The Moderating Effect of Employee Satisfaction on the Relationship Between Marketing Mix Elements and Business Performance: In the Case of Dashin Bank S.C
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2023-06
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Addis Ababa University
Abstract
The purpose of this study is to examine if the effect of marketing mix elements on business performance is moderated by employee satisfaction using Dashin Bank S.C. as a context. This examination is important because even though many firms invest money to develop and implement effective marketing strategy -the effect of this investment on business performance could be undermined if employees are not satisfied. Thus, this research seeks to show how firms could benefit from investment on marketing strategy by paying attention to employee satisfaction. The study uses both descriptive and explanatory research design. Primary and secondary data were used. A quantitative research method using modified and structured Closed ended questionnaires from previous studies was used in order to determine whether the effect of the marketing mix elements (i.e., price, product, place and promotion) on business performance is moderated by employee satisfaction. Self-administered questionnaire was used to collect the data from all 148 members of the marketing department of Dashin Bank S.C. The collected data was analyzed using hierarchical regression analysis via SPSS. The result of the regression analysis revealed that product (B =.074, p > .05) not significantly predicted business performance. Price (B =.334, p < .05), place (B =.362, p < .05) and promotion (B =.543, p < .05) have significantly and positively predicted business performance. Employee satisfaction (B = -1.186, p < .05) has significantly and negatively predicted business performance. Moreover, the result of the hierarchical regression analysis revealed that employee satisfaction significantly moderated the relationship between promotion and business performance (B =-.874 p < .05). In addition, the regression analysis revealed that employee satisfaction moderated the relationship between the product element of the marketing strategy and business performance (B = 1.220 p < .05). These findings build past literature, which showed that the marketing mix elements have a positive effect on business performance by showing that this relationship is moderated by employee satisfaction. The results of the analysis highlight the need for organizations to consider the role of employee satisfaction in terms of its effect on the relationship between marketing strategy and business performance and create a positive work environment that fosters satisfaction
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