EXPLORING THE RELATIONSHIP BETWEEN SOCIAL MEDIA MARKETING, PRODUCT INNOVATION, AND PERFORMANCE IN STAR RATED HOTELS IN KENYA

Abstract

This study explored the mediating effect of product innovation on the relationship between social media marketing and performance of star-rated hotels in Kenya. The study employed social media integration theory, innovation diffusion theory, and social exchange theory. The study used an explanatory research design, and the target population comprised 215 star-rated hotels in Kenya. Data were collected through a questionnaire administered to social media coordinators/employees and sales and marketing managers in each hotel. The study adopted a census survey approach, and regression analysis was used to test the hypotheses. Results indicated that social media marketing positively influenced product innovation and firm performance, and product innovation acted as a mediator between social media marketing and firm performance. The study concludes that social media marketing can be used to improve hotel performance and generate information for product innovation. Innovation is crucial for gaining a competitive advantage and boosting performance, and social media marketing is an effective tool for enhancing customer satisfaction and market share growth. The study recommends that hoteliers should focus on social product innovation to enhance performance and meet customer expectations.