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Impact of Online Reviews On Hotel Service Research

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Impact of online reviews on Hotel Service Perceptions in Negros Occidental

Chapter 1

Introduction
This chapter includes background of the study, statement of the problem, hypothesis, theorical
framework of the study, conceptual framework, research design, significance of the study, scope
and limitations of the study.

Background of the study

In the hospitality industry, a hotel is an establishment that provides lodging accommodations,


typically on a short-term basis. Hotels offer a range of services and amenities to guests, including
rooms, restaurants, meeting spaces, and other facilities for travelers. Hotels are one of the most
convenient home for people especially for tourists. One of their concerns is the hotel services to
provide their needs and fulfill their satisfactions. As globalization arise, technology enters the
field of business industry. It helps customers and businesses to connect through easy accesses
ion, promotions and giving online reviews.
Online reviews are evaluations, comments, or feedback posted by individual on the internet
about products, services, or experiences. In hotels, online reviews is one of the façade on how a
certain hotel view, and given feedback by the customers. Online reviews is one of the sources of
a customers to know their services, amenities and how good is the place. They provide insights
into the quality, performance, and customer satisfaction associated with a particular product or
service, helping others make informed decisions based on the experiences of previous users.
Hotel services is one of the perceptions of customer that resembles the image of how the hotel
manage their services. By determining the customer satisfaction level on the quality of service,
the management may gain an understanding, whether its services meet their expectations, or not.

Statement of the problem

This study aims to determine the impact of online reviews on hotel service perception in
Negros Occidental. Particularly, the respondents included the staff, managers and owners of
hotels.
Specifically, it sought to answer the following:

1. What are the demographic profile of hotels in terms of:


a) location
b) ambiance
c) existence
d) monthly income
2. Effectiveness of online reviews
a) level of customer reviews in terms of the hotel’s performance.
b) the influence of online review of customer in terms of booking decisions.
c) enhance online visibility and increase profits.

3. Is there a significant relationship between the demographic profile of hotel and the
effectiveness of online reviews?

4. What are the problem faced by the respondents in dealing with negative online reviews in
hotel service?

Hypothesis
1. In the statement of the problem, the following hypothesis was advanced: There is no
significant relationship between the demographic profile of hotel and the effectiveness of
online reviews.
Theorical Framework of the Study

The influence of eWOM in social media on consumers’ purchase intentions: An extended


approach to information adoption (Ismail Erkan, Chris Evans, 2016). The concept of electronic
word-of-mouth (eWOM) was introduced in the mid-1990s, when the Internet was beginning to
change the ways, consumers interacted with each other. eWOM can be generally defined as
consumers’ information sharing and exchange about a product or company via the Internet,
social media, and mobile communication. eWOM has been recognized to lead to high
retransmission intentions because it is easy for consumers to generate conversations online. It
also allows information to be passed along globally and quickly. Because of the impact of
eWOM on consumer behavior, academic research on eWOM has been documented in disciplines
such as advertising, marketing, communication, management, and electronic commerce. Over
the past few decades, research has demonstrated the impact of eWOM on sales, product
evaluations, purchase decisions, customer satisfaction and loyalty, and consumer-brand
relationships. Research has also examined antecedents and motives of eWOM. Factors such as
consumers’ desire for social interaction, desire for economic incentives, concern for other
consumers, and the potential approval utility have been identified as important motives that drive
consumers’ eWOM behavior. In addition, individuals’ social relationship factors (e.g., social
capital), as well as message source and characteristics, are antecedents that lead to eWOM
behavior. In this article, eWOM is considered in many different formats, such as product review
sites, emails, discussion boards, user-generated content, social media, and online communities.
Electronic word-of-mouth can be conceptually defined as “any positive or negative statement
made by potential, actual, or former customers about a product or company, which is made
available to a multitude of people and institutions via the Internet” (Hennig-Thurau, et al. 2004,
39). Thus, eWOM occurs when consumers exchange information online, and it can be observed
in various forms, such as user-generated content, online product reviews, personal emails, and
social media posts. As digital media and new technologies continue to evolve, eWOM has been
identified as an important topic in advertising, communication, and marketing research. In
today’s cluttered world, eWOM is considered to be more influential than advertising and
marketing messages.

This theory is related on our study. Impact of online reviews on Hotel Service Perceptions in
Negros Occidental, which aims to determine the impact of online reviews on hotel service
perception in Negros Occidental.

Conceptual Framework

In today’s hyper-digital world, having an online presence is key to a business’s success. In


addition to websites, blogs, and social media profiles, having positive online reviews can play a
defining role in the success of your business.
Online review of products and services are strategic tools for e-commerce platforms, as they aid
in consumers’ pre purchase decisions. Past research studies indicate online reviews impact brand
image and consumer behavior. With several instances of fake reviews and review manipulations,
review credibility has a become a concern for consumers and service providers (K. Pooja &
Pallavi Upadhyaya, 2022). Online reviews are the main source of information of hotel to know
the feedback, and suggestions of its customer based on their experiences.

A survey conducted by Zhong-Gang et al. 2015 reveals that nearly 60% of consumers browse
online product reviews at least once a week and 93% of whom believe that these online reviews
help them to improve the accuracy of purchase decisions, reduce the risk of lost and affect the
shopping options. Research shows that 93% of consumers say online reviews will affect
shopping choices, indicating that most consumers have the habit of reading online reviews
regularly and rely on comments for their purchasing decisions. (Vimaladevi and Dhanabhakaym,
2012.)

Research Design

This quantitative research aims to investigate the impact of online reviews on hotel service
perceptions. A descriptive research strategy will be used in the study to methodically gather and
examine numerical data pertaining to this phenomenon. A structured phenomenon will be
developed, focusing on variables such as customer satisfaction, trust in virtual feedback and
impression of service quality. Stratified random selection approach will be employed to pick
participants from a variety of hotels. The survey will gather quantitative data, utilizing LIKERT
SCALE and CLOSE-ENDED questions to measure respondents' attitudes and perceptions.
Regression and correlation analysis are two statistical techniques that will be used to identify
connections between variables. By adopting a descriptive research design, the study seeks to
provide a comprehensive and detailed understanding of how perceptions are influenced by online
reviews.

Significance of the Study

This study is significant because it provide valuable insights into the dynamic
relationship between online reviews and hotel service perceptions. In an era where digital
platforms strongly influence consumer choices, understanding how online reviews shape
perceptions of hotel services is crucial for both the hospitality industry and consumers. It also
empowers the researchers themselves, who gain valuable expertise while contributing to the industry's
progress. This study is significant and beneficial to the following:
Customer: This study helps them to know if online reviews is reliable source of information
regarding the hotel service and performance by understanding the experiences of others and for
ensuring they choose accommodations that meet their expectations.

Hotel Owners: This study will give valuable insights about the impact of online reviews toward
their business and to become aware of the effect of it. This can lead them to make new strategy
to improve there services and quality to fulfill the satisfaction of customer and to increase profit.

Investor: By reading this research, financial institutions can gather information of the
background of hotel in terms of there services and accommodations It will help them to
determine the financial status on hotels in Negros Occidental.

Staff: Insights from reviews can highlight areas of improvement, allowing staff to enhance their
services and address customer concerns, ultimately improving job satisfaction.
Businesses: Understanding how online reviews influence perceptions enables businesses to
manage their online reputation, implement changes and enhance overall customer satisfaction
which can lead to increased bookings and revenue.

Future Researcher: It provides foundation for future studies, contributing to evolving


understanding of the dynamics between online reviews and service perceptions, fostering
continuous improvement in the hospitality industry.

Scope and Limitations


The research focuses on investigating the impact of online reviews on hotel service
perception and the factors influencing customer satisfaction based on the quality of service
rendered in Negros Occidental. The study aims to analyze the influence of online feedback on
guest’s view of hotel service, focusing on factors like overall satisfaction, cleanliness, customer
service, amenities, value for money and emphasizing factors that contribute to positive or
negative perceptions. To provide a more focused analysis of their effects, reviews—both
favorable and unfavorable from Negros Occidental area will be taken into consideration.
This research only focuses on the impact of online reviews on hotel service perceptions in
Negros Occidental. It doesn't make a direct connection to any other industry beyond the hotel
sector. The research will be conducted within 2023-2024, which could affect the capacity to
record long-term trends and modifications in the patterns of online reviews. The investigation
will primarily focus on reviews available on particular internet platforms relevant to the chosen
place, potentially overlooking reviews on other platforms or those left directly on hotel websites.

This research may serves as limitations to those who want to use this study as a basis for dealing
in online reviews and feedback and analyzing

Definition of Terms

Online Reviews – are the feedback of customer towards a products, services and experience posted in
the internet.

Hotel service - means renting of rooms, houses, or lodges for a fee, including all services offered at
the hotel, but not limited to business centre, massage shop, swimming pool, laundry, etc., whether
paid by guest or visitor to the hotel.
CHAPTER 2 RRL
2.1 ONLINE REVIEW
2.2 HOTEL MANAGEMENT
2.3 CUSTOMER PERCEPTION
2.4 ONLINE REVIEW TO HOTEL MANAGEMENT
2.5 ONLINE REVIEW

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