The Effect of Complaint Handling System on Customer Satisfaction: The Case of Commercial Bank of Ethiopia in Gondar City

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.