Table Of Contents:
1 Commercial Bank of Africa’s (CBA) Background Information: 4
1.1 History: 4
1.2 Current Situation: 5
1.2.1 Banks In Kenya 5
1.2.2 Commercial Bank of Africa (CBA) Latest Development: 5
1.2.3 Services Offered By Commercial Bank of Africa (CBA): 6
1.2.3.1 Corporate and Institutional Banking: 6
1.2.3.2 Personal Banking: (Current and Savings Account): 6
1.2.3.3 General Services: 7
1.2.4 Situation that Lead To Marketing Research: 7
2 Literature Research: 8
3 Problem Definition: 11
3.1 Decision Problem: 11
3.2 Research Problem: 11
3.3 Research Objectives: 11
4 Research Design Methodology (Primary Data): 12
4.1 Exploratory Research (Qualitative Research): 12
4.1.1 Interviews: 13
4.2 Descriptive Research (Quantitative Research): 14
4.2.1 Survey Method That Can Be Used: 15
4.2.1.1 Telephone: 15
4.2.1.2 Mail: 16
4.2.1.3 Internet Survey: 16
4.2.1.4 Personal Method: 17
4.3 Issues Of Discussion: 18
5 Time Frame: 19
6 Study Limitations: 22
6.1 Random Sampling Errors: 22
6.2 Administrative Errors: 23
6.2.1 Data Processing Error: 23
6.2.2 Interviewer Error: 23
6.2.3 Interviewer Cheating: 23
7 Budget 24
8 References: 25
8.1 Books: 25
8.2 Brochures: 25
8.3 Journals (On-line): 25
8.4 Newspapers: 25
8.5 Personal Communication: 25
8.6 Websites: 26
9 Appendix: 27
9.1 Interview Questions: 27
9.2 Questionnaire: 28
Project Title:
To investigate ways of increasing the market share for Commercial Bank of Africa (CBA)
1 Commercial Bank of Africa’s (CBA) Background Information:
1.1 History:
It was in 1962, that the Commercial Bank of Africa (CBA) Limited was started in Dar-es-Salaam, in Tanzania. Branches were quickly set up in Kenya (in Mombasa and Nairobi cities) and Uganda (in Kampala city). In 1967,Tanzania nationalised all the banks. This made CBA to incorporated itself in Kenya (CBA, 2005, http://www.cba.co.ke).
In 1971, Uganda, sold off its branch in Kampala. This eventually made CBA to begin its business as the main subsidiary of the Societe Financiere pour les pays D’Outre Mer (SFOM), which was a consortium bank that was based in Sweden. SFOM had interests throughout Africa with financial institutions (CBA, 2005, http://www.cba.co.ke).
The SFOM consortium members included the Banque National de Paris, Bank Bruxelles Lambert, Commerz Bank, and The Bank of America. Eventually, Bank of America obtained shares from all the SFOM members. This made CBA to be a subsidiary of the Bank of America (CBA, 2005, http://www.cba.co.ke).
Around 1980 to about 1984, The Bank of America established new disciplines and global systems in CBA. Eventually in late 1984 the Bank of America sold the bulk of its shares to the local investors, but was still allowed to manage CBA, due to an agreement and a small amount of interest it still had for CBA (CBA, 2005, http://www.cba.co.ke).
The Bank of America finally sold all it’s shares so as to make CBA to be owned completely by Kenyan investors (CBA, 2005, http://www.cba.co.ke).
1.2 Current Situation:
1.2.1 Banks In Kenya
In 2003, Kenya officially had fifty-one banks. (Market Intelligence, 2003 from http://www.mi.co.ke/business_and_finance/banking/banking_survey.asp).
During the period of 2001 and 2003, six banks were either merged or went under liquidation. In 2001 Standard Chartered Bank was rated one of the best banks ever followed by Citibank and Commercial Bank of Africa respectively. In 2002, Citibank was rated the best bank followed by Standard Chartered. Commercial Bank of Africa retained its third position (Marketing Intelligence 2003, http://www.mi.co.ke/banking%202003/Banking%20Survey%202003.data/Library/survey%20tables/OVERAL%20RANKING.htm).
1.2.2 Commercial Bank of Africa (CBA) Latest Development:
On Monday 14th March 2005, the CBA shareholders bought the First American Bank of Kenya. This transaction is expected to conclude on 31st May 2005. CBA saw this as an opportunity to develop its brand, franchise and increase its asset base. CBA’s also aims to contribute and improve the development of the country’s economy (Mugambi, 2005).
CBA has eleven branches in Nairobi and three branches in Mombasa, which brings to a total of fourteen branches countrywide. When CBA completes its deal to buy First American, it will acquire all the four branches, one branch in Mombasa and three in Nairobi (Mugambi, 2005).
According to the Nation Radio Business News report, aired on Monday 14th March, 2005 at 6:30pm, CBA’s main objective of acquiring the First American Bank is to increase its market share from its current 3% to about 5.5%.
1.2.3 Services Offered By Commercial Bank of Africa (CBA):
CBA offer a wide variety of services. Some of these services include: -
1.2.3.1 Corporate and Institutional Banking:
This service is offered mainly for business organizations. Here a relationship manager is allocated to each of the customers (who in this case are the businesses institutions). Here the organization will have access to financing for their exports and imports, equipment and expansion financing, capital financing (which is short term), and term financing that will eventually help to facilitate the development for the business (CBA, 2005, http://www.cba.co.ke/cba/index.php?cid=2&sm=&cls=2&fla=$fla).
Corporate Banking customers will also get a current account, and will be offered transaction services (bulk payment processing and local and overseas remittances), wage processing, electronic banking, and paynet services (CBA, 2005, http://www.cba.co.ke/cba/index.php?cid=2&sm=&cls=2&fla=$fla).
1.2.3.2 Personal Banking: (Current and Savings Account):
This account is for joint account holders, individuals, and minors (if the account is opened for them in trust by either their parent or guardian) (Commercial Bank of Africa, n.d.).
Here they have access to their account in any CBA branches, get a free Visa Photo electron Card, Access to PC and Internet banking, Access to sms balance inquiry, hospital cash plan cover and 1million Visa ATMs worldwide (Commercial Bank of Africa, n.d.).
1.2.3.3 General Services:
An outline of the other services that CBA offer include Premium financing, Motor Loans, Insurance (only for some products), personal loans, home loans, Internet banking, Mobile Banking and access to ATM’s countrywide. CBA usually targets customers that have or earn Ksh.50, 000 and more (Anne Gicharu, Personal Communication, March 19, 2005).
1.2.4 Situation that Lead To Marketing Research:
Currently, CBA does not have a marketing department. This has lead to a decline of them producing less national-wide advertisement, through the mass (and print) media. People who have just ventured into the business world thus are not fully aware about the bank and the services it offers. These people therefore go to other banks that are frequently advertised and known like The Standard Chartered, Barclays and The National Bank of Kenya (Anne Gicharu, Personal Communication, March 19, 2005).
CBA usually promotes its services through personal selling to the corporate and institution businesses. This is because through personal selling, the bank is able to customise the promotional message, to fit the potential-customer’s needs, so as to convince them to join the bank, and at the same time, the potential customer will be able to inquire about the services offered (Anne Gicharu, Personal Communication, March 19, 2005).
CBA also advertise through sponsoring events like the Dettol Heart Run, so as to show the community that they care about people around them. However all this has not been so effective as only a few people have joined the bank (Anne Gicharu, Personal Communication, March 19, 2005).
2 Literature Research:
According to Levesque and McDougall, (1996), (cited by Bloemer, Ruyter and Peeters 1998), the financial (banking) sector has for the past ten years gone under drastic changes. This characterised by strong competition, increased deregulation, and lack of growth in the primary demand of the (financial) banking industry. Customer relationship is also starting to decline.
Meidan, (1996), (cited by Bloemer, Ruyter and Peeters 1998), states that this financial competition has made financial Institutions to come up with come up with different strategies like introducing new innovative services and products to retain their customers. However when a bank comes up with a new innovation, the competing banks and financial institutions are most likely to copy. Bloemer, Ruyter and Peeters (1998).
This can also be seen in the Kenyan financial Market, where nearly all Kenyan banks and financial institutions have come up with innovative services like Internet banking and mobile banking which were not available until recently. Their aim is to attract new customers, and increase market share so as to avoid making losses to the more than fifty-one financial institutions (including banks) available currently in Kenya.
Commercial Bank of Africa (CBA) aims to increase its market share. This can usually prove to be very difficult due to the fact that CBA has many competitors that have successfully managed to promote (advertise) their products to the public, thus gaining public trust.
So as to increase their market share, CBA could extensively promote the services they offer so as to create awareness. This promotion could eventually, bring in more people into the bank.
According to Worcester (2005), corporate advertising should be based on: awareness, persuasion, Involvement, and action. If all this is done properly, awareness could lead to trust, Trust is achieved when the potential customer sees the advertisement and is captivated by it. Interaction with the bank (organization) can make the potential customer to be a member of the bank (transaction). Later on if all goes well, and the bank provides good services, the customer is will be satisfied, and they will end up being loyal towards the bank.
This can be illustrated in the chart below: -
Worcester (2005, p 11) http://0-iris.emeraldinsight.com.library.ecu.edu.au/vl=9260312/cl=41/nw=1/fm=html/rpsv/cw/mcb/02652323/v15n5/s1/p146) online version
Due to emerging of many banks and increased banking demand, banks have to improve their images as well as promoting their services to increase their share in the market. Ways that are used by various banks to improve their image as outlined by Worcester (volume 15, number 5, 1997, pp146-152), are: -
· “Noting the institutional necessary publics.
· Finding out how stakeholders rate the bank.
· Identifying misunderstood facts and information.
· Ensuring that corporate finances are properly managed.
· Improved Communication channels.
· Overtime and its effect to the image of the bank”.
With the emerging of many commercial banks in the country commercial banks are left with no alternatives other than to change their operational strategy. Each bank need to create a well-equipped marketing department, which will enable it to met the competitive edge. To achieve this they need to improve their reputation, which can be achieved through the following means: -
· Satisfying their customer through production of high-tech products/services beneficial to both personal and corporate customers.
· Introducing the most recent technology like Internet banking where customers can access their services from home or offices.
· Recruiting, training and maintaining the most qualified personnel who are trustworthy, respected and with ethical standards so as to maintain and offer best services to the customers”. (International journal of banking and marketing, vol14 number 6,1996, pp12-22.)
3 Problem Definition:
Here the problem can be seen either as an actual problem or as an opportunity to the organization. In this case CBA’s decision problem is viewed as an opportunity.
3.1 Decision Problem:
The management’s main objective is to look on how to increase the market share.
3.2 Research Problem:
The research problem refers to the main areas that will be mainly examined in the research. This research will mainly focus on the effectiveness of products and services currently offered by the bank and will also look at the effectiveness of current advertising undertaken by the bank.
3.3 Research Objectives:
The research objectives will be: -
¨ To determine the awareness people have of C.B.A. through its current advertising methods.
¨ To determine how consumers react and feel towards the various promotion methods undertaken by other banks.
¨ To determine what motivates consumers to join C.B.A. or other banks.
¨ To determine the perceived image of C.B.A. bank.
¨ To determine the general satisfaction of C.B.A. consumers.
4 Research Design Methodology (Primary Data):
4.1 Exploratory Research (Qualitative Research):
The primary data for the (qualitative) research will be collected mainly through communication with CBA’s managers, employees and banking customers. Communication refers to when a person sends a message to another person, and then gets feedback from that person about the message they sent (Zikmund, 2003). Communication will help the researchers in understanding what makes banking customers behave the way they do. Observation, [which is “the systematic process of recording the behavioural patterns of people, objects, and occurrences as they are witnessed” (Zikmund, 2003, p 723)], can lead to the wrong conclusions on why the customer is behaving in a certain way.
Communication will help the researcher in knowing the actual problems the bank is going through, how the bank is trying to cope and solve these problems, and in understanding what makes a customer go to a certain bank.
Communicating with the customers or the bank employees in the research can be done through depth interviews or focus group interview.
Depth interviews are usually extensive and unstructured. Here the interviewer (researcher) looks for in-depth answers (Zikmund, 2003).
Focus Group questions are also unstructured. These interviews are conducted with a group of people. This group contains only a few people (Zikmund, 2003).
4.1.1 Interviews:
Focus groups enable researchers to get more candid responses from the group of people being interviewed. This because respondents realise that the issues being raised in the discussion are not being identified with them, and this gives them a feeling of security. Questions are answered more quickly, and contain more information than depth interviews (Zikmund, 2003).
However in this research, Depth interviews were seen to be more adequate for the research than focus groups interview. This was because it was found that it would be difficult to get banking customers together as a group, since they are always are in a hurry to go back to their work, or to withdraw or deposit money. The researcher will also be able to modify the interview questions, so as to get more detailed information from the bank customers
The participants that will be involved in the interview will be mainly people who keep their money in the Banks. This is because they will help the interviewer in knowing what they like and dislike about the services offered by the current bank they are in. The interviewer can use this information to know what CBA bank can do to increase its market share by bringing in more customers.
The interview will also look at people who are aged between sixteen and twenty years. People in this age gap are sometimes started for bank accounts by their parents or guardians. This will later influence whether they will stick to the bank they currently are in or whether they would like to move to a better bank in the future.
The main bulk of the interviews will however focus on working businessmen and businesswomen as they are the main customers for banks, they will be around 25 years onwards. Older people around 75 years will also be interviewed, since most are known to keep their money in the bank during retirement.
4.2 Descriptive Research (Quantitative Research):
The questionnaire will contain three types of scale of measurement. First there will be nominal. Here an object is assigned for a number, and the number is not used for any mathematical purposes. An example can be a question giving a respondent with the option of: -
1.Yes and
2.No.
Ordinal scale of measurement will be used to assist the respondent to rank the objects according to how much they like or appreciate them. E.g. a question can ask the respondent to rate lending services offered by the bank. If the respondent grades it as number one, this shows that they do not like the lending service. If they grade it number ten, this shows that they like the lending service.
Lastly Interval scale of measurement will be used, to give a set of interval of numbers so as to eliminate too many options for the respondent. E.g. a question that will be asking the respondent for their age, the ages will be put into categories, of nine (10-19 years, 20- 29years) instead of listing all the ages one by one.
Ratio is also a scale of measurement, but it will not be used in this research. This is because there will no information that will need absolute statements that need exact measurement. Ratio has a true zero and is mostly used to show exact figures, e.g. for sales and weight.
The questionnaire will be given to 50 people. These people will be mainly businessmen and businesswomen (between twenty and seventy years). Students who own bank accounts and are above fifteen years will be included in the research. Retired people (aged around sixty and eighty years) who still have bank accounts will also fill in the questionnaires.
The questionnaire will have a total of twenty-three questions. All the questions will take approximately three to four minutes to answer. Branching questions will also be available in the questionnaire, so as to guide respondent to other questions in the questionnaire.
The questionnaires will be administered at the Central Location Intercept (in Westlands), where the Commercial Bank of Africa is situated.
The sampling technique that will be mainly used will be Judgement. The questionnaires will be distributed at the various bank branches in Westlands, Village-Market, and Town, to see if all the people have the same characteristics, in banking choices.
The main aim of the questionnaire will be to determine the quality of services offered in CBA compared to other banks, and the effectiveness of CBA’s advertisements.
4.2.1 Survey Method That Can Be Used:
4.2.1.1 Telephone:
Telephones have the main advantage of having a wide distribution. This is because many people usually own telephones (e.g. in Kenya, many people own mobile phones). Telephones also provide speed in the collection of data. This is because many telephone calls can be conducted over a short period of time (Zikmund, 2003).
However, using the telephone to conduct both the interview and questionnaire was seen as inappropriate because the (telephone) infrastructure has not yet fully developed in Kenya. Not many people have landlines, since they have opted to have mobile (cell) phones instead. Calling a mobile phone is very expensive. People who have mobile phones may be un-able to answer the questions, especially if they are doing something important or are in an in-secure place.
Customers who have landline telephones especially in offices might be too busy to answer the interviews or questionnaire, and might ask a representative (e.g. a secretary) to answer for them the questions. This could lead to inaccurate or incorrect responses, as they might not have a clear idea on the topic.
4.2.1.2 Mail:
A mail survey is when a researcher sends a questionnaire to the customers through the mail. The questionnaire is self-administered, since the customers fill it in by themselves and then sends it back to the researcher (Zikmund, 2003).
Mail questionnaire have the main advantage of being flexible. This is because they can reach customers who live in isolated areas, where researchers might find it difficult to physically reach them, or cannot easily be reached through the telephone. Mail questionnaires are answered at the respondents’ convenience, which gives them time to reflect on their replies before writing them down. Respondents will also feel more comfortable since they will be anonymous to the researcher, which will make them feel more free to write what is on their mind without fearing being judged by the researcher (Zikmund, 2003).
However, the mail system in Kenya is very slow. A letter might reach the recipient in a month’s time or more. This means that the researcher will waste a lot of time waiting for the reply. Most people also ignore or simply refuse to answer research questions asked through the mail, which means that the researcher will get very few respondents.
4.2.1.3 Internet Survey:
Internet Survey is when a researcher posts a questionnaire on a website for people (respondents) to answer. It is also self-administered. It allows researcher to reach many people all at once.
However, most customers in Kenya hardly take time to answer Internet surveys as they consider them a waste of time, since they are busy checking their e-mail or doing research.
4.2.1.4 Personal Method:
In-Home
Most people in Kenya like their privacy, and will not want to be interviewed or given questionnaires in their homes by strangers. However this can work only if the researcher is known in the neighbourhood. This can cause the researcher to get very little information on the topic at hand, due to few respondents.
An in-home interview is seen as very effective because both the respondent and the interviewer will feel relaxed and at ease when answering the questions in a homely environment.
Central Location Intercept
This was seen as the most appropriate method to conduct the survey. This is where the researcher will go and conduct interviews to the customers located within and around the premises of CBA. Here the researcher would get an immediate response (unlike mail), from people who go to CBA or the neighbouring banks’ (Barclays, Standard Chartered, or KCB) customers.
This method was also seen as cheaper, since there would be no major charges to pay for transport, since all the banks (Barclays, Standard Chartered, KCB and CBA) are located very close to the school, AUSI).
However, this method could have some limitations. This is because customers located at the bank will be busy either going back to their work or withdrawing and depositing money and therefore might not get time to answer the questionnaire or the interview. The customers might also refuse to answer the questions because they feel insecure, due to the fact that they have just dealt with money, and might feel suspicious.
4.3 Issues Of Discussion:
The questions that will be discussed both in the interview and questionnaire will cover the research objectives. These interview questions and questionnaires are found at the appendix of this proposal.
5 Time Frame:
Week Date Activity
1 9th – 15th March 2005. 1. Look for suitable organization to conduct research.
2. Evaluate possible organizations.
2. 16th – 22nd March 2005. 1.Post a letter requesting if organization will allow a research to be conducted for them.
2. Review the organizations problem definition (decision problem, research problem and objectives).
3 23rd – 29th March 2005. 1. Research about the organization (CBA’s) background information.
2. Research on secondary information about banks from journals.
3.Come up with a budget.
4.Come up with methods to conduct the research.
5.Come up with interview questions.
4. 30th March-5th April 2005. 1.Conduct interviews.
2.Type out the responses for the Interviews.
3. Speak to CBA employers and Employees.
5. 6th – 12th April 2005. 1. Start typing proposal.
2.Brainstorm possible questions for questionnaire.
3.Decide on the sample size of the people to be given questionnaires.
4. Decide on characteristics required by the people answering the questionnaire.
5. Decide on technique to be used when answering the questionnaire.
6. 13th – 19th April 2005. 1. Refine draft questionnaire.
2. Decide on the best method of distributing the questionnaire.
3. Test the questionnaire.
4. Finnish typing proposal.
7 20th – 26th April 2005. 1. Give questionnaire to be answered by people.
2. Start coding SPSS.
3. Start looking at requirements for the report.
8 27th April – 3rd May 2005. 1. Continue distributing the questionnaire to be answered.
2.Start writing the report.
3.Start coding received questionnaires on SPSS.
9 4th – 10th May 2005. 1. Must have received all questionnaires.
2. Continue on updating the report.
3.Continue to put data on SPSS
10 11th – 17th May 2005. 1. Finnish putting the data on SPSS.
2. Start analysing the data on SPSS.
3. Update the report.
11. 18th – 24th May 2005. 1.Start typing presentation slides.
2. Complete typing the report.
12 25th – 31st May 2005. 1. Finnish typing the presentation slides.
2. Practice for the presentation.
3.Finally present the work.
4.Check the report for any corrections.
5.Hand in the report.
6 Study Limitations:
The research will however might go through some limitations that may affect the accuracy of the results.
6.1 Random Sampling Errors:
These errors occur due to variations in the sample data (Zikmund, 2003).
This includes respondent errors. There are two types of respondent errors. They are, Non-Response Error and Response Error. Non- Response errors include non-respondents error, where people could refuse to cooperate. Here people could refuse to answer some questions like information relating to the amount of income they receive per month or their age (Zikmund, 2003).
Customers could also answer questions with a certain incline that does not represent the truth completely. This is called a response bias. Here the answers are misinterpreted or falsified. A good example is when people agree with all the questions on the paper, e.g. if asked if they are happy with the current services offered by the bank, they will automatically choose the ‘Yes’ answer, without thinking much of the question. This is usually called acquiescence bias (Zikmund, 2003).
The researcher (interviewer) could sometimes influence the way the respondent answers the question. The presence of the interviewer could make the respondent modify their answer so that the interviewer does not see them as un-usual. This is called Interviewer bias (Zikmund, 2003).
Social desirability bias is also a form of response bias. This is when people try to create a good impression in the interviewers presence. A good example can be when respondents are answering a question about the amount of income they earn per month. The respondents may give an answer of a higher income than what they truly receive, especially if they are planning on going to a better paying job in a few months or years to come (Zikmund, 2003).
6.2 Administrative Errors:
This refers to errors caused by “ the improper administration or execution of the research task” (Zikmund, 2003, p 195), by the researchers.
6.2.1 Data Processing Error:
This is when the researcher codes the data received from the interview or questioner wrongly on the computer. E.g., a researcher can code the age of a respondent wrongly on the computer (Zikmund, 2003), and this might affect the end result of the survey conducted.
6.2.2 Interviewer Error:
This can occur when the interviewer incorrectly records the responses from the survey (Zikmund, 2003).
6.2.3 Interviewer Cheating:
This is when the interviewer fills in questions that were left out by the respondent (Zikmund, 2003).
7 Budget
The purpose of the Budget is to help in determining the approximate cost that will be needed to conduct the whole research, write the proposal and report for Commercial Bank of Africa.
Item Cost (Ksh)
Transport (to CBA and Customers) 1,000
Binding 200
Printing 2,000
Researching Online (secondary Data) 2,000
Photocopying 2,800
Total 8,000
8 References:
8.1 Books:
¨ Hornby, A. (1998). Oxford Advanced Learner’s Dictionary, Special Price Edition, China, Oxford University Press.
¨ Zikmund, W. (2003). Exploring Marketing Research, Ohio, Thomson South-Western.
8.2 Brochures:
¨ Commercial Bank of Africa, (no date). Personal Current and Saving Accounts [Brochure]. Nairobi, Kenya: CBA.
8.3 Journals (On-line):
¨ Bloemer, J., Ruyter, K., Peeters, P. (1998) Investigating Drivers of Bank Loyalty: The Complex Relationship Between Image, Service Quality and Satisfaction. International Journal of Bank Marketing, 16, 276-286. Retrieved April 10 2005 from Emerald Database.
8.4 Newspapers:
¨ Mugambi, K. (2005, March 15). CBA to acquire First American by end of May. The Daily Nation, p 22.
8.5 Personal Communication:
¨ Gicharu, A., March 19, 2005, Commercial Bank of Africa.
8.6 Websites:
¨ C.B.A., (2005). History Background. Retrieved March 11, 2005, from C.B.A. website: http://www.cba.co.ke
¨ C.B.A., (2005). Corporate Banking. Retrieved March 11, 2005, from C.B.A. website: CBA, 2005, http://www.cba.co.ke/cba/index.php?cid=2&sm=&cls=2&fla=$fla
¨ Market Intelligence, (2003). The MI Banking Survey 2003. Retrieved April 5, 2005 from the Market Intelligence website: http://www.mi.co.ke/business_and_finance/banking/banking_survey.asp
¨ Market Intelligence, (2003). Overall Ranking. Retrieved April 5, 2005 from the Market Intelligence website: http://www.mi.co.ke/banking%202003/Banking%20Survey%202003.data/Library/survey%20tables/OVERAL%20RANKING.htm
9 Appendix:
9.1 Interview Questions:
1. Which bank do you go to?
2. How did you know about the bank?
3. What is your general opinion about banking advertisements?
a. Do you feel that banks should advertise themselves more?
b. Should they use other means of promoting themselves?
(Which means should they use more)?
4. If you want to know about banking information, how do you get it?
a. Do you listen to banking advertisements only when you need or want to or do you prefer being informed about banks on a current basis?
5. What makes you keep on using this bank and not any other bank?
6. How would you rate this bank compared to other banks?
7. How do you feel about the services currently offered by this bank?
a. (Are you satisfied with the services provided to you?)
***
For Non-C.B.A. Customers:
Two Questions
1. Have you heard about Commercial Bank of Africa (CBA)?
2. Do you know what services are offered in Commercial Bank of Africa CBA?
9.2 Questionnaire:
1. What Bank do you use? (Write the main). ____________________________________________________________
2. How did you know about the bank? (Select one).
i) Reference (can be from friends/family/or work)
ii) Magazines
iii) Newspaper
iv) Radio
v) Other-Specify ___________________________________________
__________________________________________________________
__________________________________________________________
3. How would you rate the services offered by your bank? (Circle one number e.g. 2 ).
Lending
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
ATM
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
Customer Service
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
Interest Rates on Savings
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
4. For how long have you used the current bank you are in? (Please tick one ü ).
i) 1-4years
ii) 5-9 years
iii) 10-19years
iv) 20 years and over
5. What motivates you to keep to your bank? (Select one).
i) Good quality Services
ii) Low Lending Interest Rates
iii) Good Interest Rates on Savings
iv) Low Bank charges
v) Location
vi) Other (Specify) __________________________________________
___________________________________________________________
6. How does your bank usually inform you? (Select one).
i) Letter/Telephone
ii) Newspaper Advertisements
iii) Brochures
iv) Television Advertisement
v) Radio Advertisement
vi) Other ___________________________________________________
____________________________________________________________
7. What do you think is the best way that the bank can inform you? (Select one).
i) Letter/Telephone
ii) Newspaper Advertisements
iii) Brochures
iv) Television Advertisement
v) Radio Advertisement
vi) Other ___________________________________________________
____________________________________________________________
8. What would mostly influence you to select a certain bank? (Tick one). ü
i) Reference from family/friends or workplace.
ii) Exhibition/Seminar held by the bank
iii) Television Advertisement
iv) Newspaper Advertisement.
v) Radio Advertisement.
9. Were you in another bank before? (Pease tick one, e.g. ü ).
i) Yes (If yes, go to number 10).
ii) No (If no, go to number 11).
10. What was the main reason that made you leave your former bank? (Select one).
i) Inconvenient location
ii) Poor Services
iii) Few Services
iv) High Bank Charges
v) Poor Branch Distribution
vi) Low Interest Rates
vii) Good Interest Rates For Savings.
viii) Low Lending Interest Rates
ix) Others _________________________________________________
_______________________________________________________
_______________________________________________________
11. Do you use Commercial Bank of Africa (CBA)? (Please Tick one). ü
a. Yes (If yes, go to number 12 and 13).
b. No (If no, go to number 14).
12. How do you generally rate the services offered to you in CBA. (If possible,
compare to other Banks you know). (Please circle one number e.g. 2 ).
Lending
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
ATM
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
Customer Service
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
Interest Rates on Savings
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
13. What can the bank do to make the services better? (Select one).
a. Nothing needs improving
b. Better customer service
c. Lower Bank Charges
d. Other __________________________________________________
___________________________________________________
14. Have you heard of Commercial Bank of Africa (CBA)? (Tick one). ü
a. Yes (If yes, go to number 15 and 16 below).
b. No (If no, go to number 17).
15. How did you hear of CBA? (Select one).
a. Reference (can be from friends/family/or work)
b. Magazines
c. Newspaper
d. Radio
e. Other __________________________________________________
________________________________________________________
16. Why haven’t you joined CBA? (Please select one).
a. I don’t know much about it.
b. It is too expensive for me
c. I’m satisfied in my current bank.
d. Other _____________________________________________
______________________________________________
17. What type of advertisement does your bank mainly carry out? (Select one).
a. None
b. TV advertisements
c. Radio Advertisements
d. Newspaper advertisement
e. Other ___________________________________________________
________________________________________________________
18. Is it effective? (Tick one). ü
a. Yes (If yes, go to number 20).
b. No (If no, go to number 19).
19. What method of advertising do you think they should use? (Select one).
a. TV advertisements
b. Radio Advertisements
c. Newspaper advertisement
d. Other ______________________________________________________
_____________________________________________________
_____________________________________________________
20. What do you think of banking advertisements in general? (Select one).
a. Boring
b. Interesting
c. Other __________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
21. What is your Gender? (Tick one) ü
a. Male
b. Female
22. What’s your age? (Tick one) ü
a. 10-19 years
b. 20-29years
c. 30-39years
d. 40-49years
e. 50-59years
f. 60 and above
23. What is your general income per month? (Tick one) ü
a. Below 30,000
b. 30,000-39,000
c. 40,000- 49,000
d. 50,000 and above
1 Commercial Bank of Africa’s (CBA) Background Information: 4
1.1 History: 4
1.2 Current Situation: 5
1.2.1 Banks In Kenya 5
1.2.2 Commercial Bank of Africa (CBA) Latest Development: 5
1.2.3 Services Offered By Commercial Bank of Africa (CBA): 6
1.2.3.1 Corporate and Institutional Banking: 6
1.2.3.2 Personal Banking: (Current and Savings Account): 6
1.2.3.3 General Services: 7
1.2.4 Situation that Lead To Marketing Research: 7
2 Literature Research: 8
3 Problem Definition: 11
3.1 Decision Problem: 11
3.2 Research Problem: 11
3.3 Research Objectives: 11
4 Research Design Methodology (Primary Data): 12
4.1 Exploratory Research (Qualitative Research): 12
4.1.1 Interviews: 13
4.2 Descriptive Research (Quantitative Research): 14
4.2.1 Survey Method That Can Be Used: 15
4.2.1.1 Telephone: 15
4.2.1.2 Mail: 16
4.2.1.3 Internet Survey: 16
4.2.1.4 Personal Method: 17
4.3 Issues Of Discussion: 18
5 Time Frame: 19
6 Study Limitations: 22
6.1 Random Sampling Errors: 22
6.2 Administrative Errors: 23
6.2.1 Data Processing Error: 23
6.2.2 Interviewer Error: 23
6.2.3 Interviewer Cheating: 23
7 Budget 24
8 References: 25
8.1 Books: 25
8.2 Brochures: 25
8.3 Journals (On-line): 25
8.4 Newspapers: 25
8.5 Personal Communication: 25
8.6 Websites: 26
9 Appendix: 27
9.1 Interview Questions: 27
9.2 Questionnaire: 28
Project Title:
To investigate ways of increasing the market share for Commercial Bank of Africa (CBA)
1 Commercial Bank of Africa’s (CBA) Background Information:
1.1 History:
It was in 1962, that the Commercial Bank of Africa (CBA) Limited was started in Dar-es-Salaam, in Tanzania. Branches were quickly set up in Kenya (in Mombasa and Nairobi cities) and Uganda (in Kampala city). In 1967,Tanzania nationalised all the banks. This made CBA to incorporated itself in Kenya (CBA, 2005, http://www.cba.co.ke).
In 1971, Uganda, sold off its branch in Kampala. This eventually made CBA to begin its business as the main subsidiary of the Societe Financiere pour les pays D’Outre Mer (SFOM), which was a consortium bank that was based in Sweden. SFOM had interests throughout Africa with financial institutions (CBA, 2005, http://www.cba.co.ke).
The SFOM consortium members included the Banque National de Paris, Bank Bruxelles Lambert, Commerz Bank, and The Bank of America. Eventually, Bank of America obtained shares from all the SFOM members. This made CBA to be a subsidiary of the Bank of America (CBA, 2005, http://www.cba.co.ke).
Around 1980 to about 1984, The Bank of America established new disciplines and global systems in CBA. Eventually in late 1984 the Bank of America sold the bulk of its shares to the local investors, but was still allowed to manage CBA, due to an agreement and a small amount of interest it still had for CBA (CBA, 2005, http://www.cba.co.ke).
The Bank of America finally sold all it’s shares so as to make CBA to be owned completely by Kenyan investors (CBA, 2005, http://www.cba.co.ke).
1.2 Current Situation:
1.2.1 Banks In Kenya
In 2003, Kenya officially had fifty-one banks. (Market Intelligence, 2003 from http://www.mi.co.ke/business_and_finance/banking/banking_survey.asp).
During the period of 2001 and 2003, six banks were either merged or went under liquidation. In 2001 Standard Chartered Bank was rated one of the best banks ever followed by Citibank and Commercial Bank of Africa respectively. In 2002, Citibank was rated the best bank followed by Standard Chartered. Commercial Bank of Africa retained its third position (Marketing Intelligence 2003, http://www.mi.co.ke/banking%202003/Banking%20Survey%202003.data/Library/survey%20tables/OVERAL%20RANKING.htm).
1.2.2 Commercial Bank of Africa (CBA) Latest Development:
On Monday 14th March 2005, the CBA shareholders bought the First American Bank of Kenya. This transaction is expected to conclude on 31st May 2005. CBA saw this as an opportunity to develop its brand, franchise and increase its asset base. CBA’s also aims to contribute and improve the development of the country’s economy (Mugambi, 2005).
CBA has eleven branches in Nairobi and three branches in Mombasa, which brings to a total of fourteen branches countrywide. When CBA completes its deal to buy First American, it will acquire all the four branches, one branch in Mombasa and three in Nairobi (Mugambi, 2005).
According to the Nation Radio Business News report, aired on Monday 14th March, 2005 at 6:30pm, CBA’s main objective of acquiring the First American Bank is to increase its market share from its current 3% to about 5.5%.
1.2.3 Services Offered By Commercial Bank of Africa (CBA):
CBA offer a wide variety of services. Some of these services include: -
1.2.3.1 Corporate and Institutional Banking:
This service is offered mainly for business organizations. Here a relationship manager is allocated to each of the customers (who in this case are the businesses institutions). Here the organization will have access to financing for their exports and imports, equipment and expansion financing, capital financing (which is short term), and term financing that will eventually help to facilitate the development for the business (CBA, 2005, http://www.cba.co.ke/cba/index.php?cid=2&sm=&cls=2&fla=$fla).
Corporate Banking customers will also get a current account, and will be offered transaction services (bulk payment processing and local and overseas remittances), wage processing, electronic banking, and paynet services (CBA, 2005, http://www.cba.co.ke/cba/index.php?cid=2&sm=&cls=2&fla=$fla).
1.2.3.2 Personal Banking: (Current and Savings Account):
This account is for joint account holders, individuals, and minors (if the account is opened for them in trust by either their parent or guardian) (Commercial Bank of Africa, n.d.).
Here they have access to their account in any CBA branches, get a free Visa Photo electron Card, Access to PC and Internet banking, Access to sms balance inquiry, hospital cash plan cover and 1million Visa ATMs worldwide (Commercial Bank of Africa, n.d.).
1.2.3.3 General Services:
An outline of the other services that CBA offer include Premium financing, Motor Loans, Insurance (only for some products), personal loans, home loans, Internet banking, Mobile Banking and access to ATM’s countrywide. CBA usually targets customers that have or earn Ksh.50, 000 and more (Anne Gicharu, Personal Communication, March 19, 2005).
1.2.4 Situation that Lead To Marketing Research:
Currently, CBA does not have a marketing department. This has lead to a decline of them producing less national-wide advertisement, through the mass (and print) media. People who have just ventured into the business world thus are not fully aware about the bank and the services it offers. These people therefore go to other banks that are frequently advertised and known like The Standard Chartered, Barclays and The National Bank of Kenya (Anne Gicharu, Personal Communication, March 19, 2005).
CBA usually promotes its services through personal selling to the corporate and institution businesses. This is because through personal selling, the bank is able to customise the promotional message, to fit the potential-customer’s needs, so as to convince them to join the bank, and at the same time, the potential customer will be able to inquire about the services offered (Anne Gicharu, Personal Communication, March 19, 2005).
CBA also advertise through sponsoring events like the Dettol Heart Run, so as to show the community that they care about people around them. However all this has not been so effective as only a few people have joined the bank (Anne Gicharu, Personal Communication, March 19, 2005).
2 Literature Research:
According to Levesque and McDougall, (1996), (cited by Bloemer, Ruyter and Peeters 1998), the financial (banking) sector has for the past ten years gone under drastic changes. This characterised by strong competition, increased deregulation, and lack of growth in the primary demand of the (financial) banking industry. Customer relationship is also starting to decline.
Meidan, (1996), (cited by Bloemer, Ruyter and Peeters 1998), states that this financial competition has made financial Institutions to come up with come up with different strategies like introducing new innovative services and products to retain their customers. However when a bank comes up with a new innovation, the competing banks and financial institutions are most likely to copy. Bloemer, Ruyter and Peeters (1998).
This can also be seen in the Kenyan financial Market, where nearly all Kenyan banks and financial institutions have come up with innovative services like Internet banking and mobile banking which were not available until recently. Their aim is to attract new customers, and increase market share so as to avoid making losses to the more than fifty-one financial institutions (including banks) available currently in Kenya.
Commercial Bank of Africa (CBA) aims to increase its market share. This can usually prove to be very difficult due to the fact that CBA has many competitors that have successfully managed to promote (advertise) their products to the public, thus gaining public trust.
So as to increase their market share, CBA could extensively promote the services they offer so as to create awareness. This promotion could eventually, bring in more people into the bank.
According to Worcester (2005), corporate advertising should be based on: awareness, persuasion, Involvement, and action. If all this is done properly, awareness could lead to trust, Trust is achieved when the potential customer sees the advertisement and is captivated by it. Interaction with the bank (organization) can make the potential customer to be a member of the bank (transaction). Later on if all goes well, and the bank provides good services, the customer is will be satisfied, and they will end up being loyal towards the bank.
This can be illustrated in the chart below: -
Worcester (2005, p 11) http://0-iris.emeraldinsight.com.library.ecu.edu.au/vl=9260312/cl=41/nw=1/fm=html/rpsv/cw/mcb/02652323/v15n5/s1/p146) online version
Due to emerging of many banks and increased banking demand, banks have to improve their images as well as promoting their services to increase their share in the market. Ways that are used by various banks to improve their image as outlined by Worcester (volume 15, number 5, 1997, pp146-152), are: -
· “Noting the institutional necessary publics.
· Finding out how stakeholders rate the bank.
· Identifying misunderstood facts and information.
· Ensuring that corporate finances are properly managed.
· Improved Communication channels.
· Overtime and its effect to the image of the bank”.
With the emerging of many commercial banks in the country commercial banks are left with no alternatives other than to change their operational strategy. Each bank need to create a well-equipped marketing department, which will enable it to met the competitive edge. To achieve this they need to improve their reputation, which can be achieved through the following means: -
· Satisfying their customer through production of high-tech products/services beneficial to both personal and corporate customers.
· Introducing the most recent technology like Internet banking where customers can access their services from home or offices.
· Recruiting, training and maintaining the most qualified personnel who are trustworthy, respected and with ethical standards so as to maintain and offer best services to the customers”. (International journal of banking and marketing, vol14 number 6,1996, pp12-22.)
3 Problem Definition:
Here the problem can be seen either as an actual problem or as an opportunity to the organization. In this case CBA’s decision problem is viewed as an opportunity.
3.1 Decision Problem:
The management’s main objective is to look on how to increase the market share.
3.2 Research Problem:
The research problem refers to the main areas that will be mainly examined in the research. This research will mainly focus on the effectiveness of products and services currently offered by the bank and will also look at the effectiveness of current advertising undertaken by the bank.
3.3 Research Objectives:
The research objectives will be: -
¨ To determine the awareness people have of C.B.A. through its current advertising methods.
¨ To determine how consumers react and feel towards the various promotion methods undertaken by other banks.
¨ To determine what motivates consumers to join C.B.A. or other banks.
¨ To determine the perceived image of C.B.A. bank.
¨ To determine the general satisfaction of C.B.A. consumers.
4 Research Design Methodology (Primary Data):
4.1 Exploratory Research (Qualitative Research):
The primary data for the (qualitative) research will be collected mainly through communication with CBA’s managers, employees and banking customers. Communication refers to when a person sends a message to another person, and then gets feedback from that person about the message they sent (Zikmund, 2003). Communication will help the researchers in understanding what makes banking customers behave the way they do. Observation, [which is “the systematic process of recording the behavioural patterns of people, objects, and occurrences as they are witnessed” (Zikmund, 2003, p 723)], can lead to the wrong conclusions on why the customer is behaving in a certain way.
Communication will help the researcher in knowing the actual problems the bank is going through, how the bank is trying to cope and solve these problems, and in understanding what makes a customer go to a certain bank.
Communicating with the customers or the bank employees in the research can be done through depth interviews or focus group interview.
Depth interviews are usually extensive and unstructured. Here the interviewer (researcher) looks for in-depth answers (Zikmund, 2003).
Focus Group questions are also unstructured. These interviews are conducted with a group of people. This group contains only a few people (Zikmund, 2003).
4.1.1 Interviews:
Focus groups enable researchers to get more candid responses from the group of people being interviewed. This because respondents realise that the issues being raised in the discussion are not being identified with them, and this gives them a feeling of security. Questions are answered more quickly, and contain more information than depth interviews (Zikmund, 2003).
However in this research, Depth interviews were seen to be more adequate for the research than focus groups interview. This was because it was found that it would be difficult to get banking customers together as a group, since they are always are in a hurry to go back to their work, or to withdraw or deposit money. The researcher will also be able to modify the interview questions, so as to get more detailed information from the bank customers
The participants that will be involved in the interview will be mainly people who keep their money in the Banks. This is because they will help the interviewer in knowing what they like and dislike about the services offered by the current bank they are in. The interviewer can use this information to know what CBA bank can do to increase its market share by bringing in more customers.
The interview will also look at people who are aged between sixteen and twenty years. People in this age gap are sometimes started for bank accounts by their parents or guardians. This will later influence whether they will stick to the bank they currently are in or whether they would like to move to a better bank in the future.
The main bulk of the interviews will however focus on working businessmen and businesswomen as they are the main customers for banks, they will be around 25 years onwards. Older people around 75 years will also be interviewed, since most are known to keep their money in the bank during retirement.
4.2 Descriptive Research (Quantitative Research):
The questionnaire will contain three types of scale of measurement. First there will be nominal. Here an object is assigned for a number, and the number is not used for any mathematical purposes. An example can be a question giving a respondent with the option of: -
1.Yes and
2.No.
Ordinal scale of measurement will be used to assist the respondent to rank the objects according to how much they like or appreciate them. E.g. a question can ask the respondent to rate lending services offered by the bank. If the respondent grades it as number one, this shows that they do not like the lending service. If they grade it number ten, this shows that they like the lending service.
Lastly Interval scale of measurement will be used, to give a set of interval of numbers so as to eliminate too many options for the respondent. E.g. a question that will be asking the respondent for their age, the ages will be put into categories, of nine (10-19 years, 20- 29years) instead of listing all the ages one by one.
Ratio is also a scale of measurement, but it will not be used in this research. This is because there will no information that will need absolute statements that need exact measurement. Ratio has a true zero and is mostly used to show exact figures, e.g. for sales and weight.
The questionnaire will be given to 50 people. These people will be mainly businessmen and businesswomen (between twenty and seventy years). Students who own bank accounts and are above fifteen years will be included in the research. Retired people (aged around sixty and eighty years) who still have bank accounts will also fill in the questionnaires.
The questionnaire will have a total of twenty-three questions. All the questions will take approximately three to four minutes to answer. Branching questions will also be available in the questionnaire, so as to guide respondent to other questions in the questionnaire.
The questionnaires will be administered at the Central Location Intercept (in Westlands), where the Commercial Bank of Africa is situated.
The sampling technique that will be mainly used will be Judgement. The questionnaires will be distributed at the various bank branches in Westlands, Village-Market, and Town, to see if all the people have the same characteristics, in banking choices.
The main aim of the questionnaire will be to determine the quality of services offered in CBA compared to other banks, and the effectiveness of CBA’s advertisements.
4.2.1 Survey Method That Can Be Used:
4.2.1.1 Telephone:
Telephones have the main advantage of having a wide distribution. This is because many people usually own telephones (e.g. in Kenya, many people own mobile phones). Telephones also provide speed in the collection of data. This is because many telephone calls can be conducted over a short period of time (Zikmund, 2003).
However, using the telephone to conduct both the interview and questionnaire was seen as inappropriate because the (telephone) infrastructure has not yet fully developed in Kenya. Not many people have landlines, since they have opted to have mobile (cell) phones instead. Calling a mobile phone is very expensive. People who have mobile phones may be un-able to answer the questions, especially if they are doing something important or are in an in-secure place.
Customers who have landline telephones especially in offices might be too busy to answer the interviews or questionnaire, and might ask a representative (e.g. a secretary) to answer for them the questions. This could lead to inaccurate or incorrect responses, as they might not have a clear idea on the topic.
4.2.1.2 Mail:
A mail survey is when a researcher sends a questionnaire to the customers through the mail. The questionnaire is self-administered, since the customers fill it in by themselves and then sends it back to the researcher (Zikmund, 2003).
Mail questionnaire have the main advantage of being flexible. This is because they can reach customers who live in isolated areas, where researchers might find it difficult to physically reach them, or cannot easily be reached through the telephone. Mail questionnaires are answered at the respondents’ convenience, which gives them time to reflect on their replies before writing them down. Respondents will also feel more comfortable since they will be anonymous to the researcher, which will make them feel more free to write what is on their mind without fearing being judged by the researcher (Zikmund, 2003).
However, the mail system in Kenya is very slow. A letter might reach the recipient in a month’s time or more. This means that the researcher will waste a lot of time waiting for the reply. Most people also ignore or simply refuse to answer research questions asked through the mail, which means that the researcher will get very few respondents.
4.2.1.3 Internet Survey:
Internet Survey is when a researcher posts a questionnaire on a website for people (respondents) to answer. It is also self-administered. It allows researcher to reach many people all at once.
However, most customers in Kenya hardly take time to answer Internet surveys as they consider them a waste of time, since they are busy checking their e-mail or doing research.
4.2.1.4 Personal Method:
In-Home
Most people in Kenya like their privacy, and will not want to be interviewed or given questionnaires in their homes by strangers. However this can work only if the researcher is known in the neighbourhood. This can cause the researcher to get very little information on the topic at hand, due to few respondents.
An in-home interview is seen as very effective because both the respondent and the interviewer will feel relaxed and at ease when answering the questions in a homely environment.
Central Location Intercept
This was seen as the most appropriate method to conduct the survey. This is where the researcher will go and conduct interviews to the customers located within and around the premises of CBA. Here the researcher would get an immediate response (unlike mail), from people who go to CBA or the neighbouring banks’ (Barclays, Standard Chartered, or KCB) customers.
This method was also seen as cheaper, since there would be no major charges to pay for transport, since all the banks (Barclays, Standard Chartered, KCB and CBA) are located very close to the school, AUSI).
However, this method could have some limitations. This is because customers located at the bank will be busy either going back to their work or withdrawing and depositing money and therefore might not get time to answer the questionnaire or the interview. The customers might also refuse to answer the questions because they feel insecure, due to the fact that they have just dealt with money, and might feel suspicious.
4.3 Issues Of Discussion:
The questions that will be discussed both in the interview and questionnaire will cover the research objectives. These interview questions and questionnaires are found at the appendix of this proposal.
5 Time Frame:
Week Date Activity
1 9th – 15th March 2005. 1. Look for suitable organization to conduct research.
2. Evaluate possible organizations.
2. 16th – 22nd March 2005. 1.Post a letter requesting if organization will allow a research to be conducted for them.
2. Review the organizations problem definition (decision problem, research problem and objectives).
3 23rd – 29th March 2005. 1. Research about the organization (CBA’s) background information.
2. Research on secondary information about banks from journals.
3.Come up with a budget.
4.Come up with methods to conduct the research.
5.Come up with interview questions.
4. 30th March-5th April 2005. 1.Conduct interviews.
2.Type out the responses for the Interviews.
3. Speak to CBA employers and Employees.
5. 6th – 12th April 2005. 1. Start typing proposal.
2.Brainstorm possible questions for questionnaire.
3.Decide on the sample size of the people to be given questionnaires.
4. Decide on characteristics required by the people answering the questionnaire.
5. Decide on technique to be used when answering the questionnaire.
6. 13th – 19th April 2005. 1. Refine draft questionnaire.
2. Decide on the best method of distributing the questionnaire.
3. Test the questionnaire.
4. Finnish typing proposal.
7 20th – 26th April 2005. 1. Give questionnaire to be answered by people.
2. Start coding SPSS.
3. Start looking at requirements for the report.
8 27th April – 3rd May 2005. 1. Continue distributing the questionnaire to be answered.
2.Start writing the report.
3.Start coding received questionnaires on SPSS.
9 4th – 10th May 2005. 1. Must have received all questionnaires.
2. Continue on updating the report.
3.Continue to put data on SPSS
10 11th – 17th May 2005. 1. Finnish putting the data on SPSS.
2. Start analysing the data on SPSS.
3. Update the report.
11. 18th – 24th May 2005. 1.Start typing presentation slides.
2. Complete typing the report.
12 25th – 31st May 2005. 1. Finnish typing the presentation slides.
2. Practice for the presentation.
3.Finally present the work.
4.Check the report for any corrections.
5.Hand in the report.
6 Study Limitations:
The research will however might go through some limitations that may affect the accuracy of the results.
6.1 Random Sampling Errors:
These errors occur due to variations in the sample data (Zikmund, 2003).
This includes respondent errors. There are two types of respondent errors. They are, Non-Response Error and Response Error. Non- Response errors include non-respondents error, where people could refuse to cooperate. Here people could refuse to answer some questions like information relating to the amount of income they receive per month or their age (Zikmund, 2003).
Customers could also answer questions with a certain incline that does not represent the truth completely. This is called a response bias. Here the answers are misinterpreted or falsified. A good example is when people agree with all the questions on the paper, e.g. if asked if they are happy with the current services offered by the bank, they will automatically choose the ‘Yes’ answer, without thinking much of the question. This is usually called acquiescence bias (Zikmund, 2003).
The researcher (interviewer) could sometimes influence the way the respondent answers the question. The presence of the interviewer could make the respondent modify their answer so that the interviewer does not see them as un-usual. This is called Interviewer bias (Zikmund, 2003).
Social desirability bias is also a form of response bias. This is when people try to create a good impression in the interviewers presence. A good example can be when respondents are answering a question about the amount of income they earn per month. The respondents may give an answer of a higher income than what they truly receive, especially if they are planning on going to a better paying job in a few months or years to come (Zikmund, 2003).
6.2 Administrative Errors:
This refers to errors caused by “ the improper administration or execution of the research task” (Zikmund, 2003, p 195), by the researchers.
6.2.1 Data Processing Error:
This is when the researcher codes the data received from the interview or questioner wrongly on the computer. E.g., a researcher can code the age of a respondent wrongly on the computer (Zikmund, 2003), and this might affect the end result of the survey conducted.
6.2.2 Interviewer Error:
This can occur when the interviewer incorrectly records the responses from the survey (Zikmund, 2003).
6.2.3 Interviewer Cheating:
This is when the interviewer fills in questions that were left out by the respondent (Zikmund, 2003).
7 Budget
The purpose of the Budget is to help in determining the approximate cost that will be needed to conduct the whole research, write the proposal and report for Commercial Bank of Africa.
Item Cost (Ksh)
Transport (to CBA and Customers) 1,000
Binding 200
Printing 2,000
Researching Online (secondary Data) 2,000
Photocopying 2,800
Total 8,000
8 References:
8.1 Books:
¨ Hornby, A. (1998). Oxford Advanced Learner’s Dictionary, Special Price Edition, China, Oxford University Press.
¨ Zikmund, W. (2003). Exploring Marketing Research, Ohio, Thomson South-Western.
8.2 Brochures:
¨ Commercial Bank of Africa, (no date). Personal Current and Saving Accounts [Brochure]. Nairobi, Kenya: CBA.
8.3 Journals (On-line):
¨ Bloemer, J., Ruyter, K., Peeters, P. (1998) Investigating Drivers of Bank Loyalty: The Complex Relationship Between Image, Service Quality and Satisfaction. International Journal of Bank Marketing, 16, 276-286. Retrieved April 10 2005 from Emerald Database.
8.4 Newspapers:
¨ Mugambi, K. (2005, March 15). CBA to acquire First American by end of May. The Daily Nation, p 22.
8.5 Personal Communication:
¨ Gicharu, A., March 19, 2005, Commercial Bank of Africa.
8.6 Websites:
¨ C.B.A., (2005). History Background. Retrieved March 11, 2005, from C.B.A. website: http://www.cba.co.ke
¨ C.B.A., (2005). Corporate Banking. Retrieved March 11, 2005, from C.B.A. website: CBA, 2005, http://www.cba.co.ke/cba/index.php?cid=2&sm=&cls=2&fla=$fla
¨ Market Intelligence, (2003). The MI Banking Survey 2003. Retrieved April 5, 2005 from the Market Intelligence website: http://www.mi.co.ke/business_and_finance/banking/banking_survey.asp
¨ Market Intelligence, (2003). Overall Ranking. Retrieved April 5, 2005 from the Market Intelligence website: http://www.mi.co.ke/banking%202003/Banking%20Survey%202003.data/Library/survey%20tables/OVERAL%20RANKING.htm
9 Appendix:
9.1 Interview Questions:
1. Which bank do you go to?
2. How did you know about the bank?
3. What is your general opinion about banking advertisements?
a. Do you feel that banks should advertise themselves more?
b. Should they use other means of promoting themselves?
(Which means should they use more)?
4. If you want to know about banking information, how do you get it?
a. Do you listen to banking advertisements only when you need or want to or do you prefer being informed about banks on a current basis?
5. What makes you keep on using this bank and not any other bank?
6. How would you rate this bank compared to other banks?
7. How do you feel about the services currently offered by this bank?
a. (Are you satisfied with the services provided to you?)
***
For Non-C.B.A. Customers:
Two Questions
1. Have you heard about Commercial Bank of Africa (CBA)?
2. Do you know what services are offered in Commercial Bank of Africa CBA?
9.2 Questionnaire:
1. What Bank do you use? (Write the main). ____________________________________________________________
2. How did you know about the bank? (Select one).
i) Reference (can be from friends/family/or work)
ii) Magazines
iii) Newspaper
iv) Radio
v) Other-Specify ___________________________________________
__________________________________________________________
__________________________________________________________
3. How would you rate the services offered by your bank? (Circle one number e.g. 2 ).
Lending
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
ATM
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
Customer Service
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
Interest Rates on Savings
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
4. For how long have you used the current bank you are in? (Please tick one ü ).
i) 1-4years
ii) 5-9 years
iii) 10-19years
iv) 20 years and over
5. What motivates you to keep to your bank? (Select one).
i) Good quality Services
ii) Low Lending Interest Rates
iii) Good Interest Rates on Savings
iv) Low Bank charges
v) Location
vi) Other (Specify) __________________________________________
___________________________________________________________
6. How does your bank usually inform you? (Select one).
i) Letter/Telephone
ii) Newspaper Advertisements
iii) Brochures
iv) Television Advertisement
v) Radio Advertisement
vi) Other ___________________________________________________
____________________________________________________________
7. What do you think is the best way that the bank can inform you? (Select one).
i) Letter/Telephone
ii) Newspaper Advertisements
iii) Brochures
iv) Television Advertisement
v) Radio Advertisement
vi) Other ___________________________________________________
____________________________________________________________
8. What would mostly influence you to select a certain bank? (Tick one). ü
i) Reference from family/friends or workplace.
ii) Exhibition/Seminar held by the bank
iii) Television Advertisement
iv) Newspaper Advertisement.
v) Radio Advertisement.
9. Were you in another bank before? (Pease tick one, e.g. ü ).
i) Yes (If yes, go to number 10).
ii) No (If no, go to number 11).
10. What was the main reason that made you leave your former bank? (Select one).
i) Inconvenient location
ii) Poor Services
iii) Few Services
iv) High Bank Charges
v) Poor Branch Distribution
vi) Low Interest Rates
vii) Good Interest Rates For Savings.
viii) Low Lending Interest Rates
ix) Others _________________________________________________
_______________________________________________________
_______________________________________________________
11. Do you use Commercial Bank of Africa (CBA)? (Please Tick one). ü
a. Yes (If yes, go to number 12 and 13).
b. No (If no, go to number 14).
12. How do you generally rate the services offered to you in CBA. (If possible,
compare to other Banks you know). (Please circle one number e.g. 2 ).
Lending
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
ATM
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
Customer Service
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
Interest Rates on Savings
Excellent! Very Good Good Bad Poor Terrible!
6 5 4 3 2 1
13. What can the bank do to make the services better? (Select one).
a. Nothing needs improving
b. Better customer service
c. Lower Bank Charges
d. Other __________________________________________________
___________________________________________________
14. Have you heard of Commercial Bank of Africa (CBA)? (Tick one). ü
a. Yes (If yes, go to number 15 and 16 below).
b. No (If no, go to number 17).
15. How did you hear of CBA? (Select one).
a. Reference (can be from friends/family/or work)
b. Magazines
c. Newspaper
d. Radio
e. Other __________________________________________________
________________________________________________________
16. Why haven’t you joined CBA? (Please select one).
a. I don’t know much about it.
b. It is too expensive for me
c. I’m satisfied in my current bank.
d. Other _____________________________________________
______________________________________________
17. What type of advertisement does your bank mainly carry out? (Select one).
a. None
b. TV advertisements
c. Radio Advertisements
d. Newspaper advertisement
e. Other ___________________________________________________
________________________________________________________
18. Is it effective? (Tick one). ü
a. Yes (If yes, go to number 20).
b. No (If no, go to number 19).
19. What method of advertising do you think they should use? (Select one).
a. TV advertisements
b. Radio Advertisements
c. Newspaper advertisement
d. Other ______________________________________________________
_____________________________________________________
_____________________________________________________
20. What do you think of banking advertisements in general? (Select one).
a. Boring
b. Interesting
c. Other __________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
21. What is your Gender? (Tick one) ü
a. Male
b. Female
22. What’s your age? (Tick one) ü
a. 10-19 years
b. 20-29years
c. 30-39years
d. 40-49years
e. 50-59years
f. 60 and above
23. What is your general income per month? (Tick one) ü
a. Below 30,000
b. 30,000-39,000
c. 40,000- 49,000
d. 50,000 and above
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