EFFECTS OF DIFFERENTIATION STRATEGY ON CUSTOMER LOYALTY AMONG PHARMACEUTICAL COMPANIES IN NAIROBI COUNTY, KENYA

Rhoda Wangui Gakuya, Nixon Kagutha Njue

Abstract


The competitive global marketplace has compelled organizations to transform themselves in the way they conceptualize and conduct business. Pharmaceutical firms have been forced to think and act as global enterprises as they face the economic, technological, and market challenges of the modern era. It should be noted that some firms tend to see sustainable competitive advantage as the enabler of superior profitability. The study objective was to establish the effect of differentiation strategy on customer loyalty among Pharmaceutical companies in Nairobi County. The research was carried out through descriptive survey design. This design refers to a set of methods and procedures that describe variables. The research targeted 119 pharmaceutical firms in Nairobi County, dealing with manufacturing and distribution of drugs as listed in the Kenya medical directory. The sample size was computed using 30% of the target population which gives a sample size of 35.These 35, were randomly selected from the list of 119 pharmaceutical companies. The study used questionnaires as an instrument of collecting data. From the results, all the measurers of differentiation strategy were found to have effect on the customer loyalty among pharmaceutical firms in Nairobi County. Differentiation strategy had a positive effect on customer loyalty and it was a good indicator that increases in differentiation strategy improves the customer loyalty among pharmaceutical firms in Nairobi County. This meant that there is need to invest resources in differentiating products to effectively attract loyal customers in the pharmaceutical firms in Nairobi County. From the study it recommends that firms using the differentiation should concentrate on investing in and developing such things that are distinguishable and which customers will perceive. In addition, what makes an organization different from a competitor’s should be established.

 

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effects, differentiation, strategy, customer loyalty, pharmaceutical companies

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