ROLE OF BRAND PERCEPTIONS AND ENTREPRENEURIAL SELF-EFFICACY ON PLACE BRAND EQUITY IN WESTERN KENYA TOURISM CIRCUIT EDGAR OTSEMBO NDUBI (MSc.) A THESIS SUBMITTED IN FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF DOCTOR OF PHILOSOPHY IN TOURISM MANAGEMENT, IN SCHOOL OF HOSPITALITY, TOURISM AND LEISURE STUDIES, KENYATTA UNIVERSITY JULY, 2019 ii DECLARATION iii DEDICATION This work is dedicated to my family, specifically my wife, Linet Saisi, my children, Brian Mukongo and Sean Khiteyi, my father, Kalisto Ndubi (RIP), my mother Prudence Aori Ndubi, my grandmother, Felista Wakhaya Ngobi (RIP) who nurtured my education by making me see the sense of learning early on in my school. God bless you all. iv ACKNOWLEDGEMENT I would like to acknowledge my supervisors Dr. Shem Maingi and Dr. Mary Mutungi without whom I would not have had the courage and strength to embark on this journey. I would also like to appreciate the support of Kenyatta University Management for granting me the opportunity to pursue these studies through funding my studies and providing a conducive environment for undertaking this audacious task. I would also like to acknowledge the faculty members in the School of Hospitality, Tourism a led by the Dean, Prof. Elijah Gitonga, Dr. Alice Ondigi and Dr. Esther Munyiri, Chairperson, Department of Tourism Management. Thank you for your continued support and guidance. I would also like to thank all who participated in ensuring that I get the necessary support from the inception of the study to its finalization, and especially tourism staff at the County Offices in Kakamega, Busia, Kisii and Kisumu; Ministry of Tourism Officials; Kenya Tourism Board Officials; Tourism Finance Corporation Officials; Tourism Regulatory Authority Officials; Kenya Wildlife Service Officials. Others include members of Lake Victoria Tourism Association and management of Tourism Enterprises in the Western Kenya Tourism Circuit. I would also like to thank Dr. Isaya Onjala, Mr. Henry Mungasia and Mrs. Ann Musau for their unwavering support at the beginning of the Journey. Lastly I would like to appreciate my research assistants and statisticians for assisting me in my data collection and analysis. v TABLE OF CONTENTS DECLARATION ........................................................................................................... ii DEDICATION .............................................................................................................. iii ACKNOWLEDGEMENT ........................................................................................... iv TABLE OF CONTENTS .............................................................................................. v LIST OF TABLES ...................................................................................................... xii LIST OF FIGURES ................................................................................................... xiv LIST OF BOXES ........................................................................................................ xvi LIST OF EQUATIONS ............................................................................................ xvii LIST OF ABBREVIATIONS AND ACRONYMS ............................................... xviii OPERATIONAL DEFINITION OF TERMS ......................................................... xix ABSTRACT .............................................................................................................. xxvi CHAPTER 1 - INTRODUCTION ................................................................................... 1 1.1 Background to the Study ........................................................................................ 1 1.1.1 Tourism in Kenya ............................................................................................. 6 1.1.2 Western Kenya Tourism Circuit ................................................................... 12 1.2 Problem Statement and Justification .................................................................. 16 1.3 Purpose of Study .................................................................................................... 18 1.4 Objectives of Study ................................................................................................ 19 1.4.1 General Objective ........................................................................................... 19 1.4.2 Specific Objectives .......................................................................................... 19 1.6 Hypothesis .............................................................................................................. 19 1.7 Significance of Study ............................................................................................. 20 1.8 Delimitations .......................................................................................................... 21 1.9 Limitations ............................................................................................................. 22 1.10 Assumptions ......................................................................................................... 22 1.11 Conceptual Framework ...................................................................................... 23 1.12 Study Variables ................................................................................................... 26 1.12.1 Independent Variables ................................................................................. 26 1.12.2 Moderating Variables................................................................................... 26 1.12.3 Dependent Variables .................................................................................... 26 1.13 Organization of Study ......................................................................................... 27 vi CHAPTER 2 - LITERATURE REVIEW .................................................................... 28 2.0 Introduction ........................................................................................................... 28 2.1 The Concept of Place Brand Equity .................................................................... 28 2.1.1 Place Brand Equity Research ........................................................................ 30 2.1.2 Tourism Entrepreneurs’ Brand Perceptions ............................................... 32 2.1.3 Customers’ brand perceptions ...................................................................... 34 2.1.4 Brand Awareness and Brand Equity ............................................................ 36 2.1.5 Brand Image and Brand Equity .................................................................... 37 2.1.6 Brand Quality and Brand Equity.................................................................. 40 2.1.7 Brand Loyalty and Brand Equity ................................................................. 41 2.2 The Concept of Entrepreneurial Self-Efficacy ................................................... 43 2.2.1 Entrepreneurial Self-Efficacy Research ....................................................... 45 2.2.2 Opportunity recognition ................................................................................ 48 2.2.3 Innovation........................................................................................................ 49 2.2.4 Entrepreneur Relationships........................................................................... 50 2.2.5 Defining Core Purpose ................................................................................... 51 2.2.6 Harnessing Critical Resources ...................................................................... 53 2.2.7 Risks and Uncertainties.................................................................................. 54 2.3 The Concept of Industry context ......................................................................... 55 2.3.1 Political/Legal Factors .................................................................................... 58 2.3.2 Social-Cultural Aspects .................................................................................. 58 2.3.4 General Environment ..................................................................................... 59 2.3.5 Economic Factors ........................................................................................... 60 2.3.6 Technological Factors..................................................................................... 61 2.4 Theoretical Review ................................................................................................ 62 2.4.1 Brand Equity Theory ..................................................................................... 63 2.4.2 Entrepreneurial Self-Efficacy Theory .......................................................... 67 2.4.3 Competitive Identity Theory ......................................................................... 68 2.4.4 Customer-Perceived Value (CPV) ................................................................ 69 2.4.5 Theoretical Model for Brand Perceptions; Entrepreneurial Self- Efficacy and Place Brand Equity ........................................................................... 70 2.5 Summary of Gaps from Reviewed Literature .................................................... 70 vii CHAPTER 3 – RESEARCH METHODOLOGY ........................................................ 75 3.0 Introduction ..........................................................................................................