Factors that affect the adoption of new product in kenya Commercial banks

Abstract

Successful new product/service introductions are important for a firm’s long-term performance. This holds especially for industries in which firms invest heavily in technologies, such as mobile networks, under the premise that firms will be able to introduce new services using these technologies. A major stumbling block in the adoption of new products is that information about their existence and their unique characteristics are not easily or readily available. This research study sought to determine the factors affecting new products adoption in commercial banks. The study used descriptive research design. The population of the study constituted the entire 45 commercial banks operating in Kenya. Data was collected from a total of 45 product managers from all the 45 commercial banks in Kenya using a questionnaire. The data was then be summarized, coded and entered into the Statistical Package for Social Sciences (SPSS) for analysis. Descriptive statistics such as means, standard deviation and frequency distribution was used to analyze the data. Inferential statistic like correlation was carried out. This study found that majority of the commercial banks analyzed were involved in the development of new products. The study also realized that new products and services in commercial banks had been adopted by customers at a moderate rate. This study recommends that all commercial banks should be involved in the development of new products and services. Commercial banks should lower the cost of new products and services. The study also found that cost of new products hinders consumer adoption of the new products. Commercial banks should increase information providers in their banks and open detailed websites. This research study found that lack of information on new products hinders customers’ adoption of the new products at commercial banks and ineffective communications act as a great barrier to adoption of new commercial banks products.