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Customer Satisfaction in Microfinance Institutions: Insights from Ghana

Agyei-Boapeah, Henry, Adu-Boakye, Stella, Amankwah-Amoah, Joseph, Brodmann, Jennifer (2020) Customer Satisfaction in Microfinance Institutions: Insights from Ghana. Enterprise Development and Microfinance, 31 (3). pp. 164-193. ISSN 1755-1978. E-ISSN 1755-1986. (doi:10.3362/1755-1986.19-00016) (Access to this publication is currently restricted. You may be able to access a copy if URLs are provided) (KAR id:82327)

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Abstract

With increased competition in the microfinance industry in most African markets, customer satisfaction and retention are important issues for most microfinance institutions (MFIs) in the region. We rely on survey data from customers of MFIs in Ghana to examine the potential determinants of customer satisfaction in the microfinance sector. We find customer satisfaction to be significantly related to customers’ experiences and motivations such as the primary reason for associating with MFIs, and the size of credit they seek. We further find customers’ demographic factors such as educational attainment and household income levels to be related to customer satisfaction in the microfinance sector. Our results are largely consistent with the view that MFIs offer a valuable service by expanding access to small credits to poor households and microenterprises who are either denied credit by the formal banking sector or who are exploited by informal moneylenders. Further, our interviews with top managers of MFIs highlight various tactics utilised by MFIs in Ghana to manage their credit risks.

Item Type: Article
DOI/Identification number: 10.3362/1755-1986.19-00016
Uncontrolled keywords: Microfinance; Customer satisfaction; Africa; Ghana
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business
Depositing User: Joseph Amankwah-Amoah
Date Deposited: 31 Jul 2020 16:29 UTC
Last Modified: 08 Oct 2021 15:55 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/82327 (The current URI for this page, for reference purposes)
Amankwah-Amoah, Joseph: https://orcid.org/0000-0003-0383-5831
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