CUSTOMER ATTITUDES TOWARDS THE PERFORMANCE OF COLLECTIVE INVESTMENT SCHEMES

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.