Influence of Contemporary Marketing Practices on Customer Satisfaction Among Commercial Banks in Kenya

Abstract

Banking is a significant economic driver for any country therefore its performance in terms of satisfying customers is considered a necessity for growth. The study investigated the influence of contemporary marketing practices (CMP) on customer satisfaction among banks in Kenya. Feedback of the study established that interaction marketing was adapted to a large extent through the involvement of some individuals across functions and levels in the firm. Interactive marketing was significant influence customer satisfaction at a great extent. Also, the output established that digital marketing was adopted to a great extent through the promotion of brands to connect with potential customers using the internet was adopted at a great extent. Other respondents also reported that Database Marketing Through marketers relying on information technology to create relationships and the consumers have a role in relaying information sharing was at a moderate extent. However, some respondents reported that Network Marketing through Information sharing and the existence of relationships among customers, distributors, suppliers, competitors were adopted at a small extent. The output was in collaboration with the existing literature. Interactive marketing activities are based on face-to-face modalities that enhance social processes and relationships between the seller and the potential buyer. The relationships are considered formal and also informal depending on the needs of the customer. The relationships are mutually beneficial to one another and guarantee functional benefits to all (Coviello et al, 2017). According to Salaun 2011, interactive marketing and customer satisfaction are mutually exclusive events that are explored by both the seller and the buyer through trust, familiarity, personalization of service as well as information quality. Feedback of the study revealed the coefficient of determination R2 is 0.686 indicating that the model explained 68% of customer satisfaction among banks in Kenya. It also shows digital marketing, database marketing, interactive marketing, and network marketing explained 68% of customer satisfaction among commercial banks in Kenya thus being significant for decision making. The study recommends that staff appraisal on best practices that enhances customer satisfaction. The banks should also be consistent in conducting customer surveys for them to package and offer them services that satisfy their needs promptly.