ASSESSMENT OF PEOPLES ATTITUDE TOWARDS THE BANK

SERVICE (THE CASE IN AWASH INTERNATIONAL BANK)

FINAL YEAR PROJECT SUBMITTED TO DEPARTEMENT OF

ACCOUNTING IN PARTIAL FULFILMENT FOR THE REQURIMENT
OF B.A DEGERE IN BANKING AND FINANCE.
BY

MIHRET DEREJE

ADVISOR: SEKATA KENA (PhD)

OCT 2023

MATTU, ETHIOPIA
ACKNOWLEDGEMENTS
It is the grace, mercy, charity, forgiveness, help and kindness of the almighty GOD - JESUS
CHRIST that made me still alive, achieve this success and strength and to go through all the
difficult time. While there are several people who have helped me in one way or another to
achieve the completion of this paper, it would have not been possible without the guidance and
support of my advisor SEKATA KENA (PhD). Therefore, I would like to begin my heartfelt
gratitude to my advisor for his constructive comments and outstanding help for the completion of
this project.

Next, I cannot afford to leave out the precious support of my families who helped me in all
aspects of my life. In addition, I would like to say thanks for all of my friends for all the positive
comments, supports and cooperation you gave me while I am doing this project.

May God bless you!

I
 ABSTRACT
This study would try to assess’ customers’ satisfaction with quality of services at awash bank of
Metu town branch. Currently with the competition of commercial banks, banks are recognized
the importance of customer centered philosophies. One of the key challenges of them is how they
manage service quality, which seizes an immense significance to customer satisfaction. The
researcher would use both qualitative and quantitative data, which would collect from primary
source of data for the study. The researcher would use judgmentally sampling techniques for the
employees of the banks; and would use convenience sampling for the customers because it is not
easy to be getting people who has accounts in awash bank of Metu branch the sample frame for
the study included sixty seven (67) customers and twelve (12) staff/employees of the bank. The
method that would use for data collection includes questionnaire for employees and customers of
the bank. Finally, the data would process and explained by descriptive method of data analysis.
The summary would draw from the analysis to provide recommendation based on the finding.
The study would show that quality service delivery is vital role for customer satisfaction with
continues service improvement in the Awash bank Metu branch.

II
 List of Tables
Table 4.1.: Background of employee respondents……………………………………………...20
Table4.1. 1: Background of customer respondents……………………………………………...22
Table 4.1.2: customer retention on wash bank of Metu branch ………………………………...23
Table 4.1.3: Customers perception, satisfaction, and expectation on awash bank of Metu
branch……………………………………………………………………………………………23
Table 4.1.4: Employees response on customer satisfaction level……………………………….24
Table 4.1.5: Response on customer complains handling mechanism of the Bank……………...25.
Table4.1. 6: Assessment on tangibility……………………………………………………….….26
Table4.1.7: Response on the reliability of awash bank of Metu branch ……………………….27
Table4.1. 8: Responsiveness of awash bank of Metu branch Employees ………………………28
Table4.1.9: assessment on the empathy and assurance of Bank………………………….…….30
Table 4.1.10: Service quality of awash bank of Metu branch ….……………………………....31
Table 4.1.11: Satisfaction level of customer’s………………………………………….……….32

III
 List of Acronyms
ATM: Automated Teller Machine

SERVQUAL: Service Quality Mea

IV
 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Customer satisfaction is important in defining organizational performance. Enhancing customer
satisfaction is critical because it is a key to business success of any banking institution. In the
competitive economy, customer’s satisfaction has come under limelight due to stiff competition
where organizations are trying to take competitive advantage through the human factor and
customers (Singh et al, 2011).

Business environment in developed and developing countries has changed due to globalization
and free trade and global competition is increasing with exploding. Because of these reasons, to
stay in a competitive environment and deliver acceptable financial returns, managers must know
how to handle changes which are unexpected by cementing on customers’ satisfaction (Naseemet
al, 2011).

In developing countries, customers’ satisfaction has become important to business success of

banking institutions. Suggested reasons for this apparent trend include flexible employment,
higher mobility, and competition in banking industry (Panda, 2003).

In this context, one may wonder how banking institutions in Tanzania survive in the mentioned
environment by cementing on customers’ satisfaction. Thus, understanding customers’
satisfaction in banking institutions is important not only from economic perspective but also
from creation of good image of banking institutions for organizational and staff development
(Qin and Pastory, 2012).

According to Scott, (2002), customer service is a series of activities designed to enhance the
level of customer satisfaction, that is, the feeling that a product or service has met the customer
expectation. The level of satisfaction can also vary depending on other options the customer may
have and other products against which the customer can compare the organizations products.

As a major service giving financial institutions, Awash bank satisfy or keep the interests of the
customers and improve its customer services qualities for the attainment of sustainable customer

1
satisfied and minimize the gap between customer expectation and the actual service delivery for
its customers. According to the federal government council of ministers regulation number
202/1994, the Bank was established for the following functions:-

 To accept saving, demand and time deposits.

 To draw, accept discount, buy and sale bill of exchange, draft and promising notes
payable within or outside Ethiopia.
 To issue letter of credit, buy and sale foreign exchange to provide loans etc.
In Ethiopia, a number of private banks provides opportunity for customers to use their option.
Even though, the importance of commercial bank for a developing country is large, still there is a
gap in satisfying customer and on advancement of technology especially in the case of Metu
Town. Therefore, the main goal of this study is to assess customer satisfaction and identifying
factors that influence it in Awash bank mainly Metu branch.

1.2 STATEMENT OF THE PROBLEM

According to Oliver (1991), defined Customer satisfaction is the degree of satisfaction provided
by the goods or services of a company as measured by the number of repeat customers or
customer satisfaction is a highly personal assessment that is greatly influenced by customer
expectations.

In today’s competitive business environment, giving quality services to customers is a very

critical exercise. Meeting customer expectation by giving quality services is very important to
satisfy customers. Customer satisfaction is not a simple work, it is not a physical activity, and
rather it is an understanding of customers feeling, expectation choice and preference (Palmer,
2014).

Any service organization in general become successful and create the main differentiating
factors, it is advisable to implement rendering quality service to satisfy customers, proper
customer handling, attracting and retaining customers on the organization and used customer
satisfaction both a goal and a marketing tool (Denton, 2010).

In the world of competition, service quality is the most important parameter that needs critical
attention for an organization to exceed its competitors. This is especially true in the service
sector where there is frequent interaction with customers which hold the highest stake in

2
ensuring the organization exceeds its competitors and excel in the service it provides. In winning
this competition, it is obvious that customer satisfaction is a critical issue as it is highly
correlated with the quality of services provided by competing organizations.
Service quality has various dimensions and each customer place different level of importance on
each dimensions of service quality .The service providers’ perception of service quality maybe
quite different from what customers perceive as service quality. Therefore, if banks are to
compute in providing quality service to customers, it is important to understand the customer
Perception and expectation of quality service. Further they should identify themselves with at
Least one of the dimensions of service quality that they think it will drive customers’ perceived
Service quality satisfaction, loyalty, and retention. (Lukmaan Osei-Mensah Bonsu and Gertrude
Adu Mensah 2013)
One may ask “why is it necessary to assess the level of service quality in a given organization”?
The reason is in this world of competition the only way a firm can survive is by being the best
and being the best in the service industry i.e. being able to provide the best quality service.
Therefore the main interest of this study is to measure the perception of customers concerning a
service provided by Awash bank of Metu branch and find out whether the bank has met the
perception of its customers under all the dimensions of service quality as service quality is
becoming key choice driver of customers. Many researchers are trying to assess the level of
customer satisfaction in service industry particularly in banks. However, this research would try
to investigate one core element of customer satisfaction which is service quality provided by
Awash bank of Metu branch.
Hence, this study is designed to answer the following questions.
1. What is the level of service quality offered by Awash bank of Metu branch?
2. What is the relationship between service quality dimensions and customer satisfaction?
3. What is the satisfaction level of customers on SERVQUAL dimensions?

1.3 OBJECTIVE OF THE STUDY

1.3.1 GENERAL OBJECTIVE

The general objective of this research is to assess the degree of customer satisfaction in respect to
service delivery of Awash bank of Metu branch.

3
 1.3.2 SPECIFIC OBJECTIVES
In line with the above general objective, the researcher would tries to deal the following specific
objective:

1. To assess the level of service quality offered by Awash bank of Metu branch.
2. To investigate the level of relationship between service quality dimensions and
customer satisfaction.
3. To assess the satisfaction level of customers on SERVQUAL dimensions.

1.4 SIGNIFICANCE OF THE STUDY

This research has the following importance up on completions:

 It helps the organization to identify the problems, take corrective actions and handle
their customer’s properly.
 It gives other researchers as a reference to conduct a research on the same area.
 It helps the department as a document in order to prepare some educational materials.
 It helps the researcher to get his BA Degree in Banking and Finance from the
College.

CHAPTER TWO
2. LIT REVIEW ERATURE
This chapter of the study deals with review of related documents in relation to characteristics,
nature, determinant, measurements of customer’s satisfaction and service qualities and others.

4
2.1 DEFINING OF CUSTOMER SATISFACTION
Satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a
products perceived performance or out come in relation to its expectation. Customer satisfaction
is customers’ perception that his/her expectations have met or surpassed (Kotler, 1996).

If the performance exceeds expectations, the customer is highly satisfied or delighted. A

delighted/satisfied customers is loyal customer who is keen word of mouth advertise. If the
service performance falls, short of expectation (If service delivery gap is created between
expectation of customer and available service). The service recipient is dissatisfied. Someone
buys something and he/she expects it to work properly. If it does, he/she satisfied. If it is doesn’t
he/she is dissatisfied. Customer is satisfied whenever his/her needs are met or exceeds.
Consequently, how do we know what the customer needs, wants and expects? It is very simple,
we just ask, and then we provide what the customer wants. If our customer is not satisfied, he/she
will stop doing business with us. All the things we do to achieve quality and provide excellent
service are in important if we do not work to satisfy the customer through:-

 Lowering its price or increase its services

 Increase its profitability (improving its manufacturing or investing more in research
and development.
 The company has many stakeholders including employees, dealers, suppliers and
stockholders. (Ibid).

CHAPTER THREE

RESEARCH METHODOLOGY

This section presents research methodology that the researcher used to conduct the research. It
contains the design, sources and types of data, method of data collection, sampling procedure,
sample size and target population, method of data analysis and method of data presentation.

5
3.1. RESEARCH DESIGN
Research design is the blueprint for fulfilling research objectives and answering research
questions. In other words, it is a master plan specifying the methods and procedures for
collecting and analyzing the needed information. The types of research employed under this
study where mainly descriptive type of research. The major purpose of descriptive research is
description of the state of affairs as it exists at present. This study describes and critically
assesses the Customer satisfaction in respect to service delivery in Awash bank of Metu branch

3.2. SOURCE AND TYPE OF DATA

The study is mainly forms on both qualitative and quantitative data which was collected from
primary source to its successful accomplishment. The reason behind to depending on both
qualitative and quantitative data to the study was, because of the research area that the researcher
was to investigate on related with efficiency and effectiveness.

3.3 DATA COLLECTION METHOD

To obtain reliable data, the researcher used primary data. The primary data where collect through
questionnaire. The questionnaire becomes both open and close ended questions that was fill in
and returned by the selected customers and employees of the bank.

3.4. TARGET POPULATION

Employees currently working in the Awash bank of Metu branch and customers of the branch
will be target population for the study.

3.5 SAMPLING METHOD and SAMPLE SIZE

The researcher used judgmentally sampling techniques for the employees of the banks; and used
convenience sampling for the customers because it is not easy getting people who had accounts
in Awash bank of Metu branch.
The researcher selected Awash Bank of Metu branch as a sample for the reason of that to
minimize cost, gather sufficient information and nearer to the researcher. The branch has total
30,000 (thirty thousand) customers. The researcher was select 67(sixty seven) customers based
on convenience from 30,000(thirty thousand) customers after determining sample size in the side
of customers and 12 (twelve) employees select judgmentally from 24 (twenty four) employees as
a respondent of the questionnaire. The researcher was determining sample size by applying the
following statistical formula. This used because of avoiding bias and give equal chance for the
all sample.

6
 n= Z2pqN
e2 (N-1) +Z2pq
Where: n is sample size, Z is from table of using confidence level =1.64, P is probability to
be selected, q is probability not to be selected, N is total population (customers) in main branch
=30,000, e is error of level confidence 0.1, Source (kotar, 2004).
N= [ (1.64)2 (0.5) (0.5) (30,000)] = 67
0.12(30,000-1) + (1.64)2(0.5) (0 .5)

Customers are select as a part of a respondent based on the researchers getting on the Bank to
wait the service of the Bank and employees select as a respondent that works on the front line of
the Bank.

3.6 METHOD OF DATA ANALYSIS AND PRESENTATION

After completion of data collection descriptive analysis method was used to analyze the primary
data that will collected from respondents. Finally, the results from questionnaires were presented
in written form supported by tables and percentage.

CHAPTER FOUR:

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1. INTRODUCTION
This chapter deals with analysis of data in detail on assessment of customer satisfaction respect
to service delivery in Awash bank of Metu branch. The researcher used descriptive method of
data analysis after collecting the data through questionnaire distributed to the appropriate
respondents.

7
Accordingly, in conducting this study 12 Employees and 67 customers were considered as
respondents. Among these respondents 50 (75%) of customers and 12 (50%) employees have
filled the questionnaire and returned It. 17 (25%) of the questionnaire distributed to customers
were not returned.

4.2. Background of the Respondents

The main objective of the presentation of the respondents profile is to indicate their background
with regarding sex, age, educational level and service years of employee and customer
respondents of the questionnaire.

Table 4.1 Background of employee respondents

No Item Employee response

No Percentage
1 Sex
Male 9 75%
Female 3 25%
Total 12 100%
2 Educational level
Up to high school completed - -
Certificate - -
Diploma 4 33%
BA and Above 8 67%
Total 12 100%
3 Service experience

< 2 years 4 33%

2 – 5 years 6 50%
Above 5 years 2 17%
Total 12 100%
4 Income level
5000-5500 4 33%
5500-6500 6 50%

8
 Above 7000 2 17%
Total 12 100%
Source questioner, 2018 (2010 E.C)

As illustrated in the table 4.1 item No 1, Out of 12 employee 9 (75%) of them were males and 3
(25%) of the employees were females.

As presented in table 4.1, item No 2, employees of Awash bank of Metu branch have 33% of the
respondents were in diploma and 67% of the employees have BA and above. That indicates
majority of the respondents of the employees have in BA and above that become more accessible
information about bank.

As presented in table4.1, item No 3, 50 % of employees the Bank has within 2–5years work
experience on the Bank, 17% of them have above 5 years work on the Bank and 33 % of them
have less than 2 years’ work experience on bank. This indicated that the majority of the
respondents of the employees have for 2-5 year work experience in bank this enables to deliver
quality services to the customer. As indicated on table 4.1, item No 4, 17% of the respondents of
Awash bank of Metu branch employees have above 7000 salary level, 50% of the respondents
have between 5500-6500 salary level categories and the remaining is 5000-5500 salary level.
This shows that majority of the employees get 5500-6500 salary level category that may
encourage employees to deliver quality services to satisfy customers of the bank.

Table4.1.1: Background of customer respondents

No Item Customer response

No Percentage
1 Sex
Male 35 70%
Female 15 30%
Total 50 100%
2 Age

9
 18-25 12 24%
26-35 25 50%
36-45 9 18%
Above 45 4 8%
Total 50 100%
3 Educational level
High school completed 5 10%
Certificate 10 20%
Diploma 8 16%
BA and above 27 54%
Total 50 100%
Source questioner, 2018 (2010 E.C)

As presented on the table4.1.1, item No 1, out of 50 customers 35(70%) of the respondents of the
customer were males and 15(30%) of them were females. As shown on table No 2, item2, 50%
of the respondent of the customer were under age group of 26-35years, 24% of them were age
group of between 18-25 years,18% of the customers were the age group of 36-45 years and 8%
of them were age group of above 45 years. This shows that majority of the customers the
respondent are in a productive age.

As indicated on table 4.1.1, item No 3, 54% of the customers have BA and above education
level, 16% of them were in diploma level, 20% and 10% of the respondents of customers were in
certificate and up to high school education level. This shows that majority of the customers the
respondent have BA and above education level that enables to use more information about the
banks services.

4.2 CUSTOMER RETENTION IN AWASH BANK OF METU BRANCH

Table4.1.2. Customer retention in Awash bank of Metu branch
No Item Customer response
No Percentage
1 How long you have been a customer of
Awash bank of Metu branch?
Less than 2 years 15 30%
2-5 years 20 40%

10
 Above 5 years 15 30%
Total 50 100%

Source questioner, 2018(2010) EC

As illustrated in the table4.1.2, 30% of the customers of the bank have less than two years, 40%
of them were 2-5 years and 30% of them were above 5 years that they become customer of
awash bank of Metu branch.

This depicts that the majority of the customers (above50%) of the respondents retain in bank for
more than two years as a customers in awash bank of Metu branch.

4.3.CUSTOMER PERCEPTION AND EXPECTATION ABOUT AWASH BANK

SERVICES OF METU BRANCH
Table 4.1.3: Customers perception, expectation and Satisfaction on Awash bank of Metu branch
Services

No Parameters Customers response

No Very high High Medium Low Total
1 Before you are customers of the 9 10 25 6 50
Bank, how do you rate your
% 18% 20% 50% 12% 100%
perception that you have?
2 While you are being the customers of No 6 10 25 9 50
Awash bank of Metu branch, the
actual service you get meets % 12% 20% 50% 18% 100%

expectation, then satisfy with the

service?
Source questioner, 2018(2010 E.C)

Table 4.1.3 defines the level of customer perception. Item No1, 50% of the respondents of the
customer have a medium perception, 20% of them have high perception, 18% of them have a
very high perception and 12% of the respondents have a low perception as before being as a
customer is this indicates that most customers have a good image to accept the Bank.

11
As presented on the table 4.1.3, item No 2, 50% of the respondents have a medium satisfaction
level, 20% of them have high satisfaction, 18% of them have low Satisfaction level and 12% of
them have very high satisfactions. This shows that the majority of the respondents have above
medium satisfaction level of the actual service with their expectations about the Bank. Even if
some of the customers may have low satisfaction level with the actual service they get with
comparing to from their perception (expectation) as before being a customer of the Bank.

Therefore, concerning customer’s perception, 50% of the respondents of the customer have a
medium level of perception as before a customer of the bank. In addition to this. 40% of the
customers that the actual service acquired from the Bank meets their expectation by comparing
before and as being a customer of the bank a medium level this indicates there is no much
difference with the expectation (perception) and the actual service even if not delighted.

4.4. Customer satisfaction level

Table 4.1.4: Employees response on customer satisfaction level

There is good way of treating The customer of awash bank

Items customers in awash bank of Metu satisfied with the Bank service
branch
No Percentage (%) No Percentage (%)
Strongly agree 2 17% 2 17%
Agree 8 66% 9 75%
Disagree 2 17% 1 8%
Strongly disagree - - - -
Total 12 100% 12 100%
Source questioner, 2018 (2010 E.C)

As presented on the table 4.1.4, 66% of employees responded agree, 17% of them strongly agree
and 17% of them disagree with the ways of treating customers in the bank. In addition to this,
75% of the respondents of the employee said agree, 8% of them disagree and 17% of them
strongly agree with customer satisfaction about bank services.

As presented on table 5, majority of the respondents of the customers have a medium satisfaction
level with the Bank service as expected before being a customer of Awash bank of Metu branch.

12
Whereas majority of the respondents from the employee said that Awash bank of Metu branch
have good customer treatment and satisfied with our service.

In general majority of the employee respondents (above 75%) said that Awash bank of Metu
branch have a good ways of customer treatment and deliver quality services to satisfy customers.

4.5. Customer complain handling mechanisms in Awash bank of Metu branch

It is a mechanism that the bank used to gather customer problems about the bank services and the
means to answer or solve these problems. This is because complaints are important source of
information and indication to the quality perception of customers.

Table 4.1.5: Response on customer complain handling mechanism of the Bank

Parameter Customer response Employee response

No No Percentage No Percentag
(%) e (%)
Is there any customer complain handling
mechanisms on Awash bank of Metu
1 branch?
Yes 35 70% 12 100%
No 15 30% - -
Total 50 100% 12 100%
Source questioner, 2018(2010 E.C)

As presented in table4.1.5, 70% of the respondents of customers said there is complain handling
mechanisms. While 30% of them reported that there is no complain handling mechanisms and
portray such reasons: - there is no suggestion boxes (folders) and the Bank does not invite to give
feedback on its service to correct it. On the employee sides of awash bank of Metu branch said
that there is 100% of complain handling mechanisms by using suggestion box (folder), contact
to the supervisors as soon as possible, interviewing and asking questions and direct contact with
service facilitators of the Bank. This indicates that the majority of the respondents express their
complaint, suggestion and interests freely to the Bank.

Therefore, Regarding with customer compliant handling mechanism, 70% of the customers and
100% of employees agree that, there is customer compliant handling mechanisms which are

13
suggestion boxes (folders), contact with the supervisors and the service facilitators as the Bank
assigned.

4.6. Tangibility of the service

Table4.1. 6: Assessment on tangibility

Employees become well dressed and appealing The technology and equipment
used by awash bank of Metu branch
, satisfy customers
No Percentage No Percentage (%)
(%)
Strongly disagree 4 8% 2 4%
Disagree 8 16% 2 4%
Neutral 1 2% 3 6%
Agree 17 34% 35 70%
Strongly agree 20 40% 8 16%
Total 50 100 50 100%
Source questioner, 2018 (2010 E.C)

According to table4.1.6, about the well dressing and attractiveness of Awash bank of Metu
branch employees, 34% of customers response have been agree and strongly agree (40%), on
other hand, some customers response were strongly disagree (8%) disagree (16%) and neutral
(2%) of the idea.

In addition to this 70% and 16% of customers said, the technology and equipment that Awash
bank of Metu branch uses satisfy customers. However, 4% and 4% of customers’ responses
shows disagree and strongly disagree with the technology and equipment of the bank that satisfy
customer needs. Additionally 6% of the customers said “neutral” about the idea. According to
the table7, personal appearance and technology for communication has a psychological impact
on customers and help the organization to create good customers images and expectations,
respectful responses from the Awash bank of Metu branch the reverse is also true.

Therefore, Concerning with tangibility, above 70% of customers agree that employees dressing
is attractive, this helps to identify easily and leads customer satisfaction, whereas on the
technology and equipment used by the Bank leads dissatisfaction on customers because 40% of

14
 the respondents answered disagree with the technology and equipment used by the bank to
satisfy customers.

4.7. Service Reliability

Service reliability is one of the basic factors in service quality determination, which brings
customer satisfaction because reliability is the customers own reflection on the bank services.
Awash bank of Metu branch Service reliability dimensions that used to measure the satisfaction
levels of customers and their percentages are shown in table 4.1.8 below.

Table4.1.7: Response on the reliability of Awash bank of Metu branch

Parameters The Bank promised to do something Keep customers record accurately

it to do so…
No of respondents Percentage (%) No of respondents Percentage (%)
Strongly disagree 3 7% 1 2%
Disagree 9 21.4% 4 10%
Neutral 14 33.33% 6 14%
Agree 14 33.33% 21 50%
Strongly agree 2 5% 10 24%
Total 42 100% 42 100%
Source questioner, 2018 (2010 E.C)

The above table 4.1.7 show, how Awash bank of Metu branch is reliable for customers in
keeping their records accurately and providing service one are promised. In this record 33% of
customers said, the Bank promise to do something to do so is “neutral on the issue. 33% and 5%
of customers said agree and strongly agree. On the other hand 21.4% and 7% of customers
responded were disagree and strongly disagree respectively on bank of reliability on its
customers. As presented on table8,50%of the customers responded agree,24% strongly
agree,14% neutral,10% disagree and 2% strongly disagree about the record keeping accuracy of
Awash bank of Metu branch The majority of the respondents responded that Awash bank of
Metu branch have a good customer record keeping way due to this the customer become
attracted.

In general, regarding reliability, about 33.3% of customer respondents were neutral with the
Bank promised to do something to do so and keep customers record accurately.
15
 4.8. Responsiveness of Awash bank of Metu branch employees to customers
Responsiveness of Awash bank of Metu branch employees to customers for any problem in the
service delivery, showing willingness for its customers are enables the bank to retain its
customers and attract new customers because this creates reputations within and across the
market place. To increase degree of responsiveness, the speed of service delivery is also the
basic issue in customer satisfaction. Some parameters that measure employee responsiveness are
presented in the following table 4.1 .8 below.

Table 4.1.8: Responsiveness of Awash bank of Metu branch Employees

Ite Parameters Strongly Disagree Neutra Agre Strongl Total

m disagree l e y Agree
No
Employees show interest in solving No 2 4 6 30 8 50
1 customers problem % 4% 8% 12% 60% 16% 100%
2 Employees have willingness to NO- 4 25 7 10 4 50
answer customer questions % 8% 50% 14% 20% 8% 100%

3 Employees are punctual in the No 4 6 4 25 11 50

delivery of services % 8% 12% 8% 50% 22% 100%

4 Employees never too busy to respond No 2 4 4 12 28 50

customer request promptly % 4% 8% 8% 24% 56% 100%
Source questioner, 2018 (2010 E.C)

Table 4.1.8: shows different results with different responses, the following points are analysis
and interpretation of each item.

Item 1:- of the table 4.1.8: shows that 4% of the respondents are said to be strongly disagree
with the awash bank of Metu branch employees interest to solve customer’s problems, 8%
disagree, and 12% neutral of the issue. On the other hand 16% and 60% of the customers said
that the employees have interest to solve customer problem. This indicates that most of the
customers of Awash bank of Metu branch satisfied with this regard.

Item 2:- of the table 4.1.8 shows that 8% of the respondents have been strongly disagree with the
awash bank of Metu branch employees willingness to answer customer orders, 50% of the

16
 customers said disagree with the issue, that the employees don’t have willingness to answer
customer questions and 14% of customers said, neutral, 8% and 20% of the bank customers said
strongly agree and agree respectively. That indicates very much satisfied with the employee’s
willingness to answer questions. But most of the customers of the bank are dissatisfied with the
employees’ willingness to answer the customer order accurately and efficiently.

Item 3:- of the table 4.1.8 shows that 8% the customers said strongly disagree about the awash
bank of Metu branch employees punctuality in the delivery of service, while 12% of the
customers were responded “Disagree and 8% of the customers said neutral on the positive sides,
22% and 50% of the customers of the bank said strongly agree and agree with the punctuality of
employees with the service delivery.

Item 4:- of the table 4.1.8 shows that Majority of the customer (56%) responded that they would
strongly agree and 24% of the customers were agree about employee’s response on customers
request promptly. While 4%, 8% and 8% of the respondent said strongly disagree, disagree and
neutral respectively on the above issue. This indicates that majority of the customers were
satisfied with the employees response but some of the customer’s become dissatisfied with the
Awash bank of Metu branch employee, response on their request to get the service.

Therefore, regarding the responsiveness of the bank employees, above 60% of the customers
reported that, Awash bank of Metu branch employees show interest in solving customer
problem, delivery service at the time and employees never busy to respond customer request
promptly whereas above 50% of the customers said that awash bank of Metu branch employees
don’t have willingness to answer customer questions, this leads to customer disaffection.

4.9 Empathy and Assurance of the Bank

Table 4.1.9: assessment on the empathy and assurance of Bank

No Parameters Strongly Disagree Neutral Agree Strongly Total

disagree Agree
1 The Bank’s operating hour No 2 8 4 24 12 50
convenient for all its customers % 4% 16 8% 48% 24% 100%

Employees have willingness to No 5 10 3 10 22 50

2 help customers fairly. % 10% 20% 6% 20% 44% 100%

17
 Source questioner, 2018 (2010 E.C)

The above table 4.1.9 elaborates that 48% of customers said agree on Awash bank of Metu
branch operating hour convenient for all its customers, 24% strongly agree, 16% disagree, and
4% strongly disagree the remaining was responded neutral about the convenience of Awash bank
of Metu branch operating hour respectively. This shows that majority of the respondent said, the
bank operating hours satisfied the customers, but some customers become in different.

In addition to this, the above table illustrates 10% and 20% of the customers of the bank said,
strongly disagree and disagree about employee’s willingness to help customers fairly. While, 6%
were natural, 44% strongly agree and 20% agree with employee willingness to treat customers
fairly, this indicates that there is problems on the treating of customers on awash bank of Metu
branch because some of the customers respond disagree, strongly disagree and indifferent.

Therefore, majority of the respondents (above 72%) of customers said that the Bank operating
hour is convenient for all its customers, even if 20% of they were not satisfied with the Bank
operating hours. Lastly, 30% of customers responded that employees don’t help customers
fairly in awash bank of Metu branch even though 44% of customers responded on the fairness of
helping customer on the service delivery time.

4.10. Service quality of Awash bank of Metu branch

Table 4.1.10: Service quality of Awash bank of Metu branch

No Parameters Employees response

No Percentage
Awash bank of Metu branch is improving
1 its service quality
Yes 11 92%
No 1 8%
Total 12 100%
Source questioner, 2018 (2010 E.C)

18
 As presented on the above table4.1.10, 11 (92%) of the employees agree awash bank of Metu
branch improves its service quality, while 1 (8%) of them said no. This shows that the Bank
improves its service delivery system to satisfy customers and the employees who are said “Yes”
specify the following ways of its quality improvement. Such as;

 By acquiring world class Bank Technology

 Providing up to date service like mobile Banking, Internet Banking, Core
banking, ATM, etc.
 Giving training for employees
 Online system and one window system etc.
Therefore, majority of the employees said that Awash bank of Metu branch improves its service
quality to satisfy its customer by acquiring world class Bank technology, providing update
service like mobile and internet Banking and online system and one widow system etc.

4.11. Satisfaction Level of customers

Sampled customers also asked to indicate their satisfaction level with different dimensions and
The Overall services of the bank that gives its customers. In addition to customers the employees
of the bank also responded the level of customer satisfaction as presented below table 4.1.12.

Table 4.1.11: Satisfaction level of customer’s

No Item Customer response Employee response

No Percentage (%) No Percentage (%)

1 In general, how do you rate

customer satisfaction level of
the Bank
Very high 7 14% - -
High 14 28% 7 58.33%
Medium 22 44% 4 33.33%

19
 Low 7 14% 1 8.33%
Total 50 100% 12 100%
Source questioner, 2018 (2010 E.C)

The above table 4.1.11 shows the satisfaction level of awash bank of Metu branch customer from
the respondents (Both Customers and Employees), as presented on the table, 44% customer
respondents said that they are satisfied in medium level, 28% of customer highly satisfied, 14%
customers are very highly satisfied and 14% of customers said that customer satisfaction level on
the bank services are low. While 58.33% of employees said that customers are highly satisfied,
33.33% of employees said customers are satisfied in medium level and finally 8.33% of
satisfaction level is low. The finding shows that the majority of the customer’s satisfied in a
medium satisfaction level.

Therefore, on the satisfaction level of customers of Awash bank of Metu branch 58.33% of the
respondents of the employee respond that customer satisfaction level on the Bank service were
satisfactory even if the customers not become, delighted while 44% of the customer’s responses
were on medium level of satisfaction on the bank services.

CHAPTER FIVE

SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION

5.1 Summary of finding

 As it is concluded from the respondent’s view, majority of the respondents of the
employees are males and the respondents have BA degree and having 2-5 years’ work
experience and paid from 5500-6500 salary level category in Awash bank of Metu
branch.
 The researcher concludes that majority of respondents of the customers are in a
productive age having BA degree and above. And also (above50%) of the respondents
retain in Awash bank of Metu branch for more than two years as a customers in bank.
 What obtained from the respondents indicates that, the majority of the respondents have
above medium satisfaction level of the actual service with their expectations about the
Bank. Even if some of the customers may have low satisfaction level with the actual

20
 service they get with comparing to from their perception (expectation) as before being a
customer of the Bank whereas majority of the respondents from the employee said that
the bank have good customer treatment and satisfied with our service.
 The information obtained from the respondents Regarding with customer compliant
handling mechanism indicates that, majority (above 70%) of the customers of the
respondents express their complaint, suggestion and interests freely to the Bank and 50%
of employees agree that, there is customer compliant handling mechanisms which are
suggestion boxes (folders), contact with the supervisors and the service facilitators as the
Bank assigned.
 As it is concluded from the respondents view, Concerning with tangibility, majority
(above (70%) of customers agree that employees dressing is attractive, whereas on the
technology and equipment used by the Bank leads dissatisfaction on customers because
medium (40%) of the respondents answered disagree with the technology and equipment
used by the bank to satisfy customers.
 The information obtained from the respondents’ point of view, In general regarding
reliability shows, about above 45% of customer respondents were agree with the Bank
promised to do something to do so and keep customers record accurately.
 The information gathered from the customer respondents regarding the responsiveness of
that employees of Awash bank of Metu branch , indicates, that the majority (above 60%)
of the customers reported that, Awash bank of Metu branch , employees show interest in
solving customer problem, the punctuality of employees with delivery service at the time
and employees never busy to respond customer request promptly, whereas above 50% of
the customers said that the bank employees don’t have willingness to answer customer
questions, this leads to customer disaffection.
 The researcher concludes that majority of the customer respondent said, the bank ,
operating hours and the employees fairness of helping customer on the service delivery
time satisfied the customers even if more than 20% of they were not satisfied with the
Bank operating hours and the employees fairness of helping customer on the service
delivery time in awash bank of Metu branch
 majority of the employees said that the improves its service quality to satisfy its customer
by acquiring world class Bank technology, providing update service like mobile and
internet Banking and online system and one widow system etc.

21
  The researcher identified, that on the satisfaction level of customers of the bank of
branch , 58.33% of the respondents of the employee respond that customer satisfaction
level on the Bank service were satisfactory even if the customers not become, delighted
while 44% of the customer’s responses were on medium level of satisfaction on awash
bank of Metu branch services.
 Generally the finding shows that the majority of the customer’s satisfied in a medium
satisfaction level.

5.2. Conclusion
The researcher starts the study having an objective to assess the degree of customer satisfaction
in respect to the service delivery of Awash bank of Metu branch. By distributing questionnaires
to the customers and employees of the branches of the bank and by analysing and presenting the
collected data, the researcher draws the following conclusions.

The employee education level, work experience and salary level category in Awash bank of
Metu branch enables the employee to become more accessible information about awash bank of
Metu branch . to deliver quality services to the customer and to get satisfactory salary that may
encourage employees to deliver quality services to satisfy customers of the bank respectively.
(Employees’ satisfaction level)

The majority of the customers the respondent are in a productive age, holder of BA degree and
above education level and retain in Awash bank of Metu branch and for more than two years as a
customers in the bank. This enables the customers to be profitable, to use more information
about the banks services and not to switch to other banks.(Customers’ satisfaction level)

As researcher concludes the customers the respondent are in a medium level regarding to actual
service acquired from the Bank meets their expectation by comparing before and as being a
customer of the bank, this indicates there is no much difference with the expectation (perception)
and the actual service even if not delighted, but majority of the employee said that the bank have
a good ways of customer treatment and deliver quality services to satisfy customers. (Customers’
satisfaction level)
Regarding with customer compliant handling mechanism, majority of customers and employees
agree that, there is customer compliant handling mechanisms which are suggestion boxes
(folders), contact with the supervisors and the service facilitators as the Bank assigned and the

22
customer respondents express their complaint, suggestion and interests freely to the Bank. This
indicates that there is good relation between the bank and customers. (Customers’ satisfaction
level)

Concerning with tangibility, the researcher concludes that the employees dressing is attractive,
this helps to identify easily and leads customer satisfaction, whereas on the technology and
equipment used by the Bank leads dissatisfaction on customers.(Customers’ satisfaction level)
Regarding reliability, the researcher generalized, that the Bank promised to do something to do
so and keep customers record accurately. Due to this the customers become attracted.
(Customers’ satisfaction level)

In relation to the responsiveness of Awash bank of Metu branch. employees, the researcher
identified, that Awash bank of Metu branch, employees show interest in solving customer
problem, delivery service at the time and employees never busy to respond customer request
promptly whereas above 50% of the customers said that the bank employees don’t have
willingness to answer customer questions, this shows customers of awash bank are in a medium
satisfaction level. (Customers’ satisfaction level)

The researcher recognized that the Bank operating hour is convenient for all its customers and
employees are the fair in helping customer on the service delivery time. , even if some of they
were not satisfied with the Bank operating hours and employees are help customers fairly in the
bank, this shows customers of awash bank are in a medium satisfaction level.(Customers’
satisfaction level)
The study generalized that the awash bank of Metu branch improves its service quality to
satisfy its customer by acquiring world class Bank technology, providing update service like
mobile and internet Banking and online system and one widow system etc. This shows
customers of Awash bank are in a medium satisfaction level. (Customers’ satisfaction level)
The researcher identified that the satisfaction level of customers of from the employee point of
view that customer satisfaction level on the Bank service were satisfactory even if the customers
not become, delighted while medium of the customer’s responses were on medium level of
satisfaction on bank services. This shows customers of Awash bank are in a medium satisfaction
level. (Customers’ satisfaction level)
Generally, the researcher concluded that the majority of the customer’s satisfied in a medium
satisfaction level. (Customers’ satisfaction level)

23
5.3. Recommendations
Even though the bank has achieving its objectives efficient dynamic and competitive in the
international market, much coercion should be taken to make its customers satisfied One
organization that can be made customer services at this time is that customers satisfaction is an
organizations best asset and customer today’s demand personal attention from business they
spend their money.

Therefore, customer services are moving up the priority list in today’s business and it is
consuming more of their time and budget. In today’s business customer is in the driver’s seat,
with enough muscle to dictate business terms and money to pay for choices. Based on the
conclusion and the finding from the survey, the following recommendations were forwarded:

 In Awash bank of Metu branch the employees are experienced and educated that enable
the bank to give quality service for customers. So the bank should to continue this
strength and give various training to its staffs.
 On the other hand females employees’ participation are low. So that the bank should
emphasis to increase the number of female employees in the bank through different
mechanisms like, affirmative action.
 The bank should provide incentives to its employees, these in the front line, to motivate
them to serve customer’s best, front line employees should be trained to act in a manner
that recognizes customers as a valuable asset. To motivate employees and get there
commitment, the bank should offer an attractive benefits in different forms that
recognizes the contribution of their efforts towards the overall success of the bank.
 They should establish an efficient and effective ways of customer complaint handling
procedures and communicate those procedures with customers. This can be done through:
 Establish independent sections which are totally responsible for customers’ complaints
only.
 Provide immediate actions for customers complain.
 Putting suggestion box in place where customers can easily accesses.
 Increases the awareness of employees towards customers complains.
 Customers want quality services and products. Therefore, the bank should improve its
service quality and the bank give attention for both new customers as well as retaining

24
 the existing ones by using different ways that includes Core banking, ATM, One window
system, mobile and internet banking etc.
 The bank’s managements should be flexible to cop up with the changing environment
and continuous improvement of customer satisfaction by providing quality service.
 Generally the bank should make clear its services for its customers as well as its physical
components make clean, attractive. Comfortable and try to make customers feel satisfy
when they come to the bank.

REFERENCE

1. Awanet, H.M Bukhari, K.S and Anam I, A (2011), "Service Quality and Customer
Satisfaction in the Banking Sector: A Comparative Study of Conventional and Islamic
Banks in Pakistan", Journal of Islamic Marketing. 2 (3): 203 – 224.
2. Gebre, Y. (2010, June). Customers’ Perception of Service Quality in Ethiopia banking
sector: An Exploratory study. (Master’s Thesis For partial fulfillment of the requirements
of MBA). Addis Ababa, Ethiopia.
3. Haq W. and Muhammad B. (2012) Customer Satisfaction: A Comparison of Public and
Private Banks IOSR Journal of Business and Management. 1 (5): 01-05.
4. John Lvens and Colin Shaw (2002, 2005), Building Great Customer Experience Creative
Print and Design Wales Inc.
5. John TschoHl (1991), Achieving Excellence through Customer Service. USA.
6. Keith Denton (1998), “How to Give Quality Services To Your Customers.” Gulf
Publishing Company, Houston, Texas.
7. Kotler P. and Gray Armstrong (1996), Principles of Marketing 7 th ed. Englewood
Clift’s, NJ. Prence Hall.
8. Kotler P. (2006), Marketing Management, 12th Ed. Person prence- Hall.

25
9. Kotler P. (2008), Principles of Marketing, 14th ed. Palatino by s4carlisle Publishing
Services.
10. Kotler (2010), Principles of Marketing; 13th edition, Pearson education.
11. Mboma, L (2006) ATM and Customer Satisfaction: A Case of the Banking Industry in
Tanzania. The African Journal of Finance and Management.15 (1): 48-70.
12. Mukhtar A, Inam H, Ashiq H, Amjad R, and Nasar H (2014). Customer Satisfaction
towards Financial Services of Banks: An Empirical Case Study from Bahawalpur,
Pakistan. Journal of Marketing and Management. 2 (1): 94-111.
13. Oduro, R., (2013). Factors That Determine Customer Satisfaction Level in Banking
Institutions: Evidence from Ghanaian Banking Industry, Asian Journal of Business and
Management Sciences. 2 (7): 01-13.
14. Oliver, R. (1997), Satisfaction: A Behavioural Perspective on the Consumer, New York:
McGraw Hill.
15. Palmer, Adrian (1995), Service Marketing Principals and Practices “New Tersy, Hall
Lnc.
16. Panda, T. K. (2003).Creating Customer Lifetime Value through Effective CRM in
Financial Services Industry.Journal of Services Research. 2(2): 157-171.
17. Parasuraman, A. Berry, L. and Zeithaml, V.A. (1985),A Conceptual Model of Service
Quality and its Implication for Future Research, Journal of Marketing, 49(4), 41-50.
18. Parasuraman, A.Zeithaml, V. A. and Berry, L. (1988), SERVQUAL: A Multiple-Item
Scale for Measuring Consumer Perceptions of Service Quality, Journal of Retailing,
64(spring), pp. 12-40.
19. Parasuraman, (1990), Assessing and Improving Service Performance for
MaximumImpact, New Delhi: TataMcGRawHall.
20. Parasuraman, A, Zeithaml, V. A., and Berry, L. (1994), Reassessment of Expectations as
a Comparison Standard in Measuring Service Quality: Implications for Further Research,
Journal of Marketing, 58(1), pp.111-125.
21. Shanka, M.S (2012) Bank Service Quality, Customer Satisfaction and Loyalty in
Ethiopian Banking Sector, Journal of Business Administration and Management Sciences
Research. 1(1): 001-009.

26
 22. Singh, D., Verghese, M., &Wadhwa D. S., (2011), A Study on Factors Influencing
Employee Job Satisfaction -A Study in Cement Industry of Chhattisgarh.International
Journal of Management and Business studies. 1 (3)
23. Tsoukatos, E., Mastrojianni, E. (2010), Key Determinants of Service Quality in Retail
Banking, EuroMed Journal of Business, 5(1), 85-100
24. Yamane, T. (1967), Statistics, an Introductory Analysis, (2nd ed.), New York: Harper and
Row.Zeithaml V.A. and Berry L.L. (1985), Problems and Strategies in Services
Marketing, Journal of Marketing, 49, 33-46
25. Zenithal.Vlaries and Binter (2003), Integrating Customer Focus across Firms, New Delhi:
Tata McGraw Hill.

Appendix I
A questionnaire filled by employee of Awash bank of Metu branches.
Dear Respondent!
This questionnaire is designed by the final year degree in banking and finance student of MaU
for research purpose on the topic: Assessment of customer satisfaction in respect to service
delivery in case of Awash bank of Metu branch. You are kindly request to give your precious
time and give your response to the questions genuinely. Please feel free, every things strictly
confidential. You are not required to disclose your name and other personal identification.
Put “” for your response.
Part I: Personal information and general questions about the Bank

1. Sex:- Male  Female 

2. Education level:- Certificate  Diploma  BA and above 
3. Current basic salary level category
3000-3500  3500-5000  Above 5000 
4. How long have you serve the Bank’s

27
 Less than 2 year  2-5 year  above 5 years 
5. Is there any customer complaint handling mechanism
Yes  NO  why specify your reason__________________

6. The customers are satisfied with the Bank’s services

Strongly disagree  Disagree  Agree  Strongly agree 
7. Your answers for question “6” is strongly disagree or disagree, specify the reason that leads
dissatisfaction? _______________________________________
________________________________________________________________________
8. Awash bank of Metu branch is improving its services quality?
Yes  No 
9. If your answer for question “8” Yes “specify your reason that the way it’s improving?
________________________________________________________________
10. In general, how do you rate customer satisfaction level in the Bank
Very high  High  Medium  Low 
11. Can you suggest ways of customer complain handling mechanisms?
________________________________________________________________________
____________________________________________________________________

Appendix II
A Questionnaire to be filled by customers of the Awash bank of Metu branch.
Dear respondents!
This questionnaire is designed by the final year degree in Banking and Finance student of MaU
for research purpose on the topic: Assessment of customer satisfaction in respect to service
delivery in the case of Awash bank of Metu branch. You are kindly requested to give your
precious time and give your response to the questions genuinely. Please feel free, everything
strictly confidential. You are not required to disclose your name and other personal
identification.
Put this mark (“”) for your response.
Part I: Personal information and general questions about the Bank
1. Sex:- Male  Female 

28
 2. Age:- 18-25 year  26-35 year  36-45 year  Above 45 year 
3. Educational level:-
High school completed  Certificate  Diploma  BA and Above 
4. For how long you have been a customer of the Bank
Less than 2 year  2-5 year  6-10 years  above 10 years 
5. Before you are the customer of the Bank, how do you rate your expectation that you have
on the Bank
Very high  High  Medium  Low 
6. While you are being the customer of the Bank, the actual service you get meets your
expectation?
Strongly disagree  Disagree  Strongly agree  Agree 
7. In general how do you rate your satisfaction level with the Bank’s services
Very high  High  Medium  Low 
8. Do you express your complain about the Bank services freely?
Yes  No,  why, specify___________________________

Part II- Rate the front desk employees (Tellers) based on the SERVQUAL dimensions.
SERVQUAL dimensions
Disagree
Strongly

Strongly
disagree

Neutral

Agree

Agree
1. Employees become well dressed and appealing …
2. The technology and equipment used by the Bank is
satisfying customers….
3. The Bank promised to do something it do so…
4. Keep customers record accurately
5. Employees show interest in solving customer’s
problem ….
6. Employees have willingness to answer customer

29
 questions…
7. Employees are punctual in the delivery of services…
8. Employees never be too busy to respond customer
request promptly ….
9. The Bank is operating hour convenient for all its
customers….
10. Employees have willingness to help customers
fairly…….

30