Contributions of Cost Leadership and Differentiation Strategies on Customer Satisfaction at Mombasa Water Supply and Sanitation Company, Kenya

Abstract

This study examines the contributions of cost leadership and differentiation strategies on customer satisfaction at Mombasa Water Supply and Sanitation Company. The specific objectives for this study was to establish measures Mombasa Water Supply and Sanitation Company limited has undertaken to achieve cost leadership; to determine the contributions of differentiation as a strategic management principle on customers’ satisfaction and to provide recommendations on how to improve customer satisfaction at Mombasa Water Supply and Sanitation Company. The metrics for measuring customers’ satisfaction are customer retention; fewer customers’ complaints and less number of referrals. Descriptive research design is used in the study and the self-administered questionnaire that collected both quantitative and qualitative data were sent directly to the respondents. Before processing the responses, the completed questionnaires were edited for completeness and consistency. Both qualitative and quantitative research techniques have been used. The target population were both public staff working at Mombasa County Water Supply and Sanitation sector and customers from public and private institutions. The stratified random sampling was used to draw a sample of 300 that include management staff working at Mombasa Water Supply and Sanitation Company, Coast Water Services Board, Mombasa County Government (formerly City Council of Mombasa), Water Resources Management Authority, selected registered Water Action Groups and some major water consumers such as Kenya Ports Authority, Kenya Petroleum Refineries limited, Association of Hotel Keepers and Coast Province General Hospital. The data was then analyzed using a software package for statistical analysis originally Statistical Package for Social Sciences later modified to read Statistical Product and Services Solutions (SPSS). The data was coded to enable the responses to be grouped into various categories. Content analysis was used to analyze the qualitative data collected while descriptive methods were used to analyze quantitative data. The research proves that with efficient application of strategic management principles of cost leadership and differentiation, the desired customer satisfaction can be achieved and enhanced at Mombasa Water Supply and Sanitation Company.

Keywords: Cost Leadership, Differentiation, Sustainability