Towards an Integrated Model of Price Justice in the Microfinance Sector in Bukavu, DR Congo

Abstract

This study develops and tests an integrated model of price justice in the microfinance sector in Bukavu, Democratic Republic of Congo, by examining its relationships with customer satisfaction, trust, and intentions to leave. The analysis draws on quantitative survey data collected from 324 clients of six microfinance institutions. Price justice is operationalised as a multidimensional construct comprising relative price, price honesty, price reliability, price satisfaction, price moderation, and price confidence. Data were analysed using analysis of variance, tests of mean differences, reliability analysis, and structural equation modelling. The structural model shows an acceptable fit and supports four of the six proposed hypotheses. Perceived price justice has significant positive effects on both customer trust and satisfaction, while satisfaction and trust each have significant negative effects on intentions to leave. By contrast, the direct relationship between price justice and intentions to leave, as well as the relationship between satisfaction and trust, is not statistically supported. These findings establish price justice as a strategic mechanism through which microfinance institutions can strengthen customer confidence and satisfaction and indirectly reduce customer defection. The study therefore highlights the importance of transparent, honest, reliable, and moderate pricing practices for restoring client confidence and sustaining relationships in a microfinance sector affected by institutional instability and increasing competition.