CHAPTER THREE: Research Methodology

3.1 Introduction
This chapter will cover the method the research will be conducted to achieve the objectives
stated in chapter one. This study intends to examine the impact of responsiveness of firms on
customer satisfaction and retention. This chapter will cover the research methodology that
will be engaged for the study. It will cover the sample design process, sampling technique,
method of data collection, data analysis method, and validity and reliability issues.

3.2 Research Approach

The study intends to use Quantitative research method to gather and analyze data. This is due
to the nature of the study topic which deals with human behavior that has both quantifiable
and quality related aspects. The study of customer satisfaction is aimed to be approached by
using the SERVQUAL model which uses dimensions like empathy and responsiveness,
which is the main interest of this study. In addition to that since the whole study is related to
consumer behavior the role different aspects of interaction and perception of the service are
going to be studied by using the data that will be gathered using the quantitative method. The
whole study intends to study the different items of the scale using the appropriate method for
the item of the scale.

3.3 Research Design

The study will be conducted on Awash International Bank. It will use an exploratory and
cross sectional research design. This is due to the fact that peoples’ opinions vary over time a
longitudinal study would be ideal since the topic of interest is human behavior, which is
complex and requires an extended attentive study, however, due to time and budget
constraints the study can only be conducted by using a cross sectional study for the time
being.

3.4 Data Type and the Source

This study will use both primary and secondary data sources. The primary data is collected by
using a structured sample survey that will be conducted on the customers of the company and
also an interview with a few employees of the company that have direct interaction with
customers like tellers and branch managers. The study will use a standardized service quality
questionnaire (SQQ) which is based on responsiveness and a customer satisfaction
questionnaire (CSQ). Both sections of the questionnaire will use the Likert scale to gather
primary data. And an extensive review of related empirical researches and studies will be
conducted in order to gather a well-organized theoretical and conceptual standing which will
make up the secondary data.

3.5 Sample Design

3.5.1 Population and sample size
The target population for this research will be residents of Addis Ababa, who are customers
and employees of Awash International Bank. Budget and time limitations won’t enable a
research including the entire population. As a result a sample is selected for the study from
the entire population putting in to consideration and ensuring equal and fair chance of
representation for the total population. Due to the nature of this project the sample size
selected is meant to reflect a section of the general population since the number of the bank’s
branches that will be considered in this study is few. Employees that directly interact with
customers will be interviewed and the strategy the company follows in customer interaction
decorum will be analyzed using. The eventual sample size is usually a compromise between
what is desirable and what is feasible. Since the population size cannot be precisely known
the research paper will use the following formula to find out the sample size.
Z 2 P(1− P)
S=
m2

Considering a confidence level of 95%

S= ¿¿

S = 384.16 ≅ 385
Therefore, the sample size used will be 385.

3.5.2 Sampling Technique

This study will follow the probability sampling technique. There are four types of probability
sampling. This are simple random sampling, stratified sampling, cluster sampling and
systematic sampling. For this study simple random sampling was chosen. This is because the
number, class (strata) that could be determined based on gender, demographic, religious and
other factors that will be involved don’t have any special impact on the study because
choosing one of this classes as a basis for the population of the study wouldn’t give the whole
picture. This is due to the fact that the study is cross sectional and the values that will be
analyzed by the study like emotional relation have the tendency to be changed from time to
time and from group to group. In addition to that, the sample considered for this method can
only be a representation of the population considered not the entire population, all customers
of Awash International Bank in this case.

3.6 Method of Data Collection

For this study the preferred method of data collection would be questionnaires and interview.
The questionnaire is intended directly for customers who are chosen randomly at the time of
their visit at the particular branch. As for the interview it will be conducted with the
employees of the branch on their interaction with the bank’s customers. This employees will
be selected based on their interaction level with customers. This includes frontline workers
like tellers, supervisors and branch managers.

3.7 Data Analysis Method

The study will use the SPSS (Statistical Package for Social Science) software to analyze the
data that will be gathered from the sources mentioned above. Since the research method used
is quantitative it will use the software to make all the necessary statistical analyses including
multiple regression analysis of the data gathered will be used in the study.

3.8 Validity and Reliability issues

In order to maintain the reliability and validity of the study certain measures will be used
during different stages of the research. During the data gathering process a standardized
questionnaire will be used and it is designed to follow the Likert scale in order to make the
responses more structured and formal. Cronbach reliability scale will be used to measure the
reliability of the final result.

3.9 Ethical Issues

All clearances and permissions will be obtained prior to the conduction of this research. The branches
of Awash bank that will be considered for the study will be notified in advance and formally
presented with documentation that describes the intent and objectives of the study before or during the
time of data collection.
All participants of this study will be appropriately addressed at all times of interaction and given all
the necessary information regarding the study they will willingly participate in. This study will in no
way be biased or discriminatory towards its participants or other people that will be around at the time
of interaction or any other time during the entire process and duration of the study. The subjects will
not provide their identity in order to maintain their anonymity and they will be assured that their
responses will be used as input of the study and there will be no implication on them that would affect
them in any way.

Questionnaire

This questionnaire is designed to measure the responsiveness of employees, the

impact of the workspace and overall customer satisfaction. The Likert five scale
method will be used in the method. The five scales are:
1 = strongly disagree 2 = disagree 3 = unsure 4 = agree 5 = strongly agree.
Please use (✓) to show your response for the questions listed below.

1 2 3 4 5

Responsiveness
Employees are always happy to offer assistance
Employees are polite and try to be understanding
The manner of employees is cordial and
courteous at the time of interaction
Employees perform the required services in a
timely and satisfactory way
The management is always available to hear
complaints and respond fast
Customer Perception
The bank’s office is tidy and looks pleasing
The attire of employees is appropriate and
appealing
The information I received through several
promotional platforms was true and described the
services well.
Promotional material like brochures, banners,
social media postings and advertisements are
attractive and look inviting.
Customer Satisfaction
The banks reception and service are satisfactory

The bank met most of the expectation you had of

the service you will receive
I was happy with the service I received
I am always happy when I come to this bank
because of the service quality
I choose this bank over other operators that give
similar service