ANALYSIS ON THE EFFECT OF MARKETING MIX ON CUSTOMER SATISFACTION AND LOYALTY IN THE HOSPITALITY INDUSTRY OF ETHIOPIA: USING STRUCTURAL EQUATION MODEL.

Authors

  • Abraha Haftom Gebremichael Punjabi University, University School of Applied Management,Patiala, India
  • Parminder Singh Dhillon (PhD) Punjabi University, Department of Tourism hospitality and Hotel Management

Keywords:

Marketing mix, Customer Satisfaction, Customer Loyalty, Hospitality industry

Abstract

In contemporary service marketing strategy, more attention has been given to the very concept of the 7ps marketing mix as a package and are believed to be crucial tools to bring about Customer satisfaction and loyalty thereby maximize company’s performance. Having this into account, the study mainly aims at examining the impact of marketing mix and customer satisfaction on customer loyalty of hotel industry in Ethiopia. The study used 387 participants who were staying in some selected 3star hotels during the time of data collection andrandomly approached using self-administered questionnaire. Structural equation model, specifically exploratory and confirmatory factor analyses were used to analyze the data. To this end, findings of the study showed that marketing mix and customer satisfaction has positive significant effect on customer loyalty. The study gives a clue to hospitality marketers that better engagement on marketing mix and customer satisfaction are best ways to ensure sustainable customer loyalty.

References

Achmad, M. &Sugeng, P.(2018). Determinants of Customer Satisfaction and Its Implication on Customer Loyalty of Budget Hotel in DKI Jakarta. International Review of Management and Marketing, 8(6), 1-7.

Aldyanza, Y., Rita, N., &Faiz S., (2015).The Impacts of Marketing Mix on Customer Satisfaction and Loyalty in Honey Product. International Journal of Science and Research (IJSR), 6(7), 1778-1783

Anderson, E.W., Fornell, C.(1994). A customer satisfaction researchprospectus. In: Rust, R.T., Oliver, R.(Eds.), Service Quality: New Directions in Theory and Practice. Sage Publications,Thousand Oaks,CA, pp. 241-268.

Barsky, J., & Nash, L. (2002).Evoking Emotion: Affective Keys to Hotel Loyalty. Cornell Hotel and Restaurant Administration Quarterly, 43(1), 39-46.

BirhanuTs. (2017). Service Quality and Customer Satisfaction In The Hotel Industry, The Case Of SNNPRS; Ethiopia. International Journal of Management Research & Review,7(10),950-957.

Borden, N. H. (1965). The concept of the marketing mix.In Schwartz, G. (Ed), Science in marketing. New York: John Wiley & Sons, 386-397.

Byrne, B.M. (2010). Structural Equation Modeling with AMOS. 2nd ed. New York, Taylor & Francis Group.

Cardozo, R.N. (1965). An experimental study of customer effort, expectation and satisfaction. Journal of Marketing Research, 2: 244-249.

Cochran, W. G. (1977). Sampling techniques (3rd ed.). New York: John Wiley & Sons.

Day, G. S. (1969). A two-dimensional concept of brand loyalty.Journal of Advertising Research,9, 29-35.

Fakeideas. (2008). Revision: Reviewing the Marketing Mix. [Online] Available: http://fakeideas.co.uk/2008/03/07/revision-reviewing-the-marketing-mix.

Fornell, C., &Larcker, D„(1981). Structural equation models with unobservable variables and measurement error: algebra and Statistics. Journal of marketing research, 18(3), 382.https://doi.Org/l 0.2307/3150980.

Fornell, C., (1992). A National Customer Satisfaction Barometer: The Swedish Experience. Journal of Marketing, 56 (1), 6-21.

Gaskin, J. & Lim, J. (2016). Model Fit Measures: AMOS Plugin. Gaskination's Stat Wiki.

Gerpott, T. J., Rams, W., & Schindler, A. (2001).Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunications market. Telecommunications Policy, 25(4), 249-

Downloads

Published

2022-09-30

How to Cite

Gebremichael, A. H. ., & Dhillon (PhD), P. S. . (2022). ANALYSIS ON THE EFFECT OF MARKETING MIX ON CUSTOMER SATISFACTION AND LOYALTY IN THE HOSPITALITY INDUSTRY OF ETHIOPIA: USING STRUCTURAL EQUATION MODEL. The Journal of Contemporary Issues in Business and Government, 28(3), 471–484. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/2388

Issue

Vol. 28 No. 3 (2022): The journal of contemporary issues in business and government

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

You are free to:

  1. Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
  2. Adapt — remix, transform, and build upon the material for any purpose, even commercially.
  3. The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  1. Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  2. No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Notices:

You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .

No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.