The Influence of Green Marketing Strategies on Cost Management Among Commercial Banks in Kenya

Abstract

The purpose of this study was to determine the influence of green marketing strategies on cost management among commercial banks in Kenya. There were two objectives for the study ; the green marketing strategies used among commercial banks in Kenya and the link between green marketing and cost management in commercial banks in Kenya. A census survey study design was used and the main data collection method was through self-administered questionnaires. All the banks were targeted and a response rate of 27(62.7%) was achieved. The study revealed that the adoption of green marketing among commercial banks in Kenya was at 66.7% based on the number of banks that had departments of green marketing or those that specifically had the green marketing agenda in their operations. Among the strategies that were in place were green branding, green innovation and green operations. The study revealed that the most favorable strategy used in green marketing was green branding since it had a score of 3.5, followed by green operations 3.2 and green innovation which was 2.7. The measures were based on a scale of 1 to 5 where 5 meant that the strategy was used to a very large extent. The study revealed that there were strong policies in place to check on printing costs. It was also revealed that the adoption of more energy efficient systems such as solar energy use had been adapted to a moderate extent by banks. A regression model on the relationship between green marketing strategies revealed that cost management through green marketing accounts for more 84.6 % of controllable cost management. The study recommended that green marketing can be expanded to incorporate strategies that would involve the use of solar, energy saving bulbs, water harvesting to be used for cleaning, use of ATM outlets to communicate green marketing agenda.