Banking Type Differences In Service Quality: A Comparative Perspective In Ethiopian Commercial Banks
DOI:
https://doi.org/10.69980/ajpr.v28i1.796Keywords:
Assurance, Access, Price, Service Portfolio, Tangibility, ReliabilityAbstract
This study investigates the differences in service quality between public and private commercial banks in Ethiopia, utilizing a quantitative comparative research design. Data were collected from 385 customers using a structured questionnaire based on the Banking Service Quality model, covering dimensions such as assurance, access, price, service portfolio, tangibility, and reliability. The study employed independent sample t-tests analyzed through SPSS version 26 to discern statistically significant differences between public and private banks. The results reveal that public banks outperform private banks significantly in the dimension of access, likely attributed to their extensive branch networks and regulatory mandates ensuring widespread service availability. Conversely, private banks exhibit superior performance in tangibility and reliability, reflecting better physical facilities and consistent service delivery. Notably, no significant differences emerged in assurance, price, and service portfolio dimensions between the two banking types. These findings align with previous research indicating private banks' focus on customer-centric innovation and infrastructure improvements, while public banks leverage their broader accessibility as a competitive advantage. The study underscores the multifaceted nature of service quality and its variation based on ownership and operational strategies in the Ethiopian banking sector. The implications point toward the necessity for public banks to enhance infrastructural and service consistency aspects, while private banks should consider expanding physical accessibility to sustain competitive parity. The study contributes to the growing body of knowledge on banking service quality in developing contexts and provides actionable insights for policymakers and banking practitioners aiming to elevate customer satisfaction and foster sustainable financial sector development.
References
1. Abebe, E. (2014). Assessing the impact of core banking and service quality on customer satisfaction in Commercial Bank of Ethiopia (a case of Bishoftu branch) [Unpublished master's thesis]. Addis Ababa University.
2. Ayinaddis, S. G., Yallew, B. G., & Taye, B. A. (2023). Examining the effect of electronic banking service quality on customer satisfaction and loyalty: An implication for technological innovation. In Technological Innovation for Industry and Service Systems (pp. 1-15). Springer Nature.
3. Beshir, E. S., Zeleke, B. A., & Adugna, B. A. (2020). The effect of e-banking service quality on customers satisfaction and loyalty. Strategic Journal of Business & Change Management, 7(3), 432-447.
4. Dawit, J. B., Aweke, U., & Mesfin, M. (2019). The study of the level of perceived service quality in selected private commercial banks in Ethiopia [Unpublished manuscript]. Department of Management, Hawassa University.
5. Elifneh, Y. W., Geleta, Y., & Goulap, J. B. (2020). Customers’ satisfaction in ATM service: Empirical evidence from the leading bank in Ethiopia. Journal of Applied Finance and Banking, 10(4), 89-108.
6. Getahun, A. (2019). The effect of service quality on customer satisfaction: A case study of Commercial Bank of Ethiopia Adama city [Unpublished bachelor's thesis]. Adama Science and Technology University.
7. Kuada, J. (2021). Financial inclusion and small enterprise growth in Africa: Emerging perspectives and research agenda. African Journal of Economic and Management Studies, 13(3), 402-417. https://doi.org/10.1108/AJEMS-05-2021-0230
8. Kubeyinje, G. T., & Okah, S. O. (2022). The influence of service quality dimensions on customer satisfaction in the Nigerian banking industry. Annals of the University of Oradea, Economic Science Series, 31(1), 223-233.
9. Mandal, P. C. (2020). Achieving excellence in services marketing: Roles in customer delight. International Journal of Business Excellence, 20(3), 359-375. https://doi.org/10.1504/IJBEX.2020.106366
10. Mekonnen, T. H. (2022). Effects of electronic banking service quality on customer satisfaction [Unpublished master's thesis]. St. Mary's University.
11. Mekonen, M. A., Gebre, T., & Rong, Y. (2019). Assessment of customer satisfaction in banking services: A comparison between state owned and private banks in Axum town, Ethiopia. International Journal of African and Asian Studies, 54, 1-9.
12. Rahaman, M. A., Ali, M. J., Zhang, K., Taru, R. D., & Mamoon, Z. R. (2020). Investigating the effect of service quality on bank customers’ satisfaction in Bangladesh. Journal of Asian Finance, Economics and Business, 7(10), 823-831. https://doi.org/10.13106/jafeb.2020.vol7.no10.823
13. Sarı, T. (2019). Do ownership, method and type really matter? A literature survey on comparative bank performance and efficiency. Süleyman Demirel Üniversitesi Vizyoner Dergisi, 10(25), 631-651. https://doi.org/10.21076/vizyoner.594364
Downloads
Published
Issue
Section
License
Copyright (c) 2025 American Journal of Psychiatric Rehabilitation
This work is licensed under a Creative Commons Attribution 4.0 International License.
This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License permitting all use, distribution, and reproduction in any medium, provided the work is properly cited.
This work is licensed under a 
