DIFFERENTIATION STRATEGIES AND CUSTOMER LOYALTY IN INVESCO ASSURANCE COMPANY LIMITED KENYA, NAIROBI
Abstract
The study’s general objective was to establish the connection between the differentiation strategy and loyalty of customers in Invesco assurance Co. Ltd in Nairobi. The study utilized the descriptive research design. The target population was 500 Matatu owners and operators who are clients of the Invesco Assurance within Nairobi City County plying Thika Road, Eastlands and Rongai routes. Proportionate stratified sampling technique was employed. The sample size was 150 customers drawn from the target population. Semi-structured questionnaire was administered to improve the response rate. Quantitative data was analyzed for both descriptive and inferential. The analysis was done using a multiple regression analysis and from the results a unit increase in the use of product differentiation strategies holding other variables constant leads to an improvement in customer loyalty by .887 times. The customer loyalty was improved significantly based on the p value of .000. From the regression results, a unit improvement in the application of the image differentiation strategies holding other variables constant leads to an improvement in customer loyalty by .705 times. The improvement in customer loyalty was significant since the p value was .000. From the outcomes in regression analysis, a unit improvement in the application of the brand differentiation strategies holding other variables constant leads to an improvement in customer loyalty by .279 times. Given that the p value was .013 the improvement in customer loyalty was significant. The study recommended that the company should continue enhancing its product research and develop new products, new packaging of services and improve on products functionalities to remain competitive. To further enhance customer loyalty, the company should focus more on promoting its image through the use of social media platforms to complement its marketing through the mainstream media. The study finally recommended that the company should enhance brand name selection of its products to further make them more appealing to the customers. Further studies need to be done on the effect of differentiation strategies on customer loyalty among all the insurance companies to get a conclusive position on how differentiation strategies can enhance business performance.
Key Words: Product0differentiation, Assurance Companies, Image Differentiation, Brand Differentiation
CITATION: Emmanuel, D. N., & Murigi, E. (2024). Differentiation strategies and customer loyalty in Invesco assurance company limited Kenya, Nairobi. The Strategic Journal of Business & Change Management, 11 (2), 1202 – 1217. http://dx.doi.org/10.61426/sjbcm.v11i2.2988
Full Text:
PDFReferences
Anderson, P. (1992). Discrete choice theory of product differentiation. The MIT Press, Cambridge.
Atikiya, R., Mukulu, E., & Kihoro, J. (2015). Effect of Differentiation Strategy on the Performance of Manufacturing Firms in Kenya. Asian Journal of Humanities and Social Studies. 3(2), 179-184.
Barney, H., & Hesterly, M. (2010). Concepts, strategic management and competitive Advantage. Utah University, USA.
Burnett, L. (1971). Brand and advertising. Business Books Publishers, Indiana University.
Chege, M. (2014). Competitive strategies adopted by Nakumatt Holdings to gain competitive advantage (MBA dissertation, University of Nairobi). Retrieved from http://erepository.uonbi.ac.ke/handle/11295/75262.
Gould, T. (2015). Business, marketing prentice. Prentice Hall Publishers, San Francisco
Josia, F. (2014). Marketing management. Ashford Colour, Press Hampshire, Great Britain.
Kaari, N., &Bichanga, J. (2017). Effect of competitive strategies on customer satisfaction among commercial banks in Kenya. The Strategic Journal of Business & Change Management. 4 (2), 541 - 569.
Kaisa, D. (2012). Strategies for Customer Satisfaction. 4th edition. Ashford Colour Press, Hampshire.
Kalu, M., Anywanwu, N., & Oluchuku, B. (2014). Effect of brand extension on marketing performance. American International Journal of Contemporary Research. 4 (8), 432-445.
Kariuki, N., (2015). The impact of brand image on customer satisfaction in major supermarkets in Nairobi County (MBA Dissertation, University of Nairobi). Retrieved from http://erepository.uonbi.ac.ke/handle/11295/93264
KenyaRe. (2017). Kenya Reinsurance, Annual report, 2017.
King’oo, J. (2015). Effect of differentiation strategies on the market share of tea exporting firms in Kenya (MBA dissertation, University of Nairobi). Retrieved from http://erepository.uonbi.ac.ke/handle/11295/94600.
Mottee, S., & Ahmad, A. (2017). The effect of marketing strategy on customer loyalty: Conceptual research. Journal of Islamic and Human Advanced Research. 7(3), 33-47.
Musau, S. (2012). The effectiveness of positioning strategies on customer loyalty by clients of the Atlas Copco Eastern Africa Limited (MBA Dissertation, University of Nairobi). Retrieved from http://erepository.uonbi.ac.ke/handle/11295/15103.
Oketch, S. (2014). Challenges of customer Retention by Madison Insurance Company Limited (MBA dissertation, University of Nairobi). Retrieved from http://erepository.uonbi.ac.ke/handle/11295/76239
Onditi, A., Oginda, N., Ochieng, I., & Oso, W. (2012). Implications of service quality on customer loyalty in the banking sector. A survey of banks in Homabay County, Kenya. International Journal of Business and Social Science. 3(2),223-234.
Pierre, C., &Tracey, S., & Dagger, D. (2010). "Service Quality, Trust, Commitment and Service Differentiation in Business Relationships", Journal of Services Marketing. Volume 24, Issue 5, pp.336-346.
Richard, E., & Zhang, A. (2012). Corporate image, loyalty, and commitment in the consumer travel industry. Journal of Marketing Management. 28 (6), 568–593.
Uma, K., & Chandramowleeswaran, G. (2015). A study on service customization impact towards customer satisfaction, loyalty and trust. International Journal of Management (IJM).6 (10), 126-134.
Wangui, R., & Njue, N. (2018). Effects of differentiation strategies on customer loyalty among the Pharmaceutical Companies in Nairobi County, Kenya. European Journal of Management and Marketing studies. 3(2), 41-52
DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2988
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.