INFLUENCE OF COMPETITIVE STRATEGIES ON CUSTOMER SATISFACTION AMONG COMMERCIAL BANKS IN KENYA
Abstract
This study sought to establish the influence of competitive strategies on customer satisfaction among commercial banks in Kenya. The study adopted a descriptive survey design and targeted eighty eight (88) respondents in all the forty-four (44) registered commercial banks in Kenya. The data was collected using questionnaires using the drop and pick later method. The questionnaires were then edited, coded and analysed using the statistical package for data analysis. The study found out that banks can adopt product differentiation strategies by offering superior goods and services of high quality to their customers. The study showed that there was significant relationship between diversification strategies and customer satisfaction. The study found out that banks should adopt cost leadership strategies so as to attract and retain more customers, and design products that were of superior quality compared to that of their competitors so as to gain competitive advantage and also embrace process innovation strategy and design products that target different income classes and adopt the competitive strategies such as cost leadership strategies and focus strategies so as to remain relevant to their customers by offering superior products that were of better quality. The coefficient of determination (R-square) was 0.728 implying that the four variables jointly accounted for up to 72.8% of the variation in customer satisfaction of commercial banks in Kenya.
Key Words: Product Differentiation, Diversification, Process Innovation, Cost Leadership, Customer Satisfaction
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.923
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