Marketing Strategies, Consumer- Based Brand Equity, Organizational Characteristics and Performance of Insurance Companies in Kenya

Abstract

The broad purpose of the study was to establish the influence of marketing strategies on performance of insurance companies in Kenya. The study also sought to establish the moderating effect of organizational characteristics and the mediating effect of consumer based brand equity on the relationship between marketing strategies and organizational performance. The study was anchored on Service Marketing Theory, Brand Love Theory and Resource Based View (RBV). The study comprised 51 insurance companies in Kenya. Primary data were collected using a semi-structured questionnaire. The pertinent data were analyzed using descriptive statistics and regression analyses. The results of the study showed that marketing strategies significantly influenced organizational performance (B=.517, t=3.912, p<0.05). The study also found that consumer based brand equity has statistically significant mediating influence on the relationship between marketing strategies and organizational performance (B=.380, t=2.660, p<0.05). Further, the results of the study revealed that organizational characteristics moderate the relationship between marketing strategies and organizational performance (Beta = .385, t = 2.701, p< 0.05). Finally, the joint effect of marketing strategies, organizational characteristics and consumer based brand equity on organizational performance was found to be statistically significant(R2 = .389, p<0.05). The study's findings supported the theoretical claims of service marketing theory, which is based on the idea that marketing, particularly in the service sector, is accomplished by careful consideration of customer characteristics and the provision of services that are favored by consumers. The study's results also provide credence to the service marketing hypothesis, which contends that marketing presents difficulties because of the service sector's distinctive and particular qualities. To address this, specific marketing tactics must be created and implemented. The research lends credence to the Brand Love Theory, which contends that when a client connects to a brand and views it as an expression of their self-identity, their connection with that brand will evolve from one of pleasure to one of love. The findings provide a variety of policy and practice implications. Based on the study's results, suggestions are given for policymakers to create and implement best practices, such as the formalization of marketing process rules and the formation of important marketing strategies to boost insurance firms' performance. The study recommends that insurance companies need to exploit brand equity focusing on a strong brand loyalty to enable them achieve high sales and reduce advertising costs. Additionally, practitioners in insurance firms’ should ensure high quality customer service levels since it is crucial for enhancing perceived quality in building strong brand equity. The study recommends that insurance firms should design robust marketing strategies that supplement firm characteristics in order to yield better Performance outcomes. Future studies can be done on other sectors other than insurance and compare the similarities and differences that will be established in these sectors. In addition future studies should consider using longitudinal research design to establish the effects of changes in consumer behavior on marketing strategies and organizational performance. In conclusion, there is a strong relationship between marketing strategies and performance of insurance Companies in Kenya, which is further moderated by organizations’ characteristics and mediated by consumer based brand equity.