Effects of Customer Service Delivery on Customer Satisfaction in Micro Finance Industry in Nairobi County

Authors

  • Justus Nyangau

Abstract

Customer satisfaction with products or services is often seen as the key to a company's success and long-term competitiveness. With the increased globalization of markets, competition among market players has become more intense. In this competitive market, one of the most important factors is the achievement of customer satisfaction and service excellence. Globalized markets and borderless flow of information have resulted in intense competitive pressures and increased customer expectations. Productivity, quality, and customer satisfaction are the buzzwords in today's business scenario that demand considerable efforts on the part of the company. Further, to attain the basic business goals of survival and growth, businesses are looking for ways to attract and retain customers in the long run. The general objective of the study was to determine the effects of customer service delivery on customer satisfaction in the micro finance industry in Nairobi County. The specific objectives were to establish the effect of customer commitment, customer loyalty, and customer desired expectations and customer relations on Customer Satisfaction in Micro Finance Industry in Nairobi County. A descriptive survey design was adapted for this study. The survey is the most frequently used method for collecting information about peoples’ attitudes, opinions, habits or the effects of service delivery on customer satisfaction. The targeted population comprised 150 regular customers of the selected microfinance institutions in Nairobi County. The quota sampling method was used for a heterogeneous population. A sample size of 100 customers was drawn from a population of 150 customers. The researcher collected primary data by use of a questionnaire which was divided into 2 sections, demographic characteristics and statements according to variables: employee commitment; customer relations; service quality; service delivery; loyalty and customer satisfaction. Each of the 6 variables had 5 Likert scale response statements that respondents had to choose a measure of their agreement/disagreement ranging from strongly agree; agree; neutral; disagree; and strongly disagree. The researcher arranged data in tables, tabulated and analysed it by the use of SPSS software. The study recommended micro finance to increase awareness of the ever-increasing customer expectations and adapt accordingly to achieve customer satisfaction.

Keywords: Service Delivery, Customer Satisfaction, Microfinance and Nairobi County

 

References

Allen, Natalie J.; Grisaffe, Douglas B. (2001) Employee commitment to the organization and customer reactions: Mapping the linkages. Human Resource Management Review; Vol. 11 (3), p209, 28p

Barsky, J.D. (1992). Customer Satisfaction in the Hotel Industry: Meaning and Measurement.

Hospitality Research Journal, 16 (1), 51-73

Besterfield, D.H. (1994), Quality Control, Prentice- Hall, Englewood Cliffs, NJ Claes-Robert Julander and Magnus Soderlund Ragnar (2003). Effects of Switching Barriers on Satisfaction, Repurchase Intentions and Attitudinal Loyalty. SSE/EFI Working Paper Series in Business Administration. No.2003:1.

Bowden, Jana. (2009) Customer Engagement: A Framework for Assessing Customer-Brand Relationships: The Case of the Restaurant Industry. Journal of Hospitality Marketing & Management. Vol. 18 (6), p574-596. 23p.

Dibb, Sally; Simkin Lyndon; Pride, M. William; Ferrell, O.C.; (2006) Marketing concepts and Strategies. Houghton Mifflin Company, U.S.A

Geyskens, Inge; Steenkamp, Jan-Benedict E. M.; Kumar, Nirmalya. (1999) A Meta-Analysis of Satisfaction in Marketing Channel Relationships. Journal of Marketing Research (JMR). Vol. 36 (2) p223-238. 16p

Giese, J. L. and Cote, J. A. (2000). Defining customer satisfaction. Academy of Marketing Science Review, 1, 1-59

Jones, T. O and Sasser, W. E (1995). Why satisfied customers defect. Harvard Business Review, 73 (November/December), 88–99.

Kanji, G. and Moura, P. (2002). Kanji's Business Scorecard. Total Quality Management, 13 (1), 13-27

Kothari, C. (2004). Research Methodology: Methods & Techniques, 2nd edition. New age International Publishers, New Delhi, India.

Mano, H., and R. Oliver (1993). Assessing the Dimensionality and Structure of the Consumption Experience: Evaluation, Feeling and Satisfaction. Journal of Consumer Research, 20, 451–466.

Meyer, J. P., Stanley, D. J., Herscovitch, L., & Topolnytsky, L. (2002). Affective, continuance and normative commitment to the organization: A meta-analysis of antecedents, correlates, and consequences. Journal of Vocational Behavior, 61, 20–52.

Morgan, Robert M.; Hunt, Shelby D. (1994) The Commitment-Trust Theory of Relationship.

Journal of Marketing. Vol. 58 (3) p20. 19p.

Mugenda, O.M. & Mugenda, A.G. (2003). Research Methods: Quantitative and Qualitative Approaches. Nairobi: African Centre for Technology Studies.

Orodho J.A. (2004) Techniques of Writing Research Proposals and Reports in Education, Masda Publishers

Pantouvakis, A. (2010), The relative importance of service features in explaining customer satisfaction comparison of measurement models", Managing Service Quality, Vol. 20 No.4, pp.366-87.

Parasuraman, A., Berry, L.L., and Zeithaml, V. A. (1991), Understanding customer expectations of service. Sloan Management Review, Vol. 32, P42.

Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1988), “SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality”, Journal of Retailing, Vol. 64 No. 1pp. 12-40.

Rust, R.T. and Oliver, R.L. (1994). “Service quality: insights and managerial implications from the frontier'', in Rust, R.T. and Oliver, R.L. (Eds), Service Quality: New Directions in Theory and Practice, Sage, London, 1-19.

Theron, Edwin; Terblanche, Nic S. (2010) Dimensions of relationship marketing in business-to- business financial services, International Journal of Market Research. Vol. 52 (3), p383-

20p

University of Leicester (2011) Marketing of Services, edition 1, Fielding Johnson Building UK.

Yap, K.B., Sweeney, J.C. (2007), "Zone of tolerance moderates the service qualityoutcome relationship", Journal of Services Marketing, Vol. 21 No.2, pp.137-48.

Zeithaml V., Mary Jo Bitner, and Ddwayne Gremler (2005) Service Marketing, fourth edition, McGraw-Hill.

Zeithaml, V.A, Berry,L.L and Parasuraman, A, (1993), The nature and determinants of customer expectations of service. Journal of the Academy of Marketing Science, 21 (1) p1-12.

Downloads

Published

2017-11-30

How to Cite

Nyangau, J. (2017). Effects of Customer Service Delivery on Customer Satisfaction in Micro Finance Industry in Nairobi County. Journal of Marketing and Communication, 1(1), 1–15. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-marketing/article/view/25

Issue

Section

Articles