THE DETERMINANTS OF CUSTOMER PREFERENCES TOWARDS MICROFINANCE SERVICES: A CONSUMER PERSPECTIVE FROM PAKISTAN

Umair Ahmed (), Muhammad Wasim (), AbdurRehmanAleemi () and Fauzan Saeed ()
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Umair Ahmed: Institute of Business & Technology, Karachi,
Muhammad Wasim: Usman Institute of Technology, Karachi
AbdurRehmanAleemi: Institute of Business Management, Karachi
Fauzan Saeed: Usman Institute of Technology, Karachi

IBT Journal of Business Studies (JBS), 2017, vol. 13, issue 1, 148-159

Abstract: PurposeThis study helps to understand the successful path of microfinancing, which can plays a vital role in poverty alleviation in Pakistan.Methodolgy/SamplingTo collect data authors of this paper visited different microfinance institutions MFIs like Tameer Micro Financing Bank and Khushali Bank Limited in Karachi.A structured questionnaire was designed for data collection of consumers of microfinance.Statistical data of 100 samples showed 46% of respondents acquired loan for agricultural purposes while 54% loans were business based.FindingsIt is observed that male respondents are higher than female.Regression model showed 38% variation in consumer preference regarding the microfinance services.Statistic in the ANOVA shows the significanceof model.The coefficient of MFI’s Approach with negative sign indicates an inverse relationship with that of consumer preferences.It means that MFI agents do not give proper value to the targeted consumers.Finally the amount of loan and interest charged by the MFI’s is also having a negative impact on the consumers of micro finance.Practical ImplicationsThis study deliver statistical evidence of utilization of funds as well as the consistency of gathered data.Work showed that responded are need to be aquired more knowlwdge about the microfinance services in Pakistan.

Keywords: MFIs; Microfinance; Customer Preferences; Pakistan (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:13:y:2017:i:1:p:148-159

DOI: 10.46745/ilma.ibtjbs.2017.131.12

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