WALLEGA UNIVERSITY, NEKEMTE CAMPUS

FACULTY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

RESEARCH TITLE

1, ASSESSMENT OF CUSTOMER SATISFACTION ON BANKING SERVICE

DELIVERY IN COOPERATIVE BANK OF OROMIA IN THE CASE OF NEKEMTE
BRANCH

2ASSESSMENT OF STRESS MANAGEMENT IN THE WORK PLACE

PRACTICE (INCASE OF COMMERCIAL BANK OF ETHIOPIA IN NEKEMTE

TOWN KOMTOBRAnCH)

SECTION ‘A’

BY: GROUP NAME ID NO

1. Belay terefa …………………………………….………. WU1310790

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 2. BURTUKAN EMANU…. ……………………………………….………….….WU005
3. BIRANE ETANA…………………………………………………….…..WU040
4. BUZAYO BEKELA ……………………………..………………………...…..WU009
5. SOROME TUKUYE…..………………………..………………………….…086

ADVISOR: Mr. TOLAMARIYAM G. (MPA)

JUNE, 2023

NEKEMTE, ETHIOPIA

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 DECLARATION
We the undersigned, declare that this research paper is our original work and that all sources of
the materials in the research paper have been duly acknowledged. The matter embodied in this
research work has not been submitted earlier for award of any degree or diploma to the best of
our knowledge and belief.
Group Name Id No Signature: Date
1. ERGALEM TESFAYE………….…..….034 __________ ___________
2. AKALU MULATU…. …………………..005 __________
3. GAMANE BEYENE……………………040 __________
4. ASTER WAGARI ………………………009 __________
5. SOROME TUKUYE…..…………………086 __________

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Approval
This is to certify that this research paper assessment of customer satisfaction on banking
service delivery in cooperative bank of Oromia in the case of Nekemte branch has been
under my supervision for the award of Bachelor of Arts (BA) degree in Business Management.

Adviser Name: Mr. TOLAMARIYAM G. (MPA)

Signature _________________ Date_________

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 Acknowledgement
Our special gratitude goes to our advisor Mr. TOLAMARIYAM G. (MPA) for his comments,
suggestion and offering useful hints throughout the research development and reporting writing.
We thankful to all staff of Rift Valley University library for giving all kinds of assistance in
preparing this research Finally, we also thanks to Rift Valley University Nekemte campus for
giving this great chance in undertaking research last but not least, our special attitude to W/rt
Mitke Agonafir for her helping us in type writing.

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IV
Abstract
This research aims to examine Customer satisfaction on banking service delivery in the banking
industry with respect to the barriers which can influence firms from taking advantage of
Customer satisfaction system. The study is conducted based on the data gathered from
cooperative bank of Oromia Nekemte branch in Nekemte Town. The research design was
descriptive research methods. More over both primary and secondary data from the bank was
collected. The primary data sources was from interview and questionnaire, while secondary data
include the documented sources like journals, books, and the annual report of the banks. The
respondents of interview were selected with survey method. The respondents were managers and
employees of the banks. The sampling technique that is used for the study is probability sampling
techniques. Customers of the bank would be classified in to different groups (strata) based on
their type. i.e. current account holder, saving account holder and one time customer and
customers from each group was selected as a respondent using random sampling technique. The
size of strata i.e. current account holder is 6,500, the size of strata i.e. saving account holder
20,200and the size of strata the researcher is employ proportion allocation method to determine
the sample size. The data from both sources was analyzed and interpreted using table and
percentage. Based on the analysis and finding, conclusions and recommendation was made. The
result of the study indicated that, the major barriers of banking industry faces in the Customer
satisfaction on banking service delivery factors which includes, security risk, lack of trust,. The
study also identified perceived ease of use and perceived was use fullness as a driver Customer
satisfaction system.
.

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Key word: Customer satisfaction on banking service delivery

List of Table
Table 4.1 Background information of Respondents…………………………………13
Table 4.-2 a I am satisfied with the bank’s complete range of services…………..…15
Table 4.-3. I am satisfied with the performance of the employees of this bank……..15
Table 4.-4. I am satisfied of being a client of this bank…………………………..…16
Table 4.5. I am satisfied with the bank employees’ professional competence………17
Table 4.6. I am satisfied with the quick service of this bank………………………...18
Table 4.7. I am satisfied with the respectful behavior of employees……………..….18
Table 4.8. General Satisfaction towards core banking……………………………...19

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 Table of Contents
DECLARATION..........................................................................................................................................I
Approval.....................................................................................................................................................II
Acknowledgement......................................................................................................................................III
Abstract......................................................................................................................................................IV
List of Table................................................................................................................................................V
CHAPTER-ONE.............................................................................................................................................1
1. INTRODUCTION...................................................................................................................................1
1.1Background of the Study....................................................................................................................1
1.2. Statement of the problem..................................................................................................................1
1.3 Basic Research Questions............................................................................................................2
1.4Objective of the Study........................................................................................................................3
1.4.1General Objective........................................................................................................................3
1.4.2Specific Objective of the Study...................................................................................................3
1.5 Significance of the Study...................................................................................................................3
1.6 Scope of the study..............................................................................................................................3
1.7 Limitations of the study.....................................................................................................................4
1.8 Organization of the paper..................................................................................................................4
CHAPTER-TWO........................................................................................................................................5
2. REVIEW OF RELATED LITERATURE...............................................................................................5
2.1 Definition of Customer Satisfaction..................................................................................................5
2.2 Impact of Customer on performance.................................................................................................6

VII
 2.3. Service quality and customer satisfaction.........................................................................................6
2.4 Factors Effecting Service Quality and Satisfaction............................................................................7
2.5 Measuring quality Service.................................................................................................................9
CHAPTER THREE...................................................................................................................................10
3. RESEARCH METHODOLOGY...........................................................................................................10
3.1. Description of the study area..........................................................................................................10
3.2 Research Design..............................................................................................................................10
3.3 Population of the study....................................................................................................................10
3.4 Sample and sampling techniques.....................................................................................................11
3.5 Sources of data..............................................................................................................................11
3.5 .1.Primary Sources of data...........................................................................................................11
3.5.2. Secondary Sources of data.......................................................................................................11
3.6 Method of data collection................................................................................................................11
3.7Method of data analysis....................................................................................................................11
CHAPTER-FOUR.....................................................................................................................................12
DATA PRESENTATIONS AND ANALYSIS.........................................................................................12
4.1. Introduction....................................................................................................................................12
4.2 Background information from Respondents....................................................................................12
CHAPTER-FIVE.......................................................................................................................................20
5. SUMMARY, CONCLUSION AND RECOMMANDATION..............................................................20
5.1. Summary........................................................................................................................................20
5.2. CONCLUSIONS............................................................................................................................21
5.3. Recommendations..............................................................................................................................21
REFERENCES..........................................................................................................................................23
APPENDIXES..........................................................................................................................................24

VIII
 CHAPTER-ONE

1. INTRODUCTION
1.1Background of the Study
According to Shekhar (1998), the primary function of a commercial bank is that of a broker and a
dealer in money. A commercial bank may also act as a trustee, executor, administrator and
attorney (Paul, 2002).The advancement of information technology today’s banking has become
simple, speedier and readily accessible through various devices such as personal computers,
mobile phones, etc. The electronic banking services include Automated Teller Machines (ATM),
Internet Banking, Tele Banking, Electronic Credit cards, anywhere banking, etc. (Perry, 1999).
Kulkarni and Kalkundrikar (2002) discussed the importance of a sound system of commercial
banking for a developing country as accumulating capital, provide assistance to innovation
activities, and help finance the priority sectors According to Gil et.al, 2008, in contrast to
products, customers are not really able to appraise services before the service process takes place.
The contact with the service provider and the customers is the key in the evaluation of service
performance. The customer’s service experience is defined by the interaction with the
organization; the processes and the employees According to Wirtz (1994) service givers have
considerable occasions to control the connections that mutually form the experience. In banking
system, satisfaction is elucidated as if it is multidimensional conception (Anderson, 1998). Faraz
(2005) stated that customer satisfaction is the situation when customer expectations have been
fulfilled to the fullest capacity when using the product or service (Faraz 2005).
Cooperative bank of Oromia was establish in 1998 with objective of providing financial service
in Ethiopia as it doing also leads organizations to gain loyalty and achieve the desired objectives.
Therefore, it is essential for organizations to satisfy their customers promptly so that they can
achieve what they plan. Banks as a business organization should provide a great care for its
customers’ to attract retain and Service quality is an important element of customer satisfaction
(Chakrabarty, 2006). In today’s world, delivering quality services to clients is essential since it
creates room for success and survival in the competitive banking environment.
1.2. Statement of the problem
Banking industry is marked by aggressive competition and ever-changing customer demands.
As a result, banks need to adopt themselves to the changing environment. It is essential for the

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banks to adopt appropriate various strategies to merge as the preferred bank of customers.
Timely introduction of various products to suit the diverse needs of customers is a functional
necessity to the banks. Technology gives the cutting edge to come out with customer centric
products and delivery channels in time (Biju K, D. Devandhiran & Sreehari R. 2012).
Customer satisfaction also leads organizations to gain loyalty and achieve the desired
objectives. Therefore, it is essential for organizations to satisfy their customers promptly so that
they can achieve what they plan. Banks as a business organization should provide a great care
for its customers’ to attract retain and Service quality is an important element of customer
satisfaction (Chakrabarty, 2006). In today’s world, delivering quality services to clients is
essential since it creates room for success and survival in the competitive banking environment
(Mandal and Bhattacharya, 2013). Relations with the constructs of quality and customer loyalty
define the construct of customer satisfaction (Terpstra et al., 2014). It is further stated that many
banking customers associate quality with zero defects and first-time right deliveries making it an
antecedent of customer satisfaction. Delivering high quality services enables companies to
respond to competition, which in turn enables customer satisfaction and this makes customer
satisfaction a stronger predictor for customer retention (Anand and Selvaraj, 2013).
According to Jamal, A. and Naser, K. (2002), According to Nevertheless, banks found in our
country (Ethiopia) have little care about their customers. This leads them to use more obsolete
and traditional technologies that cause dissatisfaction and switching among customers. This
means the banks are not satisfying their customers enough due to many factors in which using
traditional technologies is among them. Commercial bank applied co customer satisfaction
technology in 2004 E.C to integrate the services delivered in its all branch banks and to improve
the quality of its services. The application of this technology is believed to have many
contributions for the bank (Jamal, A. and Naser, K 2002). Furthermore, this study to the best of
the researcher’s knowledge, it is unexplored area that attempts to assess the Service quality on
customers satisfaction to identify the gap concerned basically service quality. This fact reveals a
great need to conduct this study. Therefore the study is tried to examine assess of customers
satisfaction in Cooperative bank of Oromia Nekemte Branch

1.3 Basic Research Questions

1. What customers’ satisfaction can be evaluated on performance of services provided by
cooperative bank of Oromia in Nekemte Branch?

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2. What are the factors affecting in Quality services of cooperative bank of Oromia in Nekemte
Branch?
3. What types of service can be provided by commercial bank Nekemte Branch?
4. What are the challenges of Cooperative bank of Oromia Nekemte Branch in providing quality
services?

1.4Objective of the Study

1.4.1General Objective
The major objective of this study is to assess customers’ satisfaction on banking services in
Cooperative bank of Oromia Nekemte Branch.

1.4.2Specific Objective of the Study

1. To assess the customers satisfaction performance of banking services in cooperative bank of
Oromia Nekemte Branch.

2. To assess the factors affecting in Quality services in the cooperative bank of Oromia
Nekemte Branch.

3. To evaluate types of services provided by cooperative bank of Oromia Nekemte Branch.

4. To assess the challenges cooperative bank of Oromia Nekemte branch to provide quality
service

1.5 Significance of the Study

It can provide the way for other researchers who want to conduct further investigation on the
area raised as a title, give some possible insights to the higher officials of the authority to
tackle the problems identified with this finding, initiates the authority to give closer attention
towards the administration and follow ups as well as conduct awareness creation programs to
achieve the desired objectives of role, inform the policy makers to take the problems identified
in to account by providing appropriate suggestions.

1.6 Scope of the study

The study will narrowed to focus only on the assessing on customers satisfaction on banking
service delivery in Cooperative bank of Oromia Nekemte Branch only and the study would be
confined to Nekemte Branch due to limited time and funds.

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1.7 Limitations of the study
It is obvious that adequate and reliable information is important to undertake any kind of
research precautions. However, the unwillingness and carelessness of some respondents
while filling the questionnaires during data collection was considered as constraints to
the study.

1.8 Organization of the paper

Accordingly, the paper is organized in a way that chapter one deals with the Introduction of
the study, chapter two presents the Review of the Related Literature, chapter three presents
the research Methodology, chapter four Data presentation and Analysis .Chapter five is
summary, conclusion and recommendation.

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 CHAPTER-TWO

2. REVIEW OF RELATED LITERATURE

2.1 Definition of Customer Satisfaction

There are a good number of works that are related to this topic, but two studies are of particular
relevance and interest. The first study analyzed a decision maker having the capability to buy from two
different suppliers and using the “periodic-review inventory model” (Fox, Metters & Semple, 2006, p.
389). The first supplier was defined by high variable cost and insignificant fixed cost. The second
supplier had low variable cost and high fixed cost. When using different suppliers, there were tradeoffs
between variable and fixed cost. Other components were considered such as to “make or buy, order
routing, temporary labor, and consumer store preference” (Fox, Metters & Semple, 2006).
The first model was the “concave ordering costs for two suppliers” (Fox, Metters & Semple, p. 393).
The x–axis represented the order size and the y-axis represented the order cost. Also, “the n-period
dynamic model” was used and it relied on “both quasi-convex and K-convex functions” (p. 393). The
first theorem was the “optimal choice” with respect to a “finite horizon,” while the second theorem
dealt with “convergence of optimal cost.” The third theorem was the “optimal choice,” but with
respect to “infinite horizon,” which was used for discounting. The study showed that the use of the “(s,
S) policy is optimal for a broad class of two-supplier problems with discount costs and lost sales,
provided the demand density is log-concave” (Fox, Metters & Semple, 2006. 394-5). According to
Fox, Metters and Semple, one of the limitations was the broad view of products. Another was that for
backorders, the theorems would have had to be modified (Fox, Metters & Semple, 2006).
In the second study, Tracey, Lim and Voderembse (2005) conduct an empirical test to examine the
impact of supply-chain management (SCM) capabilities, and to show its affects on business
performance. Plus, it was used to determine how competitive position and organizational performance
are influenced to some degree by customer-oriented SCM issues. Three processes were identified:
“outside-in, inside-out, and spanning capability processes”. The “outside-in capability” processes
included inbound transportation, material warehousing, inventory control, etc. While the “inside-out
capability” processes included packaging and warehousing finished goods (182-3). The four
performance measurements was “perceived product value, customer loyalty, market performance and
financial performance” (Fox, Metters & Semple, 2006p. 186).

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2.2 Impact of Customer on performance
Consumer satisfaction can be explored by using customer satisfaction performance surveys.
The type of survey has to be qualitative, in part, because it is difficult to use quantitative
research methods for customer satisfaction. Open ended questions help to discover if there
are any other issues that may be causing problems with customer satisfaction (Fox, Metters
& Semple, 2006).

The customer satisfaction can be analyzed by a customer satisfaction survey. The

measurement of customer satisfaction will not be exact because it is subjective and in a non-
quantitative state, but it will require sampling and statistical analysis (Cacioappo, 2000).

This survey was used the qualitative method, which is very personal and involved
interpersonal contact. The researcher goes into the real world and opens up people to see
what is inside. Qualitative research is more in-depth than quantitative research. When using
a customer satisfaction survey, there has to be a clear objective. The company should have
an understanding of the customer’s expectations and their requirements. Then they can
determine how the company and its competitors are satisfying these expectations and
requirements. Based on the findings of the survey, there should be development of products
or standards. The company should look at trends to be able to take action in a timely
manner. It is also important to establish standards and priorities to be able to rate these
goals. Before the customer survey can be designed, there has to be a determination of how
the information was gathered. How will the information be able to help the organization? In
what way can the organization use the information to keep the present customers and to gain
new ones (Cacioppo, 2000)

2.3. Service quality and customer satisfaction

The relationship between expectation, perceived service quality and customers satisfaction have
been investigated in a number of researches (Zeithaml, et al, 1988). They found that, there is very
strong relationship between quality of service and customer satisfaction (Parasuraman et al, 1985;
1988 ) Increase in service quality of the banks can satisfy and develop attitudinal loyalty which
ultimately retains valued customers (Nadiri, et al 2009). The higher level of perceived service
quality results in increased customer satisfaction. When perceived service quality is less than
expected service quality customer was dissatisfied (Jain and Gupta, 2004).

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According to Cronin and Taylor (1992) satisfaction super ordinate to quality-that quality is one of
the service dimensions factor to customer satisfaction judgment Marketing literature including
NCSI and ACSI literature examined positive of the link between the satisfaction and the brand
reputation. Wafa et al (2009) mentioned that, the nature and amount of a consumer’s experience
with an evoked set of brands. Perceived brand reputation has significant impacts on customer
satisfaction and a consumer's beliefs about brand are derived from personal use experience, word-
of-mouth endorsements/criticisms, and/or the marketing efforts of companies. (Woodruff et.al.,
1983) A brand perception is also one of the important aspects of in banking sector. Perceived brand
reputation in banking sector refers to the banks reputation and expiating place of bank in the
banking industry (Che-Ha and Hashim, 2007; Reynolds, 2007). It measures experience of the
customer how he/she fill with this brand and their services. A perceived overall brand performance
is determined by some combination of beliefs about the brand's various performance dimensions. A
brand perception is important factor to service provides because, satisfied customer with brand will
recommends that service to others(Woodruff etal, 1983; Che-Ha and Hashim, 2007)

2.4 Factors Effecting Service Quality and Satisfaction

For marketers or service providers, achieving customer satisfaction is important because it is
supposed to be an important motive of customer loyalty, repeated business (with customer) and
positive word of mouth (Bearden and Teel, 1983). However quality is not the only factor that
effects the customer satisfaction, there are other factors beside quality like Performance,
Expectations, (Mohr, 1982) desires and price factor affect the customer perceptions and the
overall satisfaction level. Where quality of service is a descendent of customer satisfaction as
described by Cronin and Taylor (1992), Service quality is not the only factor that has direct
assessed on customer satisfaction. Identification of other elements beside quality that effects the
satisfaction is critical. The other factors as described by Woodruff & Albert (2002) are value,
corporate reputation, and Image and transaction satisfaction. (Woodruff etal, 1983; Che-Ha and
Hashim, 2007)
On other hand factors that affect the service quality other than those of intangible nature like
human interaction in service delivery, rest are of tangible nature, design and décor elements, the
effect of atmospherics, employee appearance and appearance of equipment etc (Sureshchandar et
al., 2002). A clear understanding of all these factors that affect the relationship between service
quality, and customer satisfaction results in overall performance of the firm and can help to
ensure better implementation of resource that firm required putting in place(Sureshchandar et al.,

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2002)
The relationship between expectation, perceived service quality and customers satisfaction have
been investigated in a number of researches (Zeithaml, et al, 1988). They found that, there is
very strong relationship between quality of service and customer satisfaction (Parasuraman et al,
1985; 1988;). Increase in service quality of the banks can satisfy and develop attitudinal loyalty
which ultimately retains valued customers (Nadiri, et al 2009). The higher level of perceived
service quality results in increased customer satisfaction. When perceived service quality is less
than expected service quality customer was dissatisfied (Jain and Gupta, 2004). According to
Cronin and Taylor (1992) satisfaction super ordinate to quality-that quality is one of the service
dimensions factored in to customer satisfaction judgment. Customer satisfaction has been
considered the essence of success in today’s highly competitive banking industry. Prabhakaran
and Satya (2003) mentioned that the customer is the king. Heskett et al. (1997) argued that profit
and growth are stimulated primarily by customer loyalty. Ndubisi (2005), Gee et al. (2008) and
Pfeifer (2005) pointed out that the cost of serving a loyal customer is five or six times less than a
new customer. Several researchers including Tariq and Moussaoui (2009), Han et al. (2008) and
Ehigie (2006) found that loyalty is a direct outcome of customer satisfaction. Generally
speaking, if the customers are satisfied with the provided goods or services, the probability that
they use the services again increases (East, 1997)
Also, satisfied customers was most probably talk enthusiastically about their buying or the use of
a particular service; this was lead to positive advertising (File and Prince, 1992; Richens, 1983).
On the other hand, dissatisfied customers will most probably switch to a different brand; this will
lead to negative advertising (Nasserzadeh et al., 2008). The significance of satisfying and
keeping a customer in establishing strategies for a market and customer oriented organization
cannot be ignored Most of the researchers found that service quality is the antecedent of
customer satisfaction (Bedi, 2010; Kassim and Abdullah, 2010; Kumar et al., 2010; Yee et al.,
2010; Kumar et al., 2009; Naeem and Saif, 2009; Balaji, 2009; Parasuraman et al., 1988).
Quality customer service and satisfaction are recognized as the most important factors for bank
customer acquisition and retention (Jamal, 2004; Armstrong and Seng, 2000; Lassar et al.,
2000). Service quality is considered as one of the critical success factors that influence the
competitiveness of an organization. A bank can differentiate itself from competitors by
providing high quality service. Service quality is one of the most attractive areas for researchers
over the last decade in the retail banking sector (Avkiran, 1994; Stafford, 1996; Johnston and

8
Jeffrey, 1996; Angur et al., 1999; Lassar et al., 2000; Bahia and Nantel, 2000; Sureshchandar et
al., 2002; Gounaris et al., 2003; Choudhury, 2008).

According to Tse and Wilton (2008) Customer satisfaction is, “the consumer’s response to the
evaluation of the perceived discrepancy between prior expectations and the actual performance
of the product perceived after its consumption. The service quality variables identified by
Parasuraman et al., (1994) are reliability, responsiveness, competence, accessibility, courtesy,
communication, credibility, security, understanding and tangibility. Alfred and Addam (2001)
investigated attitudes using fifteen service quality variables. In the present study, the service
quality in retail banking is studied using variables drawn from the reviews (Cronin and Taylor
1992; Zillur Rahman, 2005; Verma and Vohna 2000; Mushtag A Bhat, 2005).

2.5 Measuring quality Service

Gronroos model divides customer’s perception about the quality of a specific service into two
dimensions e.i. technical and functional quality (Gronroos, 1994) it is also known as
Technical/Functional Quality framework. For example, technical quality might consider the
effectiveness of car repair, cleanliness of hotel room. And functional quality might include, the
care and manner of personnel involved in processes of service delivery (Lassar et al.,2000).
Also Parasuraman propose the gap model for service quality, that the operationlized service
quality is gap between performance and expectations perceptions of customer (SERVQUAL)
Parasuraman et al.1985, SERVQUAL has five quality attributes ( Gupta and Chen, 1995, Ooi,
Lin, Tan and Chong, 2011). These are Empathy, Responsiveness, Tangibles, Assurance and
Reliability. Different authors have defined service quality models applicable in various
industries i.e. medical services by Murfin et al., (1995); Soteriou and Stavrinides, (1997)
developed service quality model for bank , technology-based service quality models was
proposed by ( Zhu et al., 2002; Seth et al., 2008).

To better understand the service quality we need to look into the three main characteristics of
services: Invisible, consistent and diverse. Because services are non physical it is hard to
determine, record, calculate or to test the service prior to the sale in order to protect the quality
on its delivery (Zeithaml et al., 1988). Also it is assumed that due to heterogeneity services
various from person to person so performance various at different levels. Sometimes service is
produced and consumed at the same time, its inseparability of service. In most services, quality

9
occurs during service delivery, usually when customer and service employee interacts (Lehtinen
and Lehtinen 2008).

Research reveals that delivering high service quality produces measurable benefits in profit, cost
savings, and market share. Therefore, an understanding of the nature of service quality and how
it is achieved in organizations has become a priority for research. (Zeithaml et al., 1988)
For that, companies need to develop an environment inside the organization that is more prone
towards meeting service quality standards according to the customer requirements. There are
number of organizations actively using some form of customer satisfaction measurement in
developing, monitoring, and/or evaluating product and service offerings, as well as for
evaluating, motivating, and/or compensating employees. (Anderson et al.,1994)
Success could be achieved only if the internal environment is strong enough to meet the
challenges of external requirements. According to Nyeck, Morales, Ladhari, and Pons (2002),
the SERVQUAL measuring tool “remains as the most complete attempt to conceptualize and
measure service quality” (Sureshchandar et al., 2002 p. 101)

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 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1. Description of the study area

Cooperative bank of Oromia Nekemte branch were located in Nekemte town East Wollega Zone
328 km distance from Addis Ababa.

3.2 Research Design

Descriptive research involves gathering data that describe events and then organizes, tabulates,
depicts, and describes the data collection. Descriptive research would be used because it often uses
visual aids such as graphs and charts to aid the reader in understanding the data distribution,

3.3 Population of the study

The target populations of the research are all customers of Cooperative bank of Oromia Nekemte
branch. Numerically, the total number of the active customer in the branch (i.e. current and saving
account holder) is 20,200.

3.4 Sample and sampling techniques

The sampling technique that is used for the study is probability sampling techniques. Customers of
the bank would be classified in to different groups (strata) based on their type. i.e. current account
holder, saving account holder and one time customer and customers from each group was selected
as a respondent using random sampling technique. The size of strata i.e. current account holder is
6,500, the size of strata i.e. saving account holder 20,200and the size of strata the researcher is
employ proportion allocation method to determine the sample size.
The size of the sample from different strata is kept proportional to the size of the strata. Using the
formula of proportional allocation n0=n*p0/N, the researcher takes a sample of 45 customer from
saving account holders, 5 customer from current account holder therefore, the total sample size of
this research was 50 customers.

3.5 Sources of data

3.5 .1.Primary Sources of data

Primary data of the study was information gathered from customers of the bank. Questionnaire that

11
has both open end and closed end question was prepared and delivered to customers in order to
gather the primary data.

3.5.2. Secondary Sources of data

The secondary data would be collected from different sources such as, websites, books, and
journals, periodicals released by the bank and articles national and international newspaper and
magazines annual report and documents.

3.6 Method of data collection

Data collection method that would be used in this research would be self-administered
questionnaire that comprises both open end and closed end question. Secondary source of data were
already analyzed data and directly inter into our paper.

3.7Method of data analysis

The collected data would be analyzed by using descriptive statistics. In this study, descriptive
analysis is chosen because of its simplicity and clarity to draw inferences. Averages, percentages,
frequency and tables were used for the analysis of the collected data.

CHAPTER-FOUR

DATA PRESENTATIONS AND ANALYSIS

4.1. Introduction
This chapter was present a discussion of the final results and the process through which the results
were obtained. In addition to this, background information of respondents was presented. Finally,
the statistical methods of analysis were discussed, which included a descriptive analysis.

4.2 Background information from Respondents

The demographic characteristics include: gender, age, level of education, and frequency of usage
of the respondent. This aspect of the analysis deals with the personal data on the respondents of the
questionnaires given to them. The table below shows the details of background information of the
respondents.

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 Table 4.1 Background information of Respondents

Characteristics Frequency Percentage

Gender of the respondent Male 41 82%

Female 9 18%
Total 50 100
Age of the respondent 18-30 20 39
31-45 16 33
46-60 9 18
61 and above 5 10
Total 50 100
Educational background primary to 10th complete 14 28.5
Diploma 12 25
Degree 22 45
Masters and above 2 1.5
Total
50 100
Frequency of usage Daily 3 1.5

Weekly
7 3.5
twice a week 31 15.5

Monthly 159 79.5

Total 200 100

Source: own survey,2023

Table 4.1 presents the background information of the respondents of the study. The survey showed

13
that there were more males as compared to females. Male respondents represent 58 Percent, and
the rest 41.5 percent were females. As far as age of respondents is concerned, 39 percent of the
respondents are in the range of 18-30 years, 33 percent of the respondents are in the range of 31-45
years, 18 percent are in the range of 46-60 years, and 10 percent of the respondents are under the
age of 61and above. With regard to educational level of respondents, primary to 10 th complete
represents 28.5 percent of the customer, Diploma holders represents 25 percent of the customers
and degree holders represents 45 percent. Finally, Masters and above represents 1.5 percent of the
customers. In relation to frequency of usage of customers, majority (79.5 percent) of the
respondents uses the service monthly, 15.5 percent of the customer uses the service twice a week,
3.5 percent of the customers uses the service weekly, and the least (1.5 percent) of the respondents
uses the services daily. There for the result frequency usage the total number of service are 200
hours from 384 hr of constant individual service, there for there is wastage of service.
4.3 Customer Satisfaction on the Bank Service
Table 4.-2 Customer satisfaction
Scale Frequency Percent

Strongly disagree 1 2.0

Disagree 2 5.0

Neutral 4 8.0

Agree 15 31.0

Strongly agree 26 54.0

Total 50 100.0

Source: own survey,2023

Table 4.-2 shows the level of customers’ satisfaction to the complete range of services. The result
indicates that majority (54 percent) of the respondents are strongly satisfied, 31 percent of the
respondents are satisfied, 8 percent of the respondents are neither satisfied nor dissatisfied, 5

14
percent of the respondents are dissatisfied and the least (2 percent) of the respondents are strongly
dissatisfied with the bank’s complete range of services. The bank should try to enhance the
satisfaction level of entire customers in relation to the complete ranges of its services.

15
Table 4.-3. I am satisfied with the performance of the employees of this bank.
Scale Frequency Percent

Strongly disagree 1 1.0

Disagree 2 7.0

Neutral 7 11.5

Agree 9 18.5

Strongly agree 31 62.0

Total 50 100.0

Source: own survey,2023

Table 4.3 shows the level of customers’ satisfaction to performance of the employees. And it the
result implies that majority (62percent) of the respondents are strongly satisfied, 18.5 percent of
the respondents are satisfied, 11.5 percent of the respondents are neither satisfied nor dissatisfied,
7 percent of the respondents are dissatisfied and the least (1 percent) of the respondents are
strongly dissatisfied with the performance of the employees of this bank. Certainly, most
customers of the bank are satisfied in employee performance; but the bank should keep this
situation and work more to create better satisfaction to entire customers.

16
 Table 4.-4. I am satisfied of being a client of this bank.
Scale Frequency Percent Valid Percent Cumulative Percent

Strongly disagree 1 1.0 1.0 1.0

Disagree 2 7.0 7.0 8.0

Neutral 2 8.0 8.0 16.0

Agree 13 26.0 26.0 42.0

Strongly agree 27 58.0 58.0 100.0

Total 50 100.0 100.0

Source: own survey,2023

Table 4-4 shows majority (58 percent) of the respondents are strongly satisfied, 26 percent of the
respondents are satisfied, 8 percent of the respondents are neither satisfied nor dissatisfied, 7
percent of the respondents are dissatisfied and the least (1 percent) of the respondents are strongly
dissatisfied of being a client of this bank. From the above analysis most customers are highly
satisfied by being a client of the bank and significant no of respondents are less satisfied and
dissatisfied. So that, the bank should be make an endeavor to create a sense of belonging in the
minds of customers.
Table 4.5. I am satisfied with the bank employees’ professional competence
Scale Frequency Percent Valid Percent Cumulative Percent

Strongly disagree 1 2.0 1.5 1.5

Disagree 3 6.0 7.0 8.5

Neutral 4 8.0 10.0 18.5

Agree 12 24.0 24.5 43.0

17
 Strongly agree 30 60.0 57.0 100.0

Total 50 100.0 100.0

Source: own survey,2023

Table 4.5. Shows majority (60 percent) of the respondents are strongly satisfied, 24 percent of the
respondents are satisfied, 8 percent of the respondents are neither satisfied nor dissatisfied, 6
percent of the respondents are dissatisfied and the least (2 percent) of the respondents are strongly
dissatisfied with the bank employees’ professional competence. Even though most of the bank
customers are highly satisfied with professional competence of employee, the bank should further
improve in order to better satisfy especially those who dissatisfied.
Table 4.6. I am satisfied with the quick service of this bank.
Scale Frequency Percent Valid Percent

Strongly disagree 2 1.5 1.5

Disagree 3 7.5 7.5

Neutral 4 8.0 8.0

Agree 15 22.5 22.5

Strongly agree 26 60.5 60.5

Total 50 100.0 100.0

Source: own survey,2023

Table 4.6 shows information regarding quick services of the bank. Accordingly majority (60.5
percent) of the respondents are strongly satisfied, 22.5 percent of the respondents are satisfied, 8
percent of the respondents are neither satisfied nor dissatisfied, 7.5 percent of the respondents are
dissatisfied and the least (1.5 percent) of the respondents are strongly dissatisfied with the quick

18
 service of this bank. With this aspect the bank should also improve speed of the services to address
those who are not satisfied.
Table 4.7. I am satisfied with the respectful behavior of employees.
Scale Frequency Percent

Strongly disagree 2 2.0

Disagree 3 6.0

Neutral 5 8.0

Agree 14 27.5

Strongly agree 26 56.5

Total 50 100.0

Source: own survey,2023

Table 4.7 shows majority (56.5 percent) of the respondents are strongly satisfied, 27.5 percent of
the respondents are satisfied, 8 percent of the respondents are neither satisfied nor dissatisfied, 6
percent of the respondents are dissatisfied and the least (2 percent) of the respondents are strongly
dissatisfied with the respectful behavior of employees. Employees of the bank must first keep their
existing behavior.
4.8. General Satisfaction towards core banking
Scale Frequency Percent

Strongly disagree 1 1.0

Disagree 3 7.0

Neutral 6 11.5

Agree 12 20.0

Strongly agree 28 60.5

Total 50 50

Source: own survey,2023

19
Table 4.8 shows the general Satisfaction level of core banking. Majority (60.5 percent) of the
respondents are strongly satisfied, 20 percent of the respondents are satisfied, 11.5 percent of the
respondents are neither satisfied nor dissatisfied, 7 percent of the respondents are dissatisfied and
insignificant number (1 percent) of the respondents are strongly dissatisfied. The above analysis
implies that most customers of the bank are highly satisfied with the application of core banking
and the bank must work more on those aspects that enhance the satisfaction levels of customers
with relation to core banking.

20
 CHAPTER-FIVE

5. SUMMARY, CONCLUSION AND RECOMMANDATION

5.1. Summary
The survey showed that there were more males as compared to females. Male respondents
represent 58 Percent, and the rest 41.5 percent were females. As far as age of respondents is
concerned, 39 percent of the respondents are in the range of 18-30 years, 33 percent of the
respondents are in the range of 31-45 years, 18 percent are in the range of 46-60 years, and 10
percent of the respondents are under the age of 61and above. With regard to educational level of
respondents, primary to 10th complete represents 28.5 percent of the customer, Diploma holders
represents 25 percent of the customers and degree holders represents 45 percent. Finally, Masters
and above represents 1.5 percent of the customers. In relation to frequency of usage of customers,
majority (79.5 percent) of the respondents uses the service monthly, 15.5 percent of the customer
uses the service twice a week, 3.5 percent of the customers uses the service weekly, and the least
(1.5 percent) of the respondents uses the services daily. There for the result frequency usage the
total number of service are 200 hours from 384 hr of constant individual service, there for there is
wastage of service. Table 4-4 shows majority (58 percent) of the respondents are strongly
satisfied, 26 percent of the respondents are satisfied, 8 percent of the respondents are neither
satisfied nor dissatisfied, 7 percent of the respondents are dissatisfied and the least (1 percent) of
the respondents are strongly dissatisfied of being a client of this bank. From the above analysis
most customers are highly satisfied by being a client of the bank and significant no of respondents
are less satisfied and dissatisfied. So that, the bank should be make an endeavor to create a sense
of belonging in the minds of customers. Table 4.7 shows majority (56.5 percent) of the
respondents are strongly satisfied, 27.5 percent of the respondents are satisfied, 8 percent of the
respondents are neither satisfied nor dissatisfied, 6 percent of the respondents are dissatisfied and
the least (2 percent) of the respondents are strongly dissatisfied with the respectful behavior of
employees. Employees of the bank must first keep their existing behavior. The above analysis
implies that most customers of the bank are highly satisfied with the application of core banking
and the bank must work more on those aspects that enhance the satisfaction levels of customers
with relation to core banking.

21
5.2. CONCLUSIONS
The study was conducted to examine the of customer satisfaction Cooperative bank of Oromia
Nekemte branch. The finding of the study indicates that customers of bank were satisfied by service
quality dimensions (tangibility, reliability, responsiveness, assurance and empathy). The finding of
the study also indicates that, customers were most satisfied with the assurance dimensions of
service quality. However, customers were less satisfied responsiveness dimensions of service
quality. The correlation result shows that, core banking and all service quality dimensions
(tangibility, assurance, empathy, responsiveness and reliability) are positively and significantly
related with customer satisfaction.
Unlike tangibility and responsiveness the three service quality dimensions including reliability,
assurance and empathy have positive and significant impact on customer satisfaction. At the same
time core banking also have positive and significant impact on customer satisfaction. The findings
of this study also indicated that assurance is the most important factor to have a positive and
significant impact on customer satisfaction. In addition to this, except responsiveness and
tangibility the three service quality dimensions significantly explain the variations in customer
satisfaction.
The study also indicates that, customers are satisfied by core banking system of the bank. From the
finding of this study the researcher concludes that core banking has positive and significant
relationship with customer satisfaction. And also core banking has positive and significant effect on
customer satisfaction.
5.3. Recommendations
Based on the findings and conclusions of the study, the researcher forwards the following
recommendations to the management of the banks and suggestion for other researchers.
Reliability dimension was one of the most important factors influencing customer satisfaction. But
customers of the bank are less satisfied with this dimension. The bank managers should enhance
customers’ reliability on the bank by fulfilling the service as promised, performing the service
exactly at the first time, showing a keen interest in solving customers problems, providing the
service at the promised time and by insisting on error free record.
Therefore, the bank should handle its customers so well to achieve its organizational aims. Finally,
it is worthy to affirm that customers are the key for any business organization’s success
Empathy dimension was also considered as one of the most important factors influencing customer
satisfaction. However, the customers of the banks were less satisfied in terms of the empathy

22
dimensions. One way of addressing this could be by treating customer with great respect, giving
individual attention to customers, serving customers based on their specific needs and treating
customers in a friendly manner. This is to say, the bank management should focus on this factor to
maximize customer satisfaction.
In addition to the above recommendation, the bank should create some mechanism to minimize the
network problem or to find other techniques that unstop the service at the time of disconnection of
the network.

23
REFERENCES
 Anderson EW (1998). Customer Satisfaction and Word of Mouth”, Journal of Service
Research, 1(1): 5-17
 Ayana G (2012). Adoption of Electronic Banking System in Ethiopian Banking Industry:
Barriers and Driver, Social Science Research Network: http://ssrn.com/abstract=2058202
en.wikipedia.org, accessed on 15, Nov, 2012
 Ermias H (2012). Evaluation of Expanded Marketing Mix Applications towards Customer
Satisfaction on CommercialBank of Ethiopia (CBE), Hawill besa Branch. Hawill besa
University, Ethiopia, http://www.hu.edu.et
 Faraz J (2005). “Customer Satisfaction at a Public Sector Bank, Karachi”, Market Forces,
July, Vol.1 No.1 http://www.pafkiet.edu.pk

24
 APPENDIXES

RIFT VALIE UNIVERSITY NEKEMTE CUMPAS

DEPARTMENT OF BUSINESS MANAGEMENT

Questionnaires
Respected madam/sir,
This questionnaire aims at the assessing customer satisfaction in Cooperative bank of Oromia
Nekemte Branch. As a part of my project we would like to gather some information from you
which will help us in an in depth study of the paper. We would be indebted if you co-operate
with us in filling the questionnaire. Since the questionnaire is being use for academic purpose, the
information gathered was strictly confidential.
Please put a tick mark in the appropriate box
Part 1. Demographical Information

1 Sex
.
Male Female

2 Age:
.
18 to30 31 – 45

46–60 61and above

3 Educational level:
.
Primary to 10th complete

Diploma
Masters and above
1st degree

4. Frequency of using the bank:

Daily
Twice a week

Weekly

25
 Monthly

Part 2. Customer satisfaction with relation to service quality dimensions.

Please rank your views using 1-5 on whether you are satisfied or not with the service

provided by the bank and the general environment under which it operates
1=very dissatisfied 2=dissatisfied 3=indifferent
4=satisfied 5=very satisfied

Item Scale

Very dissatisfied Very satisfied

1 2 3 4 5

RELIABILITY

Banks fulfill its promise at the time

indicated

Bank’s perform the service exactly at the first time

Bank show a keen interest in solving your

Problems

Bank insist on error free record

ASSURANCE

Bank’s staff behavior instills confidence in me

I feel safe in my transaction with the bank

Bank’s staff are courteous with me

Bank’s staff have the knowledge to answer all my

Question

Bank’s staff behavior instills confidence in me

I feel safe in my transaction with the bank

26