THE EFFECTIVENESS OF ADVERTISING ON

ORGANIZATIONS PROFIT MAXIMIZATION

(A CASE STUDY OF SOME SELECTED HOTELS IN ILESA CITY)

WRITTEN BY
AGBOOLA, JUSTINAH D. – 1923210011
AJELETI, SAMUEL O. – 1923210012
AJISAFE, ADEBIMPE D. – 1923210013
ALABI, MARY O. – 1923210014
ALANI, TAOFEEK A. – 1923210015

SUBMITTED TO

DEPARTMENT OF MULTIMEDIA TECHNOLOGY,

FACULTY OF COMMUNICATION AND INFORMATION
TECHNOLOGY,
OSUN STATE COLLEGE OF TECHNOLOGY, ESA-OKE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE AWARD OF NATIONAL DIPLOMA (ND) IN
MULTIMEDIA TECHNOLOGY.

SEPTEMBER 2021

1
 CERTIFICATION

This is to certify that the project work has been carried out by Agboola,
Justinah D. – 1923210011, Ajeleti, Samuel O. – 1923210012, Ajisafe,
Adebimpe D. – 1923210013, Alabi, Mary O. – 1923210014 and Alani,
Taofeek A. – 1923210015 in department of Multimedia Technology,
Faculty of Communication and Information Technology, Osun State
College of Technology, Esa-Oke.

__________________________ __________________
Supervisor‟s Name Signature and Date

__________________________ __________________
H.O.D‟s Name Signature and Date

2
 DEDICATION

This project is dedicated to Almighty God, the owner and giver of wisdom
and knowledge and to the Holy Spirit, the Great teacher, because man plans
his way but, God directs his steps. May his name be highly glorified. Amen.

3
 ACKNOWLEDGEMENT

First and foremost, my gratitude goes to God Almighty, who has been so
merciful and generous in my life.

I am highly indebted to my parents who have vowed to leave no stone

unturned in their quest to give me formal education. May God bless them.

Last but not the least, when a tedious job has been done, one has to refer
back and think who and who contributed towards the success of the job. As
a matter of fact, I must acknowledge my debt of gratitude to my project
supervisor, Mr./Mrs. ……………………………..without whose diligent
guidance and advice this study would not have seen the light of the day.

I also wish to place on record the invaluable help and commitment rendered
by my friends and well-wishers for the moral and financial support given to
me throughout the course of my study.

My sincere thanks go to all those who have assisted me in one way or

the other during the collection of materials and data necessary for the
research work who in spite of their crowded responsibilities still had time to
provide me with a good number of relevant materials for this work.

Finally, my special thanks go to my parents Mr. & Mrs.

………………………… also my humble sisters and brothers for their
understanding, love, caring and financial assistance in the time of
difficulties throughout the period of my staying in the school.

My prayer is that God will reward those that contributed immensely for me
towards this project directly or indirectly.

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 ABSTRACT

This research work is a survey on the effectiveness of Advertising in

the maximization profit, with survey of some selected hotel business in Osun

State. Among the objectives of this study is to find out whether the

advertisement on hotel services and products actually lead to profit

increase. This problem I necessary in view of the fact that some people do

believe that hotels could go on with their businesses with or without

advertising. Respondents were randomly selected from Ilesa in Osun State

and the data they provided were analyzed with simple percentage and the

statistics techniques. The result obtained indicated the effective advertising

is a necessary stimulant of profit maximization in hotel business. It also

shows that the awareness level of hotel advertising by the public is low. The

study was able to show that television remains the most fastest medium of

hotel advertising, closely followed by Radio. Finally with some

recommendations proffered. The conclusion was also drawn based on the

result of the findings.

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 TABLE OF CONTENTS

Title page

Certification

Dedication

Acknowledgement

Abstract

List of tables

Table of contents

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 Introduction

1.2 Statement of problem

1.3 Objective of the study

1.4 Research questions

1.5 Research hypothesis

1.6 Significance of the study

1.7 Scope of the study

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CHAPTER TWO
REVIEW OF LITERATURE
2.1 Introduction

2.2 Summary of the review

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY

3.1 Sources of data

3.2 Sample size

3.3 Sample selection techniques

3.4 Limitations of the study of data analysis techniques

CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Questionnaire distribution and returns

4.2 Analysis of data

CHAPTER FIVE
Summary, discussion, recommendation and conclusion
References

Bibliography

Appendix

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 CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 INTRODUCTION
Prior to the era of industrial revolution, the pattern and method of

salesmanship was both crude and cumbersome because the gap between the

productive and consumption sectors of society was small and manageable.

However with the present complication and sophistication among both the

producers and consumers occasioned by high level of economic and

technological developments, business are now re-shaping, re-focusing, re-

positioning and re-directing their operations and marketing strategies in

order to face obvious challenges posed but modern day marketing.

Every business concern has a major objectives for which it was

established but whatever may be the goal, the overriding force undoubtedly

remains profit maximization.

To accomplish the foretasted, these business make conscious efforts

of findings out what their customers want, producing them, creating the

needed awareness on the availability of these goods and services and

offering them at the right place, time and cost. It is by so doing that such a

business can assuredly claim greater percentage of the market share and at

the center of these activities is the pivot, the stimulant, the propelled, the

sole of business called advertisement.

8
 Advertising as one of the strangest promotional tool remains a strong

force in the hands of business entities. A popular saying has it that, if you do

not blow your triumph, no body is going to do that for you, for only when

actually know where you are. Advertising does this and more for

organizations especially the hotel business. It creates awareness, package

the product services etc. present it to the intended consumer and assists him

in making the right choice.

The following definitions and opinions by some authorities and

schools of thought on the meaning and roles of advertising, will perhaps

give more insight into the concepts.

According to Staton W.I, advertising consists of all the activities in

presenting to a group of non-personal oral or visual openly sponsored

message regarding a products services or idea.

Jones (1955:14) sees it this way: in England in the early days of the point to

twin the attention of voters.

The American marketing association (AMA) defines it as:

An paid form of non- personal presentation and promotion of ideas and

services by an identifies sponsor.

The advertising Age (1932:4) an Ad magazine) has a summary of the views

of some professionals in the filed thus: advertising is the printed written

spoken or pictured representation of a person, product, services or

9
movement openly sponsored by the advertiser and at his expense for the

purpose of influencing sale, use vote or endorsement

Finally, Starch (1966:2) sufficiently defines advertisement as: the

paid form of mass communication designed to influence people to favour a

product in order to induce them to buy it.

From the foregoing definitions and views we can begin to see that

advertisings has the following more purpose for business, especially the

hotel entities:

1. To create awareness on the availability of a product uses, vote.

Person, idea, etc.

2. To educate the target user on the constituents of what is being

advertised.

3. To offer other services, such as how to use the product, where to

get it, what the cost is etc.

4. To induce sales.

5. Ultimately to increase and maximize profit thereby enhancing the

revenue base of the business –hotel

These (above) are only a tip of the iceberg on what advertising is capable

doing for hotel business.

1.2 STATEMENT OF PROBLEM

Hotel businesses market, their goods and services to both internal

and external publics in order to real profit for further survival and growth of

10
the variables. Advertising as one of the variable of the marketing

communication helps in actualizing not only marketing objectives of the

organization

It is however, said to note that some hotels especially in Ilesa hardly

utilize or avoid themselves of the unique services offered by modern

advertising. In some cases, it is hard to identify the location of these hotels

what they offer, their modus operandi and the likes to such (these hotels) the

minimal revenue accruing to the business is enough. Therefore to involve

advertising is to insure unnecessary cost, they ignorantly consider

advertising a chasmal waste of time and resources. This indeed is a sad

commentary.

The unavoidable consequences are:

 These hotels remain perpetually hidden and unknown.

 They end up operating below their capacities.

 Business yields continually decrease over the years.

 Some end up paying the supreme sacrifice of untimely

demise.

It is therefore the intention of this study to critically review the likely

benefits hotel business will make in terms of profit maximization by

availing themselves and using the communication tool of advertising.

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1.3 OBJECTIVES OF THE STUDY

The prime objective of this study is to find out the effectiveness of

advertising in profit maximization of hotel business at Ilesa in Osun State.

Additionally, the study will also aim at the following th determine the

general impact of advertising on consumers.

To determine the extent of consumer awareness of hotel

advertisement.

To identify what consumer patronage of these hotels are as a result of

advertising.

To make recommendations in line with our observations.

1.4 RESEARCH QUESTION

Does effective advertising lead to increase in profit of hotel business

in Ilesa urban

Are customers and the general public aware of hotel advertisement?

To what extent do these adverts influence customer patronage of

these hotels?

What medium of advertising is most effective for hotel

advertisement?

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1.5 FORMULATION OF HYPOTHESIS

Ho: the effectiveness of advertising leads to profit maximization of

hotel business at Ilesa urban.

Hi: The extent of customer and the general public awareness of hotel

business is unsatisfactory.

Ho: Advertising influences customers patronage of hotel business.

1.6 SIGNIFICANCE OF THE STUDY

The study will be of importance to advertisers, hotel business and the

general public.

It is anticipated that results from this study will help to evaluate and

identify better ways of making hotel advertising and business operations

more effective.

It will additionally add to the existing body of knowledge of

advertising and other related fields.

1.7 SCOPE OF THE STUDY

The study will cover only major hotel at Ilesa in Osun State. Hotels

outside this zone will not be studied so as to make more realistic

investigation.

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1.8 LIMITATION OF THE STUDY

Time and money constant constituted a serious log in the wheel of

progress of this study

Literacy level and the culture of secrecy nearly hampered the success

of the work pressure of work was also a major source of worry to the

researcher.

With all sense of humility, the researcher lacked the requisite expert

knowledge on data analysis- the use of high scientific equipments such as

the computer which could have aided and speeded up the effective analysis

of collected data, such aspects of the investigation were done normally.

14
 CHAPTER TWO

LITERATURE REVIEW

2.0 INTRODUCTION

The basic need for marketing a product is to bring it to the notice and

reach of the prospective target market for their maximum consumption and

satisfaction. To accomplish these objectives their concerned usually make

genuine effort to ensure that such goods and services are produced and

provided in such a way to general, the needed appeal to the ultimate

consumer through proper planning and promotion.

Like any other elements in an organization (hotels) promotional mix

advertising in the words of Wertz (1970:406) aims primarily at moving

potential buyers from a state of ignorance to a state of awareness. These

message (advertisement) enlighten the consumer on the usefulness or

effectiveness of a product, services or idea and consequently creates in the

consumers, a desire to posses such product services, etc, to act favourably

on a product service or idea,

Commenting on the unique role of advertising, Bogert (1970:71)

asserts that advertising is intended to persuade or pull people towards a

product who ought not otherwise be impelled towards a competing brand.

Basically, the fundamental goals of advertising is to stimulate the

needed awareness for a product, therefore convince the target customer

15
towards accepting the product and finally prompting familiar to art

positively by buying or processing the product. To actualize this, Bell

(1966:37) maintain that advertising must gain the consumers‟ attention

attract his interest by brining him to the stage of understanding and also

create a desire for the product benefit and lastly prompt him to action

2.1 POSITIONING

Positioning remains the icon of modern marketing communications. It

remains the most outstanding the most prominent and most compelling

portal techniques employed by most modern advertising professional in

order to advance their wares in the market.

Position could be as that standing edge that places a product, idea or

services high above the others. It is so central to modern advertising such

that most advert professional invest more in it. Perhaps that is why Segger

(1982:37) asserts that the primary role of advertising is to effect positioning.

Adelani (2021:43) was quick to point out that in the sphere of

advertising productions and marketing communications positioning is

highly crucial because it largely determine the perception and performance

of whatever is being advertised in a real market situation.

Adelani (2021:47) goes ahead to offer tips on his proper positioning

could be effected. He insists that the following questions have to be

addressed in the light of current market realities:

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  What position do we want to own?

 What companies must be out gained if we are to establish

that position?

 Do we have enough marketing resources to occupy and hold

the position?

 Do we have the guts to stick with one consistent positioning

concept?

 Does our creative approach match our positioning strategy?

Adelani went ahead to suggest the having addressed these questions,

that another step is to address the issue of positioning strategy within

the spectrum of the standard positioning elements namely:

a. Target market: this refers to the group for which the product

is meant.

b. Consumer benefit: the benefits the consumer is to derive

from the use of the product

c. Product categorization: the shetling of the product into

category needs.

d. Use pattern: a definite direction on production usage.

e. Price statement: proper matching of price with product

quality. Price is essentially an index of product quality and

target market.

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 f. Image statement: this refers to the portrayal of the image

level of a product and determine show the product is

perceived.

g. Appeal statement: the obvious appeal the advertise went is

ending out to the target market. It could be based on love,

sex, immortality, pleasure, fear, masculinity, ferminity

security, egotism, Varity, health etc. care should be taken to

search out the proper appeal for a given product. Its strong

use would spell down for the advertise.

Adelani concludes by affirming: if advertising is to perform its task of

selling an idea, a product or services, candidate or movement, it must be

firmly rooted in a sound positioning foundation dug out from the bedrock of

research and modern marketing concepts to do the contrary, is to connote

business disaster.

Hotellers need advertising positioning move than nay other business.

This is consequent on the nature of services they present and offer to people.

If their business and services are not properly positioned to lure and catch

the attention of the customers, they will definitely, not make any reaching in

terms of large market share, and greater profitability to achieve this, they

need to prepare media selection for their advertisement.

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2.2 MEDIA SELECTION

In selecting or taking the decision as to the choice of media for a

particular advertisement, hotel proprietors or their advertisers have to

consider the type of product, service or idea, they have to consider first, the

type of product to be advertised the audience to be reached the cost

implication, the frequency of reach and host of other variable.

Basically, two media exist- the print and electronic/broadcast media.

The print covers such media as the newspaper, magazines, journals, leaflets,

posters, handbills, tracks, catalogues and even books. Except for the good

quality embellishments it hardly appeals to the illiterate audience. They also

do not offer the needed forum to demonstrate the physical attributes of some

products, or service. However, the reach is enormously encouraging

permanence‟s, depth, convenience, visual impact, among others stand for

these media.

The broadcast/electronic media on the other hand over such media a:

the television. Radio, cinema, video, etc. hotels can mail themselves of the

unique attributes of these media in repositioning and marketing their

businesses far and wide – persuasiveness ambiguity, immediacy, flexibility,

behave ability etc.

A combination of the media will assuredly give the hotel advertisers

the desired results. This is because the success or otherwise of modern

advertising depends much on the media. Indeed, modern advertising is all

19
about the media. It is the media that say it all. The medium is the beginning

of advertising wisdom. This proper media selected and planning are

paramount for effective advertising plan. It is this decision that will

determine the success or otherwise of business, and the attendant depth of

profit to be made and maximized.

The earlier the hosteller know this, the better for them

SUMMARY OF THE REVIEW

The above named Bell (1960:62) posits that the function of

advertising is stimulate wants to make people work harder and to learn

more. Advertising brings about changes that primarily influence the style of

life manner, moral taste and standard of entertainment which sooner or later

affect the basic patter pf behaviour.

Contribution further, Agu (1990:20) asserts that his role of

advertising is important and crucial in all levels of economic development,

and that it is relevant in any system of economic management be it capitalist

or communist.

The major task of advertising in the opinion of Okoro (1995:36) is

said to be one of missionary conversion that is making non-purchasers of a

given product into purchasers of the product or re- enforcing brand loyalty

or projecting the corporate, Okoro insist advertising must accomplish

specific tasks within the communication terrain.

20
 Everet Royers in his model, points out that advertising goes through

six stages, namely from unawareness to awareness, to elicit interest to

affecting evaluation, to stimulating trial and finally to ensure that product

trails lead is to repeat purchases that would develop into the habit of

adopting the product.

Okoro (1995:35) however, advised that advert to play its role

effectively, the product for sale.

 Must be good

 Must be in tune with the times

 Must have a significant benefits for the consumer.

 Must fall within the price range of similar product.

 Must maintain a standard quality all the times in addition to

these.

 A potential market for the product must warrant the

advertising

 The product must be interested in selling the product under

its own brand name.

 The firm should have the ability to handle an increased

volume of sale.

In the marketing process advertising has the mandate to:

i. Introduce a new product into the market

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 j. Announce prices or price charges

k. Announce new packaging

l. Educate people on how to use the product.

m. Correct false impression or information about a brand.

n. Encourage or stimulate the trade or sales force.

o. Remind people of the availability of the product.

p. Announce distributor‟s name or location of out lets, or

available after sales service

q. Announce an organizations contributions to the development of

the society, by way of taxes, employment scientific discoveries

corporate philanthropy etc.

An organizations advertising effort is the cutting of its entire

competitors programme. It is in the advertising areas that most forms, find a

basic marketing opportunity. The difference and advantage in the overall

marketing effort can be accomplished through effective advertising. A

competitive marketing programme is one that includes a strong promotional

effort.

The major impetus underlying on organization‟s promotional effort is

usually the desire to increase the business fields.

This according to Jones (1992:12) can best realized through a well

focused advertising. Jones maintains that any business not desirous of

22
increased portability is either a social philanthropy a charity or has cost

touch, with reality.

To achieve the above hoteller have to position their business (hotels)

through their appropriate media so a to get the desire response of awareness,

interest and purchase which ultimately will generate the desired

profitability.

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 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

This section of the study shall try to explain the research procedure

used to arrive at the various conclusions.

Thomas and Jones (1991:7) defines research design as the basic plan

which guides the idea collection and analysis phase of the specified the

project. It is the framework which specifies type of information to be

collected, the source of data collection procedure.

Hoistin (1965:11) sees design as a plan for collecting and analyzing

data in order to and were investigations question or researchers question.

While Nworgu (1991:32) believes that the idea of seeking for extent

data from additional source is that:

“In spite of the age long attempts by man to fully comprehend

himself, what he knows today about himself, still remains significant when

compared to what there is to be known. The more than enquires into the

unknown” of his existence, the more he realize how little he actually knows.

The fact that uncovered is tentative making man restless and perpetual

meeker of unknown facts,,”

There is no single approach to research design, they are typically

classified according to the nature of the research objective or the research

type. However, the are predominantly two types of research design: which

24
are exploratory and conclusive research. The former is associated with

identify problems or opportunities, etc. the latest on the other hand answers

specific questions that will help consumer in making decisions and usually

requires no further probing before its use. for the purpose of this study

therefore, emphasis will be laid on discovering the general nature often

problem at hand and the variable that related to it.

In line with this, the researcher wishes to investigate the extent

customers awareness level of hotel advertisement and the relationship

between hotel profit maximization and effective advertisement.

3.1 SOURCES OF DATA

The data to be used in this study will be obtained from primary and

secondary methods of data collection.

3.1.1 PRIMARY DATA

This will involve the use of questionnaire oral interview and direct

observation.

3.1.2 SECONDARY DATA:

They are information that are already in existence and usually come from

such areas as textbooks, library. Materials, hotels- publication, magazines

etc,

The survey research method will be used to execute this research.

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3.2 RESEARCH DESIGN

When research is conducted in the idea concepts or product

development stages very important the group of consumers Hisrish (1978).

A subject of consumer should be selected, so that the total potential market.

Is represented.

3.3 POPULATION AND SAMPLE SIZE DETERMINATION

For manageability, the population of Osun is chosen as the population

figure or the universe for the study. The whole of this population cannot be

made use, anther, only a portion of the universe which have all the

characteristics of the population (sample) will be used. Hence the chosen

hotels (eight) will represent the hotels at Ilesa in Osun State.

3.4 SAMPLING PROCEDURE

The sampling procedure adopted for the study is quota sampling. This

means that all the elements of the population with desired characteristics

will be induced in the sample.

The hotels selected for the study include, Kings Suite Hotel, Sambeat

Hotel, GrooveHills Hotel, Ayeni Foundation Hotel, Aryhills Hotel, Glorious

Hotel , Lawrence Kay Hotel and Zenabab Hotel.

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3.5 Sampling determination

According to Williams and Freud (1979) the sample when the

universe is large given a confidence level of 95 percent (r=1.96) tolerable

error limit is 5 percent.

n=X2 (p.q)

e2

When the values are not available or given they are often estimated

by the researcher for this study, the values were not given. There fore the

following estimates were made and used.

N = sample size

z = value of standard derivation of 95-1.9.6

d = assume success rate = 85%

d = 15%

e = limit of tolerable error or substituting in the formula, we have

n= (1.96)2 (0,85)(0,15)

0.52 = (195.9 ) approx = 200)

3.6 SAMPLE SIZE

Eight hotels were studied; the allocation of questionnaire copies to the

organizations was an equal basis with each having twenty –five (25) copies

Kings Suite Hotel 25 copies

Sambeat Hotel 25 copies

27
 Groove hills Hotel „ “

Ayeni Foundation Hotel „ “

Aryhills Hotel „ “

Glorious Hotel „ “

Lawrence Kay Hotel „ “

Zenabab Hotel „ “

Total 200 copies

The 200 questionnaire were administered to the sample to generate

data, 25in each stratum. secondary data was also collected buy the

researcher himself

3.7 DATA ANALYSIS

Data would be analyzed using data distribution tangles and

parentages. The analysis would focus on the opinion held by each stratum

on the subject matter. Necessary demographic variables were analyzed. The

chi-square statistics was used to test the hypothesis.

28
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND DESIGN

This chapter presents the analysis of discussions of the results

therefore. . The data analyzed were reviewed accordily with a view to

testing the operational hypothesis already postulated in chapter one of this

study.

QUESTIONNAIRE DISTRIBUTION AND RETURNS

The data from completed questionnaire were collected and coded to

field the tables present in this chapter. A total two hundred (200)

questionnaire were distributed equally (twenty five questionnaires forms

each) to the eight selected organization (hotel) within Ilesa in Osun State,

out of 85% eighty five prevent were duly completed and returned. Thus, the

researcher worked with eighty five percent of the sample size for the

analysis. below shows the analysis to the information generated from the

data.

TABLE 1: QUESTIONNAIRES DISTRIBUTION AND RETURNS

Name of No of forms No of forms Percentage

organization distributed received
Kings Suite Hotel 25 24 96

29
Sambeat Hotel 25 19 76
Groovehill Hotel 25 20 80
Ayeni Foundation 25 21 84
Aryhills Hotel 25 23 92
Glorious Hotel 25 20 80
Lawrence Kay 25 20 80
Zenabab Hotel 25 23 92
Total 200 170 85

From the table one (above )it is clear that eighty five percent (85%)

overall response rate was recorded (170of the 200 questionnaire were

returned) since the response rate is above three quarters of the sample size it

therefore implies that the number of questionnaires completed and returned

is large enough to lend credibility

ANALYSIS OF DATA

RESEARCH QUESTION ONE

Does effective advertising lead to increase in profit of hotel business,

at Ilesa in Osun State.

Too determine this position let‟s turn to response in question number

thirteen (13).

QUESTION 13:

Do you think that effective advertising increases the profitability of

hotel?

RESEARCH QUESTION TWO

Are customers and the general public aware of hotel advertisement?

Question eight” are upon aware of advertisement by these hotels?

30
TABLE TWO EFFECTIVE ADVERTISING AND PROFITABILITY
OF HOTELS
Options Frequency of Percentage of
response response
Yes 158 92.94%
No 7 4.12
Not sure 5 2.94
Total 170 100

Yes – 158 x 100 = 92.94%

170 1

no – 7 x 100 = 4.12%

170 1

Not sure – 5x 100 = 2.94%

170 1

TABLE 3 CUSTOMER AWARENESS LEVEL OF HOTEL ADVERT

Name of Yes No Not sure Total

organization
Kings Suite Hotel 24 0 0 24
Sambeat Hotel 0 18 1 19
Groovehill Hotel 0 20 0 20
Ayeni Foundation 21 0 0 21
Aryhills Hotel 0 23 0 23
Glorious Hotel 1 18 1 20
Lawrence Kay 0 17 3 20
Zenabab Hotel 0 23 0 23
Total 46 119 5 170

Yes – 46 x 100 = 27.06%

170 1

31
no – 119 x 100 = 70.00%

170 1

Not sure – 5x 100 = 2.94%

170 1

From the facts generated above it is clear that the customers and

members of the public are not aware of advertisements from these hotels.

With the exception of hotel presidential and royal palace hotel, others hardly

advertise.

RESEARCH QUESTION THREE

To what extern do these advert influence customers patronage of

these hotels?

We will analysis these data using information contained in question

number eleven

QUESTION 11

To what extents have these adverts influenced your patronage of these

hotels?

TABLE 4 HOTEL ADVERT INFLUENCE ON CUSTOMERS

Options Frequency of Percentage of

response response
Very extent 96 56.47
Great extent 35 20.59
Average 18 10.59
Below average 14 8.23
Never been influenced 7 4.12
Total 170 100

32
RESEARCH QUESTION FOUR

What medium of communication is most effective for hotel

advertisement?

To determine this question number fifteen comes handy.

Which of the mass media of communication do you consider most suitable

for hotel advertisement?

TABLE 5 THE BEST MEDIUM FOR HOTEL ADVERTISEMENT

Media Frequency of Percentage of

response response
Television 69 40.59
Radio 57 33.53
Newspaper 18 20.59
Website 13 7.65
Posters 4 2.35
Bill boards 9 2.4
Others, handbills – 4 2.35
brochure, catalogue
Total 170 100

TESTING OF HYPOTHESIS

The hypothesis earlier formulated in chapter one of this study will be

tested based on the response obtained from the questionnaire forms.

TESTING OF HYPOTHESIS 1 (HI)

The working (null) hypothesis and hypothesis are presented thus:

Ho: The extent of customer awareness of hotel advertisement is satisfactory

33
Hi: The extent of customer awareness of hotel advertisement is

unsatisfactory

This hypothesis was formulated to ascertain the awareness level of

hotel customer of hotel advertisements.

The statistical toll used in testing the outcome (result) is the chi-

square (X2)

ie X2 = (Fo-Fe) 2

fe

where fo = observed frequency

fe = expected frequency

DECISION RULE:

Reject the null hypothesis (Ho) if X2 calculated is less than X2 table value at

95% confidence level with 0,05% level of significance; otherwise, accept.

To test the hypothesis information on table three is used

TABLE 6 CALCULATION OF CHI-SQUARE X2 STATISTICAL

FOR THE DETERMINATION OF AWARENESS LEVEL OF

CUSTOMERS OF HOTEL ADVERTS

Organization Yes No Not sure Total

hotels
oi ei oi ei oi ei
Kings Suite Hotel 24 6.49 0 16.8 0 0.71 24
Sambeat Hotel 0 5.14 18 13.3 0.56 19
Groovehill Hotel 0 3.41 20 14 0 0.59 20
Ayeni Foundation 21 5.68 0 14.7 0 0.62 21
Aryhills Hotel 0 6.22 23 16.1 0 0.68 23
Glorious Hotel 1 5.68 18 14 1 0.59 20

34
Lawrence Kay 0 5.68 17 14 3 0.59 20
Zenabab Hotel 0 6.22 23 16.1 00. 68 23
Total 46 A 119B 5C 170

Note: expected values above were derived by solving (A x A)b for row I

Column 6

Given df = *v-1) (D-1)

Where r = number of row

D = d\\number of column

Df = (3-1)(6-1)

= 2 5
df = 01
X2 = 10
X2 = (Fo-Fe) 2
fe
F0 Fe Fo-Fe (Fo-fe) 2 (Fo-Fe) 2

24 6.49 17.51 306.60 47.24

0 5.14 5.14 26.42 5.14
0 5.41 5.41 29.27 5.41
21 5.68 15.32 234.70 41.32
0 6.22 6.22 38.69 6.22
1 5.68 5.68 21.90 3.86
0 6.22 6.22 32.26 5.68
0 168 4.7 38.69 6.22
0 13.1 6.9 82.24 16.80
18 14.00 4.0 22.09 1.66
20 16.1 3.0 36.00 2.57
0 14.00 6.9 46.09 14.70
23 14.00 0,71 47.61 2.96
18 16.1 0.44 16.00 1.15
17 0.71 059 16.00 0.64
23 0.59 0.62 9.00 2.96

35
0 0.68 0.68 47.61 0,71
1 0.59 0.41 0,50 0.35
0 0.59 2.41 0,35 O,59
0 0.68 0.46 0,38 0.62
0 16.1 0.62 0,46 0. 68
1 0.59 0.68 0.17 0.29
3 0.59 0.41 0,46 0.29
0 0.68 0.46 0.17 0.68
168.73
Comment:

Computed value of X2 = 168.73, while X2 table value = 8.815.

Therefore since X2 calculated is greater than the table value (168.73>

8.815), the null hypothesis (Ho) is hereby rejected, while the alternative

hypothesis (Hi) is accepted. Hence the alterative hypothesis, that the extent

of customer awareness of hotel advertisement is unsatisfactory holds and is

thus accepted.

TESTING OF HYPOTHESIS (Hi)

The working (null) and alternative hypothesis are presented thus:

Ho: Effective advertising leads to profit maximization by hotels.

Hi: Effective advertising is not responsible for increase in the profit hotels.

The statistical tool used in testing the outcome (result) is the chi-

square (X2). To test the hypothesis information on table 2 is used.

We shall adopt the simple percentage format, as our statistical test

instrument for this work. And so we now go to table two for the information

contained therein

36
TABLE. 7 THE RELATIONSHIP BETWEEN EFFECTIVE

ADVERTISINGS AND PROFITABILITY OF HOTELS

Options Frequency of Percentage of

response response
Yes 158 94.94%
No 7 4.12
Not sure 5 2.94
Total 170 100

Question 2 *table 3) dealt public (customer) awareness level of hotel

advertisement at Ilesa in Osun State. The result showed of hotel advert.

(70%) seventy percent of the customer denied knowledge of such adverts

and singled out only Kings Suite Hotel and Ayeni Foundation Hotel for

credit as the only hotels within the Ilesa metropolis that advertise their

businesses.

The statistical evidence also affirmed the statement that the extent of

customers awareness of hotel advertisement at Ilesa in Osun State is very

low.

On the influence of hotel advertisement on customers and the general

public as contained in question three (3) (table4), the result showed that

greater presentable of the respondents (56.47%) were of the opinion that the

effective advertisements on hotel business to a very greater extent is a

greater stimulant to patronage of their services. 20.59% also consented that

37
it does to a great extent influence their patronage decision. Only 4.12%

vehemently insisted that they have b\never been so influenced by these

adverts

Television was chosen as the most influencing mass medium for hotel

advertising. It polled a total of 69 votes (40.59%) of the opinion of

respondents to beat radio at second (2nd) posters, billboards, etc, etc

followed. The data is contained in table 5 of the study.

From the table above, it can be seen that the greater majority of the

respondents 158 out of 170 representing a whopping 94.94% affirmed the

statement that effective advertising leads to profit maximization by hotels.

While 5 or 2.94% were not sure of the role of advert o\in profitability

hotel business, only 7 or 4,12% vehemently opposed the data. Some of them

mentioned brand loyalty, long usage and association as some of the major

factors contributing to hotel profitability.

38
 CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND

CONCLUSION

From, the survey exercise, the study has been able to reveal some

worthy findings from question one (table2) on effective advertising and

hotel profitability, it was clearly shown that effective advertising of hotels.

The findings reveals that of the one hundred and seven (107) respondents,

158 (94.94%) of the respondents did not mince word in saying that effective

advertising is the chief architect of increase in profitability of hotels. Only

about seven (4.12%) and five (2.94%) were either against the position or

were not too sure of what the role of advertising in this regard is.

We therefore which to conclude but saying that hotel is a strong

correlation between the profitability of hotels and effective advertising

RECOMMENDATIONS

The major objective of this study is to determine the truth in the role

of effective of advertising towards profit maximization by hotels and to

advance suggestions on the identified problem areas. From the finding of

the research the following recommendations are hereby made:-

a. Hotel proprietors and managers should make effective use of

advertising towards uplifting the fortunes of their business.

39
 They can do that better by employing the right media the

appropriate language and identifying their target market.

b. Advertiser should try as much as possible to support their

advertisements with other promo-tools like sales promotion

which should be developed at the appropriate time and

should not be often., the use of promotions (gift items) such

as : I shits, key, buckets, calendars, openers, sticker, caps

bucket etc, should be greatly enhanced.

c. Effort should also be made to use local language (vernacular)

in some of the advertisement

d. They should also ensure that their services meet their

advertising. What is promised should be readily made

available.

e. The researcher finally, recommends that a more detailed

work be done of this study for covering more population.

This will help reveal more interesting facts on the role of

advertising towards improving the fortunes of hotels.

CONCLUSION

We are of the belief that the analysis of data, the test of hypothesis,

the result of the findings and recommendations there from will greatly assist

both the hotel owners and stakeholders and even the advertisers in findings

40
a better and more effective way of using advertising to the glory of hotels

business.

41
 QUESTIONNAIRE

Instruction‟ please tick [ ] in the boxes where appropriate and offer short

sentences as required.

1. Sex: mal [ ] female [ ]

2. Age 18-30 [ ] 31-44 [ ] 48 and above [ ]

3. martial status: single [ ] married [ ]

4 education qualification: elementary six [ ] school certificate

[ ] OND/NCE [ ] HND/Dgree and above [

5 Where so you reside? -------------------------------

6. What is the name of your organization?

7. Do you know what advertising is all about?

Yes [ ] No [ ]

8. if yes are you aware of hotel advertisements

Yes [ ] No [ ]

9. do you think there is enough adverts on hotel business at Ilesa:

Yes [ ] No [ ]

10 Which of these hotels do you rate their adverts high: Presidential

[ ] modetels [ ] Zodiac [ ] royal palace

[ ] mirage [ ] Clemency garden [ ]

42
11. To what extent have these adverts influenced your patronage of these

hotels? Very great [ ] great extent [ ] average [

] below average [ ] never been influenced [

].

12. Which among these factors is your reason for patronizing these

hotels? Adverts [ ], long association [ ], performance

[ ], status prestige [ ].

13. Do you think that effective advertising leads to or increases the

profitability of these hotels? Yes [ ] No [ ]
Not sure [ ]
14. If yes in what ways? -------------------------]
15. Which of the mass media of communication do you consider most
suitable for hotel advertisement? Television [ ] radios [
] posters [ ] magazines [ ], newspapers [
], bill boards [ ] others [ ]
16. What do you suggest should be dome improve the present hotel

advertising in Ilesa -----------------------------------

43
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Kottler P. (1990) marketing management analysis, planning implementation

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