INFLUENCE OF PRODUCT DIFFERENTIATION STRATEGY ON THE GROWTH OF SUPERMARKETS IN KAKAMEGA COUNTY
Abstract
This study sought to investigate the influence of product differentiation strategies on the growth of supermarkets in Kakamega County, Kenya. The study was based on differentiation theory. The study adopted descriptive survey design and targeted 121 officers from 7 supermarkets and their branches spread across major towns of Kakamega County, from where Yamames sampling formula was used to get a sample size of 93 respondents. A pilot study was done in an established supermarket in Bungoma County (Khetia) to test instrument validity and reliability. Data was collected by structured questionnaires. Data analysis was computed by SPSS 24, where descriptive (frequencies, percentages, mean and standard deviations) and inferential statistics (correlations and multiple regression) was generated. A total of 85 out of the sampled 93 respondents returned completely filled questionnaires representing a response rate of 91.4% which is good for generalizability of research findings to a wider population. From the values of unstandardized regression coefficients with standard errors in parenthesis, product differentiation strategy was significant predictors of the perceived growth of supermarkets in Kakamega County (dependent variable). The study concluded that product differentiation strategy if timely applied can attract new customers and while retaining old customers through brand loyalty tactics. The study recommended that one; for supermarkets to realize a significant growth, they must offer a wide range of products to cater for all types of shoppers.
Key Words: Product Differentiation, Growth of Supermarkets, Kakamega County
CITATION: Njeka, M. N., & Otinga, H. N. (2019). Influence of product differentiation strategy on the growth of supermarkets in Kakamega County. The Strategic Journal of Business & Change Management, 6 (2), 1100 –1109.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1174
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