GREEN MARKETING PRACTICES AND PERFORMANCE OF ECO-TOURISM IN KENYA JOSEPHINE WANJERI KIMANI A RESEARCH PROJECT SUBMITTED IN FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA), SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI 2015 DECLARATION This Research Project is my original work and has not been presented for a degree in any University. Signature……………………….. Date: ………………….. JOSEPHINE W. KIMANI REG. NO. D61/60329/2013 This Research Project has been submitted with my approval as the student‘s appointed Supervisor. Signature……………………….. Date: ………………….. PROFESSOR FRANCIS N. KIBERA Department of Business Administration School of Business University of Nairobi ii ACKNOWLEDGEMENT My special thanks go to the Lord Almighty for He showed me that I can do all things through Christ who strengthens me. I cannot express enough thanks to my supervisor Professor Francis N. Kibera for his guidance, dedication, motivation and immense knowledge. My sincere thanks also go to my Moderator Ms. Catherine Ngahu for insightful comments and encouragement. Lastly, I would like to thank my family for always believing in me. Thank you for being my source of encouragement throughout my studies. Blessings and smiles of gratitude to all of you. iii DEDICATION This Research Project is dedicated to my family. Many are the times they have missed my attention when I was busy in the study room preparing this Project. It was worth the sacrifice! iv ABSTRACT This study sought to establish whether there is indeed a relationship between Green Marketing practices and performance of ecotourism in Kenya. The population of the study was the 85 firms that are eco- certified by Ecotourism Kenya. A sample of 46 ecotourism destination providers was targeted. Primary data was collected by use of a semi structured questionnaire that was administered to the marketing managers in these firms. All the respondents agreed that their firms practiced green marketing. The major factors influencing this decision were to comply with the existing environmental policies and for environmental conservation. The study revealed that in supporting the local communities, the tourist accommodation service providers are involved in various activities from buying products to providing various services such as education facilities and environmental conservation as well offering them employment. The study also revealed that tourist accommodation service providers engage in different practices on their products/services to enhance level of green marketing practices. The major practice in this regard was making sure that the product is engaging and simple. Nearly all of the respondents mentioned that there is a relationship between green marketing and ecotourism sector in Kenya. From the findings, green marketing has many benefits to the ecotourism sector. The most notable is customer satisfaction as mentioned by majority of the respondents. The study recommends that ecotourism destination service providers in the country should continue to practice green marketing since it has benefits that can enhance the performance of their firms. The government of Kenya should develop a new strategy focusing on sustainable community based ecotourism. This will ensure that the community reaps the socio and economic benefits of development and conservation. It will further boost the respect and understanding between the community, local authorities and the ecotourism destinations. v TABLE OF CONTENTS DECLARATION..................................................................................................................... ii ACKNOWLEDGEMENT ..................................................................................................... iii DEDICATION........................................................................................................................ iv ABSTRACT ..............................................................................................................................v TABLE OF CONTENTS ...................................................................................................... vi LIST OF TABLES ............................................................................................................... viii LIST OF FIGURES ............................................................................................................... ix ABBREVIATIONS AND ACRONYMS ................................................................................x CHAPTER ONE ......................................................................................................................1 INTRODUCTION....................................................................................................................1 1.1Background of the Study ................................................................................................... 1 1.1.1 Concept of Green Marketing Practices .................................................................2 1.1.2 Concept of Eco-Tourism Performance .................................................................3 1.1.3 Eco-Tourism Subsector in Kenya .........................................................................4 1.2 Research Problem ............................................................................................................. 5 1.3 Research Objective ........................................................................................................... 7 1.4 Value of the Study ............................................................................................................ 7 1.5 Chapter Summary ............................................................................................................. 8 CHAPTER TWO .....................................................................................................................9 LITERATURE REVIEW .......................................................................................................9 2.1 Introduction ...................................................................................................................... 9 2.2 Theoretical Foundation .................................................................................................... 9 2.3 Green Product and Eco-Tourism Performance .............................................................. 11 2.4 Green Price and Eco-Tourism Performance................................................................... 13 2.5 Green Place and Eco-Tourism Performance .................................................................. 14 2.6 Green Promotion and Eco-Tourism Performance .......................................................... 15 2.7 Green Marketing Practices and Ecotourism Performance ............................................. 17 2.8 Chapter Summary ........................................................................................................... 18 CHAPTER THREE ...............................................................................................................19 RESEARCH METHODOLOGY .........................................................................................19 3.1 Introduction .................................................................................................................... 19 3.2 Research Design ............................................................................................................. 19 3.3 Target Population ........................................................................................................... 19 3.4 Sample Design................................................................................................................ 20 3.5 Data Collection ............................................................................................................... 20 3.6 Data Analysis ................................................................................................................. 21 3.7 Chapter Summary ........................................................................................................... 21 CHAPTER FOUR ..................................................................................................................22 DATA ANALYSIS, RESULTS AND DISCUSSION ..........................................................22 vi 4.1 Introduction .................................................................................................................... 22 4.2 Demographic Information .............................................................................................. 22 4.2.1 Gender ................................................................................................................22 4.2.2 Age Bracket .......................................................................................................23 4.2.3 Highest Level of Education ...............................................................................23 4.2.4 Geographical Location of the Instituition ..........................................................24 4.2.5 Duration Served in the Ecotourism Industry .....................................................25 4.3 Green Marketing Practices Used by Eco-Tourism sector. ............................................. 26 4.3.1 Firms Practicing Green Marketing.....................................................................26 4.3.2 Factors influencing the Decision to Practice Green Marketing .........................27 4.3.3 Firm‘s Support to Local