EFFECT OF TANGIBILITY ON CUSTOMER SATISFACTION AMONG MICRO FINANCE BANKS CUSTOMERS IN KENYA
DOI:
https://doi.org/10.47604/ejbsm.1415Keywords:
Tangibility; Customer Satisfaction; Service Quality; MicrofinanceAbstract
Purpose: Financial markets and institutions are central to the process of economic growth. The provision of credit has increasingly been regarded as an important tool for raising the incomes of populations, mainly by mobilizing resources to more productive uses. However, microfinance institutions in Kisumu City Kenya are still far off from reaching the required customer satisfaction index. The main purpose of the study was to establish the effect of tangibility on customer satisfaction among micro finance banks (MFB) customers in Kisumu City.
Methodology: This study was anchored on a Market based theory; Survival based theory and the Expectancy Disconfirmation theory. A correlation research design was used. Study targeted 10,300 MFB customers in Kisumu City. A sample size of 370 MFB customers was drawn from the target population using simple random sampling technique. The study used primary data from questionnaires.
Findings: The findings indicated that Tangibility is associated with 63.1% of the variation in customer satisfaction, an increase in tangibility affects customer satisfaction by 0.341. The correlation analysis to determine the effect of tangibility on customer satisfaction shows a significant correlation existed (r = 0.631, p < 0.05). This shows 63.1% of the variations on customer satisfaction are associated with tangibles.
Unique Contribution to Theory, Practice and Policy: The organization needs to train employees on various aspects of tangibility. Systems should be in place that ensures certain aspects like security and quality are retained and improved throughout customers’ lifetime.
Downloads
References
Agbor, J.M. (2011).The relationship between Customer Satisfaction and Service Quality. A study of three service sectors in Umea, Published thesis; Umea School of Business, Umea University, www.Usbe.umu.se.
Alemseged, M. (2019). The effect of service quality on customer satisfaction; In the case of main department of immigration and Nationality affairs in Addis Ababa bole international airport branch.
Ananth, A., Ramesh, R. & Prabaharan, B. (2011). Service quality GAP analysis in private sector banks, a customer perspective. Internationally Indexed Journal, 11(1), 242 -252.
Atieno R. (2001). Formal and informal institutions’ lending policies and access to credit by small-scale
enterprises in Kenya: An empirical assessment.
Central bank of Kenya (2018). Bank supervision Annual report 2018, Nairobi.
Dabholkar, P.A., Thorpe, D.I. & Rentz, J.O. (1996). A measure of service quality for retail stores: Scale development and validation.
Farris, P. (2009). Key marketing metrics: The 50+ metrics every manager needs to know (Rev.). Pearson Education UK.
Grönroos, C. (1984). A Service Quality Model and its Marketing Implications. European. Journal of Marketing, 18 (4), 36-44.
Gronroos, C. (1990). Service Management and Marketing: managing the moments of truth in service competition. Lexington Books, Lexington.
Kotler, P. (2000). Marketing Management (10th ed.). New Jersey: Prentice-Hall.
Kotler, P., & Keller, K.L. (2009). Marketing Management (12th ed.). New Jersey: Pearson Education Inc.
Mugenda, O., & Mugenda, A.(1999). Research Methods. Quantitative approaches, Nairobi African centre of Technology studies.
Parasuraman, A., Zeithaml, V., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of marketing, 49 (4), 41-50.
Parasuraman, A., Zenithal, V.A. & Berry, L. L. (1988). SERVQUAL: A multiple- item scale for measuring consumer perceptions of service quality. Journal of retailing, 64 (1), 12-40.
Sulieman, A,: (2013). Basic dimensions of the (servqual model) and its impact on the level of customer satisfaction: an empirical study of the housing bank in Karak, Jordan
Tibebe, Z (2012): Impact of service quality on customer satisfaction at the public owned National
Alcohol and Liquor Factory.
Yarhands, D. A et Al (2016), The impact of Service quality on customer satisfaction in Obuasi Electricity Company of Ghana (ECG) - The customers perspective
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Hakim Omondi Nyabundi, Dr.Victor Lusala Aliata, PhD, Dr. Alphonce Odondo, PhD
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
