Impact of Social Media and UGC on Luxury Hotel Buying Behavior

This report investigates the impact of social media and user-generated content (UGC) on customer buying behavior within the luxury hotel industry, using Premier Inn as a case study. The report includes an introduction outlining the research questions, aims, and objectives, followed by a literature review exploring the benefits of social media for luxury hotels, the effects of social media on customer buying behavior, and approaches luxury hotels can use to increase customer engagement. The methodology section details the research philosophy, approach, strategy, and choice, as well as the procedures, techniques, and research instruments. It also covers data sources, research design, sampling, ethics, limitations, and reliability/validity considerations. The report concludes with a discussion of data analysis techniques, expected outcomes, and a proposed timeframe. The research aims to provide insights into how luxury hotels can leverage social media to enhance their marketing efforts and drive customer purchases.

Marketing Research

Table of Contents
Title..................................................................................................................................................1
Chapter 1: Introduction ...................................................................................................................1
Background of the study ............................................................................................................1
Research Questions ....................................................................................................................2
Research aim and objectives ......................................................................................................2
Rationale of the study..................................................................................................................3
Literature Review – .........................................................................................................................4
Benefits get by luxury Hotel companies from social media.......................................................4
Effects of social media on customer buying behaviour in the luxury Hotel industry. ...............5
Approaches of social media which luxury Hotel industry can use to increase buying behavior
of customers................................................................................................................................5
Proposed Methodology ...................................................................................................................7
Research Philosophy: .................................................................................................................7
Research Approach: ...................................................................................................................7
Research Strategy: ......................................................................................................................8
Research Choice: ........................................................................................................................8
Procedures, Techniques and research instruments: ....................................................................8
Sources of data: ..........................................................................................................................8
Research design: .........................................................................................................................9
Research Sampling: ....................................................................................................................9
Research Ethics: .........................................................................................................................9
Research Limitations:..................................................................................................................9
Research reliability and validity: .............................................................................................10
Data Analysis Techniques and Expected Outcomes: ...............................................................10
Time frame –..................................................................................................................................11
Conclusion –..................................................................................................................................14
References......................................................................................................................................15

Title
Exploring relationship between social media and user-generated content on buying
behaviour in the Luxury Hotel Industry.
Chapter 1: Introduction
Social media refers as an effective way of communication while making better use of
electronic medium to share data in more quick, ideal and personal basis. People and group of
people primarily use social media in order to have anywhere, anytime interaction by decrease the
distance issue (Abed, Dwivedi and Williams, 2015). The phenomena of social media is also
being used by the organisations in order to enhance their business operations and attract large
number of customers. For this research project, Premier Inn is a chosen British Luxury hotel
chain. It operates hotels in a different locations including suburbs, airports and city centres
competing with other hotels like Ibis and Travelodge. It was founded in 1987 by Whitbread and
headquartered in United Kingdom, United Arab Emirates, Republic of Ireland etc. This report
based on different chapters including introduction, literature review, methodology etc. These are
main chapters that support reader in identification of information included in each chapters.
Under introduction chapters, research aim, objectives, questions, rationale and many sub
activities included which support reader in determination of main purpose of conducting this
report. Literature review is another activity that support reader to identify number of secondary
sources and their significance in collection of information about the study. Proposed
methodology is another main activity that support reader to analysis useful research methods.
Background of the study
Social media is a virtual community that connect people around the world via different
websites such as Facebook, YouTube, MySpace, Twitter and Friendster. In 2010, Instagram was
introduced as a main medium of social media. Since then, many luxury hotel industry have
started to doing their businesses on Instagram (Alalwan and et. al., 2017). As businesses see this
new social media as an effective or friendlier channel and more easier to monitor. Many users
would also prefer to see from Instagram as well due to straightforward interface, less cluttered
page and easier to read feedbacks from other users.
User Generated Content is outlined as any kind of content that has been developed and
put out there by non-paying contributors or, following a better term, fans. It can introduce to
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pictures, tweets, blog posts, videos, testimonials and everything in betwixt and is the act of users
upgrade a brand rather than the brand itself.
Feedbacks is also known as user-generated content that mainly happens when previous
users share their experiences over the internet, which allows others including the potential users
to read (Alberghini, Cricelli and Grimaldi, 2014). User-generated content means digital content
developed, uploaded as well as communicated publicly over the internet by consumers via
pictures, discussion boards, videos, blog posts, comments, tweets, product or service reviews
etc. User-generated content can initiate a conversation or communication among unpaid
contributors via famous social platforms such as Facebook, Instagram, Twitter, Pinterest, and so
many other social networks. Therefore, social media play an essential role in hospitality industry,
transforming the way for searching tourist, finding data regarding travel-related products or
services, and modifying the way they create hotel related decision online. Along with this, social
media and user-generated content has positive relationship over buying behaviour of customers
within hospitality industry.
Social media has now become more important and significant part of each enterprise in
order to interact with clients, maintain promotions at low cost, approach new marketplace, give a
platform of digital marketing, increase customer base and so on (Alexander, 2014). These
advantages attract an organisation to use social media practices in their business operations.
Research Questions
 How do luxury Hotel companies benefit from social media?
 What are the effects of social media on buying behaviour of customer in the luxury Hotel
industry?
 What are the approaches which luxury Hotel industry can use to increase buying behavior
of customers?
Research aim and objectives
Research aim
Main aim of this research is to explore relationship between social media and user-
generated content on buying behaviour in the Luxury Hotel Industry.
Research objectives
Objectives of the study is mainly depend on research title and aim. With the helps of
research aim, research objectives systematically formed by researcher. Along with this, research
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objectives mainly based on two variables which are dependent and independent. According to
this investigation buying behaviour of customers is mainly depend on social media and user-
generated content ( El Ouirdi and et. al., 2015). There are some research objectives which will be
determined as below:
 To identify the benefits get by luxury Hotel companies from social media?
 To identify the effects of social media on customer buying behaviour in the luxury Hotel
industry.
 To evaluate approaches of social media which luxury Hotel industry can use to increase
buying behavior of customers.
Rationale of the study
The main purpose behind doing this study is that it assist the investigator in developing
accurate knowledge about the relationship between social media and user-generated content on
buying behaviour within Luxury Hotel Industry. In addition it also reveals up the advantages
that company will get by making proper use of social media in their business operations after
evaluating data collected via different sources or medium (Ladkin and Buhalis, 2016). With the
support of this data it become achievable for the readers and many other organisation to
determine the chances as well as difficulties that are accessible in front of them to make effective
use of social media platform. Additionally conduction of research activity will allow investigator
to improve their capabilities and knowledge in order to do research effectively by getting
awareness about certain kind of tools and methods as well as the manner in which these methods
must be opt to collect and present data in appropriate manner for achieving research objectives
systematically. This investigation when get published can also be followed for the academical
manner as it help the students in processing their knowledge about the relationship between user-
generated content and social media on purchasing decision of customers within Premier Inn.
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Literature Review –
This is an important section of research project which helps in collection of detailed and
in-depth information from different sources such as magazines, books, published articles etc.
These are useful sources which support researcher to collect secondary information regarding the
importance of social media and user-generated content on buying behaviour of travellers within
Premier Inn. Main purpose of this section is to ascertain gaps and conflicts in previous study.
Along with this, in literature review, each objectives and questions of study will be addressed in
more systematic and effective manner (Schlagwein and Hu, 2017).
Gap of literature: Main gap of literature review is to exploring relationship between
social media and user-generated content on buying behaviour in the Luxury Hotel Industry. It is
a main gap that is found in current literature review in systematic manner.
Benefits get by luxury Hotel companies from social media
According to the Zeng and Gerritsen, 2014, Social media has supported the luxury hotels
in enhancing their operations and performance by giving them a medium to decrease the distance
as well as time of the operations to be performed by keeping it at a distanced of click. Social
media brings up the favourable impact over the business performance and success by remaining
linked with the customers as well as having a direct relation with them in order to solves their
queries and giving them with customised services. Along with this, there are different advantages
get of luxury Hotel companies from social media which will be determined as below:
Reaching new customers: By having strong social media presence, luxury Hotel
companies from social media can promote their amenities, services and products constantly to a
large number of potential clients. This can be completed without spending more amount of
capital and marketing can be completed in real time. Large number of persons are online every
day, which allows luxury Hotel companies to reach hundreds as well as thousands of potential
clients at once.
Increase direct booking: Direct booking from online or mobile devices have essentially
maximized during the last time period. It is now answerable for more than $8 billion in luxury
Hotel companies bookings every year. They are visible on entire social media platforms so
business can increase direct bookings and allow clients to easily make a booking with luxury
Hotel companies with a few easy steps.
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According to the Djvallauri, 2017, there are different advantages get by luxury hotel
companies from user-generated content. Some are determined as below:
Cost benefits: The cost of marketing campaigns and traditional advertising are always
strain on budget of luxury hotel companies. But the content creation cost in included in such type
of marketing approach. Later on all, the source is the individual's exchanges posted on publicly
via social networks.
Social traffic increase: Social media influencer within luxury hotels companies has
established believability and has a bigger follower base. Along with this, better experience
towards hotel services will also support an organisation by increasing number of customers and
also helps them to maximise their sales. Along with this, social media influencer helps an
organisation by promoting accurate information about the hotels. Social media influencers have
more power to attract customers and also change their decisions about specific hotel.
Effects of social media on customer buying behaviour in the luxury Hotel industry.
According to the Anjum Tanwar, 2017, Social media in recent time period is playing a
prominent and most essential role in impacting the brand awareness, loyalty and sales. As
discussed in the process of decision making the impact of social media remains essential in the
stages including information search, secondary evaluation and post purchase evaluation. Social
media though has complex the decision making process as well as extended the time period
taken by the customers to purchase the products or services from luxury Hotel companies.
Customers now take their own time period in order to search for data to make a decision as well
as do not only relayed on the data provided by the advertisements online or offline. Along with
this, social media within luxury hotel industry plays an important and significant role in
changing buying behaviour of customers. Today's people are more active on social media and
they quickly search best hotel and services. As it support customers by saving its time and cost.
Approaches of social media which luxury Hotel industry can use to increase buying behavior of
customers.
As per Roesler, 2019, social media is highly important for several marketers, as well as
business owners. In addition to this, while the current business environment requires the
organisations to adopt social media practices, as they have a great influence over aspects like
brand awareness, customer engagement and even their buying processes. Furthermore, it has a
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substantial reach within all over the world which allows the firm to track the actions of
individuals towards their content from all over the world.
In addition to this, social media has an influence of buying behaviour of people belonging
to different age groups and races, despite the distinctions in their demographic factors. Moreover,
as per several reports, almost 47% of millennial population are heavily influenced by social
media towards their purchases. However, there are several ways in which business users could
use social media in order to influence customers in their buying processes. For example, they
could effectively track individuals in relation to what interests them in shopping, which would
allow them to influence the customers by offering the similar products. Moreover, another way
in which the companies could influence buying behaviour is through point-of-sale marketing.
This reflects the fact that people tend to be influenced by anything unique, which could instantly
attracts them to the point where they are motivated to buy the product for themselves.
In the viewpoints of Gevelber, 2017, access to information within social media has also
influenced the buying behaviour of customers. This is because social media has expanded to
such an extent that each and every portal and website have new and better advice to provide to
customers which appropriately and effectively influence customers to buy the most desirable
product for themselves. One best example of such influence is Google, which is one of the prime
search engines used globally. There are several products which could be effectively searched
within the search engine, that are termed as high and low consideration products. For example,
small things and products, such as products for everyday use influence the customers a lot, rather
than buying a car. This is because the search, which is an effective social media approach these
days, provide a variety of influential products and varieties associate with these products.
Furthermore, search engine optimisation plays a crucial role in influencing the buying behaviour
as well. This is because there are different sizes, types and varieties of product that are personally
preferred by individual. For instance, an oversized male would prefer running shoes with more
comfort, rather the ones which give more speed. Hence, search engine optimisation helps
customers in getting the perfect match for their preferred products and services.
Hence, several approaches such as social media portals, online shopping and search
engine optimisation are prominent approaches of social media which are required to be
understood and applied by businesses to positively influences the customers in buying their
offerings and preferring the same in comparison with other companies within the market.
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Proposed Methodology
Research methodology introduces as a systematic plan or procedure, which could support
in creating a research project. It is an effective process or plan that will be opt to collect
information for the purpose of making accurate decisions. In this section of investigation,
research onion framework will be applied which illustrates different stages involved in the
creation of research work (Flick, 2015). This framework was developed in 2007 by Saunders.
This framework includes different layers that provide a more elaborated description of the phases
of a research process. In this part of research, different methods will be going to used by
investigator with purpose to collect appropriate amount of data about the study. Along with this,
in current study, different number of techniques and approaches will be opted by researcher to
collect information in authenticate and reliable manner. Important and useful methods for
conducting this research will be determined as below:
Research Philosophy:
It introduces as a upper layer of research onion framework which helps in evaluation of
effective data. There are two research philosophy that are applied within a project such as
positivism and interpretivisim (Gioia, Corley and Hamilton, 2013). In current study, investigator
will give more preference to interpretivisim research philosophy as it helps researcher in arriving
at the valid and appropriate conclusion. This philosophy will also assist researcher when
collection of authenticate and detailed data about the relationship between social media and user-
generated content on buying behaviour in the Luxury Hotel Industry. However, positivism is
another type of philosophy in research but it is not useful because it not helps in arriving valid
conclusion and also take more time of researcher.
Research Approach:
Inductive and deductive are consider two types of research approach. Within an
investigation, inductive approach will be opt to conduct an evaluation over the relationship
between social media and user-generated content on buying behaviour within Luxury Hotel
Industry. Inductive approach support researcher in analysation of qualitative information
regarding the topic. In which data or information regarding the study is presented in graphical
format. It will also essential for researcher to attain valid outcomes easily. On the other hand,
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deductive approach is not used for doing this study because it not helps in evaluation of proper
information or data about the current investigation (Green, Camilli and Elmore, 2012).
Research Strategy:
There are various strategies applied to collect data such as interview, focus group, case
study, survey, questionnaire etc. These are main strategies or methods of data collection. In order
to conduct this study systematically questionnaire will be going to applied because it assist in
collecting the larger amount of information or data from a larger sample size at a time (Kumar,
2019).
Research Choice:
There are basically two choice for researcher to select research i.e. qualitative and
quantitative. Both are consider effective choice of research for researcher to use and collect
information in qualitative as well as quantitative manner. Within an investigation, qualitative
research choice is more suitable and appropriate as it provide quality data about the study.
Quantitative is another choice for researcher but in order to conduct this study, it is not much
appropriate. As it take maximum time and resources of an organisation or researcher
(Mackenzie, Tan, Hoverman and Baldwin, 2012).
Procedures, Techniques and research instruments:
This is consider main and useful part of research methodology because it assist in
collection of appropriate data about the study. In order to collect information there are different
number of techniques, instruments such as questionnaire, interview, case study, observation,
focus group etc. All these are main and effective instruments of data collection. In order to gather
information regarding the relationship between user-generated content and social media on
buying behaviour, questionnaire will be used. As this technique helps in accumulation of
authenticate and reliable data (Mackey and Gass, 2015).
Sources of data:
It is another layer of research onion framework which helps researcher in collection of
primary and secondary information about the study. In order to collect primary data,
questionnaire will be applied. As this source of primary data helps researcher to gather valid and
authenticate information regarding the current investigation. Under secondary source of data
different ways available for researcher such as magazines, books, articles, publication study etc.
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Therefore, both sources of data i.e. primary and secondary will be going to used for gathering
secondary and primary information easily (McCusker and Gunaydin, 2015).
Research design:
Each activities of research project is depends on research design. It is carried out by
investigator for examine the impact. There are basically three types of research design which are
exploratory, experimental and descriptive. Within this investigation, descriptive design of
research will be going to used by researcher. This design is more suitable and through this,
conclusion of study can be derived in more effective and accurate manner (Miller and et. al.,
2012).
Research Sampling:
It is main type of research methodology because without this researcher not select sample
size for doing any kind of study in systematic manner. In order to conduct primary research,
research sampling play important and essential role. There are two methods of sampling such as
probability and non-probability. Within a research, probability method of sampling will be going
to used as it not need more resources and time of researcher. With the help of this sampling, 50
respondents will be selected on random basic. Non-probability is another method of sampling
which is not valuable for this study (Quinlan and et. al., 2019). As it not helps researcher in
saving of its time, cost and resources.
Research Ethics:
It is another section of research that are needed by researcher to investigate research in
rightful manner. There are basically three principles of research ethics that were opted in doing
investigation effectively such as; confidentiality, informed consent and anonymity. For
anonymity, accurate details or information of all respondents were not included as well as not
linked to any other type of primary research. In case of informed consent, investigator must give
accurate and valid data regarding the research objectives to each respondents which will support
them in completing each activities of research systematically and effectively. Along with this,
research ethics is important part of research as it support researcher to complete research project
in rightful and ethical manner (Riedl, Davis and Hevner, 2014).
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Research Limitations:
This part of research methodology includes different limitations which will going to be
faced by researcher. It includes lack of time, insufficient cost, improper behaviour of
respondents, lack of resources, selection of sample size, lack of previous study etc. These are
major limitation which will be faced by investigation while collection of accurate information
from the respondents within given time, cost and resources. In order to deal with these
limitations researcher must use Gantt chart as it helps them by providing detail information about
the starting and ending time of research (Scotland, 2012). In order to reduce impact of unethical
and improper behaviour of respondents, researcher mus follow each activity of investigation in
ethical manner.
Research reliability and validity:
This is important method of research methodology which will be beneficial for
investigator to accomplish better outcomes easily. Validity and reliability within research is
important and its is mainly based on questionnaire. It is an useful instrument or technique of
primary data collection which support researcher by providing valid data regarding effective
relationship between social media and user-generated content on buying behaviour (Silverman,
2016).
Data Analysis Techniques and Expected Outcomes:
There are basically two method of analysing data about the current study. It includes
statistical or analytical method. Within a study, analytical tool will be going to used because it
helps in analysation of appropriate information without wasting time and cost. Thematic analysis
is a main type of analytical tool which is used for analysing information in effective manner. In
this case, various number of patterns or themes will be developed which support in achieving of
valid results (Tuohy and et. al., 2013). One of the main advantage of thematic analysis as it gives
a vast amount of flexibility. It also provide flexible way of information analysis as well as
permits investigators with various methodological backgrounds, to engage this kind of analysis.
Main focus of this method is to examine patterns or themes of meaning within data.
Along with this, by using thematic analysis, researcher become more able to accomplish
expected outcomes. It will support researcher in completion of research activities and task in
systematic and appropriate manner. With the help of questionnaire researcher can easily achieve
expected outcomes and do further investigation in systematic manner (Wiek and Lang, 2016).
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Time frame –
It is an important section of research project as it support researcher to complete research
activities within allotted time period. For this section, Gantt chart will be going to used because it
support researcher in identification of starting and ending data of research project. Gantt chart is
observed as the graphic representation tool of entire activity within research that will be executed
by investigation at workplace (Walliman, 2017). This type of tool consist of horizontal as well as
vertical line that is highly valuable in developing accurate understanding or knowledge on the
tasks inclusion of their starting and finishing time period. In this chart, different number of
activities will be included which support researcher to complete each tasks in systematic manner.
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From the above mentioned graph it has been interpreted starting and ending data of each
activities of research. Introduction: In order to complete first activity of research, researcher will require 2
days. Setting aims and objectives: 5 days of time period will be needed by researcher for
formulating research aims and objectives. Literature review: In order to do this activity of research, 9 days will be require by
researcher. Research methodology: It is important activity of research and for completing this
section 15 days will be require by investigator. Collection of data: In order to collect information through questionnaire, 21 days will be
needed by investigator. Analysis of data: In order to analysis appropriate amount of information, 17 days of time
period will be required.
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 Conclusion and recommendation: For doing this section of research, 4 days will be
needed.
 Submission of final report: In order to submit final report of project, 1 days will be
required.
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Conclusion –
From the above mentioned information, it has been concluded importance of social media
and user-generated content within hospitality industry. As it impact on customers buying
behaviour which further support an organisation in increasing its sales and profitability. Along
with this, social media is more important for an organisation by increasing its brand awareness,
increasing sales, maximising customer base etc. Along with this, social media is also beneficial
in changing buying behaviour of customers. As this save time and cost of users which will be
more beneficial for business.
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