QUALITY DIFFERENTIATION STRATEGIES: IMPLICATIONS FOR EDIBLE OILS MANUFACTURING FIRMS IN KENYA

Alice Ngele Mwazuna

Abstract


The study sought to establish the effect of quality differentiation strategies (product performance, conformance, and reliability) on the performance (sales volume, profitability, and market share) of edible oils manufacturing firms in Kenya. A causal research design was adopted for the study which was underpinned by the economic theory of product differentiation. The target population was 104 middle and top-level managers from the marketing departments of the edible oils manufacturing firms in Kenya. Complete enumeration was used to include all 104 respondents as the study’s sample size. Primary data was collected using a structured questionnaire. Descriptive and inferential analysis was conducted using SPSS version 23 and the results were presented in table forms. The results revealed that quality differentiation strategies had a positive and significant effect on the performance of the edible oils manufacturing firms in Kenya with p values 0.001 < 0.05. The study recommended that manufacturing firms should apply all the quality differentiation strategies and continuously conduct market research to identify the quality needs of the customers in order to implement strategies that will lead to quality products.

 

Article visualizations:

Hit counter


Keywords


quality differentiation strategies, firm performance, product performance, conformance, reliability

Full Text:

PDF

References


Adio, A. I., & R. Bananda, A., Eluka, J. C. (2018). Product Differentiation and Evidence from the Nigerian Telecommunication Sector. International Journal of Management and Marketing Systems. 13(4), 23-39. https://doi.org/10.46609/IJMMS.9712

Anderson, S. P., De Palma, A., & Thisse, J. F. (1992). Discrete choice theory of product differentiation. MIT press. DOI: 10.4236/psych.2012.38082

Beath, J., & Katsoulacos, Y. (1991). The economic theory of product differentiation. Cambridge University Press. Retrieved from https://www.cambridge.org/core/books/economic-theory-of-product-differentiation/D4C87F7B320A014DE2B87F4AF4547ED3

Bos, I., Marini, M. A., & Saulle, R. D. (2020). Cartel formation with quality differentiation. Mathematical Social Sciences, 106, 36-50. http://dx.doi.org/10.1016/j.mathsocsci.2020.01.013

Chin, K. S., & Sofian, S. (2011). The Impact of human capital and total quality management on corporate performance: a review. Interdisciplinary Journal of Contemporary Research in Business, 3(3), 1091-1100. http://dx.doi.org/10.3844/ajassp.2013.1214.1223

Davcik, N.S. and Sharma, P. (2015), "Impact of product differentiation, marketing investments, and brand equity on pricing strategies: A brand level investigation", European Journal of Marketing, Vol. 49 No. 5/6, pp. 760-781. https://doi.org/10.1108/EJM-03-2014-0150

Dirisu, J. I., Iyiola, O., & Ibidunni, O. S. (2013). Product Differentiation: A Tool of Competitive Advantage and Optimal Organizational Performance (Publication Number19044) (A Study of Unilever Nigeria Plc). Department of Business Management, Covenant University, Ota, Nigeria, 9(34), 258-281. https://doi.org/10.19044/esj.2013.v9n34p%25p

Hajjat, F., & Hajjat, M. M. (2014). The effect of product quality on business performance in some Arab companies. Journal of Emerging Trends in Economics and Management Sciences, 5(5), 498-508. Retrieved from https://hdl.handle.net/10520/EJC163070

Kenya Association of Manufacturers. (2018). Manufacturing in Kenya Under the ‘Big 4 Agenda’ A Sector Deep-dive Report. Nairobi: Kenya Business Guide. Retrieved from https://kam.co.ke/kam/wp-content/uploads/2018/10/KAM-Manufacturing-Deep-Dive-Report-2018.pdf

Kibithe, T. W., & Chebii, W. C. (2018). Influence of service quality differentiation strategy on customer loyalty in commercial banks within Nakuru municipality. Journal of Strategic Management, 2(2), 62-82. https://doi.org/10.1080/09537325.2014.925106

Kotler, P., & Keller, K. (2011). Marketing management 14th edition. Prentice Hall. Retrieved from https://www.abebooks.com/9780132102926/Marketing-Management-14th-Edition-Kotler-0132102927/plp

Le, P. B., & Lei, H. (2018). The effects of innovation speed and quality on differentiation and low-cost competitive advantage: The case of Chinese firms. Chinese Management Studies. 12, 2, 305-322. https://doi.org/10.1108/CMS-10-2016-0195

Molina-Azorín, J. F., Tarí, J. J., Pereira-Moliner, J., Lopez-Gamero, M. D., & Pertusa-Ortega, E. M. (2015). The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry. Tourism Management, 50, 41-54. https://doi.org/10.1016/J.TOURMAN.2015.01.008

Namara, P. (2014). The Effect of Product Quality on Organisational Performance of the Beverage Industry in Uganda: A Case Study of Nile Breweries Limited (Publication No.) (Doctoral dissertation, Uganda Martyrs University). Uganda Martyrs University. Retrieved from http://hdl.handle.net/20.500.12280/1016

Njeka, M. N., Okello B. & Otinga, H. N. (2019). Influence of product differentiation strategy on the growth of supermarkets in Kakamega County. The Strategic Journal of Business & Change Management, 6 (2), 1100-1109. https://doi.org/10.53819/81018102t6044

Odhiambo, A. L. (2018). Product Differentiation, Customer Loyalty and Market Share in the Oil Marketing Industry in Kenya. (Publication no.104560) (Master’s Thesis, University of Nairobi) University of Nairobi library repository. Retrieved from http://hdl.handle.net/11295/104560

Salah, F., Flath, C. M., Schuller, A., Will, C., & Weinhardt, C. (2017). Morphological analysis of energy services: Paving the way to quality differentiation in the power sector. Energy Policy, 106, 614-624. http://.doi.org/10.1016/j.enpol.2017.03.024

World Bank. (2014). Kenya economic update: Accelerating growth and poverty reduction in the Kenya. The World Bank. Retrieved from https://www.worldbank.org/en/country/kenya/publication/kenya-economic-update-keu




DOI: http://dx.doi.org/10.46827/ejmms.v8i3.1609

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Alice Ngele Mwazuna

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2017-2023. European Journal of Management and Marketing Studies (ISSN 2501 - 9988) is a registered trademark of Open Access Publishing GroupAll rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.