The Effect of Quality Service on Satisfaction of Interest Free Banking User: The Case of Awash International Bank S.c in Diredawa Town

Addisu Tesema Tanga, Tadele Wodaje Bayeh

Abstract: This study focused on collection of information about the effect of service quality on satisfaction of interest free banking user: the case of awash international bank S. c in diredawa town. The study utilized simple random sampling techniques to select 394 customers and used them as respondents in the study. During the data collection period, a total of 394 questionnaires were distributed and 355 (90.1 %) were returned, but the remaining 39 (9.9 %) were not returned. During the process of analyzing data, the Statistical Package for Social Science (SPSS) version 20 was used. The Correlation and multiple regression analysis were employed as analytical techniques. The results show that compliance with Islamic laws is highly correlated with customer satisfaction. The study was also discovered that all service quality dimensions have significant effect on the satisfaction of interest free banking user except responsiveness.

Keywords: Interest free banking, Quality service, Satisfaction