The Effect of Porter's Generic Competitive Strategies on Customer Satisfaction in Commercial Banks within Nakuru Municipality, Kenya


  • Wendy Cherono Chebii Egerton University
  • Tabitha Wangari Kibithe Egerton University


Porter’s generic competitive strategies, customer satisfaction, commercial banks Nakuru Municipality, Kenya.


This study was set to determine the effect of Porter's Generic Competitive Strategies on Customer Satisfaction within commercial banks in Nakuru Municipality. This study adopted a descriptive survey design and employed purposive sampling technique in the identification of the banks and systematic random sampling technique in the selection of the respondents. The study sample was obtained from bank customers that have operated in Nakuru Municipality for a period of more than five years. A representative sample of 384 bank customers was chosen and data was collected over a period of one month. The study used a questionnaire to gather data from the respondents. Data collected was analyzed for descriptive statistics and inferential statistics (correlation and regression) using Statistical Package for Social Sciences (SPSS) computer software version 15. Research findings were presented in the form of tabular summaries. The significance level used for the study was 0.05. Results revealed that differentiation, cost leadership and focus strategy were significantly positively related to customer satisfaction. The study concluded that differentiation, cost leadership and focus strategy affect customer satisfaction positively. The study recommended that banks need to improve on the implementation of the three porter's generic strategies especially differentiation and focus strategy and also deliver services that exceed customer's expectations in order to enhance customer satisfaction and that similar studies should be carried out in other parts of the country and in other sectors of the economy.

Keywords:  Porter's generic competitive strategies, customer satisfaction, commercial banks Nakuru Municipality, Kenya.

Author Biographies

Wendy Cherono Chebii, Egerton University

Post Graduate Student: Egerton University

Tabitha Wangari Kibithe, Egerton University

Post Graduate Student: Egerton University


Akan, R.S., Allen, M.M., Helms, S. & Sprawls, A. (2006). Critical Tactics for Implementing Porter‟s Generic Strategies: Journal of Business Strategy, pp. 43-53.

Barney, J. & Hesterly, W. (2006). Strategic management and competitive advantage: concepts and cases. 2nd edition. UK : Prentice hall.

Barney, J.B. (2002). Gaining and sustaining competitive advantage, 2nd edition. N.J: Prentice hall.

Bennett, A. (2002). Marketing Business Management. A value chain approach: Van Schaik Publishers Pretoria pp. 178

Boulding, W., Staelin, R. & Zeithaml, V.A, (1993): A dynamic process model of service quality: from expectations to behavioral intentions: Journal Marketing Research, Vol. 30. pp, 7- 27

Chang, Z. Y., Chan, J. & Leck, S. L. (1997). Management of Market Quality for Correspondent Banking Products: The International Journal of Bank Marketing.

Cohen, A. & Mazzeo, M. (2004). Competition, Product Differentiation and Quality Provisions. An Empirical Equilibrium Analysis of Bank Branching Decisions. Northwestern University, Mimeo.

Cohen, D., Gan, C. , Yong, H. & Choong, E. (2006). The effect of Generic Competitive Strategies on Customer Satisfaction in Zealand.

Crossley, J. & Brandford, J. (1995). A history of Banking in many Countries 1925-1995 (London, Barclays Bank International Limited).

Davidson, S. (2001). Seizing the competitive advantage. Community Banker, pp. 32-47.

Ennew, C.T. & Binks M.R.(1996). The impact of service quality and service characteristics on customer retention. Small Businesses and their banks in the UK: British Journal of Management, pp. 219-230.

Flint, G.D. & Gerald, D. (2000).What is the Meaning of Competitive Advantage? Advances in Competitiveness Research, pp.3-8.

Fornell,C. (1992). A National Customer Satisfaction Barometer: The Swedish Experience; a Journal of Marketing.

Grand, P. (2002). Achieving excellent customer relationships. Manual of Customer Interface Management, pp. 69.

Hart, C. (2003). Doing a Literature Review, Sage: London.

Harwood, M. (2002). Branding on a Budget. Building the Community Bank's Image.

Community Banker, 11(4), April, pp. 24-28.

Ioanna, P. D. (2002). The Role of Employee Development in Customer Relations. The Case of UK Retail Banks, Corporate Communication, 7(1), pp. 62-77.

Kotler, P. & Armstrong, G. (2006). Principles of Marketing, 11th edition, New Delhi. Krejcie, R. & Morgan, D. (1970). Determining sample size for research activities in Education and psychological measurements, pp 30

Kurniawa, B. (2010). Factors affecting Customer Satisfaction in Purchase Decision on Ticket Online. A Case Study in Air Asia.

Oliver, R. (1997). Satisfaction: A Behavioral Perspective on the Consumer, Boston.

Ovidiu, N. B, Anca, I. B., Razvan, L.N & Catalina, S. M. (2009). The use of Michael Porter‟s Generic Strategies in the Romanian banking industry.

Petruzzellis, L.,D‟Uggento, A.M., and Romanazzi, S. (2006) Student Satisfaction and Quality of Service in Italian Universities, Managing Service Quality, Vol. 16. No.4.

Porter, M.E. (1980). Competitive Strategy, Techniques for Analyzing Industries and Competitors. New York: The Free Press, pp. 396.

Porter, M.E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance.

The Free Press, New York, pp.557.

Pretorius,M. (2008). When Porter‟s generic strategies are not enough. Complementary strategies for turnaround situations: Journal of Business Strategy, Vol. 29, No. 6, pp. 19-28.

Russell-Bennett, R., McColl-Kennedy, J.R. & Coote, L.V. (2007) .Involvement, Satisfaction and Brand Loyalty in a Small Business Services Settings, Journal of Business Research, Vol. 60, pp. 1253-1260.

Spulber, D.F. (2009). Economics and Management of Competitive Strategy. World Scientific Publishing Company: The Journal of Industrial Economics, pp. 29, 4, 375- 84.

Thompson, F. & Martin, J. (2005). Strategic Management: Awareness and Change (5th edition). Thomson Learning.

Turel, O. & Serenko A. (2006). Satisfaction with Mobile Services in Canada: An Empirical Investigation of Telecommunication Policy, pp.314-331.

Wit, D.B. & Meyer, R. (2002). Strategy: Process, Content, Context 2nd edition, London, Great Britain: Thomson Learning.

Woodruff, B. (1997). Customer Value: The next source of competitive advantage. Yin, R.K. (2003). Case study research: Designs and methods, 3rd edition.




How to Cite

Chebii, W. C., & Kibithe, T. W. (2018). The Effect of Porter’s Generic Competitive Strategies on Customer Satisfaction in Commercial Banks within Nakuru Municipality, Kenya. Journal of Strategic Management, 2(3), 1–24. Retrieved from