Business Research Method

7HO732

MA
International Business in Entrepreneurship
Title: Navigating Loyalty in the Digital Era: Social
Media Engagement in Tourism and Hospitality
Industry

Student Number: 100724957

Word Count: 2255

Submitted on: 18 December 2023

Submitted to: Dr. Evelina Gillard

Table of Contents

1. Abstract ...................................................................................................................... 1

2. Aim of the Study ........................................................................................................ 1

3. Research Objectives ................................................................................................... 2

4. Research Field description ......................................................................................... 2

5. Literature Review....................................................................................................... 2

5.1 Customer Loyalty ................................................................................................. 2

5.2 Social Media Engagement .................................................................................... 4

6. Framework of Study .................................................................................................. 5

7. Justification of the Study ........................................................................................... 6

8. Methodology .............................................................................................................. 6

9.Finding ........................................................................................................................ 8

10. Recommendation ..................................................................................................... 9

1. Abstract

The purpose of this study is to identify and examine the variables or characteristics that

have received the greatest attention in the literature in relation to customer loyalty in

the hotel business, specifically social media involvement. This is done in order to

develop a firm and thorough understanding of these aspects. This lays the groundwork

for more in-depth and extensive investigation. Furthermore, businesses that understand

the most influential aspects can develop customer loyalty programs that are more

contextual and relevant. This can help increase the success of strategy implementation

and customer loyalty. This research will be conducted on 50 respondents. In addition,

as part of the research methodology, by comparing and contrasting various approaches,

this research seeks to achieve a deeper and more comprehensive understanding of the

aspects related to this topic.

Keywords: Customer Loyalty, Social media engagement

2. Aim of the Study

The primary goal of this study is to analyze and comprehend the impact of Social Media

Engagement on customer loyalty in Hospitality Industry. This study intends to provide

in-depth insight into the relationship between social media activity and customer loyalty

by evaluating consumer interactions on social media platforms and their impact on

loyalty levels.

Research Question:

1. What factors are most important in the building of customer loyalty through social

media?

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2. How do different types of social media involvement (likes, comments, and shares)

affect customer loyalty?

3. Research Objectives

Based on the research questions above this research is to find out the answer to the

questions. Therefore, the research purposes are:

1. To Evaluate the Level of Customer Loyalty

2. To Identify Factors Influencing Customer Loyalty

3.To Provide Marketing Strategy Recommendations

4. Research Field description

This research field description situates this study within the larger framework

of consumer behavior in the hospitality and tourism industry, emphasizing the necessity

of comprehending the connection between social media involvement and customer

loyalty in an ever-changing digital landscape. In this research, customer loyalty is the

variable that connected with social media engagement in tourism and hospitality

industry. The major goal is to understand how consumer interactions on social media

platforms influence and shape the loyalty of people who use travel and accommodation

services and products

5. Literature Review

5.1 Customer Loyalty

Customer loyalty has been identified as a significant aspect in gaining a competitive

advantage over other businesses in a highly competitive and dynamic economy.

Customer loyalty is defined by Oliver (1999, cited in Leninkumar, 2017 p.451) as a

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buyer's promise to purchase specific products, services, and brands of an organization

over a consistent period of time, regardless of competitors' new products and

innovations, and these customers are not compelled to switch. Daffy (2020, p.8)

discussed customer loyalty in banking terms to describe client loyalty. He defined client

loyalty as "...an account, similar to a bank account, but containing goodwill (emotional

or relational assets) rather than cash (financial assets)." This loyalty account could be

in balance, debit, or credit at any time. If the account is in credit, a specific condition

may cause a reaction. However, if the account is in debit, the same scenario may elicit

a completely opposite reaction." In other words, consumer loyalty might rise or

decrease based on previous customer experiences. Daffy also noted that when one or

both parties desire to establish a relationship that extends beyond one or more

transactions, a loyalty account is established. In addition, customer loyalty is defined

by Zeithaml et al. (1996, cited in Paparoidamis, 2019, p.60) as the intention to dedicate

a larger share of one's wallet to a single service provider. Furthermore, customers make

repeat purchases and spread favorable word of mouth.

Customer loyalty has two dimensions: behavioral and attitudinal. Attitudinal

dimensions include criteria such as purchasing again imagination, resistance to

purchasing from other firms, and the tendency to promote, persist, and encourage

people to use a company's particular service or good.The behavioral dimension refers

to client repurchase behavior and demonstrates a preference for services or products

(Parasuraman, et al 1991;Dick & Basu, 1994 cited in Rasheed &Abadi, 2002, p.300).

Customer loyalty can be measure by using a metrics such as Net Promotion score.

Single-question customer metrics, such as the Net Promoter Score, are useful

instruments that are frequently used in practice to assess customer loyalty (Zaki et al,

2016, p.20). There is one theory that has a strong relationship with consumer loyalty,

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which is customer satisfaction. According to Leinkumar (2017, p. 459), customer

loyalty has been identified as an important issue that specialists all over the world are

researching. Customer satisfaction, according to his research, is a primary driver of

customer loyalty.

5.2 Social Media Engagement

In the early 2000s, a new communication medium was launched, which became

popularly recognized as social media. In fact, the vast number of people who use social

media programs such as Facebook is one of the most important drivers for organizations

to adopt social media (Sharif et al, 2015, cited in Almohaimmeed, 2019, p.146). Social

media engagement theory emphasizes how technology serves as a crucial foundation

for social interactions among worldwide and temporally scattered users. Social media

platforms enable tourist and hospitality businesses to communicate with potential

customers online and boost their online presence (Leung, et al 2013, cited in Asperen

et al, 2017 p.78). Furthermore, tourism social media platforms influence travel

decisions and improve value co-creation among customers and marketers (Dewnarain

et al, 2019, referenced in Li et al, 2020, p. 185). Understanding whether customers who

connect with tourism social media companies are likely to have a high level of brand

loyalty is therefore critical. It cannot be denied that the rise of social media is largely

due to the evolution of technology, which provides unique user experiences that allow

users to connect in previously inconceivable ways. if experience is defined as a noun,

it refers to content that comes from direct engagement. On social networks, two

essential components form the user experience: experience received from social

interactions and experience gained from technical features. Prahalad and Ramaswamy

(2004 cited in Gangi, 2016, p.3) describe social interaction as communication between

users via social media. According to Solem (2016, cited in Ajina, 2019, p.89), customer

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engagement leads to the production of value through active participation in the

marketing communication process. This value then leads to higher levels of satisfaction

obtained from the brand, which instills a sense of loyalty in the minds of the customers.

Furthermore, he finds that consumers who use social media to take part in the

organization's brand engagement activities are more satisfied. In fact, in the near term,

there is a strong positive association between brand loyalty and customer participation.

Furthermore, organizations in the service sector may achieve significant customer

loyalty by engaging in consumer engagement initiatives via social media platforms.

6. Framework of Study

The framework is built on customer engagement and customer loyalty concepts. These

theories support the notion that customers' active social media interactions can change

their opinions of brands and, as a result, increase their level of loyalty. This conceptual

framework is supported by literature on the importance of customer involvement in the

social media era, as well as its impact on customer loyalty. Based on the previous

research on related concepts, it can be anticipated that such positive relationships exist,

that is social media engagement positively and significantly influences customer

loyalty. Moreover, a thorough grasp of the relationship between social media

engagement, and customer loyalty in the tourist and hospitality industries, providing

more insight into what factors can influence customer loyalty related to social media

engagement.

This conceptual framework acts as a guide for arranging the study and testing the

hypothesized linkages, allowing researchers to analyze the complex dynamics of

consumer loyalty and social media engagement in the defined environment in a

systematic manner.

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7. Justification of the Study

Conducting the research on social media engagement and customer loyalty in the tourist

and hospitality industries makes sense for some reasons. (1) Industry digital

transformation. The tourism and hospitality industries are undergoing major digital

transformations. Social media platforms are widely used by travelers to explore

destinations, lodgings, and experiences. Understanding how social media involvement

affects customer loyalty is critical for organizations attempting to adapt to the digital

transition. According to Farhat et al (2020 cited in Shah et al, 2021, p.1) that Individuals'

quick adaptation and transformation into online communities motivate suppliers to set

the stage for customer engagement and retention in order to increase their loyalty. (2)

Improved Customer Experience. Social media participation can help to create a more

seamless and improved consumer experience. Businesses may utilize social media to

engage customers at all stages, from pre-trip planning to post-trip sharing.

Understanding the effect of these interactions on customer loyalty is critical for

providing excellent experiences.

8. Methodology

A. Research Strategy – Survey and Sampling

Survey

The research strategy that will be used is a survey where the aim of conducting a survey

is to collect data that will be mapped comprehensively and in detail (Denscombe, 2010,

p.11). This survey was carried out to obtain factual information related to customers

who frequently use social media. Because the study you want to do is related to

customer loyalty, a survey is the right strategy for collecting data. The type of survey

that will be used is Internet surveys which are a fast and cheap alternative.

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Sampling

Population: Customer Segment Active on Social Media

In this research, the population in focus is the customer segment who actively uses

social media in the tourism and hospitality sectors. This population includes individuals

or groups of customers who regularly interact with social media platforms to search for,

share, or provide reviews about their experiences in travel or accommodation stays.

Here are some characteristic of the population chosen:

1. Individuals that utilize social media sites such as Instagram, Facebook, Twitter,

TripAdvisor, and others to research tourist locations, hotels, and travel experiences.

2. Customers that actively submit feedback, reviews, or suggestions about their location

or lodging via social media.

3. Social media users participate in online debates, share travel ideas, and share their

trip experiences with virtual communities.

This population is selected because they have the ability to provide useful information

into how social media interactions influence consumer loyalty in the tourist and

hospitality industries. They also represent the current consumer tendency to proactively

employing social media sites as their primary information source.

Sample: 50 Customers

In this research, participants consisted of 50 customers. Based on the number of

samples, the type of sample that will be used is a representative sample. And the

approach used is probability sampling where researchers take samples randomly.

B. Research Method – Questionnaire

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Researchers use the questionnaire method for several reasons, such as:

- The number of respondents is large and located in various places

- The questions you want to ask are short and non-controversial

In detail, the questionnaire used is the Internet Questionnaire which is simple and easy

to use.

C. Research Analysis – Quantitative Data

The research analysis used is quantitative data because as it can measure the

relationship and effect of customer loyalty and social media engagement quantitatively.

In other words, quantitative analysis allows researchers to measure the relationship and

influence between two aspects with numbers and statistics that can be interpreted

objectively. Second, it can help hypothesis testing. In the context of this research,

quantitative analysis allows for the formation and testing of hypotheses more directly.

For example, is there a significant relationship between the frequency of interaction on

social media and the level of customer loyalty?

9.Finding

It is expected that there will be a beneficial connection between social media

involvement and customer loyalty. Customers who actively engage with a brand on

social media are more likely to display loyalty behaviors such as repeat commerce and

positive word-of-mouth. Secondly, researchers may be able to find specific social

media engagement measures that closely correspond with client loyalty. Metrics such

as the frequency of interactions, the quality of content shared, and the level of

community engagement could be included. Thirdly, The anticipated findings may

indicate that user-generated information, such as customer reviews, images, and

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recommendations published on social media, has a significant impact on the creation

of consumer loyalty. Positive user-generated material may contribute to increased

loyalty. Lastly, based on the findings, researchers may provide advice and insights for

firms in the tourist and hospitality industries to improve their social media strategy in

order to establish and keep loyal customers.

10. Recommendation

Researchers and practitioners can explore many recommendations to improve tactics

and practices based on the predicted findings or general insights gathered from the study

on customer loyalty and social media involvement in the tourist and hospitality industry.

Here are some possible suggestions or recommendations for the future research:

1. Encourage community participation on social media by actively participating in

conversations, responding to customer requests, and addressing issues. Creating a sense

of community can help to boost consumer loyalty.

2. Implement a proactive approach to monitoring and responding to both positive and

negative online evaluations. Responses that are timely and insightful can indicate a

commitment to client satisfaction and affect impressions.

3. Use social media customer data to personalize interactions and offerings.

Personalization has the potential to improve the customer experience and build the

emotional bond between the company and the customer.

4. Create and implement loyalty programs that explicitly reward customers for their

social media participation, such as posting travel company material, taking part in

challenges, or referring friends. This might result in a mutually beneficial relationship

between the company and its devoted customers.

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References

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Paparoidamis, N.G., Tran H.T.T., Leonidou C N. (2019) Building customer loyalty in
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Rasheed, F.A., Abadi, M. F. (2014) Impact of service quality, trust and perceived value
on customer loyalty in Malaysia services industries, Procedia - Social and Behavioral
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Zaki, M., Kandeil, D., Neely, A., & McColl-Kennedy, J. R. (2016). The fallacy of the
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Gangi, P. M., & Wasko, M. M. (2016). Social media engagement theory: exploring the
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Leninkumar, V. (2017) The relationship between customer satisfaction and customer

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Asperene, M.V., Rooija & Dijkmans, C. (2018) Engagement-based loyalty: the effects
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