Strategies adopted by commercial banks in Kenya to manage service quality

Abstract

In order to keep up with the competition and changing consumer needs and wants in the competitive business environment, Commercial Banks need to use effective strategies in managing service quality among customers. Changing consumer needs and business environment has necessitated Commercial Banks to adopt strategies to survive hence attracting and retaining customers. Adoption of effective strategies promotes quality service delivery in the industry hence social economic developments in Kenya. Firms should formulate, and implement strategies to enable them seize strategic initiatives and maintain a competitive edge in the market (Porter, 2004). The competitive aim is to provide satisfactory customers service. The research objectives of the study were; to determine the strategies adopted by Commercial Banks in Kenya to manage service quality for customers and to establish the effectiveness of the strategies used by Commercial Banks in Kenya to manage customer service quality. The study population consisted of 43 Commercial Banks operating in Kenya. The descriptive study method was adopted to analyze data. The study established that quite a number of strategies that are used by commercial banks in Kenya involve high costs that make it difficult for commercial banks in Kenya to use them frequently. Efficiency and effectiveness is the core drive of commercial banks in Kenya both in the domestic and international markets. The study found out that quite a number of strategies used by commercial banks operating in Kenya are applied ignorantly without adequate knowledge and understanding of the target market. Therefore, this study recommends that commercial banks operating in Kenya should embrace strategic thinking practices for their survival in the dynamic and competitive business environment