Influence of Physical Distribution Strategies on the Performance of Service Firms in Kenya: A Survey Study of Print Media Distribution in South Nyanza Region, Kenya

Abstract

Digital media introduced to the market the quickest form of print content distribution man has ever seen; since its inception the print media industry is under several challenges. The current physical distribution efforts and sales results are not satisfying in the print media industry. Stiff competition exists among the media service providers and players where the print media is under a threat by the digital media as its market share is shrinking at a margin of 27% daily.  The purpose of this study was to assess the influence of the distribution strategies on the performance of service firms in Kenya with particular interest on Print Media Industry. The study adopted a survey design. The target population was 53 respondents selected using Census sampling technique. A structured questionnaire was used. Data was analyzed using descriptive statistics which involved the use of percentages and frequency tables.  Simple regression analysis was used to assess the degree of association between the variables under investigation and ANOVA for the level of significance between physical distribution strategies and performance of print media in the region. The findings were: customer service strategy and transport logistics strategy were the major physical distribution strategies adopted  and  had a mean weight of 4.5094 in a 5 point loaded scale; this result showed that their use in the industry was of high significance in contributing towards performance of the print media industry; a strong and positive correlation  existed between  physical distribution strategies and performance of the print media industry (R= 0.971^a;  and  R² = 0.943);   the ANOVA results indicated a significant relationship between the predictors (independent variables) and the dependent variable ( F= 271.918; p<0.05); customer service strategy has a positive contribution to the performance of the print media industry; the adopted regression model showed that Performance   = -1.230 – 0.011 TLS + 0.784 CSS + 0.074 RLS; hence increase in use of customer service strategy as physical distribution strategy causes a positive increase in performance of the print media industry in the area under study.

Keywords: Distribution Strategies, Transport Logistics, Print Media, Performance