MARKETING RESEARCH AS A TOOL FOR

INCREASED PROFITABILITY IN SERVICE

INDUSTRY
(A Survey of Hospitability Industry in Auchi)

OZELE ABIGAIL
MATRIC NO: SBS/6121146737

A PROJECT WORK IN PARTIAL

FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF HIGHER NATIONAL
DIPLOMA (HND) IN BUSINESS
ADMINISTRATION AND MANAGEMENT
TO THE DEPARTMENT OF BUSINESS
ADMINISTRATION AND MANAGEMENT,
SCHOOL OF BUSINESS STUDIES, AUCHI
POLYTECHNIC AUCHI,
EDO STATE

OCTOBER, 2014
 CERTIFICATION

We, the undersigned certify that this project titled “Marketing Research

as a tool for Increased Profitability in Service Industry A Survey of

Hospitability Industry in Auchi by OZELE ABIGAIL Matric No:

SBS/6121146737 under our supervision in the Department of Business

Administration and Management, School of Business Studies, Auchi

Polytechnic, Auchi.

We also certify that the project is adequate both in scope and

quality for the partial fulfillment of the requirements for the award of

Higher National Diploma (HND) in Business Administration and

Management.

___________________ ________________
MR. V.A. UMORU Date
Project Supervisor

___________________ ________________
MR. S.E. IMIANVAN Date
Head of Department
Business Administration & Management

___________________ ________________
MR. F.A. OGEDENGBE Date
Programme Coordinator

i
 DEDICATION

This project is dedicated to God Almighty, the Custodian of life

and the Architect of our destiny.

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 ACKNOWLEDGEMENTS

it is expedient on the part to give Glory and Honour, thanks and

adoration to God Almighty for his divine love, protection, guidance, good

health, knowledge, wisdom, courage and foresight in ensuring its

successful completion.

First, I acknowledge my parents Mr. and Mrs James Ojie Ozele for

their moral and financial support to my studies.

I also appreciate my Papa, Apostle Johnson Suleman (P.hd) for his

prayers and courage.

I appreciate my supervisor Mr. A.E. Idogho who took time to

supervise this project under his busy schedule and also to my HOD and

all lecturers in Marketing Department.

My unreserved and indebt gratitude goes to my Brithers and

Sisters, Dr. Kingsley Ozele, Joshua Ozele, Emma Ozele, Faith, Mercy,

Peace and all my friends Bobby, Goddy, Felix.

I say a big thanks to you all. With deep gratitude, Lord Jesus, I give

you all the glory.

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 TABLE OF CONTENTS

Title Page

Certification --------------------------------------------- i

Dedication --------------------------------------------- ii

Acknowledgements --------------------------------------------- iii

Abstract --------------------------------------------- iv

Table of Contents --------------------------------------------- vi

CHAPTER ONE: INTRODUCTION

1.1 The Background to the Study ----------------------------- 1

1.2 Statement of the Problem ------------------------------ 3

1.3 Objectives of the Study ------------------------------ 4

1.4 Research Questions ------------------------------ 4

1.5 Statement of Hypotheses ------------------------------ 5

1.6 Scope of the Study ------------------------------ 6

1.7 Significance of the Study ------------------------------ 6

1.8 Limitations of the Study ------------------------------ 6

1.9 Operational Definition of Terms ----------------------- 7

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction --------------------------------------- 9

2.2 Brief history of Irrua Speicalist Hospital ---------------- 9

2.3 Accountability -------------------------------------- 11

2.4 Financial accountability -------------------------------- 13

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2.5 Transparent ---------------------------------------- 15

2.6 Origin and Evolution of Transparent and Accountability

in Public Sector ----------------------------------------- 16

CHAPTER THREE: RESEARCH METHOD

3.1 Introduction --------------------------------------- 25

3.2 Research Design --------------------------------------- 25

3.3 Population of the Study --------------------------------------- 25

3.4 Sample and Sampling Technique ------------------------ 26

3.5 Instrumentation -------------------------------- 26

3.6 Method of Data Collection -------------------------------- 27

3.7 Method of Data Analysis -------------------------------- 28

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS

AND DISCUSSION
4.1 Introduction --------------------------------------- 29

4.2 Data Presentation and Interpretation ------------------------- 29

4.3 Data Analysis and test of hypotheses ------------------------- 34

4.4 Discussion ----------------------------------------------- 38

CHAPTER FIVE: SUMMARY, CONCLUSION AND

RECOMMENDATIONS
5.1 Summary of findings -------------------------------- 39

5.2 Conclusion ---------------------------------------- 40

5.3 Recommendations --------------------------------------- 41

References ---------------------------------------------- 44

Appendices ---------------------------------------------- 46
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 ABSTRACT
This project work focuses on the marketing research as a tool for
increased profitability in service industry (case study of survey industry
in Auchi. This study

vi
 CHAPTER ONE: INTRODUCTION

1.1 Background to the Study

The basic reason for this study is to examine marketing research

as a tool for increased profitability in service industry taking survey of

hospitability industry in Auchi.

The term Marketing Research can be seen as the application of

the scientific method of inquiry in helping marketers to better

understand and define their problems and finds appropriate solutions to

item. It is also the systematic and objective, collection, recording,

analysis, interaction and reporting of data needed for solving specific

market problems. It involves collecting and analyzing environmental

information systematically that market opportunities would be

recognized and marketing problem solved.

Marketing research can also be viewed as the systematic design,

collection, analysis and reporting of data relevant to a specific marketing

situations facing an organization. companies use marketing research is

helpful when it comes to ascertaining to state of demand among

consumers in the market. It can equally help marketers to understand

customers satisfaction and purchase behaviours provides variable

information to management for problem solving, help in accessing

market potential and market share, help in measuring the effectiveness

1
of pricing, distribution and promotion activities. Some large companies

have their own research departments projects.

Good marketing research does not only involved ordinary

technical tools. It requites cooperation between researchers and

marketing managers. Good marketing researcher must focus attention

towards marketing management and marketing research and be sure that

their researches focus real problem. Broad principle or laws putting it

another way research is a planned process of conducting investigations

in order to achieve a pre-determined objectives. The objectives usually a

solution to one or more specific problem or an addition to current

knowledge in a particular field.

It is against this background that the researcher believes the study

of this nature is necessary. The outcome of this study will provide an

adequate understanding on the application of the various marketing

research to service business like survey of hospitality industry.

Also, this research work will help to ensure an improvement in

the quality of services rendered to the customer and publics by survey of

hospitality industry and could as well help the management draw

strategy and programme which will enable them to remain competitive.

The research work will also help service organizations to

understand more correctively the basic principles of marketing research

2
and its place in service business so as to influence future marketing

operations.

1.2 Statement of Research Problem

A survey of hospitality industry in Auchi.

Eight to six lines may be sufficient for statement of research

problems. Each of these lines should be able to convey some meanings.

However, it is important to remind the researcher that he should

not confuse statement of problems with purpose of the study also in

writing the statement of problem, he should not be assertive. It is not an

intention.

It is important for problem to be proper when well stated. It sets

the tune of the study by indicating or showing clearly the gap which the

study aims at filling the end of the day.

Objectives of the Study

1. To examine critically the level of research that has been generated

by the corporation.

2. To find out the medium through which the research was created.

3. To find out the different research tools compare in adequate

research.

4. To ascertain customers perception of the research message that is

whether the target audience believes in the statement claims and

promises contained in the result from the research.

3
 5. To alert customers on the services and mode of services rendered

by the service industry especially the survey of hospitality

industry.

6. To find out if the research conducted have increased the growth

and profitability of the cooperation.

1.4 Research Hypotheses

Ho: Marketing research does not create awareness of the survey of

hospitality industry.

Hi: Marketing research creates awareness of the survey of hospitality

industry.

Ho: Marketing research does not increase the number of policy holders.

Hi: Marketing research increase the number of policy holders.

Ho: Marketing research does not increase profit in survey of hospitality

industry.

Ho: Marketing research increases profit in survey of hospitality

industry.

1.5 Significance of the Study

The benefits of the study can be discussed under the following.

The survey of hospitality industry like every other researcher

spends on researching. In order to rate profit, therefore, this study will

be a great benefit to the insurance company or to the survey hospitality

in that it would inform them more about the reaction of their research
4
activities and in turn being a profitable return for management to

continue to improve of it the research agency. The more it can

understand how the research has created work on the tagged audience,

the better will its planning and decision be in future, similarly to the

industry, the service industry in this case which is responsible for

researcher, has an individual and collective responsibility to improve the

level of production for its recommendations.

Finally, this study would help the researchers and the readers to

appropriately appreciate the use and importance of proper research

introducing and increasing profit on any service rendered.

1.6 Scope of the Study

The study takes a look into the marketing research activities of

survey of hospitality industry because of time and activities and other

factors involved.

1.7 Limitations of the Study

The research is limited to the study of a particular industry,

survey of hospitality industry in Auchi. It examines the conduct of

marketing research activities in the industry.

1.8 Definition of Terms

Marketing: This is a process of planning and executing the conception,

pricing, promotion, distribution, ideas of goods and services to create

exchange that will satisfy individual and organization objectives.

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Marketing Research: It is the systematic and objective design,

collection, presentation, analysis and interpretation of data.

(information) to enable managers deal with specific problems facing any

organization. it is also the systematic and objective search for and

analysis of information to guide managers in marketing planning and

problem solving.

Service Marketing: The marketing process involving organization that

buy in order to provide services, are activities or benefits that one party

can order to another that is intangible and does not result in the

ownership of its production may or may not be tied to physical products.

Insurance: Is one of the social sciences designed essentially for the

social sciences designed essentially for taking risk and risk taking

involves the uncertainty of loss. It is also an arrangement with a

company in which one pays them regular amount of money and they

agree to pay the cost.

Market Share: Percentage measure of the share obtained by an

individual company form the total market available.

Market Potentials: This is the situation whereby the market demand

approaches to a limit as the industry marketing expenditure get to

infinity within a given environment. It is also the highest expected sale

of a product. For a customer in a specific geographical area during a

stated time under ideal conditions. Ideal condition takes place when
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there is no environmental changes, showing that all resources for

production are available and all the firms in the industry are available

and all distributions, sales, promotion, advertising, public relations,

publicity, pricing and product improvement efforts.

Buying Motive: All those factors within a person organization which

combine to create a desire to purchase.

Field Research: This is the physical collection of data involving face to

face contact with the customer.

Forecasting: This is the expected level of company sales based on

chosen marketing plan and an assumed marketing environment.

Risk: Is the variability that is likely to occur in the future return from a

project.

Market: Is a potential buyer if a product or services.

Customers: A customer can be referred to as someone who regularly do

purchase from a particular store, company or organization.

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 CHAPTER TWO

LITERATURE REVIEW

Marketing research is the tool used by management in solving

problems and making decisions in the field of marketing. It is an end to

a sound judgment, as the aim is to furnish an organization with

necessary facts of which to base their decisions. It provide managers

with hypothesis or principles which can be carried over from one

marketing situation to another and this can be useful in marketing

predictions. It supplies analytical tools based on logic mathematical

used in decision making.

Station (1988, p. 48) stated that “by broadening the perceptive of

marketing research we are on effect, embracing the marketing concept”.

He however criticized marketing research on the basis of certain

difficulties which can be traced to the fact that the field depends on

human judgment and feelings of the people.

Marketing research uses statistical tools in formulating new

policy for future markets and help to answer question on what quantity

at what price, to which customers the products are meant for. It involves

gathering, recording and analysis of a all facts and data concerned with

the transfer of goods from the producers to the customers. Its also

reduce the area of uncertainty surrounding business decision makers.

8
 Nwokoye (1985) stated that marketing research provides valuable

information for the planning of the marketing mix. He further stated that

research reveals the product features that are popular, reveal price

ranges that are acceptable to buyers, reveal, etail outlets that can favour

the buyers and what media that buyers are likely to be reached when the

marketing plan is launched, marketing research is needed to monitor

results and to investigate various kinds of problems relating to the

marketing efforts. He emphasized that if a market has developed

research tradition as an integral way to planning and problem solving,

he is likely to reap full benefit from it. He also stated that “marketing

research does not only produce benefits, it cures cost as well”.

Tomcannon (2003, p. 108) has three views on marking research.

Firstly, it is a means used by those who provide goods and services to

keep themselves in touch with the needs and wants of those who buy

and use those goods and services. Secondly, it is the systematic

collection and objective recording, classification, analysis and

presentation of data concerning the behaviour, needs, attitudes, opinion,

motivation and individual and organizations (commercial enterprise,

public bodies e.t.c.) within the contact of their economic, social,

political and everyday activities. Lastly, it is the systematic and

objective search for analysis of information relevant to the identification

of any problem in the field of marketing. This goes beyond the confines
9
of market research with its emphasis on the measurement of analysis of

market to solve a particular company’s marketing problems in an

attempt to encompass the broad field of marketing.

In the view expressed by Green and Tull (1976, p. 3) marketing

research is a restless, changing, dynamic field concomitant with these

changes have been the gradual but pronounced shift in orientation of

firms from product to marketing. The marketing manager assumed a

wide range of responsibilities that have increased in complexity. Hence,

an ever increasing premium has been placed on making sound

marketing decision. In response to the requirement a formalized means

of acquiring information to assist in the making of marketing decision.

In response to this means is called marketing research. They defined

marketing research as “a systematic and objective search for and

analysis of information relevant to the identification and solution of any

problems in the field of marketing” they believed that marketing

research underline and permit the management decision making under

the four classes or conditions viz certainly with respect to each course of

action leading to a specific outcome, risk with respect to each action

leading to a set of possible outcomes and each outcomes given to a

particular course of actions.

Green and Tull are of the opinion that will have problems

whenever we have goals or objective to attain. When the problems

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contains significant unknown or risks or when he right course of action

is unclear, we must conduct marketing research, if we are to keep the

risk within tolerable limits and human behaviour and in the face of

complexity of marketing issues, the decision maker has a difficult role.

He must deal with the interplay of values, factors and non factors admist

he struggles of human and social values against machines and fair profit

demands. All these can be clarified sufficiently with the help of

marketing research.

2.1 What is Marketing

The term marketing has different definitions from different

authors, but all these definitions is aimed at finding out the needs of

customs and a way of satisfying them either collectively or individually.

Some of these definitions will be adopted in the course of this study.

According to Kotler and Armstrong (2008, p.29) defines

marketing as a social and managerial process by which individual and

organizations obtain what they need and want through creating and

exchanging value with others.

Marketing is also the process of planning and executing the

conception, pricing, promotion and distribution of ideas, goods and

services to create exchange and satisfy individual and organizational

objectives (IMA, 1985).

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 The process by which companies create values for customers and

build strong customer relationship in order to capture value from

customers in return.

It is also the management process responsible for identifying

anticipating and satisfying customers requirement profitably. (CIM,

2001).

Etzel, Walker, Stantion (2007, p.6) viewed marketing as a total

system of business activities designed to plan price, promote and

distribute want, satisfying products. To target marketers in order to

achieve organization objectives makers in order to achieve organization

objective.

2.2 What is Marketing Research

Marketing research also has different definitions from various

authors and groups. The American Marketing Association (AMA) has

defined marketing research as the function that link the consumers,

customers and public to identify and define marketing opportunities and

problems, generate, refine and evaluate marketing actions monitor

marketing performances and improve understanding of market as a

process.

Marketing research specifies the information required to address

these issues, design the method for collecting information, manages and

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implements the data collection process, analysis the results and

communicate the findings and their implications.

Marketing research is a systematic and objective study of

problems pertaining to the marketing of goods and services. It may be

emphasized that it is not restricted to any particular phase and aspects.

According to Mallantra (2008, p.7) defines marketing research as

the systematic and objective identification, collection, analysis,

dissemination and use of information for the purpose of improving

decision of problems and opportunities in marketing.

In the view of expressed by Ezendu (2005, p.1.) sees marketing

research as a systematic objective approach to the development and

provision of information for decision making regarding a specific

marketing problems. This definition has five key elements.

i. Marketing research is systematic, it is planned, well organized

process.

ii. The method of obtaining information is objective, the researcher

does not bics the information.

iii. The focus of marketing research is on helping markets make

sound decision.

iv. The information gathered through marketing research is intended

to help solve a specific problem generally, each research

project is conducted only once.

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 v. The marketing research process focuses on transmitting

information that can be used by managers in decision making.

According to Osuala (1988,p. 174) marketing research is a

systematic getter, recording and analysis of data about problems relating

to the marketing of goods and services. It may be undertaken by

impartial agencies or by business forms or their agent solution of

marketing problems.

Generally, marketing research consist of a formal procedure for

collecting and analyzing information which is normally used to help

solve on of a kind problems of special situations (AMA 1961).

Kramer (1961, p. 39) has this explanation to give about marketing

research and services industry. The factors other competition haven

been effecting not what percentage of service has been lost to

competition compared to some arbitrary base year but rather why and

how such losses can be prevented in the future. He believes that the

success or failure of the firm is the industry depends upon its ability to

forecast the nature of their services. Firms should state with marketing

research so as to determine the effect of influential work to change in

the nature and dimension of demand for service. If there is insufficient

demand for the services of a firm marketing research, studies should be

made to improve demand. He alleged that slack in the use of marketing

research in the service industry is because the concept of marketing

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management which recognized the user or buyer or service as the judge

and understanding of the factors that determines or influence his concept

of value is known to them. With the help of marketing research, the

services industries are able to identify exactly what the customers wants

and needs. Following this therefore, the service firms trail their product

(services) in such a way that it will enable it increase in business size

and profits.

Ejiofor (1985, p. 53) postulated that marketing research is a tool

commonly used for collecting and analyzing an up to date information

capable to reducing the uncertainties inherent in management decision

making. It helps to substantiate or refute the axioms and assumptions of

theory.

He also opined that certain hurdles often see in the way of the

business, scientist attempting to apply the scientific method to finding

solutions to specific business problems.

According to him, these hurdles are:

a. Lack of theoretical base or hypothesis to support the research

investigation with the result that the research is forced to

approximate every specification of his empirical indication which

may be detective.

15
b. Poor administrative and research climate which sterms from

factors or attitudes that would more way or the other prevent a

researcher from actually accomplishing the goals of his research.

c. Due to inadequate or lack of comprehensive and up to date

statistical document. Business books, bibliographies in business,

there is always the problems of duplication of effort and in most

cases the research does not know where to begin and where to

end.

d. There exist also the problems of analysis and difficulty on

obtaining accurate measurement instruments. According to

Bearden, Ingram and Iaforge (2001, p. 121) believes that

marketing research is used in planning to identify the needs of

product users and in problems solving to evaluate the types of

product to offer. They opine that the overall objectives of

marketing research is to reduce risk in decision making by

helping management understand its uncertain and changing

market place and the consumer and competitors that makes up it

markets. The marketing research process involves the collection,

interpretation and use of data to make decision such

understanding make a firm better able to provide product and

services that meet customers expectation and needs. Marketing

research enhance communication between a firm and its market

16
 with the aim of improving managerial decision making. The aim

of the research is not to confirm that decision already made are

correct, but to identify alternative choice and to support the

decision making process.

2.2.1 Types of Marketing Research

Exploratory Research

This is the type of research in which the major emphasis on

gaining ideas and insight. It is particularly helpful in breaking broad

vague problem statement into smaller more precise sub-problems

statements.

This aspect of the research work is very important. It is important

because it exposes the gap that exist in the previous studies which the

current study intend to fill. There is no way that any meaningful

research can be carried out without a thorough review of existing

literature, as understanding perhaps may have made. Anikpo (1986) to

opine that the success of any research endeavor is directly related to the

level of rigorous exercise during literature review.

Casual research is a type of research in which the major emphasis

is one determining causes of effect relationship.

2.2.2 Classification of Marketing Research

Marketing research is classified into the following

1. Problem Identification Research

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 Research that is undertaken to help identifying a problem that are

perhaps nor apparent on the surface and yet exist or are likely to arise in

the future. According to Osuala (1988, p. 174) examples of problem

identification research include marketing potentials, market share, brand

or company image, market characteristics, share analysis short range

forecasting, long-range forecasting and business trend research.

Problem solving research once a problem or opportunity has been

identified, problem solving research is undertaken to arrive at a solution.

The findings of problem solving research are use in making decision

that will solve specific marketing problems. Most companies conduct

problems solving research.

Issues addressed to problems solving research includes

segmentation, product, promotion and distribution research.

2.2.3 Functions of Marketing Research

Marketing research has the prime function of reducing risk, the

greater their risk the more justification exist for investing in the

objectives and reliable information about specific aspect of marketing is

committed to the fundamental principles of utility and as two American

researcher (CIM, 2001) and (IMA 1985) have emphasized, there is no

point in doing research if the information gathered is defective and

could not lead to doing anything differently when the information is

defective, the resultant finding is not in the position to fufil its purpose
18
probably because of certain inadequacies, brases in sampling, non-

sampling errors. And data collection e.t.c. the effort could be regarded

as an exercise in futility.

However, the American marketing association Etzel, Walker and

Stantion (2007, p. 6) in their definition emphasis that the function of

marketing so that it can identify and react to marketing opportunities

and problems.

Marketing research has the function of assessing the information

needed to provide management with relevant, accurate, reliable, valid,

current and actionable information.

2.2.4 Objectives of Marketing Research

Every company need marketing research both profit and non-

profit organization, therefore they must have an objective while

conducting research objectives will be gathered.

According to Churchill and Brown (2007) we mean all the

individuals and objects that meet certain requirement of membership in

the overall group.

The following of conducting marketing objectives.

i. To identify target customers

ii. To alter the public on the service rendered by company

iii. To win competitors, remain on top and gain more prospects for

patronage.
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 iv. To sell off the company’s product and service.

v. To provide regular information on uncontrollable external

variables such as the general state of the economy, government

policies, broad socio-cultural trends.

2.2.5 Importance of Marketing Research

In the view of Lewis (1982, p. 14) firms are increasingly

recognizing the importance of most marketing research because the

environment of most firms is changing fast and becoming highly

competitive. The buyers fast and becoming more sophisticated and

discriminating. These conditions are making it difficult for firms to

survive and are compelling them to be more discerning in the facts data

on which they base decision that affect their customers patronage. There

is challenge not only to satisfy customers needs/want but also to satisfy

them more than the other competitors. Any business hoping to achieve

this must improve on the quality of data that inform its decision. This

will help to reduce uncertainties surrounding marketing decisions.

2.2.6 Marketing Mix in Marketing Research

Marketing mix is the set of controllable tactical marketing tools,

products, price , place and promotion that the firm blends to produce the

response of offer to services it wants in the target market. According to

Wilson (1999, p. 2). The marketing mix in marketing research includes

the following:
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Product: The goods and services combination the company offers to the

target market.

Price: The amount of money customers have to pay for a certain service

or product. The overall pricing strategy that communicates information

about the services or product.

Place: This includes the company activities that make the product

available to target consumers. It is the overall location strategy of the

firm in the town, street, express, schools and rural areas.

Promotion: This is the message and media for communication to

customers about the services and developing their understanding of what

to expect. It is also the activities that communicate the merit of the

product or services and persuade target customers to patronize.

People: This is the caliber for employees publics and the services

expectation that is needed to deliver have implication for selecting

recruiting, training development and rewards.

Process: How customers are serviced and the range of support service

available to them. Have the speed and potential of the services provided,

are important and critical factors to the success.

Premises: The overall arrangement of hierarchy of services and product

together with other factors needed to be consistent with the place.

Product Price Promotion Place

Service List Price Advertising Channels

21
Variety Discounts Personal Selling Transportation

Quality Allowance Sales Promotion Logistics

Design Payment Period Public Relation Coverage

Features Credit Terms Assortments

Brand name Location

Packaging Inventory

2.2.7 In the view of expressed by Green (1978, p.3). The success of

marketing research depends upon the cooperation of the public.

Unprofessional and unethical marketing research actions may seriously

jeopardize the public’s willingness to cooperate in research. It is

therefore public towards marketing research. There are three major

identified threats to marketing research by George Day).

i. decisive interviewing

ii. Lack of consideration and abuse of respondents

iii. The use of marketing research as a sales policy. Of these three, it

was found that the third one is perhaps the greatest threat. If

not checked, it is likely to erode the trust of consumers

respondents. The interest of the marketing research will suffer

if it is used to camouflage sales calls will not like to cooperate

in legitimate research

2.2.8 Roles of Marketing Research

22
 The nature and the role of marketing research can be better

understood in light of the basic marketing paradigm.

Anonymous S.C (2007). Emphasis the marketing on the

identification and satisfaction of customers needs. In order to determine

customers and programmes aimed at satisfies and programmes aimed at

satisfying those needs information managers needs information. They

need information about customers competitors and other forces in the

market place. In recent years, many factors have increased the need for

more and better information. As industries have because national and

international scope. The need for information on larger and more distant

markets has increased.

As consumers have become more affluent and sophisticated,

marketing managers need better information on how they will respond

to services competition has become more intense managers need

information on the effectiveness of their marketing tools. As the

environment changes more rapidly marketing managers need more

timely information.

23
 CHAPTER THREE

RESEARCH METHOD

3.1 Research Design

According to Churchill and Brown (2007), a research design is

simply the framework or olan for a study used as a guide in collecting

and analyzing data. It is the blueprint that is followed in completing a

study.

In most cases, according to Onodugo et.al (2010) it is expected

that one should state the expedient in that, it helps to provide the context

in which such a study will be appraised, having known what research

design entails its purpose and expectations.

It is important to define the research design is. According to Kent

(2007) is to ensure that the evidence to be obtained will enable the

researcher to address the objectives for which the researcher is to be

undertaken.

3.2 Population of the Study

The population of this study shall be made up of all the operators

and owners of hotels in Auchi, together with all the workers which

makes a total of 200 representing 100%.

3.3 Sample/Sampling Techniques

This researcher shall make use of sample whose size shall be 130

representing 10%.
24
 The sample random technique shall be used by the researcher to

compose the sample.

3.4 Source & Method of Data Collection

The data used for this research were gathered from both primary

and secondary source with much emphasis on primary data. This is so

because this part helped the researcher to get first hand information from

the customers.

Primary Data

These are data or relevant information which generated purpose and

specifically for this study.

Secondary Data

These are source used in collecting secondary data. They include several

literatures, publications and conducted research work that might help in

the present data.

3.5 Validation of Instrument

It is used in this study where the questionnaire surveys and

personal or face to face interview observation interviews and so on.

3.6 Method of Data Analysis

The researcher shall make use of simple percentage and tabular

presentation of result to analyse the various questions and chi-square

test to analyse and test the hypothesis. This will enable the researcher to

accept or reject the null or alternative hypothesis. It is used to determine

25
the relationship that exist between variable i.e. dependent and

independent variable. The formula of chi-square is:

X2 =  (0-e)2
e

where 0 is observed frequency

e is expected frequency

The degree of freedom that is k-I for one test and (k-i) (r-i) for

two ways test is determined if the value was obtained by chance.

3.7 Cut Off Point/Decision Rule

With degree of freedom of k-I and the critical region or level of

significance of 0.05, if the calculated X2 the null hypothesis will be

rejected while on the other hand if the calculated X 2 is less than the table

value the null hypothesis will be accepted.

26
 CHAPTER FOUR

4.0 DATA PRESENTATION, ANALYSIS AND

INTERPRETATION

4.1 Data Presentation

This research work is undertaken to determine the hospitality

industry in Auchi.

In the course of this research work, questionnaires were

administered to people as to gather information about hospitality

industry in Auchi and also Hotel work 30 copies of the questionnaire

which represent 100% were administered to people . 20 questionnaire

representing 67% were retrieved and 33% were not retrieved, since the

numbers of retrieved questionnaire were gathered that the number not

retrieved then the research decide to continue with the study by the data

gathered for the retrieved questions.

4.2 Data Analysis

Table 4.1: Sex of Respondents

Sex Distribution of Percentage

Respondent
Female 15 75%
Male 5 25%
Total 20 100%
Source: Field Survey, 2014.

From the table above, respondent representing 75% of the total

population are female while 5 respondent representing 25% were male.

27
Table 4.2: Status of Respondents

Status Distribution of Percentage

Respondent
Single 12 60%
Married 8 40%
Total 20 100%
Source: Field Survey, 2014.

From the above table shows that 12 respondent representing 60%

of the total population are single while the other 8 respondent

representing 40%.

Table 4.3: Qualification Background of Respondents

Sex Distribution of Percentage

Respondent
Primary education 8 40%
Secondary 7 35%
education
Post secondary 5 25%
education
Total 20 100%
Source: Field Survey, 2014.

From the above table shows that 8 respondent representing 40%

of the total population are primary education while 7 respondent

representing 35% were secondary education the remaining respondent

representing 25% were post secondary education.

Table 4.4: Age Distribution of Respondents

Age Distribution of Percentage

Respondent
18-25 8 40%
26-35 5 25%
36-45 5 25%
28
 46 and above 2 10%
Total 20 100%
Source: Field Survey, 2014.

From the above table shows that 8 respondent representing 40%

of the total population are in the age range of 18-25, 5 respondent

representing 25% are of 26-35, 5 respondent representing 25% are in the

range of 36-45 and the reimagining 2 are in the range of 46 and above

representing 10%.

Question 1: Are you aware of hospitality industry in Auchi?

Table 4.5

Option Distribution of Percentage

Respondent
Yes 18 90%
No 2 10%
Total 20 100%
Source: Field Survey, 2014.

From the above table, 18 respondent representing 90% of the total

population agreed that they know about hospitality industry why the

remaining 2 did not agree.

Question 2: If yes, what type are you aware of?

Table 4.6

Option Distribution of Percentage

Respondent
Uyi Grand Hotel 13 65%
Spetco gee 4 20%
Garden
Yak Hotel 3 15%
Total 20 100%
29
Source: Field Survey, 2014.

From the above table show that 13 respondent representing 65%

of the total population that patronized the organization, while 4

respondent representing 20% patronized within and the remaining 3

respondent representing 15% patronized both.

Question 3: How do you get to know about the hotel?

Table 4.5

Option Distribution of Percentage

Respondent
Friend 3 15%
Advertisement 15 75%
Magazine 2 10%
Internet browsing - 0
Total 20 100%
Source: Field Survey, 2014.

From the above table shows that 3 respondent representing 15%

know about the hotel through friends while 15 respondent representing

75% know about the hotel through advertisement, the remaining 2

representing 10% know about it through magazine.

Question 4: Have you patronized their services?

Table 4.5

Option Distribution of Percentage

Respondent
Yes 15 75%
No 5 25%
Total 20 100%
Source: Field Survey, 2014.

30
 From the table above, 15 respondent representing 75% of the

table population agreed that they patronized the hotel while the

remaining 2 did not agreed.

Question 6: How long have you been engaged in their services?

Table 4.6

Option Distribution of Percentage

Respondent
Six months ago 10 50%
A year ago 5 25%
Two years ago 5 25%
Total 20 100%
Source: Field Survey, 2014.

From the table above shows that 10 respondent representing 50%

have been patronizing the hotel since six months ago while 5 respondent

representing a year ago, the remaining 5 were patronizing since two

years.

Question 7: Have you experienced any kind of challenges or

difficulty in patronizing the hotel?

Table 4.7

Option Distribution of Percentage

Respondent
Yes 12 60%
No 5 25%
Sometime 3 15%
Total 20 100%
Source: Field Survey, 2014.

31
 From the above table, 12 respondent representing 60% of the

population agreed that they experienced challenge patronizing while 5

respondent are presenting 25% disagreed and the remaining 3

respondent representing 15% said sometimes.

Question 8: In spite of the problem, you engage in contracting in the

service ?

Table 4.8

Option Distribution of Percentage

Respondent
Yes 16 80%
No 4 20%
Total 20 100%
Source: Field Survey, 2014.

From the above table, 16 respondent representing 80% of

population agreed that they will engage in patronizing their services

despite the problem encountered while 4 respondent representing 20%

disagreed.

Question 9: How do you find their services in terms of reliability?

Table 4.9

Option Distribution of Percentage

Respondent
Very good 12 60%
Good 5 25%
Fair 3 15%
Total 20 100%
Source: Field Survey, 2014.

32
 From the table above table shows that 12 respondent representing

60% said they find hotel reliable and 5 respondent representing 25 said

good while the remaining 3 respondent representing 15% said fair.

Question 10: Do you think any organization as well as individuals

are patronizing their services?

Table 4.10

Option Distribution of Percentage

Respondent
Yes 17 85%
No 3 15%
Total 20 100%
Source: Field Survey, 2014.

From the above table indicates that 17 respondent representing

85% of the total population agreed that individual as well as embracing

they patronage and 3 respondent representing 15 said not agreed.

Question 11: How do you rate the services of the hotel generally?

Table 4.11

Option Distribution of Percentage

Respondent
Very 14 70%
Good 5 25%
Bad 1 5%
Total 20 100%
Source: Field Survey, 2014.

From the table above indicates that 14 respondent representing 70

of the total population rate the hotel as a very good one while 5

representing 25% rate it as a good one and the remaining 1 respondent

33
representing 5% of the total population rate the hotel generally as a bad

one.

Question 12: Do you think Uyi Grand Hotel is good compared to

other hotels?

Table 4.5

Option Distribution of Percentage

Respondent
Yes 16 80%
No 4 20%
Total 20 100%
Source: Field Survey, 2014.

From the above table indicates that 16 respondent representing

80% agreed that uyi grand hotel is good compared to other hotels in

Auchi while 4 respondent representing 20% disagreed.

Question 13: Have you encourage anyone to patronize Uyi Grand

Hotel?

Table 4.13

Option Distribution of Percentage

Respondent
Yes 14 70%
No 6 30%
Total 20 100%
Source: Field Survey, 2014.

From the above table 14 respondent representing 70% agreed to

encourage everyone to patronize uyi grand hotel while 6 respondent

representing 30% discourage to patronize them.

34
Question 14:Do promotional strategy effect their management?

Table 4.5

Option Distribution of Percentage

Respondent
Yes 19 95%
No 1 5%
Total 20 100%
Source: Field Survey, 2014.

From the above table 19 respondent representing 95% agreed that

promotional strategy effect their management while respondent of 1

representing 5% disagreed.

Question 15:Do promotional strategies activities lead to increase in

the awareness of their services?

Table 4.15

Option Distribution of Percentage

Respondent
Yes 17 85%
No 3 15%
Total 20 100%
Source: Field Survey, 2014.

From the above table, 17 respondent representing 85% agreed that

promotional strategies activities leads to increase in awareness of their

services while 3 respondent representing 15% disagreed that

promotional strategies activities does not lead to increase in awareness

of their services.

35
Question 16:Do promotion activities leads to increase in the

organization patronage?

Table 4.16

Option Distribution of Percentage

Respondent
Yes 15 75%
No 5 25%
Total 20 100%
Source: Field Survey, 2014.

From the above table, 15 respondent representing 75% agreed that

promotion activities leads to increase in people patronize while 5

respondent representing 25% disagreed.

4.3 Tests for Hypotheses

Hypothesis I

Ho: Promotional strategies do not effect management of Uyi Grand

Hotel.

Hi: Promotional strategies do not effect management of Uyi Grand

Hotel.

Table 4.17

Option Distribution of Percentage

Respondent
Yes 19 95%
No 1 5%
Total 20 100%
Source: Field Survey, 2014.

Expected value = 20 = 10
20
36
Significant table

Option 0 e 0-e (0-e)2 (0-e)2/e

Yes 19 10 9 8.1 8.1
No 1 10 9 -8.1 8.1

X2 = e (0-e)2 = 16.2
E
Degree of feedom

(r-i (r-i)

(2-1)(2-1)

1x1 =1

Level of significance = 50% or 0.05.

Table value 3.84

X2 16.2

Since the calculated X2 is greater than the calculated table value, we

reject the null hypothesis (ho) which states that promotional strategies

so not affect the effective management of uyi grand hotel or survey

hospitality in Auchi and accept the alternative hypothesis (hi) which

states that promotional strategies affect the effective management of the

hotel or hospitality industry.

Hypothesis II

37
Ho: Promotional strategies activities lead to increase in awareness of

their services. Hi: Promotional strategies activities do not lead to

increase in awareness of their services.

Table 4.18

Option Distribution of Percentage

Respondent
Yes 17 85%
No 3 15%
Total 20 100%
Source: Field Survey, 2014.

Expected value = 20 = 10
20

Significant table

Option 0 e 0-e (0-e)2 (0-e)2/e

Yes 17 10 7 49 4-9
No 3 10 7 -49 4-9

X2 = e (0-e)2 = 9.8
E
Degree of feedom

(r-i (r-i)

(2-1)(2-1)

1x1 =1

Level of significance = 50% or 0.05.

Table value 3.84

X2 9.8

38
Since the calculated X2 is greater than the calculated table value, we

reject the null hypothesis (ho) which states that promotional strategies

activities does not lead to increase in awareness of their services and

accept the alternative hypothesis (hi) which states that promotional

strategies activities lead to increase in awareness of their services.

Hypothesis III

Ho: Promotional strategies activities does not lead to increase student

patronage. Hi: Promotional strategies activities lead to increase student

patronage.

Table 4.19

Option Distribution of Percentage

Respondent
Yes 15 75%
No 5 25%
Total 20 100%
Source: Field Survey, 2014.

Expected value = 20 = 10
20

Significant table

Option 0 e 0-e (0-e)2 (0-e)2/e

Yes 15 10 5 25 2-5
No 5 10 -5 -25 2-5

X2 = e (0-e)2 = 5.0
E
Degree of feedom

(r-i (r-i)
39
(2-1)(2-1)

1x1 =1

Level of significance = 50% or 0.05.

Table value 3.84

X2 5.0

Since the calculated X2 is greater than the calculated table value, we

reject the null hypothesis (ho) which states that promotional strategies

activities does not lead to increase student patronage and accept the

alternative hypothesis (hi) which states that promotional strategies

activities lead to increase student patronage.

4.4 Discussion of findings

From the research and tabular analysis of findings, the following

were discovered. That 13 respondent representing 65% agreed that they

patronize hotels research in hospitability industry globally and 4

respondent representing 15% said they patronize both global and within.

It was also discovered through friends as 3 respondent representing 15%

said through friends and 5 representing 75% said through advertisement.

40
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Summary of Findings

This chapter presents a summary of the findings, conclusion and

recommendation. After a careful study of the marketing research

activities in hospitality industry in Auchi. The researcher came out with

the following findings.

a. The hospitality industry at one time or the other engaged in

marketing research activities.

b. That organization does not have a marketing research department

because of the cost involved.

c. The hospitality industry cannot do without marketing research as

it help them to identify the need of this prospects.

d. That survey hospitality industry has not fully identified the need

for establishing a research department in the organization.

e. The hospitality industry and marketing research department will

increase the profit level in the organization.

5.2 Conclusion

Marketing research which is a systematic design, collection,

analysis and reporting a data and finding that are relevant to a specific

marketing situation facing any organization is very important in the life

41
of any organization is very important in the life of any business

organization. marketing research is carried out for numerous marketing

problems especially in sales/marketing advertising research and product

research. The motive behind investing in marketing research are made to

identify customers needs, maximize turnover/profit and to keep abreast

of marketing chase. Thus marketing research has a postiled significant

impact on the profit or loss of the business organization. marketing

research data are collected from data combination of primary and

secondary sources and these data are applied in various ways like for

decision making/identification of marketing opportunism and

determination of the price of product and searches. Any business

organization do not have there reasons which induce cost factors,

company policy and more difficult use of marketing research

consultancy firms.

Marketing research has help most business organization in

maximizing profit/identifying customers need/product development,

building company image and reducing selling/production cost among

others. Few business organization are yet to see the essence of

marketing research because of the cost involved and the subjectivity and

the inconsistencies in the information do not engage in marketing

research are prone to suffer losses ranging.

5.3 Recommendations
42
 Having carefully carried out the research on marketing research as

a tool for increased profitability using hospitality industry in Auchi as a

study, with which the recommendations are made.

The survey hospitality industry should strike to increase the

awareness of the company or organization to the public members of

policy holders and also a check and maintain the profit laced of the

organization and also customers satisfaction.

They should utilize the various techniques involved in research

activities like survey and other tools available to them in performing the

activities and emphasis should in performing the activity and housed to

placed on total marketing orientation for survey of hospitality industry.

Management must understand the modern marketing philosophy

and the role it could play for a firm to remain competitive. More budgets

should be directed to the appropriate department so as to conduct a

result oriented research on consumers need in order to enable the

organization to develop a service offering that could appeal to the target

market.

The researcher could cover more because of circumstances

beyond its control, therefore, further research into this topic can be

extended to the areas of service industry or manufacturing industry.

Further study can be conducted on this topic to find out how to calculate

the actual profit in figural divided sorely as a result of marketing

43
research activities and to find out the other forces that help marketing

research activities as a tool for increased profitability.

5.4 Area of Further Research

More so that interested researcher should conduct in depth study

due to the fact that the researcher study was only limited to the

hospitality industry in Auchi.

Therefore this may not adequately represent the performance of

all such hospitality industry and hotel business.

44
 APPENDIX II

Questionnaire

The questionnaire is designed to help the researcher make an

assessment of increased profitability in service industry.

i. Sex: Male [ ] Female [ ]

ii. Marital status: Single [ ] Married [ ]

iii. Educational qualification: Primary education [ ]

Secondary education[ ] Post secondary education [

iv. Age: 18-25 years [ ] 26-35 years [ ] 36-

45years [ ] 46 and above[ ]

1. Are you aware of hospitality industry in Auchi?

Yes [ ] No [ ]

2. If yes, what type are you aware of?

Uyi Grand hotel [ ] Spetco Gee gardent [ ]

Yak hotel [ ]

3. How did you get to know about the hotel?

Friends [ ] Internet browsing [ ] Magazine [

] Advertisement [ ]

4. Have you patronized their services?

Yes [ ] No [ ]

45
5. Have you experienced any kind of challenges or difficulty in

patronizing the hotel?

Yes [ ] No [ ]

6. How long have you being engaged in their services?

Six month ago [ ] A year ago [ ] Two years ago

[ ]

7. Inspite the problems, will you engage in contracting in their

services?

Yes [ ] No [ ]

8. How do you find their services in terms of reliability?

Very good [ ] Good [ ] Bad [ ]

9. Do you think many organization as well as individuals are

patronizing their services ?

Yes [ ] No [ ]

10.How do you rate the services in the hotel generally?

Very [ ] Good [ ] Bad [ ]

11.Do you think Uyi grand hotel in Auchi is good compared to

others?

Yes [ ] No [ ]

12. Can you encourage any one to patronize the services of Uyi

Grand Hotel?

Yes [ ] No [ ]
46
13.Do promotional strategy effect their management?

Yes [ ] No [ ]

14.Do promotional strategy activities leads to increase in the

awareness of their services?

Yes [ ] No [ ]

15.Do promotional activities leads to increase in the organization or

people patronage?

Yes [ ] No [ ]

47