SMALLHOLDERS FARMERS AWARENESS OF SERVICE QUALITY IN COMMERCIAL BANKING: A CASE OF AMATHOLE DISTRICT

The determination of service quality and satisfaction outcome derived by smallholder farmers has been diverse and still remain an issue in the public domain. The study investigated awareness of service quality and satisfaction of smallholder farmers’ with the commercial banking sector in Amathole district. The paper used a structured questionnaire which consist of a prepared question-items with fixed answers and alternatives in line with the stated objectives of the study. In assessing smallholder farmers’ expectation, perception and satisfaction of service quality; the paper adapted the psychometrically tested SERVQUAL model: Tangibles, Empathy, Responsiveness, Reliability and Assurance to assess the level of service quality and satisfaction. Finding reveal that the closer the perception score to expectation score, the higher the perceived level of quality service. However, the overall assessment of smallholder farmers’ expectation exceeds the perceived service that was given by selected commercial banks. Furthermore, results reveal that there are significant relationship between the two items: Tangibility and Reliability, and smallholder farmers’ satisfaction. The paper recommended that rendering quality services requires a rational approach and training of bank staff to enhance improvement that will contribute to encouraging smallholder farmers’ to stay loyal and avoid switching banks.