UNITY UNIVERSITY

FACULITY OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKATING MAGMENT

AN ASSESMENT OF THE EFFECT OF MARKETING MIX

STRATEGIES ON CUSTOMER SATISFACTION IN THE CASE
OF ZAMZAM BANK.

BY GIZMAN MUHI

A FINAL RESEARCH SUBMITTED TO THE DEPARTMENT OF

MARKATING MAGMENT FACULITY OF BUSINESS AND
ECONOMICS,UNITY UNIVERSTY IN PARTIAL
FUFULFIMENT FOR THE REQURIMENT OF DEGREE FOR
BACULAR OF ARTS IN MARKATING MANGMENT.
: JUNE, 2023

ADISS ABABA,ETHIOPIA
ACKNOWLEDGEMENTS

I am indebted to many individuals for their help and encouragement rendered while conducting
this study. First, I would like to appreciate my major advisor Kindye.T for their valuable
comments, guidance and encouragement from proposal write up and questionnaire development
up to submission of the final thesis write up. I would like to thank all staff members and workers
of zamzam bank offices and all sample respondents for this study. Above all, I thank the
Almighty God for giving me health and strength for the completion of the study
Abbreviation and acronyms
CS; customer satisfaction

MS; marketing strategy

LR; linear regression

ANOVA; analysis of variance

 Table of Contents
List of tables................................................................................................................................................6
Abstract.......................................................................................................................................................7
CHAPTER ONE..............................................................................................................................................1
INTRODUCTION...........................................................................................................................................1
1.1 Background of the Study...................................................................................................................1
1.2 Statement of problem.......................................................................................................................3
1.3 Research question.................................................................................................................................5
OBJECTIVE OF THE STUDY........................................................................................................................5
1.4.1 General objective........................................................................................................................5
1.4.2 Specific objective........................................................................................................................5
1.5 Significance of the study....................................................................................................................5
1.6 Scope of the Study.............................................................................................................................6
1.7 limitation of the study.......................................................................................................................6
1.8 Organization of the study..................................................................................................................6
1.9 research methodoogy........................................................................................................................6
1.9.1 Research Design and Approach..................................................................................................6
1.9.2 Population and Sample size........................................................................................................7
1.9.3 Data Types and Method of Data Collection................................................................................7
1.9.4 Types and Sources of data..........................................................................................................8
1.9.5 Data collection method..............................................................................................................8
1.9.6 Data analysis and presentation...................................................................................................8
1.9.7 Ethical Considerations................................................................................................................9
CHAPTER TWO...........................................................................................................................................11
REVIEW OF RELATED LITERATURE.............................................................................................................11
2.1 Theoretical Approach......................................................................................................................11
2.1.1. Marketing Strategy Overview..................................................................................................11
2.1.2 Three Generic Strategies..........................................................................................................11
 2.1.3 Competitive Strategies..............................................................................................................13
2.1.4 Elements of marketing Strategy................................................................................................13
2.2. Empirical study...............................................................................................................................17
CHAPTER THREE........................................................................................................................................25
RESULT AND DISCUSSION..........................................................................................................................25
3.1 Demographic data of respondents..................................................................................................25
3.2 Descriptive Statistics for four marketing mix strategies...................................................................27
3.2.1 Descriptive analysis for price....................................................................................................27
3.2.2 Descriptive analysis for promotion...........................................................................................28
3.2.3 Descriptive analysis for place....................................................................................................29
3.2.4 Descriptive analysis for production (service)............................................................................30
3.3 Multicollinearity: variance inflation matrix..................................................................................31
3.4 Homoscedasticty.........................................................................................................................31
3.5 Model specification test..............................................................................................................32
3.6 Normality.....................................................................................................................................33
3.7 Empirical analysis.........................................................................................................................34
3.8 Interpretation of ANOVA table....................................................................................................35
3.9 Regression Analysis......................................................................................................................35
3.10 Interpretation of regression coefficient.....................................................................................35
CHAPTER FOUR..........................................................................................................................................37
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS............................................................................37
4.1 Summary of the finding...................................................................................................................37
4.2 Conclusion.......................................................................................................................................38
4.3 Recommendations...........................................................................................................................39
1.0 APPENDIX............................................................................................................................................43
 List of tables
Table 1; demographic analysis......................................................................................................25
Table 2; descriptive statistics for price result................................................................................27
Table 3: promotion descriptive statistics.......................................................................................28
Table 4: descriptive statistics for place..........................................................................................29
Table 5; descriptive statistics for production.................................................................................30
Table 6: descriptive statistics for four p’s......................................................................................30
Table 7; correlation analysis..........................................................................................................31
Table 8; multicollinearity test result..............................................................................................32
Table 9; hetroschedasticity test result............................................................................................32
Table 10; model specification test result.......................................................................................33
 Abstract
With the tight competition in the bank industry, customer satisfaction has become the key for
success. However, customer satisfaction is not always easy to earn. With this in mind, the
research is established with the goal to analyze the impact of 4P's of Marketing Mix towards
customer satisfaction on Zamzam bank. Using questionnaires as data gathering instrument with
simple random sampling, 300 respondents were gathered head office workers, who are active
customers to the company. The data obtained then analyzed using correlations and linear
regressions. The result shows that 4P's of Marketing Mix has significant impact toward customer
satisfaction. Therefore, companies, especially Zamzam bank, should focus on of its product and
place lineup while maintaining the other factors such as price and product.

Key words; marketing mix, customer satisfaction, linear regression

 CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
Marketing is one of the numbers of factors that contribute to firms Performance. Hence, isolating
marketing contribution is important and part of the methodological challenge of working in this
part of field. Kotler (1999) Argued that, in the future, marketing has the main responsibility for
achieving Profitable revenue growth for the company.

A Proper Marketing Mix Strategy Helps in Establishing a Niche in the Market Marketing is the
action taken by businesses to sell the products or services that make a contribution to their
turnover. It is important for every business, small or big, to understand and implement the right
marketing mix strategy, which can help them in the sales of the items they make or sell. There
are four areas of marketing that contribute to the marketing mix and are Considered the four Ps
of marketing. They are: products, price, place, promotion.

Marketing strategies has been grounded on marketing mix theory and Theory of push and pull.
Marketing mix theory is still used today to make important decisions that lead to the execution of
a marketing plan. The idea of a marketing mix theory is to organize all aspects of the marketing
plan around the habits, desires and psychology of the target market (McCarthy, 2004). The
theory of push and pull is applied in today’s market; pushing solutions Are sometimes seen by
the customer as intrusive or overlooked by the customer as the solution Gets lost due to
information overload. Pulling solutions has always been a part of most organizations. A
customer would visit the Organization and ask questions and someone would answer them.

Zamzam Bank is working towards ensuring sustained economic growth. The bank carries a huge
responsibility at its back and with the strong commitment of its shareholders, the board,
management, and professional employees; it primarily focuses on Sharia’s compliance, advanced
technology, and excellent customer service starting from the first day of its business. Currently,
the bank is progressing ahead with its effort to expand its branch network in the capital city and

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other parts of the country simultaneously by implementing digital solutions that have a far-
reaching impact on its cherished customers.

The bank is established to enhance financial inclusion with a special focus on the part of society
that is alienated from the financial system due to their religious beliefs or other factors. At the
time of its formation, ZamZam Bank managed to mobilize a subscribed capital of Birr 1.683
billion and a paid-up capital of Birr 872 million from 11,200 shareholders.

ZamZam Bank will be able to offer an increasing range of sharia’ compliant & all-inclusive
products & services through its qualified human resource and a state of the art technology.

Financial inclusion has become a top priority for the global banking community. The financial
sector is working hard to avail banking tailored to the particular business model to customers
worldwide who previously had scarce access, if any, to essential banking tools. Zamzam Bank,
the first full-fledged interest-free bank in Ethiopia, is looking to bring these modern solutions to
under banked areas to foster sustainable economic growth and is using Oracle Banking to
spearhead its digital core banking transformation.

"Zamzam Bank is committed to delivering excellent service to its customers with world-class
systems and processes fully aligned to Sharia’s principles," said Melika Bedri, CEO, ZamZam
Bank. "With Oracle FLEXCUBE now in place, we can drive profitability, increase customer
satisfaction, and tap into new markets while adhering to international standards stipulated by the
Accounting and Auditing Organization for Islamic Financial Institutions. This is a landmark
history to all who participated in the Sharia’s-Compliant core banking project, unique to our
bank and the industry."

 In 2018 Ethiopia issued a national proclamation that allows full-fledge interest-free banks to
operate in the country. Following the announcement, Zamzam Bank emerged as the first bank to
receive a full-fledged, interest-free banking license from the National Bank of Ethiopia. From
there, Zamzam has committed to implementing a customer-focused strategy centred on
advancing its banking technology and financial solutions to provide full-fledge interest-free
banking to society.

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 Finding a Sharia-compliant core banking solution was initially a challenge for ZamZam.
According to Sharia principles, all forms of interest are barred. Many core banking solutions
cannot accommodate these restrictions, which has historically left people excluded from
conventional banking offerings based on interest. That's why ZamZam turned to Oracle Financial
Services. Oracle FLEXCUBE for Islamic Banking  is transforming the way banks operate and
supports a wide range of products, including Wadih, Qard, and many related to Mudarabah
profit sharing, Ijarah (lease financing) Musharaka, Murabaha, and other financing products.

1.2 Statement of problem

Ferell and Hartline (2010) stated that an organization’s marketing strategy describes how the
firm will fulfill the needs and wants of its customers. It can also include activities associated with
maintaining relationships with other stakeholders, such as employees or supply chain partners.
Stated another way, marketing strategy is a plan for how the organization will use its strengths
and capabilities to match the needs and requirements of the market. A marketing strategy can be
composed of one or more marketing programs; each program consists of two elements a target
market or markets and a marketing mix (sometimes known as the four Ps of product, price,
place, and promotion).To develop a marketing strategy, an organization must select the right
combination of target market(s) and marketing mix (es) in order to create distinct competitive
advantages over its rivals.

Marketing strategy is a key part of overall corporate strategy, which is concerned with
developing plans for finding out what customers want and then efficiently meeting their
requirements. Everyone knows that a marketing strategy influences the company’s ability to
generate profits or to stay in business. Zamzam bank is a private owned and provider of banking
service in the country. It has the vision to be a world class banking service provider. The
banking sector is currently facing with some problem of poor marketing strategy practices. The
strategic marketing document of the company reveals that, it lacks a well-structured and well
formulated marketing strategy in order to fulfill the customer requirement. The possible cause
that the company couldn’t practice the strategies effectively is that mainly lack of competition in
the banking sector.

Even if the company has made a transformation program and reorganized in a new structure, the
marketing strategy of the company is not well formulated and developed. Due to this fact, the

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company couldn’t provide a competitive product and service to the customer. Finally, it might
have an impact on the company when the government allows different foreign companies to
enter in the market. For this reason it is difficult to win the market when stiff competition is exist
in the future.

The studies which related to the subject of the degree of customer satisfaction of the products
that provided by wholesalers in Ethiopia are few, and significance of customer satisfaction about
the retailers in Ethiopia are different from other countries because of demographic, social,
economic, political, and technological environment factors. Some factors that related to customer
satisfaction are important in some countries and less important in others, in issues that related to
retailing that offered by Ethiopian firms. Areas which were found to be particularly problematic
included knowledge and understanding of the degree of customer satisfactions.

Yet, in the current environment of increased competition with rapid market entry of new service
concepts and formats, the customer satisfaction also presents a challenge of a more in-depth
understanding of the complex relationship between the degree of services that provided by the
bank and customer satisfaction of these banks. Although the range and variety of products or
service available to customers have expanded, the management of the retailing relationship
continues to be problematic. In part this may reflect failures on the part of the retailers. In
addition, the researcher argues that such problems may also arise as a consequence of the
reluctance of some customers to participate in the retailing relationship.

This study arises from the need to assess the effect of marketing mix strategies on customer
satisfaction. These industry issues and problems demand that firms continually assess its internal
processes and capabilities to remain competitive in price as well as product and service quality.
A Customer satisfaction is an ambiguous abstract concept. Satisfaction is a crucial concern for
both customers and organizations including banks. The efficiency of banking sector depends
upon how best it can deliver services to its customers. In the present day, in Ethiopia, in order to
attract more customers, banks are required to continually improve the marketing mix strategies.
In this case the marketing mix strategies of the bank will definitely affect the satisfaction level of
the customer.

Therefore, this study would like to identify the range of effect of marketing mix on customer
satisfaction. Currently in the Addis Ababa, there are several types of bank service centers

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available which provide their service in different prices, quality, product type’s features, and
promotional strategy. . This study analyses the marketing mix and customer satisfaction towards
the purchasing of products/services.

1.3 Research question

 How much price does the customer intended to pay?
 Which distribution channel does the customer desire?
 What type of business promotion strategy is important to make the customer to have full
information?
 What type and which levels of products are meet the customer demand?

OBJECTIVE OF THE STUDY

1.4.1 General objective
The general objective of the study is to assess the effect marketing mix on customer satisfaction
in Zamzam bank.

1.4.2 Specific objective

 To determine products/service that meets the needs of customers
 To analyze impact of price the intended retailers willing to pay.
 To analyze impact of distribution channels the potential customer desire.
 To analyze impact of the business's promotion have on customers.

1.5 Significance of the study

Customers are now becoming increasingly conscious of their rights and are demanding ever
more than before. The changing needs of customers affect the expectation of value added
servicing for basic banking requirements. There is a great demand for banking services; speed,
service, quality and customer satisfaction which are going to become the key differentiator for
the successes of banking industry in Ethiopia.. Therefore, it is necessary for the zamzam bank get
useful feedback on their actual response time and customers’ service quality and perceptions of
banking, which will help the bank to take positive steps to maintain a competitive edge in the
banking Industry.

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1.6 Scope of the Study
Since the research intends to address the marketing mix strategy on customer satisfaction, the
chosen research problem is somewhat diverse, but the researcher will try to narrow down the
focus. The plan of the research is to gain a better understanding of the marketing mix strategies
in the head office of zamzam bank.

1.7 limitation of the study

Zamzam bank is planning to operate in different cities in Ethiopia, and currently has opened 45
branches in total. Geographical Scope: Due to time and resource constraint the study will only
focus on Zamzam bank head office, Addis Ababa even the number of branches currently
operating in Addis Ababa and regional districts.

1.8 Organization of the study

The study will be comprised of four chapters, a list of references. The four chapters include:
introduction and methodology, review of literature, data analysis and interpretation; and
conclusion. Chapter one is the introduction and methodology. It addresses the background of the
study, background of the company, statement of the problem, objective of the study (general &
specific objectives), scope of the study, and significance of the study, Delimitation of the study,
definition of key terms and organization of the study and finally in the methodology subtopic
the research methods for this study, research design to be used, the procedures of defining the
population, sampling frame, sampling technique, sample size determination, sources of data and
data collection instruments, and data analysis method are discussed.

Chapter two provides a review of related literature. It examines the effects Customer service,
operational performance and marketing strategies in different sectors around different countries
on customer satisfaction. Chapter three includes the data analysis and interpretation part. Lastly,
the last chapter four provides an overall summary of the research findings and provides the
conclusion recommendations to the results.

1.9 research methodoogy

1.9.1 Research Design and Approach
The researcher used an explanatory design which allowed to examine the effect of the
independent variable (marketing mix strategy) on the dependent variable ( customer satisfaction)

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moreover the research applied a quantitative research approach research since the study was both
on quantitative data gathered through questionnaire.

1.9.2 Population and Sample size

The target population of this research used active customers of Zemzam bank (head office). In
quantitative research, the need to sample is one that is almost invariably encountered.

From the population frame the required numbers of customers were selected in order to make a
sample. The researcher only focused on 316 permanent professional employees choosing a
method of convenient simple random sampling probability. The sample size has determined
using Taro Yamani” s (1964) statistical formula due to its simplicity to apply and have 95%
confidence level as follows

The sample size has determined using Taro Yamani” s (1964) statistical formula due to its
simplicity to apply and have 95% confidence level as follows:

N
n=
1+ N e2

Where: n = sample size to be determined

N = population of interest
e = error margin (0.05)

According to Human resource office report of Zemzam bank, from the total customers around
1500 has customers of head office. Based on this information we estimate the sample size as
follows:

1500
Where N=1500 e=0.05 then n= 2 =315.7≈ 316
1+ 1500(0.05)

Thus, 316 was sample size, accordingly using a convenient sampling technique, the above
sample respondents were selected from head office of Zamzam bank.

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1.9.3 Data Types and Method of Data Collection
In conducting this study, the researcher used primary and secondary data. The Primary data were
collected by means of a structured questionnaire and interview. The questionnaires will be self-
administered via the use of email, drop and pick later method to the customers in the
organization. According to Cooper and Schindler (2006) the use of structured questions on the
questionnaire allows for uniformity of responses to questions. The questionnaire was in 3
sections. Section 1 contained demographic information; Section 2 was a series of statements to
capture perception of marketing mix strategy approach, and Section 3 was for capturing
employees ‘self-rated performance. The key variables include the independent variables, which
are marketing mix namely, place, price, promotion, product (servece strategy) and customer
satisfaction. The scale used for customer satisfaction in order to measure them was the Multi
factor motivational Questionnaire developed by Avolio and Bass (1995) modified to fit the
context of the study. The second variable measured was the dependent variable which is
customer satisfaction based on a scale of Yousef (2000).

1.9.4 Types and Sources of data

In this study, both primary and secondary data were collected from primary and secondary
sources. The primary sources of data were customers of the center. Secondary sources were
published books, internet (web pages) and magazines of the organization.

1.9.5 Data collection method

Before collecting data through data collection tools, the researcher made an observation in the
center. This observation helped the researcher to have more insight and observations to the
environment. In additions to this, it arranged a friendly atmosphere along with respondents.
Primary data was collected by distributing scheduled questionnaire in which both closed and
open ended types of questions are found. Review of books, magazines, and browsing of in
ternate was made to gather secondary data.

1.9.6 Data analysis and presentation

Quantitative data gathered via questionnaire and from secondary data can be analyzed by
STATA latest version to see the effect of marketing mix strategy on customer satisfaction. The
researcher will use descriptive statistics (frequencies, percentage, mean and standard deviations)
to assess the effect of marketing mix strategy on customer satisfaction.

8
A regression model was used also to test the effect of marketing mix strategy on customer
satisfaction. These were to evaluate and understand the relationships between the dependent and
independent variables of the study. The two basic types of regression are linear regression and
multiple regressions. Linear regression uses one independent variable to explain and/or predict
the outcome of dependent variable, while multiple regressions use two or more independent
variables to predict the outcome. For this research we used the multiple regressions because our
model composes more than one independent variable. Based on the conceptual frame-work
below we formulate the following empirical model.

CS=α+ β 1PR + β 2PRo + β 3PL +β4 β 3Prmo+β6age+β7gender+β8exp+β9edu+ µt

+ β 4 Age+ β 5 exper + β 6 edu+ β 7 gender +e t

Where: CS customer satisfaction

PR is Price strategy

Pro is product strategy

PL Place strategy

Promo; is promotion strategy

Age is the age of employees’

Exper is experience of employees’

Edu is education level of employees’

Gender is the sex of employees’

α is the intercept of the model and

βs are the parameters coefficient.

µt is error term

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1.9.7 Ethical Considerations
The bank informed clearly about the importance of the study and all the information only used
for academic purposes. The researcher did not use unethical words during contact with the
responsible party, and the questionnaire protected the safety of respondents and employees'
identities and provided information. Moreover, all sources used in this study were duly
acknowledged.

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 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Theoretical Approach

2.1.1. Marketing Strategy Overview
Strategy is originally a Greek word coming from the military origins. Nowadays this word is
usually defined on two levels. First as general description: a careful plan or method or an
adaption that serves or appears to serve an important function in achieving evolutionary success
and second as its realization: the art of devising or employing plans or stratagems towards a goal,
or a variety of or instance of the use of strategy “or a plan of action resulting from strategy or
intended to accomplish a specific goal. (Ludikova, 2008) If an organization is to have any chance
of reaching its goals and objectives, it must have a game plan or road map for getting there. A
strategy, in effect, outlines the organization’s game plan for success. Effective marketing
requires sound strategic planning at a number of levels in an organization.(Ferell and Hartline,
2010). As Varadarajan (2010) defined that, Marketing strategy refers to an organization’s
integrated pattern of decisions that specify its crucial choices concerning markets to serve and
market segments to target, marketing activities to perform and the manner of performance of
these activities, and the allocation of marketing resources among markets, market segments and
marketing activities toward the creation, communication and/or delivery of a product that offers
value to customers in exchanges with the organization and thereby enables the organization to
achieve specific objectives.

2.1.2 Three Generic Strategies

Cost leadership

Porter (1990) pointed out that choosing a lower cost strategy means that the firm is able to
produce the product cheaper than its competitors and there can only be one cost leader. The
sources of cost advantage depend on the structure of the industry. It is necessary that the firm has

11
a broad target and serves more than one segment. A lot of companies may even operateupor
down streams in the industry. The firm often sells standard at acceptable quality and service.
According to Shapiro and Varian (1999) a firm that is able to sell more than other firms will have
the lowest average cost. This allows the firm to make money when others cannot. But to sell
more the firm will need to lower the price; this also means that the firm has a smaller profit on
each unit sold. If this works out the firm has to make up for the lost revenues in volume. In
traditional industries reducing the average cost of production is focusing on cutting down the unit
cost of production.

Differentiation

By choosing a differentiation strategy Porter (1990) means that the firm is able to provide unique
and/or superior value to the product more efficiently through quality, special features or after
sale service. There can be many differentiators in an industry. Differentiation allows the firm to
add a premium value to the product, which leads to a higher profit than that of the competitors.
The differentiated firm makes higher revenue per unit than the competitors, because of the
buyer’s special demand. Shapiro and Varian (1999) pointed out that if the firm’s strategy is
differentiation, the firm must add value to the product, thereby distinguishing the product from
the competing products.

Focus

As Porter pointed out that firms in the same industry can choose different competitive scopes in
the same segment. The basic choice is between a broad target and an arrow target within the
same segment. The narrow target is a well-defined market and the broad target is a larger market
defined in a wider perspective. According to Shapiro and Varian (1999) focus is achieved by
personalizing the product. If a company succeeds in creating a unique product it will have
breathing room to both personalize the pricing and to design the product. There are two ways of
adding more value to a unique product and thereby being able to focus on a narrow target. The
first one is to personalize or customize in order to generate more value for the customers offer
value adding services to achieve a closer relationship between the customer and the personalized
product. The second one is to establish pricing arrangements that capture as many of the values
as possible.

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2.1.3 Competitive Strategies
It is discussed by Porter (1983) that every company has a competitive strategy; either it is official
or unofficial to the market. There is a frame with four key factors that the companies can
formulate into a competitive strategy. The first one is based on the company’s strengths and
weaknesses and describes its assets and skills in comparison to its competitors. Financial
resources and technical skills are included in this key factor. Another key factor is the value of
the company’s employees. This factor gives the company the motivation and need to actually
take the strategy in to action. Together with the strengths and weaknesses it decides the inner
boundaries for which strategy the company successfully can adapt. The external conditions are
decided by the branch and the surroundings. The possibility of development and threats for the
company settle the competition with the risks and possibilities. The last key factor includes the
expectations from the society, the policy of the government, social commitments and
development of the norm. According to Davidson (2001), a company’s competitive strategy is
choosing a favorable industry. There are two main questions and they both have to work,
otherwise there is no meaning for the company to go in to the industry. The first one is the
profitability in long term and which factors that determine that. The second one is which
components that are affecting the company’s position in the market.

2.1.4 Elements of marketing Strategy

In order to achieve the marketing objectives, we need to have a strategy that includes different
elements. Here there are four major elements that are used in the literature to explain the detail of
marketing strategy. These are the Target market, Segmentation, Positioning and the marketing
mixes (Roger Brooks bank, 1994).

2.1.4.1 Segmentation
At its most basic level, the term “market segmentation” refers to subdividing a market along
some commonality, similarity, or kinship. That is, the members of a market segment share
something in common. The purpose of segmentation is the concentration of marketing energy
and force on the subdivision (or the market segment) to gain a competitive advantage within the
segment. As ferell and Hartline (2011) stated that, many firms today take segmentation to the

13
extreme by targeting small niches of a market, or even the smallest of market segments:
individuals.

2.1.4.2. Traditional Market Segmentation Approaches

According to Ferell and Hartline (2011) writes that many segmentation approaches are
traditional in the sense that firms have used them successfully for decades. Some organizations
actually use more than one type of segmentation, depending on the brand, product, or market in
question.

Mass Marketing- It seems odd to call mass marketing a segmentation approach, as it involves
no segmentation whatsoever. Companies aim mass marketing campaigns at the total (whole)
market for a particular product. Companies that adopt mass marketing take an undifferentiated
approach that assumes that all customers in the market have similar needs and wants that can be
reasonably satisfied with a single marketing program. This marketing program typically consists
of a single product or brand (or, in the case of retailers, a homogeneous set of products), one
price, one promotional program, and one distribution system. Mass marketing works best when
the needs of an entire market are relatively homogeneous.

Differentiated Marketing- Most firms use some form of market segmentation by dividing the
total market into groups of customers having relatively common or homogeneous needs, and
attempting to develop a marketing program that appeals to one or more of these groups. This
approach may be necessary when customer needs are similar within a single group, but their
needs differ across groups.

Niche Marketing Some companies narrow the market concentration approach even more and
focus their marketing efforts on one small, well-defined market segment or niche that has a
unique, specific set of needs. Customers in niche markets will typically pay higher prices for
products that match their specialized needs. (Ferell and Hartline, 2011) According to Ferell and
Hartline pointed out that, although markets can be segmented in limitless ways, the segmentation
approach must make sense in terms of identifiable, substantial, accessible, responsive, viable and
sustainable criteria.

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2.1.4.3 Bases for Segmenting Consumer Markets
Consumer markets can be segmented on the following customer characteristics.

2.1.4.3.1. Geographic Segmentation

Geographic segmentation divides the market into geographical units such as nations, states,
regions, counties, cities, or neighborhoods. The company can operate in one or a few areas, or it
can operate in all but pay attention to local variations. In that way it can tailor marketing
programs to the needs and wants of local customer groups in trading areas, neighborhoods, even
individual stores. In a growing trend called grassroots marketing, such activities concentrate on
getting as close and personally relevant to individual customers as possible.(Kotler and Keller,
2012).

2.1.4.3.2. Demographic Segmentation

In demographic segmentation, Kotler and Keller divide the market on variables such as age,
family size, family life cycle, gender, income, occupation, education, religion, race, generation,
nationality, and social class. One reason demographic variables are so popular with marketers is
that they’re often associated with consumer needs and wants. Another is that they’re easy to
measure. (Kotler and Keller, 2012). Age and life-Stage segmentation deals with segmenting the
market by age group like people less than 14. Family life cycle segmentation provide for the
market to be segmented into segments that are related to the change in pattern of consumption as
a person passes the life cycle like adolescent to young adult or bachelor to married person.
Gender segmentation is to segment the market in term of sex whether male or female. Income,
education and Occupation segmentation deals with the segmentation of the market by the salary
earned, level of education and work of the customers. Religion, race, generation, nationality, and
social class segmentation segments the market into group of customers having specific social
background.(Nasit, A, 2011).

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2.1.4.3.3. Behavioral Segmentation
Behavioral segmentation is the most powerful approach because it uses actual consumer
behavior or product usage to make distinctions among market segments. Typically, these
distinctions are tied to the reasons that customers buy and use products. Consequently,
behavioral segmentation, unlike other types of consumer segmentation, is most closely
associated with consumer needs. A common use of behavioral segmentation is to group
consumers based on their extent of product usage heavy, medium, and light users.

Heavy users are a firm’s bread-and butter customers and they should always be served well.
Marketers often use strategies to increase product usage among light users, as well as nonusers of
the product or brand. One of the best uses of behavioral segmentation is to create market
segments based on specific consumer benefits.(Ferell and Hartline, 2011).

2.1.4.3.4. Psychographic Segmentation

Psychographics is the science of using psychology and demographics to better understand
consumers. In psychographic segmentation, buyers are divided into different groups on the basis
of psychological/personality traits, lifestyle, or values. People within the same demographic
group can exhibit very different psychographic profiles.(Kotler and Keller, 2012). According to
Ferell and Hartline (2011), Psychographic segmentation deals with state-of mindissues such as
motives, attitudes, opinions, values, lifestyles, interests, and personality. These issues are more
difficult to measure, and often require primary marketing research to properly determine the
makeup and size of various market segments.

2.1.4.4. Bases for Segmenting Business Markets

Major segmentation variables for business market are:-Demographic, Operating Variables,
Purchasing Approaches, Situational Factors, and Personal characteristics. The demographic
variables are the most important, followed by the operating variables down to the personal
characteristics of the buyer.(Kotler and Keller, 2012). Business to Business market segmentation
is an important asset for a company. It enables the staff to manage operations more effectively
and to achieve the desired results and objectives. The degree to which segmentation is used in
industrial markets can vary and it depends on the changing conditions in its environment. It also
depends on the needs of an organization and its type of activities. (Hutt and Speh, 2001)
Industrial market segmentation is a decision making process that gives a firm an opportunity to

16
use its marketing resources correctly and effectively in order to implement its marketing strategy
and overall objectives. Business market segmentation, or in other words Industrial market
segmentation, is not that well developed compared to consumer segmentation. Even thoughmany
parts of consumer segmentation can be applied to industrial segmentation, there are several other
variables specifically applicable to industrial segmentation. (Croft, M., 1994).

2.2. Empirical study

An empirical study was conducted by Alphesh.A.Nasit (2011), in India, Gujarat state on
marketing strategy of telecom sector. The research has selected six telecom providers: BSNL,
TATA, Reliance, Airtel, Vodafone, and Idea for major cities of Gujarat state. It is based on
selected sample of telecom service subscribers, dealers and telecom service providers. This
research adopts a combination of primary and secondary source of information. The primary data
is collected through the questionnaire and personal interviews. Six major telecom operators are
selected: through a quota sampling and the sample size is 1200.respondents are selected for
administering questionnaire at the touch-points of these selected telecom operators in the
selected towns. Besides this, a sample of 30 questionnaires is collected from employees and 60
from the dealers of selected telecom operators. The finding of the study revealed that as the
following:

 There is positive influence of various product prices in marketing strategy.

 There is no perception difference but association with different company for different
product price.
 There is significant influence of product mix in marketing strategy. There are same uses
and but telecom service provider wise are different for value added services, broadband,
GPRS/internet, SMS, etc.
 There is significant influence of promotion mix in marketing strategy. Broadcasting and
print media are more effective for source of information to awareness of customers.

There is no significant relationship between marketing strategy and demographic variables. Age,
education, occupation and disposable income are major variables effects.

Anderson et al. (1976) and Laroche (1988), researchers of customer satisfaction underlying
position are the customer benefits of convenience and accessibility which are enabling factors

17
that make it easy for the customer to do business with the wholesalers. The business ability to
deliver these benefits on a continuing basis to its existing customers will probably impact on
customer satisfaction. Earlier research by Brownlie, (1989) has recommended that some
consumers have positive attitudes towards wholesale business based on dominant perceptions of
Convenience/ accessibility/ ease of use. In addition, Leonard and Spencer (1991) argue that
consumers perceive that distribution outlets are indicative of achievement and contribute towards
a positive organizational image. Figures of surveys have also shown that the costs of acquiring a
new customer are more expensive than retaining accessible ones. (Reichheld et al, 1990;
Reichheld, 1996). Investments in customer satisfaction, customer relationships and service
quality leads to profitability and market share (Rust and Zahorik, 1993). Customer satisfaction
and High quality service often outcome in more repeat purchases and market share
improvements (Buzzel and Gale, 1997). Customer satisfaction leads to customer loyalty and this
leads to profitability (Hallowell, 1996). The costs of customer acquisition are much higher than
the costs of retention (Reichheld and Sasser, 1990). Service quality is accepted as one of the
basics of customer satisfaction (Parasuraman, Zeithaml and Berry, 1994).

The service management literature discuss that customer satisfaction is the outcome of a
customer‗s perception of the value received in a transaction or relationship – where value equals
perceived service quality relative to price and customer acquisition costs (see: Blanchard and
Galloway, 1994; Heskett et al., 1990) – relative to the value expected from transactions or
relationships with competing vendors (Zeithaml et al., 1990). Similarly, research literature has
measured trust as a feature with a great influence on the degree of satisfaction at the level of the
relationship between producers and consumers through distribution channels (Anderson and
Narus, 1990).

Given that the customer complains, the business response can guide to customer states ranging
from dissatisfaction to satisfaction. In reality, anecdotal evidence suggests that when the service
provider accepts responsibility and resolves the trouble, the customer becomes ―bonded‖ to the
business (Hart et al., 1990).

Reichheld and Sasser (1990) have recognized the benefits that customer retention delivers to a
service firms. For instance, the longer a customer stays with wholesaling firms the more utility
the customer generates. This is a result of a number of factors relating to the time the customer

18
spends with a wholesaler. These comprise the higher initial costs of introducing and attracting a
new customer, increases in both the value and amount of purchases, the customer's better
understanding of the wholesaler, and positive word-ofmouth promotion. The survey by Leeds
(1992), who documented that approximately 40 percent of clients, switched wholesalers because
of what they measured to be poor service. Leeds further argued that nearly three-quarters of the
wholesaler‘s customers mentioned teller courtesy as a key consideration in selecting a
wholesaler. The survey also showed that increased use of service quality/sales and professional
behaviors (such as formal greetings) enhanced customer satisfaction and reduced customer
attrition.

Fornell (1992), in his research of Swedish consumers, observations that although customer
satisfaction and quality become visible to be important for all companies, satisfaction is more
important for loyalty in industries such as, insurance, , automobiles, mail order and wholesalers.
Cronin and Taylor (1992) undertook an empirical test of the reciprocity between satisfaction and
quality through a number of service industries. A favorable image is viewed as a critical aspect
of a company‗s ability to maintain its market place, as image has been related to center aspects
of organizational success such as customer patronage.

It is generally accepted that customer satisfaction often depends on the quality of product or
service contribution (Anderson and Sullivan, 1993). Oliver‗s (1993) review of the issues
suggests that service quality is antecedent to satisfaction and is non-experiential in nature (i.e.
like to attitude which can be formed from other sources such as word of mouth communications).
Overall consumer satisfaction thus reveals the general evaluation of the events carried out by a
given business in relation to expectations accumulated behind different contact between the
consumer and business (Bitner and Hubber, 1994). Customer satisfaction is an important
theoretical as well as practical issue for most marketers and consumer researchers (Piercy, 1994).

Parasuraman et al (1994), match the point that service satisfaction and satisfaction with price
were essentials in the overall satisfaction measurement. The measurements used in Hallowell‗s
survey were fairly comprehensive; concluding that all the basics measured had an impact on
overall satisfaction. But the service features of branch, staff and information were established to
be more significant. Reidenbach (1995) argued that customer value is a more viable factor than
customer satisfaction because it includes not only the usual benefits that most wholesalers focus

19
on but also a consideration of the price that the customer pays. Customer value is a dynamic that
must be managed. Customer satisfaction is merely a response to the value proposition offered in
specific products/markets (Reidenbach, 1995).

Levesque and McDougall (1996) indicate that customer satisfaction and retention are critical for
wholesalers. They study the major determinants of customer satisfaction (situational factors,
service quality, service features, and customer complaint handling), and future intentions in the
wholesales sector. Bloemer (1998) study how satisfaction, image, and perceived service quality
determine loyalty in wholesalers. Wholesalers lose satisfied clients who have moved, retired, or
no longer need certain services. As a result, retaining customers becomes a priority. Earlier
research shows, however, that longevity does not automatically leads to profitability (Colgate,
Stewart, and Kinsella, 1996). Factors related to service offerings are furthermore related to
customer satisfaction (Levesque and McDougall, 1996). As said by Levesque and McDougall
(1996), convenience and Competitiveness of the wholesalers are two main factors which are
likely to influence the overall satisfaction levels of a customer.

Study by Hallowell (1996), moreover examined customer satisfaction but in relation to loyalty.
Conversely, Levesque and McDougall (1996) comprehensively analyzed the effects of service
quality, service features and customer complaint handling on customer satisfaction in the
Canadian wholesaling sector. Their result proposes that satisfaction determinants in wholesaling
are driven by an amount of factors including service quality dimensions.

Reichheld (1996) suggests that unsatisfied customers may select not to defect, because they do
not expect to receive better service in a different place. Furthermore, satisfied customers may
search for other providers because they believe they might receive better service in another
place. Conversely, keeping customers is also dependent on a number of other factors.

Johnston (1997) forwarded the idea that wholesalers in general were in effect `barking up the
wrong there by improving service quality efforts that had small or no effect on improving
customer satisfaction. The study was one of the few examining customer satisfaction in the UK
wholesale setting, which focused on quality issues. Johnston (1997) suggests that satisfaction
/dissatisfaction with wholesalers does not stem from the similar elements. Rather, some elements
of service quality if enhanced, improve customer satisfaction however other elements may not

20
develop satisfaction but merely act to keep dissatisfaction at bay or at best, reduced
dissatisfaction alone. This trend of idea emanates from the hygiene factors of Herzberg‗s
motivation theory. Johnston recognized 18 determinants of service quality suggesting that certain
actions such as raising the speed of processing information and customers, delighted customers
whilst improving the reliability of equipment lessened dissatisfaction.

Press and his colleagues (1997) noted that the issues most highly linked to overall satisfaction
involve complaint management. Efficiently handling problems, being attentive to concerns, and
being capable to resolve troubles over the telephone emerged as critically vital to wholesalers
customer satisfaction. Tax and his colleagues(1998) used a four-item tool to measure satisfaction
with ―complaint handling‖. In their experimental studies Smith and Bolton (1998) used a
fouritem (restaurants) and a one-item instrument (hotels) to determine ―cumulative
satisfaction‖.

Relational benefits can then be considered as an essential factor for satisfaction with financial
businesses. for that reason, relational benefits meaning special treatment, confidence and social
benefits, which were identified by Gwinner and his colleagues (1998), would have a great power
on customer satisfaction with their habitual establishments.

In a further study by Krishnan, Ramaswamy and Venkatram (1999), satisfaction with perceived
product quality was suggested as a main driver of overall customer satisfaction.

Beckett et al. (2000) illustrate tentative conclusions as to why consumers emerge to stay loyal to
the similar financial provider, even though in many instances they hold less favorable views
toward these service providers. For instance, many consumers emerge to perceive small
differentiation between financial providers, making any change essentially worthless.

A number of researchers as well as Parasuraman, Zeithaml, Berry, Bitner, Bolton, and Drew
maintain the idea that customer satisfaction leads to service quality (Lee et al., 2000). This group
of researchers sees service quality as a long-run overall evaluation while the customer
satisfaction is a transaction-specific evaluation. Other researchers such as Cronin, Taylor,
Spreng, Mackoy, and Oliver suggested that service quality is an antecedent of customer
Satisfaction (Lee et al., 2000).

21
In the year 2000, the Cruickshank Report was unveiled (Cruikshank, 2000). The Report
categorically acknowledged that service quality was low in wholesaling in the UK, implying low
customer satisfaction. Arising partly from the conclusion of the Cruickshank Report and the fact
that, a large-scale study on customer satisfaction in the wholesaling sector in UK is scant and
examined.

Wong and Kanji (2001) discussed and experienced an extended customer satisfaction model in
the wholesaling industry in Hong Kong. They built the extended model on the thought that
evaluation of customer satisfaction in the wholesaling industry is a function of overall customer
expectation, perceived value and quality perception, whereas customer loyalty is a function of
both perceived value and customer satisfaction..

Duborvski (2001) described a multi-phases model of consumer‗s buying decision and the task of
customer satisfaction in achieving business excellence. The writer indicated that existing studies
confirm important connection between satisfaction levels, on one side, and repeated buying,
greater brand loyalty and spreading a positive view of the product, on the other side. Kristensen,
Juhl and Ostergaard (2001) calculated the relationship between customer satisfaction and
customer loyalty in Danish retailing business using the European Customer Satisfaction Index
(ECSI). The model links customer satisfaction to its drivers (e.g., customer expectation,
perceived company‗s image, perceived quality and perceived value) and, in turn, to its
consequences, specifically customer loyalty. Not like in the USA, Latin America, and South
Africa, Othman and Owen (2001) establish that responsiveness, compliance, and assurance, were
the dimensions that were most greatly connected with customer satisfaction in the Kuwaiti
wholesaling area.

Jamal and Naser (2002) propose that customer satisfaction is based not only on the decision of
customers towards the reliability of the delivered service, but also on customers ‗experiences
with the service delivery method. While Henning-Thurau et al. (2002) explore a non-significant
relationship between particular treatment and satisfaction, it is logical to expect that the benefit
of particular treatment will have a huge influence on satisfaction within wholesalers. This is due
to the information that special treatment provided by a financial service provider can be
perceived as a part of the overall service, so that this benefit will raise customer satisfaction.

22
information that special treatment provided by a financial service provider can be perceived as a
part of the overall service, so that this benefit will raise customer satisfaction.

Al Zaabi (2002) studied customer satisfaction with bill payment actions at Emirates
Telecommunications Corporation, which is identified as Etisalat. The study sample consisted of
individual customers and business customers. The author recognized a set of eleven satisfaction
attributes that were considered vital to Etisalat‗s customers with respect to service bill payment
and related actions. Ioanna (2002) additional proposed that product differentiation is impossible
in a competitive environment like the wholesaling industry. Wholesalers all over the place are
delivering the identical products. Wholesaling prices are fixed and driven by the marketplace.
Therefore, wholesales management tends to distinguish its company from competitors through
service quality. Service quality is an imperative factor impacting customers‘ satisfaction level in
the wholesaling industry. In wholesaling, quality is a multivariable idea, which includes differing
types of convenience, reliability, services portfolio, and critically, the staff delivering the service.

Deemas (2002) studied the satisfaction levels of a sample of customers of the Sharjah
Cooperative Society (SCS). The primary part asked the respondents to provide universal
background information (e.g., gender, age category, nationality and so on). The next part listed
the 21 attributes and asked respondents to specify their satisfactions with each attribute using a
5-point Likert-type scale. The outcomes indicate that UAE nationals and Arabs are the most
predominant in their contributions to overall satisfaction whereas non- Arabs are the lowest. In
addition, the outcomes show no difference in the levels of customer satisfaction between men
and women respondents.

Dove and Robinson‗s (2002) study indicated that wholesaling customers have much superior
satisfaction levels when they believe their troubles with the wholesalers have been resolved.
Even though studies have associated demographic variables with customer satisfaction with
services in general (How croft et al., 2002), only some studies have linked consumer evaluations
of service recovery to gender, age, or tenure with the service. On the other hand, Lewis and
Spyrakopoulos (2002) discovered that customers with stretched relationships are more
demanding of the service recovery; this may also mean that it takes more to satisfy them.
Equally, Hess et al. (2003) used three things to measure ―satisfaction with service performance

23
after recovery and McCullough et al. 2000 used a three-item instrument to measure ―final
satisfaction/post recovery satisfaction‖.

Another research (Chien et al. 2003) is also paying attention on measuring customer satisfaction.
Measuring factors are: perceived quality and value, customer expectation, satisfaction and
loyalty. etc., and they all influence customer satisfaction. Spathis and Constantinides (2003) also
shore up the relationship between quality and customer satisfaction based on preliminary en In
the investigation from Pan (2003) between four Far Eastern countries the benefits of Iso 9001
certification are: enhanced competitive edge since it is composed of ‗improved productivity‗,
‗quality improvements‗, ‗better customer satisfaction‗, ‗increased profit margin‗, and ‗cost
reduction‗; and enhanced public relations.

In a further study of wholesaling customers, Bosh off and Staude (2003) found that satisfaction
was impacted positively by communication, explanation, and atonement in that order while
loyalty was just associated with communication and atonement through the service recovery. In
their investigation, Stauss and Schoeler (2004) have established that effective service recovery is
very profitable. Alternatively, not a success to ensure customer satisfaction through service
recovery could lead to a decline in customer confidence, lost customers, negative word-of mouth,
possible negative publicity, and the direct cost of re-performing the service. terprise resource
planning.

Ho et al. (2005) similarly confirm that quality is the key factor and synonymous with the
consumer‗s ability to select from a wide array of products and features that provide a closer
match to person needs and desires. The introductions of quality standards into the Dutch firms
enhanced competitive advantage plus customer and employee satisfaction (De Vries and De Jong
2002).

24
 CHAPTER THREE

RESULT AND DISCUSSION

This chapter explained the analysis and interpretation of the findings resulted from the study of
assessment of the marketing, mix strategies in the bank of Zamzam. The analysis and
interpretation of data is carried out based on the results of the questionnaire, deals with a
quantitative analysis of data.

Fifteen pretests of the questionnaire were distributed to test whether the respondents understood
the questionnaire or not. And the results were not considered for this research analysis.
Accordingly, a total of 316 questionnaires were distributed, only 300 completed and received.
This means that 16 questionnaires were not collected and discarded from the analysis. The rest,
300 were used to interpret the results.

The questionnaire comprised in first section demographic data such as age, gender, job
title/position, year of experience, and education level of the employees’ productivity. The second
section scales examined and the assessment of marketing mix strategies. Respondents were
asked to indicate their responses to the agreement by choosing to agree, disagree, or neutral.

Once the questionnaires were collected from the respondents the researcher coded the responses
of the marketing mix strategies productivity into STATA. Then, descriptive statistics
(Frequency, percentage, mean and standard deviation) and inferential statistics correlation and
regression analysis were conducted to analyze and interpret the results by using STATA.

3.1 Demographic data of respondents

Descriptive statistics using frequencies and percentile used to analyze the demographic
characteristics of the respondents.

25
Table 1; demographic analysis

Data Option Frequency Percentage

Gender Male 154 51.33
Female 146 48.67
Job position Non-Managerial 232 77.33
Managerial 68 22.67
Education level of Certificate/diploma 15 5
employees’ BSc/BA 153 51
MSc/MB 108 36
PhD 13 4.33
Others 11 3.67
Age of the employees 20-29 64 21.33
30-39 100 33.33
40-49 90 30
50-59 46 15.33
>60 0 0
Experience/ years of service 1-5 18 6
in the banks 6-10 68 22.67
11-15 112 37.33
16-20 15 5
>20 87 29

Table 1 presents gender composition all participants responded to the questions and from the
total of 300 respondents 154(55.3%) were male and 146(48.67%) were female.

In terms of age of all participants responded except above 60 and, 100(33 %) between 31–40 age
category, 90(30%) between 30-39 age category, 64(21.33%) between 20-29 age and 50-59
covers the 15 %( 46).

In result depicts of job title/position and from all participants of 300 respondents 77.33% were
non-managerial employees and 22.67% of them were managerial professional employees.
26
Regarding work experience of all participants responded 112(37.33%) of the respondents worked
for the organization between 10-15 years, 68(22.67%) of the respondents worked between 6-10
years, 18(6%) of the respondents worked 1-5 years, 15(5%) of the respondent worked between
16-20 years, and the highest percentage of worker found above greater than 20 years.

3.2 Descriptive Statistics for four marketing mix strategies

The lower the mean, the more the respondents disagree with the statements and the higher the
mean, the more the respondents agree with the statements (Marczyk, et al., 2005). The statistical
values for items assumed that the mean (M) score up from less than the midpoint 3.0 as low
average, the mean score from 3.01 to 4.0 was considered as moderate, and the mean score 4.01
and above was considered as high by comparison bases of mean score of five-point likert scale
survey questionnaire. Descriptive statistics analysis and interpretation (using mean and standard
deviation) was conducted. Respondents indicated their responses using 5 points using Likert
scale strongly disagree, disagree, neutral to strongly agree. as it is described below

3.2.1 Descriptive analysis for price

Table 2; descriptive statistics for price result

Variable Obs Mean Std. Dev. Min Max

The price of the products are below competitive Prices 300 3.396667 1.363397 1 5
There is very low price Fluctuation on service 300 3.476667 1.289054 1 5
the store design enables me to move around with easeand beliefs 300 3.396667 1.156336 1 5
the layout that allows me to easily find the products I need 300 4.166667 .4541399 2 5
The price of the service is very cheap 300 4.113333 .40128 2 5
The bank considers marketing/economic conditions to set the price 300 4.11 .7067993 1 5
The price of the service is very cheap 300 3.876667 .7505553 1 5
The price of the services are above competitive price 300 4.066667 .7421082 2 5
The service charge is low according to competitive commission
300 3.273333 1.473951 1 5
charge
I am satisfied with the price set by the bank always 300 3.776667 1.426032 1 5
The price system of the bank attracts customers than the other 300 3.203333 1.327099 1 5
The bank sets affordable price by the poor which helps to take loan 300 3.28 1.128055 1 5

27
The price attracted other customers from the other bank 300 2.893333 1.275688 1 5
The price system is the leading price system than the others 300 2.793333 1.158344 1 5
The price of the bank makes me honest customer 300 3.31 1.218818 1 5
Source; own survey 2023

As it is seen in the above table the result showed that “the layout that allows me to easily find the
products I need” has the highest mean of 4.1666 and 0.45 standard deviations. Followed by The
“price of the service is very cheap” with a mean of 4.133 and 0.471 standard deviation. The other
question which has get the highest mean was” The bank considers marketing/economic
conditions to set the price’ with the mean of 4.11. Which show how the bank considers the
tough economic conditions to fulfill the customer’s interest?

The lowest question which is responded by the worker was ‘The price system is the leading price
system than the others” with the mean of 2.7 and 1.15 standard deviation preceded by” The price
attracted other customers from the other bank” with the mean of 2.9 and 1.27 standard
deviation. In general from the above table we understand the average respondent mean was
greater than 3, and we conclude that much of the respondents were ok about the price system of
the bank. This is good for attaining the requirement for good price system and to boost the profit
of the company.

3.2.2 Descriptive analysis for promotion

Table 3: promotion descriptive statistics

Variable Obs Mean Std. Dev. Min Max

The bank attractive promotional products 300 3.093333 1.328095 1 5
The bank do good promotions through different medias serious 300 2.883333 1.206056 1 5
there a reasonably applicable Good returns policies, standards 300 2.626667 1.227046 1 5
The bank has clear promotional activity regarding of brand,
300 3.103333 1.338642 1 5
service and products
Any change or improvement of service automatically promoted
300 3.02 1.272135 1 5
by the bank through promoting tools
The bank promotional tools are addressed to all customers 300 3.13 1.245635 1 5
The message of the promotion is clear 300 3.026667 1.492217 1 5

28
 The bank is applying moving forward promotions which helped
300 3.083333 1.092566 1 5
the bank to attract more customers
The promotion strategy is strengthen bank-customer relationship 300 3.446667 1.256617 1 5

From the above table we infer that the highest mean of respondent was goes with the question of
The promotion strategy is strengthen bank-customer relationship” with the mean 3.44 and
standard deviation 1.25 followed by the question “The bank promotional tools are addressed to
all customers” with the mean of 3.13 and 1.24 standard deviation. Applying promotion of works
is very nice for the follower to boost the customer satisfaction.

The question like “there a reasonably applicable Good returns policies, standards” was the
lowest mean from the items responded by the respondents with the mean of 2.6 and with
standard deviation of 1.22. The overall mean was greater than 3, and make the promotion
strategy of the bank is fine to boost satisfaction.

3.2.3 Descriptive analysis for place

Table 4: descriptive statistics for place

Variable Obs Mean Std. Dev. Min Max

The bank is located at a convenient place for transaction 300 3.923333 .6044336 2 5
Transportation for travelling and accessing service is easily
300 3.48 1.281304 1 5
available
The bank is big enough to carry well stock of diverse products 300 3.436667 1.190538 1 5
there are enough branches which can save time and transport
300 3.266667 1.128332 1 5
cost

As it is seen above a mean score of 3.9 and 0.6 standard deviation, customers responded The
bank is located at a convenient place for transaction.
Likewise, a mean of 3.48 and 1.28 standard deviation customers responded Transportation for
travelling and accessing service is easily available. The smallest mean was observed in case of

29
placement was a question of “there are enough branches which can save time and transport
cost” with the mean 3.26 and standard deviation 1.12.

3.2.4 Descriptive analysis for production (service)

Table 5; descriptive statistics for production

Variable Obs mean Std. Dev. min max

A good selection of products present.

300 3.166667 1.253312 1 5

Fast moving products have low stock outs 300 3.256667 1.302476 1 5
store provides you the service & products at the
300 2.953333 1.28712 1 5
right promised time
.
Source; own survey 2023

3.2.5 Descriptive analysis for the four marketing mix strategies

Table 6: descriptive statistics for four p’s

Variable Obs Mean Std. Dev. Min Max

overallsat~n 300 3.129333 1.082982 1 5
Price 300 3.542222 .6537053 2.066667 4.6
Promotion 300 3.045926 .9012689 1.333333 4.555555
Place 300 3.526667 .790647 1.5 4.75
Product 300 3.125556 1.160229 1 5

As it is seen in the above table it is easily can be observed that a mean score of 3.54 and 0.6
standard deviation, showed that price of the service, followed by placement with the mean of
3.52 and standard deviation 0.8, and, the least mean score of 3..125 and 1.16 standard deviation
of production. As the descriptive statistics showed price is the most dominant marketing mix
strategy in Zamzam bank. The lower the mean, the more the respondents disagree with the
statements and the higher the mean, the more the respondents agree with the statements.

30
3.3 Multicollinearity: variance inflation matrix
We can use the VIF command after the regression to check for multicollinearity. VIF stands for
variance inflation factor. As a rule of thumb, a variable whose VIF values are greater than 10
may merit further investigation. Tolerance, defined as 1/VIF, is used by many researchers to
check on the degree of collinearity. A tolerance value was between 1 and 10. It means that the
variable could be considered as a linear combination of other independent variables. The VIF
output of the research was 2.84 which is between 0 and 10, so that our model is fine regarding to
multicollinearity.

Table 7; multicollinearity test result

Vif
Variable VIF 1/VIF
promotion 4.19 0.238898
Product 3.53 0.282985
Price 3.29 0.304016
Place 3.18 0.314904
Edu 1.86 0.537696
Exp 1.01 0.994848
Mean VIF 2.84

3.4 Homoscedasticty
The first test on heteroskedasticity given by imest is the White's test and the second one given by
hettest is the Breusch-Pagan test. Both test the null hypothesis that the variance of the residuals is
homogenous. Therefore, if the p-value is very small, we would have to reject the hypothesis and
accept the alternative hypothesis that the variance is not homogenous. So in this case, the
evidence is against the null hypothesis that the variance is homogeneous. . Our p-value is very
low, So we can reject the null hypothesis, and our model does have the problem of
Heteroscedasticity. So as to detect the Heteroscedasticity problem, the researcher employees
robust method.

Table 8; hetroschedasticity test result

Source chi2 df P

31
Heteroskedasticity 56.59 27 0.0007
Skewness 12.60 6 0.0499
Kurtosis 2.67 1 0.1022
Total 71.85 34 0.0002

Breusch-Pagan / Cook-Weisberg test for heteroskedasticity

Ho: Constant variance
Variables: fitted values of overall satisfaction
chi2(1) = 0.01
Prob > chi2 = 0.9226

3.5 Model specification test

There are a couple of methods to detect specification errors. The linktest command performs a
model specification link test for single-equation models. linktest is based on the idea that if a
regression is properly specified, one should not be able to find any additional independent
variables that are significant except by chance. linktest creates two new variables, the variable of
prediction, _hat, and the variable of squared prediction, _hatsq. The model is then refit using
these two variables as predictors. _hat should be significant since it is the predicted value. On the
other hand, _hatsq shouldn't, because if our model is specified correctly, the squared predictions
should not have much explanatory power. That is we wouldn't expect _hatsq to be a significant
predictor if our model is specified correctly. So we will be looking at the p-value for _hatsq

Table 9; model specification test result

Source SS df MS Number of obs = 300

F( 2, 297) = 917.60
Model 301.834288 2 150.917144 Prob > F = 0.0000
Residual 48.8475792 297 .164469964 R-squared = 0.8607
Adj R-squared = 0.8598
Total 350.681867 299 1.17284905 Root MSE = .40555
overallsat~n Coef. Std. Err. T P>t [95% Conf. Interval]
_hat .5054483 .2083463 2.43 0.016 .0954262 .9154703
_hatsq .0838183 .0350882 2.39 0.068 .0147653 .1528712
_cons .6427393 .2798158 2.30 0.022 .0920663 1.193412

32
From the above linktest, the test of _hatsq is not significant. This is to say that linktest has failed
to reject the assumption that the model is specified correctly. Therefore, it seems to us that we
don't have a specification error. But now, let's look at another test before we jump to the
conclusion.
The ovtest command performs another test of regression model specification. It performs a
regression specification error test (RESET) for omitted variables. And for our model the ovtest
command indicates that there are no omitted variables. ovtest
Ramsey RESET test using powers of the fitted values of overall satisfaction

Ho: model has no omitted variables

F(3, 290) = 14.69

Prob > F = 0.5412

3.6 Normality
The study applied normal P-P Plot of regression Standardized Residua to test linearity seen in
figure 2. Since the points were symmetrically distributed around diagonal line, linearity pattern
was observed. In the normal probability plot it will be expected that points relatively straight
diagonal line from bottom left to top right. This would suggest no major deviations from
normality. Therefore, the straight-line relationship between the residuals and the predicted
dependent variable scores depicted that linearity was achieved.

3.7 Empirical analysis

Table 10; regression result

Source SS df MS Number of obs = 300

F( 7, 292) = 252.37

Model 300.9396 7 42.9913715 Prob > F = 0.0000

Residual 49.7422664 292 .170350227 R-squared = 0.8582

33
 Adj R-squared = 0.8548

Total 350.681867 299 1.17284905 Root MSE = .41274

overallsat~n Coef. Std. Err. T P>t [95% Conf. Interval]

Price .2125276 .0667348 3.18 0.002 .0811854 .3438697

promotion .3227587 .054186 5.96 0.000 .2161141 .4294033

Place .0131971 .0540584 0.24 0.807 -.0931964 .1195905

Product .5024054 .0387037 12.98 0.000 .4262318 .578579

Exp .0040534 .0041668 0.97 0.331 -.0041474 .0122542

Edu .0827189 .0422626 1.96 0.05 -.000459 .1658967

Age .0015331 .0030224 0.51 0.612 -.0044153 .0074815

_cons -.5368019 .1765655 -3.04 0.003 -.8843042 -.1892997

3.8 Interpretation of ANOVA table

Let's examine the output from this regression analysis.  As with the simple regression, we look to
the p-value, the F-test to see if the overall model is significant. With a p-value of zero to four
decimal places, the model is statistically significant. The R-squared is 0.85, meaning that
approximately 85 % of the variability of customer satisfaction is accounted for by the variables
in the model.

34
3.9 Regression Analysis
After taking into account the number of predictor variables in the model. The coefficients for
each of the variables indicates the amount of change one could expect in customer satisfaction
given a o ne-unit change in the value of that variable, given that all other variables in the model
are held constant.

3.10 Interpretation of regression coefficient

As indicates that the coefficient (B=0.2) indicates that the price strategy positively affected
customer satisfaction. This means that a one unit improvement in price to a 0.2 increase in
customer satisfaction. And has a p-value of 0.00, which is less than the acceptable value of 0.05,
which indicates that it has a significant effect on customer satisfaction.

Promotion has a coefficient (B=.32) that affects customer satisfaction positively and has a p-
value of .0000; it is less than to the acceptable value of 0.05, which indicates that it has a
significant effect on customer satisfaction.

production has a coefficient (B=-.54) that affects customer satisfaction positively and has a p-
value of .000, it is less than the acceptable value of 0.05, which indicates that it has a significant
and positive effect on customer satisfaction .

35
 CHAPTER FOUR

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

This chapter presents a summary of the research findings, conclusion, and presents
recommendation based on the analyzed data. The main objective of this research was to explain
the effect of marketing mix strategies on customer satisfaction in bank of Zamzam.

4.1 Summary of the finding

In the bank of Zamzam, price has highest mean score of 3.54 and 0.65 standard deviation,
followed by place with a mean of 3.52 and standard deviation of 0.8, production3.1 mean score
with standard deviation of 1.16 and promotion with the lowest mean score of 3.04 and 0.9
standard deviation. According to the descriptive statistics, price is the most dominant factor in
determination of customer satisfaction in zamzam Bank.

As indicates that the coefficient (B=0.2) indicates that the price strategy positively affected
customer satisfaction. This means that a one unit improvement in price to a 0.2 increase in
customer satisfaction. And has a p-value of 0.00, which is less than the acceptable value of 0.05,
which indicates that it has a significant effect on customer satisfaction.

Promotion has a coefficient (B=.32) that affects customer satisfaction positively and has a p-
value of .0000; it is less than to the acceptable value of 0.05, which indicates that it has a
significant effect on customer satisfaction.

36
Production has a coefficient (B=-.54) that affects customer satisfaction positively and has a p-
value of .000, it is less than the acceptable value of 0.05, which indicates that it has a significant
and positive effect on customer satisfaction

The overall study result revealed price strategy the relatively highest effect on overall customer
satisfaction, place is insignificant with positive sign, promotion is significant and this effect is
significant in both correlation and regression analysis. Therefore promotion, production and
price are significant with positive sign which shows how marketing mix strategy of ZamZam
bank determines customer satisfaction

4.2 Conclusion
In the present dynamic and turbulent business environment, marketing mix strategies roles
cannot be undermining. Managers play major roles, including planning, organizing, controlling
and managing. They engage in critical and strategic creative ideas that enable organizations to
reach their goals, and good marketing mix strategy is considered to be the most important
determinant that increases customer satisfaction and make the organization competent.

This paper intends to analyze the impact of marketing mix strategies on customer satisfaction by
using survey data collected through MFQ questioner. 300 hundreds samples was taken for the
analyzing the impact of marketing mix strategies on customer satisfaction in bank of ZamZam so
as to answer the basic objective of the research.

Quantitative data gathered via questionnaire and from secondary data can be analyzed by
STATA latest version to see the role of impact of marketing mix strategies on customer
satisfaction. The researcher will use descriptive statistics (frequencies, percentage, mean and
standard deviations) to assess customers’ perception towards marketing mix strategies and
overall satisfaction scales calculated to determine their satisfaction of marketing mix strategies.

A regression model used to test the influence of marketing mix strategies on customer
satisfaction. These were to evaluate and understand the relationships between the dependent and
independent variables of the study. The two basic types of regression are linear regression and
multiple regressions. Linear regression uses one independent variable to explain and/or predict
the outcome of dependent variable, while multiple regressions use two or more independent
variables to predict the outcome.

37
Reliability test done through Cronbach’s alpha from the reliability test price is 0.728, and more
reliable. Promotion style was moderately reliable with 0.670, while placement was less reliable
with Cronbach’s alpha of 0.436.

The questionnaire comprised in first section demographic data such as age, gender, job
title/position, year of experience, and education level of the customers. The second section scales
examined and the association between the two variables of independent (marketing mix
strategies) and dependent (customer satisfaction). Respondents were asked to indicate their
responses to the agreement by choosing to agree, disagree, or neutral, and to put the satisfaction
rate using the 1-5. From demographic respondent gender composition all participants responded
to the questions and from the total of 300 respondents 154(55.3%) were male and 146(48.67%)
were female.
In terms of age of all participants responded except above 60 and, 100(33 %) between 31–40 age
category, 90(30%) between 30-39 age category, 64(21.33%) between 20-29 age and 50-59
covers the 15% (46).

Based on the descriptive statistics showed price is the most dominant marketing strategy in
Zamzam bank. The paper also undertakes some statically measurement on the data that is used
for regression analysis, and concluded that the data has free from the multicollinearity. Omitted
variable problem and normality problem. Of course the paper face problem of Heteroscedastic,
but we use robust technique to solve it.

From the regression analysis we concluded that except place 9promotion, price and production)
strategy has a positive effect on boosting customer’s satisfaction in bank of Zamzam.

4.3 Recommendations
Considering the primary discoveries to this research since customers are the most important
assets of an organization. As such, it is recommended that bank of Zamzam should focus on the
customer needs and want.

 The bank should start improving the price package with a special focus on flexibility,
competitive and forward looking marketing mix strategies.
 The Bank leaders should create a platform for customers to increase satisfaction by
promote the product and service they deliver and Zamzam bank should work on its
38
 promotion approach and increase its competitive advantage and enhance higher customer
satisfaction.
 Having wider assortment of products at stores, has a great value for customer
satisfaction, so bank has to work on highly in its product diversification and maintaining
good stock for consumers. . Working on all Marketing mix strategy elements will assure
the company for the best customer satisfaction rate. The leaders in the bank should work
on developing alternative, quality and customer centered production.

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41
1.0 APPENDIX
QUESTIONNAIRE

QUESTIONNAIRE
My Name is Gizman muhi am a graduate of Unity University and I would like to express my
appreciation for your time to respond and fill this entire questionnaire which will be helpful with
the main purpose of my research work Titled “The impact of marketing mix strategies on
customer satisfaction in case of zamzam bank ”. As a member of zamzam bank, all the
provided information will be strictly secret, and no one will have access to the collected data and
your answers will be valuable and greatly appreciated.

Part I Demographic Information

1. Sex male [ ] female [ ]

2. Current job category within the organization. Managerial [ ] non-managerial [ ]Age
1) 20-30 years [ ] 2) 30-40 years [ ] 3) 40-50 years [ ] 4) 50-60 years [ ] 5) >60 [ ]
3. Highest level of education completed 1) certificate or diploma [ ] 2) BA/BSc degree [ ]
3) MA/MSc degree [ ] 4) PhD [ ] 5) others [ ]
5. Experience [ ]
Part II; marketing mix strategy questions
Disagre

Neutral

Strongl
y agree
disagre
Strong

Agree
e

PRICE related questions 1 2 3 4 5

42
1 The price of the products are below competitive
Prices
2 There is very low price Fluctuation on service

3 appropriate
the store design enables me to move around with
ease and beliefs
4 the layout that allows me to easily find the products
I need
5 The price of the service is very cheap

6 The bank considers marketing/economic

conditions to set the price
7 The price of the service is very cheap

8 The price of the services are above competitive

price
9 The service charge is low according to competitive
commission charge
10 I am satisfied with the price set by the bank
always
11 The price system of the bank attracts customers
than the other
12 The bank sets affordable price by the poor which
helps to take loan
13 The price attracted other customers from the other
bank
14 The price system is the leading price system than
the others
15 The price of the bank makes me honest customer

43
 Promotion related questions
16 The bank attractive promotional products

17 The bank do good promotions through different

medias serious
18 there a reasonably applicable Good returns policies,
standards
19 The bank has clear promotional activity regarding
of brand, service and products
20 Any change or improvement of service
automatically promoted by the bank through
promoting tools
21 The bank promotional tools are addressed to all
customers
22 The message of the promotion is clear
23 The bank is applying moving forward promotions
which helped the bank to attract more customers
24 The promotion strategy is strengthen bank-
customer relationship
Placement
25 The bank is located at a convenient place for
transaction
26 Transportation for travelling the goods is easily
27 The bank is big enough to carry well stock of diverse
available
28 there are enough branches which can save time
products
and transport cost
Product related questions
29 A good selection of products present.

30 Fast moving products have low stock outs

store provides you the service & products at the
31 right promised time

44
32) Determine your overall satisfaction from 1 to 5. __________________

45
46