The Effects of Service Quality on Customer Satisfaction in Banking Sector: The Case of NMB BANK PLC at Korogwe District in Tanga Region.

Lema, Sarah A (2025) The Effects of Service Quality on Customer Satisfaction in Banking Sector: The Case of NMB BANK PLC at Korogwe District in Tanga Region. Masters thesis, The Open University of Tanzania.

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Abstract

This study set out to investigate the effects of service quality on customer satisfaction in the banking industry. The five SERVQUAL dimensions reliability, assurance, responsiveness, empathy, and tangibles formed the basis of the investigation. The sample in this study is NMB customers who use banking services. Sampling technique used was simple random sampling. Questionnaires were used to gather data from respondents. Data was analysed using descriptive and inferential statistics whereby multiple regressions was used in analysis. The findings showed that all five dimensions of service quality have significant and positive effects on customer satisfaction in banking industry. It was recommended that banks should enhance the physical environment of their branches and ensure modern, clean, and well-maintained facilities. They should also improve how quickly and effectively bank staff responds to customer inquiries and concerns. To ensure assurance, banks should focus on developing employees’ knowledge, skills, and courtesy to instill customer confidence in the bank's services. In order to foster empathy, banks should encourage a culture where staff understand and address customer needs with personalized attention and care. Keywords: Service Quality, customer satisfaction, Tangibility, Reliability, Tanzania

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