Effect of Positioning Strategies on Growth of Hotels: In Case of Star Rated Hotels in Addis Ababa City
No Thumbnail Available
Date
2022-12-04
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
AAU
Abstract
Due to the demand for customers, businesses position themselves in different ways to penetrate
the market share. This study aimed to be investigating the effect of positioning strategies on the
growth of the hotel sector based on, product differentiation strategy, price positioning, and
information technology positioning and their contribution to the growth of the hotel sector. A
cross-sectional explanatory design was used. The target population in this study was 132 staffs
of 44 four and three started rated hotels found in Yeka and Bole Sub Cities in Addis Ababa. The
study was conducted in the context of the start rated hotels in Ethiopia. Purposive sampling was
used to select the hotels and systematic sampling was conducted to select employees. Both
primary and secondary data were used. Primary data were collected using semi-structured
questionnaires and an interview. Descriptive statistics were used to summarize the properties of
the mass data. Inferential statistics were derived using Pearson’s correlation and multiple
regression. Thus, this revealed that product differentiation strategy, price positioning, and
information technology positioning have a positive significant effect on the growth of the hotel.
Accordingly, this study concluded that positioning strategies affects the growth of the hotel
sector. Thus, it suggests that it better to develop positioning strategies that would give them an
edge in the market over the competitors to enable them to be competitive and grow also investors
would be able to make decisions concerning of investing on the sector also it will be useful for
further research.