Customer satisfaction and financial performance in selected banking institutions in Kigali, Rwanda

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Kampala International University, College of Economics and Management.
This research study is on customer satisfaction and financial performance in banking institutions of Kigali. The general objective was to determine the relationship between customer satisfaction (independent variable) and financial performance (dependent variable). The survey research design was used, specifically, the descriptive and correlational techniques. A sample of 120 respondents was derived from a population of 140. Data are presented and analyzed using statistical techniques, specifically, the frequency, percentage, mean, the PEARSON correlation, and the regression analysis. The findings of the study revealed that there was a significant relationship between customer satisfaction and financial performance; with the value of significance of (sign. =0.013) both in Fina Bank and Urwego Opportunity Bank; and the relationship of (r=O.593) in Fna Bank, and (r=0.6) in Urwego Opportunity Bank. This is in the line with the findings of Coldwell (2001) whose findings revealed that: 1) A Totally Satisfied Customer contributes 2.6 times as much revenue to a company as a Somewhat Satisfied Customer. 2) A Totally Satisfied Customer contributes 17 times as much revenue as a Somewhat Dissatisfied Customer. 3) A Totally Dissatisfied Customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business”. Thus, the researcher concluded that the null hypothesis was rejected. Thus, it was recommended that business organizations should always strive to ensure that their customers are very satisfied.
A thesis presented to the School of Postgraduate Studies and Research Kampala International University Kampala, Uganda in partial fulfillment of the requirements for the Degree Master of Business Administration
Customer satisfaction, Financial performance, Banking institutions, Kigali, Rwanda