INFLUENCE OF CORPORATE CULTURE ON CUSTOMER SEGMENTATION STRATEGY AMONG COMMERCIAL BANKS IN KENYA

Abstract

This research paper sought to investigate the influence of corporate culture on customer segmentation strategy among commercial banks in Kenya. The study employed a quasi-experimental posttest research design. A census survey was conducted among 43 commercial banks in Kenya, where the study population consisted of four senior managers from each bank’s head-office in Nairobi capital city of Kenya. The findings of this study were that corporate culture directly influences banks’ customer segmentation strategy formulation and implementation. Thus, according to R2 corporate culture contributes upto 46.9% of the variations in customer segmentation strategy execution. In conclusion therefore, management of banks have to embrace all the four types of corporate culture ( clan culture, adhocracy culture, market culture and hierarchy culture )that provide direction and focus towards accurate execution of business strategies. Since culture is dynamic, the researcher recommends that top management should be role models in building strong corporate culture that contribute to sustainability of their firms on the market.