The Effect of Price and Physical Evidence on the Choice of Student Hostel around Knust Campus

Charles Baba Campion, Evelyn A

Abstract

The Hostel industry appears to have reached its decline state, yet people are still investing and developing into the business, especially around the Kwame Nkrumah University of Science and Technology (KNUST), Ghana. Customers (students) have being switching from one Hostel to the other and the competition of the firms within the industry has become very intense. To be able to withstand the competition in the industry, there is the need to investigate the extent to which price and physical evidence affect the selection and renting of Hostel, and other factors determining the choice of Hostels around KNUST Campus, Kumasi. A total of 120 questionnaires were randomly distributed to students living in private Hostels within Ayeduase, Bomso, Kentikrono, Kotei and inside KNUST Campus. Data was collected from 108 participants and analyses were made after a review of Price, Physical evidence, Hostels and other choice determinants. The results from the questionnaires were discussed. It was revealed that although there was a positive relationship between price and physical evidence, student’s choice of Hostel was not all that strong. The recommendations made were that Hostels managers should base their price on elasticity rates, managing of physical evidence, Hostels well repositioned and quality being consistent with continuous upgrading.