Distribution Channel

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FACTORS INFLUENCING CHOICE OF DISTRIBUTION CHANNEL IN THE TOURISM INDUSTRY IN KENYA.

A SURVEY OF TOUR AND TRAVEL COMPANIES IN NAIROBI

BY

DECLARATION

I declare that this is my original work and has not been submitted at any academic institution for examination purposes.

Signed…………………………………………..Date………………………………………..

ROSE

This Research Proposal has been submitted with my approval as the University Supervisor.

Name……………………………………..

Designation………………………………………

Signed…………………………………………Date………………………………………….

TABLE OF CONTENTS

DECLARATIONi

TABLE OF CONTENTSii

CHAPTER ONE:1

INTRODUCTION1

1.1 Background of the Study1

1.1.1 Distribution Channels in the Tourism Industry2

1.1.2 Tourism Sector in Kenya3

1.2 Statement of the Problem5

1.3 Objectives of the Study6

1.4 Research Questions7

1.5 Justification of the Study8

1.6 Scope of the Study8

1.7 Limitations of the Study9

1.8 Definition of Terms9

CHAPTER TWO:11

LITERATURE REVIEW11

2.1 Introduction11

2.2 Theoretical Review11

2.3 Conceptual Framework16

2.4 Empirical Review20

2.5 Critique of the Literature22

2.6 Research Gap24

CHAPTER THREE:26

RESEARCH METHODOLOGY26

3.1 Introduction26

3.2 Research Design26

3.3 Population27

3.4 Sample Size27

3.5 Sampling Technique28

3.6 Data Collection Instruments and Procedure28

3.7 Pilot Test28

3.8 Data Analysis and Presentation29

REFERENCES31

APPENDICES36

Appendix I: Letter of Introduction36

Appendix II: Questionnaire37

CHAPTER ONE:

INTRODUCTION

1.1 Background of the Study

As globalization of markets is going on around the world, the reduction of trade barriers and the development of information technology have contributed significantly to the internationalization of service industries (Javalgi and White 2002). In today`s world, the travel and tourism industry is among the world’s largest, key economic sectors, growing faster and predicted in the future to be one of the top super service industries apart from telecommunications and information technology (Wason 2001).

Tourism distribution is the way in which tourism, and tourism–related services and products, are delivered to consumers; the activities involved, and who participates in the channels used. This area has been increasingly receiving the attention of researchers in different countries. It’s crucial role in businesses‟ marketing strategies is just one of the reasons it is attracting attention. Increasingly, it is being recognized as a critical source of competitive advantage for firms (Pearce and Taniguchi, 2007). Rosenbloom et al. (2004) add that it is becoming too difficult to hold onto a competitive edge via product, pricing and promotional strategies alone. Further, Knowles and Grabowski (1999) argue that the importance of distribution as an element in the marketing mix has shifted over the last four decades. Previously considered as having the least importance, distribution is now of primary importance. Tan (2002) emphasizes the importance of distribution as a function of marketing; without it, a product cannot be made available for purchase in the market.

Tour operators play an important role in promoting safari packages, beach packages, and other Kenyan tour packages. The Tour operators distribute packages either directly to travelers or indirectly through travel agents locally or internationally and facilitate information exchange on prices, special promotions, facilities and services in tourism supply chain (Tepelus 2005). Generally, tour operators can influence the tourists` choice of destination, the strategies of supply chain partners and the development plans of destinations. Also, tour operators can add more value to satisfy travelers. Tour operators have a strong incentive to...
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