ABSTRACT
The study examined the effect of physical facilities on marketing performance of selected tourism firms (sites) in the South-East and South-South zones of Nigeria. Despite the enormous social and economic contributions of tourism and also the huge tourism resources in Nigerian, the level of marketing performance in the tourism sites has not been encouraging. The specific objectives of the study were to examine effect of the key constructs (independent variables) of accommodation facilities, shopping facilities and golf course facilities on the dependent variables of customer patronage, referrals, customer retention and satisfaction of the selected tourism sites. Also, to examine how security moderate the effect of the independent variables on the dependent variables of the study. Primary data were collected using copies of questionnaire administered to a sample size of 274 staff and 162 customers (tourists) of the sites. 263 copies of questionnaire for the staff and 157 for the customers (tourists) were retrieved and found usable. The research hypotheses were tested at the 5% level of significance, using Simple Regression Model. The findings revealed that the key constructs (independent variables) of accommodation facilities, shopping facilities and golf course facilities have significant effect on the dependent variables of customer patronage, referrals, retention and satisfaction of the tourism sites. The findings also revealed that security significantly moderate effect of the independent variables on the dependent variables of the study. Consequently, the researcher recommended that the managements of the tourism firms (sites) should provide adequate physical facilities for the sites. Also, there should be improved security in the tourism sites as the success or failure of a tourism site will depend on availability of security, among others.
TABLE OF CONTENTS
Title page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of Contents vi
List of Tables ix
List of Figures xi
Abstract xii
CHAPTER 1: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3. Objectives of the Study 4
1.4 Research Questions 5
1.5 Research Hypotheses 6
1.6 Significance of the Study 7
1.7 Scope of the Study 9
1.8 Limitations of the Study 9
1.9 Definition of Terms 10
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Review of Conceptual Literature 12
2.1.1 Service brand communication 13
2.1.1.1 Controlled communication 17
2.1.1.2 Uncontrolled communication 29
2.1.1.3 Brand name 34
2.1.2 Consumer responses 42
2.1.2.1 Customer preference 44
2.1.2.2 Brand attitude 46
2.1.2.3 Brand re-use intentions 46
2.2 Theoretical Framework 48
2.2.1 Consumer-processing model (CPM) 48
2.2.2 The hedonic experiential perspective (HEM) 49
2.2.3 The service branding model 50
2.3 Review of Empirical Studies 51
2.4 Summary of and Gap in Literature 58
CHAPTER 3: METHODOLOGY
3.1 Research Design 59
3.2 Area of the Study 59
3.3 Population of the Study 61
3.4 Determination of Sample Size 61
3.5 Sampling Technique 62
3.6 Method of Data Collection/Instrumentation 63
3.7 Validity of the Instrument 64
3.8 Reliability of the Instrument 65
3.9 Method of Data Analysis 65
3.10 Model Specification 69
CHAPTER 4: RESULTS AND DISCUSSIONS
4.1 Collation of Data 74
4.2 Descriptive Analysis of Questionnaire Data 75
4.2.1 Demographic profile of respondents 75
4.2.2 Descriptive analysis of responses from respondents 83
4.3 Analysis and Test of Hypotheses 92
4.3.1 Test of hypothesis 1 91
4.3.2 Test of hypothesis 2 95
4.3.3 Test of hypothesis 3 98
4.3.4 Test of hypothesis 4 101
4.3.5 Test of hypothesis 5 103
4.3.6 Test of hypothesis 6 105
4.3.7 Test of hypothesis 7 108
4.3.8 Test of hypothesis 8 110
4.3.9 Test of hypothesis 9 114
4.4 Discussion of Results 117
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings 124
5.2 Conclusion 125
5.3 Recommendations 126
5.4 Suggestions for Further Research 127
5.5 Contribution to Knowledge 128
References 129
Appendices 139
LIST OF TABLES
3.1 Capital cities, number of Local Government Areas and population
distribution of the South-South States 60
3.2 Reliability Statistics 64
4.1 Questionnaire administration and response rate per the sampled
states in the South-South Zone 74
4.2 Distribution of respondents according to sex 75
4.3 Distribution of respondents according to age 76
4.4 Distribution of respondents according to highest level of education 77
4.5 Distribution of respondents according to their most preferred used brand 78
4.6 Distribution of respondents according to years of brand experience 79
4.7 Distribution of respondents according to frequency of viewing / reading
advertisement of GSM companies 80
4.8 Distribution of respondents according to frequency of contacts with sales
representatives of GSM companies 81
4.9 Distribution of respondents according to frequency of obtaining free
SIM cards from GSM companies 82
4.10 Controlled Communications (advertising, sales promotion and personal
selling) in the telecommunications industry in the South-South Zone,
Nigeria 83
4.11 Uncontrolled Communication (word-of-mouth and publicity) in the
telecommunications industry in the South-South Zone, Nigeria 85
4.12 Brand Names (MTN, Glo, Airtel and 9Mobile) in the
telecommunications industry in the South-South Zone, Nigeria 87
4.13 Consumer preference for the telecommunications firms in the
South-South Geopolitical Zone of Nigeria 88
4.14 Brand Attitude among customers of the studied telecommunications firms 89
4.15 Brand re-use intention among customers of the studied
telecommunications firms 91
4.16 Model summary of multiple regression analysis of controlled
communications (advertising, sales promotion and personal
selling) on consumer preference 93
4.17 Model summary of multiple regression analysis of controlled
communications (Advertising, sales promotion and personal
selling) on brand attitude 96
4.18 Model summary of multiple regression analysis of controlled
communications (advertising, sales promotion and personal
selling) on brand re-use intention 99
4.19 Model summary of multiple regression analysis of uncontrolled
communications (word of mouth and publicity) on consumer preference 102
4.20 Model summary of multiple regression analysis of uncontrolled
communications (word of mouth and publicity) on brand attitude 104
4.21 Model summary of multiple regression analysis of uncontrolled
communications (word of mouth and publicity) on brand re-use
intention 106
4.22 Model summary of multiple regression analysis of brand names
(MTN, Globacom, Airtel and 9Mobile) on consumer preference in the
telecommunications industry in the South-South Geopolitical Zone of
Nigeria 109
4.23 Model summary of multiple regression analysis of brand names
(MTN, Globacom, Airtel and 9Mobile) on brand attitude 112
4.24 Model summary of multiple regression analysis of brand names (MTN,
Globacom, Airtel and 9Mobile) on brand re-use intention 115
LIST OF FIGURES
2.1 Connection amongst service brand communications and consumer responses 12
3.1 Map of the South-South Geopolitical Zone of Nigeria 61
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The tourism industry is a veritable social and economic catalyst that is used to stimulate investment for economic growth and development in both developing and advanced economies (Bruno 2017). The tourism industry is the world’s largest service industry that contributes to the promotion of international cooperation as well as showcasing the rich cultural heritage of a people (Babatunde 2016). Hence, business oriented countries are cashing in on the potentials of tourism to improve on their foreign exchange earnings and international image (Fubara 2017).
The World Travel and Tourism Commission (WTTC) report indicates that in 2015, tourism services made immense direct contribution to Gross Domestic Product (GDP) of nations; $458.7b for United States of America, $272b for China, $113.3b for Germany and $1.65b for Nigeria. Contribution to employment creation; 54m for United States of America, 25m for China, 29.3m for Germany and 892,600 for Nigeria. In the views of Onyeokoro and Esi-Ubani (2018), tourism can result in economic diversification and drastic reduction of the Nigeria’s over dependence on oil which has being a major challenge in Nigeria today.
Despite these enormous social and economic contributions of tourism, both to the individual and the nation and also the huge tourism resources in Nigeria, the level of marketing performance in the tourism sites has not been encouraging. In view of the impressive impact of tourism to the economy of nations, the industry has not been given the desired attention in Nigeria (Ebitu 2015). According to Uchechukwu (2018), the Nigerian experience on tourism marketing and development is a far cry from what obtains in many other countries such as Kenya, South Africa, Germany, Malaysia etc. Nze (2014) notes that Nigeria is abundantly and extensively endowed with tourism potentials, yet the industry is still underdeveloped when compared with other nations with huge tourism potentials.
Ifedi (2013) and Babatunde (2015) collaborate to explain that Nigeria with great tourism resources is yet to achieve any remarkable impact in the industry due to the prolonged neglect by relevant authorities and the lack of political will as well as effective legislation to regulate the sector. This has presently set the industry backward when compared with other countries where tourism resources are being harnessed for economic development.
Esu, Arrey, Basil and Eyo (2016), submit that South Africa had practically harnessed her tourism potentials and has become the preferred destination in the continent. South Africa welcomes an average of nine million foreign tourists per annum, including sixty thousand Nigerian tourists. According to reports, United Arab Emirates aims to double its annual income from tourism to $82 billion by 2021. What is attracting Nigerians and the rest of the world to this country is that the country has positioned itself as an exciting destination where one can have fun and feel safe at the same time. Malaysia and Singapore are not left out in this game as the countries according to Munzali (2015), have harnessed their tourism potentials to the point that they are now the preferred destinations where people can visit for holidays, relaxation and fun. These countries have developed the needed facilities for effective and efficient tourism practice. Nigeria seems to lack the initiative and courage as well as modern facilities that could position and make the industry attractive. Costa and Carvalho (2017) state that Nigeria needs to explore, tap and harness the abundant natural endowment of tourism resources in order to position the industry and compete favourably with other destinations at continental and global levels.
Marketing performance according to Kotler, Bowen and Makens (2016), is marketing’s results compared against the objectives. It is the process of enhancing the effectiveness of marketing strategies, with the objective of stimulating the return on investment (ROI). Marketing performance of tourism firms could be measured by examining the level of customer (tourist) patronage, referrals, customer (tourist) retention and customer (tourist) satisfaction.
Physical facilities in this direction as an element of services marketing which is physical evidence can bring favourable balance of actions in the sector. Physical facilities seem to play significant role in the marketing performance of tourism sites .Simply put, no facilities, no tourism. According to Warken (2002), physical facilities are the bane of tourism. Physical facilities have been defined as the basic structures necessary for a country or an organisation to function effectively and efficiently. Such facilities include accommodation, transportation, water and energy resources, administrative systems, shopping facilities, golf courses and wildlife parks, restaurants,internet facilities, security that moderate tourism advancement among others (Jerzy, 2014). In general terms, it refers to the economic and social facilities which are provided by the government or private sector operators for social and economic development of the individual and the society at large (Kenneth & Barbados, 2014). Physical facilities play major roles in enhancing marketing performance of tourism firms in countries such as South Africa, U S A, China, France, Spain, Italy, Dubai, among others.What is not clear is the effort of the tourism firms in improving the physical facilities and the effect of the physical facilities on marketing performance of the tourism firms in these countries. In a study conducted by Jemmy (2016) on the case of Nambia as a tourist destination, found that infrastructure (comprising of roads, water, electricity, safety services, health services, communication and public transportation) is a key determinantexplaining tourist arrivals. Thang and Rochananond (2015) suggested that infrastructure is an important element in promoting Thailand as a tourist destination country. Again, in a study conducted by Ojo and Nlemuo (2017) on infrastructural facilities and tourism development in Nigeria,the findings revealed that infrastructure is the most crucial determinant of tourism development and therefore, advocate for adequate provision of infrastructure in tourism. Furthermore the importance of roads as one of infrastructures for tourism has been emphasized by Segun and Odoh (2015) who analysed the product in the context of comparative and competitive advantage, they emphasized that tourism planning and development may not be possible without roads, airports, habours, electricity, sewage and water. This study therefore seeks to examine how some selected tourism sites in the South East and South South zones of Nigeria will enhance marketing performance through provision of physical facilities. They include Rojenny Tourist Village in Oba,Tinapa Free Zone and Resort, Nekede Zoological Garden, Port Harcourt Pleasure Park, Awka Wonder Land, Obudu Mountain Resort, National War Museum in Umuahia, Cross River National Park, Owerri Mall (Shoprite) and Port Harcourt Culture and Tourism Zoo.
1.2 STATEMENT OF THE PROBLEM
Nigeria is naturally endowed with abundant tourism potentials (Marafa 2016). This has resulted to the major reason some of the Nigerian states and even the private sector are gradually moving into tourism. They have recognised the fact that tourism is a major cash cow that can earn enough revenue (Munzali 2015). According to Inyang and Esu (2018), Nigeria is blessed with huge tourism resources resulting to over one million tourists indicating interests to visit the country annually. A review of international tourism, number of arrivals and countries rankings (www.indexmundi.com) shows that Nigeria was ranked number 102 out of 188 in 2015. The first to fifth positions went to France, USA, Spain, China and Italy respectively. United Arab Emirates had the 41st position. The obvious challenge is to uncover why Nigeria with huge tourism potentials was ranked number 102. The researcher suspects that the challenge lies on the nature of physical facilities which seems to have direct relationship with marketing performance of the tourism firms. The nature of physical facilities may be a major factor which is playing down marketing performance of the tourism sites in Nigeria. Okonkwo (2017), states that tourism in Nigeria if given the desired attention through provision of physical facilities will position the country among the leading destinations in the world. Such facilities include accommodation, shopping facilities, golf courses and wildlife parks, transport and traffic facilities, internet facilities, restaurants, access roads, beaches and water ways and security as a moderating variable that will ensure increase in marketing performance of the sites. An empirical study conducted by Richard (2018) on investigating the importance of infrastructure in the overall attractions of a destination. The focus was on the destinations in some states in the northern Nigeria. The findings revealed that tourists are more sensitive to infrastructures in their choice of destination to be visited. That infrastructure is essential component of successful tourism development in Nigeria, in that it induces the creation of new attractions and growth of existing ones.
Okoi and Ejiogu (2016) supported these views in their study on infrastructure as a factor in tourism development in Nigeria. The findings show that infrastructure (transportation, sporting facilities, wild life parks, sewage and accommodation remain the basic prerequisites for a successful tourism development. They concluded by saying that until attentions are given to infrastructure, destinations in Nigeria will continue to attract low patronage in the international tourism market despite the huge tourism resources in the country.
Ogunnubi (2017), states that until the nature ofphysicalfacilities thatwill increasemarketing performance in the sitesisimproved in abundance, it will remain hindrance to tourism development in Nigeria. This should not be the case considering the huge tourism potentials in the country when compared with other nations such as South Africa and Malaysia where tourism is developing rapidly (Meke 2018).
The returns of developing tourism physical facilities are perfectly embodied by Dubai and South Africa (Milin 2016). According to reports, Dubai and South Africa aim to double their annual income from tourism to $83 billion and $86 billion respectively by 2022. This can be possible because these countries have positioned themselves as exciting destinations where people can have fun and feel safe at the same time due to the appreciable nature of physical facilities and security. A study on the effectof physical facilities on marketing performance in the tourism sector of Nigeria is therefore both of research and developmental interest to the nation in particular and the world in general.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study was to examine the effect of physical facilities on marketing performance of selected tourism sites in the South-East and South-South zones of Nigeria. The specific objectives include to:
1. examine the effect of accommodation facilities on customer patronage of the selected tourism sites.
2. examine the effect of accommodation facilities on customer referrals of the selected tourism sites
3. determine the effect of accommodation facilities on customer retention of the selected tourism sites.
4. investigate the effect of accommodation facilities on customer satisfaction of the selected tourism sites.
5. examine the effect of shopping facilities on customer patronage of the selected tourism sites.
6. explore the effect of shopping facilities on customer referrals of the selected tourism sites.
7. determine the effect of shopping facilities on customer retention of the selected tourism sites.
8. investigate the effect of shopping facilities on customer satisfaction of the selected tourism sites.
9. examine the effect of golf course facilities on customer patronage of the selected tourism sites.
10. explore the effect of golf course facilities on customer referrals of the selected tourism sites
11. determine the effect of golf course facilities on customer retention of the selected tourism sites.
12. investigate the effect of golf course facilities on customer satisfaction of the selected tourism sites.
13. examine how security moderate the effect of physical facilities onmarketing performance of the selected tourism sites.
1.4 RESEARCH QUESTIONS
The under listed research questions were raised to guide the study;
1. How do accommodation facilities affect customer patronage of the selected tourism sites?
2. To what extent do accommodation facilities affect customer referrals of the selected tourism sites?
3. To what extent do accommodation facilities affect customer retention of the selected tourism sites?
4. To what extent do accommodation facilities affectcustomer satisfaction of the selected tourism sites?
5. How do shopping facilities affect customer patronage of the selected tourism sites?
6. How do shopping facilities affect customer referrals of the selected tourism sites?
7. To what extent do shopping facilities affect customer retention of the selected tourism sites?
8. To what extent do shopping facilities affect customer satisfaction of the selected tourism sites?
9. How do golf course facilities affect customer patronage of the selected tourism sites?
10. To what extent do golf course facilities affect customer referrals of the selected tourism sites?
11. How do golf course facilities affect customer retention of the selected tourism sites?
12. How do golf course facilities affect customer satisfaction of the selected tourism sites?
13. How does security moderate the effect of physical facilities onmarketing performance of the selected tourism sties?
1.5 STATEMENT OF THE RESEARCH HYPOTHESES
The following null hypotheses were formulated to guide the study;
Ho1: Accommodation facilities do not significantly affect customer patronage of the selected tourism sites.
Ho2: Accommodation facilities have no significant effect on customer referrals of the selected tourism sites.
Ho3: Accommodation facilities do notsignificantlyaffect customer retention of the selected tourism sites.
Ho4: Accommodation facilities have no significant effect on customer satisfaction of the selected tourism sites.
Ho5: Shopping facilities do not significantly affect customer patronage of the selected tourism sites.
Ho6: Shopping facilities have no significanteffect on customer referrals of the selected tourism sites.
Ho7: Shopping facilities do not significantly affect customer retention of the selected tourism sites.
Ho8: Shopping facilities have no significant effect on customer satisfaction of the selected tourism sites.
Ho9: Golf course facilities do not significantly affect customer patronage of the selected tourism sites.
Ho10: Golf course facilities have no significant effect on customer referrals of the selected tourism sites.
Ho11: Golf course facilities do not significantly affect customer retention of the selected tourism sites.
Ho12: Golf course facilities have no significant effect on customer satisfaction of the selected tourism sites.
Ho13: Security does not significantly moderate the effect of physical facilities on marketing performance of the selected tourism sites.
1.6 SIGNIFICANCE OF THE STUDY
Physical facilities are socio-economic catalysts that can foster and enhance marketing performance of organisations.
Hence, adequate provision of physical facilities to increase marketing performance of tourism firms will not only attract the desired foreign investment to the economy but will also quicken the much needed economic diversification from the mono petroleum dependent economy of Nigeria. This will be of great beneficial to government policy makers who will establish development plans that will improve the entire economy of the nation.
Investors will have opportunities to invest and expand business frontiers in the sector.
The study will equip relevant government agencies and tourism organisations on the measures to sell the tourism potentials of Nigeria to the world tourism market. This will strengthen the industry, spur customer traffic level and improve revenue generation of the nation.
Consequently, the revenue generated can be used to establish other support businesses and improve basic infrastructure. This will create job opportunities that will lead to improved standards of living of the people. For the academia, the study would provide avenue for further studies that will add more facts and truth to the body of knowledge. It therefore would serve as a reference material for scholars, teachers and research fellows.
1.7 SCOPE OF THE STUDY
The subject scope of this study centres on the effect of physical facilities on marketing performance of the selected tourism sites. Hence, the study covers as much as possible physical facilities such as accommodation facilities, shopping facilities, golf course facilities and security that moderate the effect of physical facilities on marketing performance of the tourism sites. Furthermore, marketing performance is measured by patronage, referrals, customer retention and satisfaction.
Geographically, the study covers selected tourism sites in the South-East and South-South zones in Nigeria. They include: Rojenny Tourist Village in Oba, Tinapa Free Zone and Resort, Nekede Zoological Garden, Port Harcourt Pleasure Park, Awka Wonderland, Obudu Mountain Resort, National War Museum in Umuahia, Cross River National Park, Owerri Mall (Shoprite) and Port Harcourt Culture and Tourism Zoo. The sampling unit for the study includes staff of the selected tourism sites and their customers (tourists). These groups were considered to be knowledgeable with factors that will increase marketing performance in the tourism sites.
1.8 LIMITATIONS OF THE STUDY
Fundamentally, all human endeavours must have one form of limitation or the other. The geographical scope of the study, South-East and South-South zones of Nigeria was too large and therefore very tedious and tasking for a single researcher. This posed limitation in the course of the study as concentrating on a zone would have made the study less tasking.
Relying on questionnaire for data collection method also constituted limitation to the study. This was not adequate in collecting data for a study on physical facilities and marketing performance of tourism sites as observation for example was expected to be included to strengthen the study.
Also in the study, determining the sample size for the customers was difficult due to the inability of the tourism firms to know the population of their customers. The population is finite but unknown to the firms’ managements and therefore informed the decision to adopt the Topman’s formula.
1.9 OPERATIONAL DEFINITION OF TERMS
The following terms as defined by the researcher are those terminologies that may pose difficulties in understanding this work. They are defined operationally thus:
Tourist attractions: tourist attractions are the various places of beauty and interest that call the attention of tourists to visit for leisure, entertainment and experience.
Tourism development: tourism development results in preservation of cultural heritages, maintenance of infrastructure, tourism physical environment, making the sector more attractive and increased patronage.
Resort: a resort refers to a place where most needs and services required by travelers or tourists are provided.
Tourism: tourism is an occupation or profession that deals with the provision of traveling facilities, lodging accommodations and catering for the different needs of the tourists which will help make their travel a successful and experienced one.
Marketing performance: enhancing the effectiveness of marketing strategies, with the objective of improving the organisation’s return on investment (ROI).
Tourism site: a place of interest where tourists visit,for its inherent natural or cultural value, historical significance, natural or built beauty, offering leisure and amusement or entertainment.
Infrastructure: the basic structures that are needed for an organisation to function effectively and efficiently.
Physical facilities: buildings, services, equipments, etc that are provided for a particular purpose or activity.
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