Product Innovation Strategies Among Banks In Eldoret Municipality, Kenya
Odoyo Fredrick S. and Omwono Gideon A.
The Catholic University of Eastern Africa, Kenya
The study aimed at assessing the product
innovation strategies adopted by banking
industry in Eldoret, Kenya. The study was
guided by the following two objectives; to assess
product innovation strategies employed by banks
in Eldoret, to establish the relationship between
product innovation and growth of banks and
to find out the challenges of product innovation
strategies implementation and improvement.
The study employed a survey research design
of 25 banks within Eldoret municipality and
targeted the branch managers and the employees
in the banks who are 578. A total sample size
of 191 respondents was therefore employed
in the study. The study employed purposive
sampling in selecting the branch managers and
stratified sampling in selecting the employees.
A questionnaire was used as the main data
collection instrument. Descriptive and inferential
statistics were both used to analyse and interpret
the data. The study found out that market surveys and customer’s feedbacks had effect on product
innovation strategies. The study concluded that
to a large extent banks innovate new products
leading to new customers (new markets). The
study recommended that apart from continuous
improvement of existing products, it is the
responsibility of the banks to come up with new
products and services to suit their target market
rather than being an adopter of innovation.
Product Innovation, Bank, Strategy, Eldoret Municipality
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