Marketing Strategies, Firm Characteristics, Customer Perception and Performance of Food and Beverage Processing Companies in Kenya

Abstract

This study investigated the influence of marketing strategies, firm characteristics and Customer perception on firm performance of Food and Beverage processing Companies in Kenya. The research objectives were to establish the influence of marketing strategies on firm performance; determine the effect firm characteristics on the relationship between Marketing strategies and firm performance; assess the influence of Customer perception on the relationship between Marketing strategies and firm performance and to determine the joint effect of Marketing strategies, firm characteristics and Customer perception on firm performance. The study used descriptive cross sectional survey method. Two sets of groups were used as population for this study within the Food and Beverage subsector in Kenya. A census survey was contacted for the first group of population of the study. This comprised 71 companies. Group two category of population comprised direct Business Customers in the subsector and consisted of organizational buyers of Food and Beverage products trading directly with the manufacturers. A simple random sampling procedure was used for group two category of population and a sample of 71 was selected for this study. Descriptive statistics and inferential statistics were used to analyze the data. The study had a response rate of 64 (90%) from each group. The results revealed a positive and statistically significant relationship between Marketing Strategies and firm performance; Firm characteristics revealed a positive and statistically insignificant moderating effect in the relationship between Marketing Strategies and firm performance; Customer perception revealed a positive and significant effect in the relationship between Marketing Strategies and firm performance; the joint effect of Marketing Strategies, Firm characteristics and Customer Perception on firm performance was positive and statistically significant (R2= 0.138,F = 3.192,p < 0.05). . This study has made significant contribution to marketing theory, policy and practice in relation to marketing in general to the extent that it has made recommendations and offered suggestions on areas of future research. It has offered more explicit clarification into the relationship between marketing strategies, firm characteristics, customer perception and firm performance. It was recommended for policy makers to push for legislation aimed at low interest rates for startup firms, reduced tax on essential processed commodities and subsidized inputs through Government interventions. The study recommends support of these firms by offering marketing management skills and capabilities through leadership and management development by the management of the sector. However, the study had its share of limitations. Only top level management was targeted and other employees were left out. The study was also done in food and beverage processing firms. There is a need to conduct the study in a different context in the manufacturing industry. The use of subjective performance measures and use of cross sectional research design may limit generalization of the study results. Use of multiple informant approach, use of other players in the manufacturing industry, inclusion of other study variables and use of a longitudinal study design, may enrich the field of marketing. Replication of this study by examining the relationship between Marketing Strategies, Firm characteristics and Customer perception could serve as a basis for future research.