Abstract:
This study assesses the relationship between service quality dimensions
and customer satisfaction. Specifically, the study aimed to determine the
influence of reliability, tangibility, responsiveness, service assurance, and
empathy on customer satisfaction with retail banking services. A cross
sectional research design was adopted. Questionnaires were used to
collect data from 289 respondents, and the data were analysed using
ordinal logistic regression. Findings indicate that customers are satisfied
with the overall quality of services rendered by the retail banking sector.
Findings further reveal that reliability, tangibility, assurance,
responsiveness and empathy positively influence customer satisfaction.
The findings highlight the importance of service quality dimensions in
shaping customer perceptions and satisfaction in the banking sector, and
identify areas for development to improve overall service delivery and the
customer experience. The study's findings are particularly relevant in
emerging economies, where competition is intensifying, and customer
expectations are evolving. Findings suggest that Banks that prioritise
these dimensions can foster stronger customer loyalty, quality service
delivery, greater financial performance and sustainable growth. This
study contributes to the body of knowledge by addressing a critical
research gap in the Tanzanian retail banking sector, particularly
regarding the relationship between service quality dimensions and
customer satisfaction. Unlike previous studies that examined conventional
banking services, this study emphasises the unique dynamics of retail
banking, catering to a large unbanked population in the country. By
providing insights into specific service quality factors, the study equips
Tanzanian banks with actionable strategies to enhance customer
experiences and drive financial inclusion in an evolving economic
landscape.
