EFFECT OF E-BANKING SERVICE QUALITY ON CUSTOMER SATISFACTION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA ARBA MINCH BRANCHES

Abstract

The main purpose of this study is to examine the effect of E-banking service quality on customer satisfaction in case of CBE Arba Minch Branches. The study was an explanatory research design and used the quantitative research approach. The structured Likert scale- based questionnaires were distributed and collected from 204 conveniently selected E- banking service users of CBE Arba Minch, Secha, Sikela and Nechsar branches. The data was analyzed by undertaking the descriptive statistics, Pearson correlation and multiple regression analysis. Results of the study revealed that among the five service quality dimensions (reliability, responsiveness, assurance, empathy and tangibility), assurance has the highest positive effect on customer satisfaction followed by reliability and responsiveness whereas empathy and tangibility have relatively less positive effect on customer satisfaction. Furthermore, the results generated by E-banking service quality dimensions explain significant variation in customer satisfaction. As a result, the researcher concludes that E- banking service quality has positive and significant effect on customer satisfaction.