THE DETERMINANTS OF CUSTOMER PREFERENCES TOWARDS MICROFINANCE SERVICES: A CONSUMER PERSPECTIVE FROM PAKISTAN
Download| Volume 13 Issue 1 2017 | |
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| Author(s): |
Umair Ahmed
Muhammad Wasim
AbdurRehmanAleemi
Fauzan Saeed
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| Abstract | This study helps to understand the successful path of micro-financing, which can play a vital role in poverty alleviation in Pakistan. To 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 a loan for agricultural purposes while 54% of loans were business based. It is observed that male respondents are higher than female. The regression model showed 38% variation in consumer preference regarding microfinance services. The statistic in the ANOVA shows the significance of the model. The coefficient of MFI’s Approach with a 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 harming the consumers of micro-finance. Practical Implications-This study delivers statistical evidence of utilization of funds as well as the consistency of gathered data. Work showed that respondents need to be acquired more knowledge about microfinance services in Pakistan. |
| Keywords | MFIs,Microfinance, Customer Preferences, Pakistan |
| Year | 2017 |
| Volume | 13 |
| Issue | 1 |
| Type | Short Report |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | Z13 | DOI | http://dx.doi.org/10.46745/ilma.jbs.2017.13.01.12 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Type of Review | Double Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/13.1/12.pdf | Page | 148-159 | Reference | Hass, Harmgart and Meghir(November 2012). Microfinance, Poverty and Education. Bosnia
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