The Influence of innovation strategies on customer satisfaction in alcoholic beverages companies in Kenya

Abstract

Globalization has increased the opportunities for businesses today by expanding markets, but the opportunity also comes at a cost: increased competition. To respond to the threat and seize the opportunity, businesses have resolved to innovate aggressively. The general objective of the study was to establish the influence of innovation strategies on customer satisfaction among alcoholic beverages companies in Kenya. The specific objectives of the study were to determine the influence of product innovation on customer satisfaction, to determine the influence of process innovation on customer satisfaction and to explore the influence of marketing innovation on customer satisfaction among alcoholic beverages companies in Kenya. Two key theories that informed the study are Diffusion of Innovations Theory and Disruptive Innovations Theory. The study employs a positivism philosophy and a cross-sectional descriptive research design. The researcher collected primary data using structured questionnaires from a sample that spanned across the 41 Kenyan alcoholic beverages companies that had active KRA licenses as at March 2024. Collected data was analyzed through descriptive and inferential statistics. The study found that product innovation, process innovation, and marketing innovation significantly influence customer satisfaction in alcoholic beverage companies in Kenya. These results suggest that innovation strategies, particularly in marketing, play a critical role in enhancing customer satisfaction. Key limitations that affected the study included challenges in measuring the multifaceted concept of customer satisfaction that is affected by many factors, biases and inaccuracies arising from respondent’s perspectives, and the temporal scope of the study that limited the depth of research.