In the increasingly competitive insurance industry, firms are under pressure to adopt pricing strategies that enhance customer appeal and improve market outcomes. In Kenya, insurance companies face stiff competition from international providers and banc-assurance products offered by commercial banks, which has contributed to shrinking market share, declining penetration rates, and weakened overall performance. This study examined the relationship between price focus positioning and market performance among insurance firms in Kenya. Guided by Market-Based View theory, the study applied a mixed-method approach, incorporating both correlational and cross-sectional designs. The target population included 220 senior managers across 55 insurance firms registered with the Insurance Regulatory Authority (IRA). A census method was employed, and data were collected through structured questionnaires. The instrument underwent validation through expert reviews to ensure face, content, and construct validity, and a pilot test produced a Cronbach’s Alpha of 0.795, confirming its reliability. Descriptive statistics such as means and standard deviations were used to summarize the data, while simple linear regression tested the hypothesized relationship. The findings indicated that price focus positioning had a significant positive influence on market performance (β = 0.689, p < 0.001). The study concludes that price-based positioning is a key driver of competitive advantage, enabling insurance firms to meet customer expectations and improve their market standing. It recommends that insurance providers develop adaptive pricing strategies aligned with customer segments and market dynamics to enhance product uptake and organizational performance in a saturated market. These findings contribute to strategic marketing literature by highlighting the importance of pricing as a positioning tool in the insurance sector.
Bosuben et al. (Wed,) studied this question.