EXPERIENTIAL MARKETING STRATEGIES, FIRM SIZE AND MARKETING PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Abstract

The banking industry is crucial for global economic growth, but its marketing performance has been slowing due to inadequate diversification strategies, changing customer needs and market dynamics, technological advancement, and unforeseen global crises highlighting persistence of loyalty and satisfaction gaps in the industry. Experiential marketing strategies is critical in addressing market dynamics and change in consumer needs however, its impact on marketing performance of commercial banks remains contentious. Although extensive studies globally have examined marketing performance in commercial banks, a consistent research gap exists in linking experiential marketing with marketing performance in terms of timeliness in solving customer complaints, new customers’ attraction and addressing customer churn. This study analyses the effect of experiential marketing strategies on marketing performance of commercial banks in Kenya and how firm size moderate this effect. The study was anchored on Relational Marketing Theory, Commitment Trust Theory, Dynamic Capability theory, and Technological Acceptance Model. The study employed cross-sectional survey design. The study population was 39 commercial banks in Kenya, targeting 195 selected bank employees drawn from experiential marketing, relationship marketing, digital services, information technology, and commercial banks. A questionnaire was employed to collect quantitative data. SPSS was used for data analysis involving both descriptive and inferential statistics. Regression results indicated that emotional marketing strategies significantly influenced marketing performance of commercial banks. Likewise, relational marketing strategies was found to be statistically significant on marketing performance. Moreover, the regression of coefficients of sensory marketing strategies and intellectual marketing strategies statistically significantly influences marketing performance of commercial banks. Finally, firm size moderated the effect of experiential marketing strategies on marketing performance of commercial banks indicating that the impact of experiential marketing strategies on the performance of commercial banks in Kenya becomes stronger when the firm is larger in size. A conclusion was thus made that emotional marketing strategies significantly influenced marketing performance of commercial banks in Kenya. Relational marketing strategies such as better customer services positively and significantly influenced performance of commercial banks. Intellectual marketing strategies such as thinking, problem solving and information gathering fostered marketing performance of commercial banks. In addition, firm size significantly moderated the effect of experiential marketing strategies on marketing performance of commercial banks. The study suggests banks should invest in training programs that develop emotional intelligence, enhance storytelling techniques, and encourage a customer-centric culture. By embedding ethical principles and transparency into marketing strategies, banks can differentiate themselves in a competitive market, foster stronger connections with customers, and enhance overall marketing performance. Research across the banking sector is recommended for comparable findings. Exploring experiential marketing strategies practices beyond customer trust and technology is also recommended. The application of Relationship Marketing Theory to experiential marketing strategies in Commercial Banks underscores the importance of creating long-term, value-driven interactions with customers rather than relying solely on transactional exchanges. Similarly, the study findings contribute to the postulations of the Commitment Trust Theory by Morgan and Hunt (1994) that is premised on the elements that anchor the interactions that include commitment, customer relationship and trust. Together, these approaches align with the theory’s assertion that trust and commitment lead to improved relationship quality, customer retention, and ultimately, better marketing performance. Thus, the Commitment-Trust Theory supports the idea that effective experiential marketing fosters enduring customer relationships that drive sustainable competitive advantage in the Commercial banks.