Dimension of Service Quality of ASA Philippines Foundation, inc. Microfinance institution: An Assessment

Abstract

INTRODUCTION

Microfinance institution or MFI is widely acknowledged today as a tool for assisting people in alleviating their poor condition. Microfinance is the practice of providing credit, insurance, savings, and other financial services to very poor clients who are unable to avail of such services from traditional banks and insurance companies. Microfinance gives them the tools to start small businesses and generate income, in order to move up the economic ladder and become self-sufficient. Service quality is determined by what the customers perceive. With this, the researcher iopted to conduct this study to assess the service quality of ASA Philippines Foundation, inc.

METHODS

To meet the purpose, the descriptive method was utilized in the study. The researcher conducted library research for research literature as well as browsing the internet. A standardized SERVQUAL questionnaire was distributed to ASA clients of 5,890 who availed the MFI services-loans in particular. All the collected data were tallied, interpreted, and analyzed through percentage and weighted mean.

RESULTS

Most of the respondents are female, ages 35 -44 years of age, belonging to family with 6-8 members, married, able to finish their secondary level of education, and a micro-entrepreneur. All assessments considered on service quality of MFIs using its dimensions are indicative of differences or negative gap scores implying that the expectations are not met by these MFIs in delivering quality service to their clients. As to customer satisfaction, understanding the responsibility and liability of a member is essential. Reliability, responsiveness and empathy are significant to customer satisfaction. Customer satisfaction has a positive effect on an organization's profitability. The more customers are satisfied with products or services offered, the more successful the business is. Customer satisfaction leads to repeat purchase, brand loyalty, and positive word-of=mouth marketing.

DISCUSSIONS

The ASA Philippine Foundation, inc., shall look into the process of how clients make their expectation and perception as this can be a subject to strategies. There is a great need to strengthen and observe the selected policy, especially on transactions concerning the purchase of products and services to avoid more problems.