Analyzing Social Media's Role in Travel Purchases: A Costsaver Focus

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Research Proposal
How does social media influence the travelling purchase
decisions of the customers in the travel and tourism
industry?- A case study of Costsaver, Guernsey
Marketing
Student Name:
Student ID:
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Abstract
The focus of the study has been laid on illustrating about the various factors associated with
the extensive use of social media on consumer’s decision-making process. For this, the
researcher has selected the most suitable methods and techniques for collecting the
appropriate data. The major fact that has been discovered is that consumers use the social
media sites as a research tool for searching about the essential information on travel
packages. It has been highlighted that watching images being shared by friends and relatives
on social media helps consumers to identify their own needs. More and more companies are
adopting this technology to identify the existing customer preferences and trends and develop
strategies accordingly.
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Table of Contents
1.0 Introduction..........................................................................................................................4
1.1 Background to the Study......................................................................................................4
1.2 Research Aim.......................................................................................................................4
1.3 Research Objectives.............................................................................................................4
1.4 Research Questions..............................................................................................................5
1.5 Rational of the Study............................................................................................................5
1.6 The Scope of the Study........................................................................................................6
1.7 Literature Review.................................................................................................................6
1.8 Research Methodology.........................................................................................................7
1.9 Project Planning...................................................................................................................8
1.10 Ethical Issues......................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................11
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1.0 Introduction
Social media technology is considered to be the most significant development that has ever
taken place in the history of commerce (socialmediaweek.org, 2017). The reason why the
social media platform has such lasting influence on the decision process of customers is due
to the fact that it puts the consumers at the centre of the business world and provides the
travel and tourism companies to interact with their potential customers and in addition,
integrate customers with the brands in an innovative manner. According to the recent
research and findings, it has been revealed that nearly 45 per cent of the total online users
said that reading reviews and feedbacks in social media does has influence on their
purchasing behaviour (Wang and Yu, 2017).
1.1 Background to the Study
Costsaver is a travel and tourism agency, which is a part of Trafalgar Tours. The company
has about 70 years of experience in the sector. Along with this, the company has received
several awards due to its unique and innovative services, the most prominent being the 5-Star
Gold Award. It was awarded from the independent review provider named Feefo
(Costsavertour.com, 2019). The most featured characteristic of the company is that it offers
the featured destinations at unbeatable prices. Company has lately transformed its business
operations and decision making process by aligning the processes with customer data and
trends.
1.2 Research Aim
The primary aim of the study is to highlight the impact of social media on the decision
making process of the customers in relation to the travel and tourism industry.
1.3 Research Objectives
The research objectives of the study are:
 To highlight the ways through which social media influences the travelling purchase
decisions of customers of Costsaver Tour Company
 To analyse the impact of social media on the decision-making process of management
at Costsaver Tour Company
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 To illustrate the issues that the management of the Costsaver Tour Company faced
while adopting the social media platform
 To provide few recommendations for the Costsaver Tour Company in order to
improve the effectiveness of their strategies in relation to the social media technology
1.4 Research Questions
Research questions of the study are:
 What are the ways through which social media influences the travelling purchase
decisions of customers of Costsaver Tour Company?
 What has been the impact of social media on the decision-making process of
management at Costsaver Tour Company?
 What were the issues that the management of the Costsaver Tour Company faced
while adopting the social media platform?
 What are the best recommendations for the Costsaver Tour Company in order to
improve the effectiveness of their strategies in relation to the social media
technology?
1.5 Rational of the Study
What is the issue?
The major issue associated with the company is the fact that it has been witnessing
considerable decline in the customer base, thereby, losing its profit margins.
Why is the issue?
The entire travel and tourism industry has been experiencing rapid changes in the customer
trends that have raised concerns over the future growth prospects of the company Costsaver
Tour.
What is the issue now?
Currently, the management of the company is experiencing fierce competition in the travel
sector and in addition, it has failed to grab the most advantageous opportunities in their
favour.
What light this project will shed upon?
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The intent of the study is to highlight about the growing influence of the social media on the
customers and their behaviour. Therefore, the aim of the study is to highlight the importance
of the matter and the ways through which it can be used for the company’s benefits.
1.6 The Scope of the Study
The scope of the study involves a highly important matter, which is the influence of the social
media technology on the business prospects of the travel and tourism sector. Social media
technology is being considered as a highly important tool for promoting business, therefore,
this study will be highly beneficial for the tour operators and agencies.
1.7 Literature Review
Social media and the emergence of social networks
Huge advancement in the information technology and communication sectors has helped to
transform the ways through which human beings interact with each other (Godey et al.,
2016). Enhanced use of internet and mobile devices has assisted in the growth of social media
sites. The major reason behind the revolutionary rise of social media is that it social
networking sites have changed the manner people work, live and communicate as well as it
has helped to generate several platforms for faster interaction among users. According to the
recent data, it has been estimated that in 2019, there will be 2.77 billion online users in social
media sites from 2.46 billion in 2017 (statista.com, 2019).
Figure 1: Number of online users worldwide
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(Source: statista.com, 2019)
Influence of social media on the different stages of consumers purchasing behaviour
The major process or stages involved in the decision making process of consumers are,
recognising the need, searching for information, evaluation of alternative options, decision to
make purchase and providing feedback after purchase.
Social media has built a close relation with the customers, as it offers the feature to access all
necessary information about every topic and field. Along with this, it has assisted to bring the
buyer and seller closer to each other. Since, there is huge number of users in the social media
sites; it contains lot of information floating freely through these medium. Consumers can find
relevant information by following brands, relatives and friends. This way social media helps
them to identify their own needs as well as learn about the field through others feedback and
comments (Ashman et al., 2015).
Literature Gap
Recently, it has been observed that users are declining the amount of time that they earlier
invested in social media sites due to customer data breach. These factors have been observed
to have certain negative influence as well, thereby, these factors have not been studied in
great detail in the above study.
1.8 Research Methodology
Research methodology refers to the aspect of the study where the different methods and
techniques that will be utilised by the researcher are mentioned. Different methods and
techniques will be used for preparing the study by collecting the most relevant data about the
subject (Quinlan et al., 2019).
Research Philosophy
Research philosophy refers to the method by which the researcher selects the appropriate
source for gathering data. In this study, the researcher will select positivism research
philosophy, as it is the most suitable one. The idea behind the selection of this philosophy is
that it does not involve human intervention and allows the researcher to follow a scientific
approach towards data collection.
Research design
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Research design is about the process that is followed for deducing the meaningful
conclusions in the study. For this, the researcher will select explanatory research design, so
that he or she is able to explain all the associated topics (Alvesson and Sköldberg, 2017).
Research approach
Research approach is a method that is used for analysing the data collected. In this study, the
researcher will select deductive approach, as it involves utilisation of existing theories and
models for preparation of hypothesis.
Data collection technique
Both primary as well as secondary data collection method will be used in the study
Data analysis technique
In this study, quantitative analysis technique will be used by the researcher.
Sampling technique
In this study, the researcher will select 100 customers of the company Costsaver Tour
Company for conducting survey. For this, the researcher will adopt probability sampling
technique, according to which random sampling process will be adopted.
1.9 Project Planning
This section of the study provides the list of different activities that will be carried out in an
organised manner in the following weeks:
Activities 4th Feb-
20th Feb
21th
Feb
10th
Mar
11th
Mar-
31th
Mar
1th
Apr-
21th
Apr
22th
Apr-
14th
May
15th May-
24th May
Selection of topic is done
Best possible data is gathered
Layout of the project
Literature review
Planning is carried out
Methodology for research is
framed
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Analysis of the data collected is
carried out
Meaningful conclusions are
developed
Draft of the final project will
be completed
Final file will be submitted
Table 1: Gantt chart
(Source: Created by the learner)
1.10 Ethical Issues
Researcher realises the fact that following all the methods and processes in an ethical manner
will guarantee proper evaluation of various parameters of the research study. Therefore, the
researcher is determined to follow Data Protection Act, 2018, in order to ensure that no
confidential details are shared with any other individual. Along with this, the researcher aims
to provide the most relevant and recent statistics and figures in the study related to the
subject.
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References
Alvesson, M. and Sköldberg, K., 2017. Reflexive methodology: New vistas for qualitative
research. Sage.
Ashman, R., Solomon, M.R. and Wolny, J., 2015. An old model for a new age: Consumer
decision making in participatory digital culture. Journal of Customer Behaviour, 14(2),
pp.127-146.
Costsavertour.com. (2019). Costsaver | Value Tours & Budget Guided Vacation Deals.
[online] Available at: https://www.costsavertour.com/en-sg [Accessed 22 Feb. 2019].
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R.,
2016. Social media marketing efforts of luxury brands: Influence on brand equity and
consumer behavior. Journal of business research, 69(12), pp.5833-5841.
Quinlan, C., Babin, B., Carr, J. and Griffin, M., 2019. Business research methods. South
Western Cengage.
socialmediaweek.org. (2017). How Social Media is Influencing purchase decisions. [online]
Social Media Week. Available at: https://socialmediaweek.org/blog/2017/05/social-media-
influencing-purchase-decisions/ [Accessed 22 Feb. 2019].
statista.com. (2019). Number of social media users worldwide 2010-2021 | Statista. [online]
Statista. Available at: https://www.statista.com/statistics/278414/number-of-worldwide-
social-network-users/ [Accessed 22 Feb. 2019].
Wang, Y. and Yu, C., 2017. Social interaction-based consumer decision-making model in
social commerce: The role of word of mouth and observational learning. International
Journal of Information Management, 37(3), pp.179-189.
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Appendix
Q1. What is your age?
 20 to 25 years
 26 to 30 years
 31 to 35 years
 Above 36 years
Q2. What is your gender?
 Male
 Female
Q3. How much time do you spend every day using social networking sites?
 Less than an hour
 1 to 3 hours
 3 to 5 hours
 More than 5 hours
Q4. Which brands of travel and tourism industry you follow in social media sites?
 Exodus
 Trailfinders
 Riviera
 Costsaver
Q5. Which is the most influencing information channel for consumers?
 Social media
 TV advertisements
 Magazine advertisements
 Posters and banners
Q6. How far do you think that social media serves the role of a research tool for
consumers?
 Strongly agree
 Agree
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 Neutral
 Strongly disagree
 Disagree
Q7. What are the major categories for which the consumers use social media to search
information?
 Clothes
 Electronics
 Travel and tourism
 Entertainment
 Health and beauty products
Q8. How far do you think that watching friends talking or displaying images about a
product or service on social media help them identify a need?
 Strongly agree
 Agree
 Neutral
 Strongly disagree
 Disagree
Q9. How far do you think that social media influences the brand image of the Costsaver
Tour Company?
 Strongly agree
 Agree
 Neutral
 Strongly disagree
 Disagree
Q10. What are the major factors that are analysed while making the decision to
purchase a holiday package?
 Brand image
 Featured destinations
 Popularity in social media sites
 Availability of discounts and offers
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