The perceived quality of service in the mortgage sector:the case of housing finance

Abstract

The primary objectives of this study was to determine customers' expectations are regarding the perceived quality of service in the mortgage sector and whether customers' perceived quality of Housing Finance mortgage services coincides with their expectations of this service. The researcher was prompted to undertake this study as several researches have been carried out on the issue of perceived service quality in the commercial banks in Kenya but no research so far has addressed the perceived service quality in the mortgage sector in Kenya. Housing Finance was therefore selected, as it is the market leader in this sector. To facilitate the study, 50 questionnaires were administered. In the end, the researcher managed to get 30 respondents. The results of the research indicated that Housing Finance and any other mortgage finance institution need to address the identified gaps which includes; greeting customers, ensuring faster service especially at peak time, and managing customer relationships to enhance satisfaction. Training of the main service providers should focus on these aspects. Service at the Mortgage Reception met the expectations fully in addressing customers by name (100%). There were slight service gaps (5%) in failing to give service on first come basis, maintain eye contact, smiling, appearing knowledgeable and availing stationery that is user friendly. There were a notable service gaps m several aspects including; service provider failure to greet the customer (19%), service time being below expectation for 43% of the customers with a negative perception index (-48) and 'top box' satisfaction 'totally satisfied' being at only 3% indicating a major satisfaction gap. The customers welcomed the new look (logo) and corporate identity. It was the most liked aspect about Housing Finance.