Factors influencing market segmentation in the hotel Industry; (the case of selected hotels)
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Date
2012-06
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KNUST
Abstract
Market segmentation has been widely employed to give hoteliers understanding, identify attractive target segments and develop a marketing offer customised to needs of clients. The study examines factors influencing market segmentation of the hotel industry in the Tamale Metropolis. Issues considered in the study are to; identify the criteria used by hotels in segmenting their markets; examine the relevant market segmentation variables in the hotel industry; determine the effects of the criteria identified on the performance of hotels; and establish the relevant consumer characteristics necessary for market segmentation of the hotel industry.The study uses descriptive survey as research design with purposive and accidental sampling techniques to select the respondents for the study. Questionnaire was used as research instrument. The data gathered was analysed using descriptive statistics whereby results were presented in tables, bar charts and pie charts. It was revealed that besides the use of market measurability as criterion, market segmentation was based on the market and not products or types of services rendered by hotels. The study revealed that the demographic and psychographic factors featured more prominently as variables for market segmentation than behavioural and geographic factors. It concludes that market segmentation enhances performance of hotels in the Tamale Metropolis. The study recommends that market segmentation as a marketing strategy is taken seriously by hotels since it promotes quality service delivery and competition among hotels.
Description
A Thesis submitted to the Department of Marketing and Corporate Strategy, Kwame
Nkrumah University of Science and Technology Business School Kumasi, in partial
Fulfilment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION IN MARKETING