Abstract:

This study examines the moderating effect of personal characteristics on service quality and customer satisfaction in commercial banks in Rwanda. The objectives of this study are: to determine the level at which service quality dimensions affect customer satisfaction in commercial banks in Rwanda; to find out the extent to which personal characteristics affect the relationship between service quality and customer satisfaction in commercial banks in Rwanda. Descriptive survey and exploratory design were used. Cluster sampling was used during data collection. All respondents were selected using convenience sampling technique. The SERVQUAL questionnaire has been adapted to the Rwandan context to collect data from 384 respondents. Statements on the dimensions of service quality and customer satisfaction were measured using a 7- point Likert scale. To achieve objectives of this study and answer research questions, descriptive and inferential statistics were used. The findings showed that all the service quality dimensions were good predictors of customer satisfaction. Using the ordered logistic model, it has been shown first that ‘Quality Service’ as a predictor variable, has an effect on ‘Customer Satisfaction’. It has also been established that most of the coefficient estimates were individually statistically significant with p< 0.05. Investigating the perceptions of Rwandan banking customers regarding service quality and satisfaction has indicated positive perceptions, but continuing to ensure these positive perceptions is important for the continued satisfaction of existing customers while also providing satisfaction to new customers. From the analysis carried out, it was found out that the overall service quality perceived by the customers was not satisfactory, as expectations were higher than perceptions. The findings showed that ‘Marital Status’ had the most weight than all other variables under Personal Aspect.