Business and Economics Journal

The Effect of Perceived Service Quality on Customer Satisfaction in Private Commercial Banks of Ethiopia: The Case of Selected Private Commercial Banks at Dire Dawa Administration

Abstract

Jonathan B Dawit and Ubah Adem

Financial and banking service has become more vital for the development of an economy especially for the developing country like Ethiopia. All Ethiopian commercial banks, whether public or government, compete on quality service to satisfy the customers to win and sustain in the competition. This study focus to study the effect of perceived service quality on customer satisfaction in private commercial banks of Ethiopia. To realize this, 375 respondents was taken from 10 private commercial banks via self-administer questionnaires. Customers was agreed and satisfied on service quality dimensioned delivered by their respective banks. Multiple regression result showed that Empathy, Reliability and Responsiveness predicted 61.2% of variation on customer satisfaction.