How Does Social Media Affect Guest Behaviour in the Hotel Industry - Literature review Example

Psychological ownership theory provides the rationale for feedback.

The theory explores the motivation to share one’s experience at a hotel. Social exchange theory discusses the cost and benefits analysis that ensues when one is deciding on whether to take part in an exchange on social media or not. The theory is summarized in an equation. Social penetration theory discusses the process of bond formation in a relationship and how this process affects a person’s interactions on social media. Social media engagement theory unpacks some factors that dictate the usage of online communication tools.

The concept is modeled to show the relationship between the various factors. 2.3 Overview The contemporary industrial revolution is driven by the Internet of Things and big data. The sharing economy is certainly an important concept of modern economies whereby most companies are now subcontracting and outsourcing ideas and services from the outside world and the internet has been very instrumental in this cause. In addition, the proliferation of the internet in almost every facet of modern society has dramatically transformed how human beings relate to one another (Qualman, 2010).

Social media networks have driven this narrative to a whole new level. The world has become a borderless realm and social interactions have shattered the geographical barriers. Social media has revolutionized business processes, particularly marketing. Today, more than ever, organizations are leveraging the brand loyalty exhibited on social media networks to craft prolific marketing strategies that will yield a formidable competitive edge in the long term. According to Pitta (2012), the rise of the millennial generation is a great opportunity for modern companies, particularly those in the entertainment, technology, fashion, and travel industries.

The Millennials are adventurous by default. They are risk-takers who are not afraid of trying out new experiences and methods. Indeed, the Millennials are credited with many modern technological innovations. In addition, they prefer Internet communication to other channels of communication. These are important attributes of a generation that is on the rise- one that is keen on maintaining a consistent internet presence for social connectivity. In the article, Understanding Social Media and Social Behaviour Change, the author proposes that since the social media community has a sense of belonging that keeps the community glued together, it is then possible to influence the behavior of the community in a certain way.

For example, the success of Nike’s marketing campaign ‘Better for it’ in 2015 was partly attributed to a relevant message of undoing gender in sports and parties by the social media community. The social media community was very enthusiastic about the message. The campaign was widely talked about on the internet creating a phenomenal buzz on all the social media networks. Not only did this traffic generate incredible sales in women’s sports regalia, but it also changed society’s perception of the role of women in sports.

According to Guineken (2013), a change in perception manifests in a change in human behavior.

2.4 Theoretical Perspective In the past, the media has been used to convey messages. However, in the modern setting the various media networks, particularly the social media have been used successfully to change conversations. Psychologists maintain that a change in conversation emanates from a shift in one’s views about a given subject. Essentially the change of view is fodder for a changed behaviour (Qualman, 2010). Sharing of information and exchange of views in the form of internet conversations has great potential to impact the behaviour of an individual in one way or the other.

In addition, the speed at which the exchange of relevant knowledge is taking place is blinding. For example, it takes only a tap on the ‘share’ button of the Facebook platform to convey a message posted on one’s timeline. Furthermore, the capacity to hold real-time conversations at any time of the day in a social group presents a great possibility of influencing the behaviour of an individual. 2.4.1 Psychological ownership theory and perceived control (To understand why people take to social media to express their experiences) The role of social media is the hotel industry is critical because of the nature of trade.

The products involved are intangible. They are also experiential in nature. In addition, there are limited or no technological obstacles for guests to contribute to the online conversations (Leung et al., 2013). Virtually anyone who can access the internet can blog, post, tweet, like, share, retweet and review a comment. For this reason, there is a dramatic surge in the volume of content on the social media. The majority of the mass media platforms have one-way conversations. However, social media present two-way interaction between consumers (Pan and Crotts, 2012).

Previously, most consumers premised their purchase decisions on the word-of-mouth opinions of family members, friends, and neighbours. In the modern setting, social media has become the digital word-of-mouth whereby many consumers depend on the online conversations to make decisions, particularly regarding product purchases. In this regard, the reviews and comments of visitors are pegged on individual experiences and this makes them quite dependable (Chan and Guillet, 2011). In this regard, social media is an integral component of the hotel industry.

The psychological ownership theory explains why guests are willing to provide feedback by word of mouth. For example, some guests develop feelings of association with the hotels they have invested confidence and loyalty in. For such guests, a sense of belonging by the language they use is noticeable while reviewing their experience. Words such as ‘my’ and ‘mine’ are typical in such reviews. Often the assumption made by the industry players is that since the guests are loyal to their favourite hotel they will pass on positive feedback to their social group and forward the negative feedback to the hotel management (Pan and Crotts, 2012).

However, in instances where the loyalty is lacking, the intention of writing a positive or negative feedback could be a determination to affect the business of the hotel indirectly by engaging with the customers who may want to visit the hotel in the coming times. In making a positive review on travel and/or hotel blogs, the motive of the loyal customer is an effort to reward the particular hotel for a good experience. According to Ayeh et al. (2012), it is a way of appreciating the hotel management for a fulfilling experience at the hotel.

On the other hand, the satisfaction of the non-loyal clients is contingent on the desire to help other potential customers. Often the advice is meant to impart a precautionary position regarding the particular hotel. According to Munar and Jacobsen (2014), this inherent desire of a consumer to control other consumers gives a feeling of happiness and gratification. This theory should challenge hotels to emphasize on client loyalty and feedback from guests whereby they will drive the positive feedback externally while preserving the negative feedback within the confines of the organization (Pan and Crotts, 2012).