Professional Documents
Culture Documents
Signature: ___________________
Date: ________________
This project report has been submitted for examination with my approval as a college supervisor
and lecturer of Friends College Kaimosi
Signature: ___________________
Date: ____________________
i
DEDICATION
This is dedicated to God Almighty. He makes all things possible in his time to my dear mom
Angellah Meha, dad, and siblings for their emotional support, financial support and moral
support during the tough time as I completed my project
ii
ACKNOWLEDGEMENT
My sincere appreciation goes to my supervisor, Mrs Carolyne Chebet for her support, council
and guidance throughout the period.
I am also grateful to my mother Angellah Meha and my dad Maurice Meha for encouraging and
love support. You have all helped me significantly this far.
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Table of Contents
DECLARATION..........................................................................................................................................i
DEDICATION............................................................................................................................................ii
ACKNOWLEDGEMENT..........................................................................................................................iii
CHAPTER ONE..........................................................................................................................................1
SALES PROMOTION AND THEIR EFFECT ON CUSTOMER TURNOVER IN RESTAURANTS IN
KAKAMEGA TOWN.................................................................................................................................1
1.1 Background of the study........................................................................................................................1
1.2 Statement of problem.............................................................................................................................1
1.3 Objective of the study............................................................................................................................1
1.4 Research Questions...............................................................................................................................2
1.5 Significance of the study.......................................................................................................................2
1.5.1 Management of the restaurant.........................................................................................................2
1.5.2 Customers.......................................................................................................................................2
1.5.3 Researchers.....................................................................................................................................2
1.6 Limitation of the study..........................................................................................................................3
1.6.1 Language barrier.............................................................................................................................3
1.6.2 Lack of cooperation........................................................................................................................3
1.6.3Wrong information..........................................................................................................................3
1.7 Scope of the study.................................................................................................................................3
CHAPTER TWO.........................................................................................................................................4
2.0 INTRODUCTION.................................................................................................................................4
2.2 Imperial review......................................................................................................................................4
2.2.1 Elements of sales promotion...........................................................................................................4
2.2.2 Sales promotion in restaurants........................................................................................................5
2.2.3 Relationship between sales promotion and customer turnover.......................................................5
2.3 Conceptual frame work.........................................................................................................................6
2.4 Summary...............................................................................................................................................6
CHAPTER 3................................................................................................................................................7
3.1 Introduction...........................................................................................................................................7
3.2 Research design.....................................................................................................................................7
3.3 Target population...................................................................................................................................7
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Table 3.1 population of the research........................................................................................................7
3.4 sampling and sample size......................................................................................................................7
3.5 Data collection methods........................................................................................................................8
CHAPTER FOUR.....................................................................................................................................10
DATA PRESENTATION AND ANALYSIS...........................................................................................10
4.1 INTRODUCTION...............................................................................................................................10
4.2 Response rate.......................................................................................................................................10
4.3 Background information......................................................................................................................11
4.3.1 Name of establishment.................................................................................................................11
4.3.2 Age bracket...................................................................................................................................11
4.3.3 Highest education.........................................................................................................................12
Fig 4.3. Highest education.....................................................................................................................13
QUESTIONNAIRES.................................................................................................................................14
CHAPTER FIVE.......................................................................................................................................17
SUMMARY CONCLUSION AND RECOMMENDATION....................................................................17
5.1 Introduction.........................................................................................................................................17
5.2 Summary of findings...........................................................................................................................17
5.3 Conclusion...........................................................................................................................................17
5.4 Recommendations...............................................................................................................................17
REFERENCES..........................................................................................................................................18
APPENDICES...........................................................................................................................................19
APPENDIX 1; QUESTIONNAIRE..........................................................................................................19
APPENDIX II...........................................................................................................................................22
WORK PLAN...........................................................................................................................................22
Appendix III: Budget.................................................................................................................................23
ABSTRACT..............................................................................................................................................24
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CHAPTER ONE
The need for promotion arises from the intensity of competition. Sellers must somehow attract
customers attention. In the open markets of old days and markets of today ,sellers did and do this
by shouting ,joking with customers and sometimes by holding up a squeling piglet for everyone
to see. There are three faces of customer promotion are;
*Information
*Economic incentive
*Emotional appeal
Information may take the form of advertising the availability of something, incentives are offered
in the form of discounts and emotional appeals are made by displays and of cause by the law
price itself
Sales promotion must provide incentives whether to the distribution channel,the companies own
sales people or to the consumer ,they cost money by definition and must produce additional
volume to pay for the expenditures. Customer turnover is the proportion of your customer base at
the start of a time period like a period of one year that is lost and replaced during the time period
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1.3 Objective of the study
General Objectives
i. To encourage repeat purchases like airlines and hotels successfully, they use rewards
program to encourage customer loyalty.
ii. To provide information to potential customers that aid them in making decision
iii. To look for new market to attract more customers
Specific Objectives
iv. To identify the types of sales promotion in a restaurants.
v. To find out the indicators of customers turnover.
vi. To establish the effects of sales promotion on customer turnover
1.5.2 Customers
When it comes to customers, they acquire products at low prices hence becomes a benefit to
them, they also get new skills and knowledge on how to carry different methods of sales
promotion. They even acquire free samples from sales promoters that is the new product came
into existence, they are given offers that it may attract them
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1.5.3 Researchers
The researchers will acquire more skills on how to handle customers when it comes to sales
promotion. They will also come up with their own means and solution incase they are faced with
challenges or problems.
I. Lack of time will affect the study in that the research will not come up with expositive
results hence rendering the exercise in effective but researcher will use the available time
to finish the study on time and validate the data.
II. Non cooperative responded; It will affect the study that is situations where seniors are not
ready for the researcher, he will instead interview juniors
III. Financial problems; Inadequate capital may affect the study; the researcher will use
available finance for stationary transport and food to ensure the process is effective. This
randous the effectiveness and quality of the result thus the whole project.
1.6.3Wrong information
Wrong information comes in whereby the employees or researchers gives wrong information
about the restaurants or use persuasive language to attract more customers using wrong
information as they do not expect. That is to advertise on low prices they offer which when
customers comes in the prices raises up.
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CHAPTER TWO
2.0 INTRODUCTION
A literature review is a critical and evaluative summary of themes , issues and arguments of a
specific clearly defined research topic obtained from the published and unpublished literature. In
this case sales promotion and their effects on customer turnover in restaurants in kakamega town
we shall evaluate on the following
The time frame at which sales promotion use adverts to build brands and generate interest over
a
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long period of time. It intends to generate immediate business , thus they typically have a limted
time frame . Coupons have expiration dates which drive customers to redeem them within a
certain period of time.
Competition
Sales promotion have their place in marketing even though they tend to instill a higher degree of
price sensitivity among consumers .For new product introduction in competitive markets where
there is a need to familiarize of a group of consumers with a new product, sales promotion are a
highly effective tool and also in established competitive markets where gains in market share
count for the bragging rights the increased share might offer.
Generally there is no long term impact. For established brands , many customers will wait for
the promotion to buy and to take advantage of the lower price
It helps the customer to be familiar with the products and chip in.
Long term loyalty ; every marketing has a unique role but most sales promotion campaigns aim
at creating customer loyalty for a given product. After attracting new customers, long term
product loyalty campaigns initiate the introduction of loyalty programs that reward existing
dedicated consumers .Long term product loyalty campaigns focusing on prices include coupons
and price discounts , while other significant time sensitive price reductions consist of details and
contest such as by one get one free offers.
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Introduces new product and service; the sales promotion campaigns involved consist of discounts
in cash or goods offered to resale markets to stock the new products , while household
consumers receive free samples giving them a chance to test and familiarize themselves with the
new products in order to secure future demands.
Provides a market for the resale of goods; the incentives offered therefore consist of rewards
including price discounts, cash rewards, merchandise discounts and rebates offered to buyers
with large orders.
2.4 Summary
In chapter two we have come across elements of sales promotion .It is communicated to
potential customers and some retailers use medias such as television , radio, newspapers and
magazines to let customers know about current and upcoming discount opportunities.
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CHAPTER THREE
3.1 Introduction
This is a system of collecting data and a description of the research methodology is presented in
this chapter , which comprises of the study design , population, techniques of sampling , data
collection analysis and presentation and the considerations for ethics. Its main purpose is to
explore sales promotion and its effects on customer turnover in catering establishment in
kakamega town
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3.4 sampling and sample size
Sampling techniques was categorised into two , namely; non probability and probability
techniques.
While in non probability sampling, the study subjects do not have a preset chance of being
selected.
In probability sampling , each subject in the population is given an equal chance of being
selected to participate in the research . For the current study , the population is distributed across
all the seven departments was undertaken , which fits into the description of probability sampling
technique.
Sample size for descriptive studies should be between 20 and 10 percent. A proportional
stratified random. Sampling was used to compute size of the sample. A proportional stratified
random sampling is a probabilistic sampling method suitable for selecting individuals from
unequal distributed group consequently, each of the departments formed a stratum and 30
percent of the target employees in the departments formed the sample size. Table 3.2 depicts
proportional of the sample size across the 8 departments in kakamega town hotels
In order to provide for equal chance for every member in the target respondents to be included.
The study utilized simple random sampling. All the 24 targeted lower cadre staff names of
kakamega town hotels were drawn on pieces on pieces of paper per each of the 8 departments.
For each of the departments, the number of pieces of papers corresponded to the names and
number of staff. The papers were then mixed in a box thoroughly after which the required
number of sampled staff was identified for participation in the research. This action undertaken 8
to ensure that all departments are covered.
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CHAPTER FOUR
4.1 INTRODUCTION
This chapter presents a summary of data collected through the use of questionnaires. General
trends are explained using percentages, frequency tables, figures and description of data as a
way to present findings of the investigation . Data collection using questionnaires was analyzed.
The findings are presented as per the objectives and research questions of the study.
Response rate
Percentage
20%
80%
10
4.3 Background information
Findings of the study shows that participation on the study has less than male respondents.
Whereas the males were slightly above half 53%, the female respondents were 47%.
Percentage
Franka Friends Western
17%
52%
31%
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Figure 4.3.2
Percentage
25 to 32 years 32 to 39 years
31%
69%
Findings of the study shows that 25 to 32 years was more compared to 32 to 39 years
Percentage
Certificate Diploma Degree Masters Phd
10% 7%
31%
52%
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Fig 4.3. Highest education
Findings show that 52% of the respondents had attained degree level of education, followed by
31% who had attained diploma and 10% who had attained master’s in education and lastly was
7% who attained secondary certificate of education .
4.3.3.4 In your opinion ,how does sales promotion affect customer turnover in 3 star hotel;
Retains customers especially those who are within a budget when given promotion rates that is
discounts .Also digital marketing has proven to be most effective as travellers use their phones to
check for hotels to spend and promotion ads have a high turnover and resulting in high bookings
on online platforms
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QUESTIONNAIRES
I am Khavetsah Agnes pursuing craft certificate in catering and accommodation operations at
FRIENDS COLLEGE KAIMOSI. The purpose of questionnaire is to collect data for a study
titled SALES PROMOTION AND THE EFFECTS ON CUSTOMER TURNOVER IN
RESTAURANTS IN KAKAMEGA TOWN. Kindly respond to your best. All information shall
be kept confidential.
Yours faithfully
Khavetsah Agnes
Researcher
INSTRUCTIONS
1. Gender
Male ( )
Female ( )
2. Age bracket
18 to 25 years ( )
25 to 32 years ( )
32 to 39 years ( )
46 and above ( )
Certificate ( )
Diploma ( )
Degree ( )
Masters ( )
PHD ( )
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4. Years of experience in hotel industry
2 to 5 years ( )
5 to 8 years ( )
8 to 11 years ( )
Above 11 years ( )
Yes ( )
No ( )
Yes ( )
No ( )
7. Sales promotion comprises of various elements which of the following applies to your hotel
Communication ( )
Price orientation ( )
Time frame ( )
Good environment ( )
Others………………………………………………………………………………………………
….
Very important ( )
Important ( )
Averagely important ( )
Least important ( )
15
Not important ( )
Yes ( )
No ( )
Fair prices ( )
Good services ( )
Hygiene ( )
Food variety ( )
11. In your opinion does sales promotion affect customer retention in your hotel
Yes ( )
No ( )
Great extend ( )
Average extends ( )
13. In your opinion, how does sales promotion affect customer turnover in 3 star
hotel……………………………………………………………………………………………
………………………………
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CHAPTER FIVE
5.1 Introduction
The previous chapter presented result obtain from the quantitative data. This chapter presents the
summary of key findings , conclusion and recommendation of the study.
5.3 Conclusion
From the research it was concluded that sales promotion arises from the intensity of competition
and that main objective of the sale promotion was to combat competition and increase profits.
Many restaurants have experienced more customers in the past two years due to fair prices, good
services, hygiene and food variety.
5.4 Recommendations
The researcher recommends to the management of catering establishment to use modern
techniques of sales promotion to combat competition and improve on the profitability of the
establishments
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REFERENCES
Baker,TL (1994). Doing social research (second year) New York: MC Graw Hill Inc.
Bareket Bojmel,L, Hochmon ,G& Ariely ,D (2014) its (not) all about the Jacksons.testing
different type of short term bounces in the field, general management. Advance publication
Kuria .S. Wanderi, P and Ondigi, A (2011)Factors influencing labour turnover in 3 and 5 star
rated hotel in Kakamega county Kenya, international journal in humanities and social science
volume 1 no. 20 pg 195 to 201
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APPENDICES.
APPENDIX 1; QUESTIONNAIRE
I am Khavetsah Agnes pursuing craft certificate in catering and accommodation operations at
FRIENDS COLLEGE KAIMOSI. The purpose of questionnaire is to collect data for a study
titled SALES PROMOTION AND THE EFFECTS ON CUSTOMER TURNOVER IN
RESTAURANTS IN KAKAMEGA TOWN. Kindly respond to your best. All information shall
be kept confidential.
Yours faithfully
Khavetsah Agnes
Researcher
INSTRUCTIONS
1. Gender
Male ( )
Female ( )
2. Age bracket
18 to 25 years ( )
26 to 32 years ( )
33 to 39 years ( )
46 and above ( )
Certificate ( )
Diploma ( )
Degree ( )
19
Masters ( )
PHD ( )
2 to 5 years ( )
5 to 8 years ( )
8 to 11 years ( )
Above 11 years ( )
Yes ( )
No ( )
Yes ( )
No ( )
7. Sales promotion comprises of various elements which of the following applies to your hotel
Communication ( )
Price orientation ( )
Time frame ( )
Good environment ( )
Others………………………………………………………………………………………………
….
Very important ( )
Important ( )
20
Averagely important ( )
Least important ( )
Not important ( )
Yes ( )
No ( )
Fair prices ( )
Good services ( )
Hygiene ( )
Food variety ( )
11. In your opinion does sales promotion affect customer retention in your hotel
Yes ( )
No ( )
Great extend ( )
Average extends ( )
13. In your opinion, how does sales promotion affect customer turnover in 3 star
hotel……………………………………………………………………………………………
………………………………
21
APPENDIX II
WORK PLAN
Activity Time
Milestone I May 2022
Milestone II May 2022 – Sep. 2022
Milestone III October 2022
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Appendix III: Budget
Activity Cost (Ksh)
Internet 1000
Printing 1500
Binding 200
Miscellaneous 500
Transport 500
Typing 1000
Total 4700
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ABSTRACT
The project was about sales promotion and their effects on customer turnover in hotels in
Kakamega town. It’s objectives were to identify the types of sales promotion in restauranants, to
identify the indicators of customer turnover and also to establish the effects of sales promotion
on a customer turnover. The population in hotels were high due to its food quality, hygiene and
environment. The data was collected using questionnaires.
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