Marketing Activities Expenditures and Performance of Selected Hotels in Kiambu County, Kenya

Abstract

The study investigated the effects of expenditure on marketing on 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 spending on marketing activities. How a significant positive effect on the performance of hotels. Spending on promotional activities had the greatest effect on the performance of hotels (30.9%). followed by spending in market research (28.6%) and then spending in customer relationship management was third (26.3%) spending 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.