Assessment of service quality in micro finance institutions in Tanzania: the case of Pride (T) and Finca (T).

This study aimed at assessing the quality of service provided by MFIs and explores strategies for improving these services to maintain customers. The literature reviewed suggests that customers evaluate services through service quality dimensions which include: responsiveness, Assurance, Tangibles, Empathy and Reliability. Therefore, the study assessed the quality of services provided by PRIDE (T) using these dimensions. This study was descriptive in nature. Two sets of questionnaires were developed and administered to 80 clients and 20 staff members from PRIDE (T) and FINCA (T) both located was analyzed using Kolmogorov-Smirov, Mann-Whitney, ANOVA and Spearman Rank correlation Coefficient tests. Overall the findings indicate that clients are satisfied with the services provided by the MFIs. Specially, the findings suggest that clients perceive services differently along the five dimensions. Clients perceive service quality to be highly in assurance while it shows average in empathy and responsiveness and very low in tangibility as it is indicated in appendix 5. Furthermore the findings reveal the different views of staff on the quality of service they provide a service which can satisfy clients because there are no common service quality standards. The main conclusion from the study is the importance of service organizations in general and specially MFIs to use service standards as defined by clients to provide services. It customers perceptions which are used to evaluate services and not the views of the staff or organizations. The study also emphasizes the importance of setting service standards and communicating them to employees.