influence of strategic practices on customer satisfaction ...ijrbem.com/doc/137.pdfthe objective of...

International Journal of Research in Business, Economics and Management

Vol.3 Issue 3 May-June 2019

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Influence of Strategic Practices On Customer Satisfaction: A Case Study of

Telkom Kenya Limited

BABU Agnes Akumu1 Dr. NZULWA Joyce2

Jomo Kenyatta University of Agriculture and Technology

ABSTRACT

The business environment today is very competitive and therefore the need to provide clients

with products and services that will ensure that they are highly satisfied customer which leads to

them being loyal. The objective of the study was to establish the influence of strategic practices

on customer satisfaction; a case study of Telkom Kenya Limited. Specific objectives were; to

examine the influence of strategy planning, strategy formulation, strategy implementation and

strategy evaluation on customer satisfaction at Telkom Kenya Limited. Exploratory research

design was adopted. Management level employees at Telkom Kenya Limited Headquarters were

targeted. The population targeted was employees. The sample size was selected using the

stratified sampling technique. Questionnaire was the selected tool for data collection and it

comprised of open and closed ended questions. They were administered using the drop and pick

technique. Analysis of quantitative data was done by use of descriptive statistic such as

percentages, mean and Std. Dev. presentation of the information was done using table, graphs

and charts. Content analysis was used in analyzing qualitative data. In order to determine the

strength of the association between the response and the predictor variables, the study conducted

a correlation analysis. Analysis of the impact of strategic responses on satisfaction of clients was

determined by computing multiple regressions. The study established that strategy planning;

strategy formulation; strategy implementation and strategy evaluation significantly and

positively relate with customer satisfaction at Telkom Kenya Limited. The study recommends

the management to have a regular interaction with their clients for the purpose of understanding

the ever changing needs of their clients; the organization should therefore develop effective

strategies by looking and how the organization is griped with challenges and the opportunities

facing the company; this will ensure that the company functions well and be more productive

and therefore increasing their performance. It is important for the management of the

organization to take the needed actions in implementing set strategies such as allocation the

needed resources and designing the business so that it can attain the intended strategies. Because

of transformations in environment of the company thee strategies use in the company become

obsolete and therefore it is important for the management of the organization to review, evaluate

and control execution of the strategies.

Key Words; Customer satisfaction, Strategic Practices, Strategy evaluation, Strategy

formulation, Strategy Implementation, Strategy planning.

Background of the study

Because of the increasing competition in the market, it’ crucial that companies offer goods and

services that are very satisfactory therefore ensuring customers are satisfied which ensure that

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they remain loyal to the company and continue purchasing.

The reason being when a client is very satisfied there is a high likelihood that they will continue

to buy from that particular company that satisfied their needs while a client that isn’t satisfied

will try and find another place where they will be able to fulfill their needs better (Muogbo,

2013). Jones and Sasser (2008) indicated that a client who is loyal to a company is very crucial

in ensuring that the company survives and consequently it requires that the company increases

the demand for their products by comprehending the support provided by the client.

Organization have for a long time struggled to attract and retain clients. The result has been that

companies have invested a lot in having extensive strategies with the aim of increasing intense

and also comprehensive marketing (Auka, 2012). Some organization have embraced these

strategies and invested them into nurturing their own customers as a part of their system.

Because of these particular investments, the initial position of clients as self-driven into a sought

of induced components (Karr, 2012). Companies spend huge sums of money in running those

objectives that aren’t cheap and the outcome is unbalanced production agenda where a lot of

concentration is focused on the procedures of the organization and functions rather than the

investment aspect of it. The advantage of having knowledge of the impact of nature, level and

scope of this aspect which obviously determine nowadays business in a competitive society is

not overrated. Customer satisfaction has remained to be the main focus of researches which

result to the advancement on the same is quite imperative (McKinsey, 2010).

Among the important industries in the world, telecommunication is one of them; this is because

it provides voice communication, data, graphics, and video at speeds that are constantly

increasing. Telecommunication has an influence of the economy of the world and the revenue

from this industry was approximated in the year 2006 to be $1.2 trillion in 2006. Also,

competition is increasing and its intensity too is on the rise. For the purpose of attaining

competitive advantage that is sustainable, it has forced these companies to come up with

strategies tailored towards improving customer satisfaction. Due to this, strategic practices play

an important role in telecommunication industry in enhancing customer satisfaction (Grönroos,

2014).

McDougall and Levesque (2010) established that Malaysian telecommunication service

providers did differentiate themselves highly in terms of services to customers and it has become

very crucial and a significant contributor to satisfaction of clients. Liu (2008) established that

corporate image significantly impress the quality of service, value of clients, client satisfaction

and loyalty of clients in the China Telecommunication sector. Chen (2012) indicated that to build

an image is very crucial in retaining clients in the telecommunication sector in Taiwan. Kim et

al. (2014) did an investigation on the impact of client satisfaction and barrier switching on clients

level of loyalty. The study used 350 respondents and it was conducted in Korea. It was

established that the quality of calls, services that are added value and support of clients

significantly affect level of client satisfaction. Therefore, maximizing client satisfaction should

aim at improving strategic practices which include customer-oriented services. Nigeria has been

leading in Africa in terms of telecom market whereby in the year 2012 in the month of February

they had a total of 92,006,608 subscribers that are active (Nigerian Communications

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Commission, 2012), South Africa is in the 2nd place having active subscribers approximately 60

million. It is a representation of increase in telecom diversity from 0.73% in 2001 to current

68.68%. Because of the explosive rate of growth in the market, there has been intensive rivalry

among the operators of GSM and this has made the need to take part in activities of marketing to

be necessary this is to enable them retain their market share and customers and ensure that these

clients remain loyal. This is very important in the current saturated market and with little chances

of attracting new clients. Because of competition, tariffs have reduced, new and innovative

products have been introduced, advertising blitz, promotional sales have risen and there have

been development of customer services that are innovative. The main aim of all these is to attract

new clients and retain already existing ones (Nigerian Communications Commission, 2012).

The telecommunications sector in Kenya gives information and also communication services

which are voice delivery, data and media via various networks i.e. computer, mobile and

telephone, and television networks. The current view that is dominant is dividing the daily

operations of telecommunication firms to vertical processes of fulfilling services, assurance of

services and billing (Kelly, 2003; TMF, 2005). In Kenya, telecommunication companies such as

the Airtel Company have been striving to penetrate the competitive market by various means.

The company has been rated among the cheapest in provision of service as compared to its big

rivals in the market Safaricom and Telkom Kenya. The company has enhanced its services

through provision of; VAS, free Airtel Money, Prepaid and Post-paid plans, One Network, 3.75G

Network, among others.

Problem Statement

In the current state of business, it is very crucial that clients be satisfied (Deng et al., 2011),

utility by service provider in creating high satisfaction levels is very important in differentiating

products and creation of strong relations with clients. Satisfying customers makes them loyal to

that one particular service provider. Despite the fact that it costs a lot to attain loyalty and

satisfaction of customers, it is still worth because it will generate profits (Anderson, Fornell &

Mazvancheryl, 2014).

In the contemporary business environment change is inevitable. It is therefore necessary for

companies to develop various strategies to ensure that they survive. Among the many strategies

that can be adopted, one of the key strategies is the one concerned with ensuring satisfaction of

customers. Currently companies have the knowledge on the advantaged of customer retention

and striving to understand the reasoning of clients that affect the choice of brand they make and

reduce the arte of turnover (Deng et al., 2011).

The telecom institutes that are specialized face an increased challenge as a result of

globalization, liberalization of the communication market and the variety of opportunities that

are created through the emergence of new technological information. Because of this particular

challenge, Telkom Kenya has to maintain the pace with the changes in technology and market

which are greatly influenced by external factors which cannot be controlled by the company.

Through continuous improvement of products in terms of their taste and preference and

marketing, Telkom Kenya has been able to maintain the pace. The main area where the company

is failing is in having customer care policies that are structured appropriately, lacking strategic

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locations for business and employing employees that are not trained and therefore, they fail to

look into needs of the end customer. Because of the tough competition and failure to handle

clients appropriately, their share in the market dropped by 49% while customer base dropped by

45% because its inception to be the 4th ranked telecomm company in terms of share in the market

and client base (Communications Commission of Kenya, 2015).

Empirical studies include; Dube, Renaghan and Miller (2014) did a study on measuring customer

satisfaction for strategic management. Mitta and Frennea (2010) did a study on satisfaction of

clients: strategic review and guides for managers. Kalpina, Sania and Javed (2011) did a study on

practices of management by HR and satisfaction of clients: the mediating impact of practices of

managing supply chain. It is evident that there minimal evidence on strategic practices and

customer satisfaction. It is against this background that the study sought to establish the

influence of strategic practices on customer satisfaction; a case study of Telkom Kenya Limited.

Objectives of the study

The general objective was to establish the influence of strategic practices on customer

satisfaction; a case study of Telkom Kenya Limited

The following were the specific objectives of the study;

i. To examine the influence of strategy planning on customer satisfaction at Telkom Kenya

Limited.

ii. To assess the influence of strategy formulation on customer satisfaction at Telkom Kenya

Limited.

iii. To determine the influence of strategy implementation on customer satisfaction at

Telkom Kenya Limited.

iv. To examine the influence of strategy evaluation on customer satisfaction at Telkom

Kenya Limited.

Significance of the Study

The study will benefit the management of Telkom Kenya Limited since they will understand the

importance of strategic practices on customer satisfaction. The organization will be able to use

the identified strategic practices to improve customer satisfaction. Policy makers will also

comprehend the impact of strategic practices on satisfaction of clients. They will be able to

devise strategies which encourage the adoption of strategic practices in organizations so as to

ensure customer satisfaction. The findings will be important to researchers and academicians as

they will gain more knowledge on strategic practices and customer satisfaction. It was also act as

a reference point in studies done in the future.

Theoretical Framework

Resource Based TheoryThe RB theory was created by (Wenefeldt, 1984). It’s a technique

through which the strategic advantages of a company are analyzed and presented depending on

examination of various assets combined, skills, abilities and the assets of a company that are not

tangible. The premise that underlies this theory is that companies are distinct in various ways

because the companies have distinct resources that are tangible and others that are intangible and

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the ability of the company to apply the use of those resources differs. Every single company

creates competency for the resources they have and when its development is done appropriately,

they help the company to attain its competitive advantage; (Pearce & Robinson, 2007). Based on

the RB theory, it’s clear that the resources of a company play a very significant role in the

process of strategic implementation. The reason being despite how well the strategies are, if the

resources needed are not available to ensure that the strategies are implemented, the whole

process remains to be just but a plan.

Stakeholders Theory

There are several individuals who contributed towards the creation of this theory and they

include (Friedman & Miles, 2002; Phillips, 2003). This theory provides an approach of multiple

dimensions for the management of strategic enterprise. The theory indicates that there are a total

of 5 groups of shareholders in a firm: what is expected of the firm to perform externally is

represented by 3 who are the clients, the community and the stakeholders while the remaining 2

who are the suppliers, professionals and staff members take part in collaboration with the firm in

planning, designing, implementing and delivering of the products and services of the firm to its

clients (Atkinson et al., 1997). Post (2002), indicate that shareholders could be thought of as

people who are directly or indirectly interested in a particular company. Historically, Freeman

(1984) indicated that shareholders are individuals with the ability to influence attainability of

objectives within a company.

Dynamic Capabilities Theory

Authoring of Dynamic Capabilities Theory was done by Teece (2007), whereby he expanded the

definition of dynamic capability to mean the ability of a company to buffer its propensities both

internal and external in line with the environment that is continuously transforming. Consensus

in areas of strategic management gives a highlight of dynamic abilities as having 3 main

attributes which are; being embedded in the processes of the company, it captures by routines

that have been established in the company and are focused on influencing changes in the

company. Nelson and Winter (1982) provided a framework that can be applied to integrate the

attributes that align the resources of the company and the abilities with its efficiency in

operations. Eisenhardt and Martin (2000) tried to make correlation of resource based theory and

the framework of dynamic capability through the identification of the processes of the

organization and align them with the resources of the company to ensure they are matching or

are stimulating transformation in the market. The dynamic abilities of a company can be

considered to be the ability of developing new knowledge as argued by (Henderson & Cockburn,

1994). They applied the term, 'architectural competence' in increasing competitive advantage.

The most crucial thing for companies that want to attain optimum growth and performance is to

ensure that their assets are tied to their processes and also have management with the ability of

coordinating and reorganizing competencies both the internal and external in an effective manner

to ensure the market becomes successful and therefore ensuring clients are satisfied.

Social Exchange Theory

This theory was created by (Homans, 1958). According to this theory, the relationships among

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human beings are developed using the cost-benefit analysis and comparing alternatives.

The suggestion that was provided by Homans was that when a person thinks that the benefits of a

relationship are less compared to the cost then the individual will decide to leave. It is further

stated that those individuals who give much also try to get much from those individuals and an

individual who gets much is also under pressure to give back as much as they receive. This

relationship of social exchange between two individuals is as a result of mutual exchange

yielding reciprocal pattern of obligation to both parties. The theory of social exchange states that

people have the willingness of continuing with a relationship because they expect that continuing

with it will reward them. People do sacrifice willingly their personal benefits in order to

contribute them to others while expecting that they will gain more in the future. Thibaut and

Kelly (1959) stated that the decision of a person to remain in a relationship is based on

comparing the current and past experience and alternatives they have. Constantly comparing

social and economic results or various interactions with various partners and alternatives they

have, shows the level to which an individual is committed to their present relationship. In the

context of service, in consideration of the level of interpersonal contact required in production of

services, there’re several considerations that could act as disincentive for transformation in

provision of service hypothetically (Barnes, 2007).

The Conceptual Framework

The conceptual framework shows the relationship between the study variables. Figure 2.1 shows

that strategy planning, strategy formulation, strategy implementation and strategy evaluation

influences customer satisfaction.

Strategy Planning

Core value

Mission

Vision

Strategy Formulation

External environment

Internal profile

Long term objectives

Strategy implementation

Resources

Communication

Monitoring

Strategy evaluation

Benchmarking

Performance

measurement

Analyzing Variance

Customer Satisfaction

Repeat purchase

intention

Affective and

cognitive satisfaction

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Independent Variable Dependent Variable

Figure 1: Conceptual Framework

Strategy Planning

In the current style of management that is considered to be modern, strategic quality planning is

considered to be a very crucial feature. The process where a company defines its strategies or

directions and makes decisions on resource allocation in pursuing its strategies is referred to as

strategic planning. It involves the identification of target customers by clustering them depending

on the behaviors they share and determination of the priorities of the customer (Churchill &

Suprenat, 2012).


The believe of majority individuals that to understand the strategies of management or policies of

a company is easy is not true; it needs that there be research done on the way the organization is

griped with challenges and the opportunities they face. There is need for proper evaluation to be

done to determine is the strategies adopted are functioning appropriately. A strategy is a way

through which a policy can be operationally signed for particular objectives and goals. In order

for a firm to function appropriately, and increase it productivity to its optimum, there is need for

the company to implement effective strategies; this will positively affect the sales of the

company (Greenberg, 2011). Dess (2007) indicate that the strategies of management are

inclusive of the analysis, decisions and actions that a company does with the aim of creating

competitive advantage that is sustainable.

Strategy Implementation

Companies need to have in place necessary actions towards the implementation of the

formulated strategies. In order to ensure this, there is need for the leaders to set aside the needed

resources and design the company such that it ensures the strategies are made a reality (Bayode

& Adebola, 2012). It is the duty of the managers to determine the way the company should

compete in order to attain sustainable advantage over a lengthy span of time. This means being

focused of 2 key things; the way the company needs to compete for the purpose of creating

competitive advantage in the market. For instance there is need by managers to determine

whether the organization should produce products and services meeting needs of clients and

allow the firm to charge premium prices or should it position itself in low cost production, or

combine both. Also there is need for managers to determine ways through which they can make

those advantages sustainable (Bayode & Adebola, 2012).

Strategy Evaluation

Strategies that are best implemented and formulate serve no purpose once the internal and

external environments of the business change. This calls for the need of regular reviewing,

evaluation and controlling of strategy execution (Grant, 2010). Formulation and implementation

of strategies is not something that is done once and for; there are some things that emerge that

make it necessary to have adjustments. If a strategy is not working well it might need some

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modifications or because of changing conditions, it might need to be fine-tuned or it might

necessitate a major overhaul. Improvement of good strategies are also done and less arguments

are needed to observe that changing industry, needs of customers, emerging new opportunities or

threats, new leadership executive, objectives reordering, etc. all calls for changes to be made in a

strategy (Grant, 2010).


Khritiano, Kertahadi and Suyadi (2012), indicated that satisfaction of clients is usually seen as an

outcome of comparing the expectation of consumption and experience; when the expectations of

the clients are met then it can be said that client satisfaction has been attained and its considered

to be the main factor indicating satisfaction in a company. The level of satisfaction of clients is

based on the perception of a product in comparison to the expectations of the client. If the level

of satisfaction of a product or service is less than the expectation of the client then it is said that

the client is not satisfied. When level of satisfaction is the same as the expectation of the

customer, then the clients is said to be satisfied, if the satisfaction is more that expectation the

clients are said to be highly satisfied which is referred to as customer delight (Hutt & Speh,

2004)

Research Methodology

Exploratory research design was adopted. According to Saunders, Lewis & Thornhill (2012) an

exploratory research helps in determining the nature of the problem, exploratory research is not

intended to provide conclusive evidence, but helps us to have a better understanding of the

problem. When conducting exploratory research, the researcher ought to be willing to change

his/her direction as a result of revelation of new data and new insights. The study targeted

management level employees at Telkom Kenya Limited Headquarters. According to the HRM

report of Telkom limited in 2017, there are 186 management employees at the headquarters. In

this study the targeted population was 186 employees as shown in table 1

Table 1: Target Population

Category Frequency Percentage

Top management 37 20

Middle management 54 29

Low level management 95 51

Total 186 100

In the study, the sample frame comprised management level employees at Telkom limited.

According to Mugenda and Mugenda (2013), an adequate sample is the one that represents 10-

50% of the entire targeted population. The study used a sample of 50% which was equivalent to

93 respondents. The sample size to be used in the study was selected using stratified sampling.

Table 2: Sample Size

Category Target population Sample Size

Top management 37 18

Middle management 54 27

Low level management 95 48

Total 186 93

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The study used primary data which was gathered using questionnaires. The questionnaire had

open and closed ended questions. Through the open-ended questions the respondent is able to

give their in-depth responses. Through the closed-ended questions the respondents are provided

with responses to select from. The researcher administered the questionnaires using the drop and

pick method. This study conducted a pilot test with the aim of ascertaining validity and

reliability. Coding of data was done in SPSS version 22. Analysis of quantitative data was done

by use of descriptive statistic such as percentages, mean and Std. Dev. presentation of the

information was done using table, graphs and charts. Content analysis was used in analysing

qualitative data. The study conducted a correlation analysis. Analysis of the impact of strategic

responses on satisfaction of clients was determined by computing multiple regressions. The

equation was presented as follows:

Y= β0+ β1X1+β2X2+ β3X3+ β4X4+ ε

Where:

Y= Customer satisfaction, β0 = Constant term, X1= Strategy planning, X2= Strategy formulation

X3= Strategy implementation, X4= Strategy evaluation, ε=error term

β1, β2, β3 and β4 are coefficients of determination and ε is the error term. ANOVA was used to

establish the level of significance of the established model.

Research Findings and Discussion

The sample size was 93 respondents and all of them were issued with a questionnaire but only 78

dully filled the questionnaires and returned; this formed a response rate of 83.9%.

Table 3: Response rate

Frequency Percent

Returned 78 83.9

Unreturned 15 16.1

Total 93 100.0

Cronbach’s Alpha was used in determining reliability of the objectives of the study. Gliem and

Gliem (2003) indicated that 0.7 id the threshold value of Alpha; this was the benchmark used.

Table 4.2 shows the results, where strategy planning, as an alpha of 0.812, strategy formulation

as an alpha of 0.826, strategy implementation as an alpha of 0.857, strategy evaluation as an

alpha of 0.871 and customer satisfaction as an alpha of 0.812. This is an indication that reliability

of the variables hold.

Table 4: Reliability analysis

Scale Cronbach's Alpha Number of Items

Strategy planning 0.812 6

Strategy formulation 0.826 6

Strategy implementation 0.857 5

Strategy evaluation 0.871 6

Customer satisfaction 0.812 9

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Descriptive Statistics

Strategy Planning

Respondents indicated the level to which they agree with statements about the influence of

strategy planning on customer satisfaction at Telkom Kenya Limited. As shown in Table 5

Table 5: Strategy Planning on Customer Satisfaction

Statements 1 2 3 4 5 Mean Std.

Dev.

The organization identifies the target customers 2 2 2 65 7 3.936 1.434

The priorities of customers are put into consideration 1 4 6 62 5 3.846 1.353

The organization has created a culture of customer

service

2 2 4 65 5 3.885 1.434

The organization clearly communicates service

standards and expectations in order to improve clients

communication

4 2 7 53 12 3.859 1.127

The organization has a vision for customer service

excellence

2 4 11 52 9 3.795 1.090

The organization provides consistent service across

channels

2 2 4 61 9 3.936 1.327

The findings show respondents are in agreement that the organization identifies the target

customers as shown by a mean of 3.936, the organization provides consistent service across

channels as shown by a mean of 3.936, the organization clearly communicates service standards

and expectations in order to improve clients communication as shown by a mean of 3.859, the

priorities of customers are put into consideration as shown by a mean of 3.846, and the

organization has a vision for customer service excellence as shown by a mean of 3.795. Olsen

(2016) evaluated the strategic planning measure on customer satisfaction, and noted that

measures and metrics are in abundance in companies nowadays, and they assist in trials to create

strategies. Metrics that are based on clients are the simplest way through which level of customer

satisfaction can be determined.



strategy formulation on customer satisfaction at Telkom Kenya Limited. The results are as

shown in Table 6

Table 6: Influence of Strategy Formulation on Customer Satisfaction


Dev.

Strategy formulation provides an understanding on the

organization goals

2 2 6 63 5 3.859 1.380

Strategies are tailored towards meeting our customer

needs

4 2 7 58 7 3.795 1.250

The strategies can be adjusted to meet our customers 2 4 2 63 7 3.885 1.382

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changing needs

Customer’s information is considered during strategy

formulation to improve decisions in the organizations.

2 2 2 67 5 3.910 1.488

Customer satisfaction forms part of an overall approach

to systematic improvement.

2 4 2 68 2 3.821 1.523

Strategy formulation involves scanning of the customers

changing needs

1 2 1 69 5 3.962 1.540

Findings reveal respondents are in agreement that strategy formulation involves scanning of the

customers changing needs as shown by a mean of 3.962, customer’s information is considered

during strategy formulation to improve decisions in the organizations as shown by a mean of

3.910, the strategies can be adjusted to meet our customers changing needs as shown by a mean

of 3.885, strategy formulation provides an understanding on the organization goals as shown by a

mean of 3.859, customer satisfaction forms part of an overall approach to systematic

improvement as shown by a mean of 3.821, and strategies are tailored towards meeting our

customer needs as shown by a mean of 3.795. The findings agree with the findings of

Nwachukwu, Chladkova and Fadeyi (2017) who did a study on strategy formulation process and

innovation performance Nexus and established that the process of strategy formulation positively

affected the process of product innovation performance; it was therefore concluded that the

process of formulating systematic strategies was important for companies to attain sustainable

performance in process, marketing and product innovation

Strategy Implementation

The respondents indicate the level to which they agree with statements about the influence of

strategy implementation on customer satisfaction at Telkom Kenya Limited. The results are as

shown in Table 7

Table 7: Strategy Implementation on Customer Satisfaction


Dev.

Strategy implementation brings about change meant to

help improve the company and solve customer problems

2 2 2 69 3 3.885 1.545

A good organizational development involves including all

employees in implementation so as to serve customers

better.

2 2 4 58 12 3.974 1.256

When executed properly, business implementation can

increase interdepartmental cooperation.

2 2 3 63 9 4.000 1.377

As well as communicating goals, strategy implementation

sets clear priorities on customer needs

3 2 4 57 12 3.936 1.231

Strategy implementation is important for moving a

company forward in terms of meeting customer needs

2 2 2 67 5 3.910 1.488

From the findings, the respondents agreed that there could be an increase in coordination among

departments if the implementations of business are done properly, as shown by a mean of 4.000,

involving all staff members in the process of implementation with the aim of serving clients

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better characterizes a good development in an organization as shown by a mean of 3.974,

implementation of strategies sets clear priorities in clients requirements as shown by a mean of

3.936, implementation of strategies is important for moving a company forward in terms of

meeting customer needs as shown by a mean of 3.910, and implementation of strategies results

to change that is focused on improving the firm and solving issues clients have as shown by a

mean of 3.885. These establishments concur with Mbithe (2017) that; employee training

influences customer focus strategy implementation as well as encouraging joint

seminars/workshops between the management and other staff. He also found that the bank’s

portfolio has in-creased owing to improved customer sati-faction.

Strategy Evaluation


strategy evaluation on customer satisfaction at Telkom Kenya Limited. The results are as shown

in Table 8

Table 8: Strategy Evaluation on Customer Satisfaction


Dev.

Through evaluation of strategies, it creates objective

technique to test how efficient and effective set customer

strategy are

2 0 2 64 10 4.026 1.410

Strategy evaluation determines whether the strategy that is

implemented moves towards attainment of the intended

objective which is to attain satisfaction of clients

2 1 2 60 13 4.038 1.314

Evaluations help to identify when and what corrective

actions are necessary to ensure customer satisfaction

4 4 7 54 9 3.769 1.145

Strategy evaluation helps the organization to serve its

customers better

2 2 6 59 9 3.910 1.273

Evaluations help to determine whether customer needs are

being met

4 2 7 58 7 3.795 1.250

Evaluations helps to correct deviations in implementation

of customer strategies

1 2 4 63 8 3.962 1.377

The findings reveal that the respondents agreed that strategy evaluation determines whether the

strategy that is implemented moves towards attainment of the intended objective which is to

attain satisfaction of clients as shown by a mean of 4.038, through evaluation of strategies, it

creates objective technique to test how efficient and effective set customer strategy are as shown

by a mean of 4.026, evaluations helps to correct deviations in implementing strategies of clients

as shown by a mean of 3.962, strategy evaluation helps the organization to serve its customers

better as shown by a mean of 3.910, evaluations help to determine whether customer needs are

being met as shown by a mean of 3.795, and evaluations help in identifying when and what

actions need to be taken to ensure clients satisfaction is attained as shown by a mean of 3.769.

Zhang and Prasongsukarn (2017) did an evaluation of an association research on promotional of

prices, evaluation of quality of clients and client satisfaction and intents to repurchase; the study

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was a case study of Starbucks in Thailand and found that promotional prices were positively

related with evaluation of clients on quality of foods and beverages and quality of service and

also clients level of satisfaction and their repurchasing intentions were strongly and positively

related.


Respondents indicated the level to which they are satisfied with aspects of ease to access to

customer service. Table 9 shows the findings.

Table 9: Ease to Access to Customer Service

Statements

Ver

y D

issa

tisf

ied

Dis

sati

sfie

d

Sli

gh

tly S

ati

sfie

d

Sati

sfie

d

Ver

y S

ati

sfie

d

Mea

n

Std

. D

ev.

Ease of access to customer Service 2 2 6 59 9 3.910 1.273

Simplicity in communication of new products 2 2 7 62 5 3.846 1.354

Courtesy of customer service representatives 4 2 7 58 7 3.795 1.250

Advance notification of planned activities; E.g.

Maintenance

2 4 2 63 7 3.885 1.382

Capability of performing promised services in an

accurate and dependable way

2 3 2 68 3 3.859 1.519

Prompt service to customers 2 2 3 66 5 3.897 1.461

Confidence instilled I customer by staff 1 2 1 69 5 3.962 1.540

Understand exactly what the customers’ needs 2 2 2 69 3 3.885 1.545

Staff follow through on processes/escalations 2 2 4 58 12 3.974 1.256

From the findings, the respondents were satisfied that staff follow through on

processes/escalations as shown by a mean of 3.974, confidence instilled in customer by staff as

shown by a mean of 3.962, ease in accessing customer service as shown by a mean of 3.910,

prompt service to customers as shown by a mean of 3.897, advance notification of planned

activities; e.g. maintenance as shown by a mean of 3.885, understand exactly what the

customers’ needs as shown by a mean of 3.885, capability of performing promised services in an

accurate and dependable way as shown by a mean of 3.859, , and courtesy of customer service

representatives as shown by a mean of 3.795. Hutt and Speh (2004) indicated that when level of

satisfaction is the same as client expectation, then the clients is said to be satisfied, if the

satisfaction is more that expectation the clients are said to be highly satisfied.

Inferential Statistics

Correlation Analysis

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The relationship between the response and the predictor variables was analyzed using correlation

analysis. PMC was applied in determining the relationship between strategy planning, strategy

formulation, strategy implementation, and strategy evaluation with customer satisfaction at

Telkom Kenya Limited. Table 10 shows the results

Table 10: Correlations Coefficient

Cu

stom

er s

ati

sfact

ion

Str

ate

gy p

lan

nin

g

Str

ate

gy f

orm

ula

tion

Str

ate

gy i

mp

lem

enta

tion

Str

ate

gy e

valu

ati

on

Customer satisfaction Pearson Correlation 1

Sig. (2-tailed)

N 78

Strategy planning Pearson Correlation .756* 1

Sig. (2-tailed) .005

N 78 78

Strategy formulation Pearson Correlation .776* .288 1

Sig. (2-tailed) .000 .000

N 78 78 78

Strategy implementation Pearson Correlation .771* .272 .167 1

Sig. (2-tailed) .003 .000 .000

N 78 78 78 78

Strategy evaluation Pearson Correlation .721* .137 .249 .183 1

Sig. (2-tailed) .006 .000 .000 .000

N 78 78 78 78 78

From the findings shown in Table 4.8 above, strategy planning and customer satisfaction at

Telkom Kenya Limited were strongly and positively correlated as shown by r = 0.756,

statistically significant p = 0.005<0.05; strategy formulation and customer satisfaction at Telkom

Kenya Limited were strongly and positively correlated as shown by r = 0.776, statistically

significant p = 0.000; strategy implementation and customer satisfaction at Telkom Kenya

Limited were strongly and positively correlated as shown by r = 0.771, statistically significant p

= 0.003; strategy evaluation and customer satisfaction at Telkom Kenya Limited were strongly

and positively correlated as shown by r = 0.721, statistically significant p = 0.006. It suggests

that; strategy planning, strategy formulation, strategy implementation, and strategy evaluation

have effect on customer satisfaction at Telkom Kenya Limited.

Multiple regressions Analysis

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Multiple regressions analyzed the influence of strategic responses on customer satisfaction. The

results were presented in three tables as shown below.

Table 11: Regression Analysis

Model summary

Model R R Square Adjusted R Square Std. Error of the

Estimate

1 .898a 0.806 .799 .00182

Analysis of variance

Model Sum of Squares df Mean Square Sig. F

1 Regression 24.372 4 6.093 27.176 .001b

Residual 16.367 73 0.224

Total 40.739 77

Coefficients

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std.

Error

Beta

1 (Constant) 1.732 0.098 8.747 0.001

Strategy planning 0.412 0.211 0.401 1.953 0.003

Strategy formulation 0.578 0.253 0.563 2.285 0.001

Strategy implementation 0.543 0.287 0.531 1.892 0.001

Strategy evaluation 0.432 0.260 0.501 1.662 0.002

From the findings of the model summary, the value of the adjusted R2 was found to be 0.799

which suggesta that 79.9% change in satisfaction of customers at Telkom Kenya Limited is due

to the changes of strategy planning, strategy formulation, strategy implementation, and strategy

evaluation. The remaining 20.1% suggest taht other factors exist that lead to customer

satisfaction at Telkom Kenya Limited. The association of te variables that are being investigated

is shown by the correlation coefficient which is the value of R. It is clear that the variables being

studied were strongly related as indicated by corellation coefficien value of 0.898.

In order to establish if the data that was used was significant, the study used ANOVA. The

findings of the ANOVA showed that the p-value of the population parameters was 0.001 which

implies that the data was suitable to be used in making inference because the p-value was not

greater than the significance level of 0.05. It was concluded that the data was suitable for

drawing conclusions. The value of F critical was less than the value of F calculated

(2.497<27.176). This implies that strategy planning, strategy formulation, strategy

implementation, and strategy evaluation significantly influence customer satisfaction at Telkom

Kenya Limited.

The regression equation was

Y = 1.732+ 0.412X1+0.578X2 + 0.543X3 + 0.432 X4

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The above equation revealed that holding strategy planning, strategy formulation, strategy

implementation, and strategy evaluation variables to a constant zero, they will significantly

influence customer satisfaction at Telkom Kenya Limited as shown by constant =1.732 as

shown in Table 11

Strategy planning is statistically significant to customer satisfaction at Telkom Kenya Limited as

shown by (β = 0.412, P = 0.003). Suggesting that, strategy planning significantly and positively

relate with customer satisfaction at Telkom Kenya Limited. This suggests that increasing

strategy planning will positively influence customer satisfaction at Telkom Kenya Limited.

Strategy formulation is statistically significant to customer satisfaction at Telkom Kenya Limited

as shown by (β = 0.578, P = 0.001). Suggesting that strategy formulation significantly and

positively relate with customer satisfaction at Telkom Kenya Limited This implies that a unit

increase in strategy formulation positively influence customer satisfaction at Telkom Kenya

Limited.

Strategy implementation is statistically significant to customer satisfaction at Telkom Kenya

Limited as shown by (β = 0.543, P = 0.001). Suggesting that strategy implementation

significantly and positively relate with customer satisfaction at Telkom Kenya Limited. This

implies that a unit increase in strategy implementation positively influence customer satisfaction

at Telkom Kenya Limited.

Strategy evaluation is statistically significant to customer satisfaction at Telkom Kenya Limited

as shown by (β = 0.432, P = 0.002). Suggesting that strategy evaluation significantly and

positively relate with customer satisfaction at Telkom Kenya Limited. This implies that a unit

increase in strategy evaluation positively influence customer satisfaction at Telkom Kenya

Limited.

Discussion of Findings

From the findings, strategy planning influences customer’s satisfaction. A significant

relationship has also been established between strategy planning and customer’s satisfaction.

This implies that strategy planning and customer’s satisfaction are related positively. Strategy

formulation has an effect on customer’s satisfaction, this is because changes in strategy

formulation results to changes to customer satisfaction. Strategy implementation and evaluation

also influences customer satisfaction. Strategy implementation and evaluation is significantly

associated to customer satisfaction. The study variables are positively related to customer

satisfaction

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

Conclusions

The study found that strategy planning is statistically significant to customer satisfaction at

Telkom Kenya Limited. The study further established that strategy planning had significant

positive relationship with customer satisfaction at Telkom Kenya Limited. The study therefore

concludes that a unit increase in strategy planning positively influence customer satisfaction at

Telkom Kenya Limited.

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The study found that strategy formulation is statistically significant to customer satisfaction at

Telkom Kenya Limited. The study further established that strategy formulation significantly and

positively relate with customer satisfaction at Telkom Kenya Limited. It is thus concluded that

increasing strategy formulation positively influence customer satisfaction at Telkom Kenya

Limited.

On strategy implementation the study established that it is statistically significant to customer

satisfaction at Telkom Kenya Limited. The study further revealed that strategy implementation

had significant positive relationship with customer satisfaction at Telkom Kenya Limited. The

study therefore concludes that a unit increase in strategy implementation positively influence

customer satisfaction at Telkom Kenya Limited.

The study established that strategy evaluation is statistically significant to customer satisfaction

at Telkom Kenya Limited. The study further established that strategy evaluation significantly

and positively relate with customer satisfaction at Telkom Kenya Limited. It is thus concluded

that a unit increase in strategy evaluation positively influence customer satisfaction at Telkom

Kenya Limited.

Recommendations

Increase in strategy planning positively influence customer satisfaction at Telkom Kenya

Limited. The study therefore recommends management of the organization to have a regular

interaction with their clients for the purpose of understanding the ever changing needs of their

clients; this will ensure they know what customers are expecting of them and thus enable them to

work towards fulfilling their expectations thus increasing customers’ satisfaction. The

organization should also empower front-line customer service workers to ensure they are able to

solve problems on the spot.

Strategy formulation had significant positive relationship with customer satisfaction at Telkom

Kenya Limited. The organization should therefore develop effective strategies by looking and

how the organization is griped with challenges and the opportunities facing the company; this

will ensure that the company functions well and be more productive and therefore increasing

their performance. The company should also do a regular evaluation on the company to

determine whether the strategies they have adopted are performing well.

It is important for the management of the organization to take the needed actions in

implementing set strategies such as allocation the needed resources and designing the business so

that it can attain the intended strategies. It is the responsibility of managers to determine how the

organization should compete with the aim of attaining sustainable competitive advantage in the

market either through low cost producer or developing product and services meeting specific

needs of clients. Because of transformations in environment of the company thee strategies use

in the company become obsolete and therefore it is important for the management of the

organization to review, evaluate and control execution of the strategies.

Suggestions for Further Studies

This study aimed to establish the influence of strategic practices on customer satisfaction; a case

study of Telkom Kenya Limited. The study recommends replication of the research study in

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other companies such as banks and other telecommunication companies. The study recommends

investigation on the challenges faced by other firms during implementation of customer

satisfaction strategies.

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