EFFECT OF SERVICE QUALITY MANAGEMENT ON THE RELATIONSHIP BETWEEN MARKET CHALLENGER STRATEGIES AND PERFORMANCE OF VERNACULAR RADIO BROADCASTING FIRMS IN WESTERN KENYA

ABSTRACT

Globally, Kenya inclusive evidence shows that Radio remains crucial in the advertising market and development of democracy. Despite this, evidence shows that these firms face challenges in their performance in terms of customer satisfaction, growth and social performance leading to revenue decline from 13.4% to 6.8% between 2012 to 2017. This decline may be attributed to the radio firms marketing strategies, particularly market challenger strategies. Empirical evidence on market challenger strategies is limited and moderation has not been adequately tested. This study sought to examine the effect of service quality management on the relationship between market challenger strategies and firm performance. Specific objectives were: determination of effect of market challenger strategies, establishment of the effect of service quality management: on performance; and investigation of the moderating effect of service quality management on the relationship between market challenger strategies and performance. The study was anchored on Game, Contingency Theories and SERVQUAL Model. A conceptual framework with market challenger strategies as independent variable, service quality management as moderating variable and performance as dependent variable was used. The study adopted explanatory design with a population of 186 managers and a sample of 125 management staff drawn proportionately from these 16 firms. Questionnaires were used to collect primary data. Regression results revealed that market challenger strategies explained up to 81.4% of the variation in performance (R Square = 0.814). Frontal, encirclement, bypass and guerilla warfare attacks had significant positive influence on performance. Flank attack had minimal insignificant positive influence on firm performance (β=0.060, p>0.05). Service quality had direct effect on the performance and accounted for up to 70.4 % of the variance in firm performance (R square = 0.704). Service quality moderates the relationship between market challenger strategies and performance (R–square change = 0.010, ΔF=4.686, p