Abstract:
This study aims to evaluate customer attitudes toward the performance of collective
investment schemes in Tanzania: A Case of Unit Trust of Tanzania. Specifically, it
investigates the effects of perceived value, perceived risk, trust, and loyalty on the
performance of these investment schemes. Understanding these dynamics can provide
valuable insights for enhancing customer engagement and investment uptake. A
quantitative research approach was employed, utilizing a structured questionnaire
administered to 144 participants in Arusha City. The data were analyzed using
statistical techniques to assess relationships between the identified variables and
customer attitudes. The sample included individuals with varying employment
statuses, providing a diverse perspective on investment behaviors. The results
indicated that 76.4% of respondents were self-employed, with perceived value
significantly impacting collective investment scheme performance (p < 0.01). Also,
trust and loyalty were found to enhance customer satisfaction, contributing to a
positive investment experience. These factors collectively explain 64% of the variance
in attitudes toward collective investment schemes. The study concludes that perceived
value, risk, trust, and loyalty play critical roles in shaping customer attitudes toward
collective investment schemes in Tanzania. The predominance of self-employed
individuals suggests that this group is more inclined to engage with such schemes,
driven by their financial aspirations. It is recommended that financial institutions and
policymakers design targeted educational programs that address the specific needs of
self-employed individuals. Also, enhancing transparency and building trust within
collective investment schemes can further boost customer confidence and participation
rates in the market.
