Social media marketing and financial performance of tour firms in the Kigezi sub-region of Uganda
DOI:
https://doi.org/10.51867/ajernet.6.3.92Keywords:
Branding, Community Engagement, Financial Performance, Market Positioning, Social Media Marketing, Tour FirmsAbstract
The study sought to examine the effects of social media marketing on the financial performance of tour firms in the Kigezi sub-region of Uganda, focusing on three specific objectives, which included: examining the effect of community engagement on the financial performance of tour firms; establishing the effect of branding on the financial performance of tour firms; and assessing the effect of positioning on the financial performance of tour firms. The study was anchored on the Destination Competitiveness Theory, and the cross-sectional research design was employed, targeting 173 employees among the 140 registered tour firms in the Kigezi sub-region of Uganda. Using the Morgan table, the study sampled 120 respondents, which included the tour managers, marketing managers and finance managers, employing the stratified random sampling technique. Structured questionnaires designed on a 5-point Likert scale were used to collect the primary data. Data was then analysed using descriptive and inferential statistics. The findings revealed that community engagement, measured by information sharing, comments and feedback & user-generated content, significantly affected the financial performance of the tour firms (R² = 0.126, p = 0.001 < .005). Branding, which included visual identity and recognition, audience alignment and connection, had a positive and significant effect on the financial performance of the tour firms (R² = 0.251, p = 0.001 < 0.005). On the other hand, market positioning as measured by value proposition, target audience and content strategy was found to be the strongest predictor of financial performance among the tour firms (R² = 0.270, p < 0.001 < 0.005). The study concluded that social media marketing is a key driver of profitability, revenue growth and return on investment among the tour firms. The study recommended that tour firms leverage social media marketing as a strategic tool to improve financial performance.
Downloads
References
Alatawi, I. A., Ntim, C. G., Zras, A., & Elmagrhi, M. H. (2023). CSR, financial and non-financial performance in the tourism sector: A systematic literature review and future research agenda. International Review of Financial Analysis, 89, Article 102734. https://www.sciencedirect.com/science/article/pii/S1057521923002508
https://doi.org/10.1016/j.irfa.2023.102734
Alghamdi, G., & Wahid, N. A. (2024). The use of social media marketing activities to promote a tourism destination: A review. Advances in Social Sciences Research Journal, 11(7), 246-259. https://www.researchgate.net/profile/Ghazi-Alghamdi/publication/385076576
https://doi.org/10.14738/assrj.117.17320
Altinay, L., & Kozak, M. (2021). Revisiting destination competitiveness through chaos theory: The butterfly competitiveness model. Journal of Hospitality and Tourism Management, 49, 331-340. https://www.sciencedirect.com/science/article/pii/S1447677021001765
https://doi.org/10.1016/j.jhtm.2021.10.004
Amin, M., Gohar, M., & Ali, I. (2025). Impact of digital transformation on SME's marketing performance: Role of social media and market turbulence. Discover Sustainability, 6(1), Article 378. https://link.springer.com/article/10.1007/s43621-025-01228-3
https://doi.org/10.1007/s43621-025-01228-3
Braga, T. (2023). Brand values in digital marketing: What do they mean and how can they affect consumer's decisions (Doctoral dissertation, SOE). https://www.theseus.fi/handle/10024/809293
Christodoulides, G., De Chernatony, L., Furrer, O., Shiu, E., & Abimbola, T. (2006). Conceptualising and measuring the equity of online brands. Journal of Marketing Management, 22(7-8), 799-825.
Chu, S.-C., Deng, T., & Cheng, H. (2020). The role of social media advertising in hospitality, tourism and travel: A literature review and research agenda. International Journal of Contemporary Hospitality Management, 32(11), 3419-3438. https://doi.org/10.1108/IJCHM-05-2020-0480
Chyrak, I., Koziuk, V., Siskos, E., & Darvidou, K. (2024). Comprehensive framework for social media marketing (SMM) strategy for effective business activity. Socio-Economic Relations in the Digital Society, 4(54), 39-58. https://ser.net.ua/index.php/SER/article/view/584
Dwyer, L., Edwards, D., Mistilis, N., Roman, C., & Scott, N. (2009). Destination and enterprise management for a tourism future. Tourism Management, 30(1), 63-74. https://www.sciencedirect.com/science/article/pii/S0261517708000745
https://doi.org/10.1016/j.tourman.2008.04.002
Etuk, S. G. (2018). Two-way communication and customer loyalty. Journal of Economics and Management Sciences, 1(3), 75. https://j.ideasspread.org/index.php/jems/article/view/211
https://doi.org/10.30560/jems.v1n3p75
Ghaderi, Z., Mirzapour, M., Henderson, J. C., & Richardson, S. (2019). Corporate social responsibility and hotel performance: A view from Tehran, Iran. Tourism Management Perspectives, 29, 41-47. https://www.sciencedirect.com/science/article/pii/S2211973618300977
https://doi.org/10.1016/j.tmp.2018.10.007
Harrigan, P., Evers, U., Miles, M., & Daly, T. (2017). Customer engagement with tourism social media brands. Tourism Management, 59, 597-609. https://www.sciencedirect.com/science/article/pii/S0261517716301753
https://doi.org/10.1016/j.tourman.2016.09.015
Hudson, S., & Hudson, L. (2023). Marketing for tourism, hospitality & events: A global & digital approach. Sage Publications Limited. https://www.torrossa.com/gs/resourceProxy?an=5730618&publisher=FZ7200
Hudson, S., Roth, M. S., Madden, T. J., & Hudson, R. (2015). The effects of social media on emotions, brand relationship quality, and word of mouth: An empirical study of music festival attendees. Tourism Management, 47, 68-76. https://www.sciencedirect.com/science/article/pii/S026151771400171X
https://doi.org/10.1016/j.tourman.2014.09.001
Hutter, K., Hautz, J., Dennhardt, S., & Füller, J. (2013). The impact of user interactions in social media on brand awareness and purchase intention: The case of MINI on Facebook. Journal of Product & Brand Management, 22(5/6), 342-351. https://doi.org/10.1108/JPBM-05-2013-0299
Kayumovich, K. O., & Kamalovna, S. F. (2019). Social media-marketing-a forceful tool for tourism industry. European Science, 7(49), 41-43. https://cyberleninka.ru/article/n/social-media-marketing-a-forceful-tool-for-tourism-industry
Keller, K. L. (2013). Building strong brands in a modern marketing communications environment. In The evolution of integrated marketing communications (pp. 65-81). Routledge.
Keller, K. L., & Swaminathan, V. (2020). Strategic brand management (5th ed.). Pearson Education.
Kim, A. J., & Ko, E. (2011). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), 1480-1486. https://doi.org/10.1016/j.jbusres.2011.10.014
Kizildag, M., Altin, M., Ozdemir, O., & Demirer, I. (2017). What do we know about social media and firms' financial outcomes so far? Journal of Hospitality and Tourism Technology, 8(1), 39-54.
https://doi.org/10.1108/JHTT-10-2016-0074
Kothari, D. P., & Nagrath, I. J. (2003). Modern power system analysis. Tata McGraw-Hill Publishing Company.
Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2016). Marketing management (3rd ed.). Pearson Higher Ed.
Lee, J., & Park, C. (2022). Customer engagement on social media, brand equity and financial performance: A comparison of the US and Korea. Asia Pacific Journal of Marketing and Logistics, 34(3), 454-474.
https://doi.org/10.1108/APJML-09-2020-0689
Mansouri, T. (2024). Looking at AI fairness from a marketing lenz: The influence of ethnicity on facial expression recognition based on expert judgement and AI models. https://salford-repository.worktribe.com/output/3102034
Mariani, M. M., Di Felice, M., & Mura, M. (2016). Facebook as a destination marketing tool: Evidence from Italian regional destination management organizations. Tourism Management, 54, 321-343. https://www.sciencedirect.com/science/article/pii/S0261517715300595
https://doi.org/10.1016/j.tourman.2015.12.008
Mariani, M., & Borghi, M. (2020). Environmental discourse in hotel online reviews: A big data analysis. Journal of Sustainable Tourism, 29(5), 829-848.
Mihalic, T. (2002). Tourism and economic development issues. In Tourism and development: Concepts and issues (pp. 81-111). Channel View Publications.
https://doi.org/10.2307/jj.30945665.7
Minazzi, R. (2015). Social media marketing in tourism and hospitality. Springer.
https://doi.org/10.1007/978-3-319-05182-6
Morgan, K. (1970). Sample size determination using Krejcie and Morgan table. Kenya Projects Organization (KENPRO, 38(1970), 607-610.
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20-38. https://doi.org/10.1177/002224299405800302
Morrison, A. M. (2022). Hospitality and travel marketing. Routledge. https://www.taylorfrancis.com/books/mono/10.4324/9781003292616
Munar, A. M. (2012). Social media strategies and destination management. Scandinavian Journal of Hospitality and Tourism, 12(2), 101-120.
Ndekwa, A. (2016). Small and medium tourist enterprises and social media adoption: Empirical evidence from Tanzanian tourism sector. International Journal of Business and Management, 11(4), 71-80. https://www.academia.edu/download/114892556/31073.pdf
https://doi.org/10.5539/ijbm.v11n4p71
Ndekwa, A. G. (2025). Digital marketing metaverse for restoration of tourism performance after COVID-19 business crisis in Sub-Saharan African countries: Experience from Tanzania. In Metaverse and tourism (pp. 161-180). Routledge. https://www.taylorfrancis.com/chapters/edit/10.4324/9781003497004-12
Porter, M. E. (2008). Competitive advantage: Creating and sustaining superior performance. Simon & Schuster. https://books.google.com/books
Qu, H., Kim, L. H., & Im, H. H. (2011). A model of destination branding: Integrating the concepts of the branding and destination image. Tourism Management, 32(3), 465-476. https://www.sciencedirect.com/science/article/pii/S0261517710000610
https://doi.org/10.1016/j.tourman.2010.03.014
Ranasinghe, R., Gangananda, N., Bandara, A., & Perera, P. (2021). Role of tourism in the global economy: The past, present and future. Journal of Management and Tourism Research, 4(1), 6-22. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3862298
Rheeders, T. (2022). A review of the determinants of tourism destination competitiveness. Journal of Contemporary Management, 19(2), 238-268.
Ritchie, J. R. B., & Crouch, G. I. (2003). The competitive destination: A sustainable tourism perspective. CABI. https://books.google.com/books
https://doi.org/10.1079/9780851996646.0000
Rotondo, F., & Fadda, N. (2019). The influence of being part of a tourist network on hotels' financial performance. International Journal of Hospitality Management, 82, 335-344. https://www.sciencedirect.com/science/article/pii/S0278431918303712
https://doi.org/10.1016/j.ijhm.2018.10.015
Schniederjans, D., Cao, E. S., & Schniederjans, M. (2013). Enhancing financial performance with social media: An impression management perspective. Decision Support Systems, 55(4), 911-918. https://www.sciencedirect.com/science/article/pii/S0167923612003934
https://doi.org/10.1016/j.dss.2012.12.027
Selase Asamoah, E. (2014). Customer based brand equity (CBBE) and the competitive performance of SMEs in Ghana. Journal of Small Business and Enterprise Development, 21(1), 117-131.
https://doi.org/10.1108/JSBED-10-2013-0154
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Toon, M. (2025). Alliances for social good: The effect of purpose-based aims on alliance governance. Tourism Management, 25(6), 777-788. https://orca.cardiff.ac.uk/id/eprint/177459/
Tushabe, S. B., Turyasingura, B., & Rwotolonya, S. (2023). Adoption of ICT in hotel sector during COVID-19 pandemic in Uganda: Case study of selected hotels in Kigezi sub region. African Journal of Tourism and Hospitality Management, 2(1), 19-34. https://doi.org/10.37284/ajthm.2.1.1522
UBOS. (2023). Uganda Bureau of Statistics Satellite Account 2023. Uniform Trade Secrets Act (UTSA).
Uganda Tourism Board. (2022). Explore Uganda, the Pearl of Africa. https://utb.go.ug/2022/02/#
Valeri, M., & Baggio, R. (2021). Italian tourism intermediaries: A social network analysis exploration. Current Issues in Tourism, 24(9), 1270-1283.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Alice Ngele Mwazuna, John Bosco Muhwezi, Moses Agaba, Judith Bijurenda Asiimwe
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
