Abstract:
With the significant increase of the service sector in the economy, there is tight competition
in the area. The banking industry also one of the most dominant service sectors in Ethiopia.
This study was designed to assess the dimension of service quality and its effect on customer
satisfaction taking the case to awash bank S.C branches which are found in Addis Ababa;
bole sub-city (goro, mebrat hail and gerig Branches). So, the main objective of this study is
to examine the effects of service quality on customer satisfaction in the case of awash bank
branches by using the SERVQUAL model. Both descriptive and explanatory research design
was implemented by using quantitative and qualitative research approaches to assess the
service quality dimensions and their effects on customer satisfaction. This study used the
questionnaire and interview method to gather the primary data from the customers of the
sub-branches of the selected branches of awash Bank. Version 25 of SPSS was used to
analyze the data that were gathered. Additionally, a brief analysis of the regression output
reveals a statistically significant relationship between customer satisfaction and service
quality dimensions. This relationship is further supported by respondents' findings, which
indicate that the five service quality dimensions account for a greater portion of the
dependent variable's explanation. The correlation result revealed that tangibility, assurance,
reliability, empathy and responsiveness have a statistically significant relationship with
customer satisfaction. The regression analysis result indicates all service quality
dimensions have a positive effect and there is a statistically significant relationship with
customer satisfaction. As customer expectations were changed over time, bank managers
were advised to measure their customer expectations against the actual performance
regularly and handle complaints timely and effectively. So, the bank needs to improve the
quality of service to satisfy and attract unsatisfied customers
