This document summarizes a study that investigated the importance hotels place on executing competitive marketing strategies and managing supply and demand. Hotel managers across different sizes and ownership types were surveyed. The study found that all hotels consider competitive marketing strategies important. However, the importance placed on certain strategies correlated with hotel size and ownership type.
Sustaining Value Creation through Knowledge of Customer ExpectationsIOSR Journals
As the pursuit of knowledge becomes increasingly central to firms’ competitiveness, we argued that knowing what the customer expects of product offerings is a prerequisite for sustaining the delivery of value. Thus, this paper seeks to provide a theoretical contribution to the growing recognition of researches on customer as a source of firms’ competence. By building on extant literature of value creation, customer satisfaction/dissatisfaction, and the theories of firm knowledge creation, we proposed a framework of how firms can sustain value creation through knowledge of customer expectations. We argued that sustaining firms’ value creation resides in the ability of firms to continuously anticipate, integrate and configure knowledge of customer expectations to create product offerings that meet or exceed customer expectations and generate better economic returns than other competing alternative firms
Service market segmentation and targetingManvi Sehgal
1. Segmentation, targeting, and positioning are strategic marketing fundamentals used to generate competitive advantage and business opportunities. Segmentation involves dividing the market into distinct groups that share common characteristics, needs, behaviors, or patterns.
2. There are four types of service organizations based on their service focus and market focus: unfocused, service focused, market focused, and fully focused. Market segmentation recognizes the need for specialization to suit market segments rather than trying to be all things to all people.
3. Market segmentation leads to more efficient resource utilization, improved market manageability by dividing into smaller parts, and an enhanced ability to satisfy customers. The objectives of segmentation are to identify similarities and differences between buyer needs in segments
Impact of Marketing Strategy on Business Performance A Study of Selected Smal...IOSR Journals
This research paper investigates the impact of marketing strategy on business performance with special reference to the selected SMEs in Oluyole local government area Ibadan, Nigeria. The survey research design method was used in this study which involves using a self-design questionnaire in collecting data from one hundred and three (103) respondents. The instrument used in this study is a close-ended questionnaire that was designed by the researchers. Correlation coefficient and multiple regression analysis were used to analyze the data with the aid of statistical package for social sciences (SPSS) version 20. The results show that the independent variables (i.e Product, Promotion, Place, Price, Packaging and After sales service) were significant joint predictors of business performance in term of profitability, market share, return on investment, and expansion.(F(6, 97) = 14.040; R2 = 0.465; P< .05). The independent variables jointly explained 46.5% of variance in business performance. Subsequently, recommendation were made to SMEs operators to produce quality products; charge competitive prices, position appropriately, use attractive package for the product, engage in after sales service and provide other distinctive functional benefits to consumers.
This document discusses key concepts in marketing. It begins by defining marketing as the process of determining consumer demand, motivating sales, and distributing products or services for profit. It then covers various marketing topics like the marketing concept, types of markets, evolution of modern marketing, and the differences between marketing and selling. The document also discusses the marketing mix, product strategies, pricing methods, distribution channels, and the promotion mix as the key elements of marketing management. It provides examples of how these concepts apply for marketing of financial services and banking products.
Market Orientation, Learning Organization and Dynamic Capability as Anteceden...IOSR Journals
Strategic competitiveness is achieved when a firm successfully formulate and implement a strategy of value creation. In order to create competitive advantage, the theory of competitive advantage have contributed to the present two major schools of the Market-Based View (MBV) and Resources-Based View (RBV), which both lead the company in creating a competitive advantage through superior value. The purpose of this paper is to examine the relationship between market orientation, learning organization and dynamic capability on value creation. Using a questionnaire survey, the paper is based on data collected from 105 owners or managers of industry creative in Indonesia. The partial least squares (PLS) structural equation modeling approach was used to analyze the data and test the hypotheses.The results indicate that, among the market orientation, learning organization, dynamic capability are significantly and positively related to value creation.
Why should service firms focus their effortsquivenkaye
Successful companies strategically focus their efforts on satisfying customer needs better than competitors. Strategic thinking and planning allow companies to identify the right strategy and pursue it to achieve desired results. Market segmentation is important for service firms because it allows dividing the market into subgroups based on variables like demographics, to more closely match the needs of particular consumer groups. To identify target market segments, companies should analyze customer and product characteristics, consider the lifestyles and interests of potential customers, research competitor targets, and examine their current customer base to determine which customer types have the greatest need for their services. Determinant attributes are those aspects like quality, price, or service that determine why consumers purchase products from one competitor over others.
This document provides a literature review on niche marketing. It defines niche marketing as targeting small, specific market segments to achieve dominance. The review explores reasons for niche marketing strategies, including focusing on suitable markets and increasing returns. It also examines characteristics of niche markets, such as higher costs and prices to compensate for lower volumes. Both advantages, like opportunities for growth, and disadvantages, like vulnerability to changes, of niche marketing are discussed. The review aims to understand niche roles and characteristics to help companies determine if niche marketing is an appropriate strategy.
Sustaining Value Creation through Knowledge of Customer ExpectationsIOSR Journals
As the pursuit of knowledge becomes increasingly central to firms’ competitiveness, we argued that knowing what the customer expects of product offerings is a prerequisite for sustaining the delivery of value. Thus, this paper seeks to provide a theoretical contribution to the growing recognition of researches on customer as a source of firms’ competence. By building on extant literature of value creation, customer satisfaction/dissatisfaction, and the theories of firm knowledge creation, we proposed a framework of how firms can sustain value creation through knowledge of customer expectations. We argued that sustaining firms’ value creation resides in the ability of firms to continuously anticipate, integrate and configure knowledge of customer expectations to create product offerings that meet or exceed customer expectations and generate better economic returns than other competing alternative firms
Service market segmentation and targetingManvi Sehgal
1. Segmentation, targeting, and positioning are strategic marketing fundamentals used to generate competitive advantage and business opportunities. Segmentation involves dividing the market into distinct groups that share common characteristics, needs, behaviors, or patterns.
2. There are four types of service organizations based on their service focus and market focus: unfocused, service focused, market focused, and fully focused. Market segmentation recognizes the need for specialization to suit market segments rather than trying to be all things to all people.
3. Market segmentation leads to more efficient resource utilization, improved market manageability by dividing into smaller parts, and an enhanced ability to satisfy customers. The objectives of segmentation are to identify similarities and differences between buyer needs in segments
Impact of Marketing Strategy on Business Performance A Study of Selected Smal...IOSR Journals
This research paper investigates the impact of marketing strategy on business performance with special reference to the selected SMEs in Oluyole local government area Ibadan, Nigeria. The survey research design method was used in this study which involves using a self-design questionnaire in collecting data from one hundred and three (103) respondents. The instrument used in this study is a close-ended questionnaire that was designed by the researchers. Correlation coefficient and multiple regression analysis were used to analyze the data with the aid of statistical package for social sciences (SPSS) version 20. The results show that the independent variables (i.e Product, Promotion, Place, Price, Packaging and After sales service) were significant joint predictors of business performance in term of profitability, market share, return on investment, and expansion.(F(6, 97) = 14.040; R2 = 0.465; P< .05). The independent variables jointly explained 46.5% of variance in business performance. Subsequently, recommendation were made to SMEs operators to produce quality products; charge competitive prices, position appropriately, use attractive package for the product, engage in after sales service and provide other distinctive functional benefits to consumers.
This document discusses key concepts in marketing. It begins by defining marketing as the process of determining consumer demand, motivating sales, and distributing products or services for profit. It then covers various marketing topics like the marketing concept, types of markets, evolution of modern marketing, and the differences between marketing and selling. The document also discusses the marketing mix, product strategies, pricing methods, distribution channels, and the promotion mix as the key elements of marketing management. It provides examples of how these concepts apply for marketing of financial services and banking products.
Market Orientation, Learning Organization and Dynamic Capability as Anteceden...IOSR Journals
Strategic competitiveness is achieved when a firm successfully formulate and implement a strategy of value creation. In order to create competitive advantage, the theory of competitive advantage have contributed to the present two major schools of the Market-Based View (MBV) and Resources-Based View (RBV), which both lead the company in creating a competitive advantage through superior value. The purpose of this paper is to examine the relationship between market orientation, learning organization and dynamic capability on value creation. Using a questionnaire survey, the paper is based on data collected from 105 owners or managers of industry creative in Indonesia. The partial least squares (PLS) structural equation modeling approach was used to analyze the data and test the hypotheses.The results indicate that, among the market orientation, learning organization, dynamic capability are significantly and positively related to value creation.
Why should service firms focus their effortsquivenkaye
Successful companies strategically focus their efforts on satisfying customer needs better than competitors. Strategic thinking and planning allow companies to identify the right strategy and pursue it to achieve desired results. Market segmentation is important for service firms because it allows dividing the market into subgroups based on variables like demographics, to more closely match the needs of particular consumer groups. To identify target market segments, companies should analyze customer and product characteristics, consider the lifestyles and interests of potential customers, research competitor targets, and examine their current customer base to determine which customer types have the greatest need for their services. Determinant attributes are those aspects like quality, price, or service that determine why consumers purchase products from one competitor over others.
This document provides a literature review on niche marketing. It defines niche marketing as targeting small, specific market segments to achieve dominance. The review explores reasons for niche marketing strategies, including focusing on suitable markets and increasing returns. It also examines characteristics of niche markets, such as higher costs and prices to compensate for lower volumes. Both advantages, like opportunities for growth, and disadvantages, like vulnerability to changes, of niche marketing are discussed. The review aims to understand niche roles and characteristics to help companies determine if niche marketing is an appropriate strategy.
Using brand equity to drive sustainable growthR. Jay Olson
The document discusses strategies for using brand equity to drive sustainable growth. It defines brand equity as the perceived value of a brand's image attributes. It then presents the Brand Value Equation, which calculates brand value based on product/service benefits, channel benefits, brand equity, and costs. The equation shows that brand equity is a powerful lever for competitive advantage. However, brands face threats of losing relevance, so strategies like branded sponsorships and social programs are needed to create energy and remain relevant. Crucially, internal brand-building must establish a brand's promise and values before external initiatives. Research shows "storydoing" companies that live their brand story outperform those only telling it.
Logistics involves planning and coordinating the efficient flow of goods and services from suppliers to customers. It integrates information, transportation, inventory, warehousing and packaging. The goal of logistics management is to deliver products to customers with the highest service levels at the lowest possible cost. Effective logistics can provide a competitive advantage by differentiating a company through lower costs or better customer service than competitors. Logistics management aims to strategically coordinate procurement, production and distribution to maximize profitability through fulfilling customer orders in a cost-effective manner.
Using Of Target Customer Purchase Information In Retail Chain ManagementAntti Syväniemi
This document describes a normative model for using target customer purchase information in retail chain management. It discusses segmenting customers and understanding their needs to tailor products, services, and store locations. The model aims to direct retail processes based on changed market conditions. It emphasizes the importance of intra-organizational collaboration and a customer-centered approach using customer relationship management and process management. The document outlines key retail business processes and the data needed, such as customer purchase histories, to better meet customer needs across different customer touchpoints.
The Royalty Of Loyalty Crm, Quality And RetentionDonovan Mulder
The document discusses the relationship between customer relationship management (CRM), product/service quality, and customer loyalty. It proposes a new 5Qs model to measure quality and loyalty, with the 5Qs being quality of object, processes, infrastructure, interaction, and atmosphere. The model suggests that improving each quality dimension through CRM strategies can increase customer satisfaction and loyalty over time. Effective CRM requires understanding customers, having a well-structured customer database, and linking quality improvements to strategy changes to document their impact on satisfaction and competitive advantage.
This document summarizes a study that examined the impact of internal marketing practices on customer loyalty at the African Community Credit Bank in Cameroon. The study used surveys of 60 employees and 372 customers across three towns. Structural equation modeling found that internal marketing had a positive and significant effect on three of the four dimensions of customer loyalty (cognitive, affective, and action loyalty), but not on conative loyalty. The results indicate internal marketing can positively influence customer loyalty for banks, with implications for customer retention strategies.
Creating value for customers involves understanding what benefits customers perceive from a purchase relative to the price. Customer value is maximized by choosing the right value proposition for different customer segments and effectively communicating, delivering, and maintaining the promised value over time through relationships and customized delivery systems. Key steps are to analyze customer value needs, develop products and services to provide that value, distribute and service customers, and communicate the value proposition.
Strategic analysis through general electricHenok Fasil
This document summarizes a research study that applies the General Electric/McKinsey matrix to analyze the competitive positions of four major Italian fashion companies (Valentino, Armani, Moschino, and Benetton). The GE/McKinsey matrix evaluates businesses based on their industry attractiveness and competitive strengths. The study describes how to construct the matrix and presents the results for each company over five years. While based on a limited sample, the study provides an example of how to use the matrix methodology to compare fashion brands and highlights differences between higher-end "couture" brands and mid-range "ready-to-wear" brands.
The document summarizes key concepts in customer-driven marketing. It discusses how marketing creates utility for customers and the evolution of the marketing concept to a customer orientation. It also outlines the basic steps in developing a marketing strategy, including analyzing target markets and creating a marketing mix. Relationship marketing and tools for nurturing customer relationships are also summarized.
This study examined the effect of market segmentation on the performance of micro, small, and medium enterprises in Makurdi Metropolis, Benue State, Nigeria. A survey was conducted of 246 owners and managers of these enterprises. Multiple regression analysis found that demographic segmentation had a positive and statistically significant effect on enterprise performance, while geographic and behavioral segmentation had negative effects that were not statistically significant. The study concludes that market segmentation can improve enterprise performance by helping to identify the best customer groups to target. It recommends that enterprises in the area focus their segmentation on demographic characteristics.
Analysis of why brand valuation has failed to deliver the benefits that marketers had hoped for - the artificiality of its premise; and the inconsistency of the current valuations produced by Interbrand, Brand Finance, Millward Brown and the European Brand Institute.
Comparison of the valuation of brand by the accountants (for the purposes of post purchase goodwill accounting) and by the brand consultants.
Recommendation that marketers are better served by framing brands as having a multiplier/magnifier effect on the impact of business strategy, rather than being viewed as standalone assets whose value is independent from the value of the business.
This document discusses the shift from traditional firm-centric value creation to co-creation of value between firms and consumers. It argues that today's consumers are more informed, connected, and active and want to interact with firms in the value creation process. The interaction between firms and consumers is becoming the locus of value creation, rather than firms acting autonomously. For value creation to work in this new context, firms need to focus on co-creating personalized experiences with each consumer through dialogue, access to information, understanding risk-benefits, and transparency.
This document presents six case studies that examine how local governments in various African countries are engaging with and managing the informal economy. The case studies cover initiatives in Kenya, Mali, Rwanda, South Africa, and Tanzania that showcase different local government approaches to better support the informal economy. Key lessons from the cases include the importance of stakeholder participation, developing partnerships between local authorities and informal businesses, and moving beyond evictions to more inclusive policies that recognize the value of the informal economy.
Mobile and social innovation governance, human empowerment and the role of ic...Dr Lendy Spires
Mobile technologies are revolutionizing access to information and enabling new forms of participation. Billions now have access to mobile phones, which provide affordable communication and information sharing. Examples show how crowdsourcing, anti-corruption tools, mobile banking and other innovations empower people in developing nations. However, challenges remain in reaching the poor due to infrastructure gaps, skills, costs and other barriers. Moving forward, local innovation and partnerships can further extend the benefits of mobile access to enhance human development worldwide.
Report on the Implementation of the Investment Policy ReviewDr Lendy Spires
The document provides a summary of findings from a report on Zambia's implementation of recommendations from its 2006 Investment Policy Review. It finds that Zambia has substantially or fully implemented over half of the recommendations, with key progress made in business facilitation, access to finance, and improved infrastructure. However, some reforms around diversifying the economy and further improving the legal framework for business have only been partially implemented. The report concludes that while Zambia has maintained political stability and an optimistic investment climate, further reforms are still needed in some areas to foster long-term sustainable growth.
This thesis examines the effect of supply chain management processes on competitive advantage and organizational performance. It conceptualizes three dimensions of SCM practice: supplier relationship management, manufacturing flow management, and product development and commercialization. Data was collected from prominent organizations and relationships between SCM practices, competitive advantage, and performance were tested using statistical techniques. The results indicate higher SCM practice can lead to enhanced competitive advantage and improved organizational performance.
This document summarizes a white paper on competitive procurement of retail electricity supply. It discusses trends in state policies that require or encourage utilities to use competitive procurement processes to obtain power supply. Key issues discussed include designing procurements to prevent improper self-dealing by utilities, evaluating both price and non-price criteria in supply offers, and structuring regulatory policies to promote competitive supply offers while fulfilling other obligations. The document also compares procurement frameworks for obtaining incremental new supply versus procuring full-requirements service supply.
Broadband Infraco provides high capacity long distance transmission services in South Africa. It aims to expand network infrastructure and connectivity, especially to underserved areas, to stimulate private sector growth. The document outlines Broadband Infraco's vision, mission, organizational structure, board of directors, and network infrastructure which includes a national fiber optic network and international submarine cable. It discusses the company's role in addressing high broadband costs and lack of connectivity in South Africa.
This systematic review examined 34 quantitative studies on the impact of national health insurance programs for the poor in low- and middle-income countries. The studies showed inconclusive evidence on the impact of these programs. While some programs increased healthcare utilization, the evidence for their impact on health status and reducing out-of-pocket expenditures was weak, especially for the poorest populations. More rigorous evaluation studies are needed that employ strong methodologies and consider supply-side health system factors to better inform policy decisions around these programs.
This document discusses international and national definitions of the informal sector. It summarizes that the 15th International Conference of Labour Statisticians adopted an international statistical definition of the informal sector in 1993 based on characteristics of unincorporated enterprises. However, national definitions vary in terms of data sources, coverage, criteria used to define the informal sector, and treatment of specific groups. These differences affect the international comparability of informal sector statistics. Harmonizing national definitions with the international framework would enhance comparability.
This thesis examines the effect of supply chain management processes on competitive advantage and organizational performance. It conceptualizes three dimensions of SCM practice: supplier relationship management, manufacturing flow management, and product development and commercialization. Data was collected from prominent organizations and relationships between SCM practices, competitive advantage, and performance were tested using statistical techniques. The results indicate higher SCM practice can lead to enhanced competitive advantage and improved organizational performance.
This document provides an executive summary of the United Arab Emirates' 10 Year Report from 2013-2014 on progress related to the World Summit on the Information Society (WSIS). It discusses key accomplishments in ICT development that align with WSIS action lines and the Millennium Development Goals. It also profiles the TRA, highlights major initiatives like the UAE mGovernment, and previews the sections to follow on specific programs and case studies of ICT applications in areas such as e-government, e-health, e-learning and more.
This report analyzes renewable energy supply conditions in the Western US after states meet their renewable portfolio standard requirements by 2025. It finds that significant wind, solar, and geothermal resources will remain undeveloped after 2025. The best remaining resources will depend on location, transmission access, and cost-effective integration into the generation mix. While many factors could affect future policies, the report aims to characterize renewable resources likely available after 2025 to inform long-term planning discussions beyond just meeting RPS targets.
Using brand equity to drive sustainable growthR. Jay Olson
The document discusses strategies for using brand equity to drive sustainable growth. It defines brand equity as the perceived value of a brand's image attributes. It then presents the Brand Value Equation, which calculates brand value based on product/service benefits, channel benefits, brand equity, and costs. The equation shows that brand equity is a powerful lever for competitive advantage. However, brands face threats of losing relevance, so strategies like branded sponsorships and social programs are needed to create energy and remain relevant. Crucially, internal brand-building must establish a brand's promise and values before external initiatives. Research shows "storydoing" companies that live their brand story outperform those only telling it.
Logistics involves planning and coordinating the efficient flow of goods and services from suppliers to customers. It integrates information, transportation, inventory, warehousing and packaging. The goal of logistics management is to deliver products to customers with the highest service levels at the lowest possible cost. Effective logistics can provide a competitive advantage by differentiating a company through lower costs or better customer service than competitors. Logistics management aims to strategically coordinate procurement, production and distribution to maximize profitability through fulfilling customer orders in a cost-effective manner.
Using Of Target Customer Purchase Information In Retail Chain ManagementAntti Syväniemi
This document describes a normative model for using target customer purchase information in retail chain management. It discusses segmenting customers and understanding their needs to tailor products, services, and store locations. The model aims to direct retail processes based on changed market conditions. It emphasizes the importance of intra-organizational collaboration and a customer-centered approach using customer relationship management and process management. The document outlines key retail business processes and the data needed, such as customer purchase histories, to better meet customer needs across different customer touchpoints.
The Royalty Of Loyalty Crm, Quality And RetentionDonovan Mulder
The document discusses the relationship between customer relationship management (CRM), product/service quality, and customer loyalty. It proposes a new 5Qs model to measure quality and loyalty, with the 5Qs being quality of object, processes, infrastructure, interaction, and atmosphere. The model suggests that improving each quality dimension through CRM strategies can increase customer satisfaction and loyalty over time. Effective CRM requires understanding customers, having a well-structured customer database, and linking quality improvements to strategy changes to document their impact on satisfaction and competitive advantage.
This document summarizes a study that examined the impact of internal marketing practices on customer loyalty at the African Community Credit Bank in Cameroon. The study used surveys of 60 employees and 372 customers across three towns. Structural equation modeling found that internal marketing had a positive and significant effect on three of the four dimensions of customer loyalty (cognitive, affective, and action loyalty), but not on conative loyalty. The results indicate internal marketing can positively influence customer loyalty for banks, with implications for customer retention strategies.
Creating value for customers involves understanding what benefits customers perceive from a purchase relative to the price. Customer value is maximized by choosing the right value proposition for different customer segments and effectively communicating, delivering, and maintaining the promised value over time through relationships and customized delivery systems. Key steps are to analyze customer value needs, develop products and services to provide that value, distribute and service customers, and communicate the value proposition.
Strategic analysis through general electricHenok Fasil
This document summarizes a research study that applies the General Electric/McKinsey matrix to analyze the competitive positions of four major Italian fashion companies (Valentino, Armani, Moschino, and Benetton). The GE/McKinsey matrix evaluates businesses based on their industry attractiveness and competitive strengths. The study describes how to construct the matrix and presents the results for each company over five years. While based on a limited sample, the study provides an example of how to use the matrix methodology to compare fashion brands and highlights differences between higher-end "couture" brands and mid-range "ready-to-wear" brands.
The document summarizes key concepts in customer-driven marketing. It discusses how marketing creates utility for customers and the evolution of the marketing concept to a customer orientation. It also outlines the basic steps in developing a marketing strategy, including analyzing target markets and creating a marketing mix. Relationship marketing and tools for nurturing customer relationships are also summarized.
This study examined the effect of market segmentation on the performance of micro, small, and medium enterprises in Makurdi Metropolis, Benue State, Nigeria. A survey was conducted of 246 owners and managers of these enterprises. Multiple regression analysis found that demographic segmentation had a positive and statistically significant effect on enterprise performance, while geographic and behavioral segmentation had negative effects that were not statistically significant. The study concludes that market segmentation can improve enterprise performance by helping to identify the best customer groups to target. It recommends that enterprises in the area focus their segmentation on demographic characteristics.
Analysis of why brand valuation has failed to deliver the benefits that marketers had hoped for - the artificiality of its premise; and the inconsistency of the current valuations produced by Interbrand, Brand Finance, Millward Brown and the European Brand Institute.
Comparison of the valuation of brand by the accountants (for the purposes of post purchase goodwill accounting) and by the brand consultants.
Recommendation that marketers are better served by framing brands as having a multiplier/magnifier effect on the impact of business strategy, rather than being viewed as standalone assets whose value is independent from the value of the business.
This document discusses the shift from traditional firm-centric value creation to co-creation of value between firms and consumers. It argues that today's consumers are more informed, connected, and active and want to interact with firms in the value creation process. The interaction between firms and consumers is becoming the locus of value creation, rather than firms acting autonomously. For value creation to work in this new context, firms need to focus on co-creating personalized experiences with each consumer through dialogue, access to information, understanding risk-benefits, and transparency.
This document presents six case studies that examine how local governments in various African countries are engaging with and managing the informal economy. The case studies cover initiatives in Kenya, Mali, Rwanda, South Africa, and Tanzania that showcase different local government approaches to better support the informal economy. Key lessons from the cases include the importance of stakeholder participation, developing partnerships between local authorities and informal businesses, and moving beyond evictions to more inclusive policies that recognize the value of the informal economy.
Mobile and social innovation governance, human empowerment and the role of ic...Dr Lendy Spires
Mobile technologies are revolutionizing access to information and enabling new forms of participation. Billions now have access to mobile phones, which provide affordable communication and information sharing. Examples show how crowdsourcing, anti-corruption tools, mobile banking and other innovations empower people in developing nations. However, challenges remain in reaching the poor due to infrastructure gaps, skills, costs and other barriers. Moving forward, local innovation and partnerships can further extend the benefits of mobile access to enhance human development worldwide.
Report on the Implementation of the Investment Policy ReviewDr Lendy Spires
The document provides a summary of findings from a report on Zambia's implementation of recommendations from its 2006 Investment Policy Review. It finds that Zambia has substantially or fully implemented over half of the recommendations, with key progress made in business facilitation, access to finance, and improved infrastructure. However, some reforms around diversifying the economy and further improving the legal framework for business have only been partially implemented. The report concludes that while Zambia has maintained political stability and an optimistic investment climate, further reforms are still needed in some areas to foster long-term sustainable growth.
This thesis examines the effect of supply chain management processes on competitive advantage and organizational performance. It conceptualizes three dimensions of SCM practice: supplier relationship management, manufacturing flow management, and product development and commercialization. Data was collected from prominent organizations and relationships between SCM practices, competitive advantage, and performance were tested using statistical techniques. The results indicate higher SCM practice can lead to enhanced competitive advantage and improved organizational performance.
This document summarizes a white paper on competitive procurement of retail electricity supply. It discusses trends in state policies that require or encourage utilities to use competitive procurement processes to obtain power supply. Key issues discussed include designing procurements to prevent improper self-dealing by utilities, evaluating both price and non-price criteria in supply offers, and structuring regulatory policies to promote competitive supply offers while fulfilling other obligations. The document also compares procurement frameworks for obtaining incremental new supply versus procuring full-requirements service supply.
Broadband Infraco provides high capacity long distance transmission services in South Africa. It aims to expand network infrastructure and connectivity, especially to underserved areas, to stimulate private sector growth. The document outlines Broadband Infraco's vision, mission, organizational structure, board of directors, and network infrastructure which includes a national fiber optic network and international submarine cable. It discusses the company's role in addressing high broadband costs and lack of connectivity in South Africa.
This systematic review examined 34 quantitative studies on the impact of national health insurance programs for the poor in low- and middle-income countries. The studies showed inconclusive evidence on the impact of these programs. While some programs increased healthcare utilization, the evidence for their impact on health status and reducing out-of-pocket expenditures was weak, especially for the poorest populations. More rigorous evaluation studies are needed that employ strong methodologies and consider supply-side health system factors to better inform policy decisions around these programs.
This document discusses international and national definitions of the informal sector. It summarizes that the 15th International Conference of Labour Statisticians adopted an international statistical definition of the informal sector in 1993 based on characteristics of unincorporated enterprises. However, national definitions vary in terms of data sources, coverage, criteria used to define the informal sector, and treatment of specific groups. These differences affect the international comparability of informal sector statistics. Harmonizing national definitions with the international framework would enhance comparability.
This thesis examines the effect of supply chain management processes on competitive advantage and organizational performance. It conceptualizes three dimensions of SCM practice: supplier relationship management, manufacturing flow management, and product development and commercialization. Data was collected from prominent organizations and relationships between SCM practices, competitive advantage, and performance were tested using statistical techniques. The results indicate higher SCM practice can lead to enhanced competitive advantage and improved organizational performance.
This document provides an executive summary of the United Arab Emirates' 10 Year Report from 2013-2014 on progress related to the World Summit on the Information Society (WSIS). It discusses key accomplishments in ICT development that align with WSIS action lines and the Millennium Development Goals. It also profiles the TRA, highlights major initiatives like the UAE mGovernment, and previews the sections to follow on specific programs and case studies of ICT applications in areas such as e-government, e-health, e-learning and more.
This report analyzes renewable energy supply conditions in the Western US after states meet their renewable portfolio standard requirements by 2025. It finds that significant wind, solar, and geothermal resources will remain undeveloped after 2025. The best remaining resources will depend on location, transmission access, and cost-effective integration into the generation mix. While many factors could affect future policies, the report aims to characterize renewable resources likely available after 2025 to inform long-term planning discussions beyond just meeting RPS targets.
The document discusses ways to develop a thriving informal sector in African countries through vocational training. It identifies 10 key factors or guidelines that can help ensure training in the informal sector increases skills levels and supports economic development. These include introducing pre-vocational training for youth, acknowledging the sector's existing skills development roles, enhancing the role of professional organizations in defining training needs, giving youth a voice in access to jobs and enterprise creation, and organizing traditional apprenticeships. The document emphasizes that training must be part of a broader approach involving skills development, monitoring training outcomes, and providing material and financial support for enterprise creation to be truly effective.
The document summarizes a study that analyzes the impact of introducing a minimum wage in South Africa's domestic worker sector in 2002. The authors exploit variations in the intensity of the minimum wage law across areas and over time using labor survey data from 2001-2004. They find that domestic worker wages increased by about 20% in the 16 months after the law, with additional increases of 10-15% in areas where the minimum wage was more binding. They also find the probability of a formal employment contract doubling but no significant effects on employment or hours worked. This provides evidence that labor legislation can impact informal sectors even without enforcement, potentially beginning the process of formalization.
Key elements procedure 2 sqam supplier quality assurance manual valid for 3...Dr Lendy Spires
This document provides Volvo's supplier quality assurance requirements. It outlines Volvo's expectations for suppliers regarding quality management systems, processes, and performance metrics. Key points include:
- Suppliers must meet quality targets for PPM, QPM, fault frequency, and delivery precision.
- Suppliers must maintain certified quality and environmental management systems.
- Processes like APQP, PPAP, production part approval, and managing non-conformances are defined.
- Performance is measured through a scorecard system focusing on metrics like PPM, warranty issues, and on-time delivery. Continual improvement is expected.
The manual is intended to ensure suppliers provide products that meet Volvo's
Marketing for service quality in jordanian construction project organisationAlexander Decker
This document summarizes marketing concepts as applied to the construction industry in Jordan. It finds that most construction companies in Jordan do not have dedicated marketing departments or see marketing as a legitimate activity. Contracts are typically awarded based primarily on price. The document reviews key marketing concepts including the marketing mix, marketing orientation, segmentation, and positioning. It emphasizes the importance of understanding customer needs to improve quality and satisfaction.
This document summarizes a research study that examined how Chinese hotels implement Porter's generic strategies of differentiation and cost leadership, and the impact of these strategies on financial performance and customer satisfaction. The study found that differentiation positively influences customer satisfaction in Chinese hotels, but cost leadership does not significantly impact either financial performance or customer satisfaction. The document provides background on Porter's generic strategies, the Chinese hotel industry, prior research, and defines the variables of organizational performance, financial performance, and customer satisfaction in the hotel industry.
This document reviews literature on quality management in the health care industry. It discusses how quality management aims to establish long-term, trusting relationships with patients by focusing on their expectations and satisfaction. The document also examines how quality management requires viewing patients as people first and selecting the most profitable relationships to exceed patients' expectations through service quality. Finally, it explores how effective quality management strategies integrate customers throughout the organization and view business through customers' eyes to continuously improve quality and satisfaction.
Benefits of customer retention and reichheld’s loyalty management strategyMiraziz Bazarov
1. The document discusses the benefits of increased customer retention and Reichheld's Loyalty Management Strategy. It notes that retaining customers is cheaper than acquiring new ones and can significantly increase profits.
2. Reichheld's strategy involves building superior customer value, finding the right customers, earning customer loyalty, finding and earning employee loyalty, gaining cost advantages through productivity, finding the right investors, and earning investor loyalty.
3. Implementing a strong customer retention strategy can increase customer lifetime value, reduce costs, and boost brand reputation through word-of-mouth, leading to increased revenues and profits.
Marriott International's current strategy of differentiating its hotel offerings is supported by an analysis of the company and industry. Marriott is performing better than competitors at capitalizing on critical success factors like franchising and avoiding undifferentiated offerings. Internally, Marriott's distribution systems, environmentally-conscious practices, and diverse brand portfolio allow it to support a differentiation strategy, while addressing a challenge of slowing sales growth. The analysis concludes Marriott's current strategy best addresses its strengths and opportunities, and should be maintained.
THE IMPACT OF EFFECTIVE CUSTOMER RELATIONSHIP MANAGEMENT ON REPURCHASEAyanda Demilade
The document discusses a case study on the impact of effective customer relationship management (CRM) on customer repurchase and loyalty at Transcorp Hilton Hotel in Calabar, Nigeria. A survey found that 46% of respondents were female and most heard about the hotel from advertisements or referrals. 80% were willing to refer the hotel and 90% were satisfied with services. Both individual and corporate clients expressed loyalty through continued patronage. The study concluded that effective CRM leads to increased customer satisfaction, referrals, and long-term financial benefits for hotels through improved customer retention and repurchase.
Thrust areas of knowledge management in hospitality industryIAEME Publication
This document discusses knowledge management in the hospitality industry. It argues that knowledge management is important for hotels to improve service quality and maintain a competitive advantage, especially considering factors like high employee turnover. It identifies different types of knowledge relevant to hotels, including task-specific knowledge, task-related knowledge, transactive memory, and guest-related knowledge. The document also discusses knowledge management strategies for hotels, including whether to focus on shared or distributed knowledge, and personalization or codification of knowledge transfer. It concludes that hotels should focus on both shared and distributed knowledge and aim to improve their ability to integrate customer knowledge.
A Market-Driven Approach To Business Development And Service Improvement In T...Jennifer Daniel
This article reviews hospitality research relating to business development and service improvement. It discusses five themes: 1) market sensitivity and competitiveness, including yield management and positioning, 2) segmentation, branding, and service customization, 3) service quality and customer retention, 4) product design, and 5) internal marketing. For each theme, it summarizes relevant research studies and their findings to provide ideas for business improvement in the hospitality industry.
The document summarizes a research study on the impact of price satisfaction and service satisfaction on customer loyalty in the hotel industry. It identifies five key dimensions of service quality - reception, staff friendliness, room service, restaurant/breakfast, and wellness area. It hypothesizes that these dimensions positively impact price satisfaction and service satisfaction. It also hypothesizes that price satisfaction and service satisfaction positively impact customer loyalty. A survey was conducted to measure customer responses on these variables and relationships using a 5-point Likert scale questionnaire. Factor analysis was used to analyze the data and validate the hypothesized relationships between the dimensions.
Managing market competitive strategy successfully an empirical testing of suIAEME Publication
This document summarizes a study that examines the impact of differentiation strategies of Malaysian manufacturing companies on customer satisfaction. It discusses measurements of differentiation strategies, including product, personnel, and price differentiation. It also discusses measurements of customer satisfaction, including product quality, features, design, and delivery. The document reports on reliability testing of the differentiation and customer satisfaction measurements, which showed satisfactory levels of reliability based on Cronbach's alpha coefficients.
The document discusses strategies for quality service in tourism and hospitality. It begins by outlining the chapter objectives, which are to understand business strategy, realize the importance of designing guest experiences, and identify key factors to ensure best service. It then discusses various strategic planning concepts, including Porter's generic strategies of cost leadership, differentiation, and focus strategies. It emphasizes the importance of strategic planning in service industries like tourism and hospitality. The document also covers analyzing internal strengths and external opportunities/threats, and how different stakeholders like competitors, suppliers, and the labor market can impact strategic planning.
Relationship marketing practices and customer loyaltyAlexander Decker
This document summarizes a study that explored the relationship between relationship marketing practices and customer loyalty in Ghana's banking industry. The study found that six relationship marketing constructs (trust, competence, conflict handling, commitment, communication, and social and financial bonds) cumulatively had a significant positive effect on customer loyalty. Individually, competence, commitment, and communication were found to be the most significant drivers of customer loyalty. The study recommends that banks focus on relationship marketing strategies to improve customer loyalty and retention.
In this case, Net profit margin is positive. Company made more money then it...Aqif Chaudary
The document discusses marketing principles and their influence on business activities. It explains that marketing principles focus on key functions like market research and segmentation to help businesses compete effectively. Several elements of the marketing process are described, including understanding customer needs, analyzing competitors, and designing marketing strategies. The benefits and costs of marketing orientation for businesses are evaluated. Environmental factors like economic conditions, technology, and customer demographics that influence marketing decisions are also outlined. Different approaches to marketing products and services to businesses and internationally are discussed.
Definition: Planning is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process which lays down an organisation’s objectives and develops various courses of action, by which the organisation can achieve those objectives. It chalks out exactly, how to attain a specific goal. Planning is nothing but thinking before the action takes place. It helps us to take a peep into the future and decide in advance the way to deal with the situations, which we are going to encounter in future. It involves logical thinking and rational decision making. Managerial function: Planning is a first and foremost managerial function provides the base for other functions of the management, i.e. organising, staffing, directing and controlling, as they are performed within the periphery of the plans made.
Goal oriented: It focuses on defining the goals of the organisation, identifying alternative courses of action and deciding the appropriate action plan, which is to be undertaken for reaching the goals.
Pervasive: It is pervasive in the sense that it is present in all the segments and is required at all the levels of the organisation. Although the scope of planning varies at different levels and departments.
Continuous Process: Plans are made for a specific term, say for a month, quarter, year and so on. Once that period is over, new plans are drawn, considering the organisation’s present and future requirements and conditions. Therefore, it is an ongoing process, as the plans are framed, executed and followed by another plan.
Intellectual Process: It is a mental exercise at it involves the application of mind, to think, forecast, imagine intelligently and innovate etc.
Futuristic: In the process of planning we take a sneak peek of the future. It encompasses looking into the future, to analyse and predict it so that the organisation can face future challenges effectively.
Decision making: Decisions are made regarding the choice of alternative courses of action that can be undertaken to reach the goal. The alternative chosen should be best among all, with the least number of the negative and highest number of positive outcomes.
Planning is concerned with setting objectives, targets, and formulating plan to accomplish them. The activity helps managers analyse the present condition to identify the ways of attaining the desired position in future. It is both, the need of the organisation and the responsibility of managers.
Importance of Planning
It helps managers to improve future performance, by establishing objectives and selecting a course of action, for the benefit of the organisation.
It minimises risk and uncertainty, by looking ahead into the future.
It facilitates the coordination of activities. Thus, reduces overlapping among activities and eliminates unproductive work.
It states in advance, what should be done in future, so ith
This document provides a summary of a case study on Marriott International. It discusses Marriott's vision, stakeholders, competitive environment using Porter's five forces, and a SWOT analysis. It then outlines Marriott's business-level strategy of differentiation through its diverse brand portfolio and rewards program. At the corporate level, Marriott uses a diversification strategy partnering with airlines and linking rewards programs. The document proposes strategies for Marriott to capitalize on strengths and opportunities, including improving service based on customer feedback and expanding internationally. It also suggests ways to address weaknesses and threats, such as increasing property ownership and security.
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International Journal of Hospitality Management 31 (2012) 379– 386
Contents lists available at ScienceDirect
International Journal of Hospitality Management
j o u r n a l h o m e p a g e : w w w . e l s e v i e r . c o m / l o c a t e / i j h o s m a n
xamining the determinants of hotel chain expansion
hrough international franchising
lan Alon a, Liqiang Ni b, Youcheng Wang c,∗
Rollins College, 1000 Holt Ave – 2722, Winter Park, FL 32789, United States
Department of Statistics, University of Central Florida, Orlando, FL 32816-2370, United States
Rosen College of Hospitality Management, University of Central Florida, 9907 Universal Blvd, Orlando, FL 32819, United States
r t i c l e i n f o
eywords:
ranchising
nternationalization
otel industry
ospitality
a b s t r a c t
This study proposes and tests an agency-based organizational model of internationalization through
franchising in the hotel sector. Using data obtained from a Franchisor Questionnaire 2001–2008, we
analyzed a panel of 117 observations of 17 U.S.-based hotels. Our analysis reveals that a hotel franchisor’s
decision to internationalize through franchising is positively related to the percentage of franchises, the
ayesian data analysis
ratio of franchised units to the total number of units. The article contributes to the literature by empirically
modeling international franchising of hotels, which present unique characteristics among franchising
companies, with a high investment capital requirement, maturity in the product life cycle, and a high
level of standardization and globalization of operations. The unique characteristics of individual chains
and their segment in the industry are particularly important, as revealed by both data analysis and expert
opinion.
. Introduction
In the U.S. economy the service sector has undergone tremen-
ous growth in the past several decades, with the hospitality
ndustry one of the major contributors to this fast-paced growth
Ketchen et al., 2006). Unlike most other service sectors, the hotel
ndustry is generally capital-intensive and its logistics and sup-
ly chain can be as complex as those in manufacturing operations
Chen and Dimou, 2005). For hotel companies, this can be a big
bstacle to an equity-based expansion model in various markets,
articularly in the international market. Thus, it raises the issue of
he importance of the internationalization process through fran-
hising as a non-equity-based expansion strategy.
Franchising provides scope for rapid international expansion
or hotel companies and has the potential to overcome many of
he cultural, linguistic, technical, legal, and employment problems
ommonly associated with internationalization (Abell, 1990). Hotel
hains prefer to use non-equity forms of org.
The Golden Triangle of Value Creation - Paul LimPaul Lim
iForce Consulting developed a framework called the "Golden Triangle of Value Generation" which identifies three universal areas of corporate value generation: 1) Customer Management, 2) Cost Management, and 3) Cashflow Management. The paper argues that successful companies must link their market strategies to their cost base and cashflow in order to ensure long-term growth and competitive advantage. It provides examples of how different companies can manage strategies related to customers, costs, and cashflow depending on whether their business involves products or services and whether cashflow is stable or unstable. The framework is intended to help companies identify key performance indicators and initiatives to focus on the primary drivers of value.
Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...inventionjournals
This study tried to determine and analyze the performance of marketing through customer relationship marketing (CRM), market orientation, and the image of Islamic Banks in Kediri, East Java, Indonesia. The population in this study some 65 873 customers who have savings in five Islamic Banks. Testing of the model is done with Generalized Least Square Estimation (GLS), analysis of structural equation modeling (SEM), proportional random sampling method and software assistance Amos 22, on 397 respondents. The test results model (fit) seen from the GFI, AGFI, TLI, CFI, RMSEA and CMIN / DF, each of which amounted to 0.915, 0.901, 0.949, 0.953, 0.063 and 1.497 are all that are in the range of expected values so that the model can be accepted.The results showed that: customer relationship marketing (CRM), market orientation, and image effect on the competitive advantage of Islamic Banks in Kediri. CRM, and market orientation affect the marketing of Islamic Banks Performance in Kediri. The company's image does not affect the marketing of Islamic Banks Performance in Kediri.It is suggested that the bank to constantly improve its image. This can be done by giving the concern for the surrounding community as the company's involvement with social activities. Thus the social programs that the company will be able to form a personality, raise the reputation of companies before the general public.
Marketing Performance Analysis by Customer Relationship Marketing, Market Ori...
Sabvi122chap1
1. 1
Southern African Business Review Volume 12 Number 2 2008
Competitive marketing strategies of selected
hotels: an exploratory study
D.J. Petzer, T.F.J. Steyn &
P.G. Mostert
ABSTRACT
Organisations continually seek new ways to acquire, retain and increase business, since the cost of losing customers is rising. Service organisations such as hotels need to put in place competitive marketing strategies to improve their competitiveness and thus retain customers. Once demand is created, a hotel needs to manage this demand as well as its capacity to deliver.
This study investigates the importance that hotels attach to executing competitive marketing strategies, as well as managing supply and demand. The study also determines whether or not hotels of different size and ownership type differ in their view of the importance of carrying out these functions.
An interviewer-administered in-office survey was used to collect data from hotel managers in Gauteng.
Hotel managers across the board consider all competitive marketing strategies as important. Significant correlations exist, however, between the importance attached to certain competitive marketing strategies and the size of hotel – as well as the hotel ownership type.
Key words: competitive marketing strategy, hotel, services marketing, competitive advantage, sustainable competitive advantage, positioning, service life cycle, supply, demand, capacity
Prof. Petzer and Prof. Mostert are Associate Professors in the School of Business Management at the North-West University, Potchefstroom. Prof. Steyn is Associate Professor in the Department of Management, School of Business at Cameron University, Lawton, Oklahoma, USA. E-mail: daniel.petzer@buseco.monash.edu.
2. D.J. Petzer, T.F.J. Steyn & P.G. Mostert
2
Introduction
In most developed countries, about 80% of the workforce is employed in the service sector. Service sector industries include education, retailing, tourism and hospitality, medical and hospital services, as well as communications and construction services (McColl, Callaghan & Palmer 1998: 43). By the early 2000s, it was estimated that services already accounted for 72% of the gross domestic product (GDP) of developed economies, and 52% of the GDP of developing economies (Hill 2007: 245). The hospitality industry was expected to grow by 6.2% and the tourism industry by 4.1% in 2007 (Economist Intelligence Unit 2005: 107–110). The hospitality industry has grown phenomenally since 2001 and has been driven by both leisure and business demand (Kloppers 2005: 28). Tourism in South Africa contributes about 5% to the GDP (Dikeni 2001: 519) and can thus help to raise the national income, the level of employment, the balance of payments and foreign exchange rates. Hotels differ in style and size, some having up to 800 bedrooms. There are full-service establishments and medium-sized business-class hotels, while others do business in the budget sector. Finally, there are the small country inns (McManus 2000: 131). Hotels accounted for 37% of total accommodation sales in South Africa in 2004 (Euromonitor International 2005).
Organisations continually seek new ways to acquire, retain and increase business, because the cost of losing customers is rising. Service is an important factor in retaining clients. The role of service is more important than ever, and is expected to become even more critical with time (Choi & Chu 2001: 289). Hotels that have the ability to attract, satisfy and thus retain customers are more likely to survive than hotels that do not do so.
Successful customer retention allows the hotel to build relationships with its customers (Reichheld & Sasser 1990: 105–108; Hoffman, Kelley & Chung 2003: 334).
Kurtz and Clow (1998: 380–381 & 403) are of the opinion that, irrespective of the efforts of service organisations to introduce competitive strategies to attract customers and efficiently manage the supply of services they offer, customers do not always purchase from the same organisation – nor do they always remain loyal.
The objective of this study is to establish the views of hotel management about the importance of competitive strategies and managing supply and demand. Differences in these views between the management of differently owned hotels, and of different sizes of hotel, will be determined.
3. Competitive marketing strategies of selected hotels: an exploratory study
3
Theoretical background
The theoretical background to this study focuses on the competitive marketing strategies that hotels could utilise in order to attract customers. It also looks at the strategies that hotels could implement to manage the supply of, and demand for, services.
Competitive marketing strategies
It is said that organisations in the tourism industry have been slow in adopting the principles of marketing, even though these would enable them to improve their performance and customer retention (Appiah-Adu, Fyal & Singh 2000: 96 & 109). For a service organisation such as a hotel to acquire customers, it is important that marketing strategies be deployed to improve its own ability to compete with other hotels, gain a competitive advantage and thus retain a greater number of customers (Anderson & Vincze 2000: 76; Chaharbaghi & Lynch 1999: 49; Hill & Jones 2002: 123; Hitt, Ireland & Hoskisson 2001: 5; Kurtz & Clow 1998: 308; Ma 1999: 259 & 261; Passemard & Kleiner 2000: 12).
Competitive advantage and sustainable competitive advantage
Competitive advantage can be viewed as the value an organisation is able to create to differentiate itself from its competitors (Dubé & Renaghan 1999: 28–33). The value that is created by an organisation is measured by the price customers are willing to pay for its particular service (Passemard & Kleiner 2000: 112). If customers perceive the service as producing the required benefits, they will purchase that service, and, more importantly, will continue to do so over time (Wood 2004: 59).
Hitt et al. (2001: 5) view competitive advantage, and sustainable competitive advantage, as more or less synonymous. The authors define it as ‘something’ that occurs when an organisation puts a value-creating strategy in place. This should be a strategy whose benefits cannot be copied, or which would simply be too expensive to copy.
Anderson and Vincze (2000: 76) define sustainable competitive advantage as the ability to be successful over time. Success is based on the organisation’s ability to rely on the skills and assets it owns. According to Chaharbaghi and Lynch (1999: 49), sustainable competitive advantage meets current competitive needs without harming the ability of the organisation to meet its future needs. Sustainable competitive advantage has three different ‘orientations’. The first is a conservation-orientation, which is rooted in the idea that no organisation has unlimited resources. The
4. D.J. Petzer, T.F.J. Steyn & P.G. Mostert
4
second orientation is needs-based since the economic activity of the organisation is concerned with the needs of its customers. Finally, it is future-oriented, or focused on the long-term enhancement of resources to gain advantage.
Aaker (2001: 134) considers that four factors are needed to create a sustainable competitive advantage: firstly, the product strategy, the positioning strategy and the production strategy with which the organisation competes; secondly, the assets and capabilities of the organisation that form the basis for competition; thirdly, the markets where the organisation competes; and, lastly, the competition with which the organisation has to contend.
Kim and Oh (2004: 66) are of the opinion that the competitive advantage of an organisation is the result of the resources that the organisation has developed internally. As with all organisations, hotels differ in terms of the resources that they possess or have access to. The competitive advantage that a hotel possesses depends, thus, on how the hotel develops and employs its resources. A chain of hotels might, for example, gain competitive advantage through a flawless reservations system developed for the chain. Given the current business landscape, it is necessary for organisations to keep ahead of competitors by utilising strategies of differentiation. Differentiation is accomplished through gaining – and sustaining – competitive advantage (Colgate 1998: 80). Branding seems to be the only sustainable differentiating strategy that hotels might use. A sustainable differentiating strategy requires the hotel to bond emotionally with customers and focus on building long- term relationships with them. Hotels might accomplish sustainable differentiation by continually providing consistent brand messages (Cai & Hobson 2004: 206– 207).
McDonald (2002: 460) states that even though an organisation is able to gain a competitive advantage, it is easy for a competitor to match that organisation and draw alongside it. Mazzarol and Soutar (1999: 290 & 292) propose that the organisation can sustain its competitive advantage only if barriers to imitation are put in place. These barriers prohibit competitors from copying the organisation. If competitors are unable to copy an organisation, its competitive advantage may well become sustainable in the long run.
Positioning
Positioning is an important strategy that an organisation might utilise to create, and sustain, competitive advantage (Anderson & Vincze 2000: 209; Belch & Belch 2004: 51; Cravens, Lamb & Crittenden 2002: 8; Lovelock 2001: 200; Palmer 2001: 177). Once a service organisation has identified its target market, the next step is to clearly position its service offering. The organisation should first of all identify the basis on
5. Competitive marketing strategies of selected hotels: an exploratory study
5
which it wants to compete, and then position its services in a clear and unique way (Meek, Meek & Ensor 2001: 169).
It is important to establish the different positioning criteria along which service offerings can be positioned. These criteria include (Aaker & Shansby 1982, cited in Belch & Belch 2004: 52–54; Trout 1995, cited in Kotler, Brown, Adam & Armstrong 2004: 365; Clow & Baack 2001: 130; Wind 1982, cited in Palmer 2001: 179–180):
Specific product or service attributes• . A hotel promotes to business travellers the fact, for example, that it is located in the heart of a financial centre.
Benefits or needs• . A hotel decides to focus on specific services offered to the business segment. These services might include, for example, Internet access and document delivery.
Usage occasions• . A hotel positions itself to conference organisers as ideally suited for hosting conferences.
User categories• . A hotel positions itself as meeting the needs of business customers rather than individual customers.
Positioning by competitor• . A hotel positions itself as having better facilities than those of all other hotels in a particular area.
Positioning by product class• . A hotel positions itself as a ‘conference’ hotel rather than as a ‘leisure’ hotel.
Positioning by price and quality• . A hotel might position its brand at the high end of the market as a premium hotel, or at a more competitive price at the lower end of the market.
Positioning by cultural or national symbols• . A hotel could tie itself to a cultural symbol, for example, Sun International’s Table Bay Hotel in Cape Town associates itself with Table Mountain and Table Bay, which are South African landmarks.
To sustain competitive advantage and suitably position an offering for the duration of its existence, it is crucial for the organisation to identify the phase of the service life cycle in which the offering finds itself. The placement of the offering in the service life cycle will determine the marketing strategies that are appropriate to addressing the challenges of the phase in question.
Service life cycle
The hotel needs to proactively manage the service mix it is offering, by applying a suitable selection of strategies. For example, a hotel finding its service offering in the growth phase of its service life cycle will focus on getting customers to prefer its brand to the brands of competitors.
6. D.J. Petzer, T.F.J. Steyn & P.G. Mostert
6
A hotel that is able to compete successfully in its industry through (1) the creation of a sustainable competitive advantage for its service offering, and (2) positioning its service offering successfully in relation to its competitors throughout the life cycle of that offering, will eventually retain customers. Such a hotel should ensure that it has the necessary systems and strategies in place to manage the demand for its offering. In addition to managing demand, the hotel needs to manage its capacity, or ability to supply the demand made by its customers.
Managing supply and demand
Klassen and Rohleder (2002: 527) view demand management as “an attempt to shift demand”, while capacity or supply management is seen as “a response to demand”. Since services are perishable, managing demand and capacity (or supply) is critical in the hospitality industry (Kotler, Bowen & Maken 2003: 59).
Demand and supply do not always match. The supply of services by a hotel may exceed the demand from customers in quiet times; demand from customers may exceed the ability of the hotel to supply the required services during peak times. When supply exceeds demand, a hotel is left with unused resources: rooms, restaurant seating and conference facilities, among other things. When demand exceeds supply – and there are no rooms or restaurant seating available – the hotel may have no other option than to turn potential customers away (Kurtz & Clow 1998: 345).
In a properly designed and managed service organisation, the capacity of the facility, the supporting equipment and the service personnel should all be in balance with one another – and with demand for the services offered. Operations should be designed in such a way as to limit the chances that a bottleneck might occur in the system. This is not always attainable: demand levels fluctuate unpredictably in the hotel industry. It is also difficult to minimise bottlenecks, since the time and effort it takes to personally serve individual customers varies greatly (Adenso-Díaz, Conzález-Torre & García 2002: 286; Klassen & Rohleder 2002: 527; Lovelock 2001: 401).
Management of customer demand
The fact that a service organisation such as a hotel cannot store its services is not problematic – but only when demand is steady and foreseeable. In reality, service organisations such as hotels experience demand that varies significantly. This variation can take a number of forms (Kandampully 2000: 12; Palmer 2001: 389):
7. Competitive marketing strategies of selected hotels: an exploratory study
7
Daily variation• . The demand levels vary according to time of day: a hotel restaurant is busier during meal times than during the rest of the day.
Weekly variation• . A hotel located in a scenic area away from a city is busier over weekends than during the week.
Seasonal variation• . A resort hotel’s occupancy is higher during holidays than during out-of-season periods.
Cyclical variation• . The demand for hotel accommodation varies according to the economic conditions in the country or region where the hotel is located.
Unpredictable variation• . Demand for hotel accommodation can decrease sharply when a terrorist attack or natural disaster occurs in proximity to the hotel.
In a situation of under-demand, or oversupply, the organisation could seek greater diffusion into the market by proactively contacting customers – or it could reposition service offerings. It might offer different and alternative services, including complimentary and convenience services (such as meals included in room rates, or valet parking). It could increase advertising, or offer discounts or lower prices, or follow segments whose demands change according to season. It could also initiate marketing programmes targeted at particular segments, or use idle employees as ‘walking advertisements’, or market services under exchange agreements (Palmer 2001: 391; Shemwell & Cronin 1994: 16; Sill 1991: 81).
Management of service capacity
Armistead and Clark (1994: 6–7) state that capacity management aims to bring potential output (based on available resources) in line with actual output. Lovelock (2001: 395–396) proposes several strategies to manage capacity. These involve stretching and shrinking capacity, chasing demand, as well as bringing about flexible capacity (Lovelock 2001: 395–395). In some instances, capacity may be elastic. This means, for example, that opportunities may exist to accept extra business when the organisation is already busy. A hotel could stretch capacity by accommodating more than its capacity during peak demand periods. This could be done by turning a room suited for double occupancy into a room to accommodate a family.
The second strategy – chasing demand – involves altering capacity to suit changes in demand. The service organisation may schedule for downtime during periods of low demand, use temporary staff instead of permanent staff, or lease or share facilities or equipment that are not being used. Alternatively, employees could be multi-skilled to perform a wider variety of tasks (Lovelock 2001: 395–396). A hotel may also decide to use the extra time to train its employees, or allow employees to practise the skills that they have acquired. The hotel could also spend the extra time
8. D.J. Petzer, T.F.J. Steyn & P.G. Mostert
8
implementing new work schedules, retrenching staff, conducting subcontracting work for other suppliers, or offering free services to charities and other such organisations (Kurtz & Clow 1998: 354; Shemwell & Cronin 1994: 16; Palmer 2001: 393).
During periods of high demand, a hotel’s restaurant may, for example, offer early dinners and late suppers so as to accommodate all guests in the dining room, though at different times, during the evening. A hotel may decide to hire temporary staff and equipment, add temporary facilities, or use equipment and staff only where most urgently needed. It might also increase the number of staff, let staff work longer hours (overtime), or multi-skill staff to enable them to perform a wider variety of tasks. It could also turn away new customers and focus only on frequent guests, or, finally, outsource work to other organisations (Kurtz & Clow 1998: 349–355; Lovelock 2001: 395–396; Palmer 2001: 392–393; Shemwell & Cronin 1994: 16).
The last option available is to design capacity to be flexible (Lovelock 2001: 395– 396). A hotel might build rooms with connecting doors. The hotel could, in such a scenario, configure the rooms as two separate bedrooms, or as one bedroom with a separate lounge – depending on demand. Sill (1991: 78) is of the opinion that the objective of a flexible capacity strategy is to promptly respond to demand at different levels. The key to a flexible capacity strategy is the ability to service high levels of demand, yet still keep overhead costs down. This is achieved by avoiding excessive capacity (Sill 1991: 78).
Problem statement, objectives and research
h
ypotheses
In the extant literature on the subject, no study could be found examining the correlation of the size of hotel (small, medium or large) or the ownership type of the hotel (group or branded, or private/owner-managed) to managerial attitudes towards competitive marketing strategies and managing supply and demand. The main objective of the study is, therefore, to establish how hotels in Gauteng view and execute competitive marketing strategies and manage the supply and demand of guests.
The following null hypotheses arise out of the literature discussion:
Ho1: Hotel size is not significant in managerial perceptions of the importance of competitive marketing strategies that competitors find difficult to imitate.
For further refinement, the first hypothesis can be subdivided into the following:
Ho1a: Hotel size is not significant in managerial perceptions of the importance of creating value for guests that competitors find difficult to imitate.
9. Competitive marketing strategies of selected hotels: an exploratory study
9
Ho1b: Hotel size is not significant in managerial perceptions of the importance of sustaining value for guests that competitors find difficult to imitate.
Ho1c: Hotel size is not significant in managerial perceptions of the importance of creating a unique positioning for the hotel.
Ho1d: Hotel size is not significant in managerial perceptions of the importance of changing the existing positioning strategy of the hotel to improve its appeal to guests.
Ho1e: Hotel size is not significant in managerial perceptions of the importance of managing the hotel’s offerings, as demand for these changes from time to time.
Ho2: Ownership type of the hotel is not significant in managerial perceptions of the importance of competitive marketing strategies for guests that competitors find difficult to imitate.
For further refinement, the second hypothesis can be subdivided into the following:
Ho2a: Ownership type of the hotel is not significant in managerial perceptions of the importance of creating value for guests that competitors find difficult to imitate.
Ho2b: Ownership type of the hotel is not significant in managerial perceptions of the importance of sustaining value for guests that competitors find difficult to imitate.
Ho2c: Ownership type of the hotel is not significant in managerial perceptions of the importance of creating a unique positioning for the hotel.
Ho2d: Ownership type of the hotel is not significant in managerial perceptions of the importance of changing the existing positioning strategy of the hotel to improve its appeal to guests.
Ho2e: Ownership type of the hotel is not significant in managerial perceptions of the importance of managing the hotel’s offerings, as demand for these changes from time to time.
Ho3: The size of the hotel is not associated with managerial perceptions of the importance of managing guests’ demand for products and services in an attempt to change demand.
Ho4: The ownership type of the hotel is not associated with managerial perceptions of the importance of managing guests’ demand for products and services in an attempt to change demand.
Ho5: The size of the hotel is not associated with managerial perceptions of the importance of managing the ability of the hotel to supply products and services in response to guest demand.
10. D.J. Petzer, T.F.J. Steyn & P.G. Mostert
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Ho6: The ownership type of the hotel is not associated with managerial perceptions of the importance of managing the ability of the hotel to supply products and services in response to guest demand.
Ho7: The size of the hotel is not associated with managerial perceptions of its importance in maximising revenue through manipulating room rates in response to expected demand.
Ho8: The ownership type of the hotel is not associated with managerial perceptions of the importance of maximising revenue through manipulating room rates in response to expected demand.
Research methodology
An interviewer-administered, in-office survey was used to collect data from hotel managers in Gauteng. A questionnaire was designed based on ideas gleaned in the literature study. It contained structured and unstructured questions, and was pre-tested among hotel managers (general and marketing managers) before it was fielded.
The questionnaire consists of several sections. The first section introduces the questionnaire and poses a number of screening questions. The next section determines the composition of the hotel’s guests. The third section measures the importance of competitive marketing strategies being utilised and the management of supply and demand at the hotel. The last section of the questionnaire deals with demographic and general questions.
A multiple-item, unlabelled five-point scale was used to measure management perceptions. Multiple-item scales involve gauging a number of statements linked to a specific object (Aaker, Kumar & Day 2004: 293). An unlabelled scaled response format was used for the multiple-item scale, and only the endpoints of the scale were identified (Burns & Bush 2000: 306). A score of 3 is the middle-value of the scale. A score of higher than 3 leans towards ‘very important’, while a score of less than 3 towards being ‘not important at all’. A mean score of more than 3.00 for an activity or strategy is regarded as indicative that respondents consider it to be important.
A representative sample of 125 hotels was drawn from the population under study (the target population contains 182 hotels). A probability sampling technique – stratified sampling – was used to draw a sample from the population. The population was separated into different strata according to the ownership type and size of the hotel. Ownership of hotels is either ‘group or branded’, or ‘private or owner-managed’. Hotels with 50 or fewer rooms were classified as ‘small’, hotels with 51 to 150 rooms were classified as ‘medium’, and hotels with 151 or more rooms were classified as ‘large’. A sample was then selected from the different strata
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using systematic sampling. Drop-down substitution was used to compensate for non-response error. According to Burns and Bush (2000: 411), this method can be used when a researcher employs systematic sampling. In this study, drop-down substitution entailed contacting the next hotel manager on the list immediately following the name of the hotel manager who had refused to respond. It goes without saying that the substitution could not be up for interviewing on the original sampling list.
In order to determine whether a significant association existed between the mean responses of the two groups (group or branded, as opposed to private/owner- managed hotels), Fisher’s Exact Test was used. A Phi coefficient was computed in order to signify the strength of the associations between the variables. In order to determine whether a significant association existed between the mean responses of more than two groups, the Pearson Chi Square Test was conducted. Cramer’s V coefficient was computed to signify the strength of the association between the variables (SPPS 2003: 309–310, 377–381 & 465).
Results
Sample profile
The population of the hotels in Gauteng was 182, and a sample of 125 hotels was selected. Fifty-five of these hotels (44% of the sample) made up the final, realised sample. Large hotels constituted 18%, medium hotels 51% and small hotels 31% of the sample. Group or branded hotels numbered 39 (71% of the sample), and there were 16 private or owner-managed hotels (29%). Seventy per cent of the respondents were general managers, while the rest were assistant general managers, marketing managers, operations managers and personal assistants. Respondents had been in their current position for periods of between ten weeks and 15 years, with a mean of 4.04 years. Participants also indicated that their hotels had been in existence from anywhere between two and 60 years, with a mean of 12.83 years.
Reliability
Cronbach’s alpha was used to determine the reliability of the measurement set. The measure ranges from 0 to 1. A value of 1 indicates perfect reliability, and the value 0.70 is considered to be the lower level of acceptability (Hair, Anderson, Tatham & Black 1998: 118). The Cronbach’s alpha for the measurement sets is 0.794. This indicates that the measurement set used in the study is reliable.
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Competitive marketing strategies
Hypothesis 1: Hotel size and competitive marketing strategies
Respondents had to provide feedback on the importance attributed to a number of marketing strategies in their hotels’ efforts to be competitive. They had to rate these strategies and activities on a scale from 1 to 5, where 1 was ‘not important at all’ and 5 was ‘very important’. As already stated, a mean score of more than 3.00 for an activity or strategy is regarded as indicative that respondents consider it to be important.
Table 1 provides the overall results for the sample and contains the mean and standard deviation for each competitive marketing strategy, as well as the statistical measures to determine the significance of these data.
Table 1: The importance of competitive marketing strategies for different sizes and types of hotel (N = 55)
Strategy
Mean
Std
dev.
Fischer’s Exact Test
(p-value)
(type of hotel)
Phi
coefficient
(type of hotel)
Pearson Chi Square
(p-value)
(size of hotel)
Cramer’s V coefficient
(size of hotel)
Create value for guests that competitors find difficult to imitate
4.48
0.874
0.542
0.097
0.515
0.154
Sustain value for guests that competitors find difficult to imitate
4.46
0.785
1.000
0.000
0.844
0.078
Create a unique positioning strategy for the hotel
4.32
0.789
0.768
0.079
0.681
0.117
Change the existing positioning strategy of the hotel to improve its appeal to guests
3.64
1.151
0.047*
0.300
0.330
0.199
Manage the hotel’s offerings, as demand for these changes over time
4.25
0.837
0.149
0.204
0.049*
0.329
* Significant association
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From Table 1, it can be seen that the competitive marketing strategy ‘Create value for guests that competitors find difficult to imitate’ was deemed to be the most important marketing strategy in the hotels’ efforts to be competitive. This was closely followed by ‘Sustain value for guests that competitors find difficult to imitate’. ‘Change the existing positioning strategy of the hotel to improve its appeal to guests’ obtained the lowest mean score of 3.64 (although this was still an important consideration to managers). It is noteworthy that the mean scores for all activities are above 3.00. The main finding is that hotel managers considered all competitive marketing strategies important in their hotels’ efforts to be competitive.
The size of the hotels (small, medium, large) was cross-tabulated with the mean importance assigned to each competitive marketing strategy, and significance testing was performed using the Pearson Chi Square Test. Cramer’s V coefficient was also computed to signify the strength of the association between the variables – a value of between 0.00 and 1.00 is given (Diamantopoulos & Schlegelmilch 1997: 199–201; Tustin, Ligthelm, Martins & Van Wyk 2005: 635; SPSS 2003: 309–310). The results are presented in Table 1.
For the first four competitive marketing strategies (hypotheses 1a to 1d), the Pearson Chi Square Test for significant association indicates p-values of 0.515, 0.844, 0.681 and 0.330. This indicates support for the null hypothesis that size is not associated with the perceived importance of: creating value for guests that competitors find difficult to imitate; sustaining value for guests that competitors find difficult to imitate; creating a unique positioning strategy; and changing the existing positioning strategy of the hotel to improve its appeal to guests. Cramer’s V coefficient indicates a minor association between these strategies and the size of the hotel. The null hypotheses can therefore not be rejected. The main finding here is that there is no significant association between the perceived importance of competitive marketing strategies, and the size of the hotel (hypotheses 1a to 1d).
For the null hypothesis 1e, the Pearson Chi Square Test for significant association indicates a p-value of 0.049 (see Table 1). This indicates no support for the null hypothesis that size is not associated with the perceived importance of managing the hotel’s offerings, as demand for these changes from time to time. The null hypothesis can therefore be rejected. The size of a hotel (small, medium, large) is thus significantly associated with the importance that the hotel gives to managing its offerings, as demand for these changes from time to time. The larger a hotel, the more important this competitive marketing strategy is perceived to be. A Cramer’s V coefficient of 0.329 indicates that a medium-strength association exists between the two factors in question. The main finding here is that there is a significant association (of medium strength) between the perceived importance of managing
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the hotel’s offerings, as demand for these changes from time to time, and the size of the hotel (hypothesis 1e).
Hypothesis 2: Hotel ownership type and competitive marketing
strategies
In order to determine whether or not there is a relationship between hotel type and the perceived importance of competitive marketing strategies, a test of association was conducted. Fisher’s Exact Test was used to determine whether a significant association exists between the variables in the cross-tabulations presented in
Table 1. A Phi coefficient was also computed to signify the strength of the association between the variables (Diamantopoulos & Schlegelmilch 1997: 178 & 199–201; SPPS 2003: 309–310, 377–381 & 465). The results are presented in Table 1.
For the first three competitive marketing strategies (hypotheses 2a to 2c), Fisher’s Exact Test for significant association indicates p-values of 0.542, 1.000 and 0.079. This indicates support for the null hypothesis that hotel ownership type is not associated with: the perceived importance of creating value for guests that competitors find difficult to imitate; sustaining value for guests that competitors find difficult to imitate; and creating a unique positioning strategy. The Phi coefficients indicate a negligible association between the factors. The null hypotheses can therefore not be rejected. The main finding here is that there is no significant association between the perceived importance of these competitive marketing strategies, and the type of ownership of the hotel (hypotheses 2a to 2c).
For the fourth competitive marketing strategy, Fisher’s Exact Test for significant association indicates a p-value of 0.047 (see Table 1). This indicates no support for hypothesis 2d that hotel ownership type is not associated with changing the existing positioning strategy of the hotel to improve its appeal to guests. The null hypothesis can therefore be rejected. Hotel type (group or branded as opposed to private or owner- managed) is significantly associated with the perceived importance of changing the existing positioning strategies of the hotel to improve its appeal to guests. A Phi coefficient of 0.300 indicates a medium-strength association between the two factors under consideration. The main finding here is that there is a significant association (of medium strength) between the perceived importance of changing the existing positioning strategy of the hotel to improve its appeal to guests, and type of hotel ownership. The management of private or owner-managed hotels feel that this is very important, whilst those of group-owned hotels feel that it is not important (hypothesis 2d). For the fifth competitive marketing strategy, Fisher’s Exact Test for significant association indicates a p-value of 0.149. This indicates support for the null hypothesis that hotel type is not associated with the perceived importance of
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managing the hotel’s offerings, as demand for these changes from time to time. The null hypothesis can therefore not be rejected. The Phi coefficient of 0.204 indicates a small association between the two factors under consideration. The main finding here is that there is no significant association between the perceived importance of managing the hotel’s offerings, as demand for these changes from time to time, and type of hotel ownership (hypothesis 2e).
Managing supply and demand
Respondents were asked to indicate how important a number of activities were in their hotels’ efforts to manage supply and demand. Table 2 provides the overall results for the realised sample.
Table 2: The perceived importance of activities to manage supply and demand
Activity
Mean
Std
dev.
Fischer’s Exact Test
(p-value)
(type of hotel)
Phi
coefficient
(type of hotel)
Chi
Square Test (p-value)
(size of hotel)
Cramer’s V
coefficient
(size of hotel)
Manage guests’ demand for products and services in an attempt to change demand (for example, charging higher room rates in peak periods, offering special discount in periods of low demand and using a reservations system)
3.95
1.29
0.558
0.102
0.085
0.297
Manage the hotel’s ability to supply products and services in response to guest demand (for example, turning double rooms into family rooms and hiring extra staff during periods of high demand)
3.88
1.28
0.018*
0.331
0.599
0.135
Maximise revenue through manipulating room rates in response to expected demand (for example, adjusting prices according to levels of demand expected)
3.59
1.45
1.000
0.023
0.284
0.212
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‘Manage guests’ demand for products and services in an attempt to change demand’ obtained the highest mean score of 3.95 and ‘Maximise revenue through manipulating room rates in response to expected demand’ obtained the lowest mean score (3.59). All activities obtained a mean score greater than 3.00. The main finding here is that hotels regard supply and demand management activities as important in their efforts to manage supply and demand.
The size of hotel (small, medium, large) was cross-tabulated with the mean importance assigned to each activity associated with the management of supply and demand. The results indicate whether or not a significant association exists between these two variables.
Hypothesis 3: Hotel size and demand management
The null hypothesis Ho3 was tested using the Pearson Chi Square Test to indicate whether or not significant associations exist between size of hotel and managerial perceptions of the importance of managing guests’ demand for products and services in an attempt to change demand. The results are presented in Table 2.
A p-value of 0.085 was calculated. A Cramer’s V coefficient of 0.297 indicates a small association between the two variables in question (Tustin et al. 2005: 635; SPSS 2003: 309–310; Diamantopoulos & Schlegelmilch 1997: 199–201). This indicates support for the null hypothesis that hotel size is not associated with the perceived importance of managing guests’ demand for products and services in an attempt to change demand. The null hypothesis can therefore not be rejected. The size of a hotel is thus not significantly associated with the importance it gives to managing guests’ demand for products and services in an attempt to change demand (hypothesis 3).
The importance assigned to each activity associated with the management of supply and demand was cross-tabulated with the differently owned hotels – group or branded, as opposed to private or owner-managed. The results show where significant associations exist between the cross-tabulated variables.
Fisher’s Exact Test was used to determine whether or not significant associations exist between hotel ownership type and the importance respondents assign to activities associated with the management of supply and demand. A Phi coefficient was also computed to signify the strength of the association between the variables (Diamantopoulos & Schlegelmilch 1997: 199–201; SPSS 2003: 309–310). The results are reflected in Table 2.
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Hypothesis 4: Hotel ownership type and demand management
For the association between hotel ownership type and perceptions about the importance of managing guests’ demand for products and services in an attempt to change demand, Fisher’s Exact Test indicates a p-value of 0.558. This supports the null hypothesis that hotel ownership type is not associated with the perceived importance of managing guests’ demand for products and services in an attempt to change demand. A Phi coefficient of 0.102 indicates a small association between the two variables in question. The main finding here is that there is no significant association between the perceived importance of managing guests’ demand for products and services, in an attempt to change demand, and the ownership type of the hotel (hypothesis 4).
Hypothesis 5: Hotel size and supply management
In Table 2, the Pearson Chi Square Test for significant association between the size of hotel and the importance given to managing the hotel’s ability to supply products and services in response to guest demand (hypothesis 5) shows a p-value of 0.599. A Cramer’s V coefficient of 0.135 indicates a small association between the two factors under consideration. This indicates support for the null hypothesis. The main finding here is that there is no significant association between the importance given to managing the hotel’s ability to supply products and services in response to guest demand, and the size of the hotel (hypothesis 5).
Hypothesis 6: Hotel ownership type and supply management
For the association between hotel ownership type and perceptions about the importance of managing the hotel’s ability to supply products and services in response to guest demand, Fisher’s Exact Test indicates a p-value of 0.018 (see Table 2). The null hypothesis can therefore be rejected. A Phi coefficient of 0.331 indicates a medium association between the two variables in question. Management of private or owner-managed hotels tend to see such activity as very important, while those of group-owned hotels feel it is not important. The main finding here is that there is a significant association (of medium strength) between the importance the hotel gives to managing its ability to supply products and services in response to guest demand, and hotel ownership type (hypothesis 6).
Hypothesis 7: Hotel size and revenue maximisation
Hypothesis 7 used the Pearson Chi Square Test to determine whether or not there is a significant association between size of hotel and the importance given to maximising
18. D.J. Petzer, T.F.J. Steyn & P.G. Mostert
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revenue through manipulating room rates in response to expected demand (see Table 2). The p-value is 0.284. A Cramer’s V coefficient of 0.212 indicates a small association between the two factors under consideration. This provides support for the null hypothesis that hotel size is not associated with the importance it gives to maximising revenue through manipulating room rates in response to expected demand. The null hypothesis can therefore not be rejected. The size of the hotel is thus not significantly associated with the importance it gives to maximising revenue through manipulating room rates in response to expected demand (hypothesis 7).
Hypothesis 8: Hotel ownership type and revenue maximisation
For the association between hotel ownership type and the importance attributed to maximising revenue through manipulating room rates in response to expected demand, Fisher’s Exact Test indicates a p-value of 1.000. This indicates support for the null hypothesis that hotel ownership type is not associated with the importance it attributes to maximising revenue through manipulating room rates in response to expected demand. The null hypothesis can therefore not be rejected. A Phi coefficient of 0.023 indicates a negligible association between the two factors in question. The main finding here is that there is no significant association between the importance given to maximising revenue through manipulating room rates in response to expected demand and hotel ownership type (hypothesis 8).
Managerial implications and recommendations
It was found that, across the board, competitive marketing strategies are considered important in a hotel’s efforts to be competitive. The implication of this finding is that hotels in Gauteng should develop their positioning and reposition service offerings competitively, as well as manage their service offerings proactively throughout their life cycles.
Significant associations exist between the perceived importance of managing the hotel’s offerings, as demand for these changes from time to time, and size of hotel. This marketing strategy is perceived to be more important for larger hotels than for smaller hotels. The implication is that in order for a hotel in Gauteng to successfully manage demand and supply of its services, it needs to consider a number of strategies: it could manage the demand of guests for service offerings, or it could manage service capacity or supply, or, indeed, it could advantageously manage fixed capacity.
Another finding is that there is a significant association (of medium strength) between the perceived importance of changing existing positioning strategies of
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the hotel to improve its appeal to guests, and type of hotel ownership. Private or owner-managed hotels regard this as very important, while group-owned hotels do not. The realised sample consisted of 40 group or branded hotels and 16 private or owner-managed hotels, ten of which were also small hotels. It could be argued that private or owner-managed hotels are generally smaller and therefore more sensitive and flexible in changing their existing positioning strategies.
It was also found that there is a significant association (of medium strength) between the importance the hotel gives to managing its ability to supply products and services in response to guest demand, and hotel ownership type. Private or owner-managed hotels regard this as very important, while group-owned hotels do not consider it to be as important. Group or branded hotels should be made aware of this perception, and thus be in a position to consider rethinking their implementation of such an important strategy.
Limitations and future research
The study was confined to hotels in Gauteng, South Africa: its representativity for the whole of South Africa cannot be claimed, and any generalisations from the research to other geographic regions should be treated with caution. It is recommended that a further study be carried out using the same methodology but encompassing all the provinces in South Africa. It is further suggested that the grading of hotels be incorporated as a variable to establish whether there are differences between hotels of different sizes, and ownership type within the different gradings of hotels.
Concluding remarks
It is to be hoped that the findings of this study will add to the relatively limited research on services marketing in the hospitality industry, and specifically to research in the hotel sector that focuses on the different sizes of hotel as well as on their ownership type.
Sixteen null hypotheses were formulated, and the findings show that 13 of these were supported, indicating no significant association between variables and the size of hotel or its ownership type.
The noteworthy findings are that larger hotels perceive it as more important than smaller and medium-sized hotels that the hotel’s offerings be managed, as demand for these changes from time to time. Moreover, private or owner-managed hotels view the idea of changing their existing positioning strategy to improve their appeal to guests as more important than do group-owned hotels. Thus, private or owner-managed hotels regards competitive strategies as very important, while
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group-owned hotels consider these as being of lesser importance. It is hoped that the findings of this study will add to the relatively limited research on marketing in the hospitality industry, especially for hotels of different sizes and ownership types.
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