Determinants Of Customer Satisfaction In Ngo’s Working As Microfinance Institutions In Tanzania: A Case Study Of Brac In Dodoma Municipality

ABSTRACT

This study aimed to find out the determinants of customer satisfactions in NGO‟s

working as Microfinance institution a case study of BRAC Microfinance institution, in

Dodoma Municipality. There were three objectives namely: (i) To determine the

extent to which customers were satisfied to the NGO‟s working as Microfinance

Institution (ii) To find out what factors determine customer satisfaction on services

rendered by NGO‟s working as Microfinance Institution (iii) To find out effective

strategies used for increasing customer satisfaction in NGO‟s working as Microfinance

Institution.

The study employed case study approach and data were collected through

questionnaires and interview. The sample for the study was obtained through

purposive random sampling procedures, quota sampling and simple random sampling.

The data analysis using by Ezzy‟s (2002) four steps of the qualitative data analysis

were analyzed using organizing questionnaires, sorting, tallying in comparison with

different views. The results were demonstrated by using simple tables, presented in

sub-heading under objectives.

The study findings on the level of customer satisfaction revealed that, the general rate

of customer satisfaction was 94% at high level and the rest 6% showed average

satisfaction. Also there were two main factors which determined the customers‟

satisfaction. These were services quality and loan interests which made the customers

perceived to be loyal and remain with the organization. There were challenges

including business movement that led to low returns of loans and poor environment for

loans services.

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The study recommends that, the government should provide a national financial pool

to provide appropriate technical and financial support where necessary. This should

involve situational analysis for getting well organized procedures before providing

loans. The procedures should start with providing financial literacy especially for the

whole community at the basic (elementary education) financial product, to build the

community with entrepreneurial skills which could help to use financing opportunity

effectively. This is for the community development as well as the whole national

development.