Hildah Ombasa


The main purpose of this study was to determine the effects of customer satisfaction on strategic positioning in the insurance industry in Kenya .The term strategic positioning is one which is aimed at dealing with the impact on strategy and to meet the expectation and competences of the internal and external stakeholders, internal resources and the environment in general. In the current world of business where competition among firms is becoming more and more fierce it is important for firms to differentiate themselves.The study adopted   a cross sectional research design and the target populations were 48 insurance firms operating in Kenya. The insurance companies are classified into four: 10 long-term business insurers, 21 general business insurers, 16 composite insurers and 3 re-insurance companies .For the purpose of the study, the researcher selected randomly   3 representatives from the customer service department, marketing department and finance department based on the insurance classification and the targeted population was   300 , from where a sample of 30 percentage  of the entire population (90 ) was drawn.This study used a purposive sampling; the researcher chooses the sample based on who they think would be appropriate for the study. In carrying out data collection, two techniques were used; questionnaires and interviews. The questionnaires were both open and closed ended. Questionnaire was adopted as the principal data collection instrument and Interviews were carried out using an interview guide that was prepared in advance. The study applied both the qualitative and quantitative data analysis techniques to analyze data. Data analysis was done using statistical package for social science (SPSS) computer package. These results were presented in form of charts and tables. This study will be of significant importance to the insurance industry, investors, the government and other institutions in Kenya.

The information from this study may help all interested parties to position themselves strategically for effectiveness in their operations to ensure customer satisfaction. Profitability, market share, and value adding activities have positive coefficients. This implies that the variables are directly proportional to the strategic positioning of the insurance industry in Kenya. The researcher came up with the following recommendations. A firm should have efficient   internal process, superior customer service, deliver quality services to their clients, good corporate reputation and increase level of customer satisfaction.

Key Words: Insurance Industry, Strategic Positioning, Customer Satisfaction

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