Impact of social media marketing on business performance: A case study of restaurant and hotel businesses around Makerere University

Abstract

In an effort to determine the impact of social media marketing on the business performance, a descriptive study was conducted using a questionnaire administered to randomly selected sample of 47 restaurant and hotel businesses around Makerere University. Descriptive statistics, ANOVA tests and Logistic regression were used to analyse data. The ANOVA test of the study showed that, there was a significant variation of the sales volume between the business that were using social media marketing and the ones that weren’t (p-value,0.05). The same test also showed a significant variation in the average number of customers each business received a day. However, there was no significant variation on the average number of branches held by these businesses. From the study findings, choice of the business to use social media marketing depends on the education level of the business owner (p-value < 0.05). The study revealed that business owners who had at least secondary school education were more likely to use social media marketing compared to an owner who had not attained any education. Holding other factors constant, single business owners are more likely to use social media marketing compared to the married ones. Based on results of analysis, it is deemed imperative that in an effort to increase Business performance, Business owners need to adapt to social media marketing to increase their market share and increase their sales volumes.