Abstract:
This study aimed to examine the impacts of service quality on customer‘s satisfaction in
Abyssinia bank by using SERVQUAL model. Both descriptive and explanatory research design
were employed by using quantitative research approach. Primary data was gathered from from
the customers’ of BOA from selected branches. To attain this objective, questionnaire were
designed categorized under five dimensions of the SERVEQUAL model. The sample was
selected based on convenience sampling . The collected data were analyzed with the help of
SPSS version 25. The independent variable that service quality of the banks is measured by
using the five service quality dimensions of tangibility, reliability, responsibility, assurance and
empathy and while customer satisfaction is considered for dependent variable. A total of 398
customer in Abyssinia bank have participated in this study. Gap analysis was used to determine
the perceived importance and satisfaction on each dimension of service quality The findings of
the study show the difference between expectation and perception, responsiveness and empathy
are the most important dimensions positive gap are 0.01 but the othe three dimensions reveal
negative gap values which signify that the expected service exceeds the actual perceived
service. There is positive linear relationship between the service quality and customer
satisfactions. Regression analysis was conducted to test the relationship between service quality
and levels of customer satisfaction. Results indicated that reliability, tangibility, assurance and
empathy have significantly positively influenced customer satisfaction .The study further points
out that keen attention should be paid to polish service quality. Because, service quality are
inter related with customer satisfaction