Service quality and customers retention in Tanzania commercial banks: the case study of Dar es Salaam city

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
University of Dar es Salaam
Due to growing number of commercial banks operating in Tanzania, Polycarp (2008) found that dominance, in terms of market share, of banks has decreased from over 75 per cent over the past three years, to 70 per cent. Despite efforts made by commercial banks to retain customers, customers are still leaving their banks. The purpose of this study is to investigate service quality and retention of customers in Tanzania commercial banks. The study was carried out in the city of Dares Salaam on a convenience sample of 164 respondents through the distribution of questionnaires to bank customers followed by a personal interview with bank managers and later on all answers received were compiled for analysis. The Statistical Package for Social Sciences Version 16.0 (SPSS) was used to process and analyse data. Statistical tools such as Chi Square, ANOVA, and Kolmogorov-Smirnow Test, were used for the analysis. The research findings reveal that the overall service quality provided by the commercial banks have direct relationship with customer loyalty. Results of this analysis have also shown that the levels of customer’s loyalty in banks differ. It is concluded that, customer retention in commercial banks is influenced by service quality dimensions along with supplement of augmented services. Therefore, it is recommended that banks should emphasize more on the quality control and development and maintain long term relationship with their existing customers and organize regular training programmes on services quality.
Available in print
Customer service, Customer retention, Banks and banking, Commercial banks, Tanzania
Elly, M.(2010) Service quality and customers retention in Tanzania commercial banks: the case study of Dar es Salaam city. Master dissertation, University of Dar es Salaam. Available at