MARKET SEGMENTATION STRATEGIES AND CUSTOMER RETENTION IN HOSPITALITY INDUSTRY IN PORT HARCOURT.

The focus of this research was on market segmentation strategies and customer retention in hospitality industry in Port Harcourt. The study aimed to determine the impact of these three market segmentation strategies (Geographic, demographic and psychographic segmentation) on customer retention in hospitality industry in Port Harcourt. Three null hypotheses were developed for the study. Structured questionnaire was designed and administered to some categories of employees of selected fast food restaurants in Port Harcourt. Pearson Product Moment Correlation Co-efficient (PPMCC) in the Statistical Package for Social Sciences (SPSS) version 23 was used to test the null hypotheses developed for the study. The findings of the study revealed that there is a significant relationship between the market segmentation strategies (Geographic, demographic and psychographic segmentation) and customer satisfaction in hospitality industry in Port Harcourt. Hence, the study concluded that market segmentation strategies had a significant positive impact on customer retention in hospitality industry in Nigeria. It was therefore recommended that hospitality Industries should segment its market based on geographic, demographic and psychographic segmentation alongside an effective positioning strategies that would go a long way to increase customer loyalty thereby leading to customer retention. Hospitality industries should imbibe segmentation based on benefit sought in order to attract potential customers and retain existing ones.