Bolton MBA Dissertation: Airbnb, Social Media, Customer Satisfaction

This MBA dissertation analyzes the impact of social media on customer satisfaction, using Airbnb as a case study. The research explores the evolution from traditional marketing methods to social media's influence on customer relationships, particularly within the hospitality industry. The paper includes an introduction outlining the research objectives and background on Airbnb, followed by a literature review on customer satisfaction theories and social media marketing strategies. It details the research methodology, including primary quantitative techniques. The findings chapter presents descriptive and inferential statistics, correlation analyses, and regression analyses to test the hypothesis that social media significantly impacts customer satisfaction. The study concludes with recommendations for improving customer satisfaction through social media and discusses the limitations and future scope of the research, offering valuable insights for businesses seeking to enhance their marketing strategies and customer engagement.

Running head: AIRBNB
The impact of social media on customer satisfaction: The case of Airbnb
STUDENT NAME
Project submitted in part fulfilment of the Master of Business Administration
Bolton Business School
The University of Bolton – 31/12/2019

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Executive Summary
The paper is based on finding the influence of the social media marketing strategy on the
customer satisfaction. The case study of Airbnb has been selected for this. The study follows a
comprehensive format whereby the paper has been divided into various sections with each
section focusing on a different part of the chapter. The paper begins with an introduction which
sets down the objectives of the study and also provides a considerate background of the
enterprise which has been selected for the research. In consideration with this, the second chapter
is the Literature review chapter focuses on the different theories related to the Customer
satisfaction theories and related Social media marketing strategies. The study has also built a
conceptual framework with the help of which the study can be carried out. The Research
methodology chapter focuses on the various research methods which have been adopted for the
study. This research methodology has recommended that, the study will be using the Primary
Quantitative technique of research. In consideration with this, the fourth chapter thereby focuses
on the Findings, Results as well as the Discussion of the outcomes of the study and the survey.
The last chapter has concluded the study and certain recommendations have been provided with
respect to the same. It was found that the social media marketing strategy and presence of Airbnb
has a strong effect on the customer satisfaction.

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Table of Contents
Chapter 1: Introduction....................................................................................................................6
Overview......................................................................................................................................6
Background..................................................................................................................................6
About Airbnb...............................................................................................................................7
Problem statement.......................................................................................................................8
Research aim................................................................................................................................8
Research Objectives.....................................................................................................................8
Research Questions......................................................................................................................9
Hypothesis...................................................................................................................................9
Research rationale........................................................................................................................9
Structure of the Paper................................................................................................................10
Chapter 2: Literature review..........................................................................................................11
Introduction....................................................................................................................................11
Social media marketing.................................................................................................................12
Social media in the hospitality industry.........................................................................................13
Online reviews and Hotel services................................................................................................15
Consumer satisfaction....................................................................................................................17
Impact of social media marketing on consumer satisfaction.........................................................21
Conceptual Framework..................................................................................................................22

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Literature gap.................................................................................................................................22
Summary........................................................................................................................................23
Chapter 3: Methodology................................................................................................................25
Overview....................................................................................................................................25
Research Philosophy..................................................................................................................25
Research Approach....................................................................................................................26
Research Design........................................................................................................................26
Data collection procedure..........................................................................................................26
Data analysis..............................................................................................................................27
Research strategy.......................................................................................................................27
Sampling technique...................................................................................................................28
Ethical considerations................................................................................................................29
Conclusion.................................................................................................................................29
Chapter 4: Findings, Analysis and Discussion..............................................................................31
Overview....................................................................................................................................31
Descriptive Statistics.................................................................................................................31
Inferential Statistics...................................................................................................................41
Reliability and Validity..............................................................................................................41
Correlation.................................................................................................................................42
Correlation between aspects of the Dependent Variable- Customer Satisfaction.....................43

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Correlation between aspects of the Independent Variable- Social Media.................................44
Regression..................................................................................................................................45
Hypothesis testing......................................................................................................................48
Findings.....................................................................................................................................48
Discussion..................................................................................................................................49
Summary....................................................................................................................................51
Chapter 5: Conclusion and Recommendations..............................................................................51
Overview....................................................................................................................................51
Linking to Objectives................................................................................................................52
Limitations of the study.............................................................................................................53
Future scope...............................................................................................................................54
Recommendations......................................................................................................................54
References......................................................................................................................................58
List of Figures
Figure 1: Conceptual Framework..................................................................................................23
Figure 2..........................................................................................................................................33
Figure 3..........................................................................................................................................34
Figure 4..........................................................................................................................................36
Figure 5..........................................................................................................................................37
Figure 6..........................................................................................................................................38
Figure 7..........................................................................................................................................40
Figure 8..........................................................................................................................................42

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List of Tables
Table 1...........................................................................................................................................32
Table 2...........................................................................................................................................33
Table 3...........................................................................................................................................34
Table 4...........................................................................................................................................36
Table 5...........................................................................................................................................37
Table 6...........................................................................................................................................39
Table 7...........................................................................................................................................40
Table 8...........................................................................................................................................42
Table 9...........................................................................................................................................42
Table 10.........................................................................................................................................44
Table 11.........................................................................................................................................45
Table 12.........................................................................................................................................46
Table 13.........................................................................................................................................47
Table 14.........................................................................................................................................48

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Chapter 1: Introduction
Overview
The social media platforms have become a popular choice for the different enterprises
who want to carry out their operations in a manner such that they will be able to improve the
sales of the firm (Aijing, Terui and Kannan 2016). Additionally, they will also be able to satisfy
the different customers by meeting with their queries and other related needs. Customer
satisfaction can be described as how the various customers in an organization will be able to
fulfill all their requirements and additionally will also be able to see to it that they can engage in
a fruitful relationship with the organization. Previously, the various methods of service delivery,
the pricing, the location of the firm and other such parameters were considered to be of utmost
importance and had a significant role to play in determining the manner in which a customer
needs could be met with but currently, that spot has been taken up by the social media capability
of the firm (Alalwan et al. 2017). These days the social media is being categorized as the best
medium of communication with the customers and the method through which the firm will be
able to put up promotional plans and other deals which would thereby satisfy these customers to
a greater extent. Hence, in this study, the case of Airbnb is being adopted to assess how social
media generally influences customer satisfaction.
Background
The social media is a computer-mediated technology that tends to facilitate the overall
creation as well as the sharing of ideas, career interests and other expression formats that take
place via the networks and related virtual communities. Additionally, certain features of social
media make it unique. This comprises of the fact that it is a web 2.0 based Internet-based
applications, focusing mostly on the user-generated content and tends to rely on how the users
tend to create the service-specific profile as well as identities for the website or the applications.
This then focuses on the connectivity and communication aims of the users with those of the
other groups which are present.

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The various users generally tend to interact using these platforms. Examples of these
comprise of the Instagram, Facebook and Twitter. Additionally, the different enterprises have
been using these means to target the different potential customers and to interact with them
effectively to certify that they will be able to meet with their needs and engage in user interaction
with them. An excellent social media presence of any company is often used as a medium, with
the help of which an enterprise will be necessarily able to satisfy the customers (Ali and Raza
2017).
Customer satisfaction can be mentioned to be a degree or a metric that is usually made
use of to determine whether a particular customer is substantially satisfied with a product or a
service. It needs to be the aim of the firm to ensure that the organization will be able to satisfy
the different customers who are present. The knowledge about customer satisfaction helps in
understanding the extent to which a particular customer is happy with the different brand
offerings and the kind of feelings which the customer generally possesses about the organization
and its performance (Amin 2016). It is essential that the various enterprises can meet with the
needs of the different customers and that they are necessarily able to engage in an interaction
with them, which will ensure organizational success. Hence, concerning this, the study will focus
on the capability of Airbnb and how its presence on social media will influence the customer
satisfaction to a great extent.
About Airbnb
Airbnb was found in the year 2008, and it has aimed to create a society where the
different people can engage in an excellent travel opportunity that is authentic, local and diverse.
It also needs to be inclusive as well as sustainable in nature. The organization makes use of
various technical aspects with the help of which it can empower the different individuals around
the globe and allow them to monetize as well as unlock their spaces. Additionally, the
accommodation of Airbnb will also provide access to the varied customers who will then be
exposed to stay in more than 100000 cities as present in 191 countries around the globe. It is
with this experience that the firm is essentially able to offer unprecedented access to local
communities and thereby improve the travel experience. The organization functions on a people
to people platform based on which it comprises various hosts, guests, employees and the

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different communities in which the different individuals tend to operate in and are being able to
carry out their operations. Therefore, this company is being used to examine the services of the
firm concerning the different customer satisfaction aspects.
Problem statement
Although it has been studied that the social media has a crucial role to play in the
different business enterprises and they are often used as a medium to see to it that the firm is
being able to ace its game and will be able to engage in the overall success. The theme of this
study will be primarily based on the fact that social media has a role to play in customer
satisfaction as well. The business model of Airbnb can be undertaken to be an aspect whereby
the social media has been able to play a very critical role in determining the manner in which the
firm can satisfy the customers and hence, the focus of this study lies on seeing to it that the
examples of the Airbnb can be taken to determine how social media is being used to satisfy the
customer needs and how customer satisfaction can be achieved.
Research aim
The main aim of the research can be taken to be to find the impact of social media on
overall customer satisfaction. This assists in determining that the study will adopt an analysis of
how social media can be used as an effective means to satisfy the different customers present.
This can also be used to assess how the use of social media can be enhanced to improve the
satisfaction level of the various customers.
Research Objectives
The objectives which have been set out for the research can be identified as follows:
 To understand the concept of customer satisfaction and the idea of social media as a
means for communication with different customers.
 To analyze how Airbnb has been using social media to increase customer satisfaction.
 To identify the association between social media and customer satisfaction
 To provide recommendations based on which, the customer satisfaction of the
organizations can be improved using the different means of social media.

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Research Questions
The different research questions which this paper will be answering are as follows:
 What is the concept of customer satisfaction and the idea of social media as a means for
communication with different customers?
 How has Airbnb has been using social media to increase customer satisfaction?
 What is the association between social media and customer satisfaction?
 What recommendations can be given to the firms based on which, the customer
satisfaction of the organizations can be improved using the different means of social
media?
Hypothesis
The hypothesis can be referred to as testing statements, which are generally examined to
prove a particular set of hypotheses. The different hypothesis which has been used for the study
can be taken as follows:
Independent variable: Social media
Dependent variable: Customer satisfaction
Alternate Hypothesis: Social media has a strong influence on customer satisfaction.
Null hypothesis: Social media does not have any influence on customer satisfaction.
The Regression analysis will be made use of to determine the impact of the Independent
variable on the dependent variable.
Research rationale
The primary reason why this research is being carried out can be primarily described to
be the fact that social media has become the key to success for the various enterprises (Anderson
et al. 2020). The organizations often make use of social media as a medium to communicate with
the different customers and use it to determine how the different customers provide their
feedback to the firms and whether the firms are being able to utilize this feedback for their

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overall welfare. Hence, in association with this, the reason why this research is being carried out
is to examine how the organization is making use of social media to attract the customers and,
more importantly, satisfy them. The study will not only identify the relationship which takes
between the independent and the dependent variable but will mainly mention how social media
can be considered as a means to perform well and gain a competitive advantage in the industry.
Structure of the Paper
The paper will be following g the given study:
Chapter 1: The Introduction chapter will throw light on the background of the study, the
research rationale, the problem statement and other sections that would contribute to
understanding how Airbnb has been making use of the various tools to attract a broader
audience.
Chapter 2: The Review of Literature will throw light on how the different theoretical concepts
and frameworks support this view and additionally try to find the structure of the theory linking
customer satisfaction with social media.
Chapter 3: The section throws light on the research methods being used for the study and will
ensure that the firm will be able to find and derive the relationship between the different
variables.
Chapter 4: The Data results, findings and the discussion chapter will necessarily focus on how
the outcomes of the results will be presented and will also throw light on the statistical analysis
conducted on the data.
Chapter 5: The last section on the Recommendations and Concussions chapter will be
discussing the recommendation s which can be provided to the study to gain assistance
concerning how social media can be used to improve the customer satisfaction.

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Chapter 2: Literature review
Introduction
There have been significant changes in the way people in the global community
communicate with each other and social media has been the major driving factor to it. However,
the concept of social networking is not new, but it has evolved significantly with the
advancement of technology. It implies that innovation and technological prowess have improved
the quality of networking in the modern era. Armstrong, Delia and Giardina (2016), states that it
is important to understand the concept of social networking at first to understand the concept of
social media marketing.
Social media can be stated as a device for electronic communication which is used to
share information through, audio, video, picture and texts. Social networking has come a long in
the past two centuries where it initially started with telegram and now through continuous
development, sharing of links, videos, messages, comments and links have been possible. Ashley
and Tuten (2015) stated that social media is the social networking of the 21st century where web
has been used as the medium for transmission. The accessibility and reach of social media are
relatively higher which makes it an effective tool for business where customer engagement can
be enhanced. It implies that a brand name can be generated by prompt communication and social
presence is the key to improving the quality of communication with the consumers.
It is one of the most inexpensive tools that allows two communication between the
consumers and the businesses. It provides highest degree of freedom to the consumers which has
been not been experienced any other medium. Consumers have been able to freely express and
react their views on the public domain which makes more than tool for marketing. Bowen, and
Chen McCain (2015) states that social media marketing has enabled interaction between
companies and consumers which provides the marketers with the opportunity to address the
concerns and issues raised by the customers . It is one of the most way of developing a brand.
The present global economy shows that majority of the hotels in the global marketing are
shifting towards social media from traditional marketing in order to communicate with the
consumers. It also helps them to develop brands and higher return on investment from their