Relationship Marketing Strategies and Performance of Microfinance Institutions in Nairobi City County, Kenya
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Date
2025-10
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Publisher
Kenyatta University
Abstract
Micro-financing institutions play a key role in enhancing a country’s economic growth and also in assisting the country work toward achieving vision 2030. In spite of the great role that micro finance institutions play, they have been facing performance challenges such as reduced market share, reduced dividends pay-out, employee dissatisfaction and customer dissatisfaction. The study was designed to assess how relationship marketing strategies affect the performance of microfinance institutions in Nairobi City County, Kenya. Its particular objectives included to evaluate the influence of trust, communication, cooperation, and complaint management on performance of these institutions in Nairobi City County. This study was based on five theories: commitment-trust theory, relationship marketing theory, stakeholder theory, balanced scorecard model and social exchange theory. The study utilized both explanatory and descriptive research designs. Its target population consisted of 172 staff members from 43 deposit-taking microfinance institutions situated in Nairobi County. The primary focus of analysis was on microfinance institutions within Nairobi City County, with the observation unit being four senior staff members from each institution who are knowledgeable about relationship marketing. Data was gathered using a semi-structured questionnaire, utilizing the drop and pick later method. Prior to starting the primary data collection process, a feasibility study was carried out in Nakuru town to assess the validity and reliability of the questionnaire. Content and construct validity was ensured while Cronbach Alpha was employed for testing reliability and the cut-off point of 0.7 was considered. All qualitative and quantitative data was systematically gathered for the purposes of the study. Qualitative data analysis was performed by use of content analysis and displayed through themes and narratives. The study employed both descriptive and inferential statistics to analyze quantitative data. Its results were illustrated with visual representations, including tables, charts, and graphs. The results depicted a statistically significant relation between trust (β = .245, Sig. = .031
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Business Administration (Marketing Management) of Kenyatta University, October 2025.
Supervisor.
1. Dr. Anne Muchemi