The Impact of Marketing Mix on the Consumer Purchase Decision in the Surabaya - Indonesia Hotel Residence

Abstract

The hospitality business is rapidly growing and has caused fierce competition in this industry. It can be seen from the number of new hotels particularly for the 2 and 3-star hotels, and budget hotels in Surabaya. The hotels applied various strategies in acquiring new customers and retain loyal customers in the pursuit of a high level of occupancy in order to maintain business continuity. Performing appropriate marketing tactics is one of the ways to enable the hotel to increasing occupancy rates. Marketing strategy is associated with the products, prices, promotions, and distribution. This study aims at seeking the impact of the product, prices, promotion, and distribution on the consumer purchasing decisions. The population is all visitors to budget hotels located in the city of Surabaya. The data collection was conducted by distributing the self-administered questionnaire to 150 visitors. Of the 150, 125 questionnaires were valid for further analysis. The sampling frame uses judgmental sampling techniques. Data processing used multiple linear regression using SPSS software. The results showed that hotel products have an influence on consumer purchasing decisions; prices have an influence on consumer purchasing decisions. The location of the hotel affects the purchase decision. Promotion performed by the hotel influence the purchase decision by the consumer. This research model needs to be developed by providing service process variables and employee competencies in hotels in Surabaya.