Service Quality and Customer Satisfaction in National Microfinance Bank Dar-Es-Salaam Tanzania

ABSTRACT 

The study sought to establish the relationship between service quality and customer satisfaction in National Microfinance Bank, Tanzania. The study was guided by three specific objectives, that included i) investigating the extent of service quality in National Microfinance Bank, Tanzania; ii) level of customer satisfaction in National Microfinance Bank , Tanzania and (iii) finding out whether service quality significantly affects the level of customer satisfaction in National Microfinance Bank , Tanzania. This research employed descriptive correlational design to describe the relationship between service quality and Customer satisfaction, the study used a total population of 203 and a sample size of 135 respondents, and the questionnaire and interview guide were used as the research instrument. Descriptive statistics used in this study included frequencies, means and PLCC on correlation of variables. Data analysis using means showed that extent of service quality was rated satisfactory on average (overall mean=2.94) and the level of customer satisfaction in National Microfinance Bank, Tanzania was found to be satisfactory and (mean=2.96). The extents of service quality and customer satisfaction are positive and significantly correlated. The researcher concluded that the National Microfinance Bank in Tanzania provide services which meet the customers’ needs and expectations, the perceived performance of National Microfinance Bank in Tanzania exceeds the customers’ expectations which make them satisfied. The researcher recommended that; the management of National Microfinance Bank, Tanzania to set up different branches for customers and this will help the customers to access the services any time, the management of National Microfinance Bank that the customers’ problems should be solved very fast by the staff and this will help in increasing customer satisfaction, the staff of National Microfinance Bank should communicate to customers in a caring manner and this will show that they matter a lot and should use a computer system efficiently and this will help to offer good services to customers.

TABLE OF CONTENTS

DECLARATION A

DECLARATION B

DEDICATION

ACKNOWLEDGEMENT iv

ABSTRACT

TABLE OF CONTENTS

LIST OF TABLES

CHAPTERONE 1

INTRODUCTION 1

1.0. Introduction

1.1. Background of the study

1.1.1. Historical perspective

1.1.2. Theoretical Background 2

1.1.3. Conceptual background 3

1.1.4 Contextual perspective 4

1.2. Problem statement 4

1.3 Purpose of the Study 5

1.4 Specific objective 5

1.5 Research Questions 5

1.6. Hypothesis

1.7. Scope of the study 6

1.7.1. Geographical scope 6

1.7.2. Theoretical scope 6

1.7.3 Content Scope 6

1.7.4 Time Scope 7

1.8 Significance of the Study 7

1.9 Operational Definitions of Key Terms 7

CHAPTER TWO .8

REVIEW OF RELATED LITERATURE 8

2.0 Introduction 8

2.1 Theoretical review 8

2.2 Conceptual Framework 9

2.3 Related literature 10

2.4 Relationship between service quality and customer satisfaction 15

2.6 Identifying of the gaps 18

CHAPTER THREE 19

METHODOLOGY 19

3.0 Introduction 19

3.1 Research design 19

3.2 Research Population 19

3.2.1 Sample Size 19

3.4 Sampling procedure 20

3.5 Research instruments 20

3.6 Validity and reliability of the instrument 21

3.7 Data gathering procedures 21

3.8 Data analysis 22

3.9 Ethical considerations 23

3.10 Limitations of the study 23

CHAPTER FOUR 24

PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS 24

4.0 introduction 24

4,1 Profile of respondents 24

4.2 Extent of service quality 26

4.3 Level of Customer satisfaction 30

4.4 Relationship between service quality and customer satisfaction 34

CHAPTER FIVE 36

DISCUSSIONS, CONLUSIONS AND RECOMMENDATIONS 36

5.0 Introduction 36

5.1 Discussions 36

5.2 Conclusions 39

5.3 Recommendation 40

5.4 Areas for further research 40

REFERENCES 41

APPENDICES 46

APPENDIXI: I 46

RESEARCH INSTRUMENT 46

APPENDIX IL 49

INTERVIEW GUIDE 49