Marketing Activities Expenditure And Performance Of Selected Hotels In Kiambu County, Kenya

ABSTRACT

The study investigated the effects of expenditure on marketing activities on performance of

hotels in Kiambu County. The general objective was to investigate the effect of investment

in marketing activities and performance of hotels in Kiambu County. The study specific

objectives were: to determine the effects of expenditure on promotions on performance of

hotels in Kiambu County, to assess the effects of expenditure on market research on

performance of hotels in Kiambu County, to examine the effects of expenditure on

customer management on performance of hotels in Kiambu County and to evaluate the

effects of expenditure on marketing consultancies on performance of hotels in Kiambu

County. Performance of hotels was measured using the indicators of financial

performance, holding capacity and number of customers. The study was guided by the

theories of Research Resource Based View Theory, Relationship Marketing Theory and

Market Orientation Theory. The study adopted descriptive research design. The target

population for this study was 3star, 4 star and 5 star hotels in Kiambu County. Sampling

was done using stratified random sampling technique to come up with a size of

45respondents. Data was collected using questionnaires deployed using drop and pick

method. Data was analyzed using the descriptive techniques and inferential techniques

using multiple regression analysis. The analyzed data was presented in the form of

frequency tables and graphs. Multiple regression analysis was used to establish the exact

strength and influence of each of the independent variables on the dependent variable and

inform the recommendations of the report. The findings of the study revealed that

expenditure on marketing activities. How a significant positive effect on the performance

of hotels. Expenditure on promotional activities had the greatest effect on the performance

of hotels (30.9%). followed by expenditure in market research (28.6%) and then

investment in customer relationship management was third (26.3%) expenditure on

consultants in marketing had the least effects on performance of hotel at (14.2%). The

study recommended that hotels should fund marketing activities proportionate to the effects on performance after evaluating them.