Effects of Product Design on Performance of Commercial Banks in Garissa County, Kenya

An organization’s superior performance mostly results from its strategic choice that provides the firm a better positioning in the industry structure. As a result of dynamic environment banks face arising from high competition posed by the other commercial and non-commercial banks. Therefore, in a highly uncertain and changing environment, strategic managers need to have the strategic flexibility to respond to problems speedily. Therefore, the study sought to determine the effect of product design on performance of commercial banks in Garissa County, Kenya. This study employed a descriptive survey research design. The population for this study was four commercial banks namely: Kenya Commercial Bank, Equity Bank, Cooperative Bank and National Bank in Garissa County, Kenya. The respondents were managers in top, middle and low level management employees. A census of 82 respondents was carried out. Primary data was collected using a structured questionnaire. Quantitative data was analyzed using descriptive statistics. The study further carried out multiple regressions to determine the effect between variables. The study found that product design had a positive and significant effect on the performance. The study concluded that the banks have a very effective product design implementation that has enhanced their performance by attracting more consumers, providing ease, and making services available to their customers. The study recommended that the commercial banks should create a solid understanding of their opportunities by looking at the entire market based on their customer to determine the actual potential.