E-WOM and Hotel Performance in the UAE: A Research Report

This report analyzes the impact of Electronic Word of Mouth (eWOM) on the hospitality industry, specifically focusing on hotels in the UAE. The study utilizes a questionnaire survey with 50 observations, employing correlation, regression, and ANOVA tests to assess the influence of various factors. Key findings indicate the importance of Knowledge Management (KM) for business success, with food quality and hotel service being primary drivers of eWOM. The research reveals that cost and atmosphere have no significant impact on word-of-mouth. Furthermore, eWOM variables, brand image, customer trust, and satisfaction strongly influence purchase intention. The report highlights the significant elasticity of eWOM, particularly for TripAdvisor reviews, and their correlation with hotel rankings. ANOVA tests reveal significant effects on responses related to knowledge and awareness, annual revenue, and organization culture, while employee numbers show no significant impact on market and industry responses. The analysis emphasizes the importance of online reviews and their role in shaping customer behavior and hotel performance in the UAE hospitality sector.

Running head: EWOM
EWOM
Name of the Student:
Name of the University:
Author note:

1
EWOM
The study is based on EWOM in the hospitality industries. The word Word of mouth
is a strategy used in marketing. It has proved to be successful for most of the organizations.
This requires people's interest to get involved in talking about it. Moreover it reflects the
customers’ experience. It has been seen that n the social media addicted world, nearly 62
percent of consumers consult the online review & information prior to any purchase or
service.
The survey has been conducted in the hotels of UAE. With the help of questionnaire
survey there are 50 observations has been collected for the survey. In the section of data
analysis correlation, regression and ANOVA test has been conducted. The result and
conclusion of the survey is based on P-value approach and at 5% significance level.
From the study it is clear that for any business to flourish knowledge management
(KM) is required and this follow the indicators of successful KM initiatives. Moreover the
primary aspect of the survey is quality of food and hotel service to the customer. Also Cost
and atmosphere have no impact for creating word of mouth. It is also important that the E-
WOM, E-WOM variables, brand image, customer trust and customer satisfaction have high
influence on the intention to buy the service. The elasticity of eWoM is extremely higher for
the reviews posted by the TripAdvisor.
The TripAdvisor has a relationship between the total reviews and comparative
ranking given to the hotel. Thus, the positive and negative results have direct impact on the
number of reviews on a hotel’s TripAdvisor rating.

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EWOM
BR FC IM IO O KA O
C
BR 1
FC 0.18347
8
1
IM 0.01028
1
-0.07522 1
IO 0.03116
5
-0.12031 0.48088048
3
1
O 0.06832
2
-0.02764 0.53547298
3
0.61387
7
1
K
A
0.06162
7
-0.08269 0.67508587 0.54120
7
0.63186 1
O
C
0.14028
1
0.07486
5
0.62466560
2
0.44858
4
0.67639
7
0.70441
8
1
Correlation Table
From the correlation table it has been seen that the correlation among all the variables
is positive where as some of strong and some of weak. It has been divided by its coefficient
value. If the coefficient of correlation is close to 1 then it is strong otherwise not.

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EWOM
Regression Analysis
The regression analysis shows the relationship between Business rules and FC, IM,
IO,O,KA and OC. It is multiple linear regression model where as business rules is dependent
variable and rest of others are independent variable. From the summary out of regression it is
clear that the there is a positive relation among the variables. Also the relationship is not
strong. The correlation coefficient of the model is and the coefficient of determination is
0.055.
The regression model becomes like that
Business rules= 3.0628+0.043*FC+(-0.047)*IM+0.015*IO+(-
0.0136*o+0.00866*KA+0.116377*OC
From the over all model it is clear that the test statistic (F)= 0.4211.
It has been seen the P-value is lesser than the alpha at 5% significance level. Hence
the model and relationship is not significant. Thus there is sufficient evidence at 5%
significance level to conclude that there is no relationship between the BR, FC, IM, IO,O, KA
and OC.

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EWOM
ANOVA test 1
The aim the ANOVA test is to determine that the management level hardly contains
any significant effect or not on the responses related to knowledge and awareness.
From the summary output it has been seen that the maximum average is 3.74 which
has been shown by KA 1 and the minimum is 3.48 which has also been shown by KA 5.
Similarly the maximum and minimum variability has been shown by KA5 and KA1 and the
value is 2.21 and 0.68.
Null hypothesis: There is a significant effect on their responses related to knowledge and
awareness.
Alternative hypothesis: There is no significant effect on their responses related to knowledge
and awareness.
From the ANOVA out put the test statistic becomes (F)= 0.495.
P-value = 0.779
Alpha = 0.05, at 5% significance level.
Since the P-value > alpha at 5% significance level. Thus the null hypothesis of the
ANOVA test is not significant. Therefore there is a sufficient evidence at 5% significance

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EWOM
level to conclude that there is a significant effect on their responses related to knowledge and
awareness.
ANOVA TEST 2
The aim of the ANOVA test is to determine the relationship and effect on the annual
revenue and responses related to finance and costs.
From the summary table it is clear that among all the 6 FC the highest average and
lowest variance has been shown by the FC 2 and the lowest average and highest variance has
been shown by FC 5.
Null hypothesis: The annual revenue does not contains significant effect on the responses
related to finance and costs.
Alternative hypothesis: The annual revenue contains significant effect on the responses
related to finance and costs.
From the ANOVA output the following results obtained.
Test statistic (F)= 3.435
P-value = 0.00494
Alpha = 0.05, at 5% significance level.

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EWOM
It has been seen that the P-value of the ANOVA test is lesser than the alpha at 5%
significance level. Thus the null hypothesis of the test is significant and at the same time the
alternative hypothesis is accepted. Therefore there is a sufficient evidence at 5% significance
level to conclude that the annual revenue contains significant effect on the responses related
to finance and costs.
ANOVA test 3
The aim of the ANOVA test is to determine the organization’s ownership hardly
contains any significant effect or not on the responses related to organization culture.
From the summary table it is clear that among all the QC the maximum average has
been shown in the QC 8 and the minimum is QC 3. In variability the maximum variability
has been shown by QC 1 and the minimum QC 9.
Null hypothesis: The organization’s ownership does not contains any significant effect on the
responses related to organization culture.
Alternative hypothesis: The organization’s ownership hardly contains any significant effect
on the responses related to organization culture.
From the ANOVA output the following results are obtained.
Test statistic (F) = 8.527

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EWOM
P-value = 0.0000
Alpha = 0.05, at 5% significance level.
It has been seen that the P-value of the ANOVA test is lesser than the alpha at 5%
significance level. Thus the null hypothesis of the test is significant and at the same time the
alternative hypothesis is accepted. Therefore there is a sufficient evidence at 5% significance
level to conclude that the organization’s ownership hardly contains any significant effect on
the responses related to organization culture.
ANOVA TEST 4
The aim of the ANOVA test is to determine the number of employees hardly have any
significant effect or not on the responses related to market and industry.
Among four market and industry the average and variability of among all the market
and industry the IM 4 has the maximum and IM1 has the minimum.
Null hypothesis: The number of employees hardly have any significant effect on the
responses related to market and industry.
Alternative hypothesis: The number of employees does not have any significant effect on the
responses related to market and industry.
From the ANOVA out put the test statistic becomes (F)= 0.401159
P-value = 0.7523

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EWOM
Alpha = 0.05, at 5% significance level.
Since the P-value > alpha at 5% significance level. Thus the null hypothesis of the
ANOVA test is not significant. Therefore there is a sufficient evidence at 5% significance
level to conclude that the number of employees hardly have any significant effect on the
responses related to market and industry.