Assessment Of Socio-Economic Factors Influencing Customer Satisfaction In The Hospitality Industry In Kenya: Focus On 4-Star Rated Hotels In Kisumu And Nakuru Cities, Kenya

Abstract

Despite the growth and increasing competitiveness of Kenya’s hospitality sector, the determinants of customer satisfaction in 4-star-rated hotels remain underexplored. This study assessed the socio-economic factors influencing customer satisfaction in 4-star-rated hotels in Kisumu and Nakuru cities, Kenya. Specifically, the study examined the influence of service quality, personality traits, and economic factors on customer satisfaction and established the moderating role of sustainable practices in these relationships. The study was anchored on Cognitive Theory and Stakeholder Theory. The study adopted a descriptive survey research design. The target population comprised 684 respondents, consisting of hotel guests, management, and staff from 4-star-rated hotels in Kisumu and Nakuru cities, from which a sample of 360 respondents was selected. Data were collected using structured questionnaires, whose validity was established through expert review and construct validity assessment, while reliability was confirmed using Cronbach’s Alpha reliability testing. Data were analysed using descriptive statistics, Pearson correlation, multiple regression, and hierarchical regression analyses. The findings revealed significant positive relationships between service quality (r = .501, p < .001), personality traits (r = .437, p < .001), economic factors (r = .615, p < .001), and customer satisfaction. Multiple regression analysis established that socio-economic factors significantly predicted customer satisfaction, explaining 47.8% of the variance (R² = .478, Adjusted R² = .472, F(3,267) = 81.483, p < .001). The addition of sustainable practices significantly improved the explanatory power of the model, increasing the explained variance to 56.3% (ΔR² = .085, F-change = 14.592, p < .001). The study concludes that service quality, personality traits, and economic factors significantly influence customer satisfaction in 4-star-rated hotels, while sustainable practices strengthen this relationship. The study recommends that hotel managers enhance service quality standards, develop employee interpersonal capabilities, consider customer economic value perceptions, and integrate sustainable practices to improve guest experiences, customer loyalty, and competitiveness within Kenya’s hospitality sector.