Assessment of marketing productivity on the performance of hotel firms in Kenya

Abstract

The principal objective of the study was to empirically assess the influence of marketing productivity (marketing activities and sales force performance) on the performance of hotel firms in Kenya. The relevant hypothesis was derived from the objective. The population of study comprised 209 hotel firms registered with the Kenya Association of Hotelkeepers and Caterers (KAHC) which is the principal umbrella body that brings together duly registered hotels, lodges, restaurants, membership clubs and camps operating in Kenya. A descriptive cross-sectional survey was used. The relevant primary data were collected from Chief Executives and Senior Managers using semi-structured questionnaire. Data were analyzed using descriptive statistics, inferential statistics and regression analysis. The results of the study revealed that marketing productivity significantly influences performance. The coefficient of determination (R2) depicted that marketing productivity accounted for 8% variations in the overall success in firm performance. Holding other factors constant, a unit increase in marketing productivity would cause a 0.238 increase in firm performance. A t-value of 8.181 was established at p=0.000 depicting that the relationship was statistically significant at 95% confidence level (p-value < .05). The study has made contributions to theory, policy and practice in relation to marketing in general and specifically in marketing productivity and firm performance in the hotel industry. Future research should include additional factors, use a longitudinal research design and test the model in different sectors of the economy.