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.