A COMPARATIVE EVALUATION OF FACTORS AFFECTING PATRONAGE A CASE STUDY OF SELECTED TWO HOTELS BON AND PROSPEROUS HOTEL IN ADO EKITI

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A COMPARATIVE EVALUATION OF FACTORS AFFECTING PATRONAGE A CASE STUDY OF SELECTED TWO HOTELS BON AND PROSPEROUS HOTEL IN ADO EKITI

ABSTRACT

This study which was carried out in Ado Ekiti between February and March 2001, was aimed at determining if there is any relationship between effective marketing communication, consumer perception and patronage of hotel services. And total 391 respondents (193 from hotel’s management and staff and 198 from customers) were drawn from 5 hotels in Ado Ekiti environs.

The study reveals that there is no strong linear relationship is explained from the point of view of advertising messages acting on the subconscious such that the audience may not realize they are being influenced.

The study reveals that consumers of hotels services at Ado Ekiti are literate (98%) businessmen (62%) who are travelers to Ado Ekiti i.e. non-residents (76%).

Their favourite media include television (70%) and radio (40%), while they are sparingly (19%) attracted to posters. The prime factors that motivate consumers to patronize these hotels, as revealed by the study include: variety of services offered by the hotels (56%), courteousness of staff (54%) and the location of the hotel (39%). Class consciousness amongst the customers of these hotels was shown to be high.

Factors though to have played some roles in the whole marketing milieu under consideration, vis-à-vis the effectiveness of the hotel’s communication strategies were identified and discussed.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

Marketing communication includes advertising, public

relations, personal selling and sales promotions like other forms of communication, it is aimed at the transmission of information from the marketer or an organization through a media mix, to targeted audience (consumer). The purpose of such communication is to elicit the desired feedback or response which translate into patronage of the marketer’s or organization’s goods, services or ideals.

Marketing communication plays a salient role in creating mutually satisfactory, exchange relationships and transaction between an organization and its relevant audience. Marketing communication goal is not only to induce initial purchase, it also achieves post purchase satisfaction thereby creating repeat purchase. It has also been seen as the process by which information about an organization, its products and services is disseminated to its relevant market.

Latin (1962), defines hotels as “building or institutions providing lodging, meals and services for the public”. Hewil (1981) went further to comment that “a more workable definition could limit use of the word hotel to those institutions operated for a profit which provide the above mentioned services”. Concluding he

organizations from classification as hotels.

Berelson and Steiner (1964) see perception as “the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world”. But “perception depends on not only.

The character or physical stimuli but also on

The relation of the stimuli to the surroundings field (the

Gestalt idea) and on.

Condition within the individual” (Kotler, 1980).

In other words “throughout the process of environmental perception the individual is never passive. The perceiver always acts as a component of the situation he perceives” (lttelson et al, 1974).

In Barnhart’s (1975) view, patronage means “regular business” given by customers. Implicit in the above definition, is that repeat purchase, which is a function of satisfaction from previous (or trial) purchase, is necessary for the survival and growth of an organization.

As we see from the foregoing, hotel specializes in the marketing services. Thus, they try to communicate these services to consumers through various forms of marketing communication. The essence of this communication no doubt, is to influence and favourably too, consumer’s perception vis-à-vis patronage of their services. These need to be studied and understood in the Nigerian context.

But since “our manner and behaviour often speak more plainly than words” (Hall,1961), and since “any setting by virtue of its people activities and physical features induce an atmosphere of its own which is difficult to define but is an integral part of one’s perception of environment” (Ittelson et al 1974). We must also study and understood some aspects of hotels like exterior and interior hotels appearance, communicating involvement, room ambience, personnel appearance, personal attitude, variety of services offered, among others. This is more so since a “service is inseparable from the source that renders it” (Kotler 1980). In other words, these aspects are what constitute the “product” in hotel business.

Marketing communication came into being as a result of its role in marketing products or services through the right channel to the target audience. Since it is a process by which information about an organization, its product and services is disseminated to its relevant market. Most people have come to know about a product through the promotional mix such as personal selling, advertising, sales promotion, public relation.

The marketing promotional channel media or mix which the market selects determines what audience he will reach and the kind of message he may send to his audience. If one channel media or a mix of some channels do not provide the audience and permit the message a marketer specifies, he will look for another channel or combination of channels for effective communication.

Invariably, perception although is the idea of “reality” may not first seem straight forward, individuals differ in how they perceive reality. That is to say, that no two people will perceive a product or advertisement in exactly the same way. Services offered by marketers or hoteliers provide many examples of how perception differ. The service provided by two hotels would not be viewed I the same way because individual perception takes place through the senses and can never be the same based on the process of interpretation.

However, most marketers of a product or service face the problem of adopting different promotional strategy to get the audience conviced on the particular product or services based on the differences in perception.

1.2 STATEMENT OF THE PROBLEM

We have a feeling that there is a relationship between consumer perception and patronage of hotels. Even more critically we believe that this consumer perception/patronage is shaped by effectiveness of marketing communication efforts of the hotels.

Our task in this project therefore, is to confirm, describe and analyze this relationship if it exists or otherwise, disconfirm it.

1.3 OBJECTIVES OF THE STUDY

The specific objectives of this study therefore are viz.

To determine the nature and degree of relationship between effective marketing communication and consumer perception/patronage of hotel services.

To evaluate the role(s) of the “product” in influencing consumer perception/patronage.

To determine and compare the relative effectiveness of the various of the communication mix.

1.4 RESEARCH QUESTIONS

What are the forms and nature of marketing communication and consumer perception/patronage of hotel?

Is there any relationship between effective marketing communication and consumer perception/patronage of hotel?

What feature(s) of the product (i.e. hotel services) positively influence consumer perception/patronage?

1.5 HYPOTHESIS

Ho: There is no strong positive relationship between effective communication and consumer perception/patronage of

hotel services.

H1: There is a strong positive relationship between effective communication and consumer perception/patronage of

hotel services.

1.6 SIGNIFICANCE OF STUDY

As is expected millions of naira is invested in marketing communication by hotels in furtherance of their objectives in the market place which may include product awareness, brand loyalty, increased sale and good consumer relations through feedback

among others.

Today there is litany of hotels (unlike what obtained twenty years back) offering identical services; consumers thus, can now choose what they hope to derive from these hotels in consonance with consumers’ tastes and preferences.

Thus study thus will assist hoteliers to know the best (i.e. the most effective) media mix to spend their promotional budget, not only to achieve set objectives but to reduce cost. The factors that cause the customers to choose one hotel against the others may provide a clue on media interest (habits) of the target market.

Knowledge of this factor no doubt will assist hoteliers in designing efficient consumer oriented packages which are precursory to achievement of optimal sales volume at low promotional expense value.

1.7 LIMITATIONS AND SCOPE OF STUDY

Different sizes and grades of hotels abound. There are onestar, two-star, three-star, four-star and five-star hotels, since there are no indices to compare say two-star hotel with three-star hotels, or four-star hotels we intend to limit this study to a particular grade of hotel, precisely three-star hotels.

Though it would represent a more holistic approach also study other grades of hotels than intended the nature of this work, time and available finance impose constraints that may not permit an extension in the scope of this study. This study is designed to cover only hotels within the Ado Ekiti metropolis. Business environment and consumer attitudes in Ado Ekiti are expected, to differ at least reasonably, from that obtainable in any other city. Because organizations do not operate out of their environmental context, sampling hotels from un-identical environmental context may likely yield misguided judgment.

Consequent upon the forgoing constraints, this study is limited to three-star hotels within Ado Ekiti metropolis.

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