Title:
EFFECT OF BANK CHARGES ON CUSTOMER SWITCHING BEHAVIOUR IN SELECTED COMMERCIAL BANKS IN TANZANIA

Authors:
Seule Nzowa ,Nasra Kara and Bahati Mbilinyi ,Tanzania

Abstract:
The aim of the study that led to the production of this paper was to assess the effect of bank service charges on the tendency of customers to switch from bank to bank in search of more friendly and more affordable services. The research was conducted in Dar es Salaam where 400 questionnaires were distributed to bank customers at the Tanzania Postal Bank (TPB), the National Bank of Commerce (NBC) and the National Microfinance Bank (NMB). Data was analyzed by using multiple regression analysis. The findings of the study indicated that interest rate on loans, the cost of bank transactions and unfair charges were the statistically significant factors that influenced the customer of the banks to switch to other banks. Therefore, the concerned bank managers should review their levels of interest and transactions cost if the banks are to retain existing customers and attract new ones