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Addis Ababa University School of Commerce Graduate Studies ADDIS ABABA UNIVERSITY SCHOOL OF COMMERCE GRADUATE STUDIES The Effect of Marketing Mix Elements on the Satisfaction of Inbound Tourists to Ethiopia By: Getachew Melese ID: GSE0606/07 A Thesis Submitted to School of Graduate studies of Addis Ababa University in partial fulfillment of the requirement for Master of art in Marketing Management Advisor: Dr. Tewodrs Mesfin May, 2017 (Addis Ababa) Declaration I, the undersigned, declare that, this research paper is my original work, has never been presented in this or any other university, and that all resources and materials used herein have been duly acknowledged. Name: Getachew Melese Signature: ____________ Place: School of Commerce, Addis Ababa University, Ethiopia Date of submission 30 May, 2017 ADDIS ABABA UNIVERSITY SCHOOL OF COMMERCE GRADUATE STUDIES Statement of certification This is to certify that Ato Getachew Melese has carried out his post-graduate thesis work on the topic entitled “The Effect of Marketing Mix Elements on the Satisfaction of Inbound Tourists to Ethiopia. The work is original in nature and suitable for submission for the award of Master of Degree in Marketing Management (MA) ______________________________ Advisor: Dr. Tewodros Mesfin Date: ______________________ ADDIS ABABA UNIVERSITY SCHOOL OF COMMERCE GRADUATE STUDIES The Effect of Marketing Mix Elements on the Satisfaction of Inbound Tourists to Ethiopia BY: Getachew Melese Approved by Board of Examiners: ____________________________ ____________ __________ Chairman, Department Signature Date _____________________________ _____________ __________ Internal Examiner Signature Date _____________________________ _____________ __________ External Examiner Signature Date ACKNOWLEDGEMENTS I wish to express my appreciation to my thesis advisor Dr. Tewodros Mesfin for his valuable assistance during writing this research paper. I am grateful to my wife, Mulunesh Yohannes for her understanding and the help she extended to me. I wish to say thank you to Ato. Solomon Kebede for assisting me during data collection. Abstract This study is designed to examine the relationship between satisfaction of inbound tourists to Ethiopia and the marketing mix elements. The marketing mix elements which were surveyed had been destination (product), price, places, processes, promotion, physical evidence and people. The study had mainly employed quantitative approach and used descriptive analysis and regression. It was supplemented by key informant interview. The sample size was 385 tourists who were in Ethiopia in the month April 2017. The survey had 50 questions covering demographic details, travel characteristics and survey response on marketing mix elements. Data were also tested using linearity, Cronbach alpha and multicollinearity in order to determine the appropriateness of the data and the tools used for analysis. The findings show that the marketing mix elements in general were partially responsible for the satisfaction of inbound tourists to Ethiopia. The variables that had significant effect on satisfaction of inbound tourists were found to be destination (product), people, price and physical evidence. The contribution of places, processes and promotion in the satisfaction of the inbound tourists was insignificant. Key words: Marketing Mix, Product, price, places, processes, promotion, physical evidence, people and satisfaction. Acronyms UK: United Kingdom UNECA: United Nations Economic Commission for Africa UNESCO: The United Nations Educational, scientific and Cultural Organization UNWTO: United Nations World Tourism Organization USA: United States of America WB: World Bank WEFR: World Economic Forum Repot WTO: World Tourism Organization WTTC: World Tourism and Travel Council Table of contents Acknowledgement………………………………………………………..i Abstract …………………………………………………………………… ii Chapter One 1. Introduction ................................................................................... 1 1.1. Research background ...................................................... 1 1.2. Statements of the problem ................................................ 2 1.3. Research Question .......................................................... 3 1.4. Research objective ............................................................ 3 1.5. Research Model and Hypotheses ...................................... 4 1.6. Significance of the study .................................................. 4 1.7. Scope of delimitations ...................................................... 4 1.8. Definition of Terms .......................................................... 5 Chapter two Review Related Literature ......................................................................... 6 2.1. Theoretical Framework .............................................................. 6 2.1.1. Truism Defined .................................................................... 6 2.1.2. Classification of Tourism and Tourist .................................. 6 2.1.3. Destinations as products ...................................................... 8 2.1.4. Tourist (customer) satisfaction ............................................. 9 2.1.5. The Tourism marketing Mix ................................................... 10 2.1.6. Conceptual Model ................................................................. 11 2.1.7. Hypotheses of study .............................................................. 12 2.2. Tourism in Ethiopia .................................................................. 14 2.2.1. Historical Development of Tourism in Ethiopia ..................... 14 2.2.2. Tourist Attractions in Ethiopia ............................................. 16 2.2.3. Inbound Tourists to Ethiopia ................................................ 18 2.3. Empirical Literature .................................................................. 19 Chapter three 3. Research Approach, Method and Design ............................................ 22 3.1. Research Method ...................................................................... 22 3.2. Research Design ....................................................................... 22 3.3. Research Approach ................................................................... 22 3.4. Data Source and Instruments of Data Collection ....................... 23 i 3.4.1. Primary Data Collection ........................................................ 23 3.4.1.1. Tourist Questionnaires ............................................. 23 3.4.2. Secondary Data .................................................................... 24 3.5. Sampling Technique .................................................................. 24 3.6. Methods of Data analysis .......................................................... 25 3.7. Reliability………………………………………………………………………25 Chapter Four 4. Data Presentation and analysis ......................................................... 27 4.1. Analysis of the Survey ................................................................ 27 4.1.1. Demographic Analysis of survey Respondents ....................... 28 4.1.2. Analysis of travel profile of sample respondents ...................... 30 4.1.3. Analysis of survey Response .................................................. 31 4.1.3.1. Descriptive analysis of responses from the survey .... 32 4.2. Assumption(Reliability) Test ........................................................ 36 4.2.1. Regression ............................................................................ 40 4.2.2. Hypothesis Testing ................................................................ 42 4.3. Qualitative Data Analysis (Informants response summery) .......... 44 4.4. Analysis of Tourist Arrivals, country of origin and receipts ......... 48 4.4.1. Tourist Arrivals with purpose of the visit ............................... 50 4.4.2. Tourist Receipts .................................................................... 51 4.5. Data Triangulation …………………………………………………………..51 Chapter Five 5. Conclusion and Recommendation ................................................... 55 5.1. Summary Conclusion ................................................................. 55 5.2. Recommendation ...................................................................... 57 5.3. Limitation and Implication for Further study .............................. 58 Reference ................................................................................................. 59 Appendix .................................................................................................. 65 ii List of Table Table 1: Travel and Tourism Competitiveness report ................................. 2 Table 2.1 Smith’s typology of Tourists ...................................................... 7 Table 2.2 Number of Travel Tour .............................................................. 15 Table 2.3 Number of Hotels ...................................................................... 15 Table 4.1 Demographic ............................................................................ 28 Table 4.2 Travel Characteristics ............................................................... 30 Table 4.3 Survey Data .............................................................................. 32 Table 4.4 Variables with Lower standard Deviation ................................... 34 Table 4.5 Variables with Higher standard Deviation ................................. 34 Table 4.6 Mean and Standard Deviation ..................................................
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