INFLUENCE OF COMMERCIAL BANKS' CUSTOMER RELATIONSHIP MARKETING (CRM) STRATEGY ON GROWTH OF MSES IN KENYA

Authors

  • Jane Karambu Kathuku Jomo-Kenyatta University of Agriculture and Technology
  • Dr. Patrick Karanja Ngugi Jomo-Kenyatta University of Agriculture and Technology
  • Dr. Willy Muturi Jomo-Kenyatta University of Agriculture and Technology

DOI:

https://doi.org/10.47672/ijms.27

Keywords:

Commercial banks' customer relationship marketing (CRM), growth of MSEs

Abstract

Purpose: The main purpose of this study was to establish the influence of commercial banks' customer relationship marketing (CRM) strategy on growth of MSEs in Kenya.

Methodology: The study employed a descriptive survey design with a population of 2,519,457 MSEs in Kenya and the chief credit officers from the 44 commercial banks in Kenya. The bank chief credit officers and MSEs owners were targeted for information by this study because they were likely to be the decision makers. The chief credit officers who were sampled from the headquarters of the commercial banks were actively involved in making lending decisions. The researcher used purposive sampling to select respondents. The sample size which was purposively selected was comprised of 352 respondents. The study will use questionnaires to collect data from the field. Both quantitative and qualitative data gathered will be coded and analyzed using Statistical Package for Social Sciences (SPSS) computer software. Descriptive statistics was used to analyze the data in frequency distributions and percentages which were presented in tables and figures. Inferential statistics were used to analyze qualitative data.

Results: The study found out that commercial banks' customer relationship marketing (CRM) strategy have a positive and significant effect on MSEs Growth.

Unique contribution to practice and policy: It was recommended that commercial banks should improve on customer relationship management to enhance the growth of MSEs. This study demonstrated that keeping banking relationships can be beneficial to firms, in so far as contact between the commercial banks and MSE can improve the availability of funds and lower their costs.

 

 

Downloads

Download data is not yet available.

Author Biographies

Jane Karambu Kathuku, Jomo-Kenyatta University of Agriculture and Technology

Postgraduate Student

Dr. Patrick Karanja Ngugi, Jomo-Kenyatta University of Agriculture and Technology

Lecturer, Jomo-Kenyatta University of Agriculture and Technology

Dr. Willy Muturi, Jomo-Kenyatta University of Agriculture and Technology

Lecturer, Jomo-Kenyatta University of Agriculture and Technology

References

Beck, T, Demirguc-Kunt, A & Maksimovic, V. (2012). Financing Patterns Around the World: The Role of Institutions. World Bank Policy Research Working Paper, 2905. Washington, D.C: The World Bank.

Biswas, A (2008). Role of Financing Policies and Financial Institutions for Micro, Small and Medium Entrepreneurs.

Calice, P., Chando, V., & Sekioua, S. (2012). Bank Financing to Micro and small enterprises in East Africa: Findings of a Survey in Kenya, Tanzania, Uganda, and Zambia. Working Paper No. 146. African Development Bank Group. Office of the Chief Economist.

Hallberg, Kristin.(2010), "A Market- Oriented Strategy for Small and Medium - Scale

Enterprises," Discussion Paper 40, International Finance Corporation.

Hyatt L (2001). "A simple guide to strategy", Nursing Homes, 50(1): 12-13.

Kombo, D. K., & Tromp, D.L.A. (2013). Proposal and Thesis Writing: An Introduction. Nairobi: Paulines Publications Africa.

Malburg C (2000). "Competing on costs", Industry Week, 249(17): 31.

Ochieng, N. A. (2015). International Market Factors Affecting the Performance of Small and Medium Enterprises in Kenya: 2000-2014 (Doctoral dissertation, University of Nairobi).

Osoro, K., & Muturi, W. (2013). The role of micro financial institutions on the growth of SMEs in Kenya: A case study of micro financial institutions in Kisi Town. IOSR Journal of Humanities and Social Science (IOSR-JHSS), 16(1), 2279-0837.

Republic of Kenya (2010). Economic Survey. Nairobi Kenya: Government Printer.

Downloads

Published

2016-10-11

How to Cite

Kathuku, J. K., Ngugi, D. P. K., & Muturi, D. W. (2016). INFLUENCE OF COMMERCIAL BANKS’ CUSTOMER RELATIONSHIP MARKETING (CRM) STRATEGY ON GROWTH OF MSES IN KENYA. International Journal of Marketing Strategies, 1(1), 1–11. https://doi.org/10.47672/ijms.27

Issue

Section

Articles