An Evaluation On the Effects of Peoples' Culture On Marketing Loans in the Microfinance Institutions.

TABLE OF CONTENTS

DECLARA TION ................................•.••..•............................................ i

APPROVAL. ...........................................................•••••.•..•••.•••••...••.... .ii

ACKNOWLEDGEMENTS ..•..•••.•.•..•..•...................................................• iii

TABLE OF CONTENTS .••••••••••••..•.•.....................................................•• iv

CHAPTER ONE

1.0 Introduction •...••.............................••.••..•••.•.••••.•••..••••.••.••••.•.•••.•••...... 1

1.1 Background .•••....•..............•.....••..•...•••.............••..................•••.......... 1

1.2 Statement of problem ..............................•.•.•..•....•....•••.........•....•..•...... 3

1.3 Purpose of the study ........................................................................... .4

1.3.1 Research questions .......................................................................... .4

1.4 Research Objectives ............................................................................ 5

1.4.1 General Objectives .......................................................................•... 5

1.4.2 Specific Objectives .......................................................................... 5

1.5 Scope of the study •............................................................................. 5

1.6 Limitations of the study .................................................................•..... 6

CHAPTER TWO

2.0 Introduction ..•••.•.............................................................•.•.....•........ 7

2.1 Literature revievv .•.............................................................•.•...•.•.••.... 7

2.2 Implications of strict cultural adherence .•.••............................................... 8

2.3 Effects of people's culture on marketing loans in microfinance institutions ............. 9

2.41mportance of people's culture in marketing Ioans ....................... : .. ··············ll

2.4.1 Causes of poor Cultural Practices by the People ........................................ 12

2.5 Possible solutions to poor cultural practices and marketing problems .................• 13

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CHAPTER THREE

3.0 Methodology ..•....•..••....••...•.....•...••....•....•.....•....•....•....•...••...•........... 15

3 .I Research design ........•...•••...••...••...••....•....••....•....•....•....••...••...•.•..•..... 15

3.2 Sample selection and size •....•....•.....•....•....•....•.....•....•...••....•...••...••... ..• 15

3.2.1 Sample population .....•••..••...••....•....•....•....•.....•....•....•....•....•...•......•. 15

3.2.2 Sample procedure ..•....•..............•.........••....•....•....•....•...••...•.....•.....•• 16

3.2.3 Sample technique .•....•...•.•...•...••...•.... .•.•..•....•....•....•....•...••...•....••.... 16

3.3 Data collection methods .•...•..........•....•....•.........•....•....•.........•...•.....•... 17

3.3.1 Primary Data Collection .••...•....••....•...••....•....•....•...••........•....•...•..... 17

3.3.1.1 Questionnaires ...•....•....•....•....•....•....•....•....•...••........•.........•......... 17

3.3.1.2 Intervievvs ...••.......•.•..•....•...•.....•...••...••....•...••...••...•....•...••...•.....• 17

3.3.2 Secondary Data Collection ..• ....•.........•....•....•...•....••...•...•..............•.... 18

3.4 Data analysis •....•.......•........••....•...•....•....••...•....•....•...••...•....•....•....••• 18

CHAPTER FOUR

4.0 Presentation, Analysis and Discussion of Findings .••....••.....•...........•............•.....•...... 19

4.1 Introduction •...•........•...••...•.........•...•....•....•....•....•............•....•...•...... 19

4.2 Respondents by Sex ........•....•....•.•..•...•....•....•....•........•.•..•...•....•... .•..... 19

4.3 Educational level. ..•....•...•....•....•....•...•.........•............•....•.........•.... ...... 21

4.4 Area of specialization .•...••...•....•....•........•........••...•.•.••...•...•....•...•........ 22

4.5 Length of service ...•....•.................•....•....•...•....•........•..... ...•....•....•...... 24

4.5.1 Marketing policy Revievv on varying Cultures ...........•......•....••....••.................•....... 25

4.5.2 Loan evaluation in Faulu Kenya ...•.......................•...••...•............•.....•... 27

4.6 Loan Rating .....••.......•........••........•....•....•...•....•.............•...•....•....•.... 28

4.6.1 Assessment of Loan Facility ......•....•....•............................•...•....•...•.. ... 30

4.6.2 Loan Repayment Mechanism ............................................................... 32

4.7 Duration given to Borrovvers .................................................................. 33

4.8 Cultural Practices of People ................................................................... 35

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CHAPTER FIVE

5.0 Discussion of Findings, Recommendations and Conclusions .•....•....••...•.•...•...... 36

5.1 lntroduction .••...•....•....•.........•.....•.....•.........•....•.....•....•....•....•....•...... 36

5.2 Discussion of Findings ...•....•....•.....•..........•....•..•.••...•....••...••.•..•....•...... 36

5.2.1 Bio Data .............•....•.........••....•..........•....••....•...••.........•....•....•...... 36

5.2.2 Credit Rating in relation to peoples Culture ••....••...••....•....•....•....•.....•.....••. 36

5 .2.3 Marketing Po !icy ......•.....•....•....•.....•.........••....•....•....•....•....•.....•........ 37

5.2.4 Loan Terms ......•....•....•..........•..........•....•....•.....•....•....•....•....••....•••. 38

5.2.5 Loan Recovery Approach .•.....•....•....•..........•....•....••....•....•...•.....•....... 39

5.2.6 Implications ofFraudsters and Conmen on people and peoples Culture ....•.....••. 40

5 .2. 7 Duration given to Borrowers .•....••...............•..............•..........•............ . 41

5.3 Recommendation ..•....•.........••...............•....•.....•....•....•..........•....•......• .42

5.4 Limitations of the Study ....•.....•....•....•....••....•....••....•...................••...... .42

5.5 Conclusion •...•.....•.....•...•....•....•...........•....•....•..............••....•....•......• .43

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