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Influence of Price and Distributive Fairness on Micro Finance Customers’ Relationship Commitment: PLS-SEM Analysis

International Journal of Science and Management Studies (IJSMS)
© 2019 by IJSMS Journal
Volume-2 Issue-5
Year of Publication : 2019
Authors : Dr. Shaikh Rafiqul Islam
DOI: 10.51386/25815946/ijsms-v2i5p109
Citation:
MLA Style: Dr. Shaikh Rafiqul Islam "Influence of Price and Distributive Fairness on Micro Finance Customers’ Relationship Commitment: PLS-SEM Analysis" International Journal of Science and Management Studies (IJSMS) V2.I5 (2019): 77-85.

APA Style: Dr. Shaikh Rafiqul Islam, Influence of Price and Distributive Fairness on Micro Finance Customers’ Relationship Commitment: PLS-SEM Analysis, International Journal of Science and Management Studies (IJSMS), v2(i5), 77-85.
Abstract:
Bangladeshi Micro Finance Institution (MFI) sector is highly competitive in financial industry. Due to strong multifaceted competition customer drop out (exit/switching) is taking place. In fact, to achieve sustainability, MFIs need to reduce the dropout rate and to retain customer by developing relationship commitment (RC). Hence, the aim of the empirical study is to find out how the clients drop out from the MFI can be prevented through developing relationship commitment in the relational exchange context. The study focuses on the price fairness and distributive fairness as an antecedent of relationship commitment. The PLS-SEM technique is utilized for the analysis of data collected from 409 consumers of different MFI’s of Bangladesh. The study employed survey method for getting responses from MFI consumers about price fairness, distributive fairness and relationship commitment related statement. The study explores that price fairness, distributive fairness, has significant effect on relationship commitment. Hence, the findings of this model may be applied by the policy makers and the practitioners as an approach to enhance relationship commitment in the MFI’s in developing economy context.
Keywords: Price fairness, Distributive fairness, Relationship commitment, Relational exchange, MFI.
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