Customer Acquisition Strategy and Performance of Motor Vehicle Assemblers in Kenya
DOI:
https://doi.org/10.53819/81018102t4384Abstract
The motor vehicle assembly industry is crucial for industrial development, job creation, and economic growth. However, Kenya’s motor vehicle sector has seen a decline in local market share, revenue, and competitiveness due to strategic stagnation, weak innovation, and operational inefficiencies. Therefore, this study examined the effect of customer acquisition strategy on the performance of motor vehicle assemblers in Kenya. The study was anchored on the Value Innovation Framework. It adopts a descriptive and explanatory design and data analysis from 21 licensed and operational motor vehicle assembly firms in Kenya. The unit of analysis includes 202 employees directly involved in strategy and operations at three management levels from all 21 firms. A census approach was used, and primary data was collected via semi-structured questionnaires. Pretesting was conducted among motorcycle assemblers, and construct validity was assessed through factor analysis. Reliability was assessed through Cronbach’s Alpha (≥0.70). Descriptive statistics provided foundational insights, while inferential analyses included Pearson’s Product-Moment Correlation and multiple linear regression. The study used thematic analysis for the qualitative data. The findings indicated that customer acquisition strategy positively and significantly affect the organisational performance of motor vehicle assemblers in Kenya (R2=.367, p-value=0.000). The study concludes that strengthening customer acquisition strategies is essential for enhancing the overall performance of motor vehicle assemblers in Kenya. The study recommends that policymakers in Kenya should establish frameworks that promote customer engagement, digital marketing, and market development, while motor vehicle assemblers should implement strategies such as market segmentation, Customer Relationship Management systems (CRM), and referral programs to expand their customer base, enhance customer experience, and strengthen overall industry performance. This study provided insights to guide strategic innovation and competitiveness in Kenya’s motor vehicle assembly industry, contributing to the realisation of Sustainable Development Goals (SDGs), Africa Vision 2050, and Kenya Vision 2030.
Keywords: Customer Acquisition, Innovation, Organizational Performance, Competitiveness
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