Effect of Non-Monetary Programs on Financial Performance of Selected Firms in the Service Industry in Kenya.
DOI:
https://doi.org/10.47672/ajf.750Keywords:
non-monetary program, service industry and financial performanceAbstract
Introduction: Non-monetary rewards are non-financial measures that a merchant or a seller realigns with customer values to attract and retain more customers. This involves providing value to customers in other ways than discount and dollars rewards. Depending on the customer's values, and on the industry, customers may find more value in non-monetary or discounted rewards.
Purpose: The overall objective of the study was to investigate the effect of non-monetary programs in the financial performance of selected firms in the service industry in Kenya.
Methodology: The research design adopted for the study was descriptive research design. The study explored major users of non-monetary programs in Kenya including: the telecommunication firms, supermarkets, 18 five-star hotels in Kenya, Kenya airport authority and fueling station in Kenya. The target population was three (3) telecommunication firms (Safaricom, Airtel and Telkom Kenya), 5 large supermarkets and 18 Five Star hotels in Nairobi. Since the population of telecommunication firm is small the study used the census survey method and thus there was no sampling. The researcher used both descriptive and inferential statistics.
Findings: The results show that non-monetary programs have a positive and significant relationship with financial performance. The study concludes that non-monetary programs have a positive and significant effect on financial performance of selected service industries in Kenya.
Recommendation: Communication Authority of Kenya, Tourism Authority of Kenya and the ministry of trade should support the development and usage of monetary loyalty programs among service industries firms in Kenya. This can be done in friendly manner such as avoiding overly broad and strong regulation of the loyalty programs. In this regard, the government and the law makers should ensure that they involve a variety of loyalty programs stakeholders in the regulatory process, so that their vision and needs can be fairly balanced with government interests. The government should work closely with loyalty programs businesses, users, miners and advocates when creating and enforcing law.
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