Factors Affecting Customer Loyalty in the Financial Sector: A Case of Pride Microfinance MDI.

Abstract

NAKIBONEKA BONNY (2011-M102-20066) Factors Affecting Customer Loyalty in the Financial Sector: A Case of Pride Microfinance MDI This study investigated the factors affecting customer loyalty and the performance of the banking sector. Specifically, the study investigated the quality of bank products, prices of the services of the banks, the quality of services and bank corporate brand in relation to customer loyalty in the banking sector. A cross sectional study combining quantitative and qualitative methods was done on a sample of 111 respondents. The study found that there is a relationship between the quality of bank products and customer loyalty in the banking sector. The prices of the services of a bank affect customer loyalty in the banking sector. The quality of services offered by a bank influence customer loyalty and there is a relationship between the bank corporate brand and customer loyalty in the banking sector. It was, therefore, concluded that when Banks have quality products, it leads to winning customer loyalty. The prices of the services of a bank have an effect on attracting the loyalty of customers. The quality of services makes customers loyal to a bank. The bank corporate brand helps to win customer loyalty. It is, therefore, recommended that banks should provide quality products to win customer loyalty. Banks should offer quality services that can win the loyalty of the customers. Banks should establish corporate brands. Key words: Loyalty, Customer, Microfinance