Arnold M. Magai and Christina Robert Kahangwa Research

CONTRIBUTION OF CUSTOMER CARE ON BUSINESS
PERFORMANCE: A CASE OF NMB GEITA TOWN
BY
MAKRINA JOHN CHANGAMIKE
BBA-30593
A Research Report Submitted in Partial Fulfillment of the Requirements

for the Award of Degree of Bachelor of Business Administration of the
University of Iringa
August, 2024
DECLARATION
I Makrina Changamike declare that this research report is my own original work and
that it has not been presented to any other University or institution for a similar or
any other degree award.
Signature…………………………………
Date………………………………………
i
COPYRIGHT
This research is the copyright material protected under the Berne convention, the
copyright Act 1999 and other international and national enactments, in that behalf on
intellectual property. It may not be reproduced by any means, in full or part, except
for short extracts in fair dealing, for research or private study, critical scholarly
review or discourse with an acknowledgement, without the written permission of the
University of Iringa on behalf of the author.
©Copyright 2024.
ii
CERTIFICATION
The undersigned certifies that she has read and hereby recommends for acceptance
by the University of Iringa a report titled “Contribution of Customer Care on a
Business Performance: A Case of NMB Geita Town”, in partial fulfilment of the
requirements for the award of Bachelor of Business Administration of the University
of Iringa.
Signature…………………………………… Date………………………….
(SUPERVISOR)
MR. MOSES SHILLA
iii
ACKNOWLEDGEMENTS
I would like to thank God for his grace upon my life, for giving me good health,
common sense and a time to complete my research. I thank him too for helping me to
own a good business that facilitated the payment of my tuition fee and other
accommodations. It was not easy to complete this research without various supports
from the kind people who dedicated their time, ideal opinions, and advice to facilitate
the fulfillment of this research. Although it is not easy to mention all of them, it is
important to recognize some who in one way or another helped me to finish my
research.
Special appreciations are extended to my supervisor Mr. MOSES SHILLA whose

encouragement and guidance played a pivotal role in the execution of the study. His
valuable insight, encouragement, support, constructive critique and constant follow-
up have been essential in completion of this study.
On the other hands, I dedicate my heartfelt thanks to my dear brother YEFRED

MYENZI and my sister-in-law GROLIA MAFOLE for their continuous support in
the whole time of my being at the University of Iringa. I am also grateful to the
University of Iringa management for encouraging me to proceed with studies when I
went through hard times.
Finally, I am indebted to all my friends whose encouragement became a walking rod

when I passed through discouraging situations.
iv
DEDICATION
I dedicate this report to the Almighty God for giving me strength and resilience
required to overcome challenges obstacles until I pursue my dreams. I am grateful
for his blessing which have consistently guided me towards personal growth and
professional accomplishments.
I also dedicate this report to my Cherished family YEFRED MYENZI and GLORIA
MAFOLE, whose unwavering support have been a light towards my dreams. May
God bestow them a life filled with good health and lasting happiness.
v
ABSTRACT
The purpose of this study was to examine customer care contribution on a business
performance. Specifically, the study assessed the Contribution of customer care on a
business performance to the National Microfinance Bank (NMB) Geita branch. The
research applied a quantitative research approach where a cross-section design was
used to gather data. Graphs and charts were used to analyze the data and summarize
the result obtained from the field. The study population was 60 respondents who
were the customers and employees of National Microfinance Bank (NMB) Geita
branch. The sample size of 38 was drawn from it. Simple random sampling technique
was used to select respondents who were the employees and customers of NMB
Geita branch.
The analysis of data was conducted using Descriptive statistic via the SPSS version
20.0 software. The findings show the significance of customer care on a business
performance. However, the contribution of customer care shows the way business
moves from its preliminary stage to the stage of stabilizing. This happens by treating
the customers fairly where they will be attracted to remaining with the business. The
customers also need to be given a chance for decision making. This research reveals
the impact and the essence of improving customer care. Nevertheless, the findings
revealed that competition in the services based on three factor which are customer
services, customer care, and quality of services as compared to the price. The
findings suggest that having those things simplifies competition in the market place.
For a stable business the above-mentioned factors are crucial as most of the people
determine the value of business by considering them especially in the banking
activities.
vi
LIST OF ABBREVIATIONS
AB Azania Bank
BBA Bachelors in Business Administration
CC Customer Care
CEO Customer Employs Over
CRDB Cooperative Rural Development Bank
CS Customer Services
HTTP Hyper Text Transfer Protocol
ICT Information Communication Technology
LTD Limited
NBC National Bank of Commercial
NMB National Microfinance Bank
SPSS Statistical Package for social Science
ROI Return on Investment
TPB Tanzania Postal Bank
TV Television
TZ Tanzania
UoI University of Iringa
www World Wide Web
vii
TABLE OF CONTENTS
DECLARATION ......................................................................................................... i
COPYRIGHT ............................................................................................................. ii
CERTIFICATION ....................................................................................................iii
ACKNOWLEDGEMENTS ...................................................................................... iv
DEDICATION ............................................................................................................ v
ABSTRACT ............................................................................................................... vi
LIST OF ABBREVIATIONS ................................................................................. vii
LIST OF FIGURES ................................................................................................. xii
LIST OF TABLE..................................................................................................... xiv
CHAPTER ONE......................................................................................................... 1
INTRODUCTION ...................................................................................................... 1
1.1 Background of the Study .................................................................................... 1
1.2 Background of the Study .................................................................................... 1
1.3 Statement of the Problem ................................................................................... 2
1.4 Objectives of the Research ................................................................................. 3
1.4.1 General Objective ........................................................................................ 3
1.4.2 Specific Objectives ...................................................................................... 3
1.5 Research Questions ............................................................................................ 3
1.6 Scope of the Study .............................................................................................. 4
1.7 Significance/Benefit of the Research ................................................................. 4
1.7.1 To the Organization (NMB) ........................................................................ 4
viii
1.7.2 To the Researcher ........................................................................................ 5
1.7.3 To the Public ................................................................................................ 5
1.7.4 To the Academician and Further Research .................................................. 5
1.8 Limitation of the Study....................................................................................... 6
1.9 Definitions of Key Terms ................................................................................... 6
CHAPTER TWO ....................................................................................................... 7
LITERATURE REVIEW .......................................................................................... 7
2.1 Theoretical Literature Review ............................................................................ 7
2.1.1 Dissonance Theory ...................................................................................... 7
2.2 Empirical Literature Review ........................................................................... 8
2.3 Knowledge Gap ................................................................................................ 12
2.4 Conceptual Framework .................................................................................... 12
2.5 Operationalization of Variables ........................................................................ 13
CHAPTER THREE ................................................................................................. 14
RESEARCH METHODOLOGY ........................................................................... 14
3.1 Area of the Study .............................................................................................. 14
3.2 Research Approach........................................................................................... 15
3.3 Research Design ............................................................................................... 15
3.4 Population and Sampling Procedure ................................................................ 15
3.4.1 Population .................................................................................................. 15
3.4.2 Sampling Strategies ................................................................................... 16
ix
3.4.3 Sample size ................................................................................................ 16
3.5 Sampling Frame................................................................................................ 17
3.6 Sources Types of Data ...................................................................................... 17
3.6.1 Primary Data .............................................................................................. 17
3.6.2 Secondary data ........................................................................................... 18
3.7 Data Collection Methods .................................................................................. 18
3.8 Data analysis ..................................................................................................... 18
3.9 Validity and Reliability .................................................................................... 19
3.9.1 Validity ...................................................................................................... 19
3.9.2 Reliability................................................................................................... 19
3.10 Ethical Issues .................................................................................................. 20
CHAPTER FOUR .................................................................................................... 21
DATA ANALYSIS, PRESENTATION AND DISCUSSION .............................. 21
4.1 Introduction ...................................................................................................... 21
4.2 Response Rate .................................................................................................. 21
4.3 Results on Groups of Respondents ................................................................... 21
CHAPTER FIVE ...................................................................................................... 53
SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................ 53
5.1 Introduction ...................................................................................................... 53
5.2 Summary of the Study ...................................................................................... 53
5.3 Conclusion ........................................................................................................ 54
x
5.3.1 Customer care services increase business operation.................................. 54
5.3.2 Strategies that the institution use to attract, engage and retain customers . 54
5.3.3 Outcomes of customer care services to the business operation ................. 54
5.4 Recommendation of the Study ......................................................................... 55
5.4.1 Government ............................................................................................... 55
5.4.2 Firm ............................................................................................................ 55
5.4.3 Community ................................................................................................ 55
5.4.4 Researchers and Academicians.................................................................. 55
5.5 Further Research............................................................................................... 56
REFERENCES ......................................................................................................... 57
APPENDICES .......................................................................................................... 59
Appendix I: Questionnaire ..................................................................................... 59
Appendix II: Proposed Budget ............................................................................... 63
Appendix: III: Proposed Research Work Plan ...................................................... 64
Appendix IV: Introduction Letter ........................................................................... 65
xi
LIST OF FIGURES
Figure 1: Conceptual Frame work.............................................................................. 13
Figure 2: The profit received correspondent to the number of customers ................. 22
Figure 3: Appreciating customers is a result of services innovation ......................... 23
Figure 4: The way strategies like promotion, sports, media (television newsletters,
Brochures, Banners) help the NMB to get more customers....................................... 25
Figure 5: Strategies the government use can affect operation of the services ........... 27
Figure 6: The services provided by National Microfinance Bank (NMB) have made
customers to stay ........................................................................................................ 28
Figure 7: The increase of a new business is a result of customer care services ......... 29
Figure 8: Teachers, Executives and Staff contribute more of profit to the NMB ...... 30
Figure 9: The capital in NMB is enough to lend the customers and return more profit
to the organization ...................................................................................................... 31
Figure 10: Quality of services measured by assurance, accessibility and availability

.................................................................................................................................... 33
Figure 11: NMB gives the quality of services as compared to other banks ............... 34
Figure 12: NMB assure the customers with quality of services and safety of account
.................................................................................................................................... 35
Figure 13: NMB coordinates and inform the customer about services changes ........ 36
Figure 14: NMB’s Channels to get customers are effective, accessible and timely .. 38
Figure 15: NMB’s Channels help the customer reduce the services costs and save
time............................................................................................................................. 39
Figure 16: The NMB Services Have Influenced Customers Retention ..................... 40
xii
Figure 17: Effectiveness of NMB’s promotional strategies in attracting customers to
open accounts ............................................................................................................. 42
Figure 18: Influences of Customers’ Feedback on Purchase Frequency ................... 43
Figure 19: NMB Resolve Customers’ Complaints on Time ...................................... 45
Figure 20: NMB Satisfies the Customers Through Services Offered ........................ 46
Figure 21: Customer Engagement with the National Microfinance Bank (NMB)
Through Grants and Donations .................................................................................. 47
Figure 22: The prioritization of customers by attendants when addressing challenges

.................................................................................................................................... 48
Figure 23: The Cost of Services from NMB is Low as Compared to Others Banks . 50
Figure 24: NMB Promised an Increased Interest to the Customers Who Deposit More
in a Fixed Account ..................................................................................................... 51
xiii
LIST OF TABLE
Table 1: Operationalization of Variables ................................................................... 13
Table 2: Response rate ............................................................................................... 21
Table 3: Result on the profit received correspondent to the number of customers.... 22
Table 4: Appreciating customers is a result of services innovation ........................... 23
Table 5: The way strategies like promotion, sports, media (television newsletters,
Brochures, Banners) help the NMB to get more customers....................................... 25
Table 6: Strategies the government can use to effect operation of the services ........ 27
Table 7: The services provided by National Microfinance Bank (NMB) have made
customers to stay ........................................................................................................ 28
Table 8: The increase of a new business is a result of customer care services .......... 29
Table 9: Teachers, Executives and Staff contribute more of profit to the NMB ....... 30
Table 10: The capital in NMB is enough to lend the customers and return more profit
to the organization ...................................................................................................... 31
Table 11: Quality of services measured by assurance, accessibility and availability 32
Table 12: NMB gives the quality of services as compared to other banks ................ 34
Table 13: National microfinance bank (NMB) assured the customer the quality of
services and safety of their account ........................................................................... 35
Table 14: NMB coordinates and inform the customer about services changes ......... 36
Table 15: NMB’s Channels to get customers are effective, accessible and timely ... 37
Table 16: NMB’s Channels help the customer reduce the services costs and save time
.................................................................................................................................... 39
Table 17: The NMB Services Have Influenced Customers Retention ...................... 40
xiv
Table 18: Effectiveness of NMB’s promotional strategies in attracting customers to
open accounts ............................................................................................................. 41
Table 19: Influences of Customers’ Feedback on Purchase Frequency .................... 43
Table 20: NMB Resolve Customers’ Complaints on Time ....................................... 44
Table 21: NMB Satisfies the Customers through Services Offered .......................... 46
Table 22: Customer Engagement with The National Microfinance Bank (NMB)
Through Grants and Donations .................................................................................. 47
Table 23: The prioritization of customers by attendants when addressing challenges

.................................................................................................................................... 48
Table 24: The Cost of Services from NMB is Low as Compared to Others Banks .. 49
Table 25: NMB Promised an Increased Interest to the Customers Who Deposit More
in a Fixed Account ..................................................................................................... 51
xv
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
This study explored the contribution of customer care on business performance

taking National Microfinance Bank (NMB) Geita Branch as a case study. The first
chapter covers the background of the study, statement of the problem, objective of
the study, research questions, significance of the study, definition of key terms, as
well as the scope of the study and study limitations.
1.2 Background of the Study
Many banks in the World will experience competition over customers for services
provided by the institution. Customer care is a process of delivering high quality
services to the clients who directly benefit from the services or goods offered by
institutions.
According to (Fontanella, 2022) customer care is defined as the process of building
an emotional connection with your customers. He argued that, customer care is less
quantifiable than customer services and is more concerned with one-to-one customer
interaction. Also, customer care describes how people are treated when they interact
with a brand. This includes all experience with a company and its employees before,
during and after a purchase. Customer care is an important aspect of customer
services because it fosters an emotional connection with the brands community.
Philipp Kotler, (1998) considers customer care as those promises made to customers
and not guaranteeing things that cannot be possible given the nature of the operating
environment. To him, customer care is when company treats their customers with
respect and kindness and builds an emotional connection with them. Customer care is
more than just delivering the services that consumers expect from the business or
providing the right technical support. On the other hand, Peter Alig (2024) regards
customer care as emotional connection that builds brand with its customers.
1
Customer care is indicated by quality of the services, increase of revenue and profit
as well as high customer retention rate.
In this study, the interest is to establish connection between customer services
offered by institutions and the result thereof especially on recording higher profit
margins, increasing customer base, introduction of new products of the brand and
related result.
1.3 Statement of the Problem
Customer care is a complex term but it is simply applied in a business operation to

enhance performance. It is also applied in a profit demand hence it is relevant for
greater business outcomes. Customer care is dynamic as it changes according to the
environment. One of the areas of interests in this research was to find out how the
environment of mining business in Geita has contributed to create other businesses in
town that in one way or the other have created potential and real customers of the
NMB bank.
Customer care is not a natural phenomenon but is created by institutions that desire
for greater impact on their performance. It is therefore undisputable that not all
institutions have good customer care services and that determines their performance
too. This research assessed whether the NMB has a good customer care system that
flows from the headquarter to the branches or each branch has its own system. Also,
it assessed the effectiveness of the NMB services to the customer and how the
customers have helped the branch to make profit or increase customers.
As Philipp Kotler (1998) argued, there is a need to have an emotional attachment
between institutions and their customers for better performance and good profit. To
make high profits, there is a need for institutions to attract, recruit and retain
customers. This research explored the strategies that NMB uses to attract, engage and
retain their customers in Geita branch. This was analyzed along with the extent to
which the institution has been performing and making profit too.
Moreover, customer care cannot stand alone as it can go beyond the customer
satisfaction and loyalty, employee satisfaction, and building strong brand reputation.
According to (Rudawsk & sobon, 2009) better customer services leads to happier
2
customers and more profit for banks. There is a need for detailed research to prove
the contribution of customer care satisfaction to the NMB Geita town branch.
Under this research several ways were used to test/measure the contribution of
customer care on a business performance, set a clear sales goal, use data driven
insight, and promote their services to the greater community. There was also the
component of effective customer care management system within the institution
which was examined during the course of this study although the focus was much on
the way the effectively managed customers contribute to a business performance.
1.4 Objectives of the Research
1.4.1 General Objective
The general objective of this research was to examine customer care contribution on
a business performance.
1.4.2 Specific Objectives
This research was guided by the following specific objectives;

i. To measure way good customer care services increases business operation at
NMB Geita Branch.
ii. To examine the strategies that the institution uses to attract, engage and retain
customers.
iii. To determine the outcomes of customer care services to the business
performance at NMB Geita branch.
1.5 Research Questions
i. How good customer care services increase business operation?

ii. What are the strategies that the institution (NMB Geita Branch) uses to attract
engage and retain customers?
iii. What are the outcomes of customer care in business performance?
3
1.6 Scope of the Study
This study focused on the contribution of customer care on business performance in

Geita town. The investigated the comprehensive relationship between customer care
practices and the business performance within the banking sector. The study
determined the challenge faced by NMB in achieving its performance targets.
1.7 Significance/Benefit of the Research
1.7.1 To the Organization (NMB)
This study has quite a lot of significance to the Institution. First, the findings of
this study will help the bank to correct the mistakes that occur during their operations
that sometimes contribute to customers shun and opt for other banks. Secondly, the
findings will lead to improved business performance. Insights gained from the
research can help banks optimize their customer care strategies, leading to improved
financial performance through factors such as increased customer retention, higher
revenue per customer, and reduced operational costs. Thirdly, the study contributes
to enhanced customer experience. By understanding the factors that contribute to
positive customer care experiences, banks can tailor their services better to meet
customer needs and preferences, leading to higher satisfaction levels and increased
loyalty. Fourthly, the findings are essential in the competitive advantage. Banks that
excel in customer care can distinguish themselves from competitors in a crowded
market, attracting new customers and retaining existing ones by offering superior
service and support. Fifthly, the study findings may lead to increased trust and
reputation. Positive customer care experiences can enhance the bank's reputation and
build trust with customers, leading to positive word-of-mouth referrals and a stronger
brand image in the marketplace. The sixth significance of this study is in employee
engagement and satisfaction. Research findings will inform employee’s training and
development programs focused on delivering exceptional customer care, leading to
higher levels of employee satisfaction, engagement, and productivity. The seventh
and last point is innovation and technology adoption. This research sheds a light on
innovative approaches and technological solutions for enhancing customer care in
4
banks, guiding investment decisions and driving innovation in service delivery
channel. By prioritizing customer care and building customer trust and reaching
customer expectation, bank can establish long term profit and growth.
1.7.2 To the Researcher
The study will help the researcher to measure if there is a good or bad customer
care at the National Microfinance Bank (NMB) and advise the bank accordingly if
they want to improve business performance. The study will help the researcher to be
awarded a Bachelor degree in Business Administration as requirement for all
undergraduate students at the University of Iringa.
1.7.3 To the Public
The study will help the customers to get quality services under the improvement of
customer care in National Microfinance Bank. They will also access the loans from
the bank which will make them engage on different activities such as
entrepreneurship as well as small and big businesses. When the bank offers services
that satisfy the customers, it is expected that more business will be conducted in the
community and they will need to use the services of the bank. For that matter, the
bank will benefit from increasing customer but also the community will benefit from
availability of good services from the bank. The bank will therefore increase its
revenue and profit margins.
1.7.4 To the Academician and Further Research
For researchers, this study area is an opportunity for further inquiries into the gaps
that will have been noted given the fact that the scope of the study was limited by
both time and financial resources. As a young researcher, I may also be motivated
just like other young scholars in Universities to undertake a more detailed study that
will take me beyond the scope of this study for further academic advancement.
5
1.8 Limitation of the Study
This research was conducted in three months where it was difficult to collect
comprehensive data by considering the participation of employees and customers.
Budget constraint was another limitation. This research needed enough money to
cover all the costs involved such as food and accommodation, field travels,
stationaries as well as other printing costs.
1.9 Definitions of Key Terms
Customer refers to any individual, organization, or entity that purchases goods or

services from a business or engages with it in some capacity. Customers can be
categorized into different types basing on their relationship with the business, their
purchasing behavior, and their needs.
Customer care encompasses the range of activities and processes that businesses
undertake to meet the needs and expectations of their customers. It involves
providing assistance, support, and solutions to customers before, during, and after
their interactions with the business's products or services.
Customer service is the practices of providing help and support to both new and
existing customers, it can take place before during and after a sale it is an essential
party of the overall customer experience.
Business performance refers to the measurement and evaluation of how effectively
a business is achieving its objectives and goals. It encompasses various aspects of a
business's operations, financial health, and strategic.
6
CHAPTER TWO
LITERATURE REVIEW
2.1 Theoretical Literature Review
2.1.1 Dissonance Theory
Dissonance Theory suggests that a person who expected a high value product and
received a low value product would recognize the disparity and experience a
cognitive dissonance (Cardozo, 1965). That disconfirmed expectations create a state
of dissonance or a psychological discomfort (Yi, 1990). According to this theory, the
existence of dissonance produced pressures for its reduction which could be archived
by adjusting the perceived disparity. This theory hold that post exposure ratings are
primarily a function of the expectation levels because the task of recognizing
disconfirmation is believed to be psychologically uncomfortable. These consumers
are posited to perceptually distort expectation discrepant performance so as to
coincide with their prior expectation level (Oliver, 1977.p.480). For instance, if a
disparity exists between product expectations and product performance consumers
may have a psychological tension and try to reduce it by changing their perception of
the product (Yi, 1990). Cardozo argues that consumers may raise their evaluations of
that product when the cost of that product to the individual is high goods and are
confronted with an unappetizing meal. The consumer who had driven a long distance
and paid high price for the meal in order to reduce the dissonance might say that the
food was not really as bad as it appeared or she like overcooked meal.
This theory has not gained much support from researchers partly because it is not
clear whether consumer would engage in such discrepancy as the model predict in
every consumption situation. In his criticism of dissonance theory, Oliver (1977) for
instance, argues that generally it is agreed that satisfaction results from a comparison
between X one’s expectation and Y product performance. Thus, it is the magnitude
and direction of this difference which affects one post decision affect level serves
only to provide the comparative baseline. Moreover, consumer will be under no
7
particular pressure to resolve the x-y difference. In fact, satisfaction/dissatisfaction is
through the rise from recognition and acknowledgment of dissonance (p206).
If the dissonance theory holds true then company should strive to raise expectations
substantially above the product performance in order to obtain a higher product
evaluation (Yi, 1990). However, the validity of this assumption is questionable.
Raising expectations substantially above the product performance and failing to meet
these expectations may backfire. As small discrepancies may be largely discounted
while large discrepancies may result in a very negative evaluation. This suggestion
fails to take into account the concept of tolerant level. The tolerant level suggests
suggest that purchases are willing to accept a range of performance around a
point estimate as long as the range could be reasonably expected. When perceptions
of a brand performance which are close to the norm (initial expectation) are within
the latitude of acceptable performance and then it may be assimilated toward the
norm (Woodruff et al., 1983). That is, perceived performance within some interval
around performance norm is likely to be considered equivalent to the norm.
However, the distance from this norm is greater enough than is perceived which is
contrary to this model’s assumption.
The dissonance theory fails as a complete explanation of a consumer satisfaction.
However, it contributes to the understanding of the fact that expectations are not
static as they may change during a consumption experience. For instance, the
importance attached to pre-holiday expectation may change during the holiday and a
new set of expectations may be tourist satisfaction and complaining behavior.
2.2 Empirical Literature Review
Fredy (2022) examines the effect of customer services on organizational

performance in Tanesco. The main objective of the study was to examine the effect
of customer services on organizational performance in TANESCO: A case study of
Moshi district in Kilimanjaro region. Specific objectives were: to examine the
current situations of customer services on organizational performance at TANESCO
in Kilimanjaro region, to identify the challenges of customer service on
organizational performance at TANESCO in Kilimanjaro region, and to assess the
8
effectiveness of customer service on organizational performance at TANESCO in
Kilimanjaro region. The simple random sampling method was used to select 63
respondents. Primary and Secondary data were collected in this study. Instrument to
be used to collect primary data was a self-administered questionnaire while published
articles and researches conducted by other researches as well as company policies
was used to collect secondary data. Data from the questionnaires were analyzed
quantitatively using descriptive and inferential statistics provided by SPSS. Findings
indicated that by getting involved in customers social causes boost, appreciating
customers and responding to customer service complaints grows customer lifetime
value are current situations of customer services which affect organizational
performance at TANESCO. Findings revealed that there is unclear communication,
shortage of facilities to connect electricity services and high costs of producing
electricity. To the challenges of customer service on organizational performance at
TANESCO. Findings showed that establishing and enhancing control mechanisms,
making customers to comment on the employee services and seeking customer
feedback have enhanced the organizational performance of TANESCO. The
researcher recommends that TANESCO management could consider periodic
training of workers on customer service, particularly through strong client
relationships and presentation enhancements. Also, it was recommended that further
studies should be done on the role of information technology on the provision
customer services. Also, qualitative research should be conducted on the effect of
customer services on organizational performances.
Nick chemosit (2014) conducted a study on customer services strategies and bank
performance in Kenya; A survey of selected commercial banks in Eldoret Basin
Gishu county Kenya. He examined the adverse of competitive and globalized
business environment to financial institutions. He came up with unique strategies that
enabled them to achieve competitive advantages. Several studies have been carried
out on customer service and its impact on bank performance, but few have exploited
the customer service strategies hence this study examined the effects of customer
service strategies on bank performance. The specific objectives of the study were: to
determine effect of human resource management strategies on performance of
commercial banks, to evaluate effect of technological strategies on performance of
9
commercial banks, and to examine the effect of service delivery environment on
performance of commercial banks. This study was guided by Resource-based view
theory, Information Technology alignment model and Attribute quality service
model. A survey was conducted on all the 26 commercial banks operating in Eldoret
town. The study employed a descriptive survey research design, while the target
population was 146 employees of commercial banks namely; retail and banking
managers, corporate managers, ICT managers, branch managers and customer
experience managers. Systematic sampling was used to select the required sample
size of 73. Data was collected using structured questionnaires, and self-administered
to the respondents. Quantitative technique was used to analyze the data. Data was
analyzed using quantitative analysis of descriptive and inferential statistics.
Descriptively the data was analyzed using frequencies and percentages while
inferentially the data was analyzed using multiple regression Model to determine
relationship between variables. The study results indicated that there was a
significant relationship between human resource management strategies and
performance of commercial banks (β=0.226, p=0.153); there was a significant
relationship between technological strategies and performance of commercial banks
(β= 0.586, p = 0.000) whereas there was a significant relationship between service
delivery environmental strategies and performance of commercial banks (β=0.206,
p=0.016). The study concluded that human resource management strategies affect
performance of commercial banks, since proper communication channel enhances
effectiveness between management and employees in commercial banks. The results
also revealed that, technological strategies affect performance of commercial banks
since internet banking has low maintenance costs leading to high levels of returns in
the bank where you can withdraw or deposit money through the phone than the
customer coming to the bank. In addition, the study found out that service delivery
environmental strategies affect performance of commercial banks since the quality of
service the bank offers, is designed to serve every customer depending on his or her
request such as enquiries, account opening and other services.
10
The study therefore, recommends that the management should implement proper
human resource management strategies, adopt improved technological strategies and
last but not least, to enhance proper service delivery environmental strategies in order
to achieve their goal. The study also recommended other studies to be carried out on
the same in order to improve the quality of the findings.
Jepchirchir (2008) conducted a study on the influence of customer care services on

organization performance. The purpose of the study was to establish the influence of
customer service on organizational performance of Gracia Gardens hotel within
Nairobi, Kenya. The objectives of the study were to determine how communication
influences the organizational performance, to examine how time taken by customers
before being served influences organizational performance, to determine how staff
etiquette influences the organizational performance, and to examine the extent to
which customer care training influences organizational performance of Gracia Hotel.
The study utilized a survey design. It employed face to face interviews and semi
structured interviews as tools to collect data. The study reveals that, for
communication policies to be effectively implemented those affected who are largely
the customers and employees should be involved by inviting them to a meeting. At
the same time, the type of food and machines/manpower are the main determinants
to the time taken before serving the customer. The researcher also recommends that
organization should enhance customer service through maintaining the appropriate
dressing code within their business environment. In addition, the management of
different firms in hotel industry should consider frequent training of employees on
customer services. Hotel companies should also employ effective employee etiquette
as manifested by mutual respect among all stakeholders. The hotel businesses should
also consider employing mechanisms of improving on efficiency though reduction of
time spent to serve the customers. All the above will enhance performance in the
hotel industry.
11
2.3 Knowledge Gap
Reinartz and Kumar (2015) examined the role of customer care in driving long term
customer relationship and sustainable business growth. Through personalized and
timely support to customers, business can enhance customer loyalty and differentiate
itself from competitors in the market. Fredy (2022) talked about customer services in
the angle of assessing the effectiveness of customer services on the organization
performance at TANESCO in Kilimanjaro region. He examined the current situation
of customer services and the improved/solved challenges by the organization.
Harvard (2015) highlighted the importance of proactive customer care in reducing
customer churn and increasing customer lifetime by addressing customer issues.
Prompt and effective business cannot only retain existing customers but also attract
new ones through positive world of mouth. Zaki and Osman (2019) found that
business with superior customer care practices report higher level of customer
satisfaction which in turn leads to greater customer loyalty and increased revenue.
The reviewed literature show that good customer care strategies contribute to good
business performance. Customer care entails promotion, offering gift during special
bank days, providing soft loans, providing education to the employees about
customer care like the use of polite language to the customers. It involves also
educating the customers about the services offered and the changes in the services
offered. From these literatures it was found that little has been done on the
contribution of customer care on business performance. It is in this ground that the
researcher conducted a study to cover the gap by assessing the contribution of
customer care on business performance taking NMB Geita Branch as a case study.
2.4 Conceptual Framework
Moses (2023) defines conceptual framework as a network, or “a plan,” of interlinked

concepts that together provide a comprehensive understanding of a phenomenon or
phenomena. The figure below shows a proposed conceptual framework for this
study.
12
Figure 1: Conceptual Frame work
Independent variables Dependent variable

Quality of services
 Services Innovation
 Services Assurance
 Services Reliability
Financial metric
 Profitability
Channel effectiveness
 Response time  Risk
 Cost per time  Cost efficiency
 Channel Accessibility
Customer retention rate

 Customer feedback trends
 Repeat purchases
frequency
 Customer complain
resolution
Source: Field Data (2024)
2.5 Operationalization of Variables
Table 1: Operationalization of Variables
Variable Indicators Measurement

Quality of  Services innovation Ordinal scale
service  Services assurance
 Services reliability
Channel  Response time Ordinal scale
effectiveness  Cost per interaction
 Channel accessibility
Customer  Customer feedback trend Ordinal scale
retention rate  Repeat purchases frequency
 Customer complain
resolution
Financial metric  Profitability Ordinal scale
 Risk
 Cost efficiency
13
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Area of the Study
Somekh et al., (2005) define research methodology as both the collection of methods
or rules you apply to your research as well as a principal theories and values that
support your research approach. Area of the study was Geita town council. Geita
region has many kinds of banks like National Bank of Commercial (NBC), Tanzania
Poster Bank (TPB), Azania Bank (AB), Cooperative Rural Development Bank
(CRDB) and National Microfinance Bank (NMB). National Microfinance Bank
(NMB) was selected as a case study. The area was chosen because few researches of
this kind have been conducted there. The other reasons for opting the area were a
good number of customers who opted to use NMB than other banks, and the
researcher familiarity with the environment.
The break-up of National Bank of Commercial in 1997 by the act of parliament gave
birth to other three new entities namely NBC Holding Limited, National Bank of
Tanzania and National Microfinance Bank (NMB). Initially NMB could only offer
savings accounts, with limited lending capabilities. NMB Bank Limited licensed as a
class financial institution by Nepal Rastra Bank in May 2008 have been operating in
the Nepalese financial market over twenty years and is one of the leading
commercial banks in the banking industry. The founder of NMB is James Andrew
Mushore. However, there are 226 branches of NMB, over 8000 Agents and more
than 800 ATM across the country and in all districts of Tanzania. NMB has over
4million customers and has employed over 3450 staff. The CEO of NMB Sunil KC
was introduced on March 14, 2017. NMB stand in the core values which are
Integrity, Compliance Customer focus, Team work and Innovation. The vision of
NMB is to be the leading financial services group in the banking industry, with the
mission to provide premium financial services to existing and potential higher net-
worth individual and business and uniquely branded technology enabled product to
SMEs and the broader market. (https://www.nmbbank.co.tz)
14
3.2 Research Approach
Creswell (2015) describes a research approach as plans and procedures for research
that spans the steps from broad assumptions to detailed methods of data collection
analysis and interpretation. Similarly, Kumar (2016) states that a research approach
is a plan and procedure that consists of broad steps towards data collection analysis
and interpretation. The study considered quantitative approach for the purpose of
archiving the objective of the study. Quantitative research according to Watson
(2015) refers to the collection of techniques for systematically investigating social
phenomena using statistical or numerical data. This approach is statistical because it
creates more opportunity for learning. The scientific approach was used to forecast
the next result and create high independent data. Therefore, the researcher decided to
use quantitative approach where the survey method was applied to collect
information from the NMB employees and customers.
3.3 Research Design
According to Saunders et al., (2012) research design is a plan aimed at answering a

specific research question, and concerns for proper research data. It brings together
several components, strategies and method to collect data and analyze them.
Research design it all about planning for data collection for the purpose of realizing
research objective. The researchers used cross sectional design to describe behavior,
attitude, value and characteristic. According to Gay (2012 p.183) descriptive research
involves collecting data and testing hypotheses or answering questions about the
opinions of people. The method used for collecting of data was questionnaires.
3.4 Population and Sampling Procedure
3.4.1 Population
According to Satishprakash (2020) population refers to a set or group of all units on

which the findings of the research are to be applied. The study had a population of 60
including the employees and customers of National Microfinance Bank (NMB) Geita
15
branch. The branch was selected as it deals with rendering services like loans to the
entrepreneur and business women in order to boost community development.
3.4.2 Sampling Strategies
Jopnes et al., (1955) define sampling as the process or technique of selecting a

suitable representative from the population for the purpose of determining
parameters or characteristic of the whole population. In other word is the process of
selecting representative elements from a given population (Kothari 2014).
The study used probability sampling because all the elements in the population had
equal chance to be selected as a sample. The researcher used simple random
sampling to select the participants for this study. There were several banks in Geita
town but the study randomly selected NMB among other. Simple random sampling
was also applied to get respondents from the customers and employees of National
microfinance Bank (NMB).
3.4.3 Sample size
According to Jopnes (1955) and Dillman et al., (1994) sample size is a group of
people, objects, or items that are taken from a large population for measurement.
Sample size identify clear method by using Slovin’s method. The following formula
was used to get the sample size.
Formula
Where
e= Marginal of error
N= Population of the study
n= the number of selected of public servant, petty traders, customer care services,
department of management, Farmers and others
We are suggested the data according to the following
Public servant examples Teacher, health worker, administrators=30
Customer care services and department of management= 5
16
Farmers and others= 5
Petty traders= 20
Where by
N= 30+5+5+20=60
e=0.1
n=?
60/1+60(0.1)
60/1+60(0.1)2) =
60/1+ (60×0.01) =
60/1+0.6 =
60/1.6=37.5 =38
Therefore, the sample size of the study was 38 respondents. The sample size is
sufficient to give reliable facts regarding contribution of customer care on a business
performance.
3.5 Sampling Frame
Cochran (1977) define sampling frame as a list of members of the population of

interest from which a probability sample is selected. The sampling frame is an
analytical element in probability sampling. The sampling frame of this study was the
data from employees and customers concerning the National Microfinance Bank
(NMB) at Geita branch.
3.6 Sources Types of Data
This study used both primary and secondary data.
3.6.1 Primary Data
According to Ajayi (2017) primary data is an original and unique data, which is
directly collected by the researcher from sources such as observations, surveys,
questionnaires, case studies and interviews. Survey method was used in collecting
primary data. Under this method the structured questionnaire was created and
distributed to the employees and customer of National Microfinance Bank (NMB).
17
3.6.2 Secondary data
According to Vartanian (2010) secondary data is the one that has been previously
gathered and is under consideration to be reused. Secondary data is not original.
Secondary data was obtained from publications, websites and statistical documents
from National Microfinance Bank (NMB) database.
3.7 Data Collection Methods
Ahmad (2012) define questionnaire as a set of questions on a topic or group of topics

designed to be answered by the respondents. Questionnaire asks questions which
helps a researcher to come up with appropriate feedback from a large sample.
Questionnaire can consist of both close ended questions and open-ended questions to
be answered by the respondent. Structured questionnaire was prepared and
disseminated the National Microfinance Bank, Geita branch employees and
customers.
3.8 Data analysis
Data analysis is a process of systematically searching and arranging transcript, field

notes, data and other materials obtained from the field with the aim of increasing
ones understanding and enabling its presentation to others Rossman et al., (1999).
Data was analyzed using the statistical package for social sciences (SPSS) version
20.0. Answers from different respondents were checked and compared for validity.
Data was edited for accuracy and completeness, classified and tabulated for ease of
analysis and interpretation. In editing the researchers passed through records of the
interviews, questionnaires and secondary data collected from other materials to check
if they are consistent or not. To facilitate analysis and interpretation data were
classified according to characteristics and nature, and according to the research
objectives and then represented in form of statistical tables.
18
3.9 Validity and Reliability
3.9.1 Validity
According to Sattler (2008) and Corsello et al., (2005) validity refers to the degree
that the items on a test accurately represent the domain that the test is aiming to
measure. The objective of doing this research is to investigate and build the validity
in order to decide the interaction to the judgment of their result.
The researcher cited the materials from different sources in order to increase external
validity. The pre testing of questionnaire and interview was conducted to check if the
instruments will provide the accurate data.
3.9.2 Reliability
Reliability is the degree of consistence of a measure; a test was reliable when it gives
the same repeated result under the same conditions (Wilson 2009). Reliability tells
you how consistent a method measures something when you apply the same method
to the same sample under the same condition.
Middleton (2023) describe the four types of reliability where each can be estimated
by comparing different sets of results produced by the same method. Tests retest
reliability measures the consistence of results when you repeat the same test on the
same sample at a different point in time. Interrater reliability also called
Interobserver reliability measure the degree of agreement between different people
observing or assessing the same thing. Parallel form of reliability measures the
correlation between two equivalent versions of a test. Internal consistency assesses
the correlation between multiple items in a test that are intended to measure the same
construct. This study applied the test-retest to ensure reliability of instruments
because they measure the same test over time.
19
3.10 Ethical Issues
Ethical issues are principle that helps a researcher to design research. According to
Ahsan et al., (2021) ethical issues in research are some of the genres that researchers
follow to protect the right in developing research strategies and building trusted
relationship between the study participants and investigator.
The letter from the University of Iringa through the faculty dean justified a
researcher’s request for the practice of data collection. This helped the researcher be
receiver in the municipality authorities where she was given a permission to visit the
field are for data collection. Respondents were asked for their willing to participate
without being forced and the reasons and value of the research were kept clear to the
respondents. The data collected from the respondents were treated with the high level
of confidentiality.
20
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND DISCUSSION
4.1 Introduction
This chapter focuses on the presentation and analysis of data. The study aimed at
evaluating the contribution of customer care on a business performance. The data
presentation and analysis are divided into two sections. Section one present the
general respondent’s information and the other showcase research- related findings.
4.2 Response Rate
A total of 38 self-managed questionnaires were distributed to the respondents and all

of them were filled and returned to the researcher. This gives a response rate of
100% which is excellent for the study.
Table 2: Response rate
Categories Frequency Percentage (%)

Returned questioners 38 100%
Unreturned questioners 0 0
Total 38 100%
Sources: Field Data, (2024)
4.3 Results on Groups of Respondents
The results as were obtained from the field shows that 80% of respondents were the
National Microfinance Bank (NMB) customers who were the public servant
including Teachers, Health workers, and administrators. Other respondents were the
farmers and petty traders. The National Microfinance Bank (NMB) employees/staff
were 20% of the respondents.
21
Table 3: Result on the profit received correspondent to the number of
customers
Frequenc Percent Valid Cumulative

y Percent Percent
STRONG
V 7 87.5 87.5 87.5
AGREE
al
AGREE 1 12.5 12.5 100.0
id
Total 8 100.0 100.0
Figure 2: The profit received correspondent to the number of customers

The data on the relationship between profit and customers are presented as they were
collected through questionnaire.
Statement 1: The data concerning this statement are summarized in a frequency
distribution table below. The responses are categorized into two groups: "strong
agree" and "agree". This suggests that questionnaire was designed to measure
respondents' attitudes about the extent to which they believe profit related to the
number of customers. The findings show that 7 respondents (87.5%) strongly agreed
while 1 respondent (12.5%) agreed moderately with the statement. The total number
of valid responses is 8, indicating that there were 8 respondents who answered this
22
particular question. The valid percent matches the normal percent since there are no
missing responses. The cumulative percent indicates 87.5%, which suggests that
87.5% of respondents replied with "strong agree". A significant majority of
respondents (87.5%) believes that there is a strong connection between profit and
customers. The results also suggest that the respondents support the idea that
increasing the customer will lead to increased profits. This suggests that the bank
operate in businesses with good profit generation. This insight can be crucial for
business strategy, customer engagement, and marketing efforts focused on extending
reach and enhancing customer acquisition. In summary, this data indicates a strong
consensus among a small group of respondents that customer numbers are closely
tied to profit outcomes.
Table 4: Appreciating customers is a result of services innovation
Frequency Perce Valid Cumulative

nt Percent Percent
NEUTRAL 1 12.5 12.5 12.5
Va STRONG
7 87.5 87.5 100.0
lid AGREE
Total 8 100.0 100.0
Figure 3: Appreciating customers is a result of services innovation
23
The data as presented in a frequency distribution table summarizes the responses to a
statement regarding the relationship between customer appreciation and service
innovation. The findings are analyzed as follows;
Statement 2: The data are organized into a table that captures the frequency of
responses to the specific assertion: “Appreciating customers is a result of service
innovation.” This analysis is important for understanding how service innovation
impacts customer relationship. This response implies that one participant felt neither
positive nor negative about the statement. This could suggest a lack of strong feeling
or uncertainty about the connection between service innovation and customer
appreciation.
The majority (87.5%) of respondents, strongly agreed with the statement, indicating
a very positive view on how innovations in services foster customer appreciation.
Either, 1 participant chose "neutral," which accounts for 12.5% of the total responses.
This overwhelming tendency suggests a strong consensus that service innovation is
essential for enhancing customer appreciation. The total number of valid responses is
8, indicating that all respondents participated in this particular question. The
cumulative percent is 12.5%, indicating the "neutral" choice.
Since majority of respondents strongly agreed that there is a direct link between
service innovation and customer appreciation, it indicates a robust belief among
respondents that when companies innovate their services, customers are likely to feel
valued and appreciated. The neutral response may signify that a respondent may not
have enough information about the matter. There could be an awareness of cases
where service innovation has not led to increased customer appreciation, suggesting
complexity in the relationship. Alternatively, it could mean that they recognize other
factors (such as the quality of products, business practices, etc.) that equally affect
customer appreciation. The data presents a compelling argument for organizations to
focus on service innovation. By innovating and improving services, businesses are
more likely to enhance how their customers perceive and appreciate them.
Companies could leverage this information strategically, perhaps by investing in
innovation initiatives that directly impact customer experience, such as enhanced
service delivery, personalized interactions, or the adoption of new technologies.
Given the robust agreement but the presence of neutrality, it may be beneficial for
24
further research to explore the specific aspects of service innovation that contribute
to heightened customer appreciation. In summary, the data demonstrates a strong
consensus that appreciating customers is directly linked to service innovation. This
insight can guide businesses in shaping their customer engagement strategies and
help them prioritize innovations that foster customer loyalty and satisfaction. The
neutral response suggests room for further exploration and understanding of
customer perceptions. Overall, the findings highlight the importance of continuous
service development as a core strategy for enhancing customer relationships.
Table 5: The way strategies like promotion, sports, media (television

newsletters, Brochures, Banners) help the NMB to get more customers
Frequen Percent Valid Cumulative

cy Percent Percent
4.
Valid 8 100.0 100.0 100.0
00
Figure 4: The way strategies like promotion, sports, media (television

newsletters, Brochures, Banners) help the NMB to get more customers
25
Statement 3: The findings as they appear on the table above suggests that, there is a
single valid entry for a promotional strategy related to the National Microfinance
Bank (NMB), specifically with a value of 4.00, which represents 100% of the
responses. Here’s a breakdown of how the given promotional strategies (e.g., sports,
media like television, newsletters, brochures, banners) could potentially help NMB
attract more customers. Sponsoring sports events or teams can significantly increase
brand visibility, especially if the events are widely followed. Brands Associated with
popular sports can enhance its image and appeal to sports enthusiasts. Engaging with
local sports can build a positive reputation and foster community relations.
Television ads can reach a large and diverse audience, providing extensive exposure
for NMB’s services. Ads can be tailored to target specific demographics based on the
channels and time slots. Visual and auditory elements in TV ads can create a strong
impression and brand recall. Newsletters allow NMB to communicate directly with
potential and existing customers, providing information about new services,
promotions, and updates.
Personalization: Content can be tailored to the interests and needs of the audience,
increasing engagement and relevance. Regular updates can build trust and keep the
bank top-of-mind for customers. Brochures can provide comprehensive information
about NMB’s services, benefits, and contact details in a tangible format. They can be
distributed in various locations, such as branches, events, and community centers,
making it easy for potential customers to learn about the bank. Well-designed
brochures can capture attention and convey professionalism. Banners placed in
strategic locations (e.g., high-traffic areas, event venues) can attract attention and
increase brand awareness. They deliver concise messages and promotional offers,
making it easy for people to grasp key information quickly. Compared to other
media, banners can be a cost-effective way to promote NMB’s services. Given that
this study’s findings suggest 100% effectiveness or preference for a particular
strategy (implied by the 4.00 value), it’s important for NMB to focus on the most
effective promotional method. However, a diversified approach utilizing multiple
strategies can often yield better results by reaching different segments of the market.
Continually assessment of the effectiveness of each promotional strategy through
metrics such as customer acquisition rates, engagement levels, and return on
26
investment (ROI), must be prepared to adapt and optimize promotional strategies
based on performance data and market feedback. Combining multiple channels (e.g.,
TV ads with brochures and social media) can create a more comprehensive
marketing approach and enhance general effectiveness. Overall, leveraging a mix of
promotional tools can help NMB increase its customer base, enhance brand
recognition, and effectively communicate its offerings to potential clients.
Table 6: Strategies the government can use to effect operation of the services
Frequency Percent Valid Percent Cumulative Percent

1.00 7 87.5 87.5 87.5
Va 5.00 1 12.5 12.5 100.0
lid Tota
8 100.0 100.0
l
Figure 5: Strategies the government use can affect operation of the services
27
Statement 4: The table above indicates the different frequencies as were collected in
the field of study. It also presents the percentage of valid responses (excluding any
missing or invalid data). There is also a cumulative distribution of frequencies. The
findings show that 7 respondents (87.5%) supported the statement that, Strategies the
government use can affect operation of the services. Also, 1 respondent (12.5%) was
neutral which means had no choice.
Table 7: The services provided by National Microfinance Bank (NMB) have

made customers to stay
Frequency Percent Valid Cumulative
Percent Percent
4.00 7 87.5 87.5 87.5
Valid 5.00 1 12.5 12.5 100.0

Total 8 100.0 100.0
Figure 6: The services provided by National Microfinance Bank (NMB) have

made customers to stay
28
Statement 5: the data in the table shows customer perceptions of services provided
by National Microfinance Bank (NMB) and how these services influence their
decision to remain with the bank. The findings suggest that 87.5% of respondents
accepted the statement that the services provided by National Microfinance Bank
(NMB) have made customers stay. On the other hand, 1 respondent which 12.5% of
the total responses did not accept the statement. This is to say 87.5% of the
respondents rated the impact of the bank's services as 4.00 (on whatever scale is
being used), indicating a high level of agreement or satisfaction. Overall, all
responses are valid, and the dataset reflects the complete picture of how the bank's
services impact customer retention.
Table 8: The increase of a new business is a result of customer care services
Frequenc Percent Valid Cumulative

y Percent Percent
Va 4.
8 100.0 100.0 100.0
lid 00
Figure 7: The increase of a new business is a result of customer care services

29
Statement 6: The data in the table above assessed the impact of customer care
services on the increase of a new business. The findings suggest that a frequency was
4.00 from the 8 responses, 100.0% was a valid percentage and cumulative Percentage
is 100.0%. The data show that, all 8 respondents (100.0%) indicated that the increase
in new business was attributed by good customer care services. This suggests a
strong belief or finding that customer care services are crucial for the growth of new
business in this context.
Table 9: Teachers, Executives and Staff contribute more of profit to the NMB

2.
7 87.5 87.5 87.5
00
Va
4.
1 12.5 12.5 100.0
lid 00
To
8 100.0 100.0
tal
Figure 8: Teachers, Executives and Staff contribute more of profit to the NMB

Statement 7: The data in the table above shows a perceived contribution of teachers,
executives, and staff to the profits of the National Microfinance Bank (NMB). The
data suggests that 7 (87.5%) respondents believe that teachers, executives, and staff
30
contribute most to the bank's profit. Also, 1 (12.5%) respondent did not agree with
the statement. The cumulative Percent is 100.0% which indicates that all responses
are accounted for, with a clear majority rating the contribution as 2.00. The majority
of respondents view the contribution of teachers, executives, and staff to NMB’s
profit as significant. Although, there is a smaller proportion who see their
contribution as slightly more impactful. This distribution of data in the table suggests
a general consensus that those groups significantly contribute to the bank's
profitability, though opinions on the extent of this contribution vary.
Table 10: The capital in NMB is enough to lend the customers and return more
profit to the organization

4.00 7 87.5 87.5 87.5
Valid 5.00 1 12.5 12.5 100.0
Total 8 100.0 100.0
Figure 9: The capital in NMB is enough to lend the customers and return more
31
Statement 8: These data evaluate the perceptions about the current capital available
at its sufficiency in lending customers and generating more profit for the
organization. The data suggest that, 7 respondents which 87.5% of the total
respondents believe that the current capital is sufficient (rating it as 4.00 on the
scale), indicating a high level of agreement that it meets the needs for lending and
generating profit. Nevertheless, 1 respondent which is 12.5% of the total responses
indicated insufficiency of capital in lending all the customers. The cumulative
percent is 100.0%. Overall, this data suggests that there is strong confidence in the
adequacy of the capital for both lending and achieving organizational profitability.
RESPONSE TO THE CUSTOMERS OF NATIONAL MICROFINANCE

BANK
Table 11: Quality of services measured by assurance, accessibility and

availability
Frequency Percent Valid Percent Cumulative

Percent
SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
Valid N 9 30.0 30.0 50.0
SA 9 30.0 30.0 80.0
A 6 20.0 20.0 100.0
Total 30 100.0 100.0
32
Figure 10: Quality of services measured by assurance, accessibility and
availability

Statement 1: The data in the table above assesses the quality of services based on
dimensions like assurance, accessibility, and availability, using a Likert scale. The
data suggest that 3 respondents which is 10.0% of the total respondents strongly
disagreed the statement, 3 respondents which is 10.0% disagreed, and 9 respondents
which is 30.0% of the total respondents were neutral. On the other hand, 50.0% of
respondents strongly agreed, and 6 respondents which is 20.0% agreed with the
statement. This is to say that, 20.0% of respondents disagree that the quality of
services is satisfactory in terms of assurance, accessibility, and availability.
However, 70.0% of respondents agreed that the quality of services meets the criteria
of assurance, accessibility, and availability. There was a small number of
respondents who were neutral, which could indicate uncertainty or lack of strong
opinion about the quality of services. The presence of neutral responses suggests
that, there might be areas for improvement or further investigation.
33
Table 12: NMB gives the quality of services as compared to other banks

SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
Va N 12 40.0 40.0 60.0
lid SA 6 20.0 20.0 80.0
A 6 20.0 20.0 100.0
Total 30 100.0 100.0
Figure 11: NMB gives the quality of services as compared to other banks

Statement 2: The data shows the distribution of responses to a survey question about
the quality of services provided by the National Microfinance Bank (NMB) as
compared to other banks. It was found that 3 respondents (10.0%) strongly disagreed,
3 respondents (10.0%) disagreed, and 12 respondents (40.0%) were neutral. Either, 6
respondents (20.0%) agreed, and 6 respondents (20.0%) strongly agreed. This shows
that, majority of respondents (40.0%) were neutral about the quality of services
provided by NMB compared to other banks. This indicates that a significant portion
of customers do not have a strong opinion or are indifferent to the statement that
34
NMB provides better quality of services compared to other banks. This indicates that
a minority of respondents have a negative view of NMB’s service quality the results
show a mixed perception of NMB's service quality, with a tendency toward
neutrality. While there are positive views, the significant neutral response rate
suggests that there might be room for improvement or that customers feel indifferent
based on their experiences.
Table 13: National microfinance bank (NMB) assured the customer the quality
of services and safety of their account
Frequency Percent Valid Cumulative

Percent Percent
SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
Va N 9 30.0 30.0 50.0
lid SA 6 20.0 20.0 70.0
A 9 30.0 30.0 100.0
Total 30 100.0 100.0
Figure 12: NMB assure the customers with quality of services and safety of
account
35
Statement 3: The data in the table above relate to the National Microfinance Bank
(NMB) and their assurance of service quality and account safety. The findings show
that 3 respondents (10%) strongly disagreed, 3 respondents (10%) disagreed, and 9
respondents (30%) were neutral. On the other hand, 9 respondents (30%) agreed, and
those who strongly agreed were 6 respondents which is equal to 20%. This is to say
that 15 respondents which is equal to 50% of the respondents are confident in the
quality and safety of services provided by NMB. However, 6 respondents (20%)
dissatisfied or have concerns regarding the services and safety. Those who remained
neutral could indicate a lack of information or experience with NMB’s services. This
distribution can help NMB understand customer perceptions and identify areas for
improvement.
Table 14: NMB coordinates and inform the customer about services changes

SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
N 12 40.0 40.0 60.0
Valid
SA 6 20.0 20.0 80.0
A 6 20.0 20.0 100.0
Total 30 100.0 100.0
Figure 13: NMB coordinates and inform the customer about services changes
36
Statement 4: The data above relates to how well the National Microfinance Bank
(NMB) coordinates and informs customers about changes in their services.
Concerning this statement, it was found that 3 respondents (10%) strongly disagreed,
3 respondents (10%) disagreed and 12 respondents (40%) were neutral. In contrast, 6
respondents (20%) agreed, and 6 respondents (20%) strongly agreed. This is to say
that, 12 respondents which is equivalent to 40% of the total respondents feel that
NMB is effective in coordinating and informing them about changes in their services,
while 6 respondents equal to 20% are dissatisfied with how NMB communicates
changes in their services. The other 40% were those who remained neutral which
indicate undecided or indifferent, which could imply either a lack of experience with
changes or mixed opinions on the effectiveness of communication. This could reflect
variability in personal experiences or perceptions of NMB’s communication
effectiveness. Addressing communication gaps could potentially improve customer
perceptions and satisfaction.
Table 15: NMB’s Channels to get customers are effective, accessible and timely

SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
N 9 30.0 30.0 50.0
Valid
SA 9 30.0 30.0 80.0
A 6 20.0 20.0 100.0
Total 30 100.0 100.0
37
Figure 14: NMB’s Channels to get customers are effective, accessible and timely

Statement 5: The data in the table above pertains the effectiveness, accessibility, and
timeliness of the channels used by the National Microfinance Bank (NMB) to
communicate with customers. Regarding this statement, the data suggests that 3
respondents (10%) strongly disagree, 3 respondents (10%) disagreed, 9 respondents
(30%) were neutral. Also, 6 respondents (20%) agreed, and 9 respondents (30%)
strongly agreed. This gives an understanding that 15 respondents which is equivalent
to 50% of the total respondents find the communication channels used by NMB to be
effective, accessible, and timely. Contrarily, 6 respondents equivalent to 20% were
dissatisfied with the effectiveness, accessibility, or timeliness of NMB’s
communication channels. This portion of respondents either feel indifferent or have a
neutral view on the communication channels used by NMB, might reflect varying
levels of interaction or experience with these channels.
38
Table 16: NMB’s Channels help the customer reduce the services costs and save
time

Percent
SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
N 9 30.0 30.0 50.0
Valid
SA 6 20.0 20.0 70.0
A 9 30.0 30.0 100.0
Total 30 100.0 100.0
Figure 15: NMB’s Channels help the customer reduce the services costs and
save time

Statement 6: The data as presented in the table above shows how the Channels used
by the National Microfinance Bank (NMB) help customers reduce service costs and
save time. The findings on the statement “NMB’s Channels help the customer reduce
the services costs and save time” reveal that, 3 respondents (10%) strongly disagreed,
3 respondents (10%) disagreed and those who remained neutral were 9 respondents
(30%). Inversely, 6 respondents (20%) strongly agreed and 9 respondents (30%)
agreed. The findings reveal that majority of respondents (50%) believe that channels
39
and services help in reducing costs and saving time. Overall, the data indicates a
generally positive perception among respondents about the effectiveness of Channel
services provided by NMB in terms of reducing costs and saving time, though there
is a significant portion with a neutral stance.
Table 17: The NMB Services Have Influenced Customers Retention

SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
N 12 40.0 40.0 60.0
Valid
SA 6 20.0 20.0 80.0
A 6 20.0 20.0 100.0
Total 30 100.0 100.0
Figure 16: The NMB Services Have Influenced Customers Retention

Statement 7: the data as presented in the table above are related to the survey on the
way services provided by the National Microfinance Bank (NMB) influence
customer retention. The findings on the statement “the NMB Services Have
Influenced Customers Retention” show that 3 respondents (10%) strongly disagreed,
3 respondents (10%) disagree. The findings further suggest that, 12 respondents
40
(40%) remained neutral, 6 respondents (20%) strongly agreed, and 6 respondents
(20%) agreed. Those who agreed accounted for 40% of the responses. This indicates
that majority of respondents believe that the services provided by NMB have
positively influenced their decision to stay with the bank. Neutral (N) responses
make up 40% of respondents, suggesting that a significant portion of respondents are
indifferent or unsure about the impact of NMB's services on their decision to stay.
Also, those who disagreed accounted for 20%, indicating that minority of
respondents do not believe the positive effect of services on their retention. This
suggests a notable portion of customers find the services effective in fostering
retention. In summary, while there is a substantial portion of customers who find the
services beneficial for their decision to stay with NMB, a significant number remain
neutral, and a small percentage are dissatisfied. This could imply areas for potential
improvement or further communication regarding the benefits of the services.
Table 18: Effectiveness of NMB’s promotional strategies in attracting customers

to open accounts

Percent
S
3 10.0 10.0 10.0
D
D 3 10.0 10.0 20.0
Va N 9 30.0 30.0 50.0
S
lid 9 30.0 30.0 80.0
A
A 6 20.0 20.0 100.0
To
30 100.0 100.0
tal
41
Figure 17: Effectiveness of NMB’s promotional strategies in attracting
customers to open accounts

Statement 8: The above findings relate to the statement “effectiveness of various
promotional strategies used by the National Microfinance Bank (NMB) in attracting
customers to open accounts”. It was found out that 3 respondents (10%) strongly
disagree, and 3 respondents (10%) disagreed while 9 respondents (30%) remained
neutral. In contrary, 9 respondents (30%) strongly agreed, and 6 respondents (20%)
agreed. This suggests that 50% of respondents believe that the promotional strategies
(including sports, media, brochures, newsletters, and banners) used by NMB are
effective in attracting customers to open accounts. Those who were neutral
accounted for 30%, indicating that a significant portion of respondents are indifferent
or uncertain about the effectiveness of these promotional strategies. The respondents
who disagreed accounted for 20%, indicating that they do not find these promotional
strategies effective. The data shows that while there is a substantial portion of
respondents who believe that the promotional strategies used by NMB are effective,
a significant number of people remain neutral, and a small percentage find the
strategies ineffective. This suggests that NMB's promotional efforts have a mixed
42
reception among customers, and there may be opportunities to enhance these
strategies or improve communication about their benefits.
Table 19: Influences of Customers’ Feedback on Purchase Frequency

SD 6 20.0 20.0 20.0
N 9 30.0 30.0 50.0
Valid SA 6 20.0 20.0 70.0
A 9 30.0 30.0 100.0
Total 30 100.0 100.0
Figure 18: Influences of Customers’ Feedback on Purchase Frequency
43
Statement 9: the table above presents the survey data on how customer feedback
influences purchase frequency. To interpret this table, 6 respondents (20%) strongly
disagreed that customer feedback influences their purchase frequency while 9
respondents (30%) were neutral. On the other hand, 6 respondents (20%) strongly
agreed, and 9 respondents (30%) agreed that customer feedback influences their
purchase frequency. This is to say 20% of respondents believe that customer
feedback does not affect their purchase frequency, and 30% were neutral or unsure
about the impact of customer feedback on their purchase frequency. Additionally,
majority of respondents believe that customer feedback influences their purchase
frequency. This indicates a moderate belief in the importance of customer feedback
for influencing purchasing behavior among the respondents.
Table 20: NMB Resolve Customers’ Complaints on Time

The complaints you make to the customers have been resolved on time
SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
N 12 40.0 40.0 60.0
Valid
SA 6 20.0 20.0 80.0
A 6 20.0 20.0 100.0
Total 30 100.0 100.0
44
Figure 19: NMB Resolve Customers’ Complaints on Time

Statement 10: The data in the table above shows the responses to a survey question
about whether complaints to customers have been resolved on time. It was found out
that, 3 respondents (10.0%) strongly disagreed with the statement, 3 respondents
(10.0%) disagreed, and 12 respondents (40.0%) remained neutral. Furthermore, 6
respondents (20.0%) agreed and 6 respondents (20.0%) strongly agreed with the
statement. Neutral scale has the highest percentage (40.0%), indicating that a
significant portion of respondents feel indifferent or are unsure about the timeliness
of complaint resolution. Also, those who agree were 40.0% suggesting that, a good
portion of respondents believe that complaints are resolved on time. It is also
concluded that those who disagreed accounted for 20.0%, indicating that some
respondents feel that complaints are not resolved on time. Overall, the data suggests
a mixed perception about the timeliness of complaint resolution, with a tendency
towards neutrality or agreement rather than strong disagreement.
45
Table 21: NMB Satisfies the Customers through Services Offered

Percent
SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
Valid N 9 30.0 30.0 50.0
SA 9 30.0 30.0 80.0
A 6 20.0 20.0 100.0
Total 30 100.0 100.0
Figure 20: NMB Satisfies the Customers through Services Offered

Statement 11: This table provides a breakdown of customer satisfaction levels for
National Microfinance Bank (NMB) regarding the services offered. The data
suggests that those who strongly disagreed the statement were 10.0% of customers,
those who disagreed were 10.0% of customers and those who remained neutral were
46
30.0% of customers. Also, 30.0% of customers felt strongly satisfied and 20.0% of
customers felt generally satisfied. The highest percentage is in the neutral and agree
categories, indicating a mix of satisfaction levels. This data can help NMB to identify
areas where they might improve service to increase overall customer satisfactions
Table 22: Customer Engagement with the National Microfinance Bank (NMB)
Through Grants and Donations

SD 3 10.0 10.0 10.0
D 3 10.0 10.0 20.0
N 7 23.3 23.3 43.3
Valid
SA 8 26.7 26.7 70.0
A 9 30.0 30.0 100.0
Total 30 100.0 100.0
Figure 21: Customer Engagement with the National Microfinance Bank (NMB)
Through Grants and Donations
47
Statement 12: The table above presents the survey data on customer engagement
with the National Microfinance Bank (NMB) through grants and donations. From the
data, we see a strong preference for this service where, 30% of respondents strongly
agreed that grants and donations are their favorite services, and 26.7% agree with this
statement. Either, 23.3% remained neutral, and 20% disagree. This suggests that a
significant portion of customers values these philanthropic efforts by the bank.
Table 23: The prioritization of customers by attendants when addressing

challenges

SD 3 10.0 10.0 10.0
D 2 6.7 6.7 16.7
N 10 33.3 33.3 50.0
Valid
SA 9 30.0 30.0 80.0
A 6 20.0 20.0 100.0
Total 30 100.0 100.0
Figure 22: The prioritization of customers by attendants when addressing

challenges
48
Statement 13: The data above are related to the survey regarding the prioritization of
customers by attendants when addressing risks or challenges. The data suggests that
3 respondents (10.0%) strongly disagreed with the statement and 2 respondents
(6.7%) disagreed. The respondents who remained neutral were 10 respondents
(33.3%). On the other hand, those who agreed were 6 respondents (20.0%) and those
who strongly agreed with the statement were 9 respondents (30.0%). Overall, the
data suggests that while there is a positive perception about the prioritization of
customers, there is also a notable percentage of respondents who are neutral or
dissatisfied. This might indicate room for improvement or further investigation into
customer perceptions.
Table 24: The Cost of Services from NMB is Low as Compared to Others Banks

SD 2 6.7 6.7 6.7
D 3 10.0 10.0 16.7
N 7 23.3 23.3 40.0
Valid
SA 9 30.0 30.0 70.0
A 9 30.0 30.0 100.0
Total 30 100.0 100.0
49
Figure 23: The Cost of Services from NMB is Low as Compared to Others
Banks

Statement 14: The table above summarizes responses regarding the cost of services
provided by National Microfinance Bank (NMB) whether is lower compared to other
banks. The data shows that 2 respondents (6.7%) strongly disagreed that the cost of
services from NMB is low as compared to others banks, and 3 respondents (10.0%)
disagreed with the statement. Also, 7 respondents (23.3%) were neutral, 9
respondents (30.0%) strongly agreed with the statement and 9 respondents (30.0%)
agreed with the statement that the cost of services from NMB is low as compared to
others banks.
The findings suggest that majority of respondents (60.0%) agreed that the cost of
services to NMB is lower compared to other banks, while the minority of
respondents (16.0%) disagreed. There was a significant percentage (23.3%) of
respondents who remained neutral which suggests that either they do not have
enough information or are undecided. Overall, the data indicates a general consensus
that the cost of services provided to NMB is perceived to be lower compared to other
50
banks. However, the presence of neutral responses suggests some uncertainty or lack
of strong opinion among a portion of respondents.
Table 25: NMB Promised an Increased Interest to the Customers Who Deposit
More in a Fixed Account

SD 3 10.0 10.0 10.0
D 2 6.7 6.7 16.7
Valid N 14 46.7 46.7 63.3
SA 4 13.3 13.3 76.7
A 7 23.3 23.3 100.0
Total 30 100.0 100.0
Figure 24: NMB Promised an Increased Interest to the Customers Who Deposit
More in a Fixed Account
51
Statement 15: The data in the table above are related to customer perceptions of
interest rates for fixed accounts at the National Microfinance Bank (NMB). The
summary suggests that 46.7% of respondents were neutral, indicating that they
neither agree nor disagree with the statement about receiving more interest for
depositing a larger amount. Also, 36.6% of respondents believe that depositing more
into a fixed account leads to receiving more interest. On the other hand, a small
portion of respondents disagreed with the statement. This suggests a general positive
perception of the interest rate policy, but also indicates that nearly half of the
respondents are unsure or indifferent about it.
52
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter presents summary, conclusion and recommendations of the study

findings which were discussed in the previous chapters.
5.2 Summary of the Study
The research aimed at assessing the contribution of customer care on a business

performance at NMB Geita. The major research findings based on a specific
objective of the study.
Particularly, the research highlighted how the customer care contribute to their
business performance. A showcased customer care is substantial to the business and
it contribute to the increase of business operation due to the presence of several
activities in their region or city. It is contributed to their presence as customer in the
bank. The study also examined the strategies used to attract, retain and engage
customers which help the business people to determine the results of their businesses.
Generally, this particularly shows the importance of customer care in business
performance but there are many factors that encourage customers to buy the services.
For example, to waiters in the hotels should use good language to attract more
customers but there are the other factors like price, competition between one seller to
another, the quality and time. The business people will try to balance between cost
efficient and quality of services in order to compete in their market place.
Therefore, it is recommended that organization’s service providers and business
people should try to make research on the approaches, innovative, use of polite
language to their customers, offering the quality of the services as compared to the
prices without sacrificing the customers. This will make customers to retain in their
firms as well as gaining more profit.
53
5.3 Conclusion
5.3.1 Customer care services increase business operation
The study aimed to examine whether the presence of good customer care services
increase business operation like sales. When the bank they have more customers
there are also more revenue. In this case there is a need to find other alternatives for
operation of their services like introduction of new business services like mobile
money, ATMs, vending vehicles, as well as the use of bank card in purchasing goods
and services. Through this study the researcher has revealed the truth that good
customer care services increase business operations.
5.3.2 Strategies that the institution use to attract, engage and retain customers
The study measured how customer care services help to increase the customers by
using various strategies like promotions, offering gifts during special bank day,
providing soft loans with friendly interest rate, giving donations to public institutions
like schools, hospitals, and financial supports to sports. The research confirmed that
the mentioned strategies are applied and through them the NMB has won a lot of
customers.
5.3.3 Outcomes of customer care services to the business operation
This research has shown the way service providers can benefit from the customer
care as it helps to make the changes in their business. When starting a new project or
activities there is a need to set clear goals and at end of the day try to measure the
outcomes. The planning help to know the problem or other fact which that led to
success or failure to the project or activities. Under this research the respondent
strongly agreed that customer care services help to determine the outcomes of
business operations.
54
5.4 Recommendation of the Study
5.4.1 Government
The study recommends to the government of the Tanzania to train its employees on
the value of good customer care because everyone need to be respected without
discrimination of color tribe or religion. Customer care is very crucial to any
organization because it shapes the organization and increase efficiency.
5.4.2 Firm
All in all, customer care is very important to any business as it helps in market the
firm without any cost. The services offered to the customer, how they are treated, the
way they communicate to customers and how they serve the customers demonstrates
the of the organization. It is important for the firm to offer a chance to the customers
to share their opinions on decision making.
5.4.3 Community
The community has a power to support any activities. If a firm will demonstrate an
acceptable behavior like treating customers fairly the community will contribute a lot
to the development of that firm. It is therefore recommended that; the firm should
learn from the community especially on how to communicate and their specific
needs.
5.4.4 Researchers and Academicians
This study acts as a literature for other researchers and academicians to make
reference especially in doing their researches. It provides a deeper understanding of
the customer care and values of good relationship between customers and service
providers in the development of organizations. Also, it is recommended to the
researchers and academician to find more gap left by this study so ass to add more in
the body of knowledge.
55
5.5 Further Research
Due to the advancement of science and technology today there are many notable
changes in the world. Things are controlled through the application of technology.
There is no aspect of life where has no application of technology. Following this a
researcher recommend another study to be conducted to cover the area where
technology can be applied for the efficient customer care service.
56
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Commercial bank in Eldorest Uasin Gishu Country Kenya.
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58
APPENDICES
Appendix I: Questionnaire
I am MAKRINA CHANGAMIKE a student of the University of Iringa pursuing

Bachelor Degree of Business Administration. I am pleading for your support and
contribution by filling this questionnaire concerning the contribution of customer
care on a business performance. The information will be confidential and will be
used for academic purposes only.
QUESTIONNAIRE TO THE STAFF OF NATIONAL MICROFINANCE
BANK (NMB), GEITA TOWN
BACKGROUND INFORMATION
Tick the appropriate option on the bracket.
Public servant Examples Teacher, Health worker and administrator
Customer care services and Department of management
Petty traders
Farmers and others
The following statements show to the level of agreement about the Contribution of
customer care on a business performance. Rate your agreement with each of the
statement by using Likerts scale provide in the table below.
Answer these questions according to how services are provided
Questions to the Employees of National Microfinance Bank (NMB)
Round the number you choose .RANK: (1) SD = Strong disagree, (2) D = Disagree
(3) N=Neutral, (4) SA = Strong Agree (5) A = Agree.
CODE VARIABLES LEVEL OF AGREEMENT
Quality of services S D N S A
D A
QOS1 The profit received 1 2 3 4 5
correspondent to the
number of customers they
have
QOS2 Appreciating customers is 1 2 3 4 5
a result of services
innovation
Channel effectiveness S D N S A
D A
59
CHEFF The following strategic, 1 2 3 4 5
1 Promotion, sports, media
like television
newsletters,Brochures,Ban
ers help the National
Microfinance bank (NMB)
to get more customers
CHEFF Strategic of the 1 2 3 4 5
2 government can effect to
the operation of their
services
Customers retention rate S D N S A
D D
CRR1 The services you provided 1 2 3 4 5
bank to customers have
made them to stay
National Microfinance
Bank (NMB)
CRR2 The increase of a new 1 2 3 4 5
business is a result of
customer care services
Financial Metric S D N S A
D D
FIME1 Teachers Executive’s and 1 2 3 4 5
Staff contribute the most
of profit to the National
Microfinance Bank (NMB)
FIME 2 The capital you have its 1 2 3 4 5
enough to lend the
customers and return more
60
Questionnaires to the Customers of National Microfinance Bank (NMB)
CODE VARIABLES LEVEL OF
AGREEMENT
Quality of services SD D N SA A
QOS1 Quality of services measured by 1 2 3 4 5
Assurance Accessibility and
Availability
QOS2 National microfinance bank (NMB) 1 2 3 4 5
giving the customers quality of
services compared to other banks
QOS3 National Microfinance Bank(NMB) 1 2 3 4 5
assured the customers the quality
of services and safety of the
Account
QOS4 National Microfinance Bank 1 2 3 4 5
(NMB) coordinating and informing
to the customers about the changes
of their services
Channel effectiveness SD D N SA A
CHEF Channel uses by National 1 2 3 4 5
F1 Microfinance Bank (NMB) to get
the customers is effectiveness
Accessible and it respondent in
time
CHEF Channel used by National 1 2 3 4 5
F2 Microfinance Bank (NMB) help
the customers to reduce the cost of
services and saved time
CHEF The services provided by National 1 2 3 4 5
F3 Microfinance Bank(NMB) to the
customers have made them to stay
at this Bank
CHEF The following strategies Promotion, 1 2 3 4
F4 sports, media, like television
,Radio, Brochures, Newsletters ,and
banners used by National
Microfinance Bank (NMB) to
attract the customers to open the
Account to the bank
Customer Retention Rate SD D N SA A
CRR1 Customers feedback is a reasons for 1 2 3 4 5
customers to purchases frequency
CRR2 The complaints you make to the 1 2 3 4 5
customers have been resolved on
61
time
CRR3 National Microfinance Bank 1 2 3 4 5
(NMB) satisfied the customers
through services offered
CRR4 Grand’s and donations offered by 1 2 3 4 5
bank to the public institution like
hospital schools is your most
favorite services to engage and
retain customers to the National
Microfinance Bank (NMB)
Financial Metric SD D N SA A
FIME1 The attendants have given priority 1 2 3 4 5
to the customers to help them if
there is any risk or challenge that
has arisen when you go to get
services.
FIME2 The costs provided services to 1 2 3 4 5
National Microfinance Bank
(NMB) is lowly compared to the
other banks
FIME3 National Microfinance Bank 1 2 3 4 5
(NMB) they promised the
customers when you’re putting
more amount to fixed Account
they received more interest
Thank you for taking your time in filling this questionnaire
62
Appendix II: Proposed Budget
S/N ACTIVITIES AMOUNT(TZS)

1 Transportation 150,000
2 Stationary 250,000
3 Communication and Internet 300,000
4 Food and Drink 150, 000
Subtotal cost 850000
5 Contingency 10% of subtotal cost 85000
Grand Total 935000
63
Appendix: III: Proposed Research Work Plan
Activity Nov-Dec, Jan- April May June July August

2023 Mar, 2024 2024 2024 2024 2024
2024
Building
concept note
Research
Proposal
development
Research
proposal
submission
Data collect
Data analysis
Report writing
Submission of
the research
64
Appendix IV: Introduction Letter
65
66

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CONTRIBUTION OF CUSTOMER CARE ON BUSINESS

PERFORMANCE: A CASE OF NMB GEITA TOWN

A Research Report Submitted in Partial Fulfillment of the Requirements

Special appreciations are extended to my supervisor Mr. MOSES SHILLA whose

On the other hands, I dedicate my heartfelt thanks to my dear brother YEFRED

Finally, I am indebted to all my friends whose encouragement became a walking rod

LIST OF ABBREVIATIONS ................................................................................. vii

LIST OF FIGURES ................................................................................................. xii

LIST OF TABLE..................................................................................................... xiv

1.1 Background of the Study .................................................................................... 1

1.2 Background of the Study .................................................................................... 1

1.3 Statement of the Problem ................................................................................... 2

1.4 Objectives of the Research ................................................................................. 3

1.4.1 General Objective ........................................................................................ 3

1.4.2 Specific Objectives ...................................................................................... 3

1.5 Research Questions ............................................................................................ 3

1.6 Scope of the Study .............................................................................................. 4

1.7 Significance/Benefit of the Research ................................................................. 4

1.7.1 To the Organization (NMB) ........................................................................ 4

1.7.3 To the Public ................................................................................................ 5

1.7.4 To the Academician and Further Research .................................................. 5

1.8 Limitation of the Study....................................................................................... 6

1.9 Definitions of Key Terms ................................................................................... 6

CHAPTER TWO ....................................................................................................... 7

LITERATURE REVIEW .......................................................................................... 7

2.1 Theoretical Literature Review ............................................................................ 7

2.1.1 Dissonance Theory ...................................................................................... 7

2.2 Empirical Literature Review ........................................................................... 8

2.3 Knowledge Gap ................................................................................................ 12

2.4 Conceptual Framework .................................................................................... 12

2.5 Operationalization of Variables ........................................................................ 13

CHAPTER THREE ................................................................................................. 14

RESEARCH METHODOLOGY ........................................................................... 14

3.1 Area of the Study .............................................................................................. 14

3.2 Research Approach........................................................................................... 15

3.3 Research Design ............................................................................................... 15

3.4 Population and Sampling Procedure ................................................................ 15

3.4.1 Population .................................................................................................. 15

3.4.2 Sampling Strategies ................................................................................... 16

3.5 Sampling Frame................................................................................................ 17

3.6 Sources Types of Data ...................................................................................... 17

3.6.1 Primary Data .............................................................................................. 17

3.6.2 Secondary data ........................................................................................... 18

3.7 Data Collection Methods .................................................................................. 18

3.8 Data analysis ..................................................................................................... 18

3.9 Validity and Reliability .................................................................................... 19

3.9.1 Validity ...................................................................................................... 19

3.10 Ethical Issues .................................................................................................. 20

CHAPTER FOUR .................................................................................................... 21

DATA ANALYSIS, PRESENTATION AND DISCUSSION .............................. 21

4.1 Introduction ...................................................................................................... 21

4.2 Response Rate .................................................................................................. 21

4.3 Results on Groups of Respondents ................................................................... 21

CHAPTER FIVE ...................................................................................................... 53

SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................ 53

5.1 Introduction ...................................................................................................... 53

5.2 Summary of the Study ...................................................................................... 53

5.3 Conclusion ........................................................................................................ 54

5.3.3 Outcomes of customer care services to the business operation ................. 54