Effects of Emotional Marketing Strategies on Marketing Performance of the Retail Banking segment in Kenya
Abstract
Background: The banking industry is crucial for global economic transformation, but its marketing performance has been slowing due to inadequate diversification strategies, changing customer and market dynamics, technological transformation, and unpredicted global shocks. The Covid-19 pandemic and 2008-2009 financial crises disrupted marketing activities, leading to decreased marketing performance of retail banking segment. The study specifically determined the effect of emotional marketing strategies on marketing performance of the retail banking segment. The study was anchored by relational marketing theory.
Materials and Method: Descriptive research designs was adopted. The study targeted 40 commercial banks in Nairobi City County targeting 200 employees. Data was collected using a questionnaire and pilot study done using 10% of the sample population. The study used SPSS for data analysis, including diagnostic tests and hypothesis testing, with a P-value of <0.05 indicating rejection of the null hypothesis, otherwise, fail to reject. Results: Regression results indicated that emotional marketing strategies significantly influenced performance of retail banking segment (r2=.290). It was concluded that emotional marketing strategies significantly influenced marketing performance of retail banking segment in Kenya.
Conclusion: The study suggests banks should invest in training programs that develop emotional intelligence, enhance storytelling techniques, and encourage a customer-centric culture. Exploring experiential marketing strategies practices beyond customer trust and technology is also recommended.
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