,
1999).

2.8. Benefits of information Systems (IS)

Information systems provide several important benefits to an organization.
1. Better information
One of the main benefits of using information systems is better information.
Information systems store and process data, but they produce information which is the
basis for good decision making. When a business person makes a decision, he or she
selects one of several alternative course of action.
Better information is the principal benefit of money information systems in businesses.
For example, a customer database system provides better information to a sales
representative for deciding when to contact customers (ibid).
2. Improved Service
Another benefit of information system is improved service computer information
systems operate at any time of the day or night and process data faster than humans.

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Thus organization and businesses serve their customers and clients more conveniently
and efficiently with computer information systems than without them.
Customers see the effect of improved service from information system when they use
ATM system for their banking transactions, or when they purchase groceries or
merchandise from a store that uses a pos system. Consequently, Customers are able to
complete their transactions and do their shopping conveniently and quickly.

3. Increased Productivity

 Increased productivity means that it costs less for a business to provide its goods and
services , these cost savings may be passed on to the customer in reduced prices such
saving also result in increased profits for the business(Isaac, 1999).

4. Competitive Advantage

 A final benefit of information system is that they can provide a competitive advantage
for a business. A business has a competitive advantage when customers clearly prefer
its products over those of other businesses. Some businesses join a competitive
advantage by being the least expensive seller of particular products?
 Information systems can help a business gain a competitive advantage for example;
information system can help reduce the cost of production so that a business can have
the least expensive product.
 Others gain it by having products that are different from those of its competitors
(William,2001)

2.9. Societal Factors Affecting customer service

 Many factors caused the economic shift from manufacturing service. Increased
technology, globalization of the economy, deregulation, and many government
programs are a few factors that increased efficiency in technology
 The development and increased technological and computers have caused an increase in
production and quality. Two side effects have been an increased need for service
organization to take care of the technology and a decrease in manufacturing.

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2.10. Automated Teller Machine (ATM)

ATM are known by various casual term including automated banking machine, cash
machine, hole-in-the wall, cash point or Ban Comet (in Europe and Russia (ATM) is a
computerized telecommunications device that provides the customer of financial institution
with access to financial transaction in public space without the need for a human clerk or
bank teller. On most modern ATM, the customer is identified by inserting a plastic ATM
card with magnetic stripe or a plastic smart card with a chip that contains a unique card
number and some security information such as an expiration date and diversification of the
product line. To achieve this, banks rely on ICT to perform most function, from book
keeping to information storage and from

Core Banking System

a) Survive and Thrive

At SAP, we recognize the banking industry is under a transformation. A demand-driven

financial world means you have to respond quickly while watching your dollars and cents.
With our extensive industry-specific solutions portfolio, we offer the breadth and depth of
system functionality to help you attract and acquire customers, grow and manage customer
relations, and report and analyze results, so you can make the best decisions possible.

Read the white paper: Achieving Financial Excellence

Nonstop change seems to be the new norm for the financial services industry. However, a
rigid back office can prevent a financial institution from keeping pace in this ever-fluid
environment. Learn how solutions from SAP can provide a firm, yet flexible IT architecture
to help you move with and thrive in a dynamic financial marketplace.
Become more customer-centric, better manage finance, risk, and compliance, and reduce
cost and complexity with banking solutions from SAP, including applications, analytics,
mobile, cloud, and in-memory technology.

B) Risk Management

Banks continue to face large expenses due to multiple risk and compliance challenges –
sometimes from investments in IT solutions, but far too often in fines. Risk management
solutions can help reduce risk and make compliance easier and more efficient.

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c) Customer Experience

Customers expect different things from their banks than they did just a few short years ago.
Thanks to mobility and social media, banks are forced to become even more customer
centric.

Read the industry spotlight: Taking Business Analytics from Data Access to Customer
Insight
Learn how business analytics can help financial institutions capitalize on their mountains of
transactional data and mine it for a wealth of customer insights.

Read the white paper: “Achieving Customer Centricity in Retail Banking”

Based on interviews with 250 banks, this paper examines the importance of customer-
centric banking and how technology is a vital enabler of it.

D) Business Transformation

As the world of retail banking changes, so must the systems it runs on. Legacy systems
were built for a different era and, as a result, can be an obstacle to growth. Solutions from
SAP can transform how your bank performs with flexible architecture and component-
based systems that can grow with you.

Mobile banking

Is not only a new channel – it’s a competitive necessity. Today’s customers demand 24/7
access to their financial services institution and their financial data. Mobile banking
solutions from SAP can help your organization attract and retain customers by giving them
the access they demand.

Read the solution brief: Mobile Customer Banking

Learn about solutions from SAP for granting increasingly mobile bank customers access to
financial services, bill payment, and location-based offers.

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Telephone banking

is a service provided by a bank or other financial institution, that enables customers to

perform financial transactions over the telephone, without the need to visit a bank branch or
automated teller machine. Telephone banking times can be longer than branch opening
times, and some financial institutions offer the service on a 24 hour basis. From the bank's
point of view, telephone banking reduces the cost of handling transactions by reducing the
need for customers to visit a bank branch for non-cash withdrawal and deposit transactions.

Online banking (or Internet banking or E-banking) allows customers of a financial

institution to conduct financial transactions on a secure website operated by the institution,
which can be a retail or virtual bank, credit union or building society.

To access a financial institution's online banking facility, a customer having personal

Internet access must register with the institution for the service, and set up some password
(under various names) for customer verification. The password for online banking is
normally not the same as for telephone banking. Financial institutions now routinely
allocate customer numbers (also under various names), whether or not customers intend to
access their online banking facility. Customer numbers are normally not the same as
account numbers, because a number of accounts can be linked to the one customer number.
The customer will link to the customer number any of those accounts which the customer
controls, which may be cheque, savings, loan, credit card and other accounts. Customer
numbers will also not be the same as any debit or credit card issued by the financial
institution to the customer.

SWIFT

SWIFT is the Society for Worldwide Interbank Financial Telecommunication, a member-

owned cooperative through which the financial world conducts its business operations with
speed, certainty and confidence. More than 10,000 banking organizations, securities
institutions and corporate customers in 212 countries trust us every day to exchange
millions of standardized financial messages.

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2.11. ATM Services Quality

Use of ATM has become extremely popular among customers as convenient mode of
transactions. The technological innovation has transformed the banking business. Banks are
aggressively adopting this mode. The advantages of using ATM have given new impetus in
dimensions of service quality and banks are offering new choices to customers.

Literature review indicated different dimensions of ATM service quality. Lovelock (2000)
identified secure and convenient location adequate number of ATM, user friendly systems
and functionality of ATM. Davies et al, (1996) examined the factors that influence
customer’s satisfaction about ATM service quality. These factors include costs involved in
the use of ATM, and efficient functioning of ATM. Rugim Bana and Iverson (1994)
studied the perceived attributes of ATM service quality and their marketing implication.
They found that convenience, reliability and ease of use are important aspects where as
complexity and unreliability (risk) were causes of dissatisfaction.

2.12. The Telephone in Customer Service

Concept: The telephone is the second most important link in customer service. Not all
service via technology, and specifically the telephone, is delivered from a call center.
Although many small and medium sized organizations have dedicated customer’s service
professionals to staff their telephones, others do not remember that in order to provide
quality customer service everyone in the organization has to take ownership for customer
satisfaction. Modern businesses rely heavily on the use of telephones to conduct day to day
operations and communicate with internal as well as external customers. Effective use of
the telephone saves employee time and effort. Employees no longer have to take time to
physically travel to another location to interact with customers and vendors (ibid)

2.13. Advantages of Telephone Customer Service

Some of the advantages are:-

1. Convenience: Sales information exchange, money collection, customer satisfaction

surveys and compliant handling are only a few of the many tasks that can be effectively
handled using the telephone and related equipment.
2. Ease of communication: Although some countries have more advanced telephone
system and capabilities than others you can call someone in nearly any country in the
world.

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3. Economy: Face-to-face visits or sales calls are expensive and can be reduced or
eliminated by making contacts’ over the telephone as opposed to traveling to a
customer’s location. With competitive rates affected by many telephone companies
since the circulation of the telecommunication industry year ago, companies and
customers have many options for calling plans.
4. Efficiency: You and your customer interact without being delayed by writing and
responding. Telephone usage is so simple that it is taught to kindergarten and grade
school children (Dale and Oakland, 2000)

2.14. Electronic Billing Presentment and Payment

In 2007, for the first time the number of bill payments made online exceeded the number of
physical characteristics written (Fiserv, 2007). In the $ 13.8 trillion U.S. Economy with a $
9.7 trillion consumer sector for goods and services, there are a lot of bills to pay. No one
knows for sure, but some experts believe the life-cycle cost of a paper bill for a business,
from point of Electronic billing presentment and payment (EBPP) systems are systems that
enable the online delivery and payment of monthly bills, EBPP services allow consumers to
view bills electronically and pay them through electronic funds transfers from bank or
credit card accounts more and more companies are choosing to issue statements and bills
electronically, rather than mailing out paper versions. But even those businesses that do
mail paper bills are increasingly offering online bill payment as an option to customers,
allowing them to immediately transfer funds from a bank or credit card account to pay a
bill somewhere else (Issac,1999).

2.15. Advantages and Disadvantages of Technology

Like anything else related to customer service, technology offers advantages and
disadvantages. The following sections briefly review some of the issues resulting from the
use of technology (Dale and Oakland, 2000).

Organizational Issues

Distinct advantages accrue to organizations that use technology through the use of
computers. Software, and various telecommunication device, a company can extend its
presence without physically establishing business site and without adding staff. he
challenge for organizations is to have well-maintained state-of the art equipment and
qualified competent people to operate it. In a low unemployment era, this can be a

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challenge and can result in disgruntled customers who have to wait on hold for service until
an agent is available to help them (ibid).

Employee Issue

Technology brings many benefits to employees. The greatest benefit is that it frees them
from mundane tasks such as taking information and mailing out forms, information, or
other materials. Technology also allows employees to serve more people in a shorter period
of time and to do it better. The down side for employees is that many organizations see
technology as away to reduce staff costs and overhead related to employees, and they
therefore eliminate positions moreover, as mentioned before, new technology requires new
training and skills (ibid).

Customer issues

From a customer’s stand point, technology can be a blessing. From the comfort and
convenience of a home, office, car or any where a customer may have a telephone or laptop
computer, he or she can access products and services. Technologies allow a customer to get
information, order products, have question about billing or other matters answered, and
access virtually anything she or he wants on the world wide web, However, this
convenience comes with a cost to customers, just as it does for organizations. Also,
technology does not always work as it is designed to (ibid).

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Chapter three
3. Research Methodology

Introduction

In the last chapter of my research proposal I will show the methodological aspect of
my research. The section begin with the description of my research area about Bule Hora,
consequently the research design, Furthermore the source and type of data, will discuss.

3.1. Description of the study area

The study area will conduct in Bule Hora is a town,separet woreda in southern Ethiopia
and administrative center of West Guji Zone which is Located in the Oromia regional state.
Bule Hora is located at the south East of Adiss Abeba distance of 453km.

Hibret bank is privately owned Share Company initially; it was established by 486 founder’s share
holders with capital of birr 60 million and aphid.

Up capital of birr 30 million. It was licensed on April 10, 1997, and started banking operation on
June 11, 1997.Hibret bank has a network of 90 branches of which are 43 are in Adiss Abeba. And
the remaining 47 are located in other cities and town of the country. From this Bule Hora is the one.

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3.2. Research Design

To conduct this study, I will apply descriptive research method. Because descriptive
method was used to describe the events that will happen and characteristic about the
application or phenomena that being under study.

3.3. Target Population

The population of the study will focus on customers and employee of Hibret bank. Because
of the researchers get more information from customers and employees of Hibret bank.

3.4. Sampling Technique/Procedure

The type of sampling will be use for this study was unknown population sample size
determination formula for the customer of Hibret bank. The total population of the study was
unknown for customers and it is difficult to count the customers, so from those populations the
researcher will take 43 respondents as a sample size by using unknown population sample size
determination formula.

The researcher used 90% confidence interval, estimated standard deviation 0.5 and 5% maximum
allowable error.

 Z / 2 2  2   1.65  0.2  2
 
 E 2    0.05   43
n=   , (Source: Blue Man, elementary Statistics, 11
th
edition.)

And the Hibret bank in Bule Hora branch it has 15 employees. Therefore the researcher
takes a sample all of the employees by cense method for this research including manager
of the bank.

3.5. Data type and Source

The researcher will use both the primary and secondary data for the fulfillment of the
objectives that was mentioned earlier. The primary data sources will be collect through the
use of close ended questionnaire. Also secondary source of data consists of published

materials which are available in the websites and also with the organization itself.

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3.6. Data Collection method

The data will collect by taking sample of entire populations within the organizations that
means from the employees and target customers of the bank by the form of questionnaire
and interview.

3.7. Data Analysis and interpretation

For this study, the researcher will use descriptive analysis. In order to analyses and interpret
the data the researcher will use tabulation and percentage. From tabulation is ready to
process data would arrange orderly in the table and other summary format. The percentage
will be use the data is expressed relative to relevant variables to as to compare tends
overtime and among categories.

Table one(1).budget schedule

No Description Quantity Cost/unit Total cost

1 Paper 1pcs 600 600

2 Pen 2 25 50

3 Transport 300

4 Telephone 150

5 Flash 1 360 360

Total 1460

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Table two. Work schedule
Activities Time of work Place of work Responsible for Evaluation Remark
task criteria
Research place March 1-10 Bule Hora Chaltu ✓
selection
Problem March 11-20 Bule Hora Chaltu ✓
identification
Title March 21-30 Bule Hora Chaltu ✓
submission
Title approval April 1-10 Bule Hora Chaltu ✓
Chapter one April 11-15 Bule Hora Chaltu ✓
preparetion and
writing
Writing April 16-21 Bule Hora Chaltu ✓
reviewof
literature
Prepare and April 22-26 Bule Hora Chaltu ✓
write metrology
First draft April 27-31 Bule Hora Chaltu ✓
submition
Data collection May 1-8 Bule Hora Chaltu
Data May 9-14 Bule Hora Chaltu
organizing
Data analsyzing May 15-20 Bule Hora Chaltu
Preparetion of May 21-25 Bule Hora Chaltu
final study
Submission of May 26-30 Bule Hora Chaltu
final project
and preparing
to defense

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Reference
 Christopher. G, Jones, technology and customer service, 3rd ed, 2005.
 Darymple, marketing management strategy and cases, 7thed, 1976.
 Donnelly, international business, 9thed, 2004.
 Fortune, volume 12 No. 618, Sunday, March 4, 2012...
 King, Technology and innovation management, 5th ed, 1999.
 Kotler and Armstrong, principle of marketing, 8thed 1996.
 Kotler, marketing an introduction, 5th ed, 1999.
 Love Lock and Wirtz, Service Marketing: People, Technology and Strategy .5th
Ed. 2000.
 William, Basic marketing, 13th ed. 2001

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