marketing

Is one of a dynamic discipline in the area of business management. It deals with marketing
both physical products and services. The focus of service marketing is selling or delivering
quality services for the customers in effective and efficient manner. As competition becomes
more intense and environmental factors become more hostile, the concern for service quality
grows. As a result service quality is becoming an approach to manage business processes in
order to ensure full satisfaction of customers which will help to increase competitiveness and
effectiveness of the service business. If service quality is a key factor to meet customer
satisfaction and it becomes the cornerstone of marketing strategy, the service marketer must
have the means to measure it. The most popular measure of service quality is SERVQUAL,
an instrument developed by Parasuraman et al., (1988) which involve five dimensions of
service quality, namely Reliability, Responsiveness, Empathy, Assurance, and Tangibles.
SERVQUAL is designed to measure service quality as perceived by the customers. The service
sectors have high contribution to the Ethiopian economy. Banking sector is one service sector
that provides financial service for the user and contributes to the country service sector
development. Accordingly, many private banks have already been established and
their number is increasing from year