EFFECT OF GROWTH STRATEGIES ON THE COMPETITIVENESS OF TOUR OPERATOR FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

Despite developing countries having the potential for e-commerce development, they are still lagging behind the developed countries. Kenya is ranked the third country in Africa with the highest internet penetration rate. However, slow consumer uptake has rendered to the closure of a number of online retailing services. In addition, according to a consumer report by the US. Commercial Service for Export, out of the estimated 40.5 million internet users, only about 5% of Kenyan consumers make online purchases. This study therefore sought to establish the influence of customer preferences on performance of e-commerce retail firms in Nairobi City County. Specifically, the study sought to establish the effect of product preference on performance of e-commerce retail firms in Nairobi City County, Kenya, assess the effect of Brand preference on performance of e-commerce retail firms in Nairobi City Count, Kenya, determine the effect of price preference on performance of e-commerce retail firms in Nairobi City County, Kenya and to establish the effect of quality preference on performance of e-commerce retail firms in Nairobi City County, Kenya. This study used a descriptive research design. The unit of observation was 234 respondents comprising of senior employees working in -commerce retail firms in Nairobi City County and the consumers depending on online products. The study used stratified random sampling to select 107 respondents from the target population. This study used both primary and secondary data. To collect primary data, this study used semi-structured questionnaires. Pilot test was also conducted to test the validity and reliability of the research instruments. The study used descriptive and inferential statistics for data analysis. This was done with the help of Statistical Package for Social Sciences (SPSS) program version 22. The study results were presented through use of tables and figures. The study found that product preference has a positive and significant influence on performance of E-commerce retail firms in Nairobi City County, Kenya. In addition, the study found that brand preference has a positive and significant influence on performance of E-commerce retail firms in Nairobi City County, Kenya. Further, the study found that price preference has a positive and significant influence on performance of E-commerce retail firms in Nairobi City County, Kenya. The study found that quality preference has a positive and significant influence on performance of E-commerce retail firms in Nairobi City County, Kenya. This study therefore recommends that the management of E-commerce retail firms in Nairobi City County should put in consideration the aspects of content, designation and packaging when coming up with their products. In addition, the management of E-commerce retail firms in Nairobi City County should effective promotional Scheme practices as well as product advertisement.

Key Words: Growth Strategies, Competitiveness, Tour Operator Firms