Abstract:
consider customers as core concept of their business. Thus, customer satisfaction is what
guarantees the future of banking services and it is achievable by taking up their services and
customers’ needs. The objective of this study was to examine the effects of complaint handling
system on customer satisfaction at Commercial Bank of Ethiopia in Gondar city. Thus, using
quantitative cross-sectional survey design, a total of 372(male=224 & female=148) respondents
involved in the study. Data were collected through the use of pilot-tested structured
questionnaire. And analysis were made by the use of statistical software; SPSS version 20. In
particular, mean, standard deviation, Pearson correlation and multiple linear regression were
used to analyze the data. Findings show that customers’ satisfaction has statistically significant
and positive relationship with communication (r=0.821, p<0.01), empowerment(r=0.840,
p<0.01), feedback (r=0.813, p<0.01), compensation (r=0.975, p<0.01), apology (r= 0.932,
p<0.01) and explanation (r=0.963, p<0.01). Findings also show that all complaint handling
techniques included in study are found to have significant effects on customers’ satisfaction in
the study area when they entered the model together (p<0.01). Specifically, findings show that
the independent variables (communication, empowerment, feedback, compensation, apology and
explanation) accounted for 72 percent of the variance in customer satisfaction. Finally it was
recommended that the management of the bank together with its employees is recommended to
be trustful, respecting, friendly and polite for customers. Moreover, employees are recommended
to have the required knowledge to answer customer queries. Moreover, employees are
recommended to adopt more effective ways to enhance receiving complaints reliably.
