Tourism & Management Studies, 17(3), 2021, 51-62 https://doi.org/10.18089/tms.2021.170304
Social media marketing influence on Boutique Hotel customers’ purchase intention in Malaysia
Influência do marketing nas redes sociais na intenção de compra dos clientes de Hotéis Boutique na Malásia
Anshul Garg
School of Hospitality, Tourism & Events, Faculty of Social Sciences and Leisure Management,
Taylor’s University, Malaysia, anshul.garg@taylors.edu.my
Jeetesh Kumar
School of Hospitality, Tourism and Events, Centre for Research and Innovation in Tourism (CRiT), Faculty of Social Sciences and
Leisure Management, Taylor’s University, Malaysia, jeetesh.kumar@taylors.edu.my
Received: 26.02.2021; Revisions required: 03.04.2021; Accepted: 20.07.2021
Abstract
Resumo
As of January 2020, global social media users have exceeded 3.8 billion,
accounting for 49% of the world’s total population. Internet and social
media have become an indispensable part of people’s daily lives
worldwide. However, most previous research only focuses on social
media marketing in other businesses, and there is less research about
the development of boutique hotel social media marketing. This study
investigates the relationship between different social media marketing
practices and customers’ purchase intention in Malaysia’s boutique
hotels. The article also explores how to properly conduct social media
marketing to increase the customer purchase intention of boutique
hotels and promote the boutique hotels’ development in Malaysia. The
non-probability random sampling technique 309 response was
collected from Malaysian social media users using an online survey.
Findings of the research found out that factors including marketing
activities and eWOM significantly impact customer purchase intention
of the boutique hotels in Malaysia through the mediating variable
perceived usefulness and the mediating variable perceived trust. The
study offers implications for the development of social media marketing
in boutique hotels.
Em janeiro de 2020, os utilizadores globais de redes sociais ultrapassaram
3,8 biliões, representando 49% da população total do mundo. A Internet
e as redes sociais tornaram-se uma parte indispensável da vida diária das
pessoas. No entanto, a maioria das pesquisas anteriores centra-se apenas
no marketing nas redes sociais noutros tipos de empresas, e há poucas
pesquisas sobre o desenvolvimento de marketing em redes sociais em
hotéis boutique. Este estudo investiga a relação entre diferentes práticas
de marketing em redes sociais e a intenção de compra dos clientes de
hotéis boutique na Malásia. O artigo também explora como conduzir
adequadamente o marketing de redes sociais para aumentar a intenção
de compra do cliente em e promover o desenvolvimento dos hotéis
boutique na Malásia. A técnica de amostragem aleatória não
probabilística com 309 respostas foi coletada de utilizadores de redes
sociais da Malásia por meio de uma pesquisa online. Os resultados da
investigação demonstram que fatores incluindo atividades de marketing
e eWOM impactam significativamente na intenção de compra do cliente
por meio da variável mediadora utilidade percebida e da variável
mediadora confiança percebida. O estudo oferece implicações para o
desenvolvimento do marketing de redes sociais em hotéis boutique.
Keywords: Boutique Hotel, social media marketing, purchase intention,
malaysia, electronic word of mouth, perceived trust.
Palavras-chave: Hotel Boutique, marketing de redes sociais, Intenção
de compra, Malásia, Boca a boca eletrónica, confiança percebida.
1. Introduction
media includes Facebook, Instagram, Twitter, and other forms
of platforms, which migrate people’s real-life social relationship
networks to the Internet, and derives new social relationship
networks (Alhabash & Ma, 2017). Social media users have
transformed from passive receivers of information to active
creators of knowledge. The generation of marketing content is
due to consumers’ active discussions and content sharing on
social media, stimulating and influencing consumers’ purchase
intention and purchase behaviour (Duffett, 2017). Many
companies regard the rapid rise of social media as a good
opportunity. They have begun to consider how to rely on social
media platforms to establish intimate and friendly relationships
with customers and deepen interaction and communication
with customers (Arora, Bansal, Kandpal, Aswani, & Dwivedi,
2019; Saura, 2020).
Since the 1990s, the global Internet has entered commercial use
and has expanded rapidly. As of January 2021, the estimated
world demographics were 7.8 billion, and as of the 2020 year,
Q3 estimates, the number of internet users worldwide had
reached 4,929,926,187 (Internetworldstats, 2020). According to
the data, the average penetration rate of internet users
worldwide has gained 63.2%. The Internet incorporates itself
into a compelling information-sharing platform. People around
the world can communicate through the internet and share
resources conveniently and quickly. It has become a critical
information infrastructure and the basic structure of various
industries, promoting social progress and economic
development. In the continuous changes of the Internet, social
media has developed rapidly as an innovative product.
According to the GlobalWebIndex report, ordinary people take
time on social media for two hours and twenty-four minutes
every day (Kemp, 2020). Mobile, digital, and social media are
closely connected with people’s lives worldwide and have
become a requisite part of people’s lives (Kemp, 2020). Social
Entrepreneurs use social media mainly to market their
products/services (Olanrewaju, Hossain, Whiteside, &
Mercieca, 2020). In the hotel marketing management process,
managers have already apprehended the critical role of various
social media. With the changes in the competitive environment
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Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
and the rapid development of information technology, social
media marketing plays a more significant role in developing the
hospitality industry (Varkaris & Neuhofer, 2017). Compared with
other global sectors, the hospitality industry is expanding at an
unprecedented rate. The hospitality industry is receiving better
attention, and more and more customers are concerned about
the quality of products than just quantity (UK Essays, 2017). The
hospitality industry is a people-oriented service industry. In
recent years, the Malaysian hospitality industry has achieved
positive growth with the global hospitality industry’s rapid
development. Malaysia’s tourism industry has become one of
the national economy’s essential pillars (Bernama, 2017). A
large part of the hospitality industry’s diversity is boutique
hotels, leading to increased boutique hotels (Aggett, 2007).
Unlike other hotels, boutique hotels are a unique
accommodation experience, and their unique style and
personalised high service level are highly emphasised. Due to
the uniqueness of boutique hotels, their operation needs to
meet higher and newer requirements. The development of
boutique hotels is inseparable from social media, and social
media marketing is one of the most potent instruments for
boutique hotels to maximise marketing effectiveness.
Many scholars have analysed online consumers’ purchasing
intention with the extensive development of social media
marketing in various fields. However, most of these analyses
study consumers’ purchase intention at a macro level. There is
very little research on the analysis of boutique hotel consumers’
purchase intention, and there is not much research on the social
media marketing of boutique hotels. Thus, the purpose of this
study is to investigate how different social media marketing
methods affect Malaysian boutique hotel customers’ purchase
intention and explore social media marketing strategies
suitable for Malaysian boutique hotels. This study can provide
suggestions for the future development of boutique hotels in
Malaysia to implement social media marketing strategies better
from a long-term perspective. This study will analyse consumer
purchasing behaviour and propose marketing strategies in the
context of the Internet era, not only for boutique hotels but also
for the entire hotel industry and other industries. Moreover, this
research strengthens the marketing theory and social media
marketing theory from an academic perspective and enriches
the research on boutique hotel consumers’ purchase behaviour
and references future research on related aspects.
Consequently, this research investigates the following
objectives:
Social media is having a substantial impact on consumers’
purchase behaviour. Millennials are currently the most
populous generation globally (Taha, Pencarelli, Škerháková,
Fedorko, & Košíková , 2021) and represent the highest-spending
generation in 2020 - with a projected $1.4 trillion (Kasasa,
2021). Generation Y is the newcomer both in the workplace and
visitors category. Generation Y is the most significant tourism
industry participant as they are now in the active phase of their
birth cycle. The core of Generation Y is called millennials (Garg,
2020). The content posted on social media has become a source
of inspiration for millennials. According to the study conducted
by Payne (2019), 83% of millennials’ hotel bookings will be
affected by what they see on social media.
RO1. Examine the relationship between social media marketing
and customers’ purchase intention of boutique hotels in
Malaysia.
RO2. Investigate which social media marketing methods are
most influential to the boutique hotel customers’ purchase
intention.
The remainder of this paper is structured as follows. The
following section presents the literature review and hypothesis
development along with the conceptual framework of the
study. Sections “Research Methodology” and “Results” present
the methodology applied and report the results and confirm
this research hypothesis. Finally, the last section draws
conclusions and outlines directions for further research.
73% of people also admit that they checked the hotel’s social
media homepage information before booking (Payne, 2019).
It is also essential that one-third of people are unlikely to
continue booking if the hotel does not have a social media
homepage. Social media has a significant impact on most
consumers’ behaviour and purchasing decisions, and it has
also become an indispensable marketing tool for the
hospitality industry. Social media has changed how users
communicate and use Internet-based sites to divide content
between digital media and Internet users. (Abbas, Aman,
Nurunnabi, & Bano, 2019; Baccarella, Wagner, Kietzmann, &
McCarthy, 2018). In this era where data is the value (Saura,
Ribeiro-Soriano & Palacios-Marqués, 2021), hotel operators
can more easily confirm consumers’ preferences and
consumption needs through data mining and analysis
accurately grasp consumers’ psychological needs (Berezan,
Krishen, Agarwal, & Kachroo, 2018). Undoubtedly, choosing
good social media as a marketing instrument is crucial for
developing the hospitality industry.
2. Literature Review and Hypotheses Development
2.1 The Concept of Boutique Hotel
The emergence of boutique hotels is one of the most exciting
improvements in the leisure hotel industry. Lim and Endean
(2009) described boutique hotels as “a combination of highquality service, excellent facilities and location”. Boutique hotels
embody the local history and cultural characteristics and
provide guests with authentic local culture or engaging
historical experiences. The most competitive boutique hotels
and branded hotel chains are boutique hotels’ design
components and uniqueness considering differentiation
strategies (Ahmad, Hemdi, & Othman, 2017). Malaysia has
abundant heritage elements, such as historical buildings,
historical sites, and unique local culture, which provide both
developers and boutique operators with opportunities (As,
Ahmad, & Jamal, 2018). These boutique hotels are built
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Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
attitude construct (Lai, 2017). The author used marketing
activities, e-WOM, advertising, celebrity effect, and interaction
as the current research’s independent variables. Perceived
usefulness and perceived trust were the mediating variables,
and customer perceived intention was the dependent variable.
Figure 1 depicts the research model used in this study. The
definitions of the constructs and the theoretical basis explain
the hypotheses in the following sections.
according to boutique hotel operators’ ideas, ensuring the
hotel’s unique concept and creating unforgettable guests. The
design of boutique hotels and their exceptional cultural services
provide consumers with a unique cultural experience that is not
replaceable by any other product (Lee & Chhabra, 2015; Ujang,
Moulay, & Zakaria, 2018).
2.2 Social Media Marketing
With the increasing popularity of social media marketing in
academia, social media marketing has obtained various
scholars’ views (Vinerean, 2017). Some scholars describe social
media marketing as the root of achieving business purposes
because social media marketing is related to customer loyalty,
willingness to purchase, and consumer rights (Felix,
Rauschnabel, & Hinsch, 2017; Yadav & Rahman, 2017). Other
scholars describe social media marketing as the tool to facilitate
connection and interaction with existing and potential
customers (Choi, Fowler, Goh, & Yuan, 2016; Pham & Gammoh,
2015; Tuten & Solomon, 2017). Social media marketing is how
enterprises produce, communicate, and achieve online
marketing products or services through social media platforms
and set up and preserve the relationships between
stakeholders (Yadav & Rahman, 2017). Social Media Marketing
gains stakeholders’ value by sharing information, promoting
interaction, providing personalised buying suggestions, and
forming word of mouth between stakeholders regarding
existing and trending goods and services (Saura, 2020; Yadav &
Rahman, 2017). Social media marketing provides opportunities
for both customers and marketers (Vinerean, 2017).
2.3 Customer Purchase Intention
Purchase intention is the transaction behaviour that the
customer exhibits after evaluating the goods and services
(Schiffman & Kanuk, 2010). Morwitz (2014) specified that
purchase intention is for assessing the effectiveness of
marketing strategies to foretell sales and market share.
Consumers’ willingness to purchase will also be affected by the
type of product reviewed (Lu, Chang, & Chang, 2014). Word of
mouth significantly affects consumers’ purchase intentions
(Tariq, Abbas, Abrar, & Iqbal, 2017). Personal behaviour,
attitudes, and unpredictable circumstances all impact purchase
intentions (Kotler, 2003). Purchase intentions increase with an
increase in promotional activities. Brand awareness and
consumer familiarity with the brand will also directly affect
consumers’ purchase intention (Tariq et al., 2017). Brand
awareness helps to create the brand’s cognitive thinking and
indirectly affects the customer’s purchase intention in front of
the brand image. The brand image plays an intermediary role in
the relationship between brand awareness and the customer’s
purchase intention (Sharifi, 2014). Celebrity endorsements are
more effective in increasing consumer brand awareness. The
celebrity effect promotes product participation and brand
loyalty and impacts consumer purchase.
The current study implemented the Technology Acceptance
Model (TAM) proposed by Venkatesh and Davis (1996). Davis
(1986) first established and verified the TAM’s primary
hypothetical framework, explicitly intending to realise the
consumer acceptance procedure in a better way. The model is
mainly used to study the user and the system’s recognition of
the system after the interaction. The current literature on
technology acceptance studies shows that TAM is a highly cited
model that can predict usage, individual intentions, and
individual users’ acceptance of technology, and has gone
through three stages of development: adoption, verification,
and expansion (Samar, Ghani, & Alnaser, 2017). TAM suggests
that behavioural intention foresees technology utilisation, while
attitude and perceived usefulness decide behaviour intention.
Davis (1986) mentioned that although design features
specifically impact perceived effectiveness and perceived ease
of use, external variables influence the attitude or behaviour
indirectly through the two variables. In TAM, usage portrays
one’s direct implementation of technology in their work setting.
2.4 Marketing Activities
Marketing activities are prevalent marketing methods around
the world in recent years. It creates possibilities for new product
promotion and brand representation and establishes brands.
Marketing activities use various events as a carrier to enable
companies to increase their brand value or increase sales. Social
media works when marketing activities establish relationships
between customers and companies. Social media marketing
activities are an essential part of corporate brand formation.
Social media’s popularity, cost reduction, and competitors
motivate marketers to carry out social media marketing
activities. Social media marketing activities usually focus on
customer satisfaction and the impact on customer behavioural
intentions (Simon & Tossan, 2018). Social media marketing
activities are part of online marketing promotion strategies
(Ismail, 2017), user ratings, reviews, recommendations, etc.
(Hajli, 2015). These days, consumers follow their favourite
brands on social media platforms such as Facebook and Twitter,
keep themselves abreast with the latest products, and enjoy
discounts and exclusive promotions (Hoffman & Fodor, 2010;
Seo & Park, 2018). Marketing activities are for consumer
participation, public awareness, product development and
In contrast, attitude depicts the degree of evaluative impact
that an individual attaches to utilising such technologies in their
work. Venkatesh and Davis (1996) provided the updated version
of the Technology Acceptance Model after the main finding that
perceived usefulness and perceived ease of use directly
influence behaviour intention, thus eliminating the need for the
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Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
(Shareef, Mukerji, Dwivedi, Rana, & Islam, 2019). As long as
customers feel that social media advertising is related to their
preferences and interests, they will be more inclined to
purchase products advertised in social media advertising. Social
media advertising should attract customers’ attention
cognitively and emotionally (Shareef et al., 2019). Many
scholars have studied the issues related to social media
platforms’ promotion based on social media’s strategic
significance in advertising (Carrillat, d’Astous, & Grégoire, 2014;
Duffett, 2015). These scholars proposed that marketing
advertisements on social media platforms can influence existing
and potential customers’ attitudes. The above discussion
presents the following hypotheses.
brand image. They can improve consumer reputation for the
brand, thereby improving consumer loyalty, influencing
consumers’ purchasing intentions, and making shopping
decisions to complete the actual purchasing behaviour. Hence
the following hypotheses were formulated;
H1a: Marketing activities have a significant impact on
consumers’ perceived usefulness.
H1b: Marketing activities have a significant impact on
consumers’ perceived trust.
2.5 Electronic Word-of-Mouth
With the speedy development of the Internet and the
expanding popularity of social media, Electronic Word-ofMouth (e-WOM) has become one of the most commonly used
digital media for communication between consumers (Chu &
Kim, 2011). Electronic WOM is defined as any positive or
negative comments made by past, present and future
customers on the product or brand, provided to other
consumers and organisations through social media platforms
(Hennig-Thurau, Gwinner, Walsh, & Gremler, 2004). Direct eWOM between customers can change their preferences and
purchase behaviour (Tien, Rivas, & Liao, 2019). Social media can
offer a luxuriant foundation for e-WOM information, which can
significantly impact consumer purchase decisions (Tien, Rivas,
& Liao, 2019). Compared with the situation where it was
challenging to observe WOM in the past, marketers can better
analyse and monitor consumer feedback through social media
platforms and manage such information better. Simultaneously,
though the business can obtain instant feedback from
consumers through e-WOM, e-WOM itself has risks. The spread
of some negative e-WOM will affect the brand’s image
(Kudeshia & Kumar, 2017), so it is imperative to properly
manage and encourage users to generate positive e-WOMs on
social media platforms. The above discussion leads to the
formulation of the following hypotheses.
H3a: Advertising significantly impacts consumers’ perceived
usefulness.
H3b: Advertising significantly impacts consumers’ perceived
trust.
2. 7 Celebrity effect
Consumers’ obsession with celebrities in the social networking
environment can be attributed to the pursuit of fame and the
rapid development of Web 2.0 (Jin, 2018). Marketers believe that
celebrities can be attractive to consumers, and this positive trait
can be transferred to recognised brands, so celebrity
endorsement has been widely used in marketing (Chung & Cho,
2017). The celebrity effect is equivalent to a brand effect, driving
the crowd and encouraging spending (Jin, 2018). Celebrity
endorsements come in many forms: direct recommendation,
experience sharing, and simultaneous appearance of products in
pictures or videos corresponding to explicit endorsements,
implicit endorsements, and joint presentations (McCracken,
1989). Brand cooperation with influential online celebrities to
promote their products has become a new trend called “impact
marketing” (Veirman, Cauberghe, & Hudders, 2017). Miller and
Laczniak (2011) proposed in their research that the celebrity
effect has a positive impact on brand awareness and brand
loyalty. Many scholars have also suggested that the celebrity
effect on advertising message attitudes (Silvera & Austad, 2004),
brand opinions (Till, Stanley, & Priluck, 2008) and consumer
buying intentions have a positive effect (Lafferty, Goldsmith, &
Newell, 2002). Based on the above literature, this study proposes
the following hypotheses.
H2a: Electronic word of mouth significantly impacts consumers’
perceived usefulness.
H2b: Electronic word of mouth significantly impacts consumers’
perceived trust.
2.6 Advertising
Organisations worldwide have begun to consider using various
social media platforms to attract customers and establish
profitable marketing relationships (Dwivedi, et al., 2017). These
organisations spend a lot of time and capital using social media
platforms to promote their products. One of the main goals of
promotion is to shape the consumer’s decision-making process.
Compared with traditional mass media advertising or online
advertising, social media advertising is more interactive with
customers. It helps businesses achieve many marketing goals,
such as improving customer awareness, building customer
knowledge, shaping customer awareness, incentivising
customer purchase behaviour, and promoting actual purchases
H4a: Celebrity effect has a significant impact on consumers’
perceived usefulness.
H4b: Celebrity effect has a significant impact on consumers’
perceived trust.
2.8 Social Interaction
Social media marketing is how companies create accounts on
social media platforms to communicate with customers and
provide online services to market their products. The various
social networking websites and their interactive feature offer
like-minded people a space to connect and develop business or
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Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
behavioural intentions. Previous research in Malaysia found
that a particular system’s perceived usefulness directly and
consequential impacts information systems (Ndubisi & Jantan,
2003). Previous studies revealed that helpful information and
convenience allow consumers’ to complete transactions
confidently and increase their willingness to buy (Chen & Teng,
2013). Based on the content above, this study makes the
following hypothesis:
social values across the Internet. Increasingly social websites
(e.g., Facebook, WhatsApp, Instagram, etc.) are currently
incorporating e-businesses into the profit model. Social media
platforms allow users to create their pages, communicate and
interact with their friends, and exchange information or share
sources related to the brand Information (Matthee, 2011).
Social media can significantly encourage customers to share
content and views with companies and other customers (Yadav
& Rahman, 2017). Social media can promote interaction with
other users through bulletin boards, chat rooms, or available
websites, thereby effectively improving knowledge levels
(Welch, et al., 2018). These interactions have fundamentally
changed communication dynamics between brands and
customers and promoted user-generated content in social
media (Daugherty, Eastin, & Bright, 2008). The interaction
between enterprises and consumers and the interaction
between consumers and the celebrities and friends they follow
can impact consumers’ purchase intentions through social
media platforms. According to Stephen and Toubia (2010), most
advantaged businesses are not generally those who use the
social network but have access to more consumers. Based on
the above discussion, the following hypothesis was proposed.
H6: Perceived usefulness significantly impacts customer
purchase intention.
2. 10 Perceived Trust
Trust is a significant feature of social networks, and the degree
of interpersonal trust can affect personal attitudes and the
acceptance of information (Sullivan & Kim, 2018). Trust is a
crucial factor for the success of e-commerce, and it also has an
important impact on customer loyalty (Safa & von Solms, 2016).
Trust is a critical determinant of consumer behaviour in the ecommerce environment, and it is also one of the essential
prerequisites affecting purchase intention. Trust can reduce
online consumers’ concerns about the ambiguity of
transactions and minimise the difficulty of interaction with
sellers, thus facilitating transactions’ efficiency (Shanmugam,
Sun, Amidi, Khani, & Khani, 2016). Generally, customers prefer
the opinions of professional bodies and experts for more
specialised products. As far as goods are concerned, customers
are vulnerable to the impact of family, friends and online
reviews. Whether they are experts, friends or online reviews,
customers have different levels of trust in them. Likewise, if a
customer has a high degree of confidence in social media
platforms, they are more likely to purchase online (Sullivan &
Kim, 2018). It can be established that the sense of trust in social
media has a significant effect on users’ decision-making.
Therefore, based on the above discussion, the following
hypothesis was proposed.
H5a: Interaction significantly impacts consumers’ perceived
usefulness.
H5b: Interaction significantly impacts consumers’ perceived
trust.
2. 9 Perceived Usefulness
According to TAM, the customer’s intention to adopt a
particular technology depends on the perception of the
technology’s usefulness and ease of use. Perceived usefulness
is defined as the extent to which persons believe that
technology will enhance their productivity or job performance
(Davis, Bagozzi, & Warshaw, 1992). A significant body of TAM
research has shown that perceived usefulness is a strong
determinant of user acceptance, adoption, and usage
behaviour (Davis, 1989; Taylor & Todd, 1995). According to
Davis (1989), perceived usefulness has a positive effect on
H7: The level of perceived trust in social media significantly
impacts customer purchase intention.
Figure 1 - Conceptual framework of the study
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Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
WhatsApp, Instagram and WeChat. According to the data
provided by datareportal.com, as of January 2021, Malaysia’s
existing Internet users are 27.43 million, and there were 28
million social media users in Malaysia in January 2021 (Kemp,
2020). Data was collected from Malaysian social media users,
and the sample comes from customers of boutique hotels
among Malaysian social media users. For the current research,
the author utilised SPSS version 25 to perform the data analysis.
Descriptive analysis was carried out to analyse the demographic
characteristics, and the instrument’s reliability tests were
carried out to ensure that all the constructs were free from
random error. Correlation analysis and multiple regression
analysis was performed to test the proposed hypothesised
model.
3. Research Methodology
3.1 Research Design
Research design is an outline for collecting, estimating, and
investigating the data based on the study’s research questions
(Sekaran & Bougie, 2015). A positivist paradigm approach drives
the current study. The objective of conducting a positivist study
is to investigate a social or human subject to explain the
phenomenon (Zhang, 2009) comprehensively. The positivist
paradigm is additionally mentioned as systematic, empiricist,
quantitative or deductive. To achieve the research objectives
and get the answers to this study’s research hypotheses, a
quantitative study approach must be the most appropriate
methodology due to the specified purposes. A quantitative
research design is suitable because it requires evaluating
connections between variables using a quantitative research
approach. This research adopted a deductive method to
determine social media marketing’s influencing factors on
Malaysian boutique hotel customers’ purchase intention and
achieve the research objectives. A non-probability convenience
sampling technique was used for data collection where samples
were selected from the population only because they are
conveniently available to the researcher.
3.4 Demographic profile of the respondents
A total of 309 respondents participated in this study. From the
total collected valid sample size, 56% were male, and 44% were
female. Most of the respondents were 26-32 years old,
comprising 57% of respondents, followed by 18-25 years old
group with 29.1%, whereas 10% were aged between 33 and 40.
These results depict that people aged between 26-32 years
were the most popular group in responding, whereas people
aged over 41 were less interested in the investigation. The
findings also suggested that 44.7% of respondents had diploma
level education, 36.6% had education up to foundation level,
12.3 were bachelor’s degree graduates, and 6.5 % were
master’s or PhD degree holders. The percentage of the
profession of the respondents was closely distributed. The
majority (30.1%) of the respondents were students who were
followed by the managers (18.1%), academicians (14.6%),
professionals (13.9%) and entrepreneurs (8.1. The remaining
respondents were either government employees, retired
people, or other professions not listed in the survey
questionnaire.
3.2 Instrument Development
A questionnaire was designed with items adapted from a prior
literature review. The questionnaire for the current study was
organised into two sections. The first section included questions
on the respondents’ demographic characteristics, such as age,
gender, education and profession. The second section
contained questions on the significant constructs included in
the research framework. The dimension scales of the
questionnaire for all items in the second section was established
on the 5-point Likert scale ranging from “strongly disagree” (1)
to “strongly agree” (5).
Section two included a total of 27 items for independent
variables such as Marketing Activities (4 items), e-WOM (4
items), Advertising (4 items), Celebrity Effects (3 items),
Interaction (4 items) to evaluate two mediating variables
including Perceived Usefulness (3 items) and Perceived Trust (3
items) and one dependent variable Purchase Intention (2
items). The items for the various constructs used in this study
were adapted from the preceding studies (Alalwan, 2018; Cho
& Sagynov, 2015; Choi & Yu, 2018; Chung & Cho, 2017; Djurica
& Mendling, 2020; Erkan & Evans, 2018; Fischer & Reuber, 2011;
Hutter, Hautz, Dennhardt, & Füller, 2013; Jamal & Sharifuddin,
2015; Kim & Ko, 2012; Ladhari & Michaud, 2015; Laksamana,
2018; Pappas, 2017; Racherla & Friske, 2012; Yadav & Rahman,
2017; Yen & Teng, 2015). Accordingly, seven different
hypotheses were derived from the above model.
4. Results
4.1 Reliability of the study
Cronbach’s coefficient alpha has commonly used for the
measurement of internal consistency reliability. According to
(Kline, 2015), Cronbach’s alpha value of 0.7 and above is
reliable. Sekaran and Bougie (2019) believed that an alpha value
of 0.5 is the lower acceptance value. Table 1 displays Cronbach’s
alpha coefficients for all constructs used in the study. All the
measures exhibited adequate reliability with Cronbach’s alpha
values ranged between 0.690 and 0.889, which falls within the
recommended threshold of 0.70 (Pallant, 2005), which suggests
that the “measures were free from random error and thus
reliability coefficients estimate the amount of systematic
variance” (Churchill, 1979). The overall Cronbach alpha value
was also found to be 0.920, extremely good. The higher
Cronbach Alpha values showed that all the items were
internally consistent, and the higher Cronbach Alpha for the
overall scale specifies that convergent validity was met.
3.3 Data Collection and Analysis Techniques
An online questionnaire was created, and data was collected
through social media online platforms such as Facebook,
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Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
Table 1 - Reliability Statistics
Variables
Cronbach Alpha (α)
N of Items
0.856
0.796
0.750
0.706
0.690
0.697
0.889
0.746
4
4
4
3
4
3
3
2
Marketing Activities
Electronic Word-of-Mouth
Advertisements
Celebrity Effect
Interaction
Perceived Usefulness
Perceived Trust
Purchase Intention
4.2 Correlation Analysis of the study variables
Trust’ towards the dependent variable ‘Customer Purchase
Intention’ to test the correlation between them. In Table 2, the
results of correlation analysis are significant at the 0.01 level.
When the correlation coefficients matrix between study
variables is examined, no correlation coefficient is equal to 0.90
or above. This examination supports this study’s discriminant
validity, which means that all the constructs are
different/distinct (Amick & Walberg, 1975) and indicates a
strong positive correlation between the variables.
In the current study, correlation analysis was employed because
“correlation analysis includes measuring the closeness of the
relationship between two or more variables; it considers the
joint variation of two measures” (Churchill, 1995; Pallant, 2005).
The correlation analysis was used for independent variables’
Marketing Activities’, ‘e-WOM, ‘Advertisement’, ‘Celebrity
Effect’, ‘Interaction’, ‘Perceived Usefulness’ and ‘Perceived
Table 2 - Correlation of the study
Scales
1
2
Marketing Activities
1
e-WOM
.703**
1
Advertisement
.745**
.781**
Celebrity Effect
.408**
.519**
Interaction
.483**
.547**
Perceived Usefulness
.154**
.286**
Perceived Trust
.073**
.184**
Purchase Intention
.010**
.058**
**. Correlation is significant at the 0.01 level (2-tailed).
3
4
5
6
7
8
1
.749**
.843**
.370**
.206**
.162**
1
.848**
.410**
.234**
.228**
1
.391**
.191**
.190**
1
.740**
.562**
1
.190**
1
4.3 Regression Analysis
Table 3 reveals that regression analysis was applied to have
‘Perceived Usefulness’ as the dependent variable and
‘Marketing Activities’, ‘Electronic word of mouth’, ‘Advertising’,
‘Celebrity Effect’ and ‘Interaction’ independent variables. It was
necessary to use the regression analysis to predict the
implications of ‘Perceived Usefulness. The obtained results
exhibit that Marketing Activities (β= 0.564) and e-WOM (β=
0.502) exert a positive relationship with perceived usefulness,
making H1a and H2a to be accepted. It was also found that
Advertisement (β= 0.226), celebrity effect (β= 0.151) and
interaction (β= 0.070) does not have a positive relationship with
perceived usefulness, making hypotheses H3a, H4a and H5a to
be rejected. The results also showed that R2 was 0.230, and the
F value was 18.1 at a significance level p<0.05. The results
displayed that the Durbin-Watson value was 2.220, and the
variance inflations factor was below 3, signifying no
multicollinearity problem.
The authors performed a regression analysis to test multiple
hypotheses implied in the study to understand consumers’
perceived trust, usefulness, and purchase intention. One concern
when performing regression is multicollinearity. Multi-collinearity is
defined as the extent to which the other variables on the analysis
can explain a variable. Multi-collinearity exists when two or more
independent variables are “highly” correlated with one another
(Zhang, 2009). A multicollinearity check was reached in the analysis
by investigating the correlation matrix and the Variance Inflation
Factor (VIF) values and tolerances. For standardised data, if the
value of tolerance is less than 0.2 or 0.1 and simultaneously, the
value of VIF 10 and above indicates harmful collinearity. The
Durbin–Watson statistic is a test statistic used to detect
autocorrelation in the residuals from a regression analysis. It has a
range from 0 to 4 with a midpoint of 2. It should be between 1.5
and 2.5 for independent observation (Zhang, 2009).
Table 3 - Regression Analysis
Independent Variables
Marketing Activities
e-WOM
Advertisement
Celebrity Effect
Interaction
β
0.564
0.502
0.226
0.151
0.070
Mediating Variable: Perceived Usefulness
t- value
p-value
Tolerance
4.457
0.000
0.159
3.862
0.000
0.150
1.613
0.108
0.129
1.522
0.129
0.259
0.53
0.574
0.166
Notes: Durbin-Watson = 2.220, R2 = 0.230, F = 18.1, p≤0.05
57
VIF
6.298
6.658
7.739
3.859
6.032
Hypothesis
H1a – Significant
H2a – Significant
H3a – Not Significant
H4a – Not Significant
H5a – Not Significant
Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
interaction (β= 0.118) does not have a positive relationship with
perceived usefulness, making hypotheses H3b, H4b, and H5b to
be rejected. The results also showed that R2 was 0.104, and F
value was 51.3 at a significance level p<0.05. The results
displayed that the Durbin-Watson value was 1.859, and the
variance inflations factor was below 3, signifying no
multicollinearity problem.
Second regression was analysed using ‘Perceived Trust’ as a
dependent variable and ‘Marketing Activities’, ‘Electronic word
of mouth’, ‘Advertising’, ‘Celebrity Effect’ and ‘Interaction’ as
the independent variables. The results presented in Table 4
exhibit that Marketing Activities (β= 0.515) and e-WOM (β=
0.471) exerts a positive relationship with perceived trust,
making H1b and H2b to be accepted. It was also found that
Advertisement (β= 0.221), celebrity effect (β= 0.135) and
Table 4 - Regression Analysis
Independent Variables
Marketing Activities
e-WOM
Advertisement
Celebrity Effect
Interaction
β
0.515
0.471
0.221
0.135
0.118
Mediating Variable: Perceived Trust
t- value
p-value
Tolerance
3.774
0.000
0.159
3.355
0.001
0.150
1.461
0.145
0.129
1.260
0.209
0.259
0.884
0.377
0.166
VIF
6.298
6.658
7.739
3.859
6.032
Hypothesis
H1b – Significant
H2b – Significant
H3b – Not Significant
H4b – Not Significant
H5b – Not Significant
Notes: Durbin-Watson =1.859, R2 = 0.104, F = 51.3, p≤0.05
Third regression was analysed using ‘Customer Purchase
Intention’ as a dependent variable while ‘Perceived Usefulness’
and ‘Perceived Trust’ were the independent variables. The
results in table 5 indicate that perceived usefulness (β= 0.993),
and perceived trust (β= 0.500) exerts a significant positive effect
on customer purchase intention, making H6 and H7 to be found
significant. The results also displayed that the Durbin-Watson
value was 1.415, and the variance inflations factor was also
below 3, thus showing no multicollinearity problem. R2 was
0.429 and F value at 115.024 at a significance level p<0.05.
Table 5 - Regression Analysis
Dependent Variable: Purchase Intention
β
t- value
p-value
Perceived Usefulness
Mediating Variables
0.993
14.516
0.000
Tolerance
0.452
VIF
2.212
H6 – Significant
Hypothesis
Perceived Trust
0.500
7.790
0.000
0.452
2.212
H7 – Significant
Notes: Durbin-Watson =1.415, R2 = 0.429, F = 115.024, p≤0.05
5. Discussion and Conclusion
According to the research findings, social media marketing
affects consumer purchase intention in Malaysian boutique
hotels through mediating variable perceived usefulness and
perceived trust. Generally, consumers’ perceptions will have a
significant impact on their purchase intentions. Therefore, for
boutique hotels, marketing professionals should effectively use
social media marketing approaches. This research has filled the
gaps in the study of Malaysian boutique hotel’s customer
purchase intention. Based on the research findings, this study
puts forward various suggestions for developing social media
marketing for boutique hotels, including different practical and
theoretical implications.
The rapid distribution of internet services has supported social
media’s rapid development. Many businesses have started
using social media platforms for marketing, which has resulted
in social media marketing strategies. In boutique hotels’ social
media marketing, different marketing methods have various
performances, and these performances mainly affect
consumers’ final purchase intentions through consumer
perception. Research has found that social media marketing
methods will have different levels of response to consumers’
perceived usefulness and perceived trust. The study’s
objectives were to examine the relationship between social
media marketing and customers’ purchase intention in
Malaysia’s boutique hotels. The study found that both the
perceived usefulness and perceived trust significantly impacts
customer purchase intention. In analysing social media
marketing methods on perceived usefulness, the authors found
that only marketing activities and e-WOM significantly impact
perceived trust and are positively correlated. This finding is
emphatically connected with previous authors’ (Chen, 2012;
Chen & Teng, 2013; Davis, 1989). Further, results show that
marketing activities and eWOM significantly impact the
perceived trust. This finding is emphatically connected with
previous authors’ experiences (Chung & Cho, 2017; Tien, Rivas,
& Liao, 2019).
Electronic WOM plays a significant role in shaping customers’
perceptions. Many consumers share their experiences on social
media networks. Consumers are not only the receivers of
information but also disseminators of information. The
formation of this intangible interaction between consumers will
affect their purchasing intentions. The e-WOM can be
presented in the form of text, pictures or videos. Texts, images,
and videos can increase social media users understanding of
boutique hotels and enhance their perceived usefulness.
Therefore, the maintenance of e-WOM is essential for boutique
hotels. Boutique hotel marketing professionals must check
consumer feedback on social media platforms and address
58
Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
consumers’ complaints, negative feedback, or suggestions
professionally. This kind of e-WOM maintenance is called “web
care” (van Noort & Willemsen, 2012). Previous studies proved
that “web care” can prevent negative results of e-WOM,
prevent negative e-WOM from evolving into a corporate crisis,
and reduce customer complaints (van Noort G., Willemsen,
Kerkhof, & Verhoeven, 2015). Regular “web care” is essential for
the hotel’s growth in the social media environment.
Responsible public image and good electronic word-of-mouth
can also enhance consumers’ perceived trust and improve
consumers’ purchasing intentions.
Theoretical Contributions
In the Web2.0 era, the fast spread of the Internet has enabled
social media’s rapid development. More and more businesses
use social media platforms for marketing, which has resulted in
social media marketing strategies. Based on this background,
this study surveyed different social media marketing methods.
This study analyses how different social media marketing
methods affect Malaysian boutique hotel customers’ purchase
intentions through perception factors. It was found that both
the perceived usefulness and perceived trust significantly
impacted customer purchase intention. Three of the five social
media marketing methods (electronic word of mouth, celebrity
effect, and interaction) in this study significantly impact the
perceived usefulness. Electronic word of mouth and celebrity
effects have a significant impact on perceived trust. According
to the findings, this study puts forward different development
suggestions for different social media marketing methods. The
research has filled the gaps in the research on Malaysian
boutique hotels customer purchase intention.
The marketing activities also have a significant impact on
perceived usefulness and perceived trust. Research on the
impact of marketing activities on businesses is tremendous.
Marketing activities allow companies to connect with
customers (Hoffman & Fodor, 2010; Kelly, Kerr, & Drennan,
2010). Lee (2017) divided the company’s social media activities
into communication, information provision, promotion, social
reactions, and daily life support. Marketing activities change the
one-way information transmission mode between the company
and customers into two-way direct communication. Although
marketing activities have no significant impact on perceived
usefulness and perceived trust in this study, the hotels cannot
ignore their influence on consumers’ purchase intention.
Boutique hotels should continuously improve social media
marketing content, keep up with the latest trends, and be
innovative. Boutique hotels should spend more attention to the
individualisation of content creation. Boutique hotels can
design different themes for different marketing activities and
always explore personalised ways to attract more customers
and achieve better marketing responses.
Managerial Contributions
From a more practical point of view, managers and heads of
marketing can use the results of the present study as the
starting point to efficiently use social media marketing
approaches. Social media is a valuable platform to receive
complaints, feedback and suggestions from the hotel’s
customers. Hence boutique hotel marketing professionals
should pay more attention to check consumer feedback on
social media platforms and respond quickly to feedback
received and address consumers’ complaints, their negative
feedback or suggestions in a professional way and assist
customers promptly to increase the chances that customer will
choose their hotel.
Findings confirm that advertising, celebrity effects, and social
interaction doesn’t impact on perceived usefulness and
perceived trust. Studies have shown that consumers’
perceptions of online advertising are becoming increasingly
hostile, and consumers perceive some formats as intrusive
(Saura et al., 2021; Chatterjee, 2008; Truong & Simmons, 2010).
Perception of aggressiveness may be classified as adverse
marketing outcomes associated with user anger and brand
avoidance but may also increase the likelihood of leaving the
online platform (Goodrich, Schiller, & Galletta, 2015).
Therefore, it is necessary to better understand consumers’
views on advertising in various social media formats to help
managers choose the most effective advertising form (Yin et al.,
2019). Many studies have proved that users can easily share
their views, ideas, and experiences with friends and peers on
social media platforms. This kind of information sharing may
affect other users’ purchase decisions (Xiang et al., 2016; Wang
& Yu, 2017). Boutique hotels should encourage consumers to
share their hotel experiences on social media platforms to
enhance their brand awareness through the right word of
mouth and positive reviews. To improve social media marketing
effectiveness, boutique hotels must reply to guests’ posts on
social media platforms on time, making consumers feel valued.
Limitations and Future Research
One of the most significant limitations of this research was not
considering all the original and the first modified version of the
TAM model. This research did not include the ‘attitude’ variable
of the TAM model as it was excluded based on the findings of
(Venkatesh & Davis, 1996). Future research may consider the
use of attitude variables and a more detailed analysis of various
social media marketing techniques. Future research may also
employ mixed-method techniques, which will enhance the
research’s reliability and generalizability. This research was
limited to the use of the technology acceptance model. A
similar study may be carried out in the future by employing the
Unified Theory of Acceptance and Use of Technology (UTAUT)
model, as this is the most recent model to study technology
acceptance behaviour. Future research can also investigate
customer participation in social media, post-purchase
behaviour like repurchase intention and loyalty. This study can
also help hospitality and tourism researchers to understand the
online tourist purchase intention. The present research could
be a reference when a company makes marketing strategic
decisions to improve its online purchase intention.
59
Garg, A., & Kumar, J. (2021). Tourism & Management Studies, 17(3), 51-62
International Journal of Advertising, 30(1), 47-75. doi:10.2501/IJA-30-1047-075
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