Abstract:
This study explore the effect of service quality on customer satisfaction in the banking
industry in Tanzania, a case of Nmb bank plc, Arusha City. The specific objective of
the study is to measure the level of customer satisfaction among NMB Bank PLC
customers in Arusha City. To asses customers perceptions on the effects of service
quality dimensions on customer satisfactions and lastly to examine the challenges
facing Commercial banks to maximize customer satisfactions.
The study used mixed research design where both qualitative and quantitative
methodology were used. Sampling was done through probability sampling method.
Data were collected using both survey questions and interviews. The analysis data was
done through descriptive analysis method, SEM (Specifically on analyzing the
relationship of service quality dimension and customer satisfaction and sematic
analysis for the challenges facing commercial banks to maximize customer
satisfactions.
Findings revealed that service quality dimensions including empathy, tangibility,
responsiveness, reliability and assurance all positively impact customer satisfaction.
This suggest that NMB Bank PLC has the potential to enhance customer satisfaction
by strengthening these key services areas each of which significantly influence overall
customer experience.
The study recommended the frame work for banks to priotize and develop targeted
improvement in service delivery as well as key operational challenges and internal
factors that impacting customer satisfaction despite the high level of customer
satisfaction rate reported in this study
