Marketing Mix Strategies, Firm Characteristics, Competitive Environment and Performance of Tour Firms in Kenya

Abstract

The current study sought to determine the effect of Marketing Mix Strategies, Firm Characteristics and Competitive Environment on tour firms’ performance in the Kenyan context. Four specific objectives guided the study. These were to: establish the relationship between Organizational Performance and Marketing Mix Strategies of tour firms; determine the influence of Firm Characteristics on the relationship between Marketing Mix Strategies and Organizational Performance; assess the effect of Competitive Environment on the relationship between Marketing Mix Strategies and Organizational Performance; and determine the joint effect of Marketing Mix Strategies, Firm Characteristics and Competitive Environment on Organizational Performance. Several theories including the Service Marketing Theory, on which the study was anchored, supported by the Marketing Mix Strategies Theory, the Resource-Based View and the Competitive Environment Theory, guided this study. The study adopted the positivist philosophy and a descriptive research design. The study’s population encompassed 234 tour firms registered under the Kenya Association of Tour Operators (KATO) and surveyed through a semi-structured questionnaire with the help of key informants in these firms. Applying both descriptive statistics and inferential statistics to analyse the collected data, the researcher ran a series of regression analysis and Pearson’s Product Moment Correlation for hypotheses and other statistical tests. The study found a positive and statistically significant relationship between Marketing Mix Strategies and Organizational Performance. Firm Characteristics and Competitive Environment were also found to positively and statistically moderate the relationship between Marketing Mix Strategies and Organizational Performance. Finally, the joint effect of Marketing Mix Strategies, Firm Characteristics and Competitive Environment was found to significantly influence performance. The study makes theoretical, policy, and managerial contribution to knowledge by reinforcing the Marketing Mix Strategies Theory that contends that Marketing Mix Strategies is one of the important factors in influencing competitive advantage. Further, there is a significant role of this study to policy makers as the insights learnt help them to develop tourism programmes and policies that encourage greater comparability of tour firms and knowledge sharing amongst different stakeholders to develop capacity and capabilities. Managers must take cognizance of the fact that their main duty revolves around isolating the exact needs of customers and deciding on the best Marketing Mix Strategies to adopt to deliver products and services that satisfy both current and potential customers. The study had some operational, methodological and technical limitations due to its scope, but these did not affect the overall design and outcome of the research. This study recommends that as tourism increasingly advances its profile in national economic planning, there is need to make sure that maximum attention is given to its long-term market expansion potential. Future research in other sectors was recommended with suggestion that a similar research be conducted based on other components of the travel trade, such as hoteliers and travel agencies as the unit of analysis. Such a study would enhance the empirical knowledge in the subject matter while also extending the generalizability of the study findings.