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SERVICE PERFORMANCE AND CUSTOMER SATISFACTION AS ANTECEDENTS OF CORPORATE REPUTATION: A COMPARATIVE ANALYSIS BETWEEN LOCAL AND FOREIGN BANKS IN TANZANIA
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Abstract
The competitiveness of commercial banks is of vital importance for a developing country that is striving to enhance the standard of living of its citizens by ensuring an expansion of banking services. This study compared service performance and customer satisfaction as antecedents of corporate reputation between foreign and local banks in Tanzania. The study had a sample size of 380 respondents who were the customers of these banks. The structural equation modelling was carried out so as to examine the interrelationships of the constructs and how the findings can be inferred on the entire population. Chi-square statistical values, Incremental Fit Index, the Tucker-Lewis Fit Index, the Comparative Fit Index, the Parsimony Normed Fit Index and the Root Mean Square Error Approximation were applied to examine the models’ fit. While the mean values were applied to compare customers’ perceptions of service performance, customer satisfaction and corporate reputation between local and foreign banks.
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