Article Published In Vol.9 (May-June 2021)

Influence of Competitive Strategies on Customer Loyalty: A Case of Kenya Commercial Bank South Sudan

Author : Obola, J.O, Kwendo, E. and Otuya, W.

The study sought to find out if and how cost leadership, differentiation and focus strategies influence customer loyalty in Kenya Commercial Bank South Sudan (KCBSS). Cost-leadership, differentiation, and focus are considered independent variables of this study and customer loyalty is considered as the dependent variable. The population of staff at KCB South Sudan was 286. The study adopted stratified and simple random sampling to select the sample size for the staff; whereby 15% of the staff population were chosen from each of the two strata; giving a sample size of 43 with Kenyans being 8 while South Sudan nationals being 35. Correlation and regression analysis of independent and dependent variables were made in this study. The study found that competitive strategies influenced customer loyalty. The most dominant competitive strategy was the focus strategy. The study concluded that customer loyalty is influenced by the three generic strategies, that is, cost leadership, differentiation and focus strategy. The study recommends that the management of KCBSS should improve more on these competitive strategies if they wish for the customer loyalty levels to improve.

Keywords:  Customer loyalty, Competitive Strategy, Customer Satisfaction, Industry, Strategy, Trust