Rural Citizens’ Perceptions on Microfinance Services Adoption in Tanzania: Moderating Effects of Demographic Factors

Abstract

The purpose of this study is to investigate the moderating effects of demographic variables among the rural citizens in Tanzania on the association between perceived benefits and determinants of intention to adopt microfinance services by using the Theory of Reasoned Action. Stratified and multistage sampling techniques were employed to select respondents and survey questionnaire was administered to collect the data that resulted in a response rate of 82%. The structural equation modelling (SEM) was employed to analyse the hypotheses of the core and moderating models. The study’s findings demonstrated that gender and education moderate the impact of perceived benefits and subjective norms on the rural citizens’ intention to adopt microfinance services. In addition, the findings suggest that perceived benefits, attitude and subjective norms significantly influence rural citizens’ intention to adopt microfinance services. The current study offers useful suggestions to policy makers to design relevant policies customised according to the strength of the demographic variables that influence determinants of rural citizens’ intention to adopt microfinance services.