An Investigation of the Effect of Service Quality on Customer Satisfaction: A Case of Zanaco Bank


  • Chrislay Michelo Muchimba Graduate School of Business, University of Zambia Author
  • Muchemwa Sinkala University of Zambia Author



Customer Satisfaction, Customer loyalty, Reliability, Responsiveness, Empathy


The key to surviving in a global market is to focus on quality of service to customers. Every organization should focus on providing quality service to its customers. ZANACO Bank has implemented several service quality features and systems such as: B. changing the interior design of bank buildings, investing in technologies and bringing services closer to customers through ZANACO express agents, mobile banking and opening new branches. Therefore, the study examined the impact of service quality on customer satisfaction using ZANACO Bank as an example. A survey of 397 customers of ZANACO Bank was conducted at the main branch in Lusaka. The study used descriptive and causal designs. The study analyzed the data by determining frequencies, percentages, and means, and the study used Spearman correlation analysis to determine the effect. The study found that the service quality attributes important to bank customers were prompt customer support, politeness of bank employees, accuracy of bank transactions, security of banking services, customer support, convenient business hours, reliability of banking services and affordability (cost) of services. The study found that banks' responsiveness, accuracy, reliability and empathy have a significant impact on customer satisfaction, while tangible attributes have little or no impact on customer satisfaction. Customer satisfaction had a strong positive effect on customer loyalty, with a correlation coefficient of 0.9264, statistically significant at a p-value of 0.0001. The study therefore recommended that: Banks should focus more on reliability, security, empathy and responsiveness to increase customer satisfaction; Offering incentives such as reducing bank fees; and the use of customer loyalty programs to remain competitive.


Al-Maamari, Q. A., & Abdulrab, M. (2017). Factors affecting on customer loyalty in service organizations. International Journal of Energy Policy and Management, 2(5), 25-31.

Ananth, A., Ramesh, R., & Prabaharan, B. (2011). Service quality gap analysis in private sector banks–A customers perspective. Indian Journal of Commerce and Management Studies, 2(1), 245-253.

Anjalika, W. P., & Priyanath, H. (2018). Effect of Service Quality on Customer Satisfaction: An Empirical Study of Customers who have Bank Accounts in both Public and Private Banks in Sri Lanka. International Journal of Marketing and Technology, 8(1).

Ayodele, A. A., & Esiti, B. G. (2016). Predictive Indicators Of Customer Loyalty In The Nigerian Gsm Market. British Journal of Marketing Studies, 4(7).

Baker, M. A. (2017). Electronic customer relationship management and customer satisfaction. In The Routledge Handbook of Consumer Behaviour in Hospitality and Tourism (pp. 396-403). Routledge. DOI:

Berry, L.L., Zeithaml, V.A., Parasuraman, A. (1990) Five imperatives for improving service quality. Sloan Manage Rev, 31(4): 29-38.

Bitner, M.J., Fisk R.P. and Brown, S.W. (1993). “Tracking the Evolution of the Services Marketing Literature”, Journal of Retailing, 69, 1, 61 - 103. DOI:

Chishimba, K., & Sikombe, S. (2017). A comparative study of service quality and customer satisfaction in Zambian Banks. International Review of Management and Business Research, 6(1), 309.

Clemes, M. D., Gan, C., Kao, T. H., & Choong, M. (2008). An empirical analysis of customer satisfaction in international air travel. Innovative marketing, 4(2).

Cristea, I. G., & Mocuta, D. (2018). Customer relationship management. Proceedings of the 31st International Business Information Management Association Conference, IBIMA 2018: Innovation Management and Education Excellence through Vision 2020.Milan, Italy.

Devkota, N., & Dahal, J. R. (2016). An empirical study of service quality dimensions on customer satisfaction and customer loyalty in Nepalese commercial banking sector. Agder: University of Agder.

Felix, R. (2017). Service quality and customer satisfaction in selected banks in Rwanda. Journal of Business and Financial Affairs, 06(1). DOI:

Harazneh, I., Adaileh, M., Thbeitat, A., Afaneh, S., Khanfar, S., Harasis, A., & Elrehail, H. (2020). The impact of quality of services and satisfaction on customer loyalty: The moderate role of switching costs. Management Science Letters, 10(8), 1843-1856. DOI:

Hoang, D., Kousi, S., Martinez, L. F., & Kumar, S. (2023). Revisiting a model of customer engagement cycle: a systematic review. The Service Industries Journal, 43(9-10), 579-617. DOI:

Imran, M., Hamid, S. N. B. A., Aziz, A., & Hameed, W. (2019). The contributing factors towards e-logistic customer satisfaction: a mediating role of information Technology. Uncertain Supply Chain Management, 7(1), 63-72. DOI:

Joshi, C. (2021). Perceived service quality and customer satisfaction in Nepalese banking industry. Contemporary Research. doi:10.3126/craiaj.v5i1.40476. An Interdisciplinary Academic Journal, 5(1), 1–23. DOI:

Karim, R., & Chowdhury, T. (2014). Customer satisfaction on service quality in private commercial banking sector in Bangladesh. British Journal of Marketing Studies, 2(2), 1-11.

Kelemu, N. The Effect of Service Quality on Customer Satisfaction: A Case Study on Selected Private Banks in Bahir Dar; Ethiopia.

Kotler, P. and Armstrong, G. (2012). Principles of Marketing. 14th Edition, NewJersy, USA.

Kumar, V., Batista, L., & Maull, R. (2011). The impact of operations performance on customer loyalty. Service Science, 3(2), 158-171. DOI:

Loke, S. P., Taiwo, A. A., Salim, H. M., Downe, A. G., & Petronas, U. T. (2011). Service quality and customer satisfaction in a telecommunication service provider. In International conference on financial management and economics (Vol. 11, No. 2, pp. 23-29).

Messay, S. (2012). Bank service quality, customer satisfaction and loyalty in Ethiopian banking sector. Journal of Business Administration and Management Sciences Research, 1, 1-9.

Minh, N. H., Ha, N. T., Anh, P. C., & Matsui, Y. (2015). Service quality and customer satisfaction: A case study of hotel industry in Vietnam. Asian Social Science, 11(10). DOI:

Mohammad, A. A. S., & Alhamadani, S. Y. M. (2011). Service quality perspectives and customer satisfaction in commercial banks working in Jordan. Middle Eastern Finance and Economics, 14(1), 60-72.

Mulat, G. W. (2017). The effects of service quality on customer satisfaction: A study among private banks in Mekelle Town. European Journal of Business and Management, 9(13), 72-79.

Otoo, B. K. (2016). Study of customer service quality impact on customer satisfaction in commercial banks in Ghana. International Journal of Research in Finance and Marketing, 6(4), 57-73.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of marketing, 49(4), 41-50. DOI:

Parasuraman, A., Zeithaml,V.A., and Berry, L.L. (1988). SERVQUAL: a multiple-item scale for measuring customer perceptions of service quality.” Journal of Retailing,64: 12-40. Pearson Education Inc. Available from

Saglik, E., Gulluce, A., Kaya, U., & Ozhan, C. (2014). Service quality and customer satisfaction relationship: A research in Erzurum Ataturk university refectory. American International Journal of Contemporary Research, 4(1), 100-117.

Selvakumar, J. J. (2015). Impact of service quality on customer satisfaction in public sector and private sector banks. PURUSHARTHA-A journal of Management, Ethics and Spirituality, 8(1), 1-12.

Shah, F., Khan, K., Imam, A., & Sadiqa, M. (2015). Impact of service quality on customer satisfaction of banking sector employees: A study of Lahore, Punjab. Vidyabharati International Interdisciplinary Research Journal, 54–60.

Shankar, K. M., Kumar, P. U., & Kannan, D. (2016). Analyzing the drivers of advanced sustainable manufacturing system using AHP approach. Sustainability, 8(8), 824. DOI:

Sinha, N., Garg, A. K., & Dhall, N. (2016). Effect of TQM principles on performance of Indian SMEs: the case of automotive supply chain. The TQM Journal, 28(3). DOI:

Shrestha, R. M. (2020). Impact of Service Quality dimension of Commercial Banks on Customer in Nepal. Pravaha, 26(1), 171–176. DOI:

Sokachaee, E. H., & Moghaddam, F. M. (2014). The impact of service quality on customer satisfaction by using SERVQUAL model. International Journal of Business and Marketing, 1(1), 1-16.

Sthapit, A. (2023). Effect of service quality on customer satisfaction in Nepalese banking industry (Doctoral dissertation, Faculty of Management).

Supriyanto, A., Wiyono, B.B., Burhanuddin, B. (2021). Effects of service quality and customer satisfaction on loyalty of bank customers, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 8, Iss. 1, pp. 1-17, DOI:

Thiong’o, P. K., Kilungu, M., & Kamau, C. G. (2024). Loan Portfolio Growth and Financial Performance of Commercial banks in Kenya. East African Finance Journal, 3(1), 27-47. DOI:

Wafaa, H., & Abderrezzak, B. (2014). A study of the relationship between banking service quality and customer satisfaction in Algerian public banks. International Journal of Science and Research, 3(1).

Yamane,Taro.(1967). Statistics, An Introductory Analysis, 2nd edition, New York: Harper and Row.York, McGraw-Hill. from http://




How to Cite

Muchimba, C. M., & Sinkala, M. . (2024). An Investigation of the Effect of Service Quality on Customer Satisfaction: A Case of Zanaco Bank. African Journal of Commercial Studies, 4(3), 178-185.