SCHOOL OF GRADUATE STUDIES

DEPARTMENT OF BUSINESS ADMINSTRATION

THE EFFECT OF E-MARKETING ON THE HOTEL PERFORMANCE: THE CASE OF

STAR RELATED HOTELS IN ADDIS ABABA CITY

GETNET MUHABAW HASSEN

Thesis Proposal submitted to Department of Business Administration GAGE University College,

in Partial fulfillment of the Requirements for the Award of Master’s Degree in Business
Administration (MBA)

By: Getrnet Muhabaw

Advisor: Taddese. (D.r)

June, 2022

Addis Ababa, Ethiopia

Declaration
I, the undersigned, declare that this work titled “The Effect of E- marketing on the Hotel
Performance: the case of Star Related Hotels in Addis Ababa City” will be my own effort and
study. I will prepare it independently except with the guidance and suggestion of the advisor
Tadese (PhD). This thesis proposal is used to prepare final thesis paper that will be submitted for
in partial fulfillment of the requirement for the Master of Business Administration (MBA)
degree.

By: Getnet Muhabaw

ID NO. MBA 496/2021

Signature ………………………………….. Date ………………………………..

Confirmed by advisor:

Signature

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 Acknowledgments
First and foremost, I would like to give my thanks for the Almighty God ALLAH, for the gift of
life and giving me full of strength to be the winner from the challenge of this world. My
gratitude also goes to Gage University College instructors and specially my advisor Dr.
Tadese… for his advice and support to prepare this proposal and my friend Amdemikael for his
help during the entire learning process.

Last but not least, I would like to express my sincere gratitude and gratefulness to my families
for their assistance, time, and patience by understand me throughout the last two years.

I THANK HEARTLY YOU ALL.

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Contents
Declaration...................................................................................................................................................i
Acknowledgments.......................................................................................................................................ii
ABSTRACT................................................................................................................................................0
CHAPTER ONE..........................................................................................................................................1
1. Introduction.........................................................................................................................................1
1.1. Background of the Study......................................................................................................................1
1.2. Statement of the Problem......................................................................................................................3
1.3. Objectives of the Study.........................................................................................................................5
1.3.1. General Objective..............................................................................................................................5
1.3.2. Specific Objectives......................................................................................................................5
1.4. Research Questions..............................................................................................................................5
1.5. Significance of the Study......................................................................................................................6
1.6. Scope of the Study................................................................................................................................6
1.6.1. Geographical Scope...........................................................................................................................6
1.6.2. Content Scope....................................................................................................................................6
1.6.3. Time Scope........................................................................................................................................6
1.7. Limitations of the Study.......................................................................................................................7
1.8. Organization of the Study.....................................................................................................................7
Chapter Two: Literature Review.................................................................................................................8
2.1. Introduction..........................................................................................................................................8
2.2. Theoretical Review...............................................................................................................................8
2.2.1. Fundamental Characteristics of Internet Marketing...........................................................................9
2.2.2. Hotel Services Practice in Addis Ababa City.....................................................................................9
2.2.3. Electronic Marketing and Modern Hotel Industry...........................................................................11
2.2.4. Electronic Marketing Platforms.......................................................................................................12
2.2.4.1. Internet..........................................................................................................................................12
2.2.4.2. Internet Marketing through Websites............................................................................................12
2.2.4.3. Search Engine Marketing..............................................................................................................13
2.2.4.4. Internet Marketing via E-mail.......................................................................................................14
2.2.4.5. Internet Marketing through Social Networks................................................................................15
2.2.4.6. Mobile Phone Marketing..............................................................................................................17

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2.2.5. Hotel Performance...........................................................................................................................17
2.2.6. Effect of Electronic Marketing on Performance..............................................................................19
2.3. Empirical Review...............................................................................................................................20
2.4. Conceptual Framework of the study...................................................................................................22
CHAPTER THREE...................................................................................................................................23
RESEARCH DESIGN AND METHODOLOGY......................................................................................23
3.1. Introduction........................................................................................................................................23
3.2. Research Approach.............................................................................................................................23
3.3. Research Design.................................................................................................................................23
3.4. Population and Sample of the Study...................................................................................................24
3.5. Data type and Sources........................................................................................................................24
3.6. Methods of data collection..................................................................................................................25
3.6.1. Sampling Technique........................................................................................................................25
3.6.2. Instruments and Data Collection Techniques...................................................................................25
3.6.3. Procedures.......................................................................................................................................26
3.7. Method of Data Analysis and presentation.........................................................................................26
3.8. Reliability and Validity of the Research.............................................................................................26
3.8.1. Reliability........................................................................................................................................26
3.8.2. Validity............................................................................................................................................26
3.9. Ethical considerations.........................................................................................................................27
References.................................................................................................................................................28
Appendix I: Research questionnaire..........................................................................................................51
Appendix II: TIME FRAME.....................................................................................................................55
Appendix III: PROPOSED BUDGET..............................................................................................................56

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 ABSTRACT
The hotel industry contributes a lot for economic development. Especially developing countries
give more focus for the industry. The purpose of the proposed study will be to examine the effect
of e-marketing on the hotel performance by focusing star related hotels in Addis Ababa city. The
study will strive to investigate the practical implementations of electronic marketing.

This proposal includes three parts namely, introduction part, literature review and research
methodology. The introduction part includes the general information about e-marketing, the
reason and objectives of the study and the methods in which the proposed study will conduct.
The proposed study will collect data from a sample of 56 management staff in Addis Ababa city
through the questionnaire. A purposive sampling technique will be used to select sample
respondents. Both quantitative and qualitative approach will be used for the research design.
From the information’s disused under the literature review, application of e-marketing is become
one of the marketing mix strategies. In addition e- marketing is a recent phenomenon in Ethiopia
and it's not fully utilized by Hotel marketing.

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 CHAPTER ONE
1. Introduction
This chapter deals about the background of the study, statement of the problem; the general and
specific objectives of the study; research questions or hypothesis; significance of the study ;
scope of the study; limitations of the study operational definition of key terms, and organization
of the study.

1.1. Background of the Study

The rapid change in technology, products, processes, severe competition, and trends towards
globalization, force organizations to do business in new ways in order to survive and be
successful. One of these new trends is e-commerce, a form of entrepreneurial activity, which
transforms the manner in which firms operate using the Internet. The new technology has been
used mostly as a tool to deliver value to the customer as a way to increase the core competencies
Electronic marketing (e-marketing) is one of the fastest-growing forms of digital marketing in
both developed and developing countries (Kalu, Nto, & Nwadighoha, 2017). The best
phenomena that show how e-marketing is important is the time during the outbreak of COVID-
19 pandemic, in which governments mandated social distance measures to slow the spread of the
virus, catalyzing the use of digital technology for the virtual delivery of school classes and
remote working (Brynjolfson et al., 2020; Prasad et al., 2020; Willcocks, 2020).

E-Commerce can be viewed from different perspectives. According to Turban et al (2008), e-

commerce can be defined from different perspectives which include but not limited to: From a
communications perspective, e-commerce is perceived as the delivery of information, products
and services and/or payments over varied communication lines i.e. telephones, computer
networks, or other electronic channels, from a business perspective, e-commerce is perceived
as the application of technological applications towards the automation of business transactions
and flow of work, from a service perspective, e-commerce is perceived as a tool that caters for
consumers, management of firms to reduce service costs in an effort to improve quality of goods
and foster the speed of delivering services, from an online perspective, e-commerce makes
possible an enabling atmosphere for products transaction, services and information via the
internet and other services that are available online.

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From the definitions above we can understand that, e-marketing especially internet technologies
now essentially changed the way every marketing enterprise can be exchange value in real-time
along with being customized for every customers. Specially, for hotel sectors, digital Marketing
become one of the key focus areas, for businesses all over the world it used as a mode of
communication and has evolved not just into another source of additional revenue but most
importantly to develop and maintain long-term relationships with the various parties in the
market to improve overall performance and to take competitive advantage.

The function of hotel marketing is to test the opportunities and conditions for placement of
existing and future services, and sales arrangement, by using the most powerful and most
effective internet marketing activities, which can improve sales and attract new customers,
include, internet marketing through E-mail, social networks, hotel website and mobile phone are
fundamental activities in the marketing strategies of the hotel sector. Since, practically e-
marketing focus on that the use of electronic data and applications for planning and executing the
conception, distribution, promotion, and pricing of ideas, goods, and services to create exchanges
that satisfy individual and organizational objectives (Unkovic, S., Zecevic, B. 2011). However,
developing countries have fallen behind in digital marketing compared to that of developed
countries because of inefficient use of related knowledge, lack of investment within firms to
acquire technology, lack of promotion policies that develop these technological areas, no
security, and high costs of importing technology. Developing countries have low-speed internet
connections, cyber-crime, over regulations of business by government, high illiteracy to digital
marketing application or low level of information and communication technology development
(Arjinder and Gurveen, 2017). Through electronic marketing tools, hotel operations can have
access to more mass of people faster with less cost. Dilek Kekec M and Lütfi A. (2012)

Since Ethiopia is also one of the developing countries, the implementations and practice of e-
marketing is still under progress. Despite shortage of studies on effect of e-commerce on hotel
industries in Ethiopia, there are some studies on implementation of e-commerce challenge and
opportunities. Assegid A. and Apar S. (2019) who published a journal on “E-Marketing
Adoption: An Overview from Ethiopian Tourism Businesses” found that most tourism
businesses of Ethiopia have embarked on internet adoption as a precursor to e-marketing. This
study also revealed that, the e-marketing implementation on truism sector is seem to stick to

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websites, email and social media marketing approaches to promote, sell and interact with their
prospective customers and because of that the diffusion of e-marketing were lagging behind.
Fantahun Teshome (2016), on the other hand revealed that despite the implementation of e-
marketing on business surrounded by different challenges in Ethiopia, there are also bright future
because of recent developments in e-marketing technologies and positive competition on
customers service through e-banking between different private banks as well government owned
Commercial Bank of Ethiopia that will help other business to adopt e-commerce.

Ethiopian business sectors especially hotels are not fully utilizing its capacities to introduce e-
marketing to be competitive internationally and to exploit the benefit it offers. Most of Ethiopian
hotels general managers and Marketing managers overlooked the benefit of internet marketing to
develop new target markets and to deprive strategy hence only few of the hotels have utilized the
Internet to attract potential target market. Rather they preferred to clutter with newspapers, TV,
radio etc. According to 2013 report of MOCT, over 90% of the guests of hotels in Ethiopia are
foreign tourists (Tourism Statistics Bulletin 2009-2012, 2013). Empirical Study conducted by
(Sisay, 2016) suggested that e-marketing and hotel performance in star hotels would be strongly
affected by level of information. Some star hotels tried to use web site and Facebook to advert
their service, but they lack to optimize other e-marketing options such as email, other social
Medias, phone SMS and other options. Generally these situations call for better understanding by
the researchers. Therefore, the study will evaluate and reveal the actual effect of electronic
marketing on overall hotel performance and specifically star related hotels in Addis Ababa city
and will fill theoretical and practical gaps on the sector.

1.2. Statement of the Problem

According to the World Tourism Institution (2008: 1) “the purpose of e-marketing is to exploit
the internet and other forms of electronic communication to communicate with target markets in
the most cost-effective ways, and to enable joint working with partner organizations with which
there is a common interest". Therefore, the increasing presence of the Internet in daily lives has
resulted in the Internet an essential media in marketing communication. To gain competitive
advantage in the demanding tourist market, it is important nowadays for a hotel company to have
its own website, promote its products through social networks and mobile applications, use e-
mail as a channel of communication with its business partners and customers, and apply all

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available information-communication technology (ICT). It needs to provide all information for
potential clients in one place at any time of day, from anywhere in the world (World Tourism
Institution, 2008). That can be possible by using innovative ways of communication and by
adapting business operations to demanding requirements of the modern tourist market. This
imposes the innovation of practices and the implementation of new technologies in business
processes. The role of the internet in responding to the ever- changing demands and keeping up
with strong competitive advantages is very important. Likewise, the increased interactivity and
interconnectivity as the result of internet development within the tourism industry and the
customers’, helps tourism businesses to maintain their position and market share (Xiang, 2017).
The hotel sectors have the opportunity to exploit the e-marketing potential to market and expand
its borderlines by setting a goal and achieving high business performance. However most private
and government hotels in Ethiopia are not yet well practicing e-marketing because of the
following problems: (Grybniak, 2014) hotels’ information system is not computerized and it is
difficult to run the company competitively, efficiently, and profitably, lack of financial capability
or resources, lack of knowledge or skill about the usage and lack of awareness about the overall
benefit of e-marketing for an organization and customers. Demeke and Olden (2012) noted that
though critical for the operation of tourism and hospitality businesses, the interruption of the
internet system and high prices imposed on broadband services have hampered the effective
utilization of the new technology for marketing purposes. This implies the presence of company
websites and internet connections is not a guarantee to commence e-marketing if political, legal,
telecommunication, infrastructural and socio-economic problems remain unsolved. Despite the
importance of e-marketing in improving business performance, the effect of e-marketing on hotel
performance is inadequately researched to show the drivers of innovation and innovation’s
effects on hotel performance. As per the knowledge of the researcher, only a very limited
number of researches have been done on effect of e-marketing on hotel sector. Some of the
previous studies conducted on the hotel service with truism. Previous studies like (Assegid A.
and Apar S., 2019) studies E-Marketing Adoption and a study entitled E-Commerce Challenge
and Opportunity in Ethiopia (Yonas L. 2017). From the above studies, it is evident that not much
research has been done focused on the effect of e-commerce on the performance of star rated
hotels in Addis Ababa and all studies shows that the hotel industry is not fully utilized
opportunity from e-commerce practice. The proposed study, therefore aims at examining the

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effect of electronic marketing on the hotel performance the case of star related hotels in Addis
Ababa city as the area of study. It will assess the level of practical implementation of e-
marketing tools such as email marketing, social media marketing, website marketing, and mobile
phone marketing in the overall hotel performance. The researcher selects this problem topic
because, it is manageable and it holds the researcher as motivated. It is hoped that the study
results will shade some light on how e-marketing positively or negatively affect star rated hotels
performance in Addis Ababa.

1.3. Objectives of the Study

Based on the stated problems above, the Following General and Specific Objectives are
formulated.

1.3.1. General Objective

The general objective of the study is to evaluating the level of implementation of e-marketing
tools and its effect on star related hotels in Addis Ababa city on overall performance.

1.3.2. Specific Objectives

The specific objectives of the study will be:

1. To evaluate the level of effect of e-marketing components i.e (email Marketing, social media
marketing, website marketing, mobile phone marketing) in the overall hotel performance.
2. To investigate how star-rated hotels are effectively used e-marketing tools
3. To examine the relationship between the level of the effect of e-marketing tools (email
marketing, social media marketing, website marketing, mobile phone marketing) practice and
the hotels performance.

1.4. Research Questions

The study will seek to answer the following questions:
1. How the practical implementations of e-marketing tools in star-related hotels in Addis Ababa
city affect the overall hotels performance?
2. How star-related hotels in Addis Ababa city practiced electronic marketing tools?
3. To what extent electronic marketing tools practice affect hotels performance in star rated
hotels in Addis Ababa?

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1.5. Significance of the Study
The outcomes and results of the proposed study will have both academic and applied
significance. Academically, the study will contribute positively to the knowledge in the filed by
identifying the level of implementation of e-marketing in hotel industries and its effect on their
overall hotel performance. Therefore the, findings in the research will serve as reference for
other researchers. On the practical side, the study will help hotel owners and stakeholders to
identify how the implementations of electronic marketing tools have effect on the actual
performance. The study will help hotel managers and hotel digital marketers as a reference of
marketing strategy to achieve better performance on their hotel business. The study findings will
also serve as an input for the decision-makers of governmental and non-governmental
organizations working on field. The researcher will also acquire necessary skills of data
collection, interpretation, analysis and discussion and this will help him in carrying out similar
research in future.

1.6. Scope of the Study

1.6.1. Geographical Scope
The proposed study geographically will delimit at capital city of Ethiopia, Addis Ababa. The
reason behind for limitation in Addis Ababa city is because most of star rated hotels are fond in
the city and because of shortage of time, budget and experience from the side of the researcher.
The study will cover twenty Eight star rated hotels including …..

1.6.2. Content Scope

Thematically, the proposed study will focus on finding out the effect of e-marketing on star rated
hotels on overall performance and find the level of implementation of e-marketing tools (email
Marketing, social media marketing, website marketing, mobile phone marketing) by star rated
hotels in Addis Ababa city.

1.6.3. Time Scope

The proposed study will be conducted with a period of four months from February, 2022 to June,
2022 to effectively gather the information that effectively meets the study objectives.

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1.7. Limitations of the Study
The main limitation of this study may relate to shortage of empirical and theoretical literature
which is done within the city on the area of e-marketing implementation related to star related
hotels. Because of this the researcher will be forced to use literature conducted and published
outside Ethiopia to nourish and complete the proposed study.

It will be hard to find the right respondents willing to provide accurate required information
concerning their company since the study involves the need for some vital information
concerning the company.
The research will be tire some because it will be hard to fix the researchers plans in to the plans
of respondents who were always busy doing their work..

Inconsistency of the interviewee toward to the questioners and some historical data kept by
different institution is another limitation that might affects the research.

Finally, since e-commerce is a recent phenomenon of the market strategy especially in Ethiopia,
there may be limited amount of research available in the subject context although the study
focused on star-rated hotels in Addis Ababa city, the finding result may limit generalizability to
other unrated hotels as well as star hotels outside of the city of Addis Ababa.

1.8. Organization of the Study

The proposed study paper will organized into five chapters. Chapter one present the introduction
part, which contains, background of the study, statement of the problem, objectives of the study,
research question, significant of the study, scope of the study, limitations of the study and
organization of the study. Chapter two presents the literature reviews on the effect of e-
marketing on business and star related hotels performance and conceptual framework. Chapter
three will deals with the research methodology used for actual research, which contains research
design, sample and population, sampling techniques, data collection, data analysis technique and
analytical model. The final part chapter four will includes analysis of the research findings,
recommendations and conclusions.

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 Chapter Two: Literature Review
2.1. Introduction
This section review relevant literature related to effect of e-marketing in general and effect of e-
marketing on hotels performance specifically in order to build a theoretical background for the
proposed study. Initially, the concepts and definitions of e-marketing, hotel performance and star
related hotels are reviewed. Next review explains the effect of e-marketing on hotel performance
on past literatures which is followed by benefits of e-marketing today. The third section
empirical literature review as well e- marketing practice in Ethiopia hotels and presents
knowledge gap of researcher that would be the proposed study will attempts to fill in. Finally, a
conceptual framework developed from the literature.

2.2. Theoretical Review

Different definitions have been presented for e-marketing and each of the definitions approach e
marketing concept from a particular view: Gilmore et al (2007), defines e-marketing as using
internet and related technologies along with other marketing tools in order to carry out the
traditional marketing operations and activities, finding customer, communicating with them and
delivering value to them. Strauss and Raymond (2001) believe that electronic marketing is the
very traditional marketing which utilizes IT in achieving its goals and increases marketing
efficiency. Electronic marketing is the application of internet and other digital technologies in
achieving marketing goals (Chaffey et al, 2000). Smith and Chaffey (2001) define e-marketing
as achieving marketing goals through applying electronic communications technology this
technology includes internet, e-mail, e-books, databases and mobile phones, And also ‘Electronic
marketing is the application of information technology in the process of creating, communicating
and delivering value to consumers, and for managing relationships with consumers in order to
create benefits for the company and other parties involved.' (Strauss, J., Frost,R. 2009). Finally,
according to '(Strauss, J. 2003), 'e-marketing is the application of a wide range of information
technology for: translating marketing strategies to create more value for the customer (more
efficient segmentation, targeting, differentiation and positioning strategy), more efficient
planning and implementation of the concept, distribution, promotion and pricing of goods,

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services and ideas and the creation of exchange which will satisfy individual consumers, as well
as the objectives of organized consumers. The use of Internet marketing can positively influence
business profitability and those factors such as technological competence, managerial support,
level of star grading and alliances significantly influence Internet marketing usage in the
hospitality sector (Matikiti & Afolabi, 2012).

2.2.1. Fundamental Characteristics of Internet Marketing

Recognizing the fundamental determinants of Internet technology and definitions of Internet
marketing by distinguished scholars, it can be concluded that the basic features of Internet
marketing are as follows: consumer databases, interactivity, the ability of direct response to all
forms of marketing activities and measurement of the effects of marketing activities. (Lilien, G.
L., Rangaswamy, A., De Bruyn, A. 2007)

 Interactivity: as the possibility of two way communication, has changed the way of
implementation of almost all traditional marketing activities and enabled the application
of new methods and techniques of marketing.
 Consumer databases: while traditional marketing activities are based on the information
that is collected and processed by market research, the digital nature of the Internet
technology provides a comprehensive and detailed insight into the characteristics of
consumers and their behavior in the electronic environment.
 Internet technology: allows a direct response to all forms of marketing activities (for
example, clicking on the various advertisings via the Internet), which in most cases is not
possible with traditional marketing activities.
 Measuring: the effects of various marketing activities. 'Measurable effects have always
been the main priority of marketing professionals, because they allow better decision
making in marketing.

Marketing activities via the Internet represent an adequate replacement for traditional
marketing activities in which it is difficult to assess and measure efficiency.

2.2.2. Hotel Services Practice in Addis Ababa City

Since a hotel is a place that offers its facilities and services for sale. Addis Ababa is the capital
city of the country where literally says the heartbeat of Ethiopia. Emperor Menelik II and his

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wife Taitu founded the city in 1889, now the city is a diplomatic city where many international
institutions are located. The first hotel was founded by the two couples and named Taitu hotel in
1898 and exists to date. This pave the way for establishment of many standard hotels in the
country. Many other hotels like Ras Hotel, Bekele Molla, Ghion, Guenet, Finifine Adarash,
Wabi Shebelle, Hilton, and Ethiopia hotels are among some that followed the tread of Taitu
hotel. From 1970-1975 there are many hotels from small to medium range has been developed
throughout the country, especially to the northern parts of the country many government hotels
flourished following the tourist attractions of Ethiopia (Ministry of Culture and Tourism, 2012).
According to AHIF (2018) survey report, Ethiopia once again heads the league for hotel
development in East Africa by leading Kenya and Tanzania from top three.

The hotel industry consists of many different services, including accommodation, restaurants,
and cafes and catering. According to Ministry of Culture and Tourism (MOCT) Statistics, the
total number of hotels in Ethiopia in the year 2018 was more than 600. Recent data on the
number of hotels in the country was unavailable. This number includes all-star rated and not
classified. The services can vary from just one to various combinations. As a part of the total
market concept of the hotel and should make use of Information Technology systems and
networking for effective service delivery and customer focused services. Customers from outside
the city need to book their hotels through the internet, thus the hotels also have to deliver e-
services for the sake of their customers’ satisfaction and to make the reservation easier and
accessible. Generally, the services delivered by most hotels are the following: Accommodation
Service: When someone travels to another city or country, usually has different needs and
demands for the destination one to so a hotel should be like a home away from home. Food and
Beverage (F&B): This is the unit that specializes in the conceptualization, the making of and
delivery of foods and beverages for consumers in a hotel. Catering (Traditional and
International): This is the business of providing food services for special events like meetings
and weddings. Gym Service: A special room for giving gymnasium services with different
equipment, for doing indoor physical exercises for room users and outside customers. Spa
Service: Mostly comprises both Sauna & Steam and massage services. Laundry Service:
Laundry service comprises delivering washing facilities of different clothes of guests in a neat
cautious and well-arranged manner. In recent years some hotels with star leveled, give meeting
or conference hale service. Front desk service (Reception): It’s where visitors are received or

xv
greeted and answers telephone calls. Answering visitors' inquiries about a company and its
products or services, directing visitors to their destinations, sorting and handing out mail,
answering incoming calls on multi-line telephones are also done here. (Addis Ababa Hotels
Owners Association, 2011)

2.2.3. Electronic Marketing and Modern Hotel Industry

Modern hotel industry in its business concept and philosophy necessarily brings into sharp focus
of thinking of the end consumer, the customer of its products and services and the guest.
Accordingly, the marketing concept has a dominant role in all of the hotel's philosophy and
business. The essence of marketing in the hotel industry is in the definition that marketing is
analyzing, organizing, planning and controlling potential sources of customers, from the stand
point of satisfying the needs and requirements of the chosen group of guests, and on this basis
realizing a profit. (Unkovic, S., Zecevic, B. 2011). The function of hotel marketing is to test the
opportunities and conditions for placement of existing and future services, and sales
arrangement, i.e. selection of services that are assessed to have a sale value on the tourist market.
(Galičić, V., Ivanović, S., Lupić, M. 2006). The rapid development of Internet technology and
marketing opportunities provided by modern digital technology has enabled radical changes in
traditional marketing activities and opened new space for the development of specific types of
marketing, the Internet marketing. Because of the ruthless competition in the demanding tourist
market, in order to retain the existing users of products and services and attract new ones, any
serious hotelier, regardless of the capacity, season and market position, must, when defining
marketing concepts, develop specific marketing activities through the Internet. According to
Derouiche, M. (2014) the most powerful and most effective Internet marketing activities, which can
improve sales and attract new customers include;

 Internet marketing via e-mail

 Internet marketing through social networks
 Internet marketing through the hotel website
 Internet marketing through mobile phone

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2.2.4. Electronic Marketing Platforms
There are different type of e-marketing platforms that are used nowadays to effectively utilize
the developed Internet and other information technology systems to draw customers’ attention,
build the brand or improve sales.

2.2.4.1. Internet
Damian R. and Calvin J. (2009), expressed that the internet is a robust communication system
originally designed for military applications. Once people have subscribed to broad band, it
provides access to almost unlimited information and international communication. Access in this
context has zero marginal cost to the users. As internet expands progressively to mobile phones
and hand held devices like PDA’s (Personal digital assistants) the opportunity and necessity to
make use of online and web related marketing method becomes increasingly irresistible. The
internet and email provides unprecedented opportunity for radically new methods of promotion
and advertising such rival marketing and RSS (real simple syndication) of education or
informative articles, newsgroups, forums, affiliations and partnering arrangements, email
newsletter and campaigns and many other ideas which appears more quickly than most of us can
absorb. Modern and emerging digital and web related advertising marketing methods offer
audience ‘reach‘ precision of targeting level of fine tuning and control, measurement and
analysis cost effectiveness that conventional advertising media simply cannot match,
conventional printed sales and marketing materials of all types (from newspapers and magazines
to brochures and business cards) are becoming obsolete as customers look to the internet (via
phone, computer, laptops, PDA’s and in the future TV) for quick up to the minute information
about product, service and suppliers of all sorts.

2.2.4.2. Internet Marketing through Websites

Every hotel website, as well as being the most effective online marketing tool, must also be:
Attractively thought out and designed. ’Marketing experts must come up with attractive
websites, find a way to attract customers to visit the web site, keep them there for a while and
make them frequently come back to their website.’ (Kotler, P., Bowen, T. John., Makens, C.
James 2010). Each hotel website must contain: reliable information on the destination of the
hotel, information about hotel products and services, the possibility of booking of hotel products
and services without risk (booking system) the most cost effective method is direct booking,

xvii
since there is no payment of commissions to intermediaries. Therefore, every hotel should take
care of its own website as the main sales channel. Regularly updated and maintained in
accordance with the modern needs of consumers – guest sand new trends in the hotel industry.
Daily updating of the website content with current events in the hotel, destination and hotel-
tourist business, special deals and packages of services are just some of the ways that hotels can
attract more potential customers to their own website. Hotel web site, as the main carrier of
marketing activities on the Internet, can influence the creation of a solid trust between service
users and hoteliers, business performance and build the brand on the demanding tourist market.
According to Kotler (2010), websites vary greatly in content. The most basic type is a corporate
(or brand) website. These sites are designed to build customer goodwill called customer feedback
and supplement other sales channels rather than sell the company’s product directly. They
typically offer a variety of information and other features in an effort to answer customer
questions and build relationships with them. Other companies create e-marketing websites; these
sites engage consumers in an interaction that will move them closer to a direct purchase or other
marketing outcomes. Hughes and Fill (2009) expressed that, the core of the company’s internet
activity is their website. Websites are intended to be visited by those browsing the internet and
once visited, the opportunity to interact and form a dialogue becomes more realistic. The
commercial attractiveness of a website is based around the opportunity to display product and
company information and often in the form of catalogues, as a corporate identity cue and for
internal communications, to generate leads, to provide onscreen order forms and customer
support at both pre purchase and post purchase points and to collect customer and prospect
information for use within the database or as a feedback link for measurement and evaluative
purposes (Damian R. and Calvin J. 2009).

2.2.4.3. Search Engine Marketing

Search engine marketing is a form of marketing on the internet, based on the interaction between
marketers and search engine companies. The search engine companies provide service in form of
pushing the search key words on top of the searching list to increase the rate of hits to the
marketers’ links. On the other hand, the marketers compensate in the form of payment (Damian
R. and Calvin J. (2009). Customers greatly rely on search engines when they need to find new
products, services or simply just for information. Along with the power of the largest search
engines such as Google, Bing or YouTube, SEM has become one of the most critical tactics for
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marketers. There are two types of SEM that has their own distinctive advantages and
disadvantages: search engines optimization (SEO) and paid per click marketing (PPC). Pay per
click marketing (PPC) is a form of marketing where companies put up text ads and the links to
their web sites on the “sponsored ads” section of search engines pages when a specific keywords
or phrases are typed (GetNetWise, 2014). This type of SEM is highly relevant in a highly
competitive environment, where the strong players all competing on the first pages of search
engines listings. Compared to SEO, PPC has similar benefits, plus some others. When it comes
to searching based on keywords, PPC also is highly targeted and measurable. The marketers do
not have to pay for the displayed ads but only when the links are clicked; hence, in comparison
with traditional marketing, PPC is more cost effective. Moreover, PPC is more predictable,
stable and does not require technical complex effort to conduct as in SEO. PPC also achieves
results much faster and instant after website revision while SEO needs months to get the
desirable results. PPC also has positive impact on branding as the customers would likely notice
the ads in the process of searching (Chaffey& Smith 2013).

2.2.4.4. Internet Marketing via E-mail

Email marketing was the first form of Internet marketing, and consists of emailing marketing
messages to potential customers. Simply put, email marketing is a form of direct marketing
which uses electronic means to deliver commercial messages to an audience. At its core, email
marketing is a tool for customer relationship management (CRM). Used effectively, this
extension of permission-based marketing can deliver one of the highest returns on investments
(ROI) of any digital marketing activity (Stokes, 2008). The power comes from the fact that it is
extremely cost effective due to a low cost per contact, highly targeted, customizable on a mass
scale, completely measurable. It is one of the oldest yet most powerful of all digital marketing
tactics Modeled after direct mail, email marketing is a form of "push" marketing whereby
marketers can rent an email list and send a solo offer to their target audience. Email addresses are
either grabbed from the Internet, purchased or rented from the email address vendors, or, more
ideally, obtained directly from the customers (as in permission marketing). At the beginning of
its use, email marketing had higher response rates than direct mail or banner ads (Honda &
Martin, 2002). There are two major types of emailing practices: Opt-in email and Opt-out email.
Opt-in email is the most acceptable type of emailing. Using only opt-in emails for sending

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marketing messages is a form of permission marketing. One of the most comprehensive
definitions of opt-in email is that it is a policy for giving permission under which the user
explicitly permits the Web site operator to either collect the information, use it in a specified
manner and or share it with others when such use or disclosure to third parties is unrelated to the
purpose for which the information was collected (GetNetWise, 2014). In case of opt-out email,
the customer is automatically added to the mailing list. This form of emailing is widely used, but
it is not recommended. Similar to opt-in email, there are various definitions of opt-in email. The
use of email marketing is actually the most suitable for those who have a product or service they
want to offer directly to a client, whether existing or future (Stokes, 2008). Through direct
contact with the existing and potential users of hotel products and services via email, hoteliers
can achieve multiple benefits:

 attracting new users of hotel products and services

 retention of existing users of hotel products and services
 developing brand awareness and improving market position
 access to research data related to all other business and marketing objectives

As opposed to marketing communications in other media, email marketing is far cheaper and
more efficient E - Mail marketing is an important marketing tool of direct communication that
enables potential users to familiarize themselves with the hotel offer and a variety of special
benefits. The main advantage of e-mail marketing is in its personalization - the message is made
for a specific user, and if that person finds the offer interesting, it often results in the purchase
without having to compare it with other competitors (Rob Stokes, 2011).

2.2.4.5. Internet Marketing through Social Networks

Social networks, as a relatively new phenomenon in the Internet sphere, are "free online
services" that enable different forms of communication with the world with the possibility of
self-presentation. The most famous social networks like Face book, YouTube, Twitter, Snapchat,
and LinkedIn have become an important marketing "tool" of various economic entities (Stokes,
2011). Advantages of hotel marketing through social networks as described by Rob Stokes, 2018
includes:

 Relatively low cost of the campaign,

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  quick feedback,
 increase of traffic to the hotel website,
 strengthening of the brand,
 Simple and fast promotion of new hotel products or services. • improving relations with
customers.

Internet marketing through social networks must represent the necessary marketing concept
which must be aimed at encouraging potential customers to voluntary and free exchange of
information about hotel products and services. By marketing online, companies can include
direct selling and distribution through online channels, thus increase revenue. Moreover, e-
marketing opens a lot of new channels to add new values to not only give customers new
benefits but also get closer to them, understand their needs better and improve the relationship
management. The cost on marketing in the digital world compared to traditional marketing
strategies is much cheaper and more efficient. Social network marketing has become popular
amongst network marketers who want to promote their businesses online. Social media sites like
Face book, Twitter, Telegram and you tube have made it easy for entrepreneurs to get onto the
internet and network with people from around the world (Stokes, 2011).

There's a tremendous amount of opportunity for those that truly capitalize on the social network
marketing boom. If you truly want to differentiate yourself from the majority of network
marketers that are using social network marketing then it's important to connect with people and
become personable. Another key to having success in social network marketing is to make sure
that you diversify your social presence. Social network marketing is a fun way to make friends
and network with people from all over the world. The power of social marketing is so huge and
the opportunities are endless (Honda & Martin, 2002). When marketers want to reach users of
social networks such as Face book, MySpace, or Byword, they have two choices: buy advertising
or starting a viral campaign. But first it's important to understand both who influences purchase
decisions in online communities and which groups of users can be influenced. Social Media is
characterized by participation, openness, conversation, community and connectedness. Basic
forms of social media include blogs, social networks, wikis (such as Wikipedia), micro blogs
(such as Twitter), podcasts, forums, content communities (such as YouTube), bookmarking and
aggregating. Stokes (2008) suggests that marketers can use social media to market to content

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creators (such as bloggers), market to content consumers, market to content sharers and for
advertising on various platforms.

2.2.4.6. Mobile Phone Marketing

Mobile phone marketing refers to direct marketing to consumers via cell phones. Technologies
such as sms, mms, bluetooth and infrared are used to distribute commercial content to mobile
phones; mobile phone marketing has the potential to be the fastest growing and most targetable
method of brand marketing. Dushinski (2010) points out that mobile technology not only lets
marketers reach customers where they are, it allows them to engage mobile users by targeting
their immediate and specific needs. He also suggested that it is giving users what they want,
when they want it and that is the unique value proposition of mobile phone marketing and
businesses, agents and nonprofit organizations of all types can have successful campaigns
without breaking the bank. Fantahun T. (2016) revealed that, over the last few years, the mobile
and wireless market has been one of the fastest growing markets in the world and it is still
growing at a rapid pace. The attraction to mobile is the channel’s ability to acquire new
customers, increase customer loyalty and generate brand awareness and affinity to monetize
content and the fact that it lets marketers provide convenience to consumers. According to
Hughes and Fill (2007), mobile phones provide another logical platform for marketers to channel
targeted text (SMS) messages to millions of users. Additionally, video technology is beginning
to allow TV program transmission through mobile phones creating other advertisement
opportunities.

2.2.5. Hotel Performance

The term performance, as the outcome of the hotel business, has diverse applications in the hotel
sector. Performance is usually defined in terms of output or an achievement of quantitative goals
(Armstrong, 2006). Hotel performance literature highlights that measuring hotel performance
aims to monitor and control the execution of preset tasks. The goal of every business analysis is
to increase the efficiency and effectiveness of operations, whereby business analysis realizes its
task by the process of diagnosing disorders, information on the causes and consequences of the
disorder, and then by preparing business decisions. The term performance, as the outcome of the
hotel business, has diverse applications in the hotel sector, whereby business analysis realizes its
task by the process of diagnosing disorders, information on the causes and consequences of the

xxii
disorder, and then by preparing business decisions. Business analysis determines hotel strengths
and weaknesses and is warning about disturbances and possible crisis. Timely detection of weak
spots is crucial for the success of a business hotel business monitoring gathers useful information
on the operations, which are the basis for business decision making and a prerequisite for
improving the business (Okumus, 2002). From the above discussion it is clear that the hotel
company should not see business analysis as a cost but as a productive instrument for managing
company business. Hotel long-term survival in a competitive and seasonally characterized
environment depends on the ability of companies to identify the environmental factors that
determine their performance and to adequately measure their business performance. Reviewing
the literature various approaches to measuring hotel business performance are identified. Most
concepts are the result of the integration of methodological framework and experience of
business practices. Neely et al. (2000) concluded their research about the approach to
conceptualize business performance measurement with the interpretation that better
understanding of business operations results requires their conceptualization through two
fundamental approaches, according to the drivers of performance as well as business outcomes,
that means that the result of business operations should consider but also the way of achieving
the results. Pursuant to which, measuring business results requires measuring of results, but also,
measuring of process parameters, inputs, affecting the overall result or performance. Business
drivers are divided to internal and external factors, whereby right understanding of internal and
external factors and their impact on the company's business is the key to effective management.
Business outcomes are performance indicators. Measuring the impact of hotel operations was
primarily focused on financial performance indicators, but relevance of nonfinancial indicators
eventually grew (Sainaghi and Canali, 2011). According to Onyango et al. (2012) business
performance is a multidimensional concept that requires consideration of financial and non-
financial indicators. The most important business performance indicators of hotel companies in
research includes: revenue per available room, average room rates, price stability, business
efficiency, length of business season, occupancy rate of accommodation capacities, business
stability expressed by rate of occupancy and customer satisfaction, as a parameter that occupies
an increasingly important role in the research of business performance and the total return
investment of the hotel will be increased. Morkoc, D. and Atay, L. (2012)

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2.2.6. Effect of Electronic Marketing on Performance
E-marketing is growing at a dramatic pace and is significantly impacting customer and business
market behaviors. As a result, most firms started developing e-marketing strategies. E-marketing
strategies entail utilizing existing and emerging communication and data networks to impart
personalized and uninterrupted communication between the firm and its customers and to
provide value above traditional networks Watson, R.P., et.al,.(2002). Application of electronic
marketing strategies, companies can have many benefits based on those features that the
environment of Internet provides. Doing e-marketing have benefit to both companies and
customers Darby, Jones & Madani, (2003). Globalization and technological advances have
greatly advanced the business opportunities for Marketing. The increased number of people
travelling worldwide in addition to international migration has meant that marketing innovations
has to meet the needs of the clients and have to be convenient for everyone. The marketing
function of the future will continue to be polarized. Kotler and Keller (2012) highlighted that in a
growing number of businesses, marketing will have more of a strategic role that means the
marketing group must have the skills and talent to think strategically and the credibility to
influence the process to think in terms of building branded assets rather than immediate sales.
Brodie et al (2007) also maintain that there is a strong positive relationship between e-marketing
practices and organizational performance while adding that organizations with higher penetration
of e-marketing practices fair better in terms of customer acquisition. They however challenge the
notion that information technology enabled business process innovations lead to rapid business
performance. Lancaster and Withey (2006) expressed that the growth of electronic marketing
such as the internet, email, mobile phones and so on has allowed information to become more
rapid and global. Earlier studies indicated that companies could benefit from implementing the
internet into their marketing mix, for example, marketing products and services by providing
online quotes, advertising in more markets with less expense, using e-mail as a marketing tool
and decreasing the costs of printing materials such as catalogues and glossy brochures. E-
marketing plays a very important role in benefiting the companies’ strategies. The 5S model of e-
marketing shows the benefits that it can possibly generate. The 5S model is consists of the
combination of “sell-serve-speak-save-sizzle” (Chaffey & Smith, 2013).

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2.3. Empirical Review
Some related studies are conducted by different researchers in different parts of the world.
However, there are very limited studies that conducted in Ethiopia on the topics of evaluating the
effect of electronic marketing on hotel performance. In Africa according to Hany Salah Sadek
(2016) who were conducted research on 'the role of electronic marketing practices in improving
performance in Hurghada hotels in Egypt', highly recommended that marketing and
communication through the internet are essential in the hospitality industry to enhance customer
purchasing decision. And research conducted on Impact of E-Marketing Tools on Performance
of Budget Hotels: Furthermore, not only a positive relationship between Internet marketing tool
and firm performance was found but complementarities among the web site orientations were
observed. According to the study findings on 'The implementation of e-marketing in the hotel
industry: the case of Istria Country D.Loncaric & N.Radetic (2015), hotel companies in Istria
County have achieved a medium or even high level of implementation of e-marketing practice
and the companies with a higher level of e-marketing practice also achieve better business
performance. The Internet has enabled a new era of user-generated content. Given the increasing
popularity of Internet usage worldwide, managers should take advantage of full range of features
of the Internet for both site interactivity and functionality. As a result, hotel managers should
avoid a simple presence on the Internet (merely informational) and instead pursue a more
interactive presence directed to interaction with potential customers and build a new business
model for providing free content-sharing services (R.Damian, 2009). Hence; e- marketing is the
new trend of marketing extensively acquiring by hotel industry the traditional marketing strategy
of hotel industry now not performing very well; in place e-marketing is taking the driver’s seat.

E-marketing has number of important advantages that make the adoption of e-marketing
approaches and strategies attractive for businesses. One powerful argument in favor of e-
marketing revolves around the cost and speed of this approach to marketing and these two
factors in particular set e-marketing apart from other marketing approaches. Abel Mezgebe
(2020) on his study Effect of Electronic Marketing on Customer Satisfaction: The Case of Four
Star Hotels in Addis Ababa, found that there is much evidence that makes a case for marketing
electronically because of the cost-benefit ratio and the speed-to-market advantage However, it is
important to understand that e-marketing is only a cheap option when one considers it in the
context of the size of advertising budgets that large firms used to have in relation to television

xxv
and radio advertising. Whilst small e-marketing campaigns may be cheap, any larger scale
campaign is likely to still incur a significant cost, but some of the other most important
advantages of e-marketing ensure that this approach to advertising has become increasingly
popular in recent years. This finding also supported by survey of Addis Ababa Hotel Owners
Trade Association (AHA) on "The Impact of Covid-19 On the Addis Ababa Hotel Market". The
survey shows that most of the hotels tried to handle the pandemic using electronic marketing
methods as a means (Addis Ababa Hotels Owner Association, 20202). These advantages mainly
revolve around the ability of this form of marketing to collect information and deploy it in
unique ways. The use social networking and social media in particular offers enormous potential
to marketers and opens the door to revolutionary changes in the way customers and businesses
interact with one another the impact that social media websites such as Face book and Twitter
have had upon the way in which people use the Internet has been evident in the past few years
and Rana argues that 'the user-driven, community orientated way in which social media
communicates leads to a different type of Internet, full of organic content and user-friendly
websites' (Rana 2009: p.255). Businesses are thus far only scratching the surface of how to
exploit such new opportunities, but Face book for example offers an advertising service that
allow businesses to target individuals based on a range of different criteria. Such adverts
therefore are targeted at particular consumers in a much more focused way than even adverts
traditionally used on Google, known as Google Ads (Face book, 2011). However, despite the
numerous advantages of e-marketing businesses must be aware of the fact that e-marketing also
presents businesses with a number of potential pitfalls. The fact that the Internet offers an almost
unlimited consumer base is one of its clear advantages, but its global reach also affects the
competition that businesses experience and as a result online businesses are likely to face stiff
competition and many other companies highly competent in their e-marketing expertise
Specially in developing country so evaluating the influence of electronic marketing on star-
related hotel performance are important to improve achieving the competitive environment. As a
result, companies must focus upon distinctive e-marketing strategies and campaigns that
differentiate themselves from their competitors in order to be able to cope with the extent of the
competition that can be found online in today’s marketplace. The proposed study will contribute
by examine the current practice e-marketing by star related hotels in Addis Ababa city..

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 2.4. Conceptual Framework of the study
The contextual frame work contains dependent and independent variable .Independent variables
are assumed to have caused the change in the dependent variables. The dependent variables
referred to as the reason that researcher wants to explain. Kothari (2004) In this proposal, the
conceptual framework is based on four independent variables namely Internet marketing
activities through email marketing, social network marketing, website marketing and mobile
phone marketing. The dependent variable that is hotel performance such as financial and non-
financial performance is directly influenced by the independent variables. These relationships are
presented in Figure 1 below.

Independent Variable

E-mail Marketing
 Option in email
 Option out email
 Email Newsletter and campaigns
 Partnering arrangements Dependant variable

Hotel Performance
Social Networks Marketing
 Face book  Financial performance
 Twitter
 Sales volume
 Blogs
 Content committees /YouTube  Revenue generated
 Return on investment
(ROI)
Websites Marketing
 Cost Effectiveness
 Corporate( brand website)
 Marketing website  Non-financial performance
 Quality
 Timeliness
Mobile Phone Marketing
 SMS
 MMS
 Bluetooth
 Infrared
 Video technology

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Figure 2.1 Conceptual Framework

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1. Introduction
This part describes the methodologies that will be used in this study: the choice of particular
research designs, sample and sampling techniques, sources of data and data collection tools, and
data analysis method along with an appropriate justification associated with each approach.

3.2. Research Approach

The researcher will use both the qualitative and the quantitative type of research approach or
mixed approach to meet the objective of the study. Quantitative approach to research involves
the generation of data in quantitative form which can be subjected to deal quantitative analysis.
Qualitative approach to research is concerned with subjective assessment of the situations.
Mixed method enabled the researcher to use data collected through interview and questionnaires
comprehensively; so as to maximize the richness of the discussions during data collection. This
approach is preferable to examine the relationship between variables, which are measured
numerically and analyzed using a range of statistical and graphical techniques (Creswell, 2003).

3.3. Research Design

As the objective of the study will be evaluating the effect of e-marketing on hotel performance,
descriptive research will be used because descriptive research concerned with describing the
nature or condition and the degree in detail of the present situation. Creswell (2003) stated that
the descriptive method of research is used to gathering information about the present or existing
condition and the study was also adopted explanatory research because it is suitable to explain
the relationship between variables. To be more effective, both qualitative and quantitative data
collected will be used during the data collection.

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3.4. Population and Sample of the Study
Sampling is the selection within the population to yield some knowledge about the whole
population, especially for the purposes of making predictions based on statistical inference
Kothari (1985). To select sample population, it needs to know the total population of the study.
This study will conduct on star rated hotels found in Addis Ababa Ethiopia. Based on the
information gained from Addis Ababa Culture, -- and Truism Biro and Addis Ababa Hotels
Owners Association (AHA) ----- general managers and front office managers who are working
in ------- star rated hotels found in Addis Ababa considered as a total population . Since the total
study population is very large, use a sample size calculator developed by Yemane (1967, p, 886).
The formula is a follow;

Where, N =population size (where in this study N=560)

e = error tolerance = 0.05(5%)

n = sample size

substituting for each value n = ____560___ = _560_____ = __560___ = 234

1+560(0.05)2 1+560(0.0025) 1+1.4

Therefore based on this formula the sample size will be ----- general managers and front office
managers who are working from twenty eight hotels.

Since the study needs a respondents who have special knowledge related to electronic marketing,
the researcher will use purposive sampling techniques, and the target population of the study will
consist of fifty six general managers and front office managers of stare-related hotels to get
unbiased information because they are the responsible and duty employed in the hotel that use
electronic marketing for their career.

3.5. Data type and Sources

The researcher will use both primary and secondary data. The primary data specifically for the
research project being undertaken will collect through questionnaire from twenty eight star-

xxix
related hotels managers and front office managers. Secondary data sources are data’s that are
already exist. Hence the researcher will collect such data from previous researches, books,
governmental and non-governmental organizations reports, journals, articles and literature from
the internet.

3.6. Methods of data collection

3.6.1. Sampling Technique
In sampling a portion that represents the whole population is selected. To obtain the necessary
data for the study, the researcher will use purposive sampling techniques to select -----general
managers and front office managers of star-rated hotels.

Since the target population is identified, the sampling frame of the proposed study will be
consisting of general managers and front office managers from 28 stare-related hotels in Addis
Ababa city. The reason to use purposive sampling by the researcher is because hotels general
managers and front office managers are the primary responsible employees which are using
electronic marketing tools to improve the hotels performance.

3.6.2. Instruments and Data Collection Techniques

The essential and significant part to conduct research is data collection. To validate the
investigation and to collect reliable data, it calls for an appropriate and convenient technique of
data collection (Kothari, 1985). For the undertaken study the researcher will use a questionnaire
data collection technique to collect primary data. Structured questionnaires will distributed to the
target groups or specified general managers and front office managers of star related-hotels. The
questionnaire will include statements under the employ of electronic marketing on hotel
performance to what extent e-marketing is implemented and trend in e-marketing after
implementation. For better understanding and clear information, a five point Likert scale
questionnaire will be used to evaluating the effect of electronic marketing on hotel performance
of 28 star-related hotels in Addis Ababa city. For a better willingness and response, the
researcher will use a support letter of the university. The researcher will expect better willingness
and response from the respondents.

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3.6.3. Procedures
To collect and analyze the data the following procedures will be used; first, the questionnaires
will be distributed to the respondents and the respondent will fill the questionnaires with in
affixed time schedule. Second, the researcher will collect the distributed questionnaire. Thirdly,
the data collected from the respondents will be recorded and analysis will be done based on
SPSS. Finally based on the data analysis result, conclusion and recommendation will be made.

3.7. Method of Data Analysis and presentation

Since the topic under study is need detailed knowledge on the field as well as quantifying data of
the extent to which e-marketing affect star related hotels overall performance, the researcher will
use quantitative and qualitative approach of data analysis. Quantitative analysis is used for
analysis of data collected through questioner and descriptive and inferential statistics will be
used as quantitative analysis to analyze sample data by measures central tendencies (mean scores
& percentages) & measures of dispersion (standard deviation), to brief descriptive & summary of
sample data that represents the entire population. The data analysis presentations will includes
personal and background data of the respondent (sex, age, educational status and work
experience), the results of the collected questionnaires using tables and figures and finally
conclusions will be given by evaluating the implications of the data and recommendations will
be made.

3.8. Reliability and Validity of the Research

3.8.1. Reliability
Reliability is the consistency of a set of measurements or measuring instrument, often used to
describe a test. According to Hair et al. (2003), Cronbach’s Alpha is a method used to measure
the reliability of the questionnaire between each item and the mean of the whole. To insure the
validity of the proposed study questionnaire, alpha coefficient value of 0.7 and more will be
used. If the coefficient computed is from 0.7 and above, the instruments shall be considered to
be valid but if it is less, the instruments shall be considered invalid, so new ones shall be made.

3.8.2. Validity
To ensure the validity of data collection method, the researcher will take different steps such as:
preparing the survey question based on literature review and frame of reference to ensure result

xxxi
validity, collecting data from the reliable sources, from respondent who have experiences in
using the e-market service, distributing the questionnaire to respondents directly to identify
questions that might be unclear or ambiguous to the respondents and others.

3.9. Ethical considerations

This relates to moral standards that the researcher should consider in all research methods in all
stages of the research design. Any researcher should followed three principles namely
beneficence, respect for human dignity as well as justice (Polit et al 2001). Therefore the
researcher will seek for authorization from potential respondents and will ensure free will
consent from participants. Since the result of the study is to be used for academic purpose only,
the names or identifications of the respondents will be anonymous and information collected
from them treated with utmost confidentiality. The information that will be collected from the
respondents will analyzed without any changes by the researcher.

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 CHAPTER FOUR

DATA ANALYSIS AND INTERPRETATION

4.1. Introduction

This chapter entirely provides detail information about findings of the study using various
analysis techniques. Descriptive analysis on demographic profiles of the respondents is among
the discussion points of the chapter. Besides, regression results on influence of E-marketing tools
such as: Website Marketing, E-mail Marketing, Social Networks Marketing, Mobile Phone
Marketing was discussed. A total of 56 questionnaires were distributed to management staffs of
stare-related hotels in Bahir Dar city in order to collect data .Out of the questionnaires distributed
51 usable responses were obtained. This is acceptable response rate based on Fowler (2002) a 75
percent response rate is considered tolerable. Data analysis, discussion and interpretation of the
results are presented in the following subheadings: presentation of demographic data and
frequency of respondents, analysis of mean, analysis of correlation and regression coefficient.

4.2. General Information of Respondents

This section of the study presents the data analyzed and entails discussions on the results
obtained. Out of the distributed 56 questionnaires, 51 were collected back and found useful for
the study giving a response rate of 91.11%. After collection, the questionnaires were diligently
checked for errors and omissions and recorded on SPSS version 23 (statistical package for social
sciences) to generate descriptive statistical reports. Inferential analyses were performed to
indicate the possible nature of relationships that exist among the dependent and independent
variables in the study.

4.3. Demographic Profile of the respondent

As shown in the table below, of the total 56 sample respondents 13(25.5%) were female
respondents and the remaining 38(74.5%) were male respondents.

Table 4.1 gender, age, level of education, and occupation of the respondents.
Gender of Respondents

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 Frequenc Percent Valid Cumulative
y Percent Percent
Valid Female 13 25.5 25.5 25.5
Male 38 74.5 74.5 100.0
Total 51 100.0 100.0
Source: Analysis of Survey data 2021, using SPSS 23.

As table 4.1 shows below the largest respondent fall under the age group between 25-35 years
old which shows a percentage of 66.7%(34) respondents. The second largest respondents fall in
the age 28 group between 18-24 years old having a percentage of 17.6% (9) respondents and the
smallest respondents fall in age group between 36-50 having percentage of 15.7% (8).

Age of Respondents

Frequency Percent Valid Percent Cumulative Percent

Valid 18-24 9 17.6 17.6 17.6
25-35 34 66.7 66.7 84.3
36-50 8 15.7 15.7 100.0
T0tal 51 100 100.0
Source: Analysis of Survey data 2022, using SPSS 23.

Based on Educational Level shown in the table below, the main respondent in this research were
University Degree holders consists of 36(70.6%), Master's Degree Above11(21.6%), and
Diploma4(7.8%) holders.

Educational Background

Frequency Percent Valid Percent Cumulative Percent

Valid Diploma 4 7.8 7.8 7.8
University Degree 36 70.6 70.6 78.4
Master Degree above 11 21.6 21.6 100.0
Total 51 100.0 100.0
Source: Analysis of Survey data 2021, using SPSS 23

Based on the Experience of Respondents shown in the Table below, the main respondent
experience in this research was Less than 5 year consists of 25(49%), 5 to 10 year 20(39.2%),)
11 to 20year 5(9.8%) and Above 20 years1(2%).

Experience of Respondents

Frequency Percent Valid Percent Cumulative Percent

Valid Less than 5 years 25 49.0 49.0 49.0

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 5 to 10 years 20 39.2 39.2 88.2
11 to 20 years 5 9.8 9.8 98.0
Above 20 years 1 2.0 2.0 100.0
Total 51 100 100
Source: Analysis of Survey data 2021, using SPSS 23

4.4. Information of Respondents’ Hotel Star Rated Status

Based on the hotel's star rated status shown in Table 4.2 Below, the major respondent's hotel
rated states are 26(51%) were rated hotels, and the rest 25(49%) unrated or doesn’t have awarded
stares. Under this study 49% of respondents are from unrated hotels but, tourist’s standard hotels.

Table 4.2 Stare-related hotels respondents star rated status

Star-Related Hotels Stare Status

Frequency Percent Valid Percent Cumulative Percent

Valid Unrated 25 49.0 49.0 49.0
Rated 26 51.0 51.0 100.0
Total 51 100.0 100.0
Source: Analysis of Survey data 2021, using SPSS 23

4.5. Descriptive Statistics

Descriptive statistics (mean and standard deviations) of the respondent scores have computed the
reason for using descriptive statistics was to compare E-marketing tools dimensions that
influence’s the level of hotels to answer the research specific objectives that, to what extent
hotels employ the electronic marketing tools by using the means and standard deviations values.
A five-point Likert scale are used where 1.000-1.499 = not at all; 1.500-2.499 = little extent;
2.500-3.499 = moderate extent; 3.500-4.499 = great extent and 4.500-5.00 = very great extent.

The mean (M) and the standard deviation (SD) of the result of the descriptive statistics of E-mail
Marketing activities on hotels are shown in the table4.3 below from the findings, the study
indicated that Partnering arrangements as illustrated by a mean of 3.8431, email newsletter and
campaigns as illustrated by a mean of 3.6667, opt-in email as illustrated by a mean of 3.5490,
opt-out email as illustrated by a mean of 3.5490, the result show that is greatly employed in the
company. Real simple syndication (RSS) of education or informative articles as illustrated by a
mean of 3.4510, and Spam email as illustrated by a mean of 3.3529, the study also found that is
moderately employed in the company. The result is in line with WANJIRU KIRIRO (2015),

xxxv
Beamish and Karen (2006) sentiments that communications based drivers include technological
advances such as internet, database, and new segmentation technique message effectiveness
more consistent brand images and the need to build reputations to provide clear identities.

Table 4.3. E- Mail Marketing

Descriptive Statistics

N Mean Std. Deviation

Option-in-email 51 3.5490 .72976
Option-out-email 51 3.4706 .64325
Spam email 51 3.3529 .62685
RSS (real simple syndication) of education 51 3.4510 .67272
or informative articles
Email newsletter and campaigns 51 3.6667 .71181
Partnering arrangements 51 3.8431 .80926
Valid N (listwise) 51
Source: Analysis of Survey data 2021, using SPSS 23.

The mean (M) and the standard deviation (SD) of the result of the descriptive statistics of Social
Networks Marketing activities on hotels are shown in table 4.4 below. The study findings reveal
that Face book as expressed by a mean score of 3.6778, content communities (such as YouTube)
as expressed by a mean score of 3.6078, as expressed greatly employed in the stare-related
hotels. The study also found that the companies employed Shows that blogs, as expressed by a
mean score of 3.5882, and Twitter as the mean score of 3.5178, are also greatly employed in the
company were employed to a great extent. This is in line with Mayfield (2008) that social media
is characterized by participation, openness, conversation, community, and connectedness.
Wanjiru Kiriro (2015) and Caroline n Maina (2017). These findings are similar to Stokes (2008)
who suggests that marketers can use social media to market to content creators (such as
bloggers), market to content consumers, market to content sharers and for advertising on various.

Table 4.4 Social Networks Marketing

Descriptive Statistics

N Mean Std. Deviation

Face book 51 3.6778 .75042
Twitter 51 3.5178 .69508
Blogs 51 3.5882 .63801
Content communities (such as 51 3.6078 .75042

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 YouTube)
Valid N (listwise) 51
Source: Analysis of Survey data 2021, using SPSS 23.

The mean (M) and the standard deviation (SD) of the result of the descriptive statistics of
Website Marketing activities on stare-related hotels are shown in table 4.5 below. The mean (M)
and the standard deviation (SD) from the findings, the companies employed corporate (brand)
website to a 31 great extent as shown by a mean of 3.5294. In addition, the companies employed
marketing website also, to a great extent as shown by a mean of3.7059. Companies could also
enhance their credibility by creating a professional image through the presence of an efficient
website, answer questions about products and services in several languages and conduct research
in foreign markets (McCue, 2009; Kula &Tatoglu, 2003).

Table 4.5 Website Marketing

Descriptive Statistics

N Mean Std. Deviation

Corporate (brand) website 51 3.5294 .70294
Marketing website 51 3.7059 .80732
Valid N (listwise) 51
Source: Analysis of Survey data 2021, using SPSS 23

The mean (M) and the standard deviation (SD) of the result of the descriptive statistics of Mobile
Phone Marketing activities on hotels are shown in table 4.6 below the study outcomes revealed
that SMS as shown by the mean score of 3.0784, video technology as shown by the mean score
of 3.0588, infrared, as shown by the mean score of 2.8627, Bluetooth as shown by the mean
score of 2.7647, and MMS as shown by the mean score of 2.9412, All mean value indicate that
mobile marketing in star- related hotels are moderate extent employed. With Fill’s (2007)
statement, mobile phones provide another logical platform for marketers to channel targeted text
(SMS) messages to millions of users.

Table 4.6 Mobile Phone Marketing

Descriptive Statistics

N Mean Std. Deviation

Short Messaging Service 51 3.0784 .84482
Multimedia Messaging Service 51 2.9412 1.04712

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 Bluetooth 51 2.7647 1.05049
Infrared 51 2.8627 1.00039
Video technology 51 3.0588 .85818
Valid N (listwise)
Source: Analysis of Survey data 2021, using SPSS 23

The grand mean (M) and the standard deviation (SD) of the result of the descriptive statistics of
Electronic marketing tools practically implemented on hotels are shown in table 4.7 below. The
grand mean value expressed by a mean score of website Marketing mean score of 3.6275, Social
networks marketing 3.6078, Email Marketing 3.5556, as expressed greatly employed in the star-
32 related hotels in Bahir Dar city. And Mobile Phone Marketing grand mean result 2.9412, the
result indicates that mobile marketing employed in star- related hotel at moderate extent. Hughes
and Fill (2007) confirm that the pace of technological changes is facilitating an increasing variety
of communication tools that can be used for marketing purposes.

Table 4.7 Electronic marketing tools

Descriptive Statistics

N Mean Std. Deviation

Email Marketing 51 3.5556 .60522
Social Networks Marketing 51 3.6078 .67686
Website Marketing 51 3.6275 .69169
Mobile Phone Marketing 51 2.9412 .91590
Valid N (listwise) 51 .91590
Source: Analysis of Survey data 2021, using SPSS 23

4.6. Pearson Correlation Coefficient Analysis

Pearson correlation coefficient analysis was used to measures the direction and degree of
relationship between two variables. The coefficient of this analysis can range from (r) is as
follows: 0.1 – 0.29 is weak; 0.3 – 0.49 is moderate; and > 0.5 is strong relationship between two
variables. A negative correlation means that an increase in the value of one variable and the
value of the other variable will be decreased. A positive correlation means that the value of two
variables will increase or decrease together the result of inferential statistics in table 4.8 below
reveals that four explanatory variables namely Electronic marketing such as Website Marketing,
E-mail Marketing, Social Networks Marketing strong positive relationship, and Mobile Phone
Marketing moderate positively correlated with hotel performance and E-mail Marketing has the

xxxviii
highest correlation coefficient which is (r = 0.695**, p=0.000, p<.05) next to E-mail Marketing
at 0.01 level of significance. Social Networks Marketing, and have the third correlation
coefficient (r =0.653**, p=0.000, p<.05), and Mobile Phone marketing correlation coefficient (r
=0.499**, p=0.000, p<.05) at 0.01 level of significance This implies that implementing E-mail
Marketing, Website Marketing, Social networks marketing strong positively related to Hotel
performance and Mobile phone marketing has moderate positively relationships related to Hotel
performance. In another word when the electronic marketing tools activity increases hotel
performance had been positively increased.

Table 4.8 Correlation Coefficient Result

Email Social Website Mobile Hotel

Marketing Networks Marketing Phone Performance
Marketing Marketing
Email Pearson 1 .555** .580 .475** .695**
Marketing Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 51 51 51 51 51
Social Pearson .555** 1 .477** .460** .653**
Networks Correlation
Marketing Sig. (2-tailed) .000 .000 .000 .000
N 51 51 51 51 51
Website Pearson .580** .477**1 1 .249 .688**
Marketing Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 51 51 51 51 51
Mobile Pearson .475** .460** .249 1 .499**
Phone Correlation

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 Marketing Sig. (2-tailed) .000 .000 .000 .000
N 51 51 51 51 51
Hotel Pearson .695** .653** .688** .499** 1
Performance Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 51 51 51 51 51
**. Correlation is significant at the 0.01 level (2-tailed)
Source: Analysis of Survey data 2021, using SPSS 23.

4.7. Regression Analysis

In this section regression analysis for Electronic marketing dimensions on hotel, performance has
been undertaken to understand the relationship between hotel performance and explanatory
variables.

4.8. Diagnosis test/ Assumptions

Before applying regression analysis, some tests were conducted in order to ensure the
appropriateness of regression analysis data to assumptions.

4.8.1. Test for Multicollinearity

Multicollinearity refers to a situation when two or more independent variables are highly
correlated with each other. If there is a high degree of correlation between independent variables,
we have a problem of what is commonly described as the problem of multicollinearity causes
inflation in the standard error of regression coefficients resulting in a reduction of their
significance. There are several mechanisms to detect the existence of multicollinearity problems.
For this research Pearson correlation and Variance Inflation Factor (VIF) was used to observe
multicollinearity problems among independent variables. To test whether multicollinearity
problems present or not, a Variance Inflation Factor (VIF) was employed. Mu’’GeArslan, F. and
Altuna, O.K, (2010) cited that the VIF value above 10 and a tolerance value below 0.1cause a
multicollinearity problem. The result showed that in table 4.6 below reveals that there were no
significant multicollinearity problems among the variables because the VIF result less than 10
and tolerance is above 0.1(Mu’’geArslan, F. and Altuna, O.K, 2010).

Table 4.9.MulticolinearityTest
a
Coefficients

Collinearity Statistics

xl
 Email Marketing Tolerance VIF
Social Networks Marketing .509 1.965
Website Marketing .602 1.660
Mobile Phone Marketing .622 1.609
.710 1.408
Dependent Variable: Hotel Performance
Source: Analysis of Survey data 2021, using SPSS 23.
4.8.2. Linearity Test

The mean values of the outcome variable for each increment of the predictor(s) lie along a
straight line and the closer the dots lie to the diagonal line, the closer to normal the residuals are
distributed. This means that it is assumed that the relationship we are modeling is a linear one. If
we model a non-linear relationship using a linear model then this limits the generalizability of
the findings. The graph of standardize residuals and standardize predictors should look like a
random array of dots evenly spread around zero. If this graph funnels out, then the chances are
that there is Heteroskedasticity in the data, as shown in fig 4.1 the points are randomly and
evenly disperse near to throughout the 45 degree plot line. This pattern is indicative of a situation
in which the assumptions of linearity have been meeting. The scatter plot of residuals shows no
large difference in the spread of the residuals as you look from left to right in the figure bellows
this result suggests the relationship predicting as is linear.

Figure 4.1: Normal Point Plot of Standardized Residua

Normal P-P plot of Regression Standardize Residual

Source: Analysis of Survey data 2019, using SPSS23.

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4.9. Regression Analysis the influence of Independent Variables on the Dependent Variable
The overall regression model and its ANOVA are summarized as follows:
Table 4.10 Model Summery

Model Summaryb

Change statistics Durbin-

Std. Error of
Estimation
Adjusted
Rsquare

Rsquare
Watson
Model

R F df1 df2 Sig. F

Square Change Change
Change
1 a .687 .659 .19263 .687 25.189 4 46 .000 1.775
.829
a. Predictors: (Constant), Website Marketing, Social Networks Marketing, Email Marketing, Mobile
Phone Marketing
b. Dependent Variable: Hotel Performance
Source: Analysis of Survey data 2021, using SPSS 23.

xlii
The results shown in the table 4.10 above reveals the correlation of indicators and the predicted
variable influence of hotel performance. Therefore, the correlation, as indicated in the Model
Summary, between the independent variables and the dependent is 0.829, and R-squared is
measured the goodness of fit of the explanatory variables together in explaining the variations in
hotel performance of explanatory variables (Email Marketing, Social Networks Marketing,
Website Marketing, and Mobile Phone Marketing). Adjusted R-square value for the regression
model was 0.659. This indicates the explanatory variables (Email Marketing, Social Network
Marketing, Website Marketing, and Mobile Phone Marketing) in this study explain about 65.9%
percent of the variation in the hotel performance. The remaining 34.1 % of the variation in the
hotel performance of star-related Hotels Bahir Dar city is explained by other variables which are
not included in the model. Therefore, E-Marketing tools (E-mail Marketing, Social Networks
Marketing, Website Marketing, and Mobile Phone Marketing) are good explanatory variables of
the performance of starrelated hotels in Bahir Dar city. Durbin-watson the value range 0-4
however the value near 2 indicates that the assumption is met residuals are uncorrelated. As a
rule of thumb that test statics values in the range of 1.5 to 2.5 are relatively normal. Values
outside of this range could be the cause of concern. Field (2009) suggests that values under 1 or
more than 3 are a definite cause for concern. In our model Durbin-Watson test statics value is
1.775 it shows that relatively normal and the result suggest that there is a slight a positive
correlation between the adjacent residuals.
Table 4.11.ANOVA
a
ANOVA

Model Sum of df Mean F Sig.

Squares Square
Regression 3.739 4 .935 25.189 .000b
Residual 1.707 46 .037
Total 5.445 50
a. Dependent Variable: Hotel Performance
b. Predictors: (Constant), Website Marketing, Social Networks Marketing, Email Marketing, Mobile
Phone Marketing
Source: Analysis of Survey data 2021, using SPSS 23.
From The ANOVA test in table 4.11 (F=25.189, DF=50, p <0.01) it shows the table Sig. value
0.01 is greater than the calculated Sig. value 0.000. It reflects there was a statistically significant
correlation between the dependent variable and independent variables at a 1% significant level.

xliii
This means the explanatory variables; E-email marketing, Social Networks Marketing, Website
Marketing, and Mobile Phone Marketing have a great contribution to improving Hotel
Performance in star-related hotels in Bahir Dar city. But it does not mean that all these influences
of electronic marketing tools have an equally significant correlation with hotel performance
level. The F calculated at a 5% level of significance was 32.863. Since F calculated is greater
than the F critical (value = 2.574), this shows that the overall model was significant.

Table 4.12 Regression Coefficient Analysis of the model

a
Coefficients

Model Unstandardized Standardize Collinearity Statistics

Coefficients d
Coefficients t Sig.
B Std. Error Beta Tolerance VIF
(Constant) 1.798 .182 9.873 .000
Email Marketing .140 .063 .257 2.225 .031 .509 1.965
Social Networks .124 .052 .255 2.397 .021 .602 1.660
Marketing
Website .179 .050 .376 3.588 .001 .622 1.609
Marketing
Mobile Phone .060 .035 .266 2.347 .038 .710 1.408
Marketing
Dependent Variable: Hotel Performance
Source: Analysis of Survey data 2021, using SPSS 23
From the above finding we can develop the following regression.

HP=1.798+0.257X1+0.255X2+0.376X3+0.266X4
Std.error (0.182) (0.063) (0.052) (0.050) (0.035)
T values (9.873) (2.225) (2.397) (3.588) (2.347)
R square (adj) = 0.659, F=25.189
*=at 95% level
Where, HP = Hotel Performance

X1=E-mail Marketing
X2=Social Networks Marketing
X3=Website Marketing
X4=Mobile Phone Marketing

xliv
The strength of each predictor (independent variable) influencing the criterion (dependent
variable) can be investigated via the unstandardized Beta coefficient. The regression coefficient
explains the average amount of change in the dependent variable that is caused by a unit change
in each of the independent variable. The larger value of the Beta coefficient of an independent
variable has brought more support to the independent variable as the more important determinant
in predicting the dependent variable. Standardized beta Coefficient analysis shows the
relationship between dependent variable and independent variables. According to Sig. value
X1(Website Marketing), X2(Social Networks Marketing), X3(Email Marketing), and X4
(Mobile Phone Marketing) are statistically significant at a 5 percent significant level. This
means; E-mail marketing, Social Networks Marketing, Website Marketing, and Mobile Phone
Marketing have a great contribution to improving the Hotel Performance in star-related hotels in
Bahir Dar city. Four of the explanatory variables namely E-mail Marketing, Social Networks
Marketing, Website Marketing, and Mobile Phone Marketing each had a significant influence on
hotel performance. This result shows that hotel performance can be influenced by E-mail
Marketing, Social Networks Marketing, Website Marketing, and Mobile Phone Marketing.
Therefore, it can be inferred that the star-related Hotels should continue to scale up (improved)
of using Electronic marketing tools.

xlv
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1. Summary of findings

The following findings were derived from the analysis and interpretations made in the previous
chapter.

 Demographic analysis shows that 74.5 percent of the total respondents were males. When
we see the age group of most respondents, (66%) of the total fall within adults age group
ranging from 25 up to 35 years. The majority of the respondents (64%) were first degree
holders, (49%) of the respondent's experiences fall Less than 5 years concerning with the
respondent's hotel rating status 51% are star rated hotel and the remaining respondents are
unrated hotels.
 The study found that Email marketing, social network marketing, website Marketing were
employed in the star- related hotels in Bahir Dar city to a great extent.

xlvi
 The study found that mobile phone marketing employed in the star-related hotels in Bahir
Dar city to a moderate extent.
 The four explanatory variables namely electronic marketing such as website Marketing,
Email Marketing, Social Networks Marketing have strong positive, and Mobile Phone
Marketing moderate positive relationship with hotel performance.
 Email Marketing has highest correlation coefficient which is (r = 0.695**, p=0.000, p <.05)
at 0.01 level of significant.
 Website marketing has the second highest correlation coefficient (r=0.688**, p=0.000,
p<.05), Social network marketing correlation coefficient (r=0.653**,p=0.000,p<.05), third
strong positive correlation, and Mobile Phone marketing correlation coefficient
(r=0.499**,p=0.000,p<.05) indicate a moderate positive relationship with hotel
performance.
 R-squared is measured the goodness of fit of the explanatory variables in explaining the
variations in hotel performance of explanatory variables (Email Marketing, Social Networks
Marketing, Website Marketing, and Mobile Phone Marketing).
 Adjusted R-square value for the regression model was 0.659. This indicates the explanatory
variables (Email Marketing, Social Network Marketing, Website Marketing, and Mobile
Phone Marketing) in this study explain about 65.9% percent of the variation in the hotel
performance.
 The remaining 34.1 % of the variation in the hotel performance of star-related Hotels Bahir
Dar city is explained by other variables.
 From the ANOVA Test: (F=25.189, DF=50, p<0.01) it shows the table Sig. value 0.01 is
greater than the calculated Sig. value 0.000. It reflects there was a statistically significant
correlation between the dependent variable and independent variables at a 1% significant
level.
 Regression sum of square 3.739 indicates that 4 explanatory variables together influence the
criterion variable.
 The residuals sum of square 1.707 indicate that the influence of the excluded explanatory
variables that are not cover in the study.
 The F calculated at a 5% level of significance was 25.189. Since F calculated is greater than
the F critical (value = 2.574), this shows that the overall model was significant.

xlvii
 The Regression model: show that Email marketing, Social Network Marketing, Website
Marketing and Mobile Phone Marketing positive and statistically significant at a 5 percent
significant level with 95% level of confidence interval that the independent variables
significant influence in the dependent or criterion variable.
 Unstandardized coefficient (B) reveals that the influence level e-marketing under the model
by difference questionnaires measurement units between the explanatory variables were
getting the influence level of each explanatory variable on independent variable.

5.2. Conclusions

The purpose of this study is to evaluate the influence of e- marketing on hotel performance
considering four e-marketing tools namely Email Marketing, Social Networks Marketing,
Website Marketing, and Mobile Phone Marketing in star-related hotels in Bahir Dar city. In
order to accomplish this objective the researcher distributed 56 questionnaires to sample
respondents and collected 51 completely filled questionnaires for data analysis. In addition, the
researcher attempted to identify which of the Electronic marketing tools. Have higher influence
on hotel performance in star-related hotels in Bahir Dar city. Based on the research done it can
be concluded that E-mail Marketing, Social Networks Marketing, and Website Marketing has a
strong positive relationship with hotel performance. E-mail Marketing has highest correlation
coefficient which is (r = 0.695**, p=0.000, p <.05) at 0.01 level of significant. Website
Marketing has the second highest correlation coefficient (r = 0.688**, p=0.000, p<.05) Social
Networks Marketing correlation coefficient (r =0.653**, p=0.000, p<.05), third strong positive
correlation, and Mobile Phone marketing correlation coefficient (r =0.499**, p=0.000, p<.05)
indicate a moderate positive relationship with hotel performance. On grand mean value of E-mail
marketing, Social Network Marketing, Website Marketing are employed in star-related hotels in
Bahir Dar city a great extent but, Mobile Phone Marketing as indicate moderate extent Based on
the research findings it can be concluded that website Marketing, Email Marketing, and Social
Networks Marketing has a strong positive relationship with hotel performance and have
significant influence According to Sig. value on star-related hotels in Bahir Dar city. But, Mobile
Phone Marketing as indicate moderate positive relationship & slight significant influence with
hotel performance.

5.3. Recommendation

xlviii
Based on the results of the analysis and conclusion made the following recommendations are
forwarded which help star- related hotel in Bahir Dar city to improve hotel performance.

 Star-related hotels should use all electronic marketing tools to getting synergistic effects
from the electronic marketing tools that are used for communicate with actual and
potential customers.
 E-mail marketing, Social Network Marketing, Website Marketing, and Mobile Phone
Marketing are highly significant influences on hotel performance. So, Star-related hotels
in Bahir Dar city should focus on electronic marketing tools to scale-up hotel
performance.
 Star-related hotels should work with the telecom company to improve mobile phone
marketing.
 Electronic marketing tools demands well-developed ICT infrastructures, therefore the
respected government bodies should work to develop and expand ICT infrastructures.
 Star-related hotels should use and update the technology resources on time to adapt with
the technological change environment and to improving performance.

5.4. Recommendations for Future Research

In the end, this study investigates the influence of electronic marketing on hotel performance,
but, the variables included in the study were not exhaustive for overall hotel performance. Future
researchers could study by including other variables like service quality, customer satisfaction,
and employee satisfaction other than electronic marketing tools.

xlix
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 Appendix I: Research questionnaire

Gage University College

Department of Marketing Management
A Research questionnaire for Hotel Management staff

Dear Respondent,

First of all, I would like to thank you for your willingness to participate in this study. This
questionnaire is intended to collect data on the “The Effect of Electronic Marketing on Hotel
Performance.” The objective of this research is to evaluating the effect of electronic marketing
on star-related hotels in Addis Ababa City. All responses will be used to conduct a study for the
partial fulfillment of a master’s degree in Marketing Management. Your active participation is
very essential for the success of this study! Your responses also will be kept confidential and will
exclusively be used for this research purpose only.

Thank you very much for your cooperation in advance!

Getnet Muhabaw
Mob.0912941589. Email: [email protected]. Telegram name: G-UNIT. If you have
any ambiguity with regard to the questionnaire please contact me any time by using the above
mentioned address.

General Guides
There is no need of writing your name.
In all cases where answer options are available please put “√” in the appropriate box parallel to
the questions.

Part I: Background Information

1. Gender: Male 159 Female 54

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2. Age: 18-24 37 25-35 142 36-50 33 51-60 0 Above
60 0
3. Education Background: Diploma17 17 University Degree 150 Master Degree Above 46
4. Experience: Less than 5year 104 5 to 10 year 83 11 to 20year 21 Above 20
years 4
5. Hotel Stare Rated Statues: Rated 109 and…… stars Unrated 104

Part II: Scale Questions:

In the questionnaire below we would like you to indicate the extent to which you believe
different types of electronic marketing practicing in your hotel.
 Please tike “√” only once for each question.
 Note: 1= Not at all 2= To Small extent 3= To Moderate extent 4= To Great extent 5= To
Very great extent.
1. Please indicate in your opinion, the extent to which your hotel employs each of the
following forms of E-mail marketing?

Lists of Email Not at all To Small To Moderate To Great To Very

Marketing extent extent extent great extent
activists 1 2 3 4 5
1. Option-in-email

2. Option-out-
email
3. Spam email

4. RSS (real simple

syndication) of
education or
informative
articles
5. if any others
(specify)

2. Please indicate in your opinion, the extent to which your hotels employ each of the
following forms Social networks marketing?

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 S Lists of Social Not at all To Small To To Great To Very
N networks extent Moderate extent great extent
marketing activists extent
1 2 3 4 5
1 Facebook
2 Twitter
3 Telegram
4 Blogs
5 Content
communities (such
as YouTube)
6 if any others
(specify)

3. Please indicate in your opinion, the extent does your company employs the following
forms of Mobile Phone Marketing?

SN Lists of Mobile phone Services? Not at To To To To Very

all Small Moderate Great great
extent extent extent extent
1 2 3 4 5
1 Short Messaging Service/SMS

2 Multimedia Messaging Service

/MMS
3 Bluetooth

4 Infrared

5 Video technology

6 if any others (specify)

4. What is the trend of the following financial and non-financial performance in your hotel
after implementing electronic marketing for the last three years?

(Note: 1= Greatly Decreased 2= Decreasing 3= Constant 4= Improved 5= Greatly Improved)

(Please tike “√”only once for each performance measurement)

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SN Hotel Measurements Greatly Decreasin Constan Improve Greatly
Performance Decrease g t d Improved
d

1 2 3 4 5

1 Quantity Sales volume

2 Revenue
generated

3 Return on
investment
(ROI)

4 Cost Performance
effectiveness within agreed
expense
budget

5 Quality Customer
relationship
satisfaction

6 Margin
achieved

7 Timeliness Results on
time

8 Reports on
time

Thank you for spending your precious time!

lix
 Appendix II: TIME FRAME

No Commenc Completio
Activity Duration
ement n

1. Preparing thesis proposal 2 weeks Feb 15 Feb 23

2. Literature review 4 weeks Feb 24 Mar 30

3. Submission of draft Proposal Apr 10

Collecting feedback from 2 weeks Apr 11 Apr 27

4. Advisor

5. Submission of Final Proposal 1 weeks Apr 28 May 05

Data collection and Administer 1 weeks May 06 May 14

6. questionnaire

Data screening, encoding, entry, 2 weeks May 15 May 30

generating preliminary analysis
7. and interpretation

8. Writing draft 2 weeks Jun 1 Jun 15

Submission of first Thesis draft 2 days Jun 16 Jun 17

9. to Advisor

Collect feedback and 1 weeks Jun 18 Jun 26

10. Restructuring final draft

11. Submission of final thesis 2 days Jun 27 Jun 28

Final Thesis Defense Workshop July 05 August

12. 05/2022

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 Appendix III: PROPOSED BUDGET
No Expense Item Amount(Birr)

1 Travel 3000

2 Telephone card 1000

3 Photo copy 500

4 Print and CD 5000

5 Stationary Materials 2000

6 Miscellaneous 2000

7 Contingency (15%) 2025

8 Total 15525

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