Thesis Abstract

Examining unique selling point (USP) and customer patronage in business Abstract
This research study explores the relationship between a business's unique selling point (USP) and customer patronage. A unique selling point refers to the distinct feature or benefit that sets a product or service apart from competitors in the market. The USP is a critical component of a business's marketing strategy as it helps to differentiate the brand and attract customers. Understanding the impact of a USP on customer patronage is essential for businesses seeking to gain a competitive edge and increase customer loyalty. The research methodology employed in this study includes a combination of qualitative and quantitative approaches. Data was collected through surveys and interviews with both business owners and customers to gather insights into the importance of a USP in driving customer patronage. The sample size consisted of a diverse range of businesses across various industries to ensure a comprehensive analysis of the topic. The findings of the study reveal that a strong and effectively communicated USP significantly influences customer patronage. Businesses that have a clear and compelling USP are more likely to attract and retain customers compared to those with generic offerings. Customers value businesses that offer unique benefits or features that meet their specific needs and preferences. A well-defined USP not only helps businesses stand out in a crowded marketplace but also fosters customer loyalty and repeat business. Furthermore, the research identifies several key factors that contribute to the effectiveness of a USP in driving customer patronage. These factors include relevance to target customers, consistency in messaging, and alignment with the overall brand image. Businesses that continuously innovate and adapt their USP to meet changing customer demands are better positioned to maintain a competitive advantage and sustain customer patronage over time. In conclusion, this research study emphasizes the importance of a unique selling point in influencing customer patronage in business. A well-crafted USP serves as a powerful tool for attracting and retaining customers by offering something distinctive and valuable. Business owners are encouraged to invest in developing a strong USP that resonates with their target audience and sets them apart from competitors. By leveraging their unique selling point effectively, businesses can enhance customer loyalty, drive sales, and achieve long-term success in the marketplace.

Thesis Overview

INTRODUCTION

1.1 Background to the study

A unique selling point (USP, also seen as unique selling proposition) is a feature that differentiates a product from its competitors, such as the lowest cost, the position, the highest quality or the first-ever product of its kind or nature. The unique selling point is a marketing concept first proposed as a theory to explain a pattern in successful advertising campaigns in the early 1940s. The USP states that such campaigns made unique propositions to customers that convinced them to switch products.

Purchasing behavior is the decision process and acts of individuals involved in purchasing and using products, which includes social and mental process (Kotler& Armstrong 2004). Understanding Consumer behavior is vital as it helps marketers to predict all consumer actions involved before choosing to purchase one thing over the other. Consumers also get to know of other influential factors that determine the purchasing decision. Purchasing behavior is influenced by four factors which include cultural, personal, social and psychological factors. Most of these factors should be considered while trying to understand the complex behavior of the consumers. (Solomon, 1995)

The consumer’s decision making regarding purchasing and utilization of different goods and services is influenced by many internal and external factors. Among the external factors, the most important are; the qualities of the product itself, the brand and the package in which it is incased. Non-product related qualities are the external aspects of the product or service that relate to its consumption such as the price information, packaging or product physical appearance, user imagery and usage imagery. (Mullen, 1995) Demographic factors that influence the customer’s purchasing behavior are the internal factors such as age, gender, income, occupation, education, family size, religion, generation, nationality and social class. The market is hence divided based on these factors which differentiate customer groups as the customer needs. (Kotler, 2001)

According to Zeithaml (1988) Consumer perceptions of price, quality and value are important determinants of shaping behaviors and product choice. They are the key factors affecting consumer perception. Most of the consumer factors correlated with attitude include; personality, perceptual and socioeconomic (Batra & Sinha, 2000). Consumer perceptual variables that have been identified include price, quality perception, perceived quality, value consciousness, price consciousness, perceived price fairness, smart shopper self-perception, familiarity with goods, brand loyalty, perceived risk associated with purchase, risk averseness and general deal proneness.

(Garretson et al.,2002) cited by (Mutheu, 2014,6)

1.2 Statement of the problem

There has been a problem in the hospitality industry in meeting the consumer purchasing decisions. In addition, there has been an increasing rate of competition between existing and new hotels in the need of catering for the advancing present day consumer needs and preferences and hence the importance of possessing a unique selling proposition. Furthermore, new business models such as sharing economy and AirBnB are increasing the competition.

1.3 Objectives of the study

The main objective of this study is to examine the effect of unique selling point (USP) on customer patronage in a business organization.

Specifically, the study tends to

1. Examine the importance of the 4 p’s of marketing mix in consumer patronage.

2. Examine the effect of price on consumer patronage of the organization.

3. Examine the effect of location on consumer patronage of the organization.

4. Examine the effect of product and promotion on consumer patronage of the organization.

1.4 Research Questions

1. What is the importance of the 4 p’s of marketing mix in consumer patronage?

2. What is the effect of price on consumer patronage of the organization?

3. What is the effect of location on consumer patronage of the organization?

4. What is the effect of product and promotion on consumer patronage of the organization?

1.5 Significance of the study

The study will be of importance to the management hotels as it will be able to adopt unique selling proposition that will boost consumer-purchasing decision. The study will benefit researchers who may wish to develop the study further through subsequent researches and the academicians wishing to enrich their knowledge on the concept of customer purchasing decision.

1.6 Scope of the study

The study sought to establish the influence of unique selling proposition on consumer purchasing decisions. The study is based on international hotel customers’ perception of the various characteristics of hotels. The limitations of this study are related to number and nationality of the respondents. The study assumed that the participants honestly and truthfully responded to the questionnaires and interview.

1.7 Limitation of the study

Since the study was only carried out in only one province, the results may not be generalisable to the whole country. The researcher collected data on his own without research assistants.

Financial constraints were also anticipated in the current study. Although the researcher received assistance from the bursary, it was not possible to carry out the study at national level.

1.8 Organization of Study

The study is divided into five chapters. Chapter one deals with the study’s introduction and gives a background to the study. Chapter two reviews related and relevant literature. The chapter three gives the research methodology while the chapter four gives the study’s analysis and interpretation of data. The study concludes with chapter five which deals on the summary, conclusion and recommendation.