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Determinants of Customer Loyalty in the Zimbabwean Microfinance Sector

Author

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  • Mufaro Dzingirai

    (Midlands State University, Zimbabwe)

  • Noah Tshuma

    (Midlands State University, Zimbabwe)

  • Shingirai Sikomwe

    (Midlands State University, Zimbabwe)

Abstract

Recently, there has been an exponential increase in microfinance institutions leading to intense competition. This has impelled the interest of scholars, practitioners, and researchers in customer loyalty. Nonetheless, there is a dearth of empirical evidence on the determinants of customer loyalty in the microfinance sector. Accordingly, the main objective of this study is to establish the determinants of customer loyalty. Employing correlational research design with a sample size of 132 customers of microfinance institutions in Gweru who completed a highly structured questionnaire, the hypotheses are tested using Pearson correlation and regression analysis. The findings reveal that service quality, customer trust, and customer satisfaction have a strong statistically significant positive effect on customer loyalty. Nonetheless, a weak insignificant positive relationship between perceived microfinance image and customer loyalty is observed. It is, therefore, recommended that the managers should devise strategies to augment service quality, customer trust, and customer satisfaction.

Suggested Citation

  • Mufaro Dzingirai & Noah Tshuma & Shingirai Sikomwe, 2021. "Determinants of Customer Loyalty in the Zimbabwean Microfinance Sector," International Journal of Applied Management Sciences and Engineering (IJAMSE), IGI Global, vol. 8(2), pages 36-51, July.
    • Handle: RePEc:igg:jamse0:v:8:y:2021:i:2:p:36-51
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    Cited by:

    1. Amani Gration Tegambwage & Pendo Shukrani Kasoga, 2024. "Relationship quality and customer loyalty in the Tanzanian microfinance sector," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 138-153, March.
    2. Md Aslam Mia, 2024. "Loyalty of rural microfinance borrowers: International evidence," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 67-94, January.

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