Factors Influencing The Consumption Of Meetings, Incentives, Conferences, And Exhibitions (Mice) Products In Kenya: A Case of Kenyatta International Conference Center (KICC)

Abstract

The general objective of this study was to investigate the factors that influence the consumption of MICE products in Kenya; a case of Kenya International Conference Center (KICC). The specific objectives of the study were to identify the influence of price on consumption of MICE products; to establish whether promotional activities influence consumption of MICE products; to investigate the influence of product attributes on the consumption of MICE products; and to find out whether place or distribution influences the consumption of MICE products. The study adopted descriptive research design using a case study. A total of 399 corporates, political parties and other institutions situated in Nairobi that consume MICE products at the Kenyatta International Conference Centre (KICC) constituted the target population. A sample of 40 respondents was selected from this population using purposive sampling technique where these institutions were selected with a preference to repeat customers for the period 2010-2012. Data was collected using a questionnaire which adopted both open- ended and closed-ended questions. Data processing and analysis was done with the aid of Statistical Package for Social Sciences (SPSS). Tables and figures were used to present the analyzed data. Correlation analysis and regression analysis were used to show the relationship and the significance of the relationship between the variables. The study found out that among the components of price factor influencing the choice of the MICE venue by consumers, the main components include organizations’ budget allocations, ongoing promotions, cost of the venue and flexible payment terms. The study found that business travellers are sensitive to price and before settling for a particular destination, they tend to consider a variety of competing destinations. Consumers are also more likely to purchase several products as a package as opposed to purchasing the individual products by themselves. This is because the consumer is more likely to be charged a lower rate when they buy the package. The study concluded that it is necessary for MICE venues ensure that they have competitive prices as compared to their competition to ensure that they succeed in attracting visitors to their venue or else they will be at a disadvantage. The study revealed that MICE consumers carry out extensive research on venues before making their hire decision and they scrutinize the ‘product’ to the very detail to ensure that it matches or meets their specific and unique needs. Key product attributes that influenced these consumers’ choice of MICE venue included among others; one-stop-shop, venue accessibility, parking space, cleanliness and organization, and security and safety measures. Packages composed of all these elements were more appealing to consumers. It was also found necessary for MICE venues to have the equipment/ facilities that the consumer requires before the consumer decides to acquire their services. The study revealed word-of-mouth as the most popular medium through which the MICE consumers learnt about the venues they hired. The study also revealed that among the promotional factors informing consumers’ choice of the venue, consumer awareness, communication about the quality of the venue, consumer’s tastes and preferences, renowned brands and advertising were primary. It is necessary for customers to be aware of the availability/ existence of a certain product in order for them to acquire it. Direct channel was found to be the most popular channel of distribution among the consumers of MICE products. Consumers preferred to deal directly with the service providers as opposed to engaging through intermediaries/ agents. The study also revealed that contacts and negotiation agreements between the consumers and the venue proprietors are instrumental in influencing the MICE consumers’ choice of the venues. It was thus found necessary for MICE companies to ensure there is contact with customers in order to facilitate distribution. Recommendations included more marketing and cultivating healthy and long term relationships between the service providers and the consumers. As service providers in MICE industry take advantage of price dynamism, they must ensure provision of quality services. They should also endeavor to design and package ‘products’ that not only meet the unique needs, tastes and preferences of these consumers but also exceed their expectations. They should also ensure that they avail as much information as possible to both the local and international markets