The Influence of Promotion Marketing Mix Element on Performance of Microfinance Institutions in Nairobi County: Emerging trends in customer management

##plugins.themes.academic_pro.article.sidebar##

Published Apr 20, 2022
https://doi.org/10.71064/spu.amjr.1.1.132
Download
pdf
Statistic
2022: Special Issue:African Multidisciplinary Journal of Research

##plugins.themes.academic_pro.article.main##

Maurice M. Osundwa
St. Paul's University
Wanjiku K. Ng`ang`a
St. Paul's University
Robert Abayo
St. Paul's University

Abstract

Microfinance institutions (MFIs) play a key position in the Kenyan economy by providing financial support to the middle working class and the low-class individuals. Some of the notable MFI`s include Platinum Credit, Mwananchi Credit, Momentum Credit My Credit among others. With the many hidden costs such as loan penalties, tracking, insurance costs, repossessions by auctioneers of the charged securities, Covid-19 pandemic, MFI`s still manage to offer stiff competition to the main stream banks and other financial service provides. These glaring anomalies informed the need to interrogate the marketing mix elements used by MFI`s to gain and sustain a competitive advantage edge in the highly competitive market. The impact of marketing mix variables on MFI performance in Nairobi County was investigated in this study. The objectives of the study included interrogating the influent of promotion and price element of marketing mix on performance of MFI`s. This was in line with the theme of emerging trends in customer management. The study utilized descriptive research design. The study involved 98 respondents from 49 MFI`s in Nairobi, each one providing two respondents. The study utilized questionnaires as the primary data collection instrument. They were emailed to respondents in compliance with the Ministry of Health guidelines. The instrument was tested for validity and reliability using a sample pilot study in the neighboring County of Kajiado. SPSS was used to analyze the data and show it in the form of graphs and tables. The unbiased study revealed that promotion as an independent variable of the study had positive relationships with the performance of MFI institutions presenting whereas price produced an inverse relationship to MFI performance respectively. The study recommended that MFI should increase budgetary on promotion, explore alternative pricing strategies eradicate hidden costs while ensuring retention and growth customer base through acquisition of new customers.


Keywords: Microfinance institutions, marketing mix elements. promotion, price

##plugins.themes.academic_pro.article.details##

How to Cite
Osundwa, M. M., Ng`ang`a, W. K., & Abayo, R. (2022). The Influence of Promotion Marketing Mix Element on Performance of Microfinance Institutions in Nairobi County: Emerging trends in customer management. African Multidisciplinary Journal of Research, 1(1), 253–269. https://doi.org/10.71064/spu.amjr.1.1.132

References

  1. Aemiro, T., & Mekonnen, D. (2012). The financial performance and sustainability of microfinance institutions during the current financial crisis: The case of Amhara Credit and Saving Institution (ACSI) in Ethiopia. International Journal of Business and Public Management,
  2. Al-slehat Z. A., Al-Sharif-B.M. & Qwander A (2018). The factors Affecting the use of Financial Derivatives' Instruments an Applied Study on the Jordanian Commercial Banking Sector. Journal of Economics and Finance, 9(2), 81-88. Francis, J., & Collins-Dodd, C. (2004). Impact of export promotion programs on firm competencies, strategies and performance. International Marketing Review. 21(4/5), 474-495.
  3. Kotler & Armstrong (2010). Principles of marketing. London: Pearson education.
  4. McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. New Jersey: John Wiley & Sons.
  5. Mylonakis, John (2009), Customer Relationship Management Functions: A survey of Greek bank customer Satisfaction perception. The IUP Journal of Bank management.
  6. Njue, N. K., Waiganjo, E. W., & Kihoro, J. M. (2016). Influence of Coaching as a Leadership Development Practice on the Performance of Microfinance Institutions in Kenya. International Journal of Academic Research in Business and Social Sciences, 6(10), 206-217.
  7. Londhe, B. R. (2014). Marketing mix for next generation marketing. Procedia Economics and Finance, 11(1964), 335-40.
  8. Owomoyela, S. K. et al. (2013). Investigating the impact of Marketing mix elements on consumer loyalty: an empirical study on Nigerian breweries PLC. Interdisplinary journal of contemporary research in business. Vol. 4 No. 11.2013 http://journal-achieves30.webs.com/485- 496.pdf.
  9. Palmer, A. (2005). Principles of Service marketing (4th edition). Berkshire: McGraw-Hill Education
  10. Riaz, W. (2011). Marketing Mix, Not Branding. Asian Journal of Business and Management Sciences, Saunders, M. (2012). Research method for business students. 4 Ed. New York: McGraw
  11. Saunders, M. (2012). Research method for business students. 4 Ed. New York: McGraw
  12. Singh, M. (2012) Marketing Mix of 4Ps for Competitive Advantage. IOSR Journal of Business and Management (IOSRJBM).
  13. Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research,