The Impact Of Online Reviews On Consumers’ Buying Behaviour In The Hospitality Industry: A Study Of Two 3-4 Star Hotels On TripAdvisor

Problem Statement and Research Objectives

This very specific study focuses to make in-depth overview on the impact of TripAdvisors in providing an effective review to the tourists regarding hotels. Consumers’ behavior is highly dependent on the reviews that the customers collect from various social media and online websites. Therefore, every organization belonging to the hospitality sector is highly has to make an effective rapport with the trip adviser.

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However, the purpose of this very specific study is to evaluate the significance of an effective online review for drawing the attention of customers of multinational countries. Sofitel Phnom Penh Phokeethra is one of the most prestigious luxury hotels occupying a predominant place in hospitality industry (sofitel.com 2017). This very specific study has focused to make an in-depth evaluation on the impact of public review on TripAdvisors. InterContinental Phnom Penh is primarily famous for its traditional interior design. This particular five star hotel draws customers’ attention for its inter-continental flavor (intercontinental.com 2017)). In this very specific study, the research would focus to highlight the consumers’ behavior based on 25 reviews of each hotel from TripAdvisors.

Objectives:

  • To identify the role of TripAdvisors in influencing the buying behavior of tourists
  • To understand the impact of online hotel review on consumers’ behavior
  • Importance of online hotel review for making brand image and reputation

Research questions:

  • What are the roles of TripAdvisors in influencing the buying behavior of tourists
  • What is the impact of online hotel review on consumers’ behavior
  • What is the importance of online hotel review for making brand image and reputation

In order to expand the entire process of business the importance of customers’ appreciation is highly important. People belonging to different geographical boundaries and attitudes would like to show their interest in using hospitality services only when they would receive a good review from different online websites. This very specific study has provided detailed analysis on how different online media platforms are highly effective in dragging the attention of customers.

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Role of TripAdvisors in influencing the customers:

Verma, Stock and McCarthy (2012) stated that TripAdvisors is considered as one of the most reliable online resource that provides constant update about the hotels as well as different travel destinations to the travelers. With the gradual progress of civilization, the needs and demands of the customers are changing gradually. Before visiting to a place directly, the tourists intend to get an in-depth overview about the pros and cons of that particular holiday destination. Therefore, TripAdvisors is one of the most reliable resources where the travelers can get an in-depth review about holiday destinations and its surrounding hotels and restaurants.

This particular online website has created an effective impression all over the world based on which large number of people belonging to various multinational countries intends to use this website. Zervas, Proserpio and Byers (2014) opined that 87% of the 2000 hotel review readers from TripAdvisors have showed their level of satisfaction due to accurate and authenticity of news. In addition, it has also been observed that customers after getting influenced from TripAdvisors intended to visit that hotel. After receiving services that particular customers have entirely appreciated the product quality and services of process of that hotel.

Background Material

At the same time, the individual has become a permanent customer of TripAdvisors. One of the most significant ethics that TripAdvisors intends to maintain is reliability of customers. Blal and Sturman (2014) opined that the service providers are very much flexible to publish the negative reviews that an individual service user intends to give about a hotel. The primary role of the TripAdvisors is to promote the destinations in an ethical manner beyond going the tricks and propaganda.

Impact of online review and its necessary advantages and disadvantages in influencing the customers

At the initial stage of business the technological advancement was not very much effective based on which customers can get necessary benefits and facilities. After the emergence of technology large number of business organizations aim to promote their products as well as services with the help of online media. There is a difference between online promotion and online review. Zeng and Gerritsen (2014) opined that business organizations of hospitality industry take effective promotional activities in order to launch their products and services in the international market. Therefore, online promotion is the initiative taken on behalf of the business experts. People belonging to different geographical backgrounds and attitudes can be aware of the service process after watching this specific promotional campaign. As these particular promotional activities are completely made by the business experts, they intend to use hyperbolic epithets that may not match with the business services.

However, review is not created on behalf of organization. Riasi and Pourmiri (2015) stated that after receiving the services concerned customer intends to give a review about the organizational products as well as services. The review may be positive or negative. Based on the review published on online websites the interested travelers wish to decide their purchasing behavior. As per customers’ point of view, online promotion is not very much effective in influencing the customers’ attention. However, customers can make an effective review with the help of which purchasers’ buying behavior is influenced highly.

Significance of various communication tools in collecting reviews on hotels

Kandampully, Zhang and Bilgihan (2015) opined that the primary communication tools based on which international customers can be aware of the feasibility of hotels include social media, public forum, online media websites and so many. People are from different geographical backgrounds and attitudes. Therefore, electronic or print media is not sufficient in promoting the brand beyond going geographical boundaries. The primary target of hotel business experts is to promote their entire business process in multinational countries so that they can attract the visitors of different geographical boundaries. Social media has already spread widespread wings where the service providers would be able to get enough flexibility in communicating with global consumers. On the other hand, customers who have already received the services tend to use social media platform due to its vast and wide range of its domain. After going through the review different purchasers would get influenced before booking rooms.  

Literature Review

3. Research methodology:

Reza Jalilvand and Samiei (2012) stated that research methodology is the systematic process of collecting appropriate data and information from different reliable resources. Research methods enable researcher in gathering an in-depth overview about the research issue. The impact of online review on consumers’ buying behavior is the concerned topic based on which numerous practitioners and researchers have provided their own point of view. Various methodological tools based on which research would be conducted are as follows:

3.1 Research philosophy

Research philosophy enables to conduct the study on facts and conceptual theories. Research philosophy is classified into three types. These include realism, interpretivism and positivism. This very specific study has focused to select positivism research philosophy that enables a researcher in dealing with the conducting the entire research works with the help of keen observation and belief (Line and Runyan 2012). By making repeated observation about the customers’ reaction, the researcher likes to collect necessary data and information. Positivists think that observation can be repeated that phenomenon cannot be. Repeated observation helps the researcher in evaluating research issue in detailed manner.

3.2 Research approach

Research approach primarily helps gathering appropriate data with the help of theories and concepts. Research approach consists of two major types that imply deductive approach and inductive approach (Wang et al. 2015). This particular study focused to follow deductive approach as this approach enables the researcher to evaluate data on the existing theories. Therefore, the researcher does to have to face major risk factors.

3.3 Research design

Research design organizes the entire research process in a systematic way. Research design consists of three types including descriptive research design, explanatory research design and exploratory research design (Grégoire, Tripp and Legoux 2013). This very specific study focused in following descriptive form of research design in order to analyze the research issue based on collected data. Here, the researcher does not get any scope of evaluating information in own point of view of the researcher.

3.4 Data collection technique

Data collection technique signifies of accumulating important data from reliable resources. Data collection technique is of two major types that include primary source of data collection technique and secondary data collection technique. Primary data collection enables the researcher to communicate with the participants directly (Theodosiou and Katsikea 2012). On the other hand, secondary data collection is highly dependent on book reviews, journals, online websites and so on. This very specific study has selected primary data collection technique that indicates an immediate response from the participants is collected. Total 50 employees from both the two companies have been selected for conducting an effective quantitative data analysis. In addition, total 5 managers from both the two hotels have been selected for collecting qualitative data and information by conducting effective interview.

Role of TripAdvisors in influencing Customers

3.5 Data analysis technique

Data analysis is the most significant method of accomplishing the entire process of research work properly. This very specific study has focused to make qualitative form of data analysis technique. 25 reviews from TripAdvisors have been collected from each hotel in order to collect the point of view of those customers (Sigala 2013). Based on total 50 reviews the researcher evaluates the result of entire research issue by using excel sheet in order to know online review is truly effective in influencing buyer’s behavior or not.

3.6 Sampling method:

Sampling method is the process of collecting data from large number of population. In this very specific study the researcher has selected non-probability sampling technique in order to involve those customers who have already received the service process of Phnom Penh Phokeethra and InterContinental Phnom Penh. Based on total 50 sample size appropriate data and information is collected from the response of customers.

3.7 Ethical consideration

While conducting the entire process of research work researcher has to follow a proper value, beliefs and ethics. While collecting data the researcher has to strictly follow data protection act (Radojevic, Stanisic and Stanic 2015). The participants are never forced to provide information. On the other hand, the relevant data and information that are used within the study should be reliable and valid. In addition, the researcher should not influence the participants to provide biased reply. Based on the spontaneous reply of the participants the researcher can accomplish the entire process of work.

Time Table:

Serial No.

Activities

Start Date

End Date

Duration

1.

Selection of topic

06/10/2017

08/10/2017

3

2.

Formulation of aim and objectives

09/10/2017

10/10/2017

2

3.

Literature review

11111/2017

20/10/2017

10

4.

Research methodology

21/10/2017

24/10/2017

4

5.

Data collection

1/11/2017

3/11/2017

8

6.

Data analysis

02/11/2017

07/11/2017

7

7.

Conclusion

08/11/2017

10/11/2017

3

8.

Final submission

11/11/2017

——-

1

4. Data collection planning:

Planning 1: Collecting characteristics of the hotels

The first step of data collection planning would be conducted on 1st November of 2017. Phnom Penh Phokeethra and InterContinental Phnom Penh have been selected as one of the most recognizable hotels of Combodia. TripAdvisors primarily follows three major formats including written comments, numerical rating on 5 dimensions (overall rating on property, hotel rating, hotel service, hotel rooms and value) and selection button (price, hotel & amenities, time to travel and trip type). Based on three consecutive formats the researcher can collect necessary responses from the service users in order to know the primary characteristics of Phnom Penh Phokeethra and InterContinental Phnom Penh. As a result, a comparative analysis can be conducted.

Planning 2: Evaluating data from hotel reviews

This particular step would be conducted on 2nd November of 2017. In this very specific stage the research and development team would be instructed for collecting total number of reviews. 25 reviews would be gathered from each hotel. Therefore, total 50 reviews would be collected from the website of TripAdvicers. The research and development team would focus to collect both positive as well as negative responses.

Impact of Online Reviews on Consumers’ Buying Behaviour

Planning 3: Data converting

This very specific step would be conducted on 3rd November of 2017. In this very specific stage entire collected manual data will be converted in excel sheet. First the customers’ reply on 2 hotel dimension and amenities will be arranged. After that, it will be counted as positive, negative and neutral comments. Second, the overall rating of hotel will be represented into the graph in order to present the entire research result at a glance.

How would you rate at the hotel services of InterContinental Phnom Penh?

Options

Total responses

Frequency

Percentage

Excellent

25

8

32

Very good

25

7

28

Good

25

5

20

Not very good

25

3

12

Average

25

2

8

 

Mean

2.36

Median

2

Mode

1

Standard deviation

1.287116

How far do you believe that modern interior decoration of Sofitel Phnom Penh Phokeethra can draw the attention of international customers?

Options

Total responses

Frequency

Percentage

Strongly agree

25

13

52

Agree

25

10

40

Indifferent

25

0

0

Disagree

25

1

4

Strongly disagree

25

1

4

Mean

1.68

Median

1

Mode

1

Standard Deviation

0.988264

Findings and analysis:

After evaluating five questionnaires, it can be analyzed that 40% of the respondents use to visit Sofitel Phnom Penh Phokeethra once in a month. This particular frequency of visiting Sofitel Phnom Penh Phokeethra signifies that the service providers are successful enough in using the service process. On the other hand it has also been observed that around 32% of the respondent have showed their satisfaction after using the service of InterContinental Phnom Penh.

After conducting the entire data analysis, based on the online review published in TripAdvisors it can be concluded that Sofitel Phnom Penh Phokeethra has drawn customers’ attention due to modern furnished rooms. On the other hand, InterContinental Phnom Penh has attracted those customers who prefer classic interior decoration. 40% of the service users of InterContinental Phnom Penh prefer to visit this hotel due to classic design of rooms. After analyzing the entire questions collected from the respondents it can be evaluated that the review published in the TripAdvisors left a major positive impact on influencing the purchasing behavior of the customers. 

Qualitative data analysis

Do you think the modern interior design of Sofitel Phnom Penh Phokeethra is successful enough in drawing the attention of international consumers?

In the response to this specific question, the point of views of 3 managers from Sofitel Phnom Penh Phokeethra have been collected. As per the response collected from different managers it can be stated that modern interior decoration on the hotel rooms is one of the most significant attractions due to which international customers get attracted towards using the services. Customers are from different geographical backgrounds and attitudes.

Therefore, the rooms have to be decorated in such a way that people of various geographical backgrounds and attitudes can show their interest in purchasing the products as well as services. As per the opinion of 3 managers of Sofitel Phnom Penh Phokeethra tends to show a proper gesture to the service users so that customers can be attracted.  

Communication Tools for Collecting Hotel Reviews

Do you believe that InterContinental Phnom Penh has to face challenges in drawing customers’ attention due to classic decorations

As per the opinion of two managers working in InterContinental Phnom Penh they have to face innumerable challenges in maintaining a traditional touch within the products as well as services. The service providers have to make in-depth study on how to maintain the classic designs and flavors within products as well as services. The managers have to make alternative strategies as well in order to draw the customers’ attention. While fulfilling the needs and demands of customers of different geographical boundaries the managers had made an in-depth research and development process for collecting data about customers’ needs and desires.   

6. Conclusion:

The study has provided deep insight about the importance of TripAdvisors on the consumers’ buying behavior. Consumers’ are from different geographical backgrounds and psychological attitudes. Therefore, before going to the destination the customers wish to get an in-depth overview about the brands and products. Online review is the only source where the service users like to share their experience. Phnom Penh Phokeethra and InterContinental Phnom Penh are the two luxury hotels. The service providers have observed that their consumers’ behavior is highly dependent on the reviews published in TripAdvicers. In order to collect appropriate response the researcher has gathered 25 reviews of service users from TripAdvisors about the quality of products and services of Phnom Penh Phokeethra and InterContinental Phnom Penh. After collecting data and information, some of the major impacts of online reviews have also been discussed in the very specific study.

Reference List:

Blal, I. and Sturman, M.C., 2014. The differential effects of the quality and quantity of online reviews on hotel room sales. Cornell Hospitality Quarterly, 55(4), pp.365-375.

Grégoire, Y., Tripp, T.M. and Legoux, R., 2013, May. When customer love turns into lasting hate: the effects of relationship strength and time on customer revenge and avoidance. American Marketing Association.

Intercontinental.com. (2017). Luxury Hotels Worldwide | InterContinental Hotels & Resorts. [online] Available at: https://www.InterContinental.com/ [Accessed 30 Oct. 2017].

Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), pp.379-414.

Line, N.D. and Runyan, R.C., 2012. Hospitality marketing research: Recent trends and future directions. International Journal of Hospitality Management, 31(2), pp.477-488.

Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that influence customer satisfaction in the contemporary hospitality industry. Tourism Management, 51, pp.13-21.

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Sigala, M., 2013. A framework for designing and implementing effective online coupons in tourism and hospitality. Journal of Vacation Marketing, 19(2), pp.165-180.

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Wang, L., Law, R., Guillet, B.D., Hung, K. and Fong, D.K.C., 2015. Impact of hotel website quality on online booking intentions: eTrust as a mediator. International Journal of Hospitality Management, 47, pp.108-115.

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