CHAPTER 2: LITERATURE REVIEW

2.1 Introduction
Currently, there are new shift in shape of social media strategies in marketing approach are
constant focus of scholars, academics, and experts (Hadley, 2015). Despite so much
development in social media marketing, hotel industry has been unable to promote itself
effectively on internet and make use of social media to its maximum advantage (ibid). In
recent times, there is a shift in approach as evident that social sites are not only used for
social purpose but Facebook, Twitter, etc is used by organisations to promote their brands,
goods, and services. Thus, it has led to the situation where hotel's administration and
management are facing the challenge of engaging its potential audience in effective manner
by sharing and encouraging consumers to share their personal experience on social platform
(ibid). In modern times, the website's traffic has been controlled by the search engines due to
the gradual modification in the internet functionality (ibid). Moreover, internet has emerged
as strong platform for social interactions between organisations and their targeted audience
(ibid).
According to the study of Walsh (2010), through viral networks, businesses have been
successfully developing an interaction and relationship with their consumers by joining social
media. In addition to that, the industries are influenced by social media to large extent
(Hadley, 2015). The empirical studies in the research are included to investigate the influence
of social media on hospitality business in order to investigate research problem at hand and
assess the functionality of social media in marketing context in order to recommend suitable
strategies to hotel businesses in developing countries.

2.2 Social media in Hospitality sector - Overview

The interpretation of social media varies to large extent due to the framework according to
which it is viewed and evaluated through adapted approach (Hadley, 2015). As per Computer
Economics (2010) report, nowadays, individuals, firms, and businesses are empowered by
internet to access and publish information that can be heard, watched, and read on web.
However, web-based services often come under the scrutiny of authenticity as it is free from
all barriers (Walsh, 2010). The applicability in terms of effective marketing via social media
in the hospitality sector is still below par (Computer Economic, 2010). Walsh (2010) strongly
argued that, it is vital for businesses operating in hospitality sector to acknowledge and

recognise social media applications in developing effective marketing tools and techniques.
Moreover, the work of Hailey (2010) showed that, brand communication, direct customer
communication, commercial advertising, and minimal cost investment are some major
advantages that are associated with social media in recent times. In addition to that,
consumers have the tendency to consider the verbal confirmations to act upon in contrast to
simple viewing commercial advertisement (Hailey, 2010).
Direct communication is one of the main advantage identified by Hailey's work therefore, we
examine it in relation with social media in the present research. Hadley (2015) stated that,
between customers and businesses, the two-fold process is regarded as direct communication
where both are open to express their views via social media working as a medium.
Interestingly, being open channel, honesty and transparency are main aspects that are
encouraged by this specific mode of communication (Hailey, 2010). In addition to that, the
general perception is that direct communication is taking place in virtual environment
because of social vehicle and platform for communication is always viral (Hadley, 2015).
To support this notion, we look at the example of Lurpak (a famous butter brand of Denmark)
that launched 'Bake Club' website. This website was developed with the thought to directly
approach and communicate with baking fans, baking enthusiasts, and fellow bakers online.
The website was direct communication social platform used by the company. Furthermore,
this website facilitated Lupark to get in touch with large number of consumers to inform them
about their products and concepts (Labbrand Consulting, 2010). The website also proved
useful in creating brand awareness and brand knowledge in various consumer-based
communities (Labbrand Consulting, 2010). This aspect of social media is vital in recognition
of brand communication.

2.3 Social Media Marketing Benefits in Hospitality Sector

Laura McCarthy & Debra Stock regarded as two senior administrators at Cornell School of
Hotel Administration commenced research to examine the frequency of traveller guests
reaching lodge based on the reviews and recommendations of other in contrast to awards and
ratings given to them by reputed websites such as; AAA or Forbes (Hailey, 2015). Results
showed that, more travellers were coming on the recommendations and experiences of others.
In addition to that, it is evident that both favourable as well unfavourable posts are deciding
factor for others to decide on their travel trips. for instance, Forbes or AAA. Furthermore, it
was surprising to discover that individuals were probable to post both reviews; favourable

and unfavourable (Hospitality Industry, 2010). Nielsen suggested that 57% of customers
intend to conduct online research and read the reviews prior to making product or service
purchase (The Nielsen Company, 2012)
The inclining social networking trend of operating as media marketing in hospitality sector is
currently reflected as an element in the several marketing budgets. However, these marketing
individuals within the hospitality must remember the benefits associated with the social
media. The advancement of the technology has integrated social media into our daily lives as
a vital element. Various social media platforms has open channels for online marketing and
must be considered by a hotel for its effectual marketing strategy. Moreover, the difference
must be treated consequently. In order to have well balance blend of the social media tools
such as Facebook, Twitter, Corporate Blogs and YouTube.
Another significant toll presented by the social networking sites is the tool of communication.
Hvass and Munar (2012) stated that the development and establishment of the information
communication technology (ICT) has enhanced the consumer communication. Moreover, the
consumers have attain easy access for social networking sites through the use of smart phones
and mobile applications (Dimitris & Vasiliki, n.d.). Through the use of the mobile apps to use
social networking site, tremendous benefits has been witnessed by the industry such as
development of the relationships, establishing the brand awareness and sustaining brand
loyalty with consumers (Bredican & Vigar-Ellis, 2014). Open communicating assist
companies to establish positive relationship with their consumer base and strengthen the trust
relationship by forming a long terms association and enhancing loyal consumer base.
The notion of just communication has to exceed in a direction of trustworthy communication
in order to influence with the advertisement words that entice customer and draw them
towards the service or product of a brand (Dina & Sabou, 2012).The Internet has developed
into a virtual place where majority of the consumers are searching for information to take a
decision regarding the hospitality and tourism through communication (Popescu, et al.,
2013).Consumers are capable of interacting among themselves to share their personal
experiences and express their selves in a manner that draw new customers towards the
business. In addition, the written comments by consumer can be gathered to enhance the
company. Moreover, consumer receives direct access to the companys service instead of
actual travelling to have a face to face meeting (Seth, 2012). Additionally, Seth (2012) also

suggested that social networking sites that seem to be easily available, appealing and
straightforward, discover that consumer involvement is easier.

2.4 Social Media Networks Contribution in Hospitality Sector

As per Fortune Global 100 Social Media Study conducted to Burson-Marsteller, (2010),
mainstream global businesses adopts at least one source associate with the social media
platform. To a certain level, the 79% of top 100 companies within the Fortune Global 500
index are discovered to be utilizing minimal of one platform of a social media for instance,
YouTube, Twitter, Corporate Blogs and Facebook.
Burson-Marsteller (2010) assembled a report stating that some of the international
corporations do recognize the importance of engaging in a social media platforms. Among
such group of social media platforms, most preferred media tool is Twitter, particularly fort
the between the Fortune Global 100 companies, 65%, which is two-thirds, have a presence on
the social networking sites. The one-half of companies are reaching their audience through
the YouTube (50%) and Facebook (54%), whereas, onethird upholds corporate blogs.
Several of these organizations also view the importance of frequent and sustained
engagement. The vast majority of the organizations (82%) with active Twitter accounts have
made tweets in the previous week with an average volume of twenty-seven tweets. 59% has
posted comments on their Facebook fan pages, YouTube videos has been posted by 68% and
blog-site are updated by 36% (cited from Burson-Marsteller, 2010).
If a hotel industry lacks an active presence on social media websites in terms of activities
such as tweet, linking or active blogging, it reflects that a hotels is missing out on a vast
opportunity in the field of digital marketing. In order to maintain the competitive edge in the
digital world, the hotel must engage or be involved with its potential audience through active
participating in the online discussions, podcasts, hospitality forums, hotel review commentary
and RSS feeds, while augmenting brand awareness and developing relationships with its
existing, loyal as well as new customers.

2.5 Implication and impact of Social Media Marketing

One of the emerging norm of the 21st century is the photo sharing (R'athonyi,
2013).Individuals are interconnected with their family and friends through a social media,
particularly through the use of the social networking sites. An individual is capable of
viewing the global events from the comfort of their home and with a single swipe of their

finger on the screen or with a click of a mouse. The is cab be viewed as golden opportunity
by the tourism industry to draw consumer through the use of photos and videos uploads on
social media sites to fascinate the viewers with the breath-taking sceneries. As per Cem (n.d.)
over 20% of Internet users in US, who follows a particular brand on a social networks,
follows a travel brand as well.
In addition, the visitors or followers of the tourism websites are capable to view the other
customers' reviews, particularly when a loyal consumers upload the images of the hotel,
destination and restaurants on their personal websites, for instance, Facebook, which relates
directly with the tourisms website. A part from that, online reviews, acknowledge as word of
mouth (WOM) is also a vital element in drawing tourists (Manap & Adzharudin, 2013).
As previously mentioned, in the introduction, WOM is viewed as trustworthy by individuals
in contrast to the traditional marketing medium. However, the study of Letvin et al., (2008)
and Lange-Faria and Elliot (2012) oppose the aforementioned notion. Fotis, et al., (2012)
reported that US customers, 82%, who search online reviews from the travel regarding their
travel relevant decision-making. Significant number of consumers perceived social
networking sites as highly trusted medium of information due to the perception that
information given by individuals that are known to the user or at least have an acquaintance
with them, and are particularly trustworthy by the individuals that that are among their family
and friends.
Moreover, detracting or attracting individual, online reviews additionally present information
to an individual enabling them to picture their desired destination (Manap & Adzharudin,
2013). Similarly, travellers frequently base their prospects on the experiences of other
travellers to attain significant and beneficial information in order to eliminate risk and
enhance travellers confidence while making a decision on the travel plans (Fotis, et al.,
2012). According to Rathonyi (2013) Trip Advisor is presently one of the major travel
review website, with its 74 million active users frequently viewing the website to attain
advice and plan the holidays. Moreover, the social networking sites can also be accessed
through smartphones. Bredican, et al., (2014) proposed that mobile apps effectiveness can
influences additional post-purchasing behaviours of the consumer that is evident in the
attitude.

2.7 Impact of Social Media on hospitality sector

The major impact on the variation in consumers behaviour is due to the social networking
sites which deliver a platform for consumers to associate with other individuals and company
(Bilgihan, et al., 2014).The dynamic growth of the internet users has had a tremendous
impact on the hospitality sector and tourism industry, whereas, in present time consumers are
altering the marketing rules. For a business to be successful, it is vital for its marketers to
initiate a decision founded on the needs of the consumers, evident modification in the society
and technology development.
The approach plays a fundamental role in the customer gratification and strengthening the
consumer relationship to form loyal customer base. Moreover, the social networking sites
assist in recoding consumers information to refer to whenever required (Assenov &
Khurana, 2012). Moreover, the communication services are provided by the social
networking sites to generate brand awareness and establish a reputable brand image
(Bilgihan, et al., 2014)
2.7.1 Cost and Time Effective
Majority of the hotels are aware of the significance of the social networking sites for
attainment of the recognition to establish brand awareness (Assenov & Khurana, 2012).
Often, hospitality and tourism industries both take part in becoming active on social
networking sites in order to capitalise on the opportunities without missing out on any posts.
As per Assenov & Khurana, (2012), hotels are striving to invest highly in social media
regarding time and personnel as at present the investment is not very high for the (P. 331).
All these time and money investments for social networking sites are perceived as
inexpensive however, provide itself as an effectual and efficient marketing tool. Moreover,
social networking sites are appropriate as they provide an ease regarding consumer replies.
In addition, use of advance communication technologies provides business with great
efficiencies, flexibility and teamwork to supplier company (Lange-Faria & Elliot, 2012). The
use of mobile apps to access networking sites also contributes in enhancement of social
networking strategy due to a swift access and can be viewed off-line providing convenience
(Bredican et al., 2014).In addition, another significant tools that has emerged are search
engines due to availability of access information on the Internet (Xiang & Gretzel, 2010). The
access to Internet does not take longer time and search becomes efficient and fast, hence
individual rely on the Internet as their primary information source (Dina & Sabou, 2012).

2.7.2 Social Media role in Build Image and Brand Awareness

An inclined number of hotels have contributed in becoming a part of social networking sites,
which has assisted them in forming brand image and to promoting their hotels with the rise of
popularity. Convincing consumers that money is well spent on their chosen hotel deals and
assists in encouraging return business along with generating brand awareness (Mahmoodet al,
2012). As previously mentioned, social networking sites can have a significant effect on the
industry in either positive or negative manner, regardless of the business or a franchise size
(Mahmoodet al, 2012).
Once a business becomes a part of social networking sites, the information gets there and
cannot be just drawn back, therefore each and every action has to be taken with the complete
responsibly. Moreover, the reviewers reply should also be given in a well thought manner as
it is critical for the brand image. Majority of the business within the hospitality industries are
utilizing social networking sites for their personal benefits (Mahmoodet al, 2012).The
consumer responses are to responded with morality to protected hotels brand image despite
the reviews being interpreted as good or bad (Mahmoodet al, 2012). Mahmood and others
(2012) proposed that with the swift modification in the technology, it is become impossible
for every hospitality operator to disregard the social media (p. 2).
2.7.3 Promotion
Social networking sites are emerging as significant mode of communication for product
promotion (Indian Express, 2014). As per Zeng (2013) an effectual plan for market
promotion is the use of social media to retail tourism services and products whereas, in
comparison the use of social media can also assist in the latest promotional announcement.
For instance, a social media site can be used to post a last minute promotion when the
printout of promotional flyers are challenging due to time constrain. Moreover, the move is
cost effective due to the absence of the printing of leaflets. As the number of Facebook users
is significant, it is vital to have an interaction between the company and consumers. Assenov
and Khurana (2012) proposed that, it would be practical to provide Facebook users with the
promotion of special offers when they have become a Facebook fan of companys Facebook
fan page. Moreover, the approach is beneficial in brand promotion and maintaining loyal
consumer base. Moreover, it is beneficial approach to promote their merchandise on the
social networking sites.

2.8 Online community marketing and social media

Social media are innovative Web-based applications in online marketing (Yang, et al., 2010).
Companies utilize social media to form online communities to (1) build new business models
that include a new product marketing channel (Ulusu, 2010; Yang et al., 2010 and 2008), and
(2) build strong relationships with consumers by overcoming limitations of time and place
(Bolotaeva & Cata, 2010).
As an innovative marketing channel, the online communities permits marketers to (a) collect
information regarding current or potential consumers from their profiles, (b) conclude
consumers requirements and partialities founded on their history of community practice, and
(c) acquire direct responses from consumers (Ulusu, 2010). Marketers can accomplish
elevated extent of the customization by observing the communitys posted content and can
acquire an in-depth knowledge of the each individual consumers needs, utilizing this
information to establish different products/services. This assist marketer to offer and advertise
their new products or service to the targeted consumer market (Chung & Buhalis, 2008).
Online communities are perceived as an effective tool by the marketers for the establishment
of strong relationships with their consumers. The established relationship can be further
enhanced by the notion of the Website stickiness. The stickiness of a particular site is
classified as a capability of the site to retain consumers by establishing consumer value, for
instance, rewards for customer loyalty, customized or personalized products/services, and
reliance (Walsh, 2010). In addition, the website stickiness can embolden consumers to
interrelate more frequently with other online community members and with the business
(Hailey, 2010).

2.9 Targeting the Consumers

A company can discover about their consumer needs and preferences through having
knowledge about their consumer. Moreover, the relationship with the consumer can be
enhanced through companys Customer Relationship Management (CRM) through the social
networking sites. Once a business has an understanding of a consumer wants based on their
income, it becomes easier to target particular consumer group and influence them to purchase
the products and services. In order to comprehend the consumers behaviour, one of the vital
elements is the understanding of their manner of decision making in detail (Twumasi &
AduGyamfi, 2013). Moreover, the social networking sites have prospective to extent the

words thus the sites ensure the company has an ease in targeting and reaching their respective
consumers (Murray & Waller, 2012).

2.10 Implications
Present day customers are becoming highly resourceful and prefer to research online prior to
making a decision regarding their travel needs. Significant amount of time is invested in
online searches and carrying out initiatives in a strategic manner, they are capable to witness
the outcome of their labour. Hotels that are experience healthy revenues on their initiated
investment should incline the intensity of their time spent in ongoing manner to develop their
business for the online market. Although, some have not yet step in the online business arena,
however, they should be aware there is no guarantee that customer would go ahead to book
online, however, they may use available online resources when concluding a decision.
Several of such notions may be introduced through the use of various tools. The tools chosen
by the present study are based on their ability to explore each concept. Prior to considering
the implementations for any of the stated concepts, it may be beneficial to establish a
Strategic Marketing Plan that defines the objectives, goals, strategies and tactics for the
involved project. In this regard, the business will have available guidelines introduced for
ideas implementation. Moreover, this will serve as a timeframe for the intervals of three
months, six months, or nine months indicators, in order to measure the goals in the absence of
a planned plan, the business may experience challenges to stay in the market through its
inbound marketing strategies.
In last, in the absence of the timeline and plan for a performance measure, it can be
challenging for a business to regulate the extent of its success or failure.

2.11 Problems
The social networking common dependency is on the word of mouths (WOM) general
perception (WOM) or presently known as electronic word of mouth (eWOM) as the contents
are created by the consumers online. WOM and eWOM have a similar purpose of provide
consumers with the information, (Ranjha, 2010, p. 17) which then either defame or promote
the brand however, in eWOM, comments may be posted by unknown online users who lacks
credibility, therefore consumers who refer to the site does not belief the sources (Lange-Faria

& Elliot, 2012).Studies have revealed that social media has influence on the tourism industry
in positive as well as negative manner(Litvin, Goldsmith & Pan, 2008). At present, social
networking sites have witnessed tremendous growth in terms of user accounts consequently
as per Assenov and Khurana (2012), the trends in marketing have altered and instead of
companies communicating a message to their consumers currently consumers can
communicate with each other through the use of social media (P. 3). A consumer could
provide false statement that may be negative by sharing their testimonial or relating an
experience or may download content founded on the personal impression concerning the
business, and others within the network can feel the impact of the opinion of the consumer
(Seth, 2012).

2.12 Conclusion
It becomes evident that the use of the social media tools has tremendous advantages; and also
has its fair share of disadvantages. However, with the focus on tow vital issues for instance
engagement and content, an organization can maximize the prospective of social media tool.
The brand must recognize the target audience and thus be engaged in the conversations that is
credible and relevant to the content. The overall investment cost is low and therefore social
media is a beneficial communication platform for engaging the consumer and the brands
which contributes to the brand recognition. One fundamental aspect to be knowledgeable
about is the social media could appear to be lower in cost; though it require significant time
investment. The business will be required to have precise objectives when utilizing social
media along with the appropriate set of strategies for their respective business to be
successful in the marketing strategy (Bredican and Vigar-Ellis, 2014).
Dissimilar to the traditional media, social media has an additional advantage as it provides
two-way conversation and communication channel for and conversations and exchange of
views. The traditional marketing tools, for instance, print advertising, mail blast and direct
mail are gradually losing their effectiveness since consumers preferences are switched to
online search prior to purchase decision making (Zeng, 2013). With the introduction of
internet, consumers source for hotels recommendations through trusted sites when deciding
on travelling arrangements. These tools permit the consumers to initiate a conversation and
hypothetically are the advantageous to be transformed as the brand ambassador.
Though the hospitality industry has still to evolve to use social media adoption, several
international hotel chains have recognized the impact of the associated advantage of the

social media benefits. The organization needs to have a consideration for the business when
implementing social media plan. In brand communication, regarding the organization
strategies to be effectual, social media requirements integrated within the plan execution. The
research study will be evaluated to comprehend the appropriateness of social media as a way
of Hospitality Industry marketing.