FACTORS AFFECTING REVENUE GENERATION IN KENYA’S EDUCATIONAL
INSTITUTIONS (CASE STUDY OF DEKUT)
BY
TRIZER ACHIENG OWINO
JOSPHAT KIRUTHI MWANIKI
STEPHEN MWANGI KIRAGU
B012-01-0792/2016
B012-01-0745/2016
B012-01-0759/2016
SUPERVISOR
DR. SUSAN NGURE
A research project submitted to Dedan Kimathi University of Technology in partial
fulfillment of the requirement for the award of Degree in Bachelor of Business
Administration (Accounting and Finance Option).
i
DECLARATION
This research Project proposal is our original work and has not been presented for a degree or any
other award in any other university.
SIGNATURE
STEPHEN MWANGI
Date
JOSPHAT KIRUTHI
Date
TRIZER ACHIENG
Date
SIGNATURE
SIGNATURE
This research project has been submitted for examination with my approval as the university
supervisor.
SIGNATURE
DR. SUSAN NGURE
Date
ii
DEDICATION
We dedicate this research to our family members and thank each and every one of them for the
encouragement and support they have always given ours. Each one of them has brought something
fresh and new to the table of life and they have always been an inspiration to us.
May the Almighty God bless them abundantly
iii
ACKNOWLEDGEMENT
First we thank Almighty God for guidance and strength throughout our research work. We give
our sincere thanks and appreciation to all who gave us assistance while writing this research.
Particular appreciation to Dr. Susan Ngure, supervisor at Dedan Kimathi University of Technology
for her supervision while writing this research project.
We also give thanks to our friends. Thank you all.
iv
LIST OF ABBREVIATIONS AND ACRONYMS
DeKUT
Dedan Kimathi University of Technology
EDM
Expectation-disconfirmation model
v
Table of Contents
DECLARATION........................................................................................................................... ii
DEDICATION.............................................................................................................................. iii
ACKNOWLEDGEMENT ........................................................................................................... iv
LIST OF ABBREVIATIONS AND ACRONYMS .................................................................... v
ABSTRACT .................................................................................................................................. xi
CHAPTER ONE ........................................................................................................................... 1
INTRODUCTION......................................................................................................................... 1
1.1 Background of the study ....................................................................................................... 1
1.1.1 Global perspective .......................................................................................................... 1
1.1.2 Africa perspective ........................................................................................................... 1
1.1.3 Regional perspective....................................................................................................... 1
1.1.4 Local perspective ............................................................................................................ 1
1.2 Statement of the Problem ...................................................................................................... 2
1.3 Research objectives ............................................................................................................... 3
1.3.1 General objective ............................................................................................................ 3
1.3.2 Specific objectives .......................................................................................................... 3
1.4 Research questions ............................................................................................................ 3
1.5 Significance of the study ....................................................................................................... 4
1.6 Scope of the study ................................................................................................................. 4
1.7 Limitation of the study .......................................................................................................... 4
1.8 Assumptions of the study ...................................................................................................... 5
LITERATURE REVIEW ............................................................................................................ 5
vi
2.1 Introduction ........................................................................................................................... 5
2.2 Theoretical framework .......................................................................................................... 5
2.2.1 Comparative advantage theory ....................................................................................... 5
2.2.2 Disconfirmation theory ................................................................................................... 6
2.2.3 Efficiency wage theory ................................................................................................... 6
2.2.4 Pricing theory ................................................................................................................. 7
2.3 Empirical framework............................................................................................................. 7
2.3.1 Cost of production .......................................................................................................... 7
2.3.2 Customer satisfaction ..................................................................................................... 8
2.3.3 Efficiency of workers ..................................................................................................... 9
2.3.4 Product marketing......................................................................................................... 10
2.4 Conceptual framework ........................................................................................................ 11
2.5 Operational framework ....................................................................................................... 14
2.6 Conclusion........................................................................................................................... 15
RESEARCH METHODOLOGY .............................................................................................. 16
3.1 Introduction ......................................................................................................................... 16
3.2 Research design ................................................................................................................... 16
3.3 Target population ............................................................................................................. 16
3.4 Sample techniques and sample size ................................................................................. 17
3.5 Data collection instruments and procedures........................................................................ 17
3.6 Data analysis and presentation ........................................................................................ 18
CHAPTER 4 ................................................................................................................................ 19
DATA ANALYSIS AND PRESENTATION ............................................................................ 19
4.2 General information ............................................................................................................ 19
4.2.1 Gender .......................................................................................................................... 19
4.2.2 Age................................................................................................................................ 19
4.2.3 Education level ............................................................................................................. 20
vii
4.3: Responses from students .................................................................................................... 21
4.3.1: Students’ expenditure on leisure activities and their frequency .................................. 21
4.3.2: Product perception ....................................................................................................... 21
4.3.3: Product enquiries ......................................................................................................... 23
4.4: Employees’ responses ........................................................................................................ 24
4.4.1: Task completion time .................................................................................................. 24
4.4.2: Product quality and wastage level ............................................................................... 25
4.4.3 Production level and trends in profits ........................................................................... 27
4.4.4 Product varieties ........................................................................................................... 28
4.4.5 Level of cost of raw materials ...................................................................................... 28
4.4.6 Product price ................................................................................................................. 30
CHAPTER FIVE ........................................................................................................................ 31
SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATION ............ 31
5.1 Introduction ......................................................................................................................... 31
5.2 Summary of findings ........................................................................................................... 31
5.3 CONCLUSION ................................................................................................................... 34
5.4 Recommendations ............................................................................................................... 35
RECCOMENDATION FOR FURTHER STUDIES ................................................................ 36
REFERENCES .......................................................................................................................... 37
APPENDIX I: LETTER OF INTRODUCTION ..................................................................... 39
APPENDIX II: QUESTIONNAIRE ......................................................................................... 40
APPENDIX III: WORK PLAN ................................................................................................. 46
APPENDIX IV: RESEARCH BUDGET .............................................................................. 46
viii
ix
LIST OF TABLES
Table 3.1 Target population .......................................................................................................... 17
Table 3.2 Sample size ................................................................................................................... 17
Table 4.2 Age ................................................................................................................................ 19
Table 4.4 Expenditure level and the frequency ............................................................................ 21
Table 4.6 Product rating ................................................................................................................ 22
Table 4.7 1 Product recommendation by the students .................................................................. 23
Table 4.8 1 Production level ......................................................................................................... 27
LIST OF FIGURES
Fig 2.1 Conceptual framework ..................................................................................................... 12
Fig 2.2 Operational framework ..................................................................................................... 14
Fig 4.1 Product rating .................................................................................................................. 22
Fig 4.2 Product enquiries ............................................................................................................. 24
Fig 4.3 Task completion time ....................................................................................................... 25
Fig 4.7 Product quality.................................................................................................................. 25
Fig 4.4 Wastage level .................................................................................................................... 26
Fig 4.6 Product varieties ............................................................................................................... 28
Fig 4.7 Level of cost of raw materials .......................................................................................... 29
Fig 4.8 Product price ..................................................................................................................... 30
x
ABSTRACT
Rate of income generation is the measure of the financial benefits as a result from sale of a product
or service and resource management. In Kenya there is an over reliance by the public universities
on the government and revenue from payment of school fees by students. Not all public universities
have devised other ways to generate revenue to meet their expenditures and enhance sustainability.
The objective was to determine the effects of cost of production, efficiency of employees, product
marketing and customer satisfaction on income generation in public university. Descriptive study
was undertaken. The population of the study consisted of students and employees of Dedan
Kimathi University; sample size of 30% was used to represent the entire target population. The
study obtained data from primary sources mainly by use of questionnaires that filled by the
respondents (students and employees), involved closed and open-ended questions. The study
revealed that most of the respondent were aged between 17-40 years and most pursuing
undergraduate. The research indicated that Universities have not attained absolute customers’
satisfaction in terms of products and services they offer. Average of the respondents are the only
ones aware of product existence in the university. Efficiency of employees in the university is
above average with 57% and cost of production is high due to the raw materials used in production
being expensive. In conclusion, the study establish that the independent variables cost of
production, product marketing, efficiency of employees and customer satisfaction have direct
influence on amount of income generated by the varsities. The study recommends that public
universities to devise ways in meeting the needs of customers (students and employees) more
efficiently, collaborate with local suppliers to reduce cost incurred in obtaining raw materials,
explore different ways to boost employees’ efficiency and establish good channels to convey
information about products they offer.
xi
i
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Rate of income generation is the measure of the financial benefits as a result from sale of a product
or service and resource management. The measure can be in units of monetary terms. It also refers
to the value an agent is willing to pay for a product or service. Generation of income leads to
increase in economic value. According to Henry George economic value is the worth of a thing
in a given time and place. Steve Keen defines value as the innate worth of a commodity (Camen,
R 2013). Educational institutions worldwide faces a lot of hardship especially when it comes on
the issue of generating income. Huge amounts spent on the running of the institutions.
1.1.1 Global perspective
In USA the Metropolitan state university, Denver collaborated with Sage hospitality to open
Springhill suites by Marriott on the edge of its campus. The site serves as the university hotel,
tourism and events program, the building employs 90 students at any given time and brings in the
industry experts to work as adjust faculty members (Potter, M 2017).
1.1.2 Africa perspective
In Egypt, Cairo university partnership with the government to establish a national hospital within
the university. The facility proves attachment opportunities to the different students seeking
attachment for their undergraduate courses. The university because of the partnership introduced
diploma and undergraduate courses in medical fields for local and international students.
1.1.3 Regional perspective
In east Africa, National university of Rwanda ranked as the top university in the religion. The
university was formed as a result of merger between different public institutions of higher
education in Rwanda, which has enhanced partnerships and strategies of promoting the quality of
the university and improving the position in the rankings. The rankings attracts donors, better
staffs, investors, full concentration of the government, efficiency and effectiveness.
1.1.4 Local perspective
In Kenya, Kenyatta University owns Thika Road Funeral Home and recently acquired North Coast
Beach Hotel in Mombasa. The university in order to supplement its earnings runs 100-roomed
1
conference Centre, bookstore, a shopping located within its premises, printing press, broadcasting
television station among other investments. Revenue obtained from the various investment are
used by the University for the smoothing of the institution, by catering for the different expenses
incurred. (Wamirori, G 2016).
1.2 Statement of the Problem
The sustainability of education institutes depends on their ability to generate revenue to cater for
the running of operations. Economic value creation is necessary since the funds provided by the
government and fees paid by students are not adequate.
Public universities in Kenya have vast resources, which are not utilized, the resources, which
manly includes land resource lies idle with no use. Generating revenue for the universities also is
a big challenge due limited financial resource to initiate basic projects like building lecture halls,
buying books for learning and chemicals for practical’s, exam materials and hostels for students.
Also attaining the satisfaction of both the students and employees in the university remains far
from been attained. Basic requirement such as food joint near or in the university cannot cater for
the huge students’ enrollment and these forces them to seek them elsewhere outside the university.
Student go through insecurity, like theft injuries due to fight with strangers in the outside private
owned resorts and restaurants, more costs of ordering taxis, loss of their properties and some end
up in jail.
Other school stakeholders like lectures, researchers in institutions incur a lot of money in fuel, fare
and time to seek for these special services like food, relaxing, parties, and business meeting outside
school. They end-up going for their classes or failing to attend to students completely due to traffic
jams. These problems are not yet solved.
As a result, universities have to seek other means of generating revenue to finance their operations
and ensure smooth running. Among the alternative methods of achieving this is by utilizing the
huge tracks of land unutilized, by starting garden hotels to help in raising revenue. The project
only involve commitment of few resources, as no huge permanent structures are required. This can
be achieved in partnership with the public who are willing to invest their resources.
The study will focus on how the public and private universities can be able to generate revenue
resources by putting to use idle resources. Financial constraints have rendered most of universities
2
projects to stale due to reduced funding by the government or lack of project sponsors. The
projects, which require finances in universities, includes student accommodation hostels, lecture
rooms, administration block, road projects and laboratories.
Research revealed that, a lot had to be done, to improve, gradually the learning environment, that
a part from basic learning requirements. This includes like books, reading materials, classes and
accommodation rooms what else do learners and staffs need outside class –work for leisure and to
relax their mind outside class, to make them happy, enhance learners’ interaction therefore
improving their satisfaction
1.3 Research objectives
1.3.1 General objective
To identify the factors affecting revenue generation of educational institutions in Kenya
1.3.2 Specific objectives
To assess the effect of customer satisfaction on revenue generation of educational institutions in
Kenya
To assess the effect of product marketing on revenue generation of educational institutions in
Kenya
To evaluate the effect of efficiency of employees on revenue generation educational institutions in
Kenya
To examine the effect of the cost of production on revenue generation of educational institutions
in Kenya
1.4 Research questions
How does customer satisfaction affect the revenue generation of educational institutions in Kenya?
How does product marketing affect the revenue generation of educational institutions in Kenya?
What is the effect of efficiency of employees on the revenue generation of educational institutions
in Kenya?
What is the effect of cost of production on revenue generation of educational institutions in Kenya?
3
1.5 Significance of the study
This study will benefit both organization stakeholders and the organization itself even though it is
a strategy of the organization to generate back resources. This will help stakeholders reduce cost
for example on saving fuel cost, transportation cost, time and other important resources. It will
also help them get time to relax, interact with fellows, share your ideas, create networks, enhance
relations and create jobs especially in food science department.
It will also help the organization to create source of capital inflow, improve their image and expand
their departments for example the food science department. It will also give ready attachment
opportunities to our students.
The research is a basic requirement for one to graduate with bachelor’s degree in business
administration. Research project is mandatory requirement by the university for to one be
considered to have completed the course of bachelors in business administration.
The study will help to educational institution to generate revenue by utilizing the vast available
resources such as land. The revenue generated will cater for the different cost that the university
incurs in its normal running day-to-day operations.
1.6 Scope of the study
The scope of the study is to be carried on students and lecturers in Dedan Kimathi University
(approximately sample of 380) who mainly seek recreation activities from outside the university.
They are the key interest of the study. The dependent variable of the study is revenue generation
by the university whereas the independent variables are; cost of production, customer satisfaction,
product marketing and efficiency of employees.
1.7 Limitation of the study
The sample size selected may not be true representation of the target population.
The responses may not be true.
Some respondents might be reluctant to give information even after explaining to them the
importance of the study.
The findings in these research findings may not be used to generalize the whole target population
as it may only apply to a smaller portion.
4
1.8 Assumptions of the study
The sample will be true a representative of the target population.
The respondents will be truthful.
The findings will be applicable to the target population.
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
The chapter concentrated on theoretical literature review, empirical framework, research gaps and
conceptual framework. Under theoretical framework the study focus on comparative advantage
theory, disconfirmation theory, efficiency wage theory, marginal productivity theory and pricing
theory.
Empirical review focused on cost of production, customer satisfaction, effectiveness and efficiency
of employees, revenue generation and product marketing. Conceptual framework concentrated on
the relationship on independent and dependent variables. Operation framework concentrated on
the parameters used to measure both the independent and dependent variables.
2.2 Theoretical framework
Under this section, the study explains how the following theories discussed by various authors in
their research depending on their various objectives and topic of study. The theories studied are
comparative theory, disconfirmation theory, efficiency wage theory and pricing theory.
2.2.1 Comparative advantage theory
Explains why people engage in international trade as discuss by David Ricardo (1817) in principle
of political economics. It considers the respective costs incurred in the production of goods and
services traded in international market. Different countries incur different cost in producing a
5
common product. Considering a common product and two countries which produce it, this theory
recognizes the country incurring lower cost in providing that good as to be having comparative
advantage over the other.
Thus he advocated that countries should engage in production of goods and services which they
have comparative advantage in. through this; the country will be able to produce goods and
services to satisfy local demand and export the surplus. Because other countries will also have
surpluses in other different products, they will import the products that they do not have using the
money acquired on exports and thus there will be efficient international trade between those
countries and in the globe at large.
2.2.2 Disconfirmation theory
This is a cognitive theory, which explains the post purchase satisfaction as a function of what was
expected. Richard L Oliver developed this theory in 1977. Expectation refers to what anticipated
by the customer about a certain product or a service that is offered to him or her by an organization.
The customers design or have expectations before they purchase a product in which they are
always in deep belief that the product will fulfil their needs.
After purchasing the product, now the customers experience the real value and performance of the
product when they are using it or of a service while being offered to them. According to this theory,
the performance perception is directly influenced by the expectations.
When the expectations exceed the perceived performance, then disconfirmation occurs in that the
customers’ expectations not met. When the perceived performance exceeds expectations, then the
customers are satisfied (Van Ryzin 2013).
2.2.3 Efficiency wage theory
According to Sickles, R. & Zelenyuk (2019) employees of an organization are the main
contributors to the success of an organization through their accuracy, commitment, experience and
skills and knowledge applied. They further argued that efficiency of workers could be identified
or rated in terms of minimal errors made, quantity of work done verses amount of work expected
to be done, reporting hours, ways of handling problems and how to solved them
6
The theory states that firms become more efficient when they pay wages above the equilibrium
level. He argued that when employees are best payed and rewarded they are likely to work hard
with a lot of efficient and commitment without thinking of moving to other organizations. Harley
confirm this as one way of keeping well performing employees in organization.
2.2.4 Pricing theory
Price theory based on Friedman (2017) explains how organizations can select the best affordable
price for their product or services when introducing or launching new or advanced product. Pricing
is also a marketing strategy, because a part from satisfaction, customers also consider the
affordability of the product. Price always determines the first customer’s attitude towards the
product. How the customers view accessibility of the product and satisfaction based on the price
then they start comparing the product with the previously existing products they have been using
before. Demand of the product increases at lower prices and decreases at high prices according to
the basic theory of demand and supply (Friedman, 2017). The theory will help the researcher to
come to understand pricing strategy in order to come up with the best price, that will researcher
enable in attracting the targeted customers.
2.3 Empirical framework
This section explains how various researcher have applied the theories used in the theoretical
framework, checking the applicability of each under different scenarios. The views and findings
of the different researchers explained as follows.
2.3.1 Cost of production
David Ricardo (1817) used the theory of comparative advantage to explain the cost of
production.A Journal on ethanol cost of production survey by Hosein Shapouri and Paul Gallagher
(2002). In 2003, the US Department of Agriculture surveyed 21 dry-mill ethanol plants to estimate
their 2002 production costs, including both variable (feedstock and plant operation) and capital
expenses. These plants produced about 550 million gallons of ethanol in 2002. Net feedstock costs
for the surveyed plants ranged from 39 to 68 cents per gallon in 2002. For cash operating expenses,
the average energy expenditure was 17.29 cents per gallon. Labor costs ranged from 3 to 11 cents
per gallon, maintenance costs from 1 to 7 cents, and administrative costs from 1 to 18 cents. For
capital expenditures, new plant construction costs from $1.05 to $3.00 per gallon of ethanol.
Average investment to expand existing ethanol production capacity was 50 cents per gallon; hence,
7
expansion tends to cost less than new capacity. Comparison with a 1998 survey of ethanol
producers showed that total operating costs in 2002 had changed very little from 1998. It also
showed that the average cost of building new plants had dropped, possibly due to designs that
emphasize economies of scale. The research showed that cost of production depends on the
economies of scales, larger the scale the lower the cost. All the empirical research can be used to
derive parameters on cost of production;
wastage level-minimum wastes reported means lower cost of production.
Price level-lower cost of production incurred thus product priced effectively.
Labour cost-high level efficiency of workers requires the organization to incur higher Labour cost.
2.3.2 Customer satisfaction
The theory of disconfirmation assists in discussing customer satisfaction, which can done by
assessing the perceived quality of products and services provided by a firm. Leon Cresting used
the theory in 1957 in explaining customer satisfaction. It states that disconfirmation is the
difference between perceived performance and the expectations. In the current times in the world,
there has been a lot of demand for quality goods and services and many forms of marketing, selling
and distribution have emerged. There has also been a high concern for customer satisfaction.
Customers have been valued as the most important person in a business perspective. A common
phrase has been used which states that customer is always right
An experiment was by Van Ryzin 2004 of manipulating expectations and performance and found
out that there is a direct effect on performance, however, no disconfirmation.
This theory of disconfirmation has emerged as being the best in explaining the satisfaction of
citizens especially in the public sector. The model states that citizen satisfaction not only depends
on the objective performance of a government service but also on the expectations by the citizens
on that service. For example if a government performs a service in a way that it exceeds the
expectations that the citizens had, they are more satisfied. The same case applies to businesses in
that when they provides a good or a service which exceeds the customer expectations, then the
customers are more satisfied.
8
Empirical tests done on this theory, which majorly involves cross sectional research. These
researches have not been able to entangle the relationship in the model because the variables are
simultaneous in nature. In a more recent study by Van Ryzin 2013, he tested the relationship
between the variables in the model; however, the research yielded mixed results and was not able
to confirm some key relationships between the variables. His research only confirmed a single part
of the model, which is the direct relationship between performance and satisfaction. There was no
evidence on a direct relationship between expectation and satisfaction that had perceived to be
existing.
The inability to confirm the relationships between variables in the expectation-disconfirmation
model (EDM), led to questioning of the assumptions of the EDM model by scholars that include
that perception and expectation are the ones that determine satisfaction. A model of this theory
developed to explain the variables that affect customer satisfaction.
Expectations define what customers anticipate about the product or service been offered. The
customers have an initial expectation, based on how they had previously served, or from a product,
they recently bought. Customers always expect higher.
Perceived performance comes from the customer’s response after using a product or service
offered. He or she gives an opinion on how he saw the performance of the product or the quality
of service offered to him or her.
Disconfirmation is the difference between the above, if perceived performance exceeds the
expectations, then the customer is satisfied, otherwise, he or she is dissatisfied.
(Nam, K., Baker, 2018). Parameters explaining the customers satification: customer responseswillingness of customer to give feedback on the service rendered by an organization.
Product rating- rate assigned by customers depending on the likeness or how satisfied they are.
Number of new customers-refers to customers that are referred by the existing customers
Customer loyalty-how loyal customers are to a firms product
2.3.3 Efficiency of workers
A journal on the contribution of core employees to organizational capabilities and efficiency by
Alvaro Lapez Cabrales, Roman Valle and Ines Herrero. According to Sickles, R. & Zelenyuk
9
(2019) employees of an organization are the main contributors to the success of an organization
through their accuracy, commitment, experience and skills and knowledge applied. The research
tested the core employees in firm competitiveness. The articles define theorical relation among the
value and uniqueness of CE’S knowledge, skills and abilities and organization capabilities that
define competitive advantage of a firm. Using a sample of more than 500 employees in Spanish
firms it analyzed empirically whether CE’S are associated with organization efficiency. Ahr
manager assessed the value and uniqueness of CE’S and different manager appraised
organizational capabilities. Formal method was used to test for efficiency. A variance analysis
indicated higher organizational capabilities for firms using the most valuable and unique CE’S and
data envelopment analysis (DEA) confirmed such firms had the highest efficiency. From the
research above, it can be articulated the following parameters of efficiency of workers:
Quality of output-effectiveness and efficiency of employees towards their work will improve on
the output produced.
Wastage level-amount of wastage level reported is a determinant of workers efficiency. task
completion time-time taken to complete a given task.
2.3.4 Product marketing
Product marketing discussed in the pricing theory by Burke, T (2018), published in an article
whose title was Exchange and Production. The major objective of this research was to achieve a
target return on investment, price stability, market share and increase profits. A pricing modality
describes the “the rules of the game” in a given market. These rules understood by all buyers,
sellers and intermediaries as well as by outside observers. Every individual is interested in prices;
and rightly so. Everyone whether a consumer or a producer, rise or fall in prices affects them.
Consumer is anxious to find out whether the goods he want to buy have become cheaper or dearer.
Similarly, a producer is interested in whether there is an increase or a decrease in the prices of the
products he produces and the inputs he uses. Burke, (2018) explains product marketing as means
of promotion and selling strategy where a comparison between cost incurred in production and
expected output that leads to profit must exist. Affordable prices for a product attract and maintain
the customers of the business.
10
The research have a relation to our research in that it will aid in fair pricing of products to ensure
that they will be affordable to our customers and still attract and retain customers. The parameters
to measure product marketing are:
product enquiries- the number of product existences made by customers.
Product usage- frequency of products used by customers
Customer happiness-how well customers are satisfied by the services offered
2.4 Conceptual framework
Independent variable
Customer satisfaction
Product marketing
Income generation
Efficiency of workers
Cost of production
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Dependent variable
Fig 2.1 Conceptual framework
The framework above explains the relation between the dependent variable, which is economic
value, and the independent variables, which are customer satisfaction, rate of revenue generation,
product marketing, and efficiency of workers and product cost of production.
Customer Satisfaction is the extent to which customer’s expectations about a certain product or a
service met and even exceed the expectations (Leon Cresting 1957). It also viewed from a different
perspective of a consumer where some feels that customer satisfaction is that the products or
services offered are worth the money spent on them.
Efficiency is be reflected by having minimum number of errors committed by employees during
their routine functions. Employees of an organization are the main contributors to the success of
an organization through their accuracy, commitment, experience and skills and knowledge applied
(Sickles, R. & Zelenyuk 2019)
In organizations, revenue generation takes when they market and sell their products. Rate of
revenue generation from this point of view thus refers to the speed and efficiency at which firms
market and sell their products (Card, D., Cardoso 2018).
The cost of production of a product refers to the cost incurred in purchasing inputs for
manufacturing and the additional costs incurred in converting the inputs to final product (Ferguson,
C. E. 2008).
12
Product marketing refers to passing of the information from the business to prospective customers
to make them purchase their goods and services (Saeidi, S. P 2015). Marketing is very crucial to
an organization as it is helps in generating revenue, which in turn helps in generating profits.
Revenue generation is the measure of the financial benefits is as a result from sale of a product or
service. The measure can be in units of monetary terms. It also refers to the value an agent is
willing to pay for a product or service. According to the above framework, there is a general
positive relationship between the dependent variables and the independent variables.
13
2.5 Operational framework
Customer satisfaction
Customer responses
Product rating
Number of new customers
Customer loyalty
Income generation
Profitability rate
Efficiency of employees
Resource utilization
Task completion time
Expansion of operations
Quality of output
Asset owned
Wastage
level
Cost of production
Production
level
Wastage level
Price level
Labour cost
Raw material cost
Product marketing
Product enquiries
Product usage
Customer happiness
Fig 2.2 Operational framework
14
2.6 Conclusion
The relation of independent variable and depend variable can be explained. Increase in the
independent variable causes the dependent variable to change in same direction. The dependent
variables cost of production, efficiency of employees, revenue generated and product market
directly affects the dependent variable that is generation.
15
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
The term research methodology was defined by Mugenda 2003, as a precise plan for making a
study on a research problem and comprises of the blue print for the proposed collection and
analysis of data. This is the section that allows for a critical evaluation of a study’s validity and
reliability. The validity and reliability levels are determined by the accuracy of data collected. This
topic will cover the research design, target population, sampling design, data collection
instruments and techniques and procedures for data analysis and presentation. This is done in order
to accomplish the objectives of the research.
3.2 Research design
Research design can be viewed as the structure of a research paper. It is the one that holds all the
components of a project together. It shows how every element should be done in order to ensure
that the final research paper is in order. It can be simply referred to as the blueprint of the proposed
research. Different scholars define research design in different terms; some of these definitions
include: according to Zikmund, research design refers to a master plan, which specifies the
approaches and procedures for collection and analysis of the needed information. Jahoda, Deutch
& Cook, it refers to the arrangement of conditions for the data collections and analysis in a way
that majorly aims to join relevance to the purpose of the research with economy and procedure.
The study under investigation falls under descriptive research which aims at gaining information
about a particular group of people or community. It describes the current situation as it occurs, it
is concerned with attitudes and perceptions of people about anything e.g. inflation, strikes
3.3 Target population
Mugenda 2003 defines target population as the whole group of individuals, events, subjects,
objects that share similar characteristics, which the researcher purposes to draw general
conclusions. Our study population will comprise of staffs and students of Dedan Kimathi
University of Technology.
16
Table 3.1 Target population
Category
Target population
Percentage
Staff
501
6.60%
Students
7094
93.40%
Total
7595
100%
3.4 Sample techniques and sample size
Sample size refers to small group or sub-group, which represents the whole population and is
important in the determination of statistical precision of the study. In selecting, the sub group the
researcher should take much care to ensure that it fairly represent the whole population. The
procedure used to select the sub group from the population referred to as sampling
According Mugenda and Mugenda (2003) if the target population of a study is in few hundreds,
the sample can be 40%, if many hundreds, the sample can be 20% and if several thousand, the
sample can be 5% . With reference to this, the researcher decide to use a sample population of 5%
because the target population is in several thousands.
Table 3.2 Sample size
Category
Sample size
Percentage
Staff
25
6.58%
Students
355
93.42%
Total
380
100%
The study will adopt random sampling because the target population is not homogenous.it
comprises of staffs who work in different departments and students who are in different years of
study.
3.5 Data collection instruments and procedures
Data refers to raw facts about the subject. It can be obtained from two sources, that is, primary and
secondary sources. Primary data refers to first-hand obtained directly from the sources by the
researcher while secondary sources are obtained from already recorded information about the
17
subject of interest. The study will employ both mainly primary sources of data although secondary
sources of data will be used to a small extent. Primary sources will include interviewing the finance
managers and administering questionnaires. Secondary sources will include journals, newspapers
and public literature from textbooks.
3.6 Data analysis and presentation
The data collected will be analyzed using quantitative methods. It will be edited, classified, coded
and sorted after collection. The analysis will be done using tables in order to present the
frequencies and percentages relating to each respondent and employ computer software (SPSS) to
ease the process and enhance classification. The tables will enable arrangement of data by the
researcher in a logical sequence to make the interpretation and comparison of data from different
classes easy.
18
CHAPTER 4
DATA ANALYSIS AND PRESENTATION
4.1 Introduction
This chapter analyzes and presents the data that collected. Questionnaires were the data collection
tools used to collect the data. Data analysis done in accordance with the objectives of the research
and the general information. Out of the proposed sample size of 380 individuals from Kimathi and
its environs, where 114 responses represent 30% of the total sample size.
4.2 General information
Under this section, the major purpose was to gather information from our respondents relating to
their gender, age and educational level.
4.2.1 Gender
The purpose of this section was to indicate gender of respondents.
Table 4.1 Gender
Response
Frequency
Percentage
Male
72
63.2%
Female
42
36.8%
TOTAL
114
100%
Based on data collected from Kimathi, it is clear that 63.2% of the respondents were males, having
a frequency of 72 respondents while 36.8% of the respondents were females, with a frequency of
42 respondents. This indicates that males in Kimathi are more responsive than their females
counterparts.
4.2.2 Age
The purpose of this section is to present the age of respondents in Kimathi.
Table 4.2 Age
Response
Frequency
Percentage
17-20 years
40
35%
19
21-30 years
49
43%
31-40 years
14
12.3%
41-50 years
10
8.8%
51 and above years
1
0.9%
TOTAL
114
100%
According to the information in table 4.2 which represents age of respondents, it is clear that
majority of the respondents are between an age of 21-30 years old with 49 respondents who
represented 43% of the total response, while respondents between an age of 31-30 years old were
14 represented by 12.3% of the total response. Respondents aged between 17-20 years old were
40 with 35%. The respondent aged above 41-50 years old were 10 with 8.8%. There was only one
respondent aged 51 year and above with 0.9%. It is evident that the respondents are mostly young
people. This means that the target market for our products is majorly the youth.
4.2.3 Education level
The purpose of this section is to present the level of education of respondents in Kimathi.
Table 4.3 Education level
Response
Frequency
Percentage
Secondary
0
0%
Diploma
19
16.6%
Undergraduate
89
78.1%
Postgraduate
4
3.5%
Others
2
1.8%
TOTAL
114
100%
Results in table 4.3 indicate that majority of the respondents are undergraduates with frequency of
11 respondents, resulting to 78.1% of the total response. Diploma students were second to
majority, with frequency of 19 respondents who were represented by 16.6% of the total response
while postgraduate level education respondents were 2, with a percentage of 3.5%, others
responses were 2with a 1.8%. Based on the information on level of education, it is clear that
20
Kimathi is composed of individuals with high level of education, that is, undergraduate, diploma
and post-graduate students respectively.
4.3: Responses from students
4.3.1: Students’ expenditure on leisure activities and their frequency
The purpose of this section is to present the level and frequency of expenditure of students on
leisure related activities.
Table 4.4 Expenditure level and the frequency
Frequency of expenditure
Expenditure
Daily
Once a week
Twice a week
Others
100 – 500
43
16
7
3
500 – 1000
2
14
8
6
Others
1
3
4
0
Totals
46
33
19
9
From the data collected and presented on the above table, researcher observed that majority of
students spend 100 to 500 shillings per day on leisure activities. The second highest frequency is
100 – 500 once a week, 14 students spend 500 – 1000 once a week. There were other students
whose expenditure had other frequencies and other expenditures.
Generally, from their
expenditure behavior, it is a clear indication there is a huge gap for providing the goods and
services that they regularly require.
4.3.2: Product perception
This part shows how the students perceived the products that offered in school. This perception
measured in terms of their comments on products, product rating and the extent to which they can
recommend the product to others.
Table 4.5 student willingness to give comments on products
Responses
Frequency
Percentage
Willing
48
44.9%
Undecided
21
19.6%
21
Not willing
38
35.5%
Totals
107
100%
Results in table 4.5 indicates that majority of the students 44.9% perceives the products positively
and even willing to comment about the products, 35.5% of them perceive it negatively and are not
willing to give comments at all while 19.6% of them are indifferent about the product and thus
undecided whether to comment or not. Show that half of the sample are satisfied well the others
split in between perceiving positively and negative.
Table 4.6 Product rating
Terrible
Bad
Fair
Good
Very good
In university
6
10
42
30
19
Outside
4
9
31
41
22
university
Fig 4.1 Product rating
45
40
35
terrible
30
bad
25
fair
20
good
15
very good
10
5
0
In the university
Outside the university
Table 4.6 and figure 4.1 represent the Students’ opinion about product offered by the university
and outside the university. Under these section students offered their product rating according to
the level of satisfactions. On products inside the university, 6 students rated them to be terrible, 10
rated them to be bad, 42 rated them to be fair, 30 rated them to be good and 19 rated them to be
22
very good. On products offered outside the university, 4 students rated them to be terrible, 9to be
bad, 31 to be fair, 41 to be good and 22 to be very good.
Table 4.7: Product recommendation by the students
Under this section, we were majorly concerned on assessing the level at which those who purchase
products both inside the university and outside the university can recommend them to other people.
Observed that the level at which people could recommend products dependent on how they rate
the product. Those who rated the product as being very good were very willing to recommend it
to others. This was generally the same trend even in the other ratings and levels of willingness.
The data analyzed through the table below and stated in percentage form.
Table 4.7 1 Product recommendation by the students
Never
Not willing
Undecided
Willing
Very willing
In university
5.6%
9.3%
39.3%
28.0%
17.8%
Outside
3.7%
8.4%
29.0%
38.3%
20.6%
university
Table 4.7 that showed the willing of students to recommend the products in and out of the
university students observed to be highly dependent on their ratings. It was observed that those
who found the products (either in 17.8% or out of the university 20.6%) to be very good, were
very willing with to recommend them to others. Those who found the products (either in 28% or
out of the university 38.3%) to be good were willing to recommend them to others. The students
who found the products to be fair, were undecided on whether to recommend or not and the ones
who found the product to be bad and terrible, were not willing at all to recommend them to others.
4.3.3: Product enquiries
In this section, we collected data regarding the percentage of students who are willing to make
enquiries on a product whenever they are in need or whenever they need to have some rectifications
done on it. The findings were as presented on the pie chart below.
23
Fig 4.2 Product enquiries
Product enquiries
No
37%
Yes
63%
From the data
collected,
observation made that 68 students, which constitute 63% of the total students who gave their
responses, make enquiries about products. The other 39 students, constituting of 37% of the
students who responded, do not make product enquiries.
4.4: Employees’ responses
4.4.1: Task completion time
This section indicates how long it takes different employees to complete given tasks.
24
Fig 4.3 Task completion time
task completion time
extra time
needed
29%
specified time
57%
before time
14%
In the data collected and presented in the above pie chart, 57% of the employees completed their
give task within the specified time, 29% of them required extra time to complete their given task
and 14% completed the task before the lapse in time.
4.4.2: Product quality and wastage level
This section indicates the product quality and the different levels of wastage reported by employees
in the university.
Fig 4.7 Product quality
Response
Poor
Bad
average
good
Great
Perfect
Totals
Frequency
0
0
2
3
1
1
7
0%
28.5%
42.9%
14.3%
14.3%
100%
Percentage 0%
25
Data collected on the product quality 28.5% of the responses were in support that the quality as
being average, 42.9% of them were in favor of it being good, 14.3% of them were in the view of
it being great and 14.3% of the remaining respondent view the products offered as perfect.
Fig 4.4 Wastage level
wastage levels
high wastage
17%
no wastage
28%
average
14%
minimal wastage
level
41%
According to the pie chart above fig 4.3 which represent the wastage level, it is observed that
represent minimal wastage level had the highest percentage with 41%, no wastage followed with
28% being reported, high wastage level with 17% followed and finally average wastage level of
14%.
26
4.4.3 Production level and trends in profits
Data collected under this section represents the level of production attained and trends in profit in
different divisions.
Table 4.8 1 Production level
Production level
frequency
Percentage
High
4
57.1%
Average
2
28.6%
Low
1
14.3%
Totals
7
100%
From the data collected, observation made that at 57.1% of the respondents’ opinion was that there
is a high production level, 28.6% of them were of the opinion that there is average production and
the opinion of low production reported lowest percentage of 14.3%.
Fig 4.5 Profits trend
3,5
3
2,5
2
1,5
1
0,5
0
No profits
Increasing
Stable
Decreasing
The respondents gave different opinions on profits, some, 1 of them was of the opinion that there
are n profits made because the organization is a not for profit making, 2 of them viewed the profits
27
as increasing, 3 of them gave the opinion that profits are stable and the other 1 gave the opinion
that profit is decreasing.
4.4.4 Product varieties
Data collected under this section represents the opinion of respondent on product varieties offered
at the university.
Fig 4.6 Product varieties
Product varieties
Yes
No
43%
57%
From the data collected an presented above, 43% of the respondents were of the opinion that there
are no enough varieties of product while 57% gave the opinion that there are enough of the product
varieties they need in the university.
4.4.5 Level of cost of raw materials
This section was to make an analysis of the cost of raw materials. This cost majorly affects the
total cost of production. Our aim was to get to know the level of material cost, which would give
us an overview of the total cost of production because it is the major cost component.
28
Fig 4.7 Level of cost of raw materials
Cost of raw materials
High
Optimum
Low
14%
29%
57%
As presented above, there were three choices of opinion; the opinion that had the highest
percentage was 57% that the raw material cost is at the optimal level, low cost was the second with
29% and the high cost of raw materials had the lowest level of opinion, which was 14%.
29
4.4.6 Product price
This section was to analysis the prices charged on the products offered in the university.
Fig 4.8 Product price
Product price
4,5
4
3,5
3
2,5
Product price
2
1,5
1
0,5
0
Affordable
Fair
Unaffordable
The above data different employees had their opinions on the prices, 4 of the respondents of the
opinion that the prices are affordable, 2 of them viewed the prices as fair while 1 of the respondent
was of the opinion that the prices are unaffordable.
30
CHAPTER FIVE
SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 Introduction
The chapter entails the summary of the findings, conclusion and recommendations. It also outlines
the suggestion presented for the study.
5.2 Summary of findings
According to responses in table 4.1, the researcher found out most of students that gave their
responses are males with 52.9% participation since the highest gender of students at DeKUT is
males compared to females. The percentage of female respondents was 36.8%. According to the
information in table 4.2, the researcher found, that majority of the respondents are between the
ages of 21-30 years old represented 43% of the total response. The total sample consisted of both
the students and the employees. Only one respondent was over 51 years showing that even the
majority of employees in DeKUT are aged below 51 years. Age considered as a good factor to
consider when assessing the requirements of people. Having observed that the majority of
respondents fall under the bracket of 21 – 30 years, that will enable the researcher to identify the
most suitable products and services majorly required by them.
The researcher also found out in table 4.3, that the majority of the respondents are undergraduates
with frequency of 89 respondents, resulting to 78.1% of the total responses. Diploma students
followed with 19 representing 16.6% of the total response while postgraduate level education
respondents had 3.5%. There were no secondary level respondents and there were two of them
who fallen under the category of others and they specified that they had reached the PHD level.
Based on the information on level of education, it was a clear indication that the respondents are
educated and others are undertaking higher education in DeKUT.
On our second section in our data collection tool, we gave specific questions, which meant to
collect data from students. As shown in table 4.4, students expressed their levels and frequency of
expenditure. Observation made that, on a daily basis most students spend 100 – 500 shillings,
which had 43 responses translating to 40.2%, 16 students found to be spending 100- 500 shillings
on a weekly basis, this represented 15.0% of the total respondents. Those found to be spending
500 – 1000 once a week were 14 respondents, which is 13.1% of them. Table 4.5 presented the
results of the students’ willingness to give comments on products. It confirmed that the majority
31
of the students representing 44.9% of the total sample were willing to give comments on their
experiences about a product offered to them in the university. 35.5% of the total sample was not
willing to give any comment concerning their product experience. Some students, who represented
19.6% of the total sample, were undecided on whether they are willing or not in giving product
comments.
Students’ opinion on product rating presented on table 4.6 and figure 4.1. Under this section,
product rating was split into products offered in the university and those offered outside the
university. On products inside the university, 6 students rated them to be terrible, 10 rated them to
be bad, 42 rated them to be fair, 30 rated them to be good and 19 rated them to be very good. The
opinions on rating on products offered inside the university from terrible to be very good represent
the following percentages, 5.6%, 9.3%, 39.3%, 28.0% and 17.8% respectively. On products
offered outside the university, 4 students rated them to be terrible, 9to be bad, 31 to be fair, 41 to
be good and 22 to be very good. These rating represent the following percentages from terrible to
very good respectively, 3.7%, 8.4%, 29.0%, 38.3% and 20.6%. The data collected shows that the
students considered the products in the university to be good was higher than those who consider
those outside the university to be good. But then when comparing the percentage of those who
considered both products to be perfect, the ones from outside the university had a more percentage,
this clearly shows that even if the products offered in the university are good, they still need further
improvement.
Table 4.7 that showed the willing of students to recommend the products in and out of the
university students observations made to be highly dependent on their ratings. It was observed that
those who found the products (either in or out of the university) to be very good, were very willing
to recommend them to others. Those who found the goods to be good were willing to recommend
them to others. The students who found the products to be fair, were undecided on whether to
recommend or not and the ones who found the product to be bad and terrible, were not willing at
all to recommend them to others.
From figure 4.2 which was used to present and analyze the data about product enquiries showing
the number of those student who have ever made any enquiry about a product existence, it was
found that 63% had ever made enquiry while 37% have never done so. This shows that high
32
population students have made enquiries about a product and found out that most of the students
among the 37% who have never made an enquiry is because they have no good channel to do so.
On our third section, we gathered data from the employees of DeKUT; we had seven respondents.
Figure 4.3 presenting the task completion data relating to employees when they undertake their
assigned duties. Majority of employees made up of 57% of the total sample completed their given
tasks within the specified time duration, 29% of them needed extra time to complete their assigned
tasks and 14% completed before lapse in time. From the data collected, it is evident that employees
in DeKUT are efficient in the roles that they perform; however, their efficiency can be boosted for
better results. The researcher’s project aims at giving an alternative way to address this.
We also collected data on the product quality and levels of wastage as presented inn table 4.7 and
figure 4.4 respectively. On product quality, no respondent rated the products offered as being poor
or bad, 28.5% rated them as of average quality, 42.9% rated them as good, 14.3% rated them as of
great quality and 14.3% rated them as perfect. From the responses, it was observed that the
products offered are of good quality. More actions are required in order to address the quality
problems to those whose opinion was that the products are of average quality. Furthermore, the
major aim should be to achieve a perfect quality.
On the wastage level, the majority of the respondents were of the opinion that there is minimal
wastage level, with a percentage of 41%, 28% responded not to have any wastage at all; the other
opinions, which are high wastage and average wastage, had an equal potion of 14% of the total
respondents. From the above, the researcher can make a deduction that generally, there is low
wastage in DeKUT. This research aims at bridging the gap to eliminate wastage and attain a no
wastage point.
Table 4.8 and figure 4.5 shows the data collected and presented for production level and trends in
profits. Results obtained for production level shows that 57.1% of the sample were of the opinion
that there is high production level, 28.6% of them were of the opinion that there is average
production and the other 14.3%, which was the lowest, were of the opinion that there is low
production. Generally, from the data collected, research concluded that high production attained.
The major concern is to address the possible reasons as to why the rest of the population sample
who did not give opinion of high production have. On profits trends 3 respondents were of the
view that the profit are stable, two respondents were of the opinion that the profits are increasing,
33
1 respondent viewed that there is no profit and one respondent viewed the profit as decreasing.
The researcher aims at developing ways to increase revenue generation and thus boosting the
profits.
Figure 4.6 shows the Product varieties in the university, from the data collected it was observed
that majority of the respondent with 63% gave response of yes there are product variety in the
university and 37% respondents gave a no response that no product variety . In conclusion, it is
evident that most of the employees perceived that there are product variety in the university. The
researchers’ project aims at introducing product variety that satisfy customers requirement.
Figure 4.7, which show the cost of raw materials. The results from the figure indicates that 57%
of the sample view the cost as optimal, 29% of the view it as low cost and 14% of respondent
viewed the cost as high. It can be concluded that majority favors’ the cost of raw materials as at
optimal level. The researcher aim to source raw materials from local sources and thus reducing
cost of production.
Fig 4.8 represent the price level. The data shows that 57.1% of the total sample considers the prices
charged for goods being affordable, 28.6% of total sample considers the prices as fair and 14.4%
of respondent considers the prices as unaffordable. The researcher aims at offering products
affordable prices to all.
5.3 CONCLUSION
The researcher concludes that a number of factors, which depended on the particular stakeholder,
affects the revenue generation. In this research, the researcher majorly analyzed the effects on
revenue generation making a consideration on two major stakeholders who are students and
employees.
It has concluded that these people need products offered at fair prices to make them affordable. In
order to achieve these fair prices, there must be a low cost of production of goods. Raw materials
cost, being the major cost in producing a product, should be maintained at the minimum level.
Identifying the most convenient sources of raw materials, for example, sourcing them locally,
which will help to minimize some other costs such as transport cost and thus making them
affordable. The other way to reduce the cost of production is by minimizing wastage level, done
34
by ensuring that employees handle their tasks with care to avoid faulty products and employ
qualified and skillful employees to avoid experimental production.
The researcher also observed that there are no enough product varieties in the university and this
makes the stakeholders under consideration to seek products outside the university. Variety
production achieved when the needs of the customers are meant; the customers’ enquiries should
be attended to in order to know which products they require. Provision of a variety of products
required by customers will boost their satisfaction and will help to improve their loyalty. The
customers will be making frequent consecutive purchases inside the university will help to prevent
resource outflows.
The provision of products inside the university will also help to improve the efficiency of
employees in that they will not be travelling so far to seek for goods and this will help them to
attend their tasks on time. For example in attending their classes on time. Offering good working
conditions to employees improves their efficiency.
5.4 Recommendations
Based on the findings the following recommendations made to DeKUT.
To ensure that DeKUT access the needs of their customers efficiently, they should provide a good
channel where every customer can make an enquiry about a product. This channel will enable the
customers to address both the product they require and problems experienced with the existing
products. Through this, the university will be able to take corrective action and continue to retain
their customers and attract other new customers.
The researcher recommends that the university to identify local suppliers from who to source
products conveniently. By sourcing, the products from local sources will enable them to incur low
cost of raw material and thus the overall production cost greatly reduced. Thus, they will offer
products at favorable prices to all their customers. Favorable prices will help to attract and retain
existing customers.
The university should engage in benchmarking in other firms that they produce the same products,
which are outside the university. The products outside the university had higher number of perfect
opinions; the university should seek to know what they does and improve theirs into an even more
quality. To ensure that the final product is of good quality, they should check it well after every
35
stage of production to ensure that it proceeds to the next level only if it is qualified to do so. By
doing this, the final product will be perfect and of high quality.
The university should identify different ways to boost the efficiency of employees. One of the
ways is to provide them with products they normal source from outside the university. By doing
so it help to boost their morale on job performance and they will minimize wastage level reported.
RECCOMENDATION FOR FURTHER STUDIES
The researcher recommends that although this study will help to address the research on increasing
the rate of income generation in educational institutions, further studies can be done in order to
improve this research or come up with even other new and better ways of addressing the problem
of income generation.
36
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38
APPENDIX I: LETTER OF INTRODUCTION
Dear Respondent,
REF: REQUEST FOR INFORMATION
We are Bachelor of business administration students at Dedan Kimathi University of Technology.
As part of our undergraduate degree, we are required to carry out a research project. In tandem,
we are collecting requisite data for the project titled: FACTORS AFFECTING REVENUE
GENERATION IN KENYA’S EDUCATIONAL INSTITUTIONS (CASE STUDY OF
DEKUT).You have been selected to participate in the study. Kindly provide the required data by
filling in the questionnaire accompanying this letter. Your participation will be highly valued and
appreciated.
Thank you.
Yours faithfully,
39
APPENDIX II: QUESTIONNAIRE
Instructions
The questionnaire is for collecting research information on the factors affecting the economic value
of educational institution in Dedan kimathi university Nyeri County. Please tick in the appropriate
box and fill in the blank spaces provided for those questions where elaborate answers are required.
You are requested to complete this questionnaire as honestly and objectively as possible. All
information collected via this questionnaire is confidential and will only be used for the purpose
of this study.
40
QUESTIONNAIRE
PART A: Personal Details of Respondent (Tick where Appropriate)
1. Sex
Male ( )
Female ( )
2. Age (years)
17-20 ( )
21-30( )
31-40 ( )
41-50 ( )
51 and above (
)
3. Educational level Achieved
Secondary ( )
Diploma ( )
Undergraduate ( )
Postgraduate ( )
Other (Specify)…………………………
PART B: TO BE COMPLETED BY STUDENTS
4. How frequent do you spend on leisure activities like parties outside school? (customer loyalty)
Daily
[
]
Once a week [
]
Twice in a week [
Never
[
]
]
41
Others, (explain)……………………..
5. If you response in question 4 was a, b, c or e, how much do you spend
approximately……………………. ( Product usage)
100-500 [
]
500-1000 [
]
Other, (specify)……………
6. How willing are you to give comments on the product or service offered outside school?
(Customer response)
Never [ ]
Not willing [ ]
Undecided [
]
Willing [
]
Very willing [
]
7. How would you rate the product you get from? (Product rating)
In university
b) outside school
Terrible [ ]
Bad [
]
Fair [ ]
Terrible [ ]
Bad [
]
Fair [ ]
Good [ ]
Good [ ]
Very good [ ]
Very good [ ]
8. How willing are you to recommend the products to friends and other people. (Number of new
customers)
42
a) School products
b) Outside school
Never [
]
Never [
Not willing [
]
Not willing [ ]
Undecided [
]
Willing [ ]
Very willing [
]
Undecided [
]
]
Willing [
Very willing [
]
]
9. Have you ever made an enquiry about existence of a product in the university? ( product
enquiries)
Yes [
No [
]
]
PART C: TO BE COMPLETED BY UNIVERSITY EMPLOYEES
10. How long does it takes to complete a given task? (Task completion time)
At specified [ ]
Before time [ ]
Extra time needed [ ]
11. What the quality of products produced in the university? (Quality of output)
1 poor [
]
2-3 bad [
]
4-5average [
]
43
6-7 good
[
]
8-9 great [
]
10 perfect [
]
12. What is the level of wastage of resources in the university? (Wastage level)
No wastage [
]
Minimal wastage level [
]
Average [
]
High wastage [
]
13. What is the level of production attained in your division? (Production level)
High [
]
Low [
]
Average [
]
14. What has been the trend in profits for your divisions? (Profitability rate)
[ ] no profit
[
] increasing
[
[
] decreasing
] stable
15. Are there enough varieties of products you require in the university? ( Product varieties)
Yes [ ]
No [ ]
Other [
]…………………..
16. Are there any interferences during production in your division?
.
Yes [ ]
No [ ]
If yes, highlight some……………
44
17. What is your view on the prices of the products in the university? (Price level)
Unaffordable [
]
Fair
[
]
Affordable
[
]
18. Do you think that there are some costs incurred in the university that are not necessary?
Yes [ ]
No [
]
If yes, highlight some…………………..
19. At what level of cost do you obtain raw materials?
High [
]
Low [
]
Optimum [
]
45
APPENDIX III: WORK PLAN
ACTIVITY
JUNE
JULY-
OCTOBER
SEPTEMBER
NOVEMBERDECEMBER
TOPIC
SELECTION
TOPIC
APPROVAL
RESEARCH
PROPOSAL
WRITING
QUESTIONNAIRE
FORMULATION
APROVALOF
RESEARCH
PROPOSAL
DATA
COLLECTION
DATA ANALYSIS
PROJECT
SUBMISSION
APPENDIX IV: RESEARCH BUDGET
ITEM
AMOUNT (KSH)
1
STATIONARY AND PRINTING
3000
2
TRANSPORT
500
3
TELLEPHONE AND INTERNET
500
TOTAL
4000
46
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