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This study was a comparative study of the level of service performance between
foreign and local banks. It focused on customers’ perception of service performance. This
comparison was purposely done due to the fact that different international banks have
opened their branches in Tanzania, and this has in one way or another forced to change the
competitive landscape of the country’s banking industry. The study had a sample size of 380
respondents who were the customers of these banks. Confirmatory Factor Analysis at the
second-order level was analyzed by looking at the Chi-square statistical values, Incremental
Fit Index, the Tucker-Lewis Fit Index, the Comparative Fit Index, the Parsimony Normed Fit
Index, and the Root Mean Square Error Approximation as the indicators of the model fit.
Mean values were compared between foreign and local banks. The main findings from the
study indicate that the fit indices indicated measurement invariance of service performance.
quality of service, service innovativeness, and cash distribution facilities were perceived
better by foreign banks’ customers than local banks’ customers. |
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