EFFECT OF STRATEGIC PROMOTIONAL ACTIVITIES ON CUSTOMER PURCHASING BEHAVIOR: A CASE OF ZUKU, KENYA
Abstract
The general objective of this study was to evaluate the effect of strategic promotional activities on customer purchasing behavior in relation to Zuku, Kenya. The study adopted a descriptive research design to collect the views of the respondents on the variables: advertisements, price discounts, loyalty programs and giveaways and their effect on customer purchasing behavior. The target population in this study comprised of all subscribed Zuku customers, dealers and retailers in Kenya. Zuku had 300,000 subscribed customers, dealers and retailers in Kenya. The unit of analysis was customer, dealers and retailers registered as Zuku subscribers in Kenya. A sample of 342 Zuku customers, dealers and retailers was selected from the list of registered Zuku subscribers in Kenya, obtained from Wananchi Group, Zuku. Proportional allocation or Stratified random sampling was used to determine the sample size for each stratum. Primary data was collected through a self-administered semi-structured questionnaire and secondary data relevant to this study was collected from sales reports, call center reports, journals and various internet sources. The questionnaires were pre-tested with one customer and one dealer in Uganda (Zuku’s second largest market), to ensure that the instrument was reliable. Data analysis using descriptive statistics was done using SPSS version 20 computer programme. All the measures of central tendency and measures of dispersion were utilized. In addition, multiple regression was used to explore the association between various elements in a variable and association between variables. The study established that strategic promotional activities had a significant impact on customer purchasing behavior in Zuku, Kenya. In specific, advertisements, price discounts, loyalty programs and giveaways explained 65.7 percent of the variance in customer purchasing behavior. The study recommended that Zuku, Kenya should in general employ a strategic mix of promotional activities to stimulate customer purchasing behavior. The study concluded that Zuku, Kenya should utilize giveaways as the main strategic promotional activity since they had the greatest effect on customer purchasing behavior, followed by loyalty programs, advertisement and finally price discounts in that order.
Key Words: Advertisements, Price Discounts, Loyalty Programs, Giveaways, Customer Purchasing Behavior
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.916
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