Kenya’s Gdp and Private Sector

CHAPTER ONE INTRODUCTION

1.1 Introduction

This background of study is mentioned in this chapter. The discussion of the overall question and the relevance topic are being carried out. This chapter includes the objectives and the problem statement of this study. Besides that, the explanation of who is gaining benefits from this study is included. Lastly, important terms are clearly defined to avoid confusion amongst readers.

1.2 Statement of the problem

This is a research paper that is based on an investigation on the perception of products and services offered by the private sector in Kenya.  The use of ‘customer perception’ is to help the country and businesses operating within the private sector realize the perceptions that the public has towards their products and services this is to assist how they can present the products and services to the people of Kenya. Customers always evaluate the perceived benefits before they decide to purchase a particular product or service. They also include costs of usage, the lost opportunity to use other offering, potential switching costs etc. Consumers always value these added benefits when making a purchasing decision. Therefore this is making it important for a company or and industry to give consideration to the different attitudes, diverse cultures, generation gap, social gaps.

1.3 Background of the problem

Kenya’s private sector accounts for approximately 80% of the GDP and provides more than half of the wage employment. The private sector can be classified into three broad categories: the agriculture, industry and service sectors. In 2005, agriculture and forestry contributed 24.2% to the GDP, while manufacturing and trade contributed 10.5% and 10.8% respectively. The private sector is dualistic in nature, with a small proportion of large enterprises and a large proportion of medium, small and micro-enterprises that operate parallel to each other, with limited linkages. The Micro enterprises are largely informal, operating outside the realm of legal and institutional support infrastructure.

This research is therefore aimed to investigate how those factors affect the private sector market. The perception towards products and services offered by the private sector has deteriorated. This is because Kenya, a developing country has most of its population  

Income level make it difficult t afford or even consider the services and products offered by the private sector.

To what extent do the peers influence, customers' services quality, products quality, different attitudes, diverse cultures, generation gap, social gape and customer usage affect the customer perception in choosing their products and services. 4

1.4 Research hypothesis

HA- Quality and customer satisfaction of the products and services industry has a significant effect on market share towards the private sector.

HO- Quality and customer satisfaction of the products and services industry has no significant effect on market share towards the private sector.

1.5 General objectives

The overall goal of this study is to determine and identify the factors that affecting customers' perception in choosing their products and services providers. The following objectives are built to achieve the goals of this study. Through the assessment of different attitudes, customer usage, social gap, different cultures and generation gap.

4http://marsgroupkenya.org/pdfs/2011/01/Ministry_PDFS/Ministry_of_Industrialization/PSDS_short.pdf 

1.5.1 Specific objectives

1. To change the attitudes of the Kenyan people towards products and services offered by the private sector.
2. To increase the customer usage of private sector products and services in Kenya.
3. To reduce the social gap so as to make private sector products and services affordable and accessible to every Kenyan.
4. To bring different cultures together so they can work together to get culturally friendly products and services.
5. To bridge the generation gap by understanding different generations so that there can be different products and services for every age group making sure the consumer is getting value for their money.

1.6  Research questions

1. How can the government and private sector industries change the attitude of Kenyans towards the private sector?
2. How can the private sector increase the customer usage of their products and services?
3. What are the effects of the social gape in the perception of goods and services by the private sector?
4. What are the effects of such diverse cultures towards the perception of goods and services by the private sector?
5. How can the generation gape in Kenya affect the perception towards the private sector?  

1.7 Rationale of research

The private industry has undergone dramatic changes over the last decade or so. This study provides insights of the factors that are affecting the customer perception in choosing their product and service provider. This research is done for the contribution that will bring for the family, society, country, and will also lead us to a better living environment. The result of this research will be beneficial for the private sector businesses operating in Kenya to serve as a guideline in the perception consumers have towards the private sector in Kenya. With this information, private sector organizations especially the private health care sector, private education sector and the private cosmetics sector in Kenya could be able to design packages that satisfying consumers to improve their organizations performance as well as to maintain their market share. The research is important because it can outline what the factors that affecting the consumers' perception in choosing the products and services that they use. This research will also be able to provide the factors that affect perception by looking at various variables such as attitude, consumer usage, social gape culture and social gape. When product and service providers understand the perception towards their products and services the private sector can better understand what is the wants and needs of the consumer. Thus, it can help organizations can focus to increase their product features or quality that serves to the consumers. Superior customer service and products quality can affect customers' perception in choosing their products and services.

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