Moderating effect of environmental uncertainty on relationship between marketing strategies and competitive advantage of selected insurance firms in Kenya

Abstract

Most of insurance companies have failed to effectively gain competitive advantage over their rivals as a result of lack of appropriate marketing strategies coupled with environmental uncertainty. This is the problem that this study sought to explore. This is because success of any organization is manifested in attaining a competitive position or series of competitive positions. The general objective of the study was to establish the effect of marketing strategies and environmental uncertainty on competitive advantage of insurance firms in Kenya. The study was guided by the following objectives: to establish the effect of marketing strategies (promotional marketing strategy, customer relationship marketing and place marketing strategy) on competitive advantage of insurance firms in Kenya and to determine the moderating effect of environmental uncertainty on relationship between marketing strategies and competitive advantage of insurance firms in Kenya. The study was guided by the following theories; marketing mix theory and theory of push and pull. This study adopted a descriptive survey research design. The target population in study was 138 branch managers of selected insurance companies within Nairobi County. The sample size for the study was 88 branch managers of selected insurance companies within Nairobi County. The study used primary data which was collected through selfadministered questionnaires. The drop and pick method was preferred for questionnaire administration so as to give respondents enough time to give well thought out responses. The researcher personally administered the research instruments to the respondents. Data was analyzed by descriptive statistics such as frequencies, percentages, mean score and standard deviation were estimated for all the quantitative variables and information presented inform of tables. Inferential data analysis was done using regression and correlation analysis. The study found that product marketing strategy (β=0.812 and p<0.05), customer relationship marketing (β=0.712 and p<0.05), and place marketing strategy (β=0.568 and p<0.05) had significant effect on competitive advantage of insurance firms in Kenya. The study further established that environmental uncertainty had a significant moderating effect on relationship between all the dimensions of marketing strategies (product marketing strategy β=0.871 and p<0.05, customer relationship marketing strategy β=0.803 and p<0.05, and place marketing strategy competitive advantage of insurance firms in Kenya β=0.713 and p< 0.05. The study concluded that product marketing strategy,customer relationship marketing and place marketing strategy positively and significantly affected competitive advantage of insurance firms in Kenya. The study also concluded that environmental uncertainty significantly moderated the relationship between marketing strategies and competitive advantage of insurance firms in Kenya. The study recommends that insurance companies in Kenya should develop more focused marketing and sales campaigns this will enable enables marketers to plan marketing programs and campaigns and closely monitor results using skills they already have.