WOLLO

UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT

ASSESSMENT OF SERVICE DELIVERY AND ITS IMPACT ON CUSTOMERS

SATISFACTION (IN CASE OF ABYSSINIA BANK, DESSIE BRANCH)

A RESEARCH PROPOSALSUBMITTED TO THE DEPARTMENT OF MANAGEMENT

FOR THE PARTIAL FULFILLMENT 0F THE REQUIREMENT OF BA DEGREE IN
MANAGEMENT

PREPARED BY; DESALE ALEMU

IDNO ; 0177/11

ADVISOR: SADAM M. (MBA)

MARCH, 2021

DESSIE, ETHIOPIA
 CONTENTS

Abstract ------------------------------------------------------------------------------------------------------Iv

Chapter One---------------------------------------------------------------------------------------------------1

1. Introduction -------------------------------------------------------------------------------------------------1
1.1 Background of the study--------------------------------------------------------------------------------------
1
1.2 Statement of the problem-------------------------------------------------------------------------------------2
1.3 Objective of the study-----------------------------------------------------------------------------------------
3
1.3.1 General objective ---------------------------------------------------------------------------------------------3
1.3.2 Specific objective ---------------------------------------------------------------------------------------------3
1.4 Significance of the study ------------------------------------------------------------------------------------3
1.5 Scope of the study---------------------------------------------------------------------------------------------3
1.6 limitation of the study-----------------------------------------------------------------------------------------
3
Chapter Two---------------------------------------------------------------------------------------------------4
2. Literature review----------------------------------------------------------------------------------------------4
2.1 An overview of customer satisfaction---------------------------------------------------------------------4
2.2 Customer satisfaction----------------------------------------------------------------------------------------
4
2.3 Type of customer----------------------------------------------------------------------------------------------4
2.4 Customer relationship management and customer equity -----------------------------------------------5
2.5 Customer perceived value and expectation----------------------------------------------------------------6
2.6 Service life cycle----------------------------------------------------------------------------------------------6
2.7 Characteristics of service-------------------------------------------------------------------------------------7
2.8 Service quality ------------------------------------------------------------------------------------------------8
2.9 The Gap model of service quality---------------------------------------------------------------------------9
2.10 .Conceptual
framework-------------------------------------------------------------------------------------11
 Chapter Three------------------------------------------------------------------------------------------------12
3. Data and methodology -------------------------------------------------------------------------------------12
3.1 Research design---------------------------------------------------------------------------------------------12
3.2 Source and type of data------------------------------------------------------------------------------------12
3.3 Target population ------------------------------------------------------------------------------------------.12
3.4 Sampling technique---------------------------------------------------------------------------------------- 12
3.5 Sampling size ---------------------------------------------------------------------------------------------- 13
 Abstract

The main objective of this study will be assessing service delivery and its impact on customer
satisfaction, in case of Abyssinia bank, Dessie branch. Data that are relevant to the study will be
collected from both primary and secondary sources. The primary data will be collected through
questionnaires and the secondary data sources will include organization’s manuals, journal,
thesis, articles, books, internet and etc. The target population of the study will be 287 customers
in the bank of Abyssinia, Dessie branch. But since it is costly, time consuming to distribute
questionnaire and get the relevant data and difficult to manage, the researcher will uses a
simple random sampling techniques. Therefore, from a total population of 700, the researcher
will selects 87 costumers as a sample. The researcher will use a descriptive method of data
analysis and also both quantitative and qualitative techniques will applied to collect and
analyzed the data. Finally, throughout the study, the researcher will be provided appropriate
and feasible solution, suggestion and recommendations that will enable the company to solve the
identified problem.
 Chapter One

Introduction

1.1. Background of the study

Customer satisfaction influenced by specified product or service features perception or product
andservice quality and price in addition personal state and situational factor such as family
memberopinions will also influence satisfaction(Philip,2006).
Customers all over the world have become more quality conscious. Therefore, customer
requirementfor this higher quality service has been increased (lec, 2005). Service sector such as
the bank obligedto provide excellent service to other customers in order to have sustainable
competitive advantage(www.wbiworld compro.com).
Customer satisfaction is the degree to which acustomer perceives that an individual’s, firm
orOrganization has effectively provided a product or service meets the customer needs in the
contextin which the customer is aware of and or using the product or service. The banking sector
inDeveloping countries for the last two decades (1990-2011) have been subject of several
regulatoryChanges resulting in developing increased computation among the bank.(www.wbi
Africa banksector.com)
Bank of Abyssinia Dessie branch is located at Amhara region south wollo zone Dessie town and
Established on May 19, 1998 as private commercial bank. The bank has continuo growth over all
itsasset and capital level with having the organization vision and mission. the bank has total
number ofemployee is 24 and the bank service offers current and saving account, time deposited,
term loners,over drafts, and letter of credit and so on.
There are a number of problem hindering the smooth delivery of the banking service. The
networkproblem for instance is the major obstacle in check clearing operations. Besides
temporary failures inthe system are not corrected immediately. Concerning to it, it is impossible
to tack in full heartilyabout the good will of the bank. Based and the above problems the
researcher going to conduct aresearch title on the impacts of service delivery on customer
satisfaction in the case of a Abyssinia bank, Dessie branch.

1.2. Statement of the problem

In increasingly competition environment, companies must be customer oriented and customer

satisfactions represent a modern approach for quality in business life and serve the development
aurally customer oriented culture and management. (Philip, 2006)
Measuring customer satisfaction is about profit and competitive advantage. To achieve long term
success in the market, term should monitor the customer satisfaction signals regarding product
service and relationship. (Eugenic, 2004)
There are a number of problem hindering the smooth delivery of the banking service. The network
problem for instance is the major obstacle in check clearing operations. Besides temporary failures
in the system are not corrected immediately. Concerning to it, it was impossible to task in full
heartily about the goal will of the bank.
Previously some researches were conducted on customer satisfaction measurement and service
delivery in Abyssinia bank, Dessie branch but unsolved problems are exist. With in this regard the
researcher will be interested to conduct study on the area and try to fill this gap.

1.3. Research questions

The researcher will try to addresses the following basic questions

1. Were employees of the bank would understand the specific need of their customers?

2. How Employees of Abyssinia would give prompt service forcustomers?

3. What Abyssinia would do when customers have problem?

1.4. Objective of the study
1.4.1. General objective
The general objective of this study will be to assess service delivery and its impact on customer
satisfaction (incase of Abyssinia bank, Dessie branch).

1.4.2. Specific objectives:-

In addition to the above general objective, this study will be addresses the following specific
objectives.

 To assess the employees of the bank how would they understand the specific need of
their customers
 To identify how Employees of Abyssinia would give a prompt service for their
customers
 To know the overall activities what the bank would did when customers have any
problem

1.5. Significance of the study

This study will be expected to be valuable for bank of Abyssinia to identify their weakness and
strength to provide service delivery system, and the organization will also figure out the impact
of service delivery on customer satisfaction. Again the result of this study will be served as
stepping stone for other researchers who will have interested to conduct study on customer
satisfaction.

1.6. Scope of the study

Even though Abyssinia bank has many branches, the focus of the study will be only on Abyssinia
bank particularly, Dessie branch. It will be very difficult to assess all branches due to lack of
information and far away from one another, financial problem (cost) and shortage of time. So,
the scope of the study will be to assess service delivery and its impact on customer satisfaction in
case of Abyssinia bank, Dessie branch which is 400 k/m away from Addis Ababa.
1.7. ORGANIZATION OF THE STUDY
The research paper will be organized in to five chapters .The first chapter will include
introduction of the study, back ground of the study, statement of the problem, research
questions, objective of the study(specific and general),significance of the study, scope of the
study and limitation of the study. The second chapter will deal about literature review. The third
chapter will describe research methodology and materials that will be employed on the research
such as research design, Method of data collection, data source, sample design and analysis. The
fourth chapter will focus on the analysis and interpretation of the study. The fifth and the last
chapter will summarize the results obtained from the various components of the study, draws
conclusion about the study area and provides possible recommendations.
 CHAPTER TWO

Literature review

2.1 AN OVER VIEWS OF SERVICE DELEVERY

According to Turban teal (2002) costumer service is of activates designed enhance the level of
customersatisfaction that is the filling that the product or service has meet the customer
expectation. "its importancevaries by product industry and customer defective or broken
merchandised can be exchange often only withreceipt and within a specified time frame from the
point view of an over or sales process engineering effortcustomer service plays an important roal in
organizations ability to generate income and revenue .A customerservice experience change the
entire perception a customer has of the organization. Customerservices has a task other than
common creation that involves interaction with customers in person or bytelecommunication or
automated process. Customer satisfaction and buildcustomer loyalty. Its Anactioncompanies can
take to add value to the basic good and service. (http:/en.wikipedia.org /wiki/ customer service).

2.2. Customer Satisfaction

Whether the buyer is satisfied after purchase depends on the offers performance in relation to
thebuyers’expectation. In general satisfaction is a person's felling of pleasure or disappointment
resulting fromcomparing a products perceived performance or out come in relation to his or her
expectation. If theperformance falls shorts of expectation the customer is dissatisfied. If performance
matches the expectation,the customer is satisfies. If the performance exceeds expectations, the
customer is highly satisfied or delighted Philip (2006).

2.3. Types of Customer

Customer plays the most significant part in business in fact the customer is the actual boss in a
deal and is responsible for the actually profit for the organization. Customer is the one who
uses the productand service and judges the quality of those product and service. In hence it
important for anorganization to retain customers or make new customers and flourish
business. Customers can be ofthe following types.
1. Loyal Customer:- These types of customer are less in numbers but promote more sales and
profit as accompanied to other customers as these are the ones which are completely satisfied
these customers revisit the organization over times hence it is crucial to interact and keep to
touch with them on regular basis and invest much time and effort with them. Loyal customers
want individual attention and that demands polite and respect t full response from supplier.
2. Discount Customer: - discount customer are also frequent visitors but they are only part of
businesses when offered with discounts on regular product and brands or they buy only low coast
product. More is the discount the more they tend forward buying. These customers are mostly
related to small industries or the industries focus low or marginal investments on products.
3. Impulsive Customer:- this costumers are difficult to convince as they want to do the business
in urge or caprices. They don’t have any specific item in to their product list but urge to buy what
they find good and productive at the point of time. Handling these customers is challenge as
they are not particularly looking for a product and want the supplier to display the entire useful
product they have in the filly in front of them. So that they can buy they like from the display.
4. Need Based customer:- these customers are product specific and only tend to buy items only to
which they are habitual or have a specific need for them. These are frequent customers but do not
become apart of buying most of the times so it is difficult to satisfy them. This customer should
be handled positively by showing them ways and reasons to switch to other similar products and
brand initiating them to buy these. These customers could possibly be lost is not talked
efficiently with passive interaction on.
5. Wandering customer:- these are the least profitable customers as sometimes they themselves
are not sure what to buy. These customers are normally new in industry and most of the time
visit suppliers only for conforming their need on products. They investigate features of most
prominent product in the market but do not buy any of these or so least interest in buying.
Http//:www.mgt study guide .com/types.

2.4. Customer Relationship management and Customer Equity

The aim of customer relation ship management (CRM) is reduce high customer equity.
Customer equity is the total of the discounted life time value of all of firm's entire customer.
Clearly the more loyal thecustomer higher the customer equity. Customer equity is total
combined customer life time value of thecompanies customers the more loyal the firms
customers usually a vast area of product and servicethat might satisfy a given need. How do
they choose is among those many marketing offers. Customermake choose based on their
perception of the value and satisfaction that various product and servicedelivery customer
gain from owning and using a product and the coast of obtaining the productcustomers from
expectation about the value of various marketing offers and by accordingly.
Customerexpectation are based on past buying experience from opinions of friends, markets
compotators information and promise.Philip(2006)

2.5. Customer perceived value and Expectation

Customer perceived value is the difference between the prospective customers evaluation of
all the benefits and all the coast of an offering the perceived alternatives. Total customer value
is the perceived monetary value of the bundle of economic financial and psychological benefit
costumer coast is the bundle of coast customer expect to incur in evaluating, obtaining, using
and disposing of the given market offering including monitory time energy and physic
coasts.Customer perceived value is thus based on the difference between what the customer
gate and what heor she gives for different possible choice. The customers get benefits and
assume coasts. Philip (2004).

2. 6. Service Life Cycle

The service life cycle consists of five states,

1. Introduction: - New service is often costly to develop and launch and may have fee thing
problems. People may be wary of trying something new specially new service whose
intangibility prevents prior evaluation sales there for tend to be slow and restricted to those
who like trying out new products or who believe they can gain status or benefits by having
it.
2. Growth: - By this time the service has been tasted and any problems have been resolved.
Buyers now starts to see the benefits that can be gained by using the service sales start to
increase greatly and these is essential for competitors to start entering the market.
3. Maturity: - Almost everyone who wants to by the service has now done so, which is particular
problem for service which are bought as a one competitors in the market has arisen.

4. Saturation: - Here there are two money competitors and no further growth in the market.
Competitors tend to complete with other on the basis of price

5. Decline: - With falling demand and new substitute products appearing organizations drop
out the market. Principle of service marketing, ARIAN and PALMER, (2002)

2.7. Characteristics of service

Service posses four in inherent characteristic not found in goods. Intangibility, perish
ability, inseparability and variability. These characteristics create challenges for service
to attract new customers and to keep current customer coming back. Service firms must
find ways to meet these challenges.

A. Intangibility: - Refers to the lack of tangible assets that can be seen, touched, smelled , heard
or tested prior to purchase.

B. Perishability: - The second characteristics of service are perishability, meaning the service
cannot be inventoried or stored.

C. Inseparability: - The third characteristic of service is inseparability. Inseparability is

simultaneous production and consumption of service. Goods can be produced and then sold at
alter time, service cannot.

D.Variability:-Refers to the sporadic or random levels of service quality customers receive when
they patronized service firm. Philip,(1999)
 2.8. Service quality
Because of the four unique characteristics of service, service quality is more difficult to define
andmeasure then is the quality of tangible goods. Business executives rank the improvement
of servicequality as one of the most critical challenges facing them today. Research has shown
that customerevaluate service quality by the following five components.

1. Reliability:-the ability to perform the service dependably, accurately and consistently.

Reliability is performing the service right the first time. This component has been to be the one
most important to customer.

2. Responsiveness:-the ability to provide promptsservice. Example of responsiveness include

calling the customer back quality, serving lunch fast to someone who is in a hurry or mailing
tartans action slip immediately.

3. Assurance:-the knowledge and courtesy of employees and their ability to convey trust skilled
employees who treat customers with respect and make customers feel that can trust the firm
exemplify assurance.

4. Empathy:-caring individualized attention to customers firms whose employees recognize

customers call them by name and learn their customer specific requirement are providing
empathy

5. Tangibles:-the physical of service. The tangibles part of a service includes the physical
facilities tool and equipment used to provide the service such as a doctor’s office or an ATM and
appearance of personnel.

2.9. The Gap model of service quality

The model of service quality called Gap model identifies five gaps that can cause problems in
service delivery and influence customer evaluation of service.
Gap1:- the gap between what customers wants and what management thinks customer
want.Theis gapresult from lack of understanding or misinterpretation of the customer
needs, want or desires. Firmthat does little or no customer satisfaction research is likely
to experience this gap.
Gap2:-the gap between what management thinks customer’s want and quality specification that
Management develops to provide the service.
Gap3: the gap between the service quality specification and that is actually provided. If gap
1and2 havebeen closed. The gap3 is due to the inability of management and employee to
do what should be done.Poorly trained or poorly motivated workers can cause this gap.

Gap4:-the gap between that the company provides and what the customer is told is provides. This
is clearly communication gap. It may be include misleading or deceptive advertising
campaignspromising more than the firm can deliver or doing whatever it takes to get the
business.
Gap5:-the gap between the service that customers receive and the service they want. This gap can
bepositive or negative.
Consumer service quality

Worde mouth Personal need

communication Past experience

Expected service

Gap5

Perceived service Gap Gap4 External communication

.
.

.
Service delivery

Gap1

Gap3

Translation of perception in to
service quality space

Gap2

Management perception of costumer

expectation
2.10. Conceptual Framework

The conceptual framework indicates the crucial process, which is useful to show the direction of
the study. The study shows the relationship between the five service quality dimensions
(reliability, responsiveness, assurance, empathy and tangible) and customer satisfaction. Also the
study focuses on gap 5 which represents the difference between customers’ expectation and
perceptions which is referred to as the perceived service quality

Service Quality

Dimensions

Expectation
Reliability

Responsive
ness Perceived
Customer
Gap 5 Service Quality
Assurance Satisfaction
Empathy Perception

Tangibles

The difference between expectations and perceptions is called the gap which is the determinant
of customers’ perception of service quality.SourceThesis,Beliyu G,(2004 )
 CHAPTER THREE

Research Methodology

3.1. Research Design

This research will be used a descriptive research study to assess service delivery and its impact
on customer satisfaction, because descriptive researches help to show the current event as it
exercises and their relationship.

3.2. Source and method of data collection

The purpose of this study will be to assessing service delivery and its impact on customer
satisfaction. Thus, the researcher will uses both primary and secondary source of data. The
primary source of data will be obtained through questionnaire that administrated to customer.
The secondary source of data will be obtained from journal, articles, books, internet, this is---etc.

3.3. Target population

Since this study is aimed at assessing service delivery and its impact on customer satisfaction in
the bank of Abyssinia, Dessie branch, the researcher will be assumed the population based on the
situation of customer Abyssinia bank, Dessie branch. According to the manager information 700
customers are uses the service in a day, thus the researcher will takes 700 customers as a
population on average

3.4. Sampling techniques

The researcher will uses a simple random sampling method of probability sampling techniques to
gather appropriate data. The justification for using this sampling is due to saving time, to reduce
cost and to make the research more reliable.

3.5. Sampling size

To make the research more reliable the researcher will takes the sample from target population of
customers of Abyssinia bank, Dessie branch. According to the information obtained from the
bank 700 customers shall be served per day on average and shall be used a simple random
sampling technique. To gate sample size the researcher will be used this formula.
n=N/1+N(e)2 n=N/1+N(e)2
where, =700/1+700(0.10)2
n=sample size =87
N=population size
e=sampling error level of precision or 90% confidence interval (0.1) Source (cited in Israel,
1992)

So, the researcher will use a sample size 87 out of total population 700 customers (on average of
a day).

3.6. Data processing and analysis

The data will be processed and classified based on common characteristics. The researcher will
employee both qualitative and quantitative analysis method. After the relevant data will be
collected and processed, descriptive analysis is taken. Because most of the data that are collected
will be qualitative in nature and the researcher believe to be appropriate method of analysis for
interpretation. The collected data will be analyzed by quantitative method, through tables and
percentages.

3.7. Ethical consideration

The researcher will treat all the information given by the respondents, kept confidentiality
without disclosing the respondents’ identity and has not be used for any personal interest.
Furthermore the questionnaires will distribute only to voluntary participants and secondary
sources will quote to keep the rights of the ownership of all materials.
3.8. BUDGET AND WORK PLAN

3.8.1. Work plan

Research proposal work cannot be complete within a day or a week as it involves a number of
tasks for related reviews of literature, data collection and data analysis. So the following time
schedule will design for successful completion of the research proposal.

No. Time period (in month)

Mar. Apr. May. Jun. Jul.

Activities

1. Topic selection 

2. Literature review 
 3. Proposal development 

4. Data collection 

5. Data processing 
analysis

6. Report writing 

7. Presentation 

3.8.2. Budget
When the research proposal will be conduct it is necessary to consider benefits that will be gaine
as cost allocate. Therefore, the following minimum cost budget will be proposed for this project
proposal.

Unit price Total

S. Item Quantity Birr Cent Birr Cent

No

1. Flash disk (16Gb) 1 260 00 260 00

2. Printing papers cost 30pages 2 00 60 00

3. Binder 1 10 00 10 00

4. Pen 6 piece 10 00 60 00

5. Pencil 2 piece 3 00 6 00

6. Transportation 5(Times) 20 00 100 00

7. Notebook 1 40 00 40 00

8. Paper Pack 150 00 150 00

Sub-total 686 00

Contingency (15%) 103 00

Grand Total 789 00

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David, Land Kennth, E. (2003).service marketing.newdelhibiztantra 3rd edition
Philip. (2003).Marketing management .India .Asoka. 9thed,

(Unpublished Master Thesis), Addis Ababa University, Ethiopia: Addis Ababa

Chang, J. C., (2008) Taiwanese Tourists Perceptions of Service Quality on Outbound Guided

http//en.wikipedia.org (wike) Customer service (10/12/2012)

Mcdaniel, lambhair. (2000).introduction to marketing .china 9th edition

Http//www.mgt study guid.com/types---/20/8/2012/

http//www.bank of Abyssinia.com (11/21/2012/

Zeithaml, V. A. (2009) Service Quality, Profitability, and the Economic Worth of Customers:
What We Know and What We Need to Learn, Journal of Academy of Marketing Science,
28(1), 67-85.
Philip, K.(2002).Marketing mangment .india .Asoke. 7thed

BeliyuGirma, (2012), Quality of Service Delivery and Its Impact on Customer Satisfaction

Koul, L. (2008). Methodology of Educational Research.(3rd Ed.). New Delhi: VikasPublishing

Agency.