The Perceived Influence of the Marketing Mix on Brand Choice Among Sme Customers of Chase Bank (in Receivership)

Abstract

Marketing strategy should enable firms to concentrate their limited resources towards opportunities that offer the greatest positive impact on their brand equity towards the realization of enduring competitive advantage. It is from this understanding that marketing scholars and practitioners developed the concept of the marketing mix. However, little research focus has been directed on the most salient element or set of elements that marketers in the banking sector in Kenya should pay more attention to. The main objective of this study was to determine the perceived influence of marketing mix on brand choice among SME customers of Chase Bank. The sample comprised 96 SME clients of Chase Bank drawn from 17 branches in Nairobi County. A questionnaire was used to collect data. Both descriptive and inferential statistical techniques were used to analyse data. Brand choice was regressed on a composite measure of each of the 7Ps of marketing using multiple linear regression modelling. Data was analysed using SPSS. Results showed that all the marketing mix elements together explained 71.3% of brand choice to a statistically significant degree (R2=.713, p<.01). However, the effect size of each element of the 7Ps varied markedly. Product mix had the highest explanatory power on the variability of respondents’ brand choice to a statistically significant degree (=.383, p<.05) followed by process dimensions of banking services (=.355, p<.05) and lastly, place dimensions (=.235, p<.05).People factors ranked fourth out of the 7Ps of the marketing mix factors in terms of effect size on brand choice (=.169, p>.05). Price was the only marketing mix element with a negative effect size on brand choice, although not to statistically significant degree (=-.165, p>.05).Physical evidence had a very small effect size on brand choice, explaining only 3.1% of the variability in brand choice (=.026, p>.05). Promotion had the least effect size on brand choice, accounting for only 2.0% of its variability (=.020, p>.05). Each marketing mix element have different degrees of salience on brand choice and thus, demand varying degrees of marketing attention and prioritization. Product and process elements were the most salient. Chase Bank should consolidate its strong brand choice by allocating more resources and attention to its products and processes