Generic Pricing Marketing Strategy And Performance Of Tour Operators In The Southern Circuit Of Tanzania

ABSTRACT

The need of this study was to investigate the relationship between generic pricing strategies and the performance of tour operators in the Southern Tourism Corridor of Tanzania. This study was conducted in Dar es Salaam and Iringa Region using cross-sectional research design to collect data from a total of 117 tour operators with the sample of 109 tour operators. The data were collected using questionnaires and they have been analyzed using Linear Multiple Regression Model (MLRM) and Structural Equation Model (SEM). The study generally shows how generic pricing strategies influence the performance of tour operators in Tanzania. The findings show that, generic pricing strategies relate to returns of investment and customer perspectives of tour operators. With respect to the research objectives and hypotheses, the results of this study conclude that Pricing discriminatory related to tour operators is significantly related to ROI and customer perspectives. Therefore, when ROI and customer perspectives are improved pricing discriminatory is likely to achieve high performance. Moreover, Promotional pricing in tour operators is significantly related to ROI and customer perspectives and hence it is related with high performance of tour operators. Again, Psychological pricing is significantly related to ROI and customer perspectives which mean that, there is a possibility of increasing performance of tour operators if psychological pricing is improved. Also, Pioneering pricing increases performance of tour operators and therefore it is related with ROI and customer perspectives. Lastly, it is recommended in this study that the Government should integrate generic pricing strategies and the performance of tour operators by focusing more on the trainings related to price settings.