Abstract

The study was conducted in Oromia Regional State, West Shoa Zone, Ambo Town, which is far 119 km from Addis Ababa. The main objective of the study was to examine impact of service quality performance on customer satisfaction. The study helps more the managers of the bank. The design of the study was quantitative in nature. A questionnaire was used for data collection from 321 customers for data analysis. The sampling procedure used was probability random sampling. A descriptive and inferential statistics was used to see the SQ gap. The study shows that OIB in Ambo Town have not met the service expectations of the customers, as there was a significant gap between customers’ perceptions and expectations. Among the five dimensions of service quality, the highest negative gap found tangibility. Therefore, banks need to better understand their customers’ expectations and continuously measure and evaluate their service quality performance in order to improve quality based on customers need.

Key words: Service quality (SQ), Oromia International Bank (OIB), service quality dimensions.