EFFECT OF NICHE MARKETING ON PERFORMANCE OF INTERNATIONAL COURIER COMPANIES IN KENYA

Abstract

CCK (2022) found that 11.8% of the consumers were based in Nairobi, while 8.2% and 5.5%, respectively, were from Mombasa and Laikipia. The findings revealed that the average level of satisfaction with private courier service providers was 67%, as determined by the assessment of four specific qualities (service quality: 74%; complaint resolution: 61%; customer service quality: 65%; response time: 68%). There exist deficiencies in the provision of postal and courier services, as well as limited accessibility to these services. In order to thrive in today's fast-paced and fiercely competitive global market, the courier services business must, first and foremost, innovate on a consistent basis. The general objective of this study was to establish the effect of niche marketing on performance of international courier companies in Kenya. The study was guided by the following objectives: to assess the effect of concentrated marketing on performance of international courier companies in Kenya, to examine the effect of customization on performance of international courier companies, to evaluate the effect of positioning on performance of international courier companies and to investigate the moderating effect of organizational factors on niche marketing and performance of international courier companies. The hypothesis of the study was there is no significant relationship between concentrated marketing and performance of international courier companies; There is no significant relationship between positioning and performance of international courier companies; There is no significant relationship between customization and performance of international courier companies and Organizational factors have no significant moderating effect on the relationship between niche marketing and performance of international courier companies. The study adopted an explanatory research design using survey method. The study targeted an estimated population of 55 international courier companies in Kenya by targeting the marketing managers. The researcher used purposive sampling technique through census. Data was collected from primary sources using questionnaires. The questionnaires were pre-tested with five national courier firms within Kisumu town. This study used both descriptive statistics (percentages, frequencies, means and standard deviation) and inferential statistics (regression and Pearson’s correlations) to analyze quantitative data. While conducting the study, the researcher observed ethical issues. The results from multiple linear regression indicated that concentrated marketing (B1=0.384, P=0.003), Customization (B2=0.197, P=0.024); Positioning (B3=0.345, P=0.000) have positive and significant effect on performance of international courier companies in Kenya. Niche marketing significant accounted for 66.4% (R2=0.664) variance in organizational performance. Organizational factors had significant moderating effect on the relationship between niche marketing and organizational performance. The hierarchal regression moved r square from 66.4% (R2=0.664) to 78.8% (R2=0.788) significantly explaining addition 12.4% change in r square. Therefore, the study concluded that organizational factors moderate the relationship between niche marketing and performance of international courier companies. The study further recommended that management of courier companies should choose specific market segments for some of its service offerings. The study further recommends that the management should enhance seeking of feedback from their clients on their satisfaction level of their services. Courier companies should be marketing- oriented as this will enable the companies to get insights on the actual needs and wants that customers have. Courier companies should also embrace transformational leadership since it enables them to determine the choice of market concentration, positioning, customization, and allocation of resources. The study's findings will provide the management of international courier companies with valuable information for developing and executing corporate niche strategies. The results of the research would be helpful to the government in creating policies to safeguard the public as well as the participants in the business. The findings of this study may serve as a jumpingoff point for future research, and the findings may even stimulate the development of other studies in this field.