INFLUENCES OF SOCIAL MEDIA FOR TOURISM AND

HOSPITALITY MARKETING AND PROMOTIONS

A Thesis Presented
To The Faculty and Staff of Hospitality Department of
Jose Rizal Memorial State University-Katipunan Campus
Brgy. Dos, Katipunan Zamboanga delNorte

In Partial Fulfillment
Of the Requirements in the Research Subject

Researchers
Lotcei T. Amban
Nekki G. Sabellon
Grace Ann A. Sustines

MARIA JULIET B. SANLITAN, MTHM

Research Adviser

JULY 2021
 APPROVAL SHEET

This thesis attached entitled INFLUENCES OF SOCIAL MEDIA

FOR TOURISM AND HOSPITALITY MARKETING AND PROMOTION

prepared and submitted by the researchers: LOTCEI T. AMBAN, NEKKI G.

SABELLON AND GRACE ANN A. SUSTINES in partial fulfillment of the

requirements for the Degree of Bachelor of Science in Hospitality Management has

been examined and recommended for acceptance and approval.

Approved:

MARIA JULIET B. SANLITAN, MTHM ________________________

Research Adviser Date Signed

MARY RUTH O. QUINTERO, MSA, REA, REB ________________________

Vice Chairperson College Research Coordinator Date Signed

RENATO F. MALATE, DPA _______________________

Associate Dean, College of Business and Management Date Signed
 DEDICATION

To our parents, siblings,

Teachers, classmates,

And friends;

And

To our God Almighty father

This humble work is dedicated.

-The Researchers

ii
 ACKNOWLEDGMENT

The researchers wish to extend their deepest gratitude for the full support and

assistance by the following personalities for the completion of this quantitative

research:

Dr. Renato F. Malate, as Associate Dean of College of Business Management

in allowing the conduct of their research.

Mr. Raymund B. Lombres as the program chairman in Bachelor of Science in

Hotel and Restaurant Management in sharing his expertise in guiding and making

their research.

Mrs. Maria Juliet B. Sanlitan as their research adviser, for being patient and

for trusting their capabilities.

Ms. Yvonne L. Sadoy for being their statistician, helping them completing

their statistical analysis.

To their parents and guardians who never get tired of supporting them

emotionally, spiritually, and financially.

To their friends and classmates who help them in making their research study.

Lastly, to God Almighty Father, for the life, good health, amazing grace he

spread, for the knowledge he showered upon them and to their family.

-The Researchers

iii
 ABSTRACT

The growth in mobile device usage has changed the hospitality and tourism
industry, its transition from traditional marketing and promotion to the use of social
media as new tool in its marketing and promotion. Guest reservations and or customer
purchase of products and services has also begun to shift towards using social media
platforms, and rightfully so; the enormous reach and global interconnectivity of these
platforms make them a suitable for the said industries. Researchers aimed to assess
the influences of social media in the marketing and promotion of tourism and
hospitality industry in Dipolog City, province of Zamboanga del Norte. The
respondents includes those employees who are in charge of social media marketing
strategies, either sales or marketing managers, online communication manager, and
assistant of marketing manager or simply general managers. This study used a
descriptive research design which aimed in describing the nature of existing situation.
The statistical tool used includes percentage, frequency of distribution and weighted
mean which are used base on the purpose of the study. Its outcome has proved to be
an excellent strategy in improving the hotel and restaurant popularity thus could
increase the sales and profits after promoting the said products and or services. More
promotional activities of hospitality and tourism industries need to be undertaken via
Facebook, Twitter, Instagram, Youtube and establishments’ own website. Since
Facebook dominates the social media platforms and many people are accessing
Facebook frequently on their mobile phones. Hence more emphasis should be given
on Facebook for hospitality and tourism industry’s promotions.

iv
 TABLE OF CONTENTS

Title Page

TITLE PAGE……………………………………………………………….i

DEDICATION ………………………………………………………………ii

ACKNOWLEDGEMENT ……………………………………………...… iii

ABSTRACT………………………………………………..………..………..iv

Chapter 1: INTRODUCTION (THE PROBLEM AND ITS SCOPE)

Rationale of the Study……..…………………………......................................1

Theoretical Framework……..…………………………....................................3

Conceptual Framework……..…………………………....................................4

Statement of the Problem……..…………………………..................................5

Significance of the Study ……..…………………………..................................5

Scope and limitation……..…………………………......................................7

Definition of Terms……..…………………………......................................…8

Chapter 2: REVIEW OF THE LITERATURE AND CONCEPTUAL FRAMEWORK

Related Literature……..………………………….....................................……..
……….9

Chapter 3: METHODOLOGY

Research Design ……..…………………………......................................……20

The Setting……..…………………………......................................……..……20

The Respondents of the Study………………………………...……..…………21

The Instrument …………………………………………………..……………23

Validation of Instrument…………………………………….……..…………23
Data Collection Procedure…………………………………………..………24

Statistical Treatment……………………………………….……..…………24

Chapter 4: PRESENTATION AND ANALYSIS OF DATA

List of Tables/Figures

Figure 1……………………………………….……..…………….……..……26

Figure 2……………………………………….……..…………….……..……27

Table 1……………………………………….……..…………….……..……28

Table 2……………………………………….……..…………….……..……29

Table 3……………………………………….……..…………….……..……30

Chapter 5: SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATION

Summary………………………………………………..……..………………32

Findings………………………………………………..……..………………33

Conclusions………………………………………………..……..……………34

Recommendations ………………………………………………..……………35

References…………………………………………………..……………......37

APPENDICES

Appendix A ………………………………………....………....………....LETTERS

Appendix B………....…………………………………. SAMPLE

QUESTIONNAIRE

Appendix C ……………………………………...……...……..DOCUMENTATION

Appendix D…………………………………………………CURRICULUM VITAE

 Chapter 1

INTRODUCTION

Rationale of the Study

Globally, the number of mobile device subscriptions has seen exponential

growth over the past decade. By 2020, it is estimated that there will be 5.7 billion

mobile subscribers, representing a mobile phone penetration rate of 73%. The growth

in mobile device usage has transformed the travel and tourism industry; travel

booking is increasingly occurring through mobile devices. Consumer engagement has

begun to shift towards mobile platforms, and rightfully so; the vast reach and

worldwide interconnectivity of mobile devices make them a suitable platform for

commerce. As mobile device penetration rates strengthen globally, consumer

engagement through this platform is only expected to strengthen. Many countries

regard social media as an important tool to promote their tourism industries (Zeng,

2013).

In this new generation, social media creates a huge impact in terms of

socializations, communications and promotions. People nowadays are often hooking

on using their social media accounts such as Facebook, twitter, instagram and etc. in

looking for information related to news updates, trends and vast promotions from

several establishments. Social media have become essential marketing tools for firms

and organizations worldwide. In tourism and hospitality businesses, social media are

strategic tools that play a fundamental role, especially in promotion, business

management, and research functions (Leung et al. 2013). Today, the industry is on the
 2

rise again and has changed dramatically with the overwhelming appearance of social

media platforms creating new opportunities to progress and attract the customer

through facilitated communication and empowered guest engagement. (Benea, 2014).

Hoteliers should therefore embrace the new ways people are communicating and be

ready for the changes in consumer behavior and expectations that are on the horizon.

By being up to date with social media marketing trends and developing a dynamic

online presence, hotel companies can quickly adapt to the disruption and achieve an

early adopter advantage when attracting business from tech-savvy millennials.

Social media is an option for hospitality industry since it provides

opportunities to manage and present business content and it helps in identifying core

values that draw clients and customers to business. Most companies would benefit

from a cohesive strategic plan that will integrate social media efforts with overall

marketing effort. Engaged customers spend more money and return back to business

more often. It also helps in brand awareness and building brand equity (Roberts,

2012). Mrs. ChonaAdajar Andal (Administrative Officer V of Tourism Office in

Batangas Province), they are already starting using social media in promoting the

Tourism of Batangas, because they have noticed that by using social media it will be

easier for them to encourage more tourist to visit Batangas Province, but they need to

further utilize the continuous usage of social media. That is the reason why social

media has been proven to be an excellent strategy rather than any promotional

campaign. The main problem encountered in using social media is that, customers’
 3

opinions, thoughts and expressions are not well presented that leads to bad

impressions and unfair criticism (Buted, et al.,2014).

The purpose of this study is to assess how social media influences the tourism

and hospitality industry as a part of its marketing strategy for promotions of its

products and as well as services. This study anticipates in finding out how social

media will influence and contribute in the continuous progress of the tourism and

hospitality industry of Dipolog City.

Theoretical Framework

This study is anchored on the theories of Commitment-Trust Theory of

relationship Marketing, Social marketing Theory and Adaptive Structuration Theory.

Commitment-Trust Theory of Relationship Marketing by Morgan & Hunt

(1994) involves forming bonds with customers by meeting their needs and honoring

commitments. Rather than chasing short-term profits, businesses following the

principles of relationship marketing forge long-lasting bonds with their customers. As

a result, customers trust these businesses, and the mutual loyalty helps both parties

fulfill their needs.

Social Marketing Theoryby Philip Kotler and Gerald Zaltman(1970) is a

theory of mass communication that promotes socially valuable information and

socially accepted behaviors. It tries to integrate marketing ideas, principles, tools,

techniques and socially beneficial concepts to promote communication and benefit

society. This theory emerged when marketing techniques were realized to sell ideas,
 4

attitudes and behaviors rather than products and includes the concept of

“Edutainment” (Education and Entertainment).

Adaptive Structuration Theory by DeSanctis and Poole (1994) criticizes the

technocentric view of technology (Technological determinism) use and emphasizes

the social aspects. Groups and organizations using information technology for their

work dynamically create perceptions about the role and utility of the technology, and

how it can be applied to their activities.

Conceptual Framework

INPUT OUTPUT
Social Media Usage The Impact of Marketing and
Promotions on Tourism and
Hospitality Industry

Promotions Sales
Customer Popularity
Awareness
and
Advertisements
Occupancy

Figure 1. Schema of the study

 5

Statement of the Problem

This study aim to assess the influences of social media in marketing and

promoting tourism and hospitality industry in Dipolog City, province of Zamboanga

del Norte.

Specifically, it attempts to answer the following questions:

1. What is the business profile in terms of;

1.1 Type of Business

1.2 Year in Operation

2. What is the level of social media influence to the marketing and promotion of

Tourism and Hospitality industry in terms of:

2.1 Facebook

2.2 Instagram

2.3 Twitter

2.4 You tube

2.5 Website

3. What is the level of status of tourism and hospitality management after posting

promotions on social media in terms of:

3.1 Sales

3.2 Popularity

3.3 Occupancy

Significance of the Study

The study will be conducted to find out how social media will influence and

contribute in the continuous progress of the tourism and hospitality industry of

 6

DipologCity,province of Zamboanga del Norte. The result of this study is beneficial

to the students, to the parents, teachers, to the community, school administrators,

researchers and other interested individuals because this can give empirical data as

basis in determining the positive and negative effects of using social media and its

influences to tourism and hospitality industry.

The study will also benefit student who are still at school because it will give

them information about how social media influences not only in tourism and

hospitality industry but also in the social soundness/aspect of every individual.

The study will also benefit the parents to enable them to realize their great role

in educating their children in the proper usage of social media flat forms.

This study will also benefit the teachers on the steps to take for they could be

informed how important education is to the development of social responsibility and

awareness in expressing oneself using social media flat forms and how it influences

the way people perceive.

This study will also benefit the school administrators. It will provide them

information on the influences of social media in marketing and promoting the school

and its effects on the personality development of the students.

This study will also benefit the future researchers and other interested parties

to know how using of social media flat forms influences the marketing and

promotions of tourism and hospitality industry and its possible effects on the

development of both industries.

 7

Scope and Limitation

The aimed of the study was to assessed the influences of social media in

marketing and promotions of tourism and hospitality industry in Dipolog City,

province of Zamboanga del Norte. The study considered the business profile,

respondent’s personal information such as their name (optional), gender, age and type

of work or specialization. The researchers limited the study with ten (10) hotels

including Mibang Hotel, GV Hotel, Top Plaza Hotel, D’ Hotel, Camila 1, Camila 2,

West End Court, Missio Dei Hotel, Ariana Hotel, C&L Innand ten (10) Restaurants

including McDo, Jollibee, Greenwich, MangInasal, Chowking, Ati-atihan, Big Joss,

Chicken Inato, Chapters, C&L Fast Foodin Dipolog City, mostly located in close

proximity within the city. The respondents of the said study included those who are in

charge of social media marketing strategies within the hotels or establishments, either

sales or marketing managers, online communication manager, and assistant of

marketing manager or simply general managers. This study was conducted from

January to May 2021.

The study does not included those hotels and restaurants that have small room

accommodation and food accommodation and will not also include those employees

that are not in charge of social media marketing strategies, sales or marketing

managers, online communication manager, and assistant of marketing manager or

simply general managers.

 8

Definition of Terms

Internet: An electronic communication network that connects social media

applications by using gadgets such as cellphones, laptops, and computer etc.

Social media application: A type of tool use in marketing and promoting tourism

and hospitality industry which refers to the online communication tools, such as

platforms like Facebook, Twitter, Google+, Instagram, Flickr, YouTube, Pinterest,

private websites and blogs.

Business: An establishment that offers products and services in tourism and

hospitality industry.

Influence: To cause a change or effect on something.

Tourism: An area where you can find many beautiful destinations which promotes

tourists attraction.

Hospitality industry: A kind of industry where it provides services for the guests.

Marketing: It includes activities that are involved in advertising hotel’s products and

services.

Promotion: An act of promoting something such as by using social media flat forms

for advertisement purposes.

Website:A web page created by a business establishment.

 Chapter 2

REVIEW OF RELATED LITERATURE

Tourism and Hospitality Industry

UNWTO (United Nations World Tourism Organization) defines tourism as “a

social, cultural and economic phenomenon, which entails the movement of people to

countries or places outside their usual environment for personal or

business/professional purposes”. For some tourism represents relaxation and fun, a

trip during the holiday weeks away from work, and some doubt the need for study and

research. But for others, tourism is a source of employment; it is a business that brings

revenue to millions of people around the world; it is a source of living. Therefore it is

important to research it, analyze it and study it more attentively.

“Tourism has emerged as a major economic sector and source of social and

environmental change since the 1950s. It has also become a field ofserious research

and scholarship in many academic disciplines since 1970s. The patterns of tourism

development in different parts of the world reflect the histories and cultures of those

regions and nations, but tourism is a nearly universal phenomenon. It is an important

source of wealth for many nations which becomes a “high priority for many people”

(Robinson, Lück, and Smith,2013). The statement emphasizes on the importance of

tourism, which highly increased over years, and the diverse functions of tourism in

the world.

For a better understanding of the term, its characteristics should be defined: it

is a service, not a product, and as a result it cannot be touched, just experienced;

heterogeneity -each customer experiences a service in a different way; inseparability–

 10

it cannot be taken home like a product and has to be consumed at the place of the

destination; perishability-once the opportunity of selling a service at a certain point

has forgone, it cannot be resold at a later point in time; lack of ownership–a service

that cannot be owned, due to the previously mentioned characteristics.

Hospitality as a subsection of tourism “is a fundamental part of the domestic

and inbound leisure market. Consistent demand for tourism allows the hospitality

industry to forecast demand and identify opportunities to increase consumer spend,

creating a wave of secondary financial impacts” (Robinson, Lück and Smith, 2013).

Traditional media include broadcast channels including television, radio and

cinema, newspaper, magazine and public advertising such as billboards and sign

posts. The hospitality industry spends approximately 70% of its advertising

expenditure on Tv, radio and print, which has remained the largest media for its

advertisement (Mehta, 2017). Similarly, social media research has received increased

attention from tourism scholars of various disciplines towards understanding the

significances of tourists’ behavior, decision making and corporate communication

(Minazzi, 2015). Although in recent times, numerous firms in the tourism sector have

caught up with the social media movements; the industry is yet to completely exploit

the potential of this emerging data and communication resource especially toward the

potential of customer engagement (Noone et al., 2011)

 11

Social Media Flat forms in Tourism and Hospitality Industries

There are several dozens of social networks and their number keeps growing

by the day. The most popular ones are Facebook, Google, LinkedIn, Skype, Yelp,

Bing, Twitter and Trip Advisor, but there are scores of others. Managing hotel

reviews, both positive and negative is certainly a priority for managers. A discussion

on the positive and negative aspects is imperative to realize the extent of the impact of

social media. The reviewing sites can have relatively more impact than the enhanced

communications sites such as the Facebook or Twittter sites (Rowe, 2011)

The rapid growth of social media platforms has changed the dynamics of

consumer interaction, both with businesses and among themselves, with the

emergence of the phenomenon known as social media and its warp speed growth,

business strategies, tactics, and instruments for communicating with customers and

other stakeholders have been transformed significantly (Minazzi, 2015). Thus, the

way we do business and how businesses attract and retain consumers ultimately

changes. A study showed that social media channels were commonly used by U.S.

businesses to connect with their customers or prospects than Google (Anon, 2018).

Facebook is social media applications which were currently used by the

different establishment around the province of Batangas. It has the highest number of

users with 67 out of 77 respondents or 87 percent, followed by Youtube with 28.60

percent then Twitter with 19.50 percent and lastly the Blogs with 9.10 percent. The

researcher found out that the most formerly used social media application in selected

hospitality establishment in Batangas City is Facebook.

 12

It is an extremely cost effective social media flat form compared with other

promotional campaign and can be a successful way to increase customer reach. It was

found out that travelers who are referred to a hotel or tourism booking site by

Facebook were more likely to book travel than those who are referred via search

engines like Google. The use of Facebook helps to easily connect with their customers

and build a good relationship towards them. The researchers believed that using

Facebook as an advertising or promotional strategy helps one single firm to lessen

their expenses in promoting and showcasing the service or destination they offered.

(Buted, et. al, 2014)

Social media presents a golden opportunity for the hospitality industry to

make greater contact with its customers, with an ultimate goal of developing a

partnership for brand growth and development. Underlying that opportunity is the

twin dangers that hospitality operators will mishandle their social media connections

or that customer (and the media themselves) will move on, leaving the industry

behind. So, just as hotels and some restaurants have built their websites, they now

have to make sure that their site is optimized for search engines, have mobile apps,

and, more to the point, keep customers involved in a conversation about the operation.

Although many hotel chains have embraced mobile apps, Facebook, and other

channels, others are hardly represented at all in the social media firmament (Withiam

2011).People are motivated to use and engage in social media for several reasons

(Safko, 2010). Many studies have applied the theory of uses and gratifications to

explain the reasons for the use of social media .The uses and gratifications approach
 13

seems to be applicable for analyzing people’s use of social media as the approach is

particularly appropriate for examining the usage of new types of media such as the

Internet (Muntinga et al., 2010).

There are different ways social media can be used to benefit the bottom line of

an operation, whether it is food service, hotels, amusement parks, hospitals, or any

other affiliated hospitality business. Rowe (2005) has listed seven ways one should be

leveraging social media which include: (1) Solicit endorsements; (2) Maximize

revenue per seat (3) Bond with guests (4) Manage reputation (5) Reach out to new

customers (6) Recruit new staff; and Build a buzz (Payne &Frow, 2005). Considering

all the benefits that social media can provide, it has all the attributes that will be

helpful in marketing and management. This is particularly important for hospitality

and tourism field since they are people professions. Social media is an option for

hospitality industry since it provides opportunities to manage and present business

content and it helps in identifying core values that draw clients and customers to

business. Most companies would benefit from a cohesive strategic plan that will

integrate social media efforts with overall marketing effort. Engaged customers spend

more money and return back to business more often. It also helps in brand awareness

and building brand equity (Roberts, 2012).

Social media has the advantage of reaching global audience, even in remote corners of

the world; immediacy with no time lag; easy accessibility by those receiving the

communication as long as they can get their hands on a computer keyboard; twenty
 14

four hours, seven day operations thereby overcoming the time difference; and

ubiquitous versatility for interactive exchanges (Khan, 2012).

The complexity of the Internet and social media has created some issues with

the hospitality industry. Since the content of social media is largely consumer-based,

it can make it difficult to filter through all the information that is available for

consumers. Searching for information through the Internet has been greatly

influenced by large search engines that limit search results to only include the most

“popular” social media sites (Leung et.al, 2013).

Competitiveness in the tourist market

Globalization trends strongly affect tourism and result in the following major

effects: (1) a sudden increase in potential tourist demand for different destinations and

it must be emphasized that tourists looking for experience are not interested only in

the “nearby” destinations, but the world becomes a potential destination, (2)

competition, which has become very strong, with more destinations competing by

adapting their offer to the requirements of potential tourists, (3) SMEs have to fight

for survival in the market given the conquering power of global corporations, (4)

emphasis on innovation, specialization, and better quality of products and services, (5)

increased need for additional capital to finance the necessary investments for future

goals and achievements in order to remain competitive in the market, (6) problems for

developed destinations arising from relations with suppliers who are often not

heterogeneous and do not apply the quality standards. The reasons for connection and

concentration of entities lie in the necessity determined by competitive market

 15

conditions and challenging tourist demands. Specific integration combines the

interests of tourism entities into a common goal, strengthens the market approach,

enables easier product placement, and expands the range of products, which facilitates

the adjustment to high criteria of potential consumers, with possible cost reduction

and competitive prices.

Marketing and Promotion

Every organization works with certain objectives and these are to be achieved.

To achieve the pre-decided objectives a number of activities are to be performed. It is

not necessary that one all organizations would perform one type of activities.

Marketing is one of the important activities of an organization. The term marketing

concept holds that achieving organizational goals depends on knowing the needs and

wants of target markets and delivering the desired satisfactions. It proposes that in

order to satisfy its organizational objectives, an organization should anticipate the

needs and wants of consumers and satisfy these more effectively than competitors. It

is through marketing the products or services of the company are reaching to the

customers. The company gets the money back when the products are sold out in the

market. So the business cycle keeps on going further. It is required to coordinate the

marketing activities without activities also. It is necessary to work in close

coordination with production. Production alone is not going to serve the purpose.

Consumers’ Sentiment toward Marketing (CSM) is a factor consider by researchers to

measure how well consumers will perceive social media marketing. CSM is defined

as a concept which refers to the general feelings that consumers have for marketing
 16

and the marketplace (Lawson et al. 2001as cited by Mady 2011). An individual’s

perception of the overall marketplace plays a major role in whether or not they are

motivated to partake in consumption activities (Mady 2011). In order to create a

successful marketing campaign via social media, a consumer must be open to the

technology. Consumer technology readiness is defined as 4 “people’s propensity to

embrace and use new technologies for accomplishing goals in home and work”

(Parasuraman, 2000 as cited by Mady 2011, 195). Consumer technology readiness is

important for retailers to remember when marketing on social networks because if

their intended target market does not use social media, is not familiar with it, or

perceives it negatively, then their social media marketing will be unrewarding.

Analysis of technology readiness can determine if marketing via interactive

advertising would be a good fit for a retailer’s target market.

The retailers can increase awareness of their brand by being creative when

engaging customers on social media sites. “As more shoppers are using social media

(e.g., Twitter, Facebook, MySpace, and LinkedIn) and rely on them for marketing

shopping decisions, promotion through these media has become important” (Shankar

et al. 2011, 32). According to Curran et al. (2011), social media sites such as

Facebook are better than other advertising avenues because it stores information on all

its users thus ensuring marketing reaches a retailer’s specific target market. Social

media sites are a great stage for retailers to create an experience and retailers can use

information stored on social media sites to improve user experience with their brand.

Promotion is one of the Ps in the marketing mix. Promotions have own mix of

communications tools. All of these communications tools work better if they work
 17

together in harmony rather than in isolation. It includes all communications a

marketer used in the market for his products of services to create awareness, persuade

the customers to buy and retain in future also. The message is given to target group

regarding the features and benefits of the products or services to the target customers.

Without communication the features, benefits and schemes would not be known to the

customers and objectives of in launching of products or services and increasing sates

would not be completed. Sorescue et al. (2011), stress that a retailer must go beyond

the promotion aspect of social networking sites and find groundbreaking ways to use

them as a way to conduct conversations with consumers, instead of a one-way

communication network.

Social media refers the activities of different customers in the society,

gathering and sharing online information and knowledge. Marketers know that

theoretically, social media should be a powerful way to generate sustainable, positive

word-of-mouth marketing. It is very important that marketers select the right social

media platform, design the right message and engage the right users to spread that

message for implementing successful campaign (Travel and Tourism , World Travel

Tourism Council in 2011).Sinclair and Vogus (2011) determined that large companies

are regarding social media sites as strategic tools and some businesses are even hiring

employees to oversee their social media pages. “Consumers are no longer passive

receivers of marketing messages; instead, they are using Facebook, MySpace,

YouTube, and Twitter to voice their opinions-both positive and negative” (Sinclair

and Vogus 2011, 293). Consumers’ participation with a brand on social media
 18

reinforces the need for retailers to be active participants in social networking sites and

the virtual brand communities they create.

Relation Marketing (RM) is based on a constant dialogue within the whole

organization and creates new knowledge about the customers that needs to be spread

and learned beyond the borders of marketing (Gummesson, 2008;Grönroos,

2008;Minazzi, 2015).A business model is a system of codependent structures,

activities, and processes that serve as a firm’s organizing logic and create value for

customers, itself, and its partners. Since social media sites can be exploited for the

information it provides on consumer behavior with regards to their purchasing

intentions, research further suggests that businesses should incorporate social

networking sites into their business model or promotional mix. (Sorescu et al. 2011).

Much of the customer's power originates from the possibility of publishing

material and reviews about organizations. Recent research on the tourism and

hospitality industry tried to understand how customers' reviews and comments should

be managed and what effect this has on the interaction and engagement between

organizations and customers (Minazzi, 2015).Retailers are paying attention when it

comes to social media because it provides a key component that businesses have

struggled to collect for years: feedback (Gonzalez 2010). Feedback from consumers

has always been important when it comes to product, brand, and business model

development. Since, most studies have examined social media marketing in terms of

suggesting how to incorporate it within a business plan, and how to gauge consumers’

responses, it is important that further research address which strategies work.

Although some studies have started to touch upon influences and factors that affect
 19

consumers’ responses, previous research does not clearly state if social media

marketing is valuable to retailers’ in terms of return on investment. Sorescu et., al.

(2011) states “another way in which retailers can engage customers is by selling not

just products, but an entire experience that – while centered on the products, adds an

entirely new exciting layer to the retail setting.”