| dc.description.abstract | Banking is an essential service in an economy. The stability of a country's economy is closely
related to the soundness of its banking system. Literature links bank performance with market
orientation strategies. Strategy must match a firm's strength to its competitive environment. It is
not clear why banks operating in the same environment with almost equivalent asset baserecord
more profits while others make losses. This calls for an evaluation of themarketing strategies
involved. The purpose of this research therefore was to study the effect of market orientation
strategies on performance of commercial banks in Kisumu. Specific objectives of the study were
to determine the relationship between customer-oriented, competitor-oriented and productoriented
strategy against performance of commercial banks in Kisumu. The study was guided by
a conceptual framework where the dependent variable was performance of commercial banks
while the independent variables were market orientation strategies. The study adopted both
descriptive and correlation design. The population was 78 employees which included three
representatives from each of the 26 banks in Kisumu. Saturated sampling was utilized. The study
utilized both primary and secondary data. Primary data was collected using questionnaires while
secondary data was obtained through review of published financial statements. Experts' opinion
was used to test for reliability and validity. Descriptive, analysis of the study revealed that
customer-oriented and product-orientedstrategies were positively correlated to performance and
significant while competitor-orientedstrategy was negatively correlated to performance and not
significant. Regression results revealed that customer orientation (Pl=O.551, p<O.05) and product
orientation (P3=O.381, p<O.05) were positive and significant predictors of performance while
competitor orientation (~3=;-O.216, p<O.05) was negative and significant predictor of
performance. The three market orientation variables accounted for 46.3% of the variations in
performance. The study concludes that a positive relationship exists between customer-oriented,
product-oriented strategies and performance while the inverse exists between competitororiented
strategy and performance. The study recommends the adoption of customer-oriented
and product-orientedstrategies as they are considered to positively influence performance;
further, competitor-oriented strategyshould be discouraged as it influences performance
negatively. Future researchers can adopt other methodologies in the same area of research. | en_US |
