The Impact of Frontline Employees’ Job Satisfaction on Each of ITS Succeeding Variables in The Service-Profit chain at Commercial Bank of Ethiopia

Besides imperative contribution to an economy through their foremost function of connecting the customers who have capital deficits with those customers having capital surplus, banks are facing challenges of endowing with quality service, satisfying their employees ’, retaining employees ’, improving their employees ’productivity, satisfying their external customers ’and retaining them as well as improve the resultant profitability. In a proposition to verify the conception that employee job satisfaction steers employee loyalty, employee productivity, customers ’service quality, customers ’service value, customers ’satisfaction, customers ’loyalty and bank's profitability, this study as its purpose examined the effect of customer service officers ’job satisfaction on each of its succeeding variables indicated on the service-profit chain separately by taking Commercial Bank of Ethiopia as a case bank. To analyze and to see the effect, the study used a multi-stage sampling method for data collection from both officers and external customers and then used a regression analysis on the data. The finding shows the officers ’job satisfaction of the bank significantly affects all succeeding variables in the chain. It is thus, when the bank improves its officers ’job satisfaction which can bring loyalty and productivity as well as it can bring external customers satisfaction which can make them to be retained in turn result in the repeated business then become the advocators so that the bank happens to be more profitable in the long-run.