Factors Influencing Customer Retention in Community Banks in Tanzania: A Case of MUCOBA Bank PLC
The purpose of this study was to examine factors influencing customer retention in Community Banks in Tanzania, a case of MUCOBA Bank PLC in Mafinga Town in Iringa region. Specifically, the study sought to examine the influence of tangibility and assurances on customer retention. The study used a mixed method (qualitative and quantitative) approach, adopting a cross-sectional research design. The population involved was customers and senior staff of MUCOBA Bank PLC. The convenience sampling technique was used in selecting customers, while purposive sampling was used to select senior staff and a few customers who were heads of group loan beneficiaries. The sample size of 382 comprised 377 customers and five senior staff. The response rate was 88.2%, whereby 337 responses were obtained through questionnaires and in-depth interviews. Quantitative data were analysed by using multiple regression analysis, while qualitative data were analysed using content analysis technique. The findings revealed that tangibility had a significant influence on customer retention with (β = .110, p = .036). Also, assurance was found having a significant relationship with customer retention on customer retention at MUCOBA Bank PLC with (β = .176, p = .002). The study recommends that tangibility and assurance should be used to the maximum to influence customer retention
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