Wachemo University

College of Business and Economics

Department of Marketing Management
Assessment of Service Delivery on Customer Satisfaction (A Case
study of Commercial Bank of Ethiopia Hosanna Branch)

A Research report submitted in partial fulfillment of the requirement for the award
of the degree of Bachelor of Arts (BA) in Marketing Management

Name ID

1. Rahel Melkamu WCU/R/1400763

1
 Advisor: Mr. Mebratu Belihu (MBA)

March, 2022 Hosanna, Ethiopia

Declaration
Declaration of the Final research report

I hereby declare that all the corrections and recommendation suggested by the board of
examiners are incorporated into the final thesis entitled “assessment of service delivery on
customer satisfaction Commercial bank of Ethiopia (in case of hosanna branch), by Rahel
Melkamu .
 COLLEGE OF BUSINESS AND ECONOMICS
WACHEMO UNIVERSITY
ADVISORS’ APPROVAL SHEET
This is to certify that the thesis entitled “assessment of service delivery on customer satisfaction
in Commercial Bank of Ethiopia (in case of Hosanna branch)” submitted to partial
fulfillment of the requirements for the Bachelor of art degree in Marketing Management,
department of Marketing Management, and has been carried out by Rahel melkamu , Id. No.
1101702/11, under our supervision. Therefore we recommend that the student has fulfilled the
requirements and hence hereby can submit the thesis to department of Marketing Management.

Mebratu, Belihu (MBA) ______________ ______________

Name of Principal Advisor Signature Date
 Acknowledgement
This thesis is a product of the energy, efforts and thoughts of various different people that I had
the pleasure to work with during the past few months. My greatest appreciation goes to my
advisor Mebratu Belihu.(MBA) for his continual font of ideas, stimulating suggestions,
constructive and very supportive comments, and encouragement helped me in all the time of
research. I am very thankful to all of my families who were in my side since my childhood. My
greatest appreciation is goes to my mother, for her moral and material support throughout my
study. I am also very grateful commercial bank of Ethiopia Hossana branch employees, without
their help and cooperation this study would have not been become visible. I am indebted to
extend my heartfelt praise and gratitude to all of my friends. And for many people which I
cannot mention their names here but contributed a lot to successful completion of this research.
Finally, I am indebted to the works and authors that I used in this research and to several
anonymous referees whose works added value to this thesis in one way or another.

I Thank Almighty God for all the blessings bestowed upon me!
Acronyms
CBE = Commercial Bank of Ethiopia
CRM= Customer Relationship Management
NBE= National Bank of Ethiopia
PMO= Project Management Office
TQM= Total Quality Management
Contents
Declaration..................................................................................................................................................2
Acknowledgement.......................................................................................................................................4
Acronyms....................................................................................................................................................5
Abstract.......................................................................................................................................................9
CHAPTER ONE........................................................................................................................................10
INTRODUCTION.....................................................................................................................................10
1.1 Background of the Study.................................................................................................................10
1.2 Statement of the Problem.................................................................................................................12
1.3 Objective of the Study.....................................................................................................................13
1.3.1 General Objective.....................................................................................................................13
1.3.2 Specific Objectives of the Study...............................................................................................13
1.4 Research questions..........................................................................................................................14
1.5 Significance of the Study.................................................................................................................14
1.6 Scope of the Study...........................................................................................................................14
1.7 Limitation of the Study....................................................................................................................15
1.8 Organization of the study.................................................................................................................15
CHAPTER TWO.......................................................................................................................................15
Review of Related Literature.....................................................................................................................15
2.1 Definition of customer value and satisfaction..................................................................................15
2.2 Customer Expectations....................................................................................................................16
 2.2.1 Delivery high customer value...................................................................................................17
2.2.2 Measuring satisfaction..............................................................................................................17
2.2.3 Customer Lost analysis.............................................................................................................17
2.3 The nature of high performance business........................................................................................18
2.4 Attracting customers........................................................................................................................18
2.4.1 Need for customer retention......................................................................................................19
2.4.2 Customer Relationship..............................................................................................................19
2.4.3 Forming strong customer bond.................................................................................................19
2.4.4 Customer profitability...............................................................................................................20
2.5 Total Quality management (TQM)..................................................................................................20
CHAPTER THREE...................................................................................................................................22
Research methodology..............................................................................................................................22
3.1 Description of the Study Area..........................................................................................................22
3.2 Research Design............................................................................................................................22
3.3 Sources of Data................................................................................................................................23
3.4 Methods of Data Collection.............................................................................................................23
3.5 Sampling Design.............................................................................................................................24
3.6 Methods of Data Analysis................................................................................................................25
CHAPTER FOUR.....................................................................................................................................26
4.1 Data Analysis and Interpretations (presentation).............................................................................26
4.1.1 Personal information.................................................................................................................26
4.1.2 Evaluation of the bank modern equipment................................................................................27
4.1.3 The attractiveness of the bank physical facilities......................................................................28
4.1.4 The handling technics of the bank to its customers by delivery service....................................29
4.1.5 Employees of your bank gives your prompt service.................................................................29
4.1.6 Willingness of the bank to help its customers...........................................................................30
4.1.7 The employee’s politeness, respect and friendliness with customers........................................30
4.1.8 The level of customer satisfaction gets from service given by bank.........................................31
4.1.9 The acceptance of bank manager for customer complaints.......................................................32
4.1.10 the organization security on service delivery..........................................................................33
CHAPTER FIVE.......................................................................................................................................34
5.1 Summary, Conclusion and Recommendation..................................................................................34
 5.2 Summary.........................................................................................................................................34
5.3 Conclusion.......................................................................................................................................35
5.4 Recommendation.............................................................................................................................35
Reference...................................................................................................................................................37
APPENDIX- A..........................................................................................................................................39

Abstract
The study was focused on the service delivery and its contribution on customer satisfaction in
case of commercial bank of Hosanna Branch. The study was benefited to finding to knowing
their customer statement of problem if service delivery performance full’s short of Expectation
the customer dissatisfied. The major problem associated with customer satisfaction is delay
decision making to apply a new technological service delivery. The main objective of this study
was to assess service delivery and its contribution on customer satisfaction commercial Bank of
Ethiopia hosanna Branch. To conduct this study the researcher would be used both primary and
secondary sources of data. The researcher used both closed and open ended questionnaires to
collect information from customer and employees. The data analysis by using table, number and
percentage. Finally based on the finding researcher was forwarded relevant applicable conclusion
and recommendation short coming of service delivery and customer satisfaction of the bank.
 CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
Bank is service based businesses, delivering competitive service to their customer’s plays vital
role to build up the reputation of the organization. Thus service of a bank is considered as one of
the variable to compute it’s over all new service development process(The & Journal, 2000).
Financial sector plays a central role in the growth and development of the economy through
mobilization and deployment of financial resources (Dhliwayo, 2014). In this regard, banks
accept deposits from individuals, corporations and public institutions and thereby lend these
funds by either making loans or buying securities (Pamela and Frank, 2010). In most countries,
banks are the most important financial intermediaries. The intermediary function basically brings
together lenders and borrowers of money, which is linking savings and investments. Besides,
banks play an important role in allocating money across sectors of the economy and indirectly
influence the nature of economic growth (Marcel, 2001).

New service development has its root into customer satisfaction. As competition between service
providers is becoming stiff, organizations started to give more emphasis to service quality so as
to improve customer satisfaction and expand their customer base. In this regard, new service
development has been accepted as an important tool to measure service quality and examine
compliance with standards so as to ensure customer satisfaction(Martovoy & Mention, 2014).

The Commercial Bank of Ethiopia has developed a variety of deposit mobilization strategies to
meet its stretched financial targets and ultimately satisfy the economy’s massive need for
financial resources(Uvaneswaran, 2017). CBE has been conducting new service development
for the last two years. Banks need to have stable source of funds required to meet credit needs of
their customers that sustains their roles in the economic development of an economy. One typical
issue that banks need to address in their cash flow management jobs is determining the amounts
of liquidity (proportions of funds) needed on hand to meet potential withdrawals during any
given business day(Mauri, 2014).

Banking Industry has to be good at developing new service. It must also manage them in the face
of changing tastes, technologies, Interest rates, exchange rate and competitions. Every new
service seems to go through a life cycle. It must go through several phases, and eventually die as
new products that better serve consumer needs came along(Mauri, 2014).

Given the rapid changes in consumer states, and competition, banks must develop a steady
stream of new products and services. As a matter of fact, bank can obtain new service in two
ways; through Acquisition that is buying a whole distress bank(s) a license to other bank
services. And through New service development in the banks own research and development
department. As the cost of developing and introducing major new products have claimed, many
large banks limited(Mauri, 2014)..

However, new product implies original products improvements, products (services) modification
and new method of granting loans, Financing, customer’s advice interest rate, mode of payment
etc. that the bank developed through its own research and development. Importantly, the recent
suffering condition in compared with the global technological and, economic changes has made
the Ethiopia banking environment very competitive and dynamic. The development has led to
selective purchase or patronage of product and services by customers, especially those that are
still skeptical about the longevity of the banks and viability of their product. In this regard,
marketing as an essential elements of communication mix has becomes the sought are strategy
not only to already existing clients but also to non-potential one by any enterprising bank in the
country today when a promising idea come the bank legal admin and foreign department or
sections will team up to natures of the products, protect and member stays with such product
until it has succeeded(Martovoy & Mention, 2014).
However, quality banking services is one of the marketers major positioning tools. Quality has
two dimensions level and constituency. In developing news, the bank must first choose a quality
level in the target means, market and any bank that fails to introduce and maintain new products
as the world changes may have itself to blame as regards loose of customers fame. It position in
the community of financial industry and consequently may be liquidated or distress. Hence
introduction of new products is the strength of the bank and the ability to maintain it at the given
profit is the success of the bank (Martovoy & Mention, 2014).

Commercial banks adopt different strategies to combat stiff competition from financial and non-
financial sectors. They introduce new and improved way of delivering their service to customers.
Banking business become more competitive and innovative to satisfy their customers by
delivering new service in additional to their traditional deposit and loan services. Banks
traditionally play an intermediate role between the savers and investors channeling the surplus
fund transfer to the demanders who has a shortage of funds. Now a day’s plastic money society
emerges mostly in developed world card banking, mobile banking, internet banking and other
technological aided banking offered by many commercial banks in the world (Awais & Tipu,
2014)
Commercial Bank of Ethiopia has a vision to become a world class Commercial Bank by 2025
by providing the products what world class commercial banks offered. Commercial Bank of
Ethiopia introduced many banking products and to customers since its establishment; the bank is
a pioneer introducing Visa card, Mobile Banking, Internet Banking and other banking services to
the women and youth in addition to the deposit, loan and international banking services.

1.2 Statement of the Problem

New service development in banking sector is said to be applicable to all spheres of life, for this
fact, the banking industry is not an exemption. For the achievement of the overall corporate
objectives of prosperity, growth and consciously structure their services in such a they cater for
the financial needs of not only the current customers but also the prospective customers(Central,
2005).Despite the obvious problems in service technical development, there is no experience
utilizing a Project management office (PMO), which should provide valuable assistance on all
administrative, operational, or technical issues. There are two main reasons for that: (i) by
default the PMO already owns specialized knowledge for effective project management in all
their aspects, and (ii) the PMO, as central unit for resource management should have insight in
competencies and availabilities of shared resources, which helps in planning parallel projects.
Overlaps with other units in product development and communication(The & Journal, 2000)
Service development and communication are limited to particular bank areas. If there is a
centralized product development, then also centralizing promotion and communication makes
sense, but if the product development is not centralized, which is the case in CBE, then
associated promotion and communication services cannot be centralized. This is the case in
CBE, because e-payments, contrary to some other departments, have product and service
development, brand promotion, and communication (both internal and external) completely
independent of (Mauri, 2014).
Many studies in related to new service development process in financial institution used only
quantitative research approach, but in this study will use both quantitative and qualitative
research approaches. This is the main gap in the research to get reliable result. Commercial
Bank of Ethiopia has a vision to become a world group Commercial Bank by 2025 by providing
the new products and service what world level commercial banks offered. In fact Commercial
Bank of Ethiopia introduced many new banking products and services to customers since its
establishment; the bank is a pioneer introducing Visa card, Mobile Banking, Internet Banking
and other banking services to the women and youth in addition to the deposit, loan and
international banking services. However, there are no adequate studies conducted to analyze new
service development process of the bank. Hence, this study is designed to bridge this gab (CBE,
2018).

1.3 Objective of the Study

1.3.1 General Objective
The main objective of the study is Assessment of Service Delivery and its contribution on
Customer Satisfaction (A Case of Commercial Bank of Ethiopia hosana Branch)

1.3.2 Specific Objectives of the Study

This study is aimed to address the following specific objectives.

1. To determine the impacts of service Delivery on customer satisfaction

2. To identify the customer satisfaction.
 3. To investigate the competence of the Employees
To assess the responsiveness of the bank

1.4 Research questions

1. What are the impacts of service Delivery on customer satisfaction?
2. What are the levels of customer satisfaction
3. What looks like the competence of the Employees
4. What kinds of responses taken by the bank?

1.5 Significance of the Study

The results of this study expand the knowledge generated by previous research on the field of
new service development process. The findings can be used to enhance corporate management
and organization culture of employee’s involvement so that the service is improved from the
bottom level. In addition, subjects used in this research come from a particular industry and other
researchers can apply the same methodology used by the researcher in collecting data and
analyzing. Furthermore, at the empirical level, the ideas suggested by the researcher can
contribute to develop of new service development process.

In a broader view; the findings of this research will beneficial at national level. The banking
performance industries are known to be very important for both GDP and labor force of the
country.

From a practical view point, the management of firms is able to apply the results to encourage
company’s ‟new service development process of marketing effectiveness and face the
competitive market in a better way.

1.6 Scope of the Study

Conceptually, the study examined and address to the service delivery Therefore; other factors
which may have an influence on customer satisfaction are outside the scope of this study.
Finally, this study will quantitative which tested the fit of the structural and measurement model
of Assessment of Service Delivery and its contribution on Customer Satisfaction (A Case of
Commercial Bank of Ethiopia hosana Branch). Lastly the study covered from august 2021 to
march 2022.
1.7 Limitation of the Study
The study focus only one branch of commercial bank hosana branch that may not be represents
other branches. Beside this study the student’s researcher faced with various problems such as
lack of written documents, Recorded data and magazines that related the study.

1.8 Organization of the study

This study was containing three chapters Chapter one discuses introduction of study, back
ground of the study, background of organization statement of problem, objective of study, scope
of study significance and limitation of study and organization of the paper chapter two deals
literature review definition and some elements of service deliver chapter three discussed about
research methodology of the study.

CHAPTER TWO

Review of Related Literature

This chapter deals about in details how companies can go about winning customer and
outperforming competitors. The answer lies in doing better job of meeting or Exceeding
customer Expectation. Customer accompanied are adopt at building customer not just product
they are skilled in market engineering. Not just product engineering. Marketing is only one factor
that attracting and keeping customers. This chapter describes and illustrates the philosophy of
customer focused firm and value of marketing (source principles of marketing)

2.1 Definition of customer value and satisfaction

Service is perishable It mean that perish ability of service is that the service cannot be stored in
ware house or in ventured (Ibit, 2001p-97)
Service Quality Research has been shown that evaluate customer service of quality by different
components: -(Joey, etal, 2001)

Reliabilities Is the ability to perform the service dependable accurately and consistency reliable
is performing the service right at first time. (
Respondent Is the ability to provide prompt service the ultimate in responsiveness is offering
service 24 H/7D in a weak.

Assurance Is the knowledge and courtesy of employees and ability to trust.

Empathy Is carrying Individualized attention to customers, affirms whose Employees regime

customers, call them by name and learn their customer specify requirement are provided. (mc
Daniel Lamb 202, p3 47)

According to peter Ducker observed that the company first task is to create customer however,
customer face a vast array product and brand choices price and supplies. Customers are value
maximizes which in the bound of search costs and limited knowledge ability and income.

Customer perceived value is the difference between respective customer’s evaluation of all
benefit and the cost of an offering and the perceived alternative. Total customer value is
perceived monetary value of the bundle of Economic functional and psychological benefit
customer Expect from a given market offering (kotler 1997-60).

The link between satisfaction and customer loyalty is not proportional. Suppose the customers
satisfactions are likely abandon the company and even the company and the bad of mouth to it
higher satisfaction or delight creates the semifinal bond with the brand or company on just
original preference (ibid 1997-328).

2.2 Customer Expectations

How to buyers form their expectations? From last buying Experience friends and associated
advices and marketer share information and promotes. If marketed raise Expectation is too high
the buyer is likely to be disappointed. However, if the company sets Expectation too low, if want
to attract enough buyers it will satisfy those who do buy. The customer decisions to be loyal as to
be detect is the sum of many small Expense to add up to customer loyalty companies need to
create branded customer Experience (kotler 1997-62).

2.2.1 Delivery high customer value

The key to generating high customer loyalty is to deliver customer valve. According to Michael
Lanning, delivering profitable valve a company must design comprehensively superior valve
proposition aimed at specific market segment backed by superior value. The value proposition
consists of whole cluster of benefit that the company promises to deicers it is more than the case
positioning of the offering. For customer centered companies customer satisfaction is both goals
and marketing tools companies that achieve high customer satisfaction rating market sure that
their target market takenout (Kotler’s 1997-63)

2.2.2 Measuring satisfaction

Although the customer centeredfirm seek to create high customer satisfactory that is not its main
goals. If the company increases customer satisfaction by lowering its prices of increasing its
service the result may be lower profit,

There are tool for, tracking and measuring customer satisfactory. These are: -

Compliant and suggestion system a customer centered organization makes it easy for
customers to register suggestion and compliant some customer centered complains. Companies
are also using website and E-mail for quick two – way communications

Customer satisfaction surveys The study show that customers are dissatisfied without every
four purchases, less than 50% will complain cost customer will buy less or switch supplies us.
Responsive companies measure customer satisfaction data. It also useful to additional question to
measure purchase intention and to measure likelihood or wildings to recommend the commend
company and brand others. (Alaziar, 2006)

Ghost shopping Companies can hire people to pose as potential buyers to report on strong and
weak points Experienced in buying the company’s brand and competitor product. These mystery
shoppers can test how the company’s sale personnel handle various stations mangers themselves
should leave their office from time. Entry company and competitor’s sales situations where they
are unknown and Experience firsthand the treatment they receive

2.2.3 Customer Lost analysis

Company should contract customer who have stopped buying or who have switching to another
supplier to learn why this happened it is also necessary to monitor the customer less rate.
Companies need to be special concerned with their customer satisfaction level because he or she
infract provide a tool for customer to spread bad word of mouth as Weill as a good word of
mouth to the rest of world (Ibid 1996p- 336).
2.3 The nature of high performance business
The consulting firm of furthers D. little proposed a model of the characteristics of high
performance bus

Stock holders Traditionally, most business focused on their stock holders but to days business
are increasingly that un less they nurture other stock holiday, customers, Employees, supplies,
Distributors, the business my never can sufficing profit for the stock hol

Process High performance companies are increasingly focusing on the need to have care
business such as new product development, customer attraction and retention and order fluffiest.
They are re-engineering that work how building cross functional Team responsible for process.

Resources carryout its business processes a company need resources labour power, materials,
machine, information and energy. Traditionally, company owned and controlled most of the
resource that inter their business, but this station is changing many companies today outsource
less critical resource if they can be obtained at better quality and lower cost (Kotler 1997 p-67)

Organizational culture Organization consisted of its structure, policy, corporate, culture of

which can become dies functional in originally changing business environment where as
structures and policy can be changed with difficult. The company culture is very hold or change
yet changing corporate cultures often the key to successful and implementing a new strategy
generally companies are setup to create and deliver superior customer value and satisfaction.
(kotler 13 edition p-412)

2.4 Attracting customers

Today customers are coming holders to place. They are smarter more price conscious more
demanding, less for giving and they are approached by many competitions with equal or better
offers. The challenge according to jotted gomers, it is not to produce satisfied customers several
compactors can do this challenge is to produce delighted and loyal customers. Companies
seeking to expand their profits and sales have to spend considerable time and resource searching
for new customers. To generate will reach new prospects. It sends direct managed makes In trade
show where they might find new lead and soon. (Kotler, 1997 p72)
2.4.1 Need for customer retention
Unfortunately, most marketing theory and practice center on the part of attracting new customers
rather than on retaining existing one. The Emphasis traditionally has been on making sales rather
than building relationship on resting and selling rather than caring for the customers afterward a
Company would be wise to measure customer’s satisfaction. High satisfied customers stays loyal
longer buys more as company introduce new its product and upgrade existing product task
favorable about the company and product payless attention to competing brand and less sensitive
to price.

2.4.2 Customer Relationship

The aim of customer relationship management (CRM) is to produce high customer equity.
Customer requite is the total of the discounted life time value of the firm customers clearly, more
overly the customer equity. (Kotler 1997-76)

Brand equity Brand equity is customer objective and intangible assessment of the brand above
and beyond its objectively perceived value. The sub drivers of bland equity are customer brand
awareness, attitudes, perception, advertising, public relation and communication to drivers (Ibid
1997-333)

Value Equity Value equity is customer’s objectives assessment of utility of offering based on
perception of its relatives to its cost. The sub driver of value equity is price and convenience each
industry a short defines the specific factor underlying each to improve equity.

Relationship equity It is customer tendency to strict worth and brand above objective and
subjective assessment of worth. Sub drives include loyalty programs, special recognition and
treatment programs and building programs.

2.4.3 Forming strong customer bond

According to Berry and permission have gone beyond these basic and identified there retention
building approaches.

Adding financial benefits The company can offer frequently programs and closer to the
company can be membership open to everyone who prices product and service or it can be
limited to an attain group or you these willing to small fee.
Adding social benefit Company persons work in increasing social bodies with customers by
including personalizing customer relationships

Adding structuralize The company my supply customers with special equipment of computer
linkage that helps customer orders and inventory.

According to Lester wonder man, one of the most absolute observes of contemporary marketing
suggests for clearing structural files with customer

2.4.4 Customer profitability

Is the best conducted with tools of an accounting technique of which called activity based cost or
(ABC). The company estimates all revenue that company form the customer less all cost. The
cost should not only cost of marketing and distributing products and service. But also cost of
taking phone class that from customer.

Company profitability Company must not only be able to creating absolute valve, but also high
valve relative to competitors at sufficiently low cost. Competitive advantage is a company’s
ability to perform one or more ways that competitor cannot or. Will not match the customer
valve and satisfaction which leads to high purchases.

2.5 Total Quality management (TQM)

Total quality management is an organization wide approach to continuously improve the quality
of the organization process, product and service.

Service is the result of applying human or mechanical effort to people or object service involved
a performance or an effort cannot be physically possessed. (Mc Daniel hair lamp-34).

Service has four unique characteristics that distinct those from goods service are intangible
performance. They are produced and consumed at the same time. They have greater variability
inputsinto output than goods they are perishable (

The basic difference between service and goods its that service are tangible performance.
Because their intangibility cannot be sensed service cannot be stored and often making purchase
quality of goods medical and consulting service are Example of service that exhibit credence
quality. (m.c, Daniel lamp 2001, p-345)
Service are produced and consumed simultaneously Goods are produced, sold and then
consumed. In contrast service are often sold, produced and consumed at the same time. In other
word, their production and consumption are separable activities. (

Service has greater variability Inputs and outputs they tend to be less standardized on uniform
that goods, standardization and training help to increase consistency and reliability. (James, et al.
2006)

CHAPTER THREE

Research methodology
3.1 Description of the Study Area
3.2 Research Design
This study will be used both cross-sectional and explanatory research design by which the study
is carried out at a point in time or over a short period. This helped to collect lots of data about
potential driving factors. Loss to follow-up is not a problem in cross-sectional study design.
Besides, it is relatively inexpensive and takes up little time to conduct and can estimate
prevalence of outcome of interest because sample is usually taken from the whole population
(Levin, 2006). The purpose of the study is to describe a population or a subgroup within the
population with respect to an outcome and a set of driving factors.
The explanatory research was employed to describe the characteristics of variables and the same
time determines the case and effect between dependent and independent variables (David, 1987).
This study was employ explanatory type with quantitative research design. Explanatory research
helps to explain briefly the effect of independent variable on dependent variable and explain
relationship among variables.

The study also employed both qualitative and quantitative approaches to understand the complex
driving factor of dependent variable. The study also requires detail understandings of everyday
activity and processes involved. Both approaches help the researcher to base knowledge claims
on pragmatic grounds (e.g., consequence-oriented, problem-centered, and pluralistic). It employs
strategies of inquiry that involve collecting data either simultaneously or sequentially to best
understand research problem (Cresswell, 2009).

Qualitative approach using words explanation rather than numbers quantitative or using closed-
ended questions and use open-ended questions qualitative interview questions (Creswell, 2009).

Quantitative research is the systematic and scientific investigation of quantitative properties and
phenomenon and relationship. It places greater emphasis on the numerical data and statistical test
to achieve conclusion that can be generalized and provides researcher with testing objective
theories by examining relationship between variable (Creswell, 2009).

The data collection also involves gathering both numeric information (e.g., on instruments) as
well as text information (e.g., on FGD) so that the final database represents both quantitative and
qualitative information (Cresswel, 2009). Methodological triangulation; obtaining data from
different sources, such as, questionnaire, documentations and focus group discussion helps to
bind diverse ideas about analysis new product development of commercial bank of Ethiopia and
assist in cross-checking the results, and consequently helps to increase the validity, reliability of
the findings and eases data analysis.

3.3 Sources of Data

To carry out this study both primary and secondary data will be utilized
Primary data will be obtained from field observation, questionnaires and focus group discussion.
Field data and information will be collected from analysis new product development of
commercial bank of Ethiopia will including in primary data.

Secondary data will collected from published and unpublished documents including annual
reports of National Bank of Ethiopia (NBE), annual reports of Commercial Bank of Ethiopia and
internet sources which were relevant to analysis Assessment of Service Delivery and its
contribution on Customer Satisfaction (A Case of Commercial Bank of Ethiopia hosana
Branch).

3.4 Methods of Data Collection

This study will be undertaken by using both primary and secondary data collection methods.
Accordingly, questioner survey, interview will be utilized as primary data collection methods.
Besides, downloading and reviewing annual reports of the offices as secondary data collection
techniques.

The survey is probably the best method to collect information from a group of people, which is
too large for direct observation. Surveys are also a great tool to see the views and attitudes of a
numerically large population (Babble, 2006).

A structured questionnaire was used to collect quantitative data through a household survey
involved household heads from the study area. The survey covered a total of 392 randomly
selected households. Data was collected on the demographic characteristics and driving factors
of land use and land cover change by preparing close ended and open ended questions.

Interview is a type of survey, which provides information through social and psychological
interaction between the interviewee and the interviewer. The fundamental nature of an interview
is obtaining information, while there is the possibility to control the truthfulness of the
information provided during the interview, also the interviewer’s and the respondent's personal
inter-actions provide a more complete understanding of the questions and responses. An
interview allows obtaining information about the opinions, beliefs, concepts and motivations.
(Kristapsone, 2008). Therefore this study will collect information about the opinions, beliefs,
concepts and motivations of respondent relation to Assessment of Service Delivery and its
contribution on Customer Satisfaction (A Case of Commercial Bank of Ethiopia hosana
Branch).

3.5 Sampling Design

This study used two step sampling specifically none random sampling first select district by
using purposive sampling and sample respondent by using convenience sampling. The researcher
also used convenience sampling technique to distribute questionnaire for the respondent. The
rationale behind employing convenience sampling method is because all customers are not
available in the bank at the same time and it is not possible to contact everyone who may be
sampled. Convenience sampling is used to obtain a sample of element because it is impossible to
estimate or calculate the probability of the selection for each element in the population (Kothari,
2004). It is an easy, quick, and cost-effective technique, (Lewis et al., 2009).

Principally, the sample size required depends on the required accuracy, the variance of variables
among the total population and the sampling technique. In practical terms the sample size is
often restricted by the available fund, time and human resource. It is often not feasible to study
the entire population because of the following reasons; the physical impossibility of checking all
items in the population, the cost of studying all the items in the population, the adequacy of
sample results, to contact the whole population would be time consuming.

In order to be able to accurately project the results of a survey question from the sample to the
entire population of the target area, the correct sample size must be used. Total population was
20000 in main branch. The sample size for this study will 392 Households head which calculated
by using (Yemane, 1967, cite by Polonia, 2013). Formula as below.

N
n
1  N (e ) 2

Where;

n= is sample size,

N= is the total number of population and

e= is sampling error

N= 20000,

e= (0.1),

Therefore n = N/ (1+N (e) 2) = 20000/ (1+20000 (0.05)2) = 392 respondents

In this study, all of these factors were considered when determining sample size. Sample size
was 392 households from total population of study area 20000. Therefore, the total sample size is
392.

3.6 Methods of Data Analysis

The collect data analyzed in terms of the study objectives already designed. The process of
analysis is carried out by using qualitative and quantitative analysis methods. In addition to this
the descriptive analysis is utilized. Computer systems such as, Microsoft excel, and Microsoft
word used for analysis of the data.

Qualitative data gathered from Field observation, interview and focus group discussion will be
compiled, organized, summarized and interpreted on the analysis new product development of
commercial bank of Ethiopia, national policies as well as the implementation of the new product
development of commercial bank of Ethiopia and their outcomes. The qualitative data which will
be collected by observation, interview were analyzed manually by categorizing texts in to themes
in the conceptual framework.
 CHAPTER FOUR
4.1 Data Analysis and Interpretations (presentation)
This chapter deals about data analysis and presentation that gathered from questionnaire
distributed to 392 customers of commercial bank of Ethiopia Hosana branch. Out of total 392
customers who received the questionnaires, 200 customers have filled the questionnaire properly
and returned while the remaining customers were not able to give their response. The following
table show the questionnaire analysis for customer returned response.

4.1.1 Personal information

No Item No of respondent In percent
1 Gender - -
Male 120 60%
Female 80 40%
Total 200 100%
2 Age - -
18-29 66 33%
30-60 95 47.5%
Above 60 39 19.5%

Total 200 100%

 3 Educational back Ground - -
Above first degree
First degree 26 13%
Diploma 72 36%
Secondary school 30 15%
Elementary school 20 10%
Illiterate - -
Total 52 26%
200 100%
As shown on the above table 1, 120 people (60%) of the respondents are male and 80 people
(40%) of the respondents are females. In item number two above the table 66 people (33%) of
the respondents are between 18-29 of age, 95 people (47.5%) are at the age of 30-60 and 39
people (19.5%) are above 60 years. Item number 3 indicate 26 people (13%) of respondents are
having with above first degree, 72 people (36%) have first degree, 30 people (15%) are diploma,
20 people (10%) of respondents are completed secondary schools and 52 people (26%) of the
respondent are illiterates.

According to the analysis made of respondents involve in this study majority of the respondents
are those who have completed their first degrees.

4.1.2 Evaluation of the bank modern equipment

Does your bank have modern Respondent
looking equipment?
In number In Percent

Strongly disagree 80 40%

Disagree 78 39%
Neutral 20 10%
Agree 20 10%
Strongly agree 2 10%
Total 200 1%

Table 2. Evaluation of the bank modern equipment

The above table shows that 80 people (40%) of the respondent said the accessibility of the bank
modern equipment are not good and they strongly disagree., 78 people (39%)of the respondent
said disagree,20 people(10%) of the respondents are neutral about the bank modern equipment’s
, 20 people(10%) of the respondents are agreed about the bank modern equipment’s 2 people
(1%) of the respondent are strongly agreed about the bank modern equipment’s. So from this
interpretation the researcher understand the bank modern looking equipment is not good enough
to satisfy the customers.

4.1.3 The attractiveness of the bank physical facilities

Does your bank has visually appealing physical Respondent
facilities? In number In present%
Strongly disagree 76 38%
Disagree 83 41.5%
Neutral 22 11%
Agree 18 9%
Strongly agree 1 0.5%
Total 200 100%
Table 3. The attractiveness of the bank physical facilities

As mentioned in the above table 76 people (38%)of respondents said they strongly disagree the
attractiveness or visually appealing physical facilities of the bank ,83 people (41.5%) of the
respondent are disagrees , 22 people (11%) of the respondents are neutral while 18 people(9%)
of the respondent strongly agreed about the visually appealing physical facilities .1 person
(0.5%)of the respondent said strongly agreed .

According to the above analysis made, the majority of respondents have does not agreed with
regards of the bank visually appealing physical facilities.

4.1.4 The handling technics of the bank to its customers by delivery service
Does the bank handle customer by delivery Respondents
service as customer need? In number In percent %

Strongly disagree 66 33%

Disagree 78 39%
Neutral 35 17.5%
Agree 21 10.5%
Strongly agree 0 0%
Total 200 100%
Table 4. The bank handles its customer by delivering service as customer need.

As the above table show that 66 people (33%) of the respondent said they strongly disagree the
handling of the customers of the bank by delivery service,78 people (39%) of the respondent
disagreed about handling of customers by delivery service as customer need ,35
people(17.5%)of the respondent are neutral while only 21people (10.5%)of the respondents
agreed the handling of the banks to its customers by delivery service as a customer need. so from
this interpretation the researcher understand the bank does not handle its customer by giving
service as customer need.

4.1.5 Employees of your bank gives your prompt service

does employees your bank gives you a prompt Respondents
service ? In number In present%
Strongly disagree 90 45%
Disagree 72 36%
Neutral 24 12%
Agree 10 5%
Strongly agree 4 2%
Total 200 100%
Table 5 the service of the bank
As the above table shows 90 people (45%) of the respondent said they are dissatisfied and they
are strongly disagree the service of the employees of the bank ,72 people (36%)of the
respondent said disagree while 24 people(12%) of the respondent were neutral about the
employees of the bank delivery of the service , only 10 people (5%) of the respondents are
agreed whereas 4 people (2%) of the respondents are strongly agreed as the employees of the
bank gives a proper service to the customers. According to the above analysis made majority of
the respondents strongly disagree by the service of the bank.

4.1.6 Willingness of the bank to help its customers

does your bank willing to help you? Respondents
In number In present%
Strongly disagree 72 36%
Disagree 90 45%
Neutral 24 12%
Agree 10 5%
Strongly agree 4 2%
Total 200 100%
Table 6 willingness of the bank to help its customers

As the above table shows 72 people (36%) of the respondents said they are strongly disagreed as
to the willingness of the bank to help its customers, while 90 people (45%) of the respondents
also disagreed willingness of the bank to help its customers, 24 people (12%) of the respondents
are neutral whereas only 14 people (7%) of the respondent agreed as to the willingness of the
bank to help its customers.
According to the above analysis 90 people (45%) of the respondents has not satisfied with the
willingness of the bank to help its own customers.

4.1.7 The employee’s politeness, respect and friendliness with customers

What about politeness respect and Respondents
friendliness of employee with the In number In percent %
customer.
Strongly disagree 50 25%
Disagree 44 22%
Neutral 22 11%
Agree 55 27.5%
Strongly agree 29 14.5%
Total 200 100%
Table 7 the employee politeness and friend lines with customers.
 200
180
160
140
120
100
80
60
40
20
0
Strongly Disagree Neutral Agree Strongly agree Total
disagree

From the above tables research conclude that 50 peoples (25%) of respondents said the
employees of the bank have not politeness and they strongly disagree,44 people (22%) of the
respondent also disagree,22 people(11%) of the respondents are neutral while 55 people (27.5%)
of the respondents are completely agreed as to the politeness of employees whereas 29
people(14.5%) of the respondents also strongly agreed as to the politeness of customers . .

According to the analysis made majority of respondents are said that the politeness, respect and
friendliness of the employee are good and agreed too.

4.1.8 The level of customer satisfaction gets from service given by bank
Does the customers gets at is faction from service Respondents
given by bank? In number In present%
Strongly disagree 60 30%
Disagree 55 27.5%
Neutral 44 22%
Agree 41 20.5%
Strongly agree 0 0(%)
Total 200 100%
Table 8 level of customer satisfaction given bank

As the mentioned in the above table 60 people (30%) of respondent said they are not satisfied by
the service of the bank and they strongly disagree, 55 people (27.5%) of the respondents also
disagreed as to the level of satisfaction while 44 people (22%) of the respondents are neutral,
whereas 41 people (20.5%) of the respondents agreed and satisfied about the services provided
by the bank.
According to analysis made above the most respondent get very low satisfaction from the service
delivery by the bank.

4.1.9 The acceptance of bank manager for customer complaints

Is the manager of the bank willing to accept the Respondents
customer complaints? In number In percent %
Strongly disagree 44 22%
Disagree 33 16.5%

Neutral 35 17.5%
Agree 60 30%

Strongly agree 28 14%

Total 200 100%

Table 9. Acceptance of bank manager for customer complaints

The table above show that 44 people (22.%) of respondents said the manger has not willingness
to accept the customer complaints and they are also strongly disagreed,33 people (16.5%) of the
respondents also said the managers of the bank has low willingness to accept customer
complaints and disagree ,while 35 people(17.5%)of the respondents are neutrals, 60 people(30%)
of the respondents are said the managers of the bank has medium willingness to accept customer
complaints while 28 people (14%)of the respondents said the managers of the bank has highly
accepted customer complaints.
According to the above table most of respondents said the manager ability of medium acceptance
of customer complaints.

4.1.10 the organization security on service delivery

How is the organization security on service delivery? Respondent
In number In percent %
Strongly disagree 39 19.5%
Disagree 10 5%
Neutral 26 13%
Agree 100 50%
Strongly agree 25 12,5%
Total 200 100%
Table 10 the organizational security on service security

Out of the total respondents 39 people (19.5%) said that the organization security on service
delivery is very bad and strongly dissatisfied, 10 people (5%)of the respondent are also disagreed
as to the bank security on service delivery while 100 people(50%) of the respondents are agreed
as to the bank security on service delivery and 25 people(12,5%) of respondents said that the
organizational security on service delivery is good and they strongly agreed .

According to the analysis made majority of respondents have a very good attitude to words
organizational security?
 CHAPTER FIVE
5.1 Summary, Conclusion and Recommendation
5.2 Summary
This study was aimed on service delivery and its contribution on customer Satisfaction in
commercial bank of Ethiopia hossana branch. The need for accomplishment of this study is to
assess satisfaction identify factors that affect customer satisfaction based on the result of
findings. Based on the finding and its results the researcher forwarded the following conclusion.

The major customer respondent is male and age group 30-60 and who have above first degree
and 18-29 while the employee’s respondents have first degree.

There is a good performance to their customers like performance of the infield, accuracy in
billing, keeping records correctly and performance of service punctually.

There is a good attitude in responsiveness that shows they give customer service in efficient way
and customer support.

Employees have a good skills and knowledge that is contact the employees with customers and
research capability the organization.

There is very good security in organization related with physical safety, financial security and
confidentially.

The organization has medium tangibility or physical evidence like physical facility tools or
equipment to provide the service.
Most of customer respondents get a good satisfaction from the service delivered by the bank.
The organization has good communication ability with customers. The organization also gives
additional service like, Technological Advanced machine like, visa card; customer services and
quality service attract customers than their competitors.
5.3 Conclusion
The study was conducted using five major groups of variables, namely Reliability, Tangibility
Assurance, Responsiveness and Empathy factors. The main supplementary research question
posed in the study was to investigate the most factors affecting the satisfaction level of customers
during service delivery. The question was investigated using empirical data collected from
customers of commercial bank of Ethiopia at hosanna branch. Moreover, the major conclusions
about these performance factors are presented hereunder:

In comparing to factors relating to tangableities, the study found that there is no good looking
modern equipment and the physical evidences or visually appealing physical evidences for
customers, the study argues that the banks should pay attention for their physical evidences and
modern technologies to retain their customers and to satisfy them.

With regard of reliabilities and responsiveness , the study identified that even the bank delivered
required services and tries to serve its customers still customers have complain about the
service which is provided by the bank and the way the bank serves its customer .

Finally, Empathy and assurance related factors were also identified as important factors for
customer satisfaction. The study concludes that the ability to managers to handle complains
which arise by customers is graded at medium level and the employees relationships
/approaching during service encounter is good too.

5.4 Recommendation
Based on the result of findings the researcher was conducted the following recommendation.

The organization should have attention that increases the number of female customer in the
organization.

Customer should have moderate reliability of employees by delivering initial service, accuracy in
billing and continuous quality desired by customers.

The organization should have a ware their employees to increase time lines of service, efficient
customers support and giving prompt service.
The employees should have continued past performance that related with knowledge and skills
that helps to know operational support to research their customers.

The organization should have increase training their employees that create interaction with
customers.

The organization should have taken effective security on physical and financial and protect
things that customer and their property.

The organization should have increase physical facility, equipment used to provide the service
and physical setting for customers.

the organization should have increase all service quality performance since the customers
satisfied to the performance of the organization.
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APPENDIX- A
WACHEMO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT MARKETING MANAGEMENT

Questionnaire prepared to assess service delivery and its contribution on customer satisfaction
(In case of commercial bank of Ethiopia Hosanna branch)

Dear respondents

This questionnaire designed to assess service delivery and its contribution on customer
satisfaction (in case of commercial bank of Ethiopia Hosanna branch). The questionnaire
prepared for the partial full fulfillment of the requirements of a ward of BA degree in marketing
management. Therefore, the information which expected from the respondents has a great role
only for the success of the research please assist me in giving and complete information to
present a representative finding on the study. Your participation is entirely voluntary and
questionnaire is completely anonymous.

Finally, I confirm you that the information that you share me will be kept confidential and only
used for the academic purpose. No individual responses will be identified as such and the
identify of person responding will not be published or released to anyone. All information will be
used for academic purpose only. Thank you in advance for your kind cooperation and dedicating
your time.

Thank you in advance for your kind cooperation.

 Instructions

1. Before you attempt to answer, please read the instructions

2. Encircle (number) for close-ended questions provided in part one.
3. Tick  for close-ended questions provided in part two
Part I Personal information
1. Gender 1, Male 2, Female
2. Age 1, 18-29 2, 30-60 3, Above 60
3. Educational background/qualification
1, above first degree 2, First degree 3, Diploma

4 Secondary 5, Elementary 6, Illiterate

Part II Question concerning service delivery and its contribution on customer

satisfaction.

The score levels are described as:

1- Strongly Disagree 2- Disagree 3- Neutral 4- Agree 5- Strongly Agree

Questionnaires Level of agreement

1 2 3 4 5
1. Your bank has Modern-looking equipment?
2. Your bank has visually appealing physical facilities?
3. The handling technics of the bank to its customers by delivery service?
4. Employees of your bank give your prompt service ?
5. Willingness of the bank to help its customers?
6. The employee’s politeness, respect and friendliness with customers?
7. The level of customer satisfaction gets from service given by bank?
8. The acceptance of bank manager for customer complaints?
9. The organization security on service delivery?