INFLUENCE OF RELATIONSHIP MARKETING ON GROWTH OF MICRO FINANCE BANKS IN KENYA
Wairimu Kiai Mary - Master of Business Administration (Strategic Management), Jomo Kenyatta University of Agriculture and Technology, Kenya
Osieko Matti - PhD, Strategic Management, Moi University, Kenya
ABSTRACT
This study examined the influence of relationship marketing strategy on growth of MFBs in Kenya. The study was grounded on Resource-based view theory (RBV), Porter’s Generic Strategy and Social Cognitive Model of Career Development. The target population was 104 senior and middle level management staff of the 13 licensed MFBs in Kenya. A census method was used to select all respondents to take part in the study. For Primary data, self-administered questionnaires was delivered to the respondent and picked after dully filled other methods included online administration. Data was presented inform of tables and graphs. Descriptive statistics such as frequencies, percentages, mean score and standard deviation were computed to summarize data into meaningful form, while inferential data analysis was done using Pearson correlation coefficient and regression analysis (multiple regression analysis). Hypothesis testing was done using p-value set at P<0.05 and F-statistic computed at 95% confidence level. The study results using both descriptive and inferential statistics indicated that relationship marketing initiatives significantly influence growth of MFBs (dependent variable). The study concluded that MFBs that treat a customer as ‘king’ can win customer trust and loyalty, thus attract and retain a huge customer base, thus enhance their financial growth. The study recommends that marketing managers of MFBs should embrace innovative customer relationship programs that seamlessly address customer complaints, needs and preferences.
