Effects of Channel Distribution Strategy on Customer Satisfaction among the Alcoholic Beverages Distributors in Mombasa County, Kenya
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Date
2016-11
Authors
Maina, Peter Macharia
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
With the globalization and technological advancement rapidly engulfing the developing
economies a lot of changes are taking place in business circles. Local industries are slowly being
marginalized by multinational companies and franchised sectors. These trends have not spared
local alcoholic beverages manufacturers and distributors. Giant distributors are slowly edging out
smaller and medium enterprises because of their bargaining power, product line dominance,
price control and their ability to perfect their marketing mix strategies. However, giant
companies lackeconomic gripe of geographical and demographical trends in their areas of
operations. Customers are so much sophisticated that they mostly dictate what customized
products they want and want it delivered at the door-steps. Alcoholic beverage distributors in
Mombasa county have not been spared either by these economic surges and thus this study wish
to address how they can go round this common denominator-competition, by addressing
distribution strategies as means of addressing customer dissatisfaction. The general objective of
this study was to analyze the effects of channel distribution strategy on customer satisfaction
among the alcoholic beverages distributors in Mombasa County. Specifically, the study sought
to:determine the effect of retail distribution strategy on customer satisfaction among the
alcoholic beverages distributors in Mombasa County, determine the effect of depot distribution
strategy on customer satisfaction among the alcoholic beverages distributors in Mombasa
County, establish the effect of online distribution strategy on customer satisfaction among the
alcoholic beverages distributors in Mombasa County and to determine the effect of direct
distribution strategy on customer satisfaction among the alcoholic beverages distributors in
Mombasa County. The study was guided by Theory of distribution channel, Depot theory and
System theory. The target population was545 distributors, retailers, wholesalers and bars owners
in MombasaCounty who were also the respondents. The study adopted a stratified sampling
technique to select the sample. The strata consisted of distributors, wholesalers, retailers and bar
owners. Once the strata were established, simple random sampling was used to pick respondents
fr+om each stratum. The total number of respondents was 225.The study used questionnaires,
containing both open ended and closed ended questions to obtain primary data.The
questionnaires wereself-administered. The instruments were pretested with a sample of 22
respondents which was 10% of the sample. The reliability of the instrument was estimated using
Cronbach’s Alpha coefficient. This research undertook a content validity technique and a pilot
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test was done by administering the instrument to ensure congruence between field objections and
the phenomena being researched. This ensured that all facets under the study were well covered.
For research data analysis and presentation, data was collected, edited and coded to ensure
consistence. Descriptive statistics including the means and standard deviations were used to
analyze the data and capture the characteristics of the variables under the study. Inferential
statistics were used to test the nature and magnitude of the relationship between dependent and
independent variables. Simple regression and Pearson’s correlations was computed to determine
the nature and the strength of the relationship among the variables. The analyzed data was
presented in form of tables and charts.The study concluded thatretail distribution strategy, depot
distribution strategy, online distribution strategy and personal distribution strategy have an active
and direct role in customer satisfaction.Based on the research findings, the study recommends
that the alcoholic beverages sector should focus on customer satisfaction by adopting appropriate
distribution strategies. Also, the study recommends that distributors of alcoholic beverages
should choose a distribution strategy that bests satisfies their customers. Further, the study
recommends that distributors of alcoholic beverages should use a combination of more than one
distribution strategy. This will help to improve the service provision to the customers.
Description
Effects of Channel Distribution Strategy on Customer Satisfaction among the Alcoholic Beverages Distributors in Mombasa County, Kenya