Effect of Service Quality Dimensions on Customers’ Satisfaction: The Case of Selected Commercial Banks in Hawassa, Ethiopia

Service quality is playing an important role to deliver service for customer satisfaction. The aim of this study was to analyze effect of service quality on customers’ satisfaction in the Case of selected Commercial Banks in Hawassa, Ethiopia. This Research was conducted by using a cross-sectional research design to gather a quantitative data. By applying multi-stage random sampling technique, a sample size of 393 customers from three sample branches namely Hawassa branch, Tabor branch, and Atotate branch were selected and data were collected using interview schedule. Ordinal logit regression models were employed to identify the effect of service quality dimensions on customer satisfaction. Out of the five hypothesized explanatory variables, three variables namely reliability, tangibility and assurance were found to have significant effect in customers satisfaction. Therefore, the findings of this imply that service quality has a positive relationship with customer satisfaction.