MARKETING MIX, CUSTOMER SATISFACTION AND CUSTOMER LOYALTY A CASE STUDY BANK OF KIGALI (2018-2022)

Abstract

This study intended to assess the effect of marketing mix on customer satisfaction and customer loyalty among BK clients. The specific objectives was to determine the effect of marketing mix on customer satisfaction among BK clients.. To assess the impact of marketing mix on customer loyalty among BK clients. To investigate the effect of customer satisfaction on customer loyalty among BK clients. To analyze the relationship between marketing mix, customer satisfaction and customer loyalty among BK clients. The sample size of 100 was determinate using the convenience sampling technique due to the large number of the study population, and 85 respondents returned well filled responses. The researcher used primary and secondary data in this study. Descriptive research design, correlation analysis and multiple regression were used to assess the data using SPSS version 27. The regression model 1 revealed that predictors of marketing mix, namely Price, Product, Promotion, People, and Place accounted for 69.6% on the Customer loyalty in BK PLC. The F-calculated was 21.074 and was greater than the F-critical and the p-value was 0.030, was less than the significance level (0.05). Regression model 2 revealed that the marketing mix predictors (Price, Product, Promotion, People, and Place contribute 82.4% on customer satisfaction in BK PLC. The F-statistics was significant as evident by the significance level of 0.004< 0.05.Regression model 3 revealed that 82% of variances in customer loyalty in BK PLC are caused by variances in customer satisfaction (response time. Ease of banking and customization). An F-statistics of 33.185 was established at the significance level of 0.001< 0.05.The moderation equation for customer satisfaction moderating the relationship between marketing mix and customer loyalty revealed that a unit increase in marketing mix independently increased customer loyalty levels by 0.421 units. Equally a unit increase in customer satisfaction led to 0.133 units increase in customer loyalty. The joint interaction between customer satisfaction and marketing mix increases customer loyalty levels by 0.355 units. On the basis of findings from chapter 4, the study concluded that there is positive and significant effect of marketing mix, customer satisfaction on the customer loyalty among BK PLC clients. Therefore, all the study hypotheses were accepted. The study recommended that banks emphasize on the marketing mix and its elements as they can help business providers to know the factors that their customers are looking for when buying a service or product.