Impact of corporate social responsibility on customer satisfaction in retail banking: the case of NMB, CRDB and Barclays bank Tanzania

The main purpose of this study was to assess the impact of Corporate Social Responsibility on customer satisfaction in retail banking. The study was carried out as a case study using NMB, CRDB and Barclays Bank customers to get their views and opinions regarding corporate social responsibility initiatives. A sample size of 106 respondents were used to analyze the data collected where 40 respondents equivalent to 38% were sampled from Barclays Bank customers, thirty eight respondents equivalent to 36% were sampled as NMB customers and the last 28 respondents equivalent to 26% were sampled from CRDB Bank Plc. A quantitative method was used to collect data, where a structured questionnaire was administered with a five point Likert-type scale. The study findings reveal that customer centric initiatives are more preferred than other initiatives. Most of the respondents preferred that banks should focus on improving customer service, focusing on reducing customer queues, opening more branches and ATMs. They also supported charities on education and health programs. Other programs like sports received low preference rate. The customers also said they would be satisfied if their bank focuses on improving customer services, automation of services, low interest rate charges to accounts and loans, expansion of branch and ATM networks. These research findings concur with the study by Pomering and Dolnicar (2006) where the customers chose CSR initiatives that favors them, such activities that were rated high includes bank opening new branches and adding staff, while sponsoring scholarship program, 1% of pre-tax profit to be contributed to community programs received very low positive response. This confirms that customers prefer initiatives that are beneficial to them rather than to the community. The decision makers should consciously invest resources in a way that can both meet customer expectations and profit maximization