Impact of internet marketing on the profitability of the hospitality sector in the Eastern Cape Province, South Africa

The application of internet marketing techniques has been widespread in the hospitality sector worldwide, with many hotels crafting websites for marketing purposes. However, there is still a debate and speculation on the impact of internet marketing on business performance and profitability. Given the well-recognised value of internet marketing in the hospitality and tourism industry, this study sought to examine the impact of internet marketing on the profitability of the hospitality sector in South Africa and to establish factors which influence internet marketing usage. In order to achieve these objectives, a perceptual survey was conducted in graded hotels and lodges in the Eastern Cape province of South Africa. Multiple linear regression analysis and hierarchical regression analysis were used to determine the relationship between internet marketing and business profitability as well as the relationship between organisational and environmental factors and internet marketing usage. Based on the findings of this study, it is concluded that the use of internet marketing can positively influence business profitability. It is also concluded that internet marketing experience moderates the relationship between internet marketing usage and business profitability. The results also indicate that factors such as technological competence, managerial support, level of star grading and alliances significantly influence internet marketing usage. Thus, from the findings of this study, it was concluded that hotels and lodges can enhance their profitability through internet marketing usage

Application of the Technology Acceptance Model and the Technology–Organisation–Environment Model to examine social media marketing use in the South African tourism industry

Abstract: Background: In tourism globally there is a growing interest in social media marketing research. However, most previous research on social media marketing has focused on large tourism enterprises such as chain hotels, leaving out small tourism businesses such as travel agencies and tour operators. Objective: The aim of this research was to establish factors that influence attitude towards the use of social media marketing by travel agencies and tour operators in South Africa. Method: The study adopted a quantitative approach through the use of questionnaires. Data used in the analysis was collected from a total of 150 travel agencies and tour operators by means of a structured questionnaire. Multiple regression analysis and one‐way ANOVA were used for data analysis..

The influence of perceived justice on recovery satisfaction in the airline industry

Abstract: This study examines the influence of perceived justice on customer satisfaction with service recovery and on the future behavioural intentions of customers in the airline industry. The study uses an exploratory research design that is quantitative in nature. Questionnaires were used to collect data, and structural equation modelling was used for hypothesis testing. The study revealed that the three dimensions of perceived justice, namely interactional, distributive and procedural justice, influence satisfaction with service recovery in the South African airline industry. However, only interactional and distributive justice had a positive influence on future behavioural intention

Factors Influencing Intention to Use Social Media Sites for Holiday Destination Selection by the Young Generation

ArticleThe main objective of the study was to examine the factors that influence attitude towards usage of social media for holiday destination selection by the young generation, specifically university students and to explore the antecedents of behavioural intention to use social media sites. A structured questionnaire was used to gather data for this study, yielding a total of 350 responses suitable for analysis. Regression analysis was employed to test the hypotheses. The results revealed that social presence, perceived ease of use, perceived usefulness and perceived enjoyment all positively influence attitude towards use of social media sites. Revealed by the results also is that perceived behavioural control, subjective norm and attitude also positively influence behavioural intention. Social media developers should develop sites, which are attractive, fun and exciting so that the young generation can be attracted. Moreover, destination marketers must ensure that all the important information is posted on their social media sites pages. Studies have been conducted on the usage of social media sites for searching travel related products, but limited research has been done focusing specifically on the usage of these sites by the young generation, such as university students in the South African context

The Relationship between Employee Attributes and Customer Satisfaction: A Case of South African Call Centre Industry

Business survival, success and profitability are in the final instance customer or client dependent, therefore, every enterprise aims at maximising customer need-satisfaction in the endeavour to maximise profitability. With this in mind, the primary objective of this study is to establish the relationship between customer satisfaction and employee attributes as experienced by call centre customers. In addition, the study investigated how customers prioritise service quality dimensions as well as the mediating role played by customer satisfaction on the linkage between service quality and customer loyalty. To accomplish this, firstly, the direct relationship between the individual independent variables was tested and secondly, the indirect relationship between service quality and customer loyalty via customer satisfaction was tested. A combination of simple and multiple regression analysis was applied to test the hypothesised relationships. The results show that employee attributes and call centre key service factors significantly impact customer satisfaction and that call centre customers prioritise service quality dimensions differently. The mediating role of customer satisfaction on the linkage between service quality and customer loyalty was partially significant. DOI: 10.5901/mjss.2014.v5n23p39

Perceived Guest House brand value : the influence of web interactivity on brand image and brand awareness

Abstract: The purpose of the study was to examine the influence of web interactivity and brand experience on the perceived brand value of guest houses, and ultimately, affective commitment towards guest houses. A questionnaire was used to collect data from guest house customers, yielding a total of 300 responses suitable for analysis. Structural Equation Modelling was used to test the hypotheses. The results revealed that web interactive elements of social interactivity, active control and synchronicity positively influence brand awareness, however, both social interactivity and active control influence brand image. Results also confirmed that brand awareness influences brand image. Brand experience and brand image also had an influence on perceived brand value, with the latter influencing affective commitment. Guesthouses owners are recommended to have websites that allow two-way communication. Websites should also have embedded features such as effective navigation tools which allow for active control

The efficacy of social networks as marketing tools in the South African and Zimbabwean accommodation sector

PhD (Tourism Management), North-West University, Potchefstroom Campus, 2015The advert of social media has transformed the way in which tourism businesses operate especially in the marketing of tourism services. One major tourism sector which has been influenced by social media is the accommodation sub-sector. Hospitality businesses are now compelled to adopt social networks for marketing purposes to keep pace with changes in consumer behaviour. Previous research has indicated that, although social media is a new phenomenon in marketing, hospitality businesses such as accommodation facilities have embraced it for marketing purposes and the usage varies from one country to another. Prior studies have also shown that social networks are now considered a major source of information for tourists and influence their decision making process. Evidence from the literature shows that little work has been done to investigate the effectiveness of social networks in marketing accommodation services in Sub-Saharan Africa. Studies on adoption and usage of social networks in the accommodation sector in South Africa and Zimbabwe are limited. This study was done to address these knowledge gaps identified in literature. The aim of this research was to determine the effectiveness of social networks in the marketing of accommodation services in South Africa and Zimbabwe. To achieve this, two literature chapters provided an in-depth discussion on social media marketing as well as the influence of these networks on tourists‟ decision-making process. For the empirical survey, the study used an electronic questionnaire which was mailed to South African accommodation establishments. The same questionnaire was hand delivered by field workers in Zimbabwe from June 2013 to July 2014. A total of 129 and 134 were completed from South Africa and Zimbabwe respectively. Factor analysis was used to identify the dominant factors influencing usage of social networks and their effectiveness. The dominant factors were further tested using t-test, chi-square test and effect sizes calculation. The results from t-test and effect sizes computation revealed that there was a statistically significant difference in both the usage of social networks and the effectiveness of social networks in the two countries. Chi-square tests results further revealed that accommodation establishments in both countries were not extensively utilising social networks for marketing purposes and social networks were effective marketing tool in the accommodation sector. The major challenges highlighted by most accommodation establishments from both countries were, time constraints, lack knowledge on the use social networks for marketing and lack of commitment to sustain social media marketing efforts. Power cuts were also another challenge for the Zimbabwean accommodation establishments. This study did not only present theoretical contributions to accommodation establishments but practical recommendations were also made. Based on the results, this study made the following invaluable contributions: firstly a social media marketing framework was proposed. This framework contributes to the body of literature that could be used for future references in the field of social media marketing. The framework provides some necessary steps that can be followed when implementing social media marketing not only by accommodation establishments but with other similar businesses. Secondly, the study addresses the gap in literature by providing evidence from a developing country‟s perspective on the usage and effectiveness of social networks an area which has received little attention in hospitality research. Findings of this study can be used as a future reference by other researchers in the field of social media marketing on the African continent. Lastly, the study also shed light on how social networks can be utilised to influence tourists‟ decision-making process.Doctora

Does social capital really enhance community based ecotourism? A review of the literature

Community Based Ecotourism (CBET) is a unique type of tourism which was introduced as a way of alleviating the impact of tourism activities on the environment as well as striking a balance between local people and the natural environment. It is a responsible travel to natural areas that conserves the environment and sustains the well-being of local people implying that there is a necessary social dimension to ecotourism. The results from the review of literature suggest that social capital plays a critical role in the successful CBET ventures. However, most CBET ventures are failing due to a number of problems such as unequal distribution of economic benefits, poor or lack marketing knowledge and poor infrastructure. This paper suggests that, there is a need for government intervention to help CBET ventures for them to be successful. It is argued in the paper that social capital can be a route through which the accumulation of other forms of capital can be achieved and contribute to enhancing sustainable community based ecotourism

Social media in tourism: Establishing factors influencing attitudes towards the usage of social networking sites for trip organisation

Purpose: The main aim of this study was to determine the attitude towards the use of SNSs for trip organisation and its precursors. Problem investigated: Tourism organisations and destination policy makers need to understand factors that influence tourist use of SNSs for trip organisation in order for them to be able to effectively utilise SNSs. Methodology: The methodological approach followed was exploratory and quantitative in nature. Data were collected from a total of 340 respondents using a structured questionnaire. Structural equation modelling through the use of Partial Least Squares was for data analysis. Findings and implications: The results show that attitude towards the use of SNSs for trip organisation is affected by perceived benefits, subjective norm and perceived behavioural control, with perceived usefulness having the greatest influence. The implication is that managers of tourism organisations need to ensure that their sites are informative, easy to use and able to safeguard users’ online privacy if they are to attract more and loyal users to their sites. Value of the research: Very little research in the South African context exists with specific reference to how SNSs are being utilised for trip organisation. This article contributes by unravelling factors that influence the use of SNSs for trip organisation. Conclusion: Perceived usefulness measured by functional benefits and social benefits is the key factor that influences attitude towards the use of SNSs for trip organisation. It is the responsibility of destination marketers to provide all the necessary or valuable information on their SNS accounts, in order to encourage travellers to use SNS