| dc.description.abstract | Product differentiation involves creating a product that is perceived unique thus making it more
attractive to a particular target market as compared to others. Different MFIs which encompass a
wide range of these financial services vary in legal structure, mission, and operations. MFIs offer
these financial services to clients who do not have access to mainstream banks or other formal
financial service providers. Due to change in business environment where the marketplace is
increasingly competitive and the rate of innovation is rising, together with the pressure of the
emergence of global knowledge-based economy, it has dawned on MFIs that product
differentiation strategies is their key asset . The study sought to determine how Deposit Taking
Microfinance institutions in Kenya could achieve sustainable competitive advantage through
product differentiation strategies. This research adopted a survey design where the population of
interest was all the six registered Deposit Taking Microfinance institutions in Kenya. The study
carried out a census of six registered Deposit Taking Microfinance institutions Kenya. A
questionnaire was used as primary data collection instrument which was divided into two parts.
The data was then summarized, coded and tabulated. Descriptive statistics means and standard
deviation were used to analyze the data. Data presentation was done by the use of pie charts,
bar charts and graphs, percentages and frequency tables for easy of understanding and
interpretations.
The study concluded that Deposit Taking Microfinance institutions in Kenya offer different
products to the market including loan facilities, training, voluntary savings, fund transfer
services, insurance services and effective delivery systems such as ATMs. Deposit Taking
Microfinance Institutions therefore differentiate its products through offering services such as
loans, savings, money transfers, insurance services, and other financial services to low-income
earners in both rural and urban areas. The study concluded that product differentiation strategies
had been effective in Deposit Taking Microfinance institutions to a very great extent as it had
enabled them to achieve competitive advantages as it had allowed the MFIs to target specific
populations in the market, offer financial services fast and speedily, improve performance, and
improve financial quality, responsiveness, availability and ease of integration. | en |
