INTERACTIVE MARKETING AND MARKETING PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN NYANZA REGION, KENYA

Abstract

Currently, Interactive marketing strategies are widely recognized by marketers as key in customer acquisition. The advent of interactive marketing has been accompanied by the declining influence of passive broadcast advertising and one-way persuasive communication. The glaring massive existence of literature on this field with little empirical research poses a challenge for many businesses including micro and small enterprises in Kenya; which has been in the recent past experiencing a failure rate of 60% with majority of them failing to celebrate their third anniversary, implying there could be other factors affecting the outcome of interactive building efforts which has been accompanied by the constant call for empirical studies in this field amidst the rapid development and innovation in new technologies, platform revolution, participating culture and social media proliferation. This study therefore sought to determine the influence of interactive marketing on the marketing performance of MSEs within Nyanza region, Kenya. Specifically, the study determined the influence of interactive commitment, interactive communication and customer trust on the marketing performance of micro and small enterprises. It also investigated the moderating and the mediating effect of socio-demographic factors and marketing effectiveness respectively on the relationship between interactive marketing and marketing performance. The study was anchored on five theories namely: Social exchange theory, Theory of relational market behavior, Diffusion of innovation theory, stakeholders’ theory, Technology Acceptance Model (TAM) and unified TAM. The study was premised on positivism paradigm philosophy. Cross-sectional survey research design was adopted in the study. 2,811 MSEs were targeted out of which 362 respondents were sampled by use of Yamane formula and sampling done by stratified, simple random sampling method. Primary data was collected by use of a self-administered semi-structured questionnaire based on a five-point Likert scale. The validity and reliability of the questionnaires was established before they were administered on the respondents. Descriptive statistics consisting of means and percentages summarised the sampled data’s properties, while inferential statistics involved the use of regression analysis in testing the research hypotheses and drawing conclusions. Quantitative data analysis was done using SPSS 26.0 and the results presented in tables. The study determined that interactive commitment, interactive communication and customer trust have a significant influence on marketing performance; customer demographic factors have no moderating effect on the relationship between interactive marketing and marketing performance; and marketing effectiveness has a partial mediating effect on the hypothesised relationship. Thus, the study concluded that interactive commitment, interactive communication and customer trust have a significant effect on the marketing performance; and that marketing effectiveness and customer demographic factors have a partial mediating effect and no moderating effect on interactive marketing-marketing performance link, respectively. On the basis of these conclusions, this study recommends that MSEs can improve their marketing performance by embracing interactive commitment through consistent delivery on the brand's value proposition and fostering of relationships; reinforcing their interactive communication systems and embracing information sharing between them and their customers; adherence to the remarks used during promotion and providing excellent and efficient customer service in which consistency in dealing with customers is encouraged and enhanced. As MSEs evaluate the execution of their interactive marketing, the results of this study could be of value in calling for intensified action and implementation of the key dimensions of interactive marketing, which are critical to their marketing performance.