INFLUENCE OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN FINANCIAL INSTITUTION: A CASE OF CRDB BANK TEMEKE BRANCH

Abstract

ABSTRACT This study explores the impact of service quality on customer satisfaction in financial institutions, focusing specifically on CRDB Bank's Temeke branch. It investigates the roles of disconfirmation of belief, expectations, and perceived performance in shaping customer satisfaction, with a particular interest in how these elements align with customer experiences. Through survey analysis, the study identifies key customer engagement trends, such as a high frequency of weekly visits to the bank, and notes a strong response rate of 85.7%, indicating the importance of consistent, high-quality in-person services for maintaining customer satisfaction Demographic data reveals a balanced gender distribution, with a slight majority of female respondents, and a predominantly older customer base. This composition suggests variations in satisfaction and service expectations by age and gender, as older customers may have distinct service expectations due to longer-standing relationships with the bank. Tailoring service strategies to these demographic distinctions is essential for meeting the unique needs of different customer groups, fostering satisfaction and enhancing loyalty The analysis of disconfirmation of belief shows a significant gap between customer expectations and perceived service quality, with many respondents reporting neutral or negative satisfaction levels. A positive correlation between disconfirmation of belief and expectation highlights that meeting or exceeding customer expectations can improve satisfaction. However, the negative correlation between disconfirmation of belief and perceived performance suggests that unmet service expectations can diminish customer satisfaction. These findings emphasize the need for CRDB Bank to bridge gaps in service delivery to meet customer expectations better, underscoring the broader importance for financial institutions to enhance service quality through customer engagement, tailored services, and employee training.