THE EFFECT OF PROMOTIONAL MIX PRACTICES ON CUSTOMER PREFERENCE THE CASE OF FIVE STAR FRANCHISED HOTELS IN ADDIS ABABA

Abstract

Nowadays the hotel industry is in a stiff competition against each other to dominate the market. However, resource allocation based on identification of which promotional strategy has the critical influence on the overall consumer preference has still been overlooked. Promotional mix is a critical approach to enhance the sales performance as companies try to do some more attractive, influencing promotion through various media. The aim of the study is to investigate the effects of promotional mix practices on customer preference of franchised five-star hotels in Addis Ababa. The study adopted quantitative research approach and explanatory research design. The survey was conducted on customers of franchised five-star hotels in Addis Ababa. Personal judgment non-probability sampling techniques were applied to select 385 sample respondents, of which a total of 241usable responses were collected. Primary data, collected through self-administered questionnaires, were used for analysis. The result endorses that all the five promotional mix tools such as advertising, sales promotion, direct marketing, personal selling and public relations/ publicity had significant effect on overall consumer preference. Sales promotion and advertising exhibited relatively the highest effects. To enhance consumer preferences, the hotels should advertise marketing messages accompanied with event organization and frequent contact of the targeted potential customers.