The impact of Services Quality of Customers Satisfaction and Retention: The Case of Tanzania Commercial Banks.

The study investigated the impact of service quality on customers’ satisfaction and retention of the Tanzania commercial banks. Three main elements were formulated as specific objectives how they influence customers satisfaction and hence their retention into using the banks services and these elements were provision of information to the customers with its variables which are availability of information when needed understanding and consumers language, accuracy and relevance of information and reliability of information; second specific object was complaint handling being practiced and its impact on customers satisfaction, with its variables being fairness of results time taken to solve a problem, process used to solve a problem and reason given for a problem and hence their retention, lastly the overall service quality and its impact on customers satisfaction and hence their retention. Furthermore, extensive field research was undertaken to obtain relevant data from a random sample of 142 customers of the commercial banks by means of questionnaires and interviews, which were then analyzed statistically. The findings indicate that information provision, complaint handling and service quality have a significant impact on the customer satisfaction and hence their retention. The overall findings indicate that there are great possibilities for improving services quality in commercial banks if the identified factors are taken into account during the whole process of service delivery. The study recommends that the management of commercial banks to allocate resources to improve service quality according to its relative importance revealed by the customers.