The Effect of Porter's Generic Competitive Strategies on Customer Satisfaction in Commercial Banks within Nakuru Municipality, Kenya
Keywords:
Porter’s generic competitive strategies, customer satisfaction, commercial banks Nakuru Municipality, Kenya.Abstract
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.
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