Influence of Service Delivery Strategies on Customer Retention Among Commercial Banks in Nairobi County, Kenya
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Date
2023Author
Wesonga, Erastus P
Type
ThesisLanguage
enMetadata
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This study sought to analyze the impact of service delivery techniques on customer retention for commercial banks located in Nairobi City County, Kenya. Two theoretical frameworks were utilized: Hierarchical Service Delivery Strategies Theory and Social Exchange Theory. This research employed a descriptive cross-sectional research approach to examine the influence of service quality delivery on customer retention at five distinct commercial banks, in order to provide useful insight for practice, policy-makers, and academia alike. An investigation was carried out among 42 commercial banks located within Nairobi City County in Kenya with 126 respondents participating. Data was gathered through questionnaire, including conducting an initial test to test its validity and reliability prior to beginning our inquiry. Prior to conducting the main study, pretests were used to validate questionnaires and gauge reliability using Cronbach alpha (a). Data Analysis encompassed both descriptive and inferential statistics, specifically through Pearson Correlation analysis and multiple regression modeling. Research findings included a positive correlation of 0.979 which is statistically significant at 0.01 level. This finding suggests a highly favorable correlation between service delivery tactics in banking and customer retention strategies among commercial banks. More specifically, higher pricing techniques were linked with enhanced client retention rates. Multiple regression study revealed a statistically insignificant relationship (0.067) between marketing techniques and client retention in commercial banks. Conversely, this study identified an encouraging and statistically significant relationship (0.026) between service delivery strategies and customer retention in commercial banks operating within Nairobi County. Overall, this research illuminates the significant effect of service delivery strategies - specifically pricing policies - on customer retention in commercial banking in Nairobi City County Kenya. Our findings offer important implications for practical applications, policy deliberation discussions and future academic investigations within this sector.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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