Promotion and advertising at the base of the pyramid: Microfinance captive borrowers' sensitivity to service quality

Abstract

The purpose of this research is to survey microfinance borrowers who are working poor and examine how they see customer satisfaction and corporate social responsibility. Design, method, and strategy A cross-sectional field study survey of 201 respondents included scale measures that had been validated. After calculating factor loadings and reliabilities, OLS regression was employed. Findings - Future purchase intentions were substantially influenced by customer unhappiness with the microfinance product, staff members' lack of commitment, and informative support. Only a significant relationship existed between perceptions of CSR and discontent with the firm's employees. Contextual implications - Even if they believe the seller to be socially responsible, dissatisfied poor would choose to shop elsewhere. However, the firm's agents' attitudes and practises suggest low CSR. Customers that used microlending were attentive to customer care. Their perceptions of CSR were highly correlated with service quality. Originality/Value - This exploratory study, which looks at stakeholders at the base of the pyramid, is unique. Indian respondents, who were among the first to receive microloans, are infrequently sampled. Microfinance borrowers are attentive to customer service despite being captive clients with few options. Their opinions of CSR are strongly correlated with this service.