Market Development Strategies and Market Performance of Small and Medium-Tiered Deposit-Taking Saccos in Kenya

Abstract

Purpose: To explore the effect of market development strategies on the market performance of small and medium-tiered deposit-taking SACCOs in Kenya

Methodology: This proposed study utilized the positivism research philosophy and adopted a descriptive research design. A census of all the 141 small and medium deposit taking-SACCOS was conducted. Data was collected using questionnaires which were physically or electronically administered to the CEOs or their assistants who were the respondents in this study. Data analysis utilized descriptive and inferential statistics which were used to deduce the nature and strength of the relationship between variables. Inferential analysis yielded correlation and regression outputs which are best in determining relationships and prediction among variables. Key correlation and regression analysis techniques such as Pearson’s product moment correlation (r) and the co-efficient of determination (r²) were utilized. The analysed data was presented using tables, charts and graphs.

Findings: The findings indicated that market development strategies have a positive and significant effect on market performance of small and medium-tiered deposit-taking SACCOs in Kenya (β=0.736, p=0.000). This implies that changes in 1 unit of the aspects related to market development strategies leads to a change in market performance of small and medium-tiered deposit-taking SACCOs in Kenya by 0.736 units. Hence rejection of the null hypothesis that market development strategies are not statistically significant to the market performance of small and medium tiered deposit-taking SACCOs in Kenya.

Unique contribution to theory, policy and practice: The study findings established that there is a statistically significant effect of market development strategies on the market performance of small and medium-tiered deposit-taking SACCOs in Kenya. The study thus concluded that relationship between market development strategies and market performance is statistically significant. However despite of the effect being statistically significant, study also found out that in approximately 65% of the small and medium deposit taking SACCOs market development strategies such as new market segment and targeting new beneficiaries did not optimally support market performance at mean scores of 3.69 and 3.78 respectively. The study thus recommend that small and medium deposit taking SACCOs should invest on strategies such as relationship marketing and opening up new branches which had mean score of 3.92 and 3.88 respectively, in order to excel in market performance