Determinants of branding strategy within the major commercial banks in Kenya

Abstract

In the ever changing world where customers’ preferences and behavior in making decisions about which product to buy or service to use the selling company has to build and retain their brand in a way which makes it essential to the customer. Customers respond differently to company and brand images. Brand ‘image’ is defined as perceptions about a brand as reflected by the brand associations held in consumer memory (Keller, 1993). Brand identity is the way a company aims to identify or position itself. The brand identity clearly specifies what the brand aspires to stand for and has multiple roles (Konecnik and Go, 2008). In this study, descriptive research design in form of a survey will be used. Descriptive research portrayed an accurate profile of persons, events, or situations (Robson, 2002). Survey allows the collection of large amount of data from a sizable population in a highly economical way. It allowed the researcher to collect quantitative data, which was analyzed quantitatively using descriptive and inferential statistics (Saunders et al, 2007). The population of interest of this study was the major commercial banks that are operating in Kenya. There are five major commercial banks which includes Kenya commercial bank, co-operative bank, standard chartered, Barclay’s banks and Equity bank. Questionnaire was be designed to identify the establish the determinants of branding strategy amongst the major commercial banks in Kenya.Before processing the responses, the completed questionnaires was be edited for completeness and consistency. Descriptive analysis was be employed; this was include the use of weighted means, standard deviation, relative frequencies and percentages. The data was then be coded to enable the responses to be grouped into various categories. Descriptive statistics was be used to summarize the data. This includes percentages and frequencies, tables and other graphical presentations as appropriate was be used to present the data collected for ease of understanding and analysis. The most important factors for the customers brand choice of bank were related to the awareness, associations and attitude towards the brand of the bank. A personal relationship with the customers was the most important part according to the findings in this research. However, the bank sector of today is moving further away from a personal relationship with their customer. The number of electronic touch points has increased in Kenya over the last vi decade such that even deposits can be undertaken through automated teller machines. Internet banking is also on the rise. This presents the risk that customers may feel less connection and loyalty to the bank, as the personal relationship disappears. The need for marketers to alter perceptions and create consumer preference for a particular bank calls for similar branding strategy employed in traditional packaged goods. Banks should make customers feel something about doing business with them (Alvarez, 2001).However since the banks are shifting towards a more anonymous customer orientation, the theory is not supported. The results from this study point out that the most important factors when it comes to brand association are the employees and the relation created between businesses and the employees at the bank.