Customer satisfaction with the services of microfinance institutions: Scale development and validation

Abstract

Customer satisfaction is a multidimensional construct with five factors: price, reliability, accessibility and flexibility, appearance, social and enhancement of customers. The presence of social inclusion and customer enhancement, accessibility, and flexibility dimensions reveals that a scale measurement should be specific both to a context and to a sector. The value attached to the appearance factor confirms that microfinance seriously tends to “mission drift" which means targeting less poor customers. The simultaneous occurrence of appearance and social dimensions in the same scale is proof that the social and financial goals should coexist in all stages of the development of microfinance institutions. As long as the social funds do not substitute market funds used in financing poor microborrowers, the share of poor clients served increases. So does financial inclusion of the poor.

Conceptualizing and measuring strategy implementation: A multidimensional view

“…We undertook three main methods of assessment (unidimensionality, reliability, and validity) supported in the literature for item purification and validating measures (Nunnally, 1978;Churchill Jr, 1979;Gerbing & Anderson, 1988;Steenkamp & Van Trijp, 1991;Kanyurhi, 2017). We initially undertook item purification by exploratory factor analysis (EFA), although we discern the a priori structure of the measures.…”

“…8 | ESTABLISHING NOMOLOGICAL VALIDITY Cronbach and Meehl (1955) suggest that establishing nomological validity could provide more evidence for construct validity (Kanyurhi, 2017;Podsakoff & MacKenzie, 1994;Tanriverdi & Venkatraman, 2005;Wang & Netemeyer, 2004). To do this, Cronbach and Meehl (1955) suggest that one has to develop a nomological network for the measure.…”

Microfinance and financial inclusion: Challenges and opportunities

“…Commercial debt is often provided by socially responsible investors who undertake negative screening and focus on financial returns, while subsidized debt is provided by social investors who care about social performance (Mersland & Urgeghe, 2013). An increase in the use of market debt for financing MFIs leads to lower social performance and lower financial inclusion (Kanyurhi, 2017). Subsidized MFIs often charge lower interest rates (Tchuigoua, Durrieu, & Kouao, 2017).…”

Appraisal of the potential of the growth of e‐retailer based on impact of perceived value on trust for online purchases

“…Customer satisfaction is defined as the customers' evaluation of any product in terms of whether that has met their needs and expectations (Jaiswal, ). There are various factors that have contributed to the customers' satisfaction such as price, reliability, accessibility and flexibility, appearance, social and enhancement of customers (Kanuyrhi, ). On the relationship between the two constructs, Woodruff () argued that perceived value indicates customer cognition of the nature of relational exchanges with their suppliers while satisfaction reflects customers' overall feeling derived from the perceived value.…”