CONSUMER BEHAVIOR AND SOCIAL MEDIA IN HOTELS

The tourism and hotel industry in the world is booming with a potential to post even better results. However, the rising use of the internet particularly in social networking sites has the potential to help hotels attract more customers (Hanson, 2016). Before social media was invented and made popular, customers used to make decisions on hotel choices based on travel agent recommendations and brochures (Varkaris & Neuhofer 2017, p.102). Currently, tourists are able to use social media to influence their decisions in purchasing various hotel products and services (Varkaris & Neuhofer 2017, p.102). It is common for customers to post and share travel information and experiences on Facebook, upload photos on Instagram and tweet about the best hotels and travel sites to be used by prospective consumers in future. Hospitality and tourism firms are aggressively using social media to market their products and services (Verkaris &Neuhofer 2017, p.104; Hsu 2012, p.973). The use of social networking sites can improve hotel brands, strengthen customer loyalty and increase sales by enhancing booking performance (Alitanay et al. 2017, p.390; Anderson 2012, p.7). 1.2 GAPS in research There are numerous gaps in existing research about social media and consumer behaviour in hotels. Majority of existing literature has focused on the benefits of hotels using social media to market their products and services. Other studies have shown how consumers use social media sites to make decisions on places they want to visit and hotels to look for accommodation. However, very little research has compared hotel performance before social media and after the internet became popular. Furthermore, the factors that influence consumer's use of social media are usually overlooked in favor of how those sites can be used to improve travel experience and communication between the hotels and their clients. 1.3 Significance and purpose of research The purpose of this research is to demonstrate how hotel firms are using social media as a marketing tool. Moreover, the study will demonstrate that social media impacts consumer behavior decision making. It will also reveal how consumers use various social media sites such as Facebook, Twitter, Instagram, Pinterest, Tumblr, blogs, YouTube among others to document their experiences, share information with other customers and offer reviews of places they have visited. The research will also examine the effect on online reviews on hotel bookings and subsequence performance of the affected organization. The research will be important in helping the tourism and hospitality industry to improve their use of social media to market their brands. It will also assist them to develop user-generated content that consumers can readily access to prevent customers from making decisions based on rumors or fake feeds. The study will also help consumers to on how to use various social media sites effectively when making choices and preferences related to hotels. 1.4 Research question The research question is how does social media influence customer before travelling to a hotel? The research will address this question by examining social media use before travelling and how the opinions of others who have already travelled will determine those choices. Furthermore, it will address how marketing managers of hotels generate social media content and post the data on their website for easier access by prospective tourists. The study will use the grounded theory to conduct research and also a literature review on the topic from peer-reviewed journals and articles on social media use to boost travel experience by customers. 2.0 Literature Review Effects of online reviews on consumer choices Consumers are increasingly relying on online reviews to influence their decisions when travelling to various places or before booking a hotel for the stay of entire duration. Research has shown that positive online reviews can increase sales revenues for hotels while negative reviews have the opposite effect (Blal & Sturman 2014, p.370). These reviews come in of electronic-word of mouth (eWOM) posted on blogs, websites, other social media sites (Blal & Sturnam 2014, p.365). Hotels that have more favorable reviews serve as recommendations to customers who will frequent that particular establishment boosting sales in the process(Blal & Sturnam 2014, p.373). The most common example of eWOM used by travellers is the TripAdvisor website that experiences considerable traffic that results in actual bookings of the reviewed hotels (Blal & Sturnam 2014, p.366). Hotels have reported organizational performance as a result of social media usage and positive reviews online reviews on blogs and chatrooms (Anderson 2012, p.5). Studies conducted by Anderson show that hotels experience improvement in bookings after clients visited TripAdvisor website for reports (2012, p.11). The impressive results indicate that any traveller is most likely to check out hotel reviews online before deciding whether to book accommodation or not. The most important thing is for hotels to ensure that the user-generated content on their company websites can match those of other travel websites and blogs (Blal & Sturman 2014, p.369). Online reviews are emerging as a compelling method of marketing in the tourism and hospitality industry around the world (Sparks et al.2013, p.2). However, what is worrying is the fact that travellers trust blogs that provide reviews more than the hotel website that offers similar information. Resorts, spas and others in the industry need to build trust between them and potential customers to increase traffic on their websites that will allow customers to review rather than looking for information somewhere else ((Sparks et al.2013, p.4). The companies need to have active engagement with prospective consumers on Facebook to allow them to post their reviews on the firm's Facebook page. The link between social media and company websites can improve consumer decision making before travelling. Tourism websites and hotel websites report increased visitor traffic due to the impact of social media links from Facebook, Twitter, and Instagram among others (Milano et al. 2011, p.8). Many of the visits translate into sales through bookings and help strengthen the hotel brand. For this reason, hoteliers and restaurant owners are investing a lot in making the websites user-friendly, balancing between user-generated content and market generated content to increase the value proposition to prospective tourists. It is evident that social media reviews have a significant effect on consumer choices before travelling to a hotel, restaurant, resort or spa (Sparks et al. 2013, p.7) Social media and rate of returns for hotel industry Hotels using social media to influence consumer behavior before and after travelling to their desired destination put the focus on the Rate of Investments (ROI). Such emphasis ends up neglecting the consumers but instead measures the rate of investments for hotels as a result of social media usage (Fisher 2009, p. 193). The question arises on how to effectively measure ROI of social media marketing without excluding the impact on or input from customers (Hoffman & Fodor 2010, para.2). The measurement of ROI focusses on widgets and applications, social media sites and blogs (Fisher 2009, p.191). In most case, the measurement metrics include conversion rates, the number of active users, return visits, page views etc. (Hoffman & Fodor 2010, para.4). The most challenging issue for social media marketers is balancing financial ROI for the hotels and the customer experience and satisfaction that arises from it. Majority of returns targeted by hotels using social media is to boost sales revenues and increase brand awareness to their customers (Kumar & Mirchandani 2012, p.59). Studies conducted have shown that it is possible to increase the ROI of social media marketing for a hotel and restaurant business (Kumar & Mirchandani 2012, p. 57). Tourism and hospitality managers have for a long time know that their revenue streams can be increased through the use of social media to market their products and services (Noone et al. 2011, p.295). To boost their revenue portfolio regarding social media use, hotels are ensuring that their revenue management systems are consumer-driven to make use customer relationship management systems in that regard (Noone et al. 2011, p.297). The only way for marketers to efficiently measure and increase their social media RO1 is to incorporate customer influence value, stickiness index and customer influence effect (Kumar & Mirchandani 2012, p.58). Customer satisfaction using social media Every customer wants to have a certain level of comfort that their demands will be met before travelling and that the experience after that will be worth remembering. Studies have shown that there is a correlation between social media usage and customer satisfaction/experience (Trainor et al.2013, p.1). To boost customer experience even before prospective clients travel, hotels are re-evaluating their customer relationship management systems to ensure they cater for social media use by customers. This is because customers are likely to connect with their peers on Facebook or Twitter who have already had the experience and whose constant interaction will determine their own (Trainor et al. 2013, p.2). Therefore, it is essential to develop customer relationships through continuous engagement of clients on a variety of social media platforms to answer any queries that might hinder travelling or booking of a hotel (Trainor et al. 2013, p.4; Rosman & Stuhura 2013, p. 18). The level of customer satisfaction and experience in pre-travel has an impact on the hotel, restaurant or destination brand (Lim et al. 2012, p.198). In this regard, user-generated content is critical. Video blogs and sharing sites such as YouTube create a lasting impression on the consumer before he/ she decides a place is worth visiting or a hotel stay will be memorable. Therefore, firms that can create an unforgettable experience through information shared on social media can improve pre-travel satisfaction and experience; increase brand awareness and strengthen brand loyalty in the process (Lim et al.2012, p.199). For instance, there are customers who due to opinions from peers shared through social media can never stay in any hotel except the Beverly Hills Hotel, Hilton and others. Such hotels have managed to increase their brand awareness and enjoy customer loyalty of such magnitude even from clients who have never visited them in the first place. Customer satisfaction from social media heavily relies on being able to meet consumer expectations(Alam & Yasin 2010, p.71). The expectations are determined by attitudes, values and preferences. If places they plan to travel appeals to their values, clients will most likely opt for them (Alam & Yasin 2010, p.73). For instance, hotels aiming to attract customers from Muslim countries through social media, they should provide information that confronts to their religious values and attitudes to draw them. Social media usage before travel Hoteliers in most continents are embracing social media. With increasing tourism prospects in East and South East Asia, hotels in China, Taiwan and Malaysia are increasingly relying on social media (Wang & Chen 2014, p.3; Alam & Yasin 2010, p.71; Hsu 2012, p.972). The most popular social media platforms of linking business with consumers in China are weChat and Sina Weibo (Wang & Chen 2014, p.4). These platforms are unique to China and determine customer attitudes and preferences before travelling (Wang & Chen 2014, p.5). However, Facebook is emerging as the most popular social media sites to share the travel experience, look for information and even make enquires (Hsu 2012, p.973; McCathy et al.2010, p.7). Facebook is an integral part of eMarketing strategies for hotels that increase customer engagements and positive experiences(Hsu 2012, p.973). Hotels can use Facebook to advertise products and services, engage customers in conversations and promote events taking plec on the premises. It offers significant opportunities for hoteliers through fan club connections, viral marketing, managing complaints, and feedbacks (Hsu 2012, p.974). To enhance their presence on social media, companies make use social media managers (Lanz 2010, p.2). The manager can coordinate the various marketing campaigns on the internet and social media through Facebook, Twitter and Instagram accounts(Lanz 2010, p.3). A companies social media page is a powerful tool for influencing consumer behavior in the hospitality industry(McCathy et al. 2010, p.8). Social media can enhance or destroy a consumer's perception of a premise or destination(Cox et al. 2011, p.3; Verkaris & Neuhofer 2017, p.105). Furthermore, the customer's preference decision for accommodation as a result of social media will also determine their choices for other travel related services(Cox et al. 2011, p.5). The choices will in turn influence the brand recognition in future (Kang 2011, p.142). Travel blogs are also crucial in enhancing customer experiences through expectations before commencing on one's journey to a chosen destination (Upton 2015, p.50). 3.0 Methodology 3.1Grounded Theory The research will use the Grounded theory methodology to conduct the study. Grounded theory is qualitative research method whose aim is to 'generate or discover a theory'(Glaser & Strauss 1967, p.1). Glaser & Strauss (1967, p.2), defines grounded theory as "the discovery of theory from data systematically obtained from social research". The theory developed on the basis of social interactionism to explain human behaviour in social environments. It is used by researchers to discover a framework to explain a social phenomenon through the data they have obtained in the field. Grounded through is only limited to social science because the nature of pure science s makes it inapplicable. 3.2 Justification for the theory Grounded theory is useful for conducting this research because the contextual factors that may influence consumer behavior are not explored. Furthermore, it is a social research and therefore only prudent to use grounded theory in this case. The nature of social relationships of consumers using social media is needs to be examined carefully without bias and distortion of facts, something this theory can effectively achieve. Moreover, grounded theory is essential in studying group behavior in and how they interact with each other. Consumers are likely to interact with each other on social media that will in turn influence their behavior. Therefore, this research is justified in relying on grounded theory to answer the research question. 3.3 Data collection and analysis There are various methods of collecting data to aid grounded theory. They include • Observations: The researcher can choose to observe the behaviour of participants in their natural environment. In this case, one can visit Trip-Advisor website, travel blogs, monitor conversations on Facebook page and Tweets to see how consumers interact with each other before travelling. The problem with the observational method is that the participants behave in a certain way to please the researcher as compared to if they realize they are not being observed. • In-depth interviews: This is the most common method of collecting data for grounded theory. The question should be open-ended to avoid leading the interviewee. The interviews can be conducted in person or on the phone. However, in our case of social media, one can conduct a live chat video interview on Facebook for a group of participants. The interviewer should respect the privacy of the interviewee and the confidentiality of information provided. • Focus groups: It focuses on a group of participants with the researcher as the facilitator and moderator. In the case of social media, the participants can be divided into Twitter users, Facebook and Instagram to get their views. It will also help the researcher to determine if the views and perceptions of consumers vary from one social network to another. 3.4 Findings One of the major findings of this research is that consumer behaviour is significantly influenced by social media(Verkaris & Neuhofer 2017, p.102; Wang et al. 2014, p.3). Consumers get information from blogs, websites such as TripAdvisor, Facebook, Instagram, YouTube among others. Travel blogs and Facebooks are very popular online platforms that affect consumer decision making(Upton 2015, p.60; Hsu 2012, p.973). reviews are crucial for promoting a hotel as a customer preference. Online reviews have the potential of raising consumer expectations and influencing level of satisfaction before they decide to travel.(Blal & Sturman 2014, p.366; Trainor et al.2013, p.4). 4.0 Conclusion 4.1 Implications of research This research is crucial for the hotel industry particularly after the financial crisis of 2008 that saw the decline in sales. Hotels should invest a vast amount of resources in social media marketing to expand their brand awareness. Present studies show that consumers look for information on social media that influences that decisions before travelling(Verkaris & Neuhofer 2017, p.102; McCarthy et al.2010, p.6). Hotels should understand that customer value satisfaction and experience which they go to great length to get on social media in form of reviews, videos or photos. They should know that digital and social media marketing has the potential of improving organizational performance. 4.2 Limitations The timeline needed to conduct the study was too short for a comprehensive and detailed research. Therefore, some of the relevant data may have been omitted in the interests of time. Some of the information provided may not be entirely accurate because some of the hotels do not provide private information on their customer's for follow-ups. Furthermore, some of the private information on social media platforms could not be accessed due to privacy and confidentiality issues. The current study also failed to incorporate emerging mobile applications and social media trends while focusing only on Facebook and Twitter as networking sites. 5.0 References Alam, S.S., & Yasin, N.M. (2010). An Investigation into the Antecedents of Customer Satisfaction of Online Shopping. Journal of Marketing Development and Competitiveness 5(1), pp.71-85 Alitany, M., Gucer, E., Bag, C.(2017). Consumer Behavior In The Process Of Purchasing Tourism Product In Social Media. Journal of Business Research Turk, 9(1): 381-402 Anderson Chris K. 2012. The Impact of Social Media on lodging performance. Cornell Hospitality Report 12 (15): 4-11. Blal I., Sturman M.C. 2014. The Differential Effects of the Quality and Quantity of Online Reviews on Hotel Room Sales. Cornell Hospitality Quarterly 55 (4): 365-375. Carmen Cox, Stephen Burgess, Carmine Sellitto, and Jeremy Buultjens. (2011) "Consumer generated media in hospitality and tourism: Travellers' likes and their concerns about the latest innovation in hospitality marketing" I-CHLAR 2011: International Conference on Hospitality & Leisure Applied Research. Lyon, France.Jul. 2011.Fisher T. 2009. ROI in social media: A look at the arguments. Journal of Database Marketing & Customer Strategy Management 16 (3): 189-195. Glaser BG Strauss AL (1967). The discovery of grounded theory: Strategies for qualitative research New York: Aldine de Gruyter Hoffman D.L., Fodor M. 2010. Can You Measure the ROI of Your Social Media Marketing? MIT Sloan Management Review 52 (1): 41-49. Hsu Y. 2012. Facebook as international eMarketing strategy of Taiwan hotels. International Journal of Hospitality Management 31 (3): 972-980. Kang, Juhee (2011). "Social media marketing in the hospitality industry: The role of benefits in increasing brand community participation and the impact of participation on consumer trust and commitment toward hotel and restaurant brands"). Graduate Theses and Dissertations. 10447.Accessed from http://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=1384&context=etd Kumar, V. & Mirchandani, R. 2012. Increasing the ROI of Social Media Marketing. MIT Sloan Management Review 54 (1): 55-61. Lanz, L.H. 2010. Introducing the Newest Member of Your Hotel Marketing Team: The Social Media Manager. HVS International Journal: 1-3. Lim Y., Chung Y., Weaver P.A. 2012. The impact of social media on destination branding: Consumer-generated videos versus destination marketer-generated videos. Journal of Vacation Marketing 18, no. 3: 197-206. McCarthy L., Stock D., Verma R. 2010. How travelers use online and social media channels to make hotel-choice decisions. Cornell Hospitality Report 12 (15): 4-11. Milano, R., Baggio, R., & Piattelli, R. (2011). The effects of online social media on tourism websites. Accessed from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.454.3557&rep=rep1&type=pdf Noone B.M., McGuire K.A., Rohlfs K.V. 2011. Social media meets hotel revenue management: Opportunities, issues and unanswered questions. Journal of Revenue & Pricing Management 10 (4): 293-305. Rosman, R., & Stuhura, K. (2013). The Implications of Social Media on Customer Relationship Management and the Hospitality Industry. Journal of Management Policy and Practice vol. 14(3), pp.18-27. Sparks B.A., Perkins H.E., Buckley R. 2013. Online Travel Reviews as Persuasive Communication: The Effects of Content Type, Source, and Certification Logos on Consumer Behavior. Tourism Management 39: 1-9 Trainor, K.J., Andzulis, J., Rapp,A., & Agnihotri, R. (2013). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research. Upton, A.(2015). Understanding the reflections of battlefield tourists regarding their experiences to sites associated with WW1 and Vietnam War: An analysis of travel blogs. Accessed from http://aut.researchgateway.ac.nz/bitstream/handle/10292/9015/UptonA.pdf?sequence=3 Wang, Ruolin and Chen, Tianyue.(2014). "An Empirical Study on use of Social Media in the Hotel Industry in China: A Study of Customers’ Preferences and Attitudes"). MBA Student Scholarship. Paper 33.Accessed from http://scholarsarchive.jwu.edu/cgi/viewcontent.cgi?article=1032&context=mba_student

Deadline is approaching?

Wait no more. Let us write you an essay from scratch

Receive Paper In 3 Hours
Calculate the Price
275 words
First order 15%
Total Price:
$38.07 $38.07
Calculating ellipsis
Hire an expert
This discount is valid only for orders of new customer and with the total more than 25$
This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Find Out the Cost of Your Paper

Get Price