Thesis:

An assessment of strategic technological innovation on Customer satisfaction: a case study of KCB Nairobi

Technological innovation has become one of the most critical success factors for increased market competitiveness. With the robust changes in technology, customer satisfaction is impacted in terms of efficiency of the systems. To remain relevant in the industry and ensure that customers’ expectations in terms of innovative technology are fulfilled, it has become imperative for organizations to continuously introduce new innovative products and enhance the existing ones. This study sought to analyse the connection between strategic technological innovations at KCB bank in relation to customers’ satisfaction. The study purposes focused on the link among the independent variables which were online banking systems, card products innovation, electronic queue management system and agency banking, and their influence on customer satisfaction. The intervening variable was government regulations. Four hypotheses guided the study. This research was descriptive cross-sectional study since data was obtained from the population at a particular time. It was guided by three theories which include Diffusion of innovation (DOI), Technology acceptance Model (TAM) and Theory of Planned Behaviour (TPB). The research used pre tested structured questionnaires and interviews for data collection. The target population entailed the entire customer base of 10 KCB branches in Nairobi CBD estimated to be 320,642. The Sample population was obtained based on Krejcie & Morgan, (1970) specimen table which gave the overall number of respondents as 384. In addressing study objectives, both qualitative and quantitative research methods were applied. Primary data was obtained by administering closed and open-ended questionnaires. The questionnaire underwent a test to establish if it was reliable by use of Cronbach’s alpha coefficient method. Content validity was applied for testing of validity. Quantitative data was analysed through applying descriptive statistics. This incorporated percentages, frequencies, means as well as standard deviations. To ascertain the link between the variables, both correlation and regression analysis were applied. The study results indicated high levels of customer satisfaction with online banking, card innovations, and EQMS, while satisfaction with agency banking was moderate. Regression results revealed that all independent variables had a positive and statistically significant influence on how satisfied customers were, with online banking innovation showing the strongest effect. The model indicated 62.3% of the variance in customer satisfaction, indicating a strong predictive relationship. The study concludes that online banking innovation, card products innovation, electronic queue management system, and agency banking significantly affect customer satisfaction in the KCB. From this research the recommendation is that the bank should continue to invest in digital platforms, improve agency banking operations, and the integration of innovative products and services into a seamless service experience.