The Effect of service quality on customer loyalty in mobile money lending financial technology companies in Kenya: a case study of Branch International
Date
2019
Authors
Kadii, Yasmin
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The number of financial technology mobile money lending companies continues to grow exponentially in Kenya. The nature of the services offered is unique because these companies have no physical offices where their customers can visit for customer care services or telephone contacts that customers can call if they have problems with the service. This study, therefore, sought to examine the effect of service quality on customer loyalty in mobile money-lending financial technology companies in Kenya with a special focus on Branch International. The study used the SERVQUAL model as its measure of service quality. The study used a descriptive survey design. The target population in the study comprised 1,183,945 Branch customers which was conveniently sampled. The study also used Cochran's method of simple random sampling to achieve a sample size of3 84 customers. The study used a questionnaire to collect quantitative data. The data collected was so11ed, cleaned, and coded into SPSS version 21 for further analysis. The data were analyzed using descriptive and inferential methods like linear regression analysis. The study findings revealed that Branch's customers had high expectations of tangibility, reliability, responsiveness, assurance, and empathy. Further, the study determined that Branch's customers had a high perception of Branch’s tangibility, reliability, and responsiveness even though these perceptions fell shm1 of their expectations. The study also determined that Branch's customers had a moderate perception of the company's assurance and empathy. The study found that the perception of the Branch's services fell short of the customers' perception in all service quality dimensions. The results of the regression analysis determined that all the service quality dimensions had a positive effect on customer loyalty (75.8%). Further, the study determined that tangibility had the highest influence on customer loyalty, followed by responsiveness and reliability. Assurance and empathy were found to have positive but small influences on customer loyalty. The study recommended that Branch International should improve its service quality dimensions especially assurance and empathy so that it can inspire more customer loyalty.
Description
A dissertation submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration at Strathmore University