Investigating market orientation and positioning in star-rated hotels in Ghana

Hinson, Robert Ebo, Abdul-Hamid, Ibn Kailan and Osabutey, Ellis L. C. (2017) Investigating market orientation and positioning in star-rated hotels in Ghana. International Journal of Contemporary Hospitality Management, 29 (10) . pp. 2629-2646. ISSN 0959-6119 [Article] (doi:10.1108/IJCHM-02-2016-0075)

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Abstract

Purpose: Market orientation and positioning have been widely recognized as organizational metrics linked to hotel performance. This study offered empirical evidence on the relationship among market orientation, positioning, and hotel performance in Ghana’s (luxury) hotel sector. It also reports on the joint effect of market orientation and positioning on hotel performance in the same sector.

Design/methodology/approach: Three hypotheses were investigated on the relationship between market orientation and hotel performance; positioning and hotel performance; and the joint effect of market orientation and positioning on hotel performance. A survey of star rated (luxury) hotels in the capital city of Ghana was used. One hundred and five (105) responses were used in the analysis. Descriptive statistics, exploratory factor analysis and hierarchical regression were used to test the three (3) hypotheses.

Findings: All hypotheses were accepted. Market orientation and positioning jointly affect hotel performance, and the study provides hotel managers with suggestions on to enhance their performance via market orientation and positioning.

Research limitations/implications: Management perspectives on market orientation, positioning and hotel performance were sought to the exclusion of customers.

Future studies may consider using customer perspectives as well. Practical implications: Hotels should consider adopting market oriented positioning strategies to improve on their performance.

Originality/value: This study is one of the few attempts to systematically investigating the intertwined concepts of market orientation, positioning and performance in a developing economy hospitality context.

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