Financial and Behavioral Determinants of Customer Satisfaction in Nepalese Savings and Credit Cooperatives

Abstract

A cooperative is a non-profit motive community organization and businesses owned and managed by the people who use their services, get involved in their lives there, or some benefit from them. Cooperatives in Nepal offer a wide range of savings and credit, insurance, and non-financial services. Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others. Customer satisfaction has become important due to the increase in competition. This study aims to assess customer satisfaction with saving and credit cooperatives in Kathmandu. The study adopted a descriptive and causal-comparative research design to achieve the research objective. The survey targeted customers of the savings & credit co-operatives operating in the Kathmandu district as the population. The study selects 384 respondents by using a judgmental sampling technique. The primary data was collected from a questionnaire survey with a 5-point Likert scale. Questionnaires were distributed through Google Forms and print questionnaires.  The data has been analyzed by applying descriptive statistics (frequencies, percentage, mean, Standard deviation), and inference statistics (correlation, and regression)   to test the hypothesis of the study. The result shows that all the independent and dependent variables are associated with each other.  The result found that there is a significant impact of study variables (location,  employee behavior,  interest rates, saving options, and loan terms) on customer satisfaction.