LUNAR INTERNATIONAL COLLEGE

SCHOOL OF BUSINESS

Assessment Of Customer Contract Center Performance in Commercial Bank of Ethiopia

Habtamu Ferede Mengesha

ID: GSR/0287/12

ADVISER

Habtamu Endris (Ph.D.)

A research proposal submitted to school ofbusinessin partial fulfillment for the

award of degree in master of art in business adminstration lunar international

college

February, 2022

Addis Ababa, Ethiopia

Table of Contents
Abbreviation and Acronym.............................................................................................................3

List of Tables...................................................................................................................................4

CHAPTER ONE..............................................................................................................................5

INTRODUCTION...........................................................................................................................5

1.1. Background of the study.......................................................................................................5

1.2. Back ground of Organization................................................................................................6

1.3. Statement of the Problem......................................................................................................8

1.4. Objective of the study.........................................................................................................10

1.4.1. General objective..........................................................................................................10

1.4.2. Specific objective.........................................................................................................10

1.5. Significance of the study.....................................................................................................10

1.6. Scope of the study...............................................................................................................11

1.7. Definition of key terms of the study...................................................................................11

1.8. Organization of the study....................................................................................................12

CHAPTER TWO...........................................................................................................................13

REVIEW OF RELATED LITERATURE.....................................................................................13

2.1. Theoretical Review.............................................................................................................13

2.2. Review of Empirical Studies...............................................................................................17

CHAPTER THREE.......................................................................................................................18

Research Methodology..................................................................................................................18

3.2 Research Approach..............................................................................................................18

3.2 Research Design...................................................................................................................18

3.3 Population, Sample Technique and Sample size determination..........................................18

3.3.1 Population of Study.......................................................................................................18

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 3.3.2 Sampling Technique......................................................................................................19

3.3.2. Sample size determination............................................................................................19

3.4. Data Sources.......................................................................................................................20

3.5 Research instrument.............................................................................................................20

3.6. Data Analysis procedure.....................................................................................................21

3.7 Data Analysis Techniques....................................................................................................22

3.8 validity and reliability instrument........................................................................................22

3.8.1. Validity instrument.......................................................................................................22

3.8.2. Reliability instrument...................................................................................................22

3.9. Ethical Consideration.......................................................................................................23

3.10. Time Table and Budget for Research Activity.................................................................23

3.10 .1 Time and Budget break down........................................................................................23

3.10 2. Time Break Down......................................................................................................24

Reference.......................................................................................................................................25

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Abbreviation and Acronym
ATM: Automated Teller Machine

CBE: Commercial Bank of Ethiopia

CC: Contact Center

CCC: Customer Contact Center

KPI:Key Performance Indicator

IT: Information Technology

SPSS: Statistical Package for Social Science Software

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List of Tables
Table 3. 1:Sample Size Distribution..............................................................................................19

Table 3. 2:Time brake down and Budget break down Proposals..................................................22

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CHAPTER ONE
INTRODUCTION
The first chapter deals with the background of the study, followed by statement the problem and
objective of the study. Next, the significance of the study, delimitations/scope/, operational
definition of terms, and organization of the study are going to will be discussed.

1.1. Background of the study

In the past two decades, providing efficient service has become essential for organizations,
especially service delivered through customer contact centers (3Cs) (SMC, 2016). The origins of
the modern call center can be found in the 1973 Continental Airlines booking system developed
by Rockwell Galaxy (Aliyu, Mokhtar, & Yusoff, 2011). Since 1973, new developments in
communication technology have resulted in call centers growing into “contact centers.”
Customer contact center have become the main contact channel between companies
andcustomers. Customer contact center is the central element in company’s operations, as it is
themain place of communication between the companies and their customers
(Fekade,2019.Customer contact center is centralized place where messages in a variety
ofelectronic media are sent and received. A customer contact center would typically be
providedwith special software that would allow contact information to be routed to appropriate
people,contacts to be tracked, and data to be gathered (Ibid).
Most current literature defines CCs as the physical station that allows an organization’s
customers to contact them by different communication channels, such as telephone, touch-point
telephone, fax, letter, e-mail, web, online live chat, and social networks (Saberi, Hussain, &
Chang, 217).According to Bellman (2007), a customer contact center, often known as a call
center, is a group of employees whose primary responsibility is to communicate with current and
potential customers via multiple communication methods. Customer contact centers that are
effective and efficient should be equipped with trained personnel, contemporary information
technology systems, and processes that allow for the delivery of quick, effective, and measurable
results (Cleveland, 2007). There's a growing body of evidence that call centers are morphing into
customer contact centers (Acey, John ,2002). Customer contact centers manage all customer
contacts and use a variety of channels, including classic channels like phone and fax, as well as
modern technologies like e-mail, SMS, and the Internet.A contact center, according to Reuters, is

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an operational organization within a company that is responsible for the development of client
connections through the use of integrated technology and business processes (Reuters
2001).Contact centers play an increasingly important role in worldwide commerce (Teodoru,
2010). According to Dhesi et al. (2011) it has been shown that 70 percent of all business
interactions are handled in CCs Having a customer-focused CC is thus crucial for any
organization. And profitable customer contact centers often establish metrics to gauge success
and achievements within their organization, by setting milestones, tracking progress, and fine-
tuning efforts based on concrete data. The main purpose of customer contact center operation is
customer care and achievement of highlevels of customer satisfaction. Customer contact center
increasingly play a crucial in customerrelationship management to give sustainable competitive
advantage (Chanhoo, Sunhee&Euehun,2012).
The Customer contact center (CCC) is very new and still developing in the commercial bank of
Ethiopia and the banking industry in Ethiopia (Fekadu (2019). He started the customer contact
center of CBE at project level in 2014.The customer contact center(CCC) is also expected the
CBE’s service provisioning to the customers without coming toexisting and upcoming services
such as CBE Birr, ATM, payment card, business operation, ITsupport, Et-switch card payment
of other banks, mobile, POS, internet banking in addition toadvisory services and information
provisioning (Ibid).
Therefore, the most objective of this study is to assess customer contract center performance in the
case of CBE.
1.2. Back ground of Organization
The Commercial Bank of Ethiopia, or CBE, is one of Ethiopia's most well-known banks. The
bank was formerly known as the State Bank of Ethiopia, which was established in 1942. This
paved the path for CBE to be established independently in 1963, before being merged with the
Addis Ababa Bank in 1974. More than 22 million people have accounts with the Commercial
Bank of Ethiopia, and they can enjoy a variety of services. With money digitalization in mind,
the bank today has over 2.5 million internet banking users, up from 1.5 million last year.
CBE was the first bank in Ethiopia to implement modern banking. It was previously one of
Africa's most powerful financial institutions, with assets of 485.7 billion Birr as of June 30th,
2017. It presently has over 1500 branches around the country and plays an important part in the
country's economic development. CBE was also the first bank in the country to offer Western

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Union Money Transfer Services, and it now works with over twenty money transfer companies,
including Atlantic International, Xpress Money, and Money Gram. CBE has long-standing and
dependable ties with well-known banks all across the world.
The Commercial Bank of Ethiopia has established correspondent relationships with well-known
foreign banks such as Comers Bank A.G., Royal Bank of Canada, City Bank, and HSBC Bank,
as well as a SWIFT bilateral agreement with over 700 additional institutions throughout the
world.
By establishing a customer contact center, the Commercial Bank of Ethiopia took the first step
toward operational excellence and customer satisfaction. The Commercial Bank of Ethiopia's
Customer Contact Center is one of the operational organs in charge of managing inbound and
outgoing calls from the bank's internal and external customers. The internet protocol contacts
center handles both inbound and outgoing calls (IPCC).Inbound calls are calls received by the
contact center over the 951, 8879 phone lines from commercial bank of Ethiopia clients, staff,
and the general public. For external and internal clients, toll-free lines 951 and 8879 have been
utilized to provide information on the goods offered by CBE, their account status, their letter of
credit (LC), loan status, card status, ATM machines & PO terminals status, and to receive
complaints and suggestions. Through various electronic means, outbound calls are started from
the contact center to external or internal clients who have a business relationship with the bank
(via telephone, e-mails, SMS).
CBE's customer contact center began as a pilot operation in 2014. In December 2014, the project
was implemented as operational head office organs in collaboration with Ethio telecom premises.
The completed CCC operational services began in 2016, and its full structural alignment with its
parent CBE at its building began in October 2017. In Ethiopia's commercial bank and banking
industry, the customer contact center (CCC) is relatively new and continually evolving. This
Contact Center currently focuses on delivering first-line support through phone, as well as
advisory services, through its three key units: Internal Help Desk, External Customer Advisory,
and Quality Assurance.The Centre today employs 300 people with good communication skills,
as well as business and information technology graduate experts who are capable and well-
trained. They are working in shifts to suit the needs of the banks' customers.

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Commercial Bank of Ethiopia (CBE) management believes that establishing a customer contact
center with cutting-edge technology and a streamlined process leads to efficiency and optimal
results, which would help the bank realize its objective of becoming a world-class bank by 2025.
Customer contact centers have typically been seen as a way for financial services companies to
save money or improve customer satisfaction. This channel, on the other hand, has failed to
fulfill both of these objectives. 
Client care and high levels of customer satisfaction are the primary goals of customer contact
center operations. Customer contact centers are becoming increasingly important in customer
relationship management in order to provide a long-term competitive advantage.The Commercial
Bank of Ethiopia's (CBE) customer contact center is responsible for providing help and
information to both internal and external customers. In addition to advisory services and
information provisioning, the customer contact center (CCC) is expected to provide CBE's
service provisioning to customers without coming to existing and upcoming services such as
CBE Birr, ATM, payment card, business operation, IT support, Et-switch card payment of other
banks, mobile, POS, and internet banking.
1.3. Statement of the Problem
Although the banking industry is now poised for a resurgence, the road ahead still looks bumpy
at best. For instance, the customers are clamoring for better service across more channels than
ever before (Accenture, 2003). Today’s customers, with their access to powerful ICT
technologies, have a varied range of expectations and needs which banking industry has to
consider and respect (Saberi, Hussain, & Chang, 217).
The CBE management believes that having a customer contact center with cutting-edge
technology and flawless operations leads to efficiency and optimal outcomes, and therefore to
customer satisfaction, which leads to client retention, and hence to the bottom line of the
company (Aliyu, Abdullateef, Sany&Rushami, 2011). CBE, like any other bank, relies on its
customers to stay afloat in the market. The focus is on the consumer, and customer service is
what sets us apart. The CBE can set itself apart from the competition by delivering excellent
customer service. Customer service effectiveness is linked to the efficiency of operations.
Customer satisfaction is considered the core of success in the competitive banking market.
Customer contact centers are becoming increasingly important in customer relationship
management in CBE to provide a sustained competitive advantage (Chanhoo, Sunhee&Euehun,

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2012). However, Rodney et al. (2009) refuted this in their study, claiming that numerous
customer contact centers have failed to achieve this crucial goal. Customers are sometimes
hesitant to contact CCC because they believe their questions will not be adequately answered.
None, on the other hand, has looked into the role of the customer contact center in customer
satisfaction at the Commercial Bank of Ethiopia.
CCC automation is a critical step toward enhanced employee productivity, customer satisfaction,
and operational profitability (Muthoka, 2017). The technology is intended to improve the
working environment for customer service representatives who must browse several platforms
while dealing with client inquiries (Laietal, 2012). Various experts, such as Aliyu et al. (2011)
and Teirlinck and Spithoven, (2013), have argued that technology is progressively turning
customer contact center advisers into machines, resulting in disappointed customers. These
studies looked at the customer contact center business as a whole, not just the banking industry.
As a result, whether technology has a harmful or beneficial impact on CCC's success in the CBE.
In this sense, literatures were not deafeningly mute. Over the last two years, substantial study has
been devoted to demonstrating the impact of the 3Cs on an organization's overall effectiveness.
However, there were few research on the performance of customer contact centers in CBE and
other businesses. Even though there have been numerous researches on customer contact centers
over time, they are generally dependent on other factors such as customer happiness and
retention.
The Impact of Increased Employee Retention on Customer Contact Center Performance,
according to other academics (Whitt, W. ,2006).According to Koole, G. (2004). Performance
analysis and optimization in customer contact centers. In First International Conference on the
Quantitative Evaluation of Systems, 2004. QEST 2004. Proceedings. (pp. 2-5). IEEE.
According to Tesfaye, B. (2015). The Impact of Service Quality on Customer Satisfaction the
Case of Commercial Bank of Ethiopia (Doctoral dissertation, St. Mary's University).
In addition to this, many researches the above were studied .it has the following major research
gaps. First, except few most previous empirical studies did not deeply assesscustomer contact
center performance in CBE. Therefore, there is knowledge gap.
Second, According to Fekadu (2019) assessed customer contact center performance in the
commercial bank of Ethiopia. He used explanator did no describe research design and approach.
There is methodological gap

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Third studies conducted in other specific area do not guarantee to conclude about the picture of
the rest parts of the areas. Hence, whether the identified factors are significant or not depend on
the existing situation of the given particular area. As a result of all the above-mentioned issues,
the researcher decided to conduct a study to there is no evidence of a study conducted to
investigate the assessment of customercontact center performance in the Commercial Bank of
Ethiopia.
Therefore, there is a geographical gap.This study aimed toaddress that gap in the CCC
performance in CBE.Thus, it enables the researcher to carry out research in the area, which is
guided by the following basic research questions:
1. What are the measures of key performance indicators (KPI) to contact centers in CBE?

2. To what extent key indicators for measurement of performance differed among the
employees of contact centers in CBE?
3. To what extent key indicators for measurement of performance related among the
employees of contact centers in CBE?

1.4. Objective of the study

1.4.1. General objective
The main objective of the study is to assess customer contract center performance of CBE
1.4.2. Specific objective
1. To assess the measures of key performance indicators (KPI) to contact centers in CBE.

2. To examine the key indicators for measurement of performance differed among the
employees of contact centers in CBE.
3. To identify the key indicators for measurement of performance related among the
employees of contact centers in CBE.

1.5. Significance of the study

It is believed that this research paper will contribute to the body of existing knowledge and as
well make up for the paucity of scholarly paper in contact center performance. The quest for
research-based intervention is high on the priority list for contact centers to be effective in their
performance. So, this study is important to bridge this gap for instance CBE will be well
informed about key performance indicators (KPI).

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In addition, the finding of this study will have the potential to provide important insight for the
government and policy makers with regards to making policies and taking the appropriate
measures towards designing strategies for improving contact centers. Lastly the study will serve
as an empirical source to the researcher in the future.
1.6. Scope of the study
Customer contact center is a broad concept, which consists of numerous interactions but the
scope of this study is restricted to the particular topical and spatial areas. Topical approach of the
study is limited to describe key performance indicators (KPI) to contact centers and to examine
the difference/relationship between key indicators for measurement of performance of contact
centers in CBE.
Having objective of assessing customer contract center performance the study will be delimited
only covered Addis Ababa area in terms ofgeographical region and only focused on CCC
department in CBE.If the study focuses on all branch offices of the bank it will obtain a lot of
information that maybe useful for the government and the bank’s stakeholders. However, it is
unmanageable toinclude all the bank’s branch offices because of resources and time limitations.
CBE has 15district offices and 1,400 branches offices in Ethiopia. From these branch offices 287
branchoffices are found in Addis Ababa. This study selects one of the big head office organ
centers,the customer contact center, which has frequent contact with customers.
Besides, the study covered the time period between from January first up to May last in 2021.
This study also will apply descriptive research design to describe key performance indicators
(KPI) to contact centers in CBE. The targetpopulation is employees and management of CCC in
CBE and the sample study consisted of171 respondents.
1.7. Definition of key terms of the study
Workload Forecasting: Make accurate workload prediction to deliver more efficient, consistent
service that translates in to heightened customer satisfaction levels (Aldor-Noiman, Feigin, &
Mandelbaum, 2009).
Agent Accessibility: it is assuring more accurate schedules and placing the right people in the
right places at the right times.
Resource Accessibility: it means setting and measuring service level and response time
objectives to identify where the quality of customer service drops off precipitously occur most
frequently (ICMI , 2016).

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Resolution Quality: it is monitoring all service channels that you offer to get a holistic picture of
the customer experience (Koole, 2006).
Employee Satisfaction: it is a value assigned to how contented contact center employees are with
their jobs (Cleveland & Robbins, 2001).
Customer Satisfaction: it is the percentage of customers who are satisfied with the service they
receive.
Strategic Value: it is the measure of the overall value of your contact center (ICMI, 2016)
1.8. Organization of the study
This proposal is organized in to five chapters. Chapter one is dedicated for introduction. Under
this chapter, background of the study, statement of the problem, objective of the study, scope of
the study, limitation of the study is discussed. Chapter two reviews related literatures.
This chapter embarks on theoretical and empirical literatures. Under theoretical review the study
reviewed on such topics as the concept and definition of customer contact center, the importance
of customer contact centers, measuring contact center performance and key performance
indicators. Then the study developed theoretical framework. In addition, the study reviewed
empirical literatures. The third chapter that discusses the methodology used to undertake the
study. Chapter four deals about the data presentation, analysis and interpretation. Finally, chapter
five contains summary of findings, conclusion and recommendations. References and
questionnaires will be annexed.

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CHAPTER TWO
REVIEW OF RELATED LITERATURE
This chapter embarks on theoretical and empirical literatures. Under theoretical review the study
reviewed on such topics as the concept and definition of customer contact center, the importance
of customer contact centers, measuring contact center performance and key performance
indicators. Then the study developed theoretical framework. In addition, the study reviewed
empirical literatures.
2.1. Theoretical Review
2.1.1. customer contact center definition
A contact center is a business division within an organization that manages customer
interactions. Unlike a call center, which receives requests only by telephone, the contact center
handles inbound and outbound customer communication over multiple channels such as
telephone, web, chat, email, messaging apps, social media, text, fax, and traditional mail. Contact
centers use various types of advanced technology to help resolve customer issues quickly, to
track customer engagements, and to capture interaction and performance data. Contact centers
are usually operated either by an internal department or outsourced to a third-party provider
(https://aws.amazon.com/what-is-a-contact-center/).
2.1.2The Function of Customer Contact Center
A customer contact center is a physical place where customer contacts are handled (Tate &Valk,
2008). According to Leslie (2010) contact center is the transformation of traditional call centers
into modern multimedia-based interaction centers that have integrated different types of
communication channels such as the telephone, Internet web, online chatting, email, fax and so
on, in interfacing with the organization’s current and potential customers at profit (Aliyu,
Mokhtar, &Yusoff, 2011).
Customer contact centers (3Cs) have two distinct customer contacts identified by inbound
customer contacts and outbound customer contacts. The outbound part concerns tasks like
telemarketing, credit collections, or customer satisfaction research (Muthoka, 2017). Here,
agents at the center contact customers and work through a standardized script. However, inbound

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refers to customers calling the contact center with questions or complaints related to the product
or service provided by the firm (Cleveland & Robbins, 2001). Each inbound contact is almost
unique and requires project-like responses from the agents.
2.1.3. The Importance of Customer Contact Centers
Customer contact centers allow a company to build, maintain and manage customer relationships
by solving problems and resolving complaints quickly, providing information, answering
questions and being available usually 24 hours a day, 7 days a week, 52 weeks a year (Saberi,
Hussain, & Chang, 217). Customer contact centers (3Cs) combine strategy, customer insight,
integrated customer interaction channels, operations and value optimization into a differentiated
capability for clients (Accenture, 2003). The result: a transformational shift in performance
across the entire customer contact spectrum, delivered at speed and with less risk, leading to
lower costs and increased market share.
2.1.4. Measuring Contact Center Performance
Performance refers to how well an employee is fulfilling the requirements of the job
(Ng’Ang’A , 2011). According to Franco-Santos et al. (2007 & Kaplan and Norton (1992)
performance measurements have often focused on procedures and tools that could improve the
efficiency and the effectiveness of organizations (Micheli& Mari, 2013). Especially over the last
decade the contact center industry has changed significantly due to shifting business priorities
and underlying technologies (Cleveland & Robbins, 2001). As a result, a new set of best
practices are required to run a modern, efficient, and productive contact center. And it is
inevitable also to design key performance indicators
2.1.4.1. Key Performance Indicators
“Key performance indicators” means factors by reference to which the development,
performance or position of the business of the company can be measured effectively (Price
Water House Coopers, 2008).
Parmenter (2010) in his book “Key Performance Indicators” mentions that there are four types
for measurement indicators for organizations 1) key result indicators (KRIs) tell you how you
have done in a perspective or critical success factor; 2) result indicators (RIs) tell you what you
have done; 3) performance indicators (PIs) tell you what to do & 4) KPIs tell you what to do to
increase performance dramatically” (Behzadirad&Stenfors, 2015).

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The main performance measures in contact centers have to do with the quality of service and the
operating costs (L’Ecuyer, 2006). The quality of service in general is related to customer
satisfaction. In addition the most frequently used measure in practice is the service level (SL),
defined as the fraction of calls that wait less than an acceptable waiting time (typically 20 to 30
seconds).Key performance indicators to contact centers are designed by Cleveland & Robbins
(2001), ICMI (2016)&L’Ecuyer (2006).Key performance indicators (KPIs) embraced workload
forecasting, agent accessibility, resource accessibility, resolution quality, employee satisfaction,
customer satisfaction & strategic value. Let us detail one by one
2.1.4.1.1. Workload Forecasting
In contact centers among multiple operational decisions-making tasks managers faced is
determining the weekly staffing levels to ensure customer satisfaction and meeting their needs
while minimizing service costs (Ibrahim, Ye, L’Ecuyer, & Shen, 2015). A prerequisite for such a
task is the forecasting of the system workload over the periods of the day, for several days in
advance. The workload or what is technically called the offered-load depends on the arrival
process and the service times that each arrival (customer)requires (Aldor-Noiman, Feigin, &
Mandelbaum, 2009). So, for planning a staffing schedule, contact center employees utilize
forecasts of the arrivals and service times at a sufficient resolution say for every half hour.
2.1.4.1.2. Agent accessibility
According to Cleveland & Robbins (2001) it is assuring more accurate schedules and placing the
right people in the right places at the right times. The primary matric to agent accessibility is
adherence to schedule, Adherence to schedule refers to how well agents abide by schedules,
including amount of time available and when they are available (compliance) (Cottam, 2016).
Occupancy is also supportive matric (ICMI, 2016). Occupancy means the percentage of time
agents spend handling contacts vs. waiting for contacts to arrive (inbound) or to be assigned
(outbound).
2.1.4.1.3. Resource accessibility
According to ICMI (2016) resource accessibility means setting and measuring service level and
response time objectives to identify where the quality of customer service drops off precipitously
occur most frequently. Its primary matrices are service level and response rate. Service level is
percentage of contacts answered in Y seconds (for inbound contacts that can be handled when
they arrive). Response rate refers to the number of days, hours, or minutes it takes to handle

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100% of outbound contacts or inbound contacts that can be handled at a later time (Koole, 2006).
Resource accessibility’ supporting metrics are abandoned contacts & resource accessibility.
Abandoned contact is a measure of inbound contacts that disconnect before reaching an agent or
self-service response (Ibrahim, Ye, L’Ecuyer, & Shen, 2015).
2.1.4.1.4. Resolution quality
Resolution quality is monitoring all service channels that you offer to get a holistic picture of the
customer experience (Koole, 2006). Its primary matrices are Quality of contact and first contact
resolution FCR. Quality of contact (QC) is a value placed on the quality of how individual
contacts are handled. First contact resolution (FCR) is a percentage of contacts that require no
further action, generally measured on a monthly basis. FCR is the best determinant of caller
satisfaction and key performance indicator within the contact center operations (Aliyu, Mokhtar,
&Yusoff, 2011).

2.1.4.1.5. Employee Satisfaction

Employee satisfaction is a value assigned to how contented contact center employees are with
their jobs (Cleveland & Robbins, 2001).
2.1.4.1.6. Customer Satisfaction
Typically, it measured by the percentage of all customers who were satisfied with the services
they received. Zeithaml and Bitner (2000) defined customer satisfaction as the customers‟
evaluation of a product or service in terms of whether that product or service has met their needs
and expectations (Meron , 2017 ). According to Tse and Wilton, 1998) customer satisfaction can
also be defined as the “customer’s response to the evaluation of the perceived discrepancy
between prior expectation and the actual performance of the product as perceived after its
consumption”. Customer satisfaction is shown to be a driver of customer loyalty. Satisfied
customers typically spend more and have a higher propensity to spread positive word-of-mouth
feedback (Cleveland & Robbins, 2001). It’s good to drive customer satisfaction results to the
agent level as they can help with training, agent motivation, or identifying opportunities with
products or processes.
2.1.4.1.7. Strategic value
Strategic value is the measure of the overall value of your contact center (ICMI , 2016).
Managerial strategy

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In terms of managerial approach, the literature suggests that it also plays an important role in call
centre operation. We can identify two main managerial approaches: the production-line
approach, which focuses on quantitative performance; and costumer orientation approach, which
focuses on qualitative performance (Gilmore, 2001). In other words, call centers that adopt the
production-line approach basically emphasize handling a large number of calls or focus on sales
volume, and usually do not take into account the quality of the service provided or the
satisfaction of customers. In this sense, in order to achieve their goals, these types of
organizations try to standardize their operations by constantly pressurizing and controlling their
staff. On the contrary, call centers which adopt a customer-orientation approach are characterized
by focusing on service quality and concern about customer satisfaction. In this sense, these types
of organizations try to commit and motivate their employees by empowering and giving
company support so that staff is able to provide service quality.
2.2. Review of Empirical Studies
Fekadu (2019) assessed customer contact center performance in the commercial bank of
Ethiopia. Based on the secondary information from internet protocol contact center (IPCC) the
scholar summarized that the dropped manual calls was high. In addition, abandoned and blocked
calls were also contributed for reduction of efficient work utilization time. On the other hand,
Fekadu (2019) revealed that customers contact center staff was friendliness. In addition,
customer contact Center operating times are convenient to customers. Moreover, customer
contact center operating times were convenient to customers. Even the scholar disclosed that
customer contact center metrics influenced customer satisfaction significantly.
Manzoor &Shahabudeen (2014) conducted the study a study on key performance indicators and
their influence on customer satisfaction in call center. The key indicators for measurement of
performance of call centers was analyzed by working out mean and standard deviation. The
scholars revealed that there is a significant difference in key indicators for measurement of
performance among the employees of call centers. On the other hand, customer satisfaction is
positively and significantly correlated with first call resolution and attrition rate. In addition, the
first call resolution is significantly and positively associated with average handling time, calls per
day by agent and attrition rate. The average handling time is also positively and significantly
correlated with calls per day by agent and attrition rate and calls per day by agent is significantly
and positively associated with attrition rate.

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CHAPTER THREE
Research Methodology
This study primary aim is to assess customer contract center performance of CBE, the
methodology section describes clearly: study area, the research design, research approach,
sampling techniques, the sample size, data sources and instruments that has been utilized in
collecting data, the procedure of data collection and the method of data analysis, and the ethical
consideration.
3.2 Research Approach
For the purpose of conducting this study, the researcher has employed quantitative research
approach. Because quantitative research helps for numerical, non-descriptive, applies statistical
or mathematics tests as numbers and the result is often presented in tables (croswell,2014).
Therefore, all data gain through questionnaire annexby statically test and analyzequantitatively
and then will be explained.
3.2 Research Design
The researcher used a descriptive research design in order to achieve this objective. The reason
behind using descriptive research design is because the researcher is interested in describing the
existing situation under study. Creswell, (2017) stated that the descriptive method of research is a
technique of gathering information about the present existing condition. Furthermore, the
descriptive research design method is widely used in social science streams to describe what
actually exists within a situation, such as current practices, progress, and situations of different
aspects of research (Bell, Bryman, & Harley, 2018). The study used cross-sectional research,
which collects data at a single point in time by distributing questionnaires to sample customers.A
list of external and internal customer advisory from CCC in the CBE served as the study's
sample frame.
3.3 Population, Sample TechniqueandSample size determination
3.3.1 Population of Study
A population is a whole group of people, things or events, and has similar characteristics that
arecalled parameters (Nakagawa, S., & Cuthill, I. C.,(2007). The population of this study will be
taken from the contact center inthe commercial bank of Ethiopia. They consist of total target

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population of 300 CCC out of this, 175external customer advisory and 125 Internal customer
advisories
3.3.2 Sampling Technique
There are two major categories of sampling technique:To conduct this study, the researcher will
use probability-sampling techniques, specifically stratified random sampling& simple random
sampling techniques and non-probability sampling techniques, specifically purposive sampling
techniques. The purpose of the sampling is to identify the study area in non-probability sampling.
As a result, the researcher choosesAddisAbaba CBE branches
On the one hand, the rationale behind selecting purposively is to Addis Ababa excess transport
and it has experience and knowledgeable employees. Instead of time and cost saving.

On the other hand, the researcher will determine the number of samples will be selected by
stratified random sampling technique from CCC in the commercial bank of
Ethiopia.Furthermore, sampling simple random sampling techniques will use select the
respondents from CBE employees.
3.3.2. Sample size determination
The process of selecting a few people (a sample) from a larger group (the sampling population)
to serve as the foundation for estimating or predicting the prevalence of an unknown piece of
information, circumstance, or outcome in the larger group is referred to as sampling (Kumar,
2011). According to Kothri (2004), a sample is a collection of some parts of the population from
which a decision is determined. The sample size refers to the subset or segment of the population
from which the researcher intends to make generalizations about the complete population using
the sample respondents. As a result, the researcher will be utilized to establish the study's sample
N
size. Yamane (1967:886) offers a simplified formula for determining sample size.n=
1+ N ( e)2

Where; n=Sample Size, e=Margin errorand N= CCC total Population of CBE

300
there for n= =171
1+ 300¿ ¿
Therefore, a total of 300 employees are considered as a target population from which 171 are
considered as a sample size of the study. Simple random sampling technique is adopted to draw
the sample from each stratum.

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The following table are generated from CCC file that show the number of employees working at
the CBE. So, the number of respondents/employees as a sample for each external customer
advisory and Internal customer advisoryare calculated by using the following proportionate
method of calculation:
n×N 1
n*= ,Where n* is sample Size per each stratum, n is total number of samples, N: is total
N
number of populations, and N1: is total number of populations for each sector.
The sample size from the target population per each stratum will be illustrated in the below table
to show the sampling proportion from each location.
Table 3. 1:Sample Size Distribution

Target CBE customer contact center Population Sample

External Customer Advisory 175 100
Internal Customer Advisory 125 71
Total 300 171
Source: Commercial Bank of Ethiopia (2021)
3.4. Data Sources
The researcher will be used both primary and secondary data sources to obtain credible
information on the present condition of the subject under investigation. Primary and secondary
data are not diametrically opposed; they work in tandem to supplement the evidence(Baral,
2017).
Primary data was collected from CBE customer contact center through questionnaires. The
primary sources of data enable us to obtain information related to what is currently happening
and determine techniques that will be used to obtain accurate data for the study.
On the other hand, the secondary data is gathered from different published and unpublished
documents, such as journals, reference books, articles, websites, research findings,and other
relevant documents in the research.
3.5 Research instrument
Depending on the nature and type of research, several data-gathering instruments are used.
Canals (2017) points out that among the key instruments utilized in the mixed research technique
are closed-ended or structured and open-ended or unstructured questionnaires, interviews, FGD,
and document analysis. Hence, the researcher will use data gathering instruments such as close-

20
ended questionnaires to gather important data about the assessment of customer contact center in
CBE.

The researcher based on review of the literature will be developed questionnaires. Questionnaires
are checked first by the advisor and other professionals in the area for completeness, clarity,
exhaustiveness and, consequently, necessary corrections are made based on their comments
before the actual data collection. The questionnaire will be constructed in English because are
expected to be bachelor degree holders. The questionnaire will comprise two sets It contains closed-
ended questions to help the flow of adequate information as much as possible. The closed ended
items will be developed using Likert or rating scale type because they are suitable for large-scale
survey as they are quick for respondents to answer, they are easy to analyze using statistical
techniques, and they enable comparison to be made across group. The main advantage ofprimary
data is that it is always up to date and reliable. Structured questioners will be developed and
administered to select individuals. Section I of the questionnaire will be focused on
generalrespondent information, section II will be focused on the general opinion about CBE,
Section III thefunction of customer contact center on customer satisfaction while section IV will
be focused on theeffect of technology on customer contact centers performance in the CBE.

3.6. Data Analysis procedure

To answer the basic research questions through data gathering procedures, the expected relevant
data will be gathered by using questionnaire. Data gathering is very essential for making research
valid and meaningful (Ongunya, 2019). Those procedures help the researcher to get accurate and
relevant data from the sample units. To ensure validity of instruments, initially the instrument
will be prepared by the researcher and developed based on the guidance of advisor English
advanced teachers, and seiner master students.

Following, questionnaires will be distributed to at experts highly involved incommercial bank of

Ethiopia. Launching of the study survey, a pre-testing on randomly will be selected 10
employees is carried out the CCC in the CBE. A pilot test involving 10 respondents is carried out
to evaluate the completeness, precision, accuracy and clarity of the questionnaires,The results of
the pretest studying statistically to compute by SPSS version 26 will be checked reliability by
using Cranach’s alpha coefficient. Hence, Cranach’s alpha value/result greater than 0.7 will be
accepted.This is followed by the preparation of the final draft of the questionnaire.

21
Finally, the questionnaire will be self-administered with the help of select four enumerators
following the provision the necessary orientation by the researcher. The questionnaires will be
collected after a week from CCC in the CBE by enumerators and the researcher.

3.7 Data Analysis Techniques

Statistical Package for the Social Sciences (SPSS) statistics version 26 program will be used
to,analyze the data and generate statistical measures.Depending on the nature of the basic
questions and data gathering, data will be analyzed using descriptive statistics. The results of the
data will be summarized by using descriptive statistics such as mean score, frequency and
percentage by pie chart bar graph and tables.

Finally, the data will be collected through various instruments from multiple sources are
analyzed and interpreted. Then the researcher will be concluded and recommend the final result.

3.8 validity and reliability instrument

3.8.1. Validity instrument
Validity defined as the extent to which data collection method or methods accurately measure
what they are intended to measure Saunders (2007) believe that validity refers to the extent to
which a test measures what we actually wish to measure. Numbers of different steps will be
taken to ensure the validity of this study: Data will be collected from the reliable sources, from
respondents who are living and working in CBE. Survey questionnaire will made, adaptation of
previous studies and with some modification based on literature review and frame of reference to
ensure the validity of the result; Data will be collected through two weeks, within this short
period of time no major event has changed with the related topic. Before distributing the
questionnaires, comments will be given by the researcher ‘s advisor and experts are used to make
certain corrections and modifications. To ensure validity, the researcher will be made pre-test on
a sample respondent before conducting the data collection. The pre-test study will be guided to
modify and improve the research questionnaires. In addition, the items on the questionnaire are
face validated by senior colleagues in research area, from advisor of this research, who assessed
and reviewed the appropriateness of questions and the scales of measurement.

22
3.8.2. Reliability instrument
According to Saunders (2007), reliability refers to the degree to which data collection method or
methods will yield consistent findings, similar observations will be made or conclusions reach by
other researchers or there is transparency in how sense is made from the raw data. Snice the
researcher Internal reliability will be measured using Cronbach ‘s alpha before distributing the
questionnaires. There for, the researcher will be prepared pilot study questionnaire based on
basic questions to evaluate the appropriateness of the design, clarity, and interpretation of the
questions, the relevance of the questions and to estimate the time is required for a questionnaire.
will be measured using Cronbach ‘s alpha. Cronbach ‘s alpha coefficient varies from 0 to 1 with
1 indicating perfect reliability and 0 no internal reliability; 0.80 denotes an acceptable level of
internal reliability (Grafton, and Michael ,1983). They further said that if the Cronbach ‘s alpha
coefficient is greater than 0 .9 it implies excellent, greater than 0.8 is good, greater than 0.7 is
acceptable, between 0 .6 and 0.7 is questionable, between 0 .5 and 0.6 is poor, and less than 0.5
is unacceptable (Ibid). Therefore, the internal reliability result will be showed that, 0.7 and above
I will accept the reliability.

3.9. Ethical Consideration

Research, as a scientific process and activity, has its own basic ethical conducts that will not be
compromised at all levels. For instance, any source that is quote and used as essential part of the
study will be cited. That means, acknowledging the authors of books and articles is necessary
and the data will gather from the appropriate and relevant sources. Therefore, with respect to the
current study, the researcher has respected and complied with existing ethical principles to make
the research credible and acceptable by the academic communities and users of the result. The
respondent of participation in the study is on the voluntary basis and participants are asked for
readiness before they are provided the questionnaire and their responses will be used only for the
purpose of the research. The confidentiality of participants (employees) will be maintained in
that their names, privacy, and signature is not appeared and filled in the questionnaire. The
researcher is also presented the findings of the study without any distortion of the reality.

3.10. Time Table and Budget for Research Activity

3.10 .1 Time and Budget break down
Table 3. 2:Time brake down and Budget break down Proposals

23
 Title Jua Fb Ma Ap May Ju Ju Au
Title approval 
Proposal completion 
and submission to the
advisor
Data collection 
Data analysis 
Submission of first 
draft to the advisor
Submission of the 
final draft to the
department
Thesis presentation 

3.10 2. Time Break Down

Category Items unit quantity Unit/Price Total
Stationary Paper (double A) Rem/Desta 4 250 1000
Lexi Pen No 10 5 50
Note book large No 2 25 50
Note book short No 4 15 60
Note book No 2 10 20
medium
Stapler steel packet 1 15 15
Binder No 5 30 150
Equipment Flesh memory No 2 200 400
CD 4 3 10 30
Kangaroo Stapler No 1 60 60
Communication Internet access Mega hours 300
service Telephone service hours 23 350

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 four enumerators Birr wage
Transport Transport (by bus) birr 100
service cost
Publication Printing purpose page 2000 2000
Photo copy page 4 500
Contingency 100
Total 4885

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