Trends in Internet

Hotel industry
Marketing
Proposed By: Group 1
Aman Jain 16PGPIM13
Nitesh Tripathi 16PGPIM08
Sunny Sharma 16PGPIM18
Gaurav Arora 16PGPIM16
Sambuddha Gupta 16PGPIM25

Contents
Background
Significance
Research Questions
Objectives
Research Method
Work Plan
References

Background
Previous studies identifies relationship
between the traditional marketing strategies
and enriching and encouraging the positively
customer purchasing decisions
Today, electronic marketing is considered the
best among other tools and platforms notably
for tourism and hotel industry
Focus on measuring the relationship between
Internet marketing strategies and customers'
purchasing decisions in hotels
To discuss the nature of the Internet marketing
in hotels, the budget, reliability, returns and
confidence from customers

Significance
To let hoteliers know where the best places are
to spend their online marketing dollars
Studying to what extent the Internet marketing
played a significant role in measuring the
marketing performance in hotels
Clarifying the importance of Internet marketing
tools and distribution channels in increasing the
customers positively expectations of the
products and services provided in hotels
Studying the customer purchasing decisions life
cycle in hotels regarding the Internet marketing

Research Questions
Study questions:
What is the relationship between the
Internet marketing and the hotel customers
purchasing decisions?

The main sub-questions as

follow:
To what extent that the Internet marketing
effects on hotel consumers purchasing
decisions?
To what extent that the hotels in
concentrated on the Internet marketing in
presenting the offered products and

Objectives
This study aims to:
Identify the Internet marketing strategies in
hotels
Identify the relationship between Internet
marketing and customers purchasing
decisions in hotel industry
Measure the extent to increase the hotel
traffics generated by Internet marketing as a
new tools and medium
Putting a suggested model on how
successfully using the Internet marketing in
transferring potential customers from
searchers and lookers to real purchasers or
bookers

Hypothesis
Ho - There is a no significant relationship between adopting Internet marketing strategies and customer
purchasing decisions in hotels
Ha - There is a positive relationship between adopting Internet marketing strategies and customer purchasing
decisions in hotels
Sub - Hypothesis
Ho 1- There is a no significant relationship between Online promotion with advertisement and customer
purchasing decisions in hotels
Ho 2- There is a no significant relationship between Hotel facilities, equipment, personnel and communication
material and customer purchasing decisions in hotels
Ho 3- There is a no significant relationship between security/privacy and customer purchasing decisions in
hotels
Ho 4 - There is a no significant relationship between contents on social media and blogs and customer
purchasing decisions in hotels
Ho 5 - There is a no significant relationship between customer relationship management and customer
purchasing decisions in hotels
Ho 6 - There is a no significant relationship between customers experiences and tips and customer purchasing
decisions in hotels
Ho 7 - There is a no significant relationship between gender and customer purchasing decisions of hotels
Ho 8 - There is a no significant relationship between Age and customer purchasing decisions of hotels
Ho 9 - There is a no significant relationship between occupation of customer in purchasing decisions of hotels
Ha - There is a positive relationship between above all factor in customer purchasing decisions in hotels

Research Methods
Quantitative method will be followed to analyze and interpret the data
collected about the hotel industry and related internet marketing literature
Data will be collected through both primary and secondary research methods
Participants Selection Customers who have booked the hotel online at least
once
Primary Method
Online Surveys - Design a questionnaire to collect the data related to
customer behavior while booking a hotel online
Secondary Method
Study the past data related to consumer behavior in using the internet
technology to book hotels online

Work Plan

Questions
Following questions were asked in the survey
Email address
Through which mode do you book a hotel ?
Do you follow hotel booking sites and its pages on social media ?
Do online reviews and ratings on websites affect your buying decisions?
What is your age ?
Gender ?
What is your occupation ?

Questions (Contd.)
Rate on LIKARD SCALE:
Online promotion with advertisement is very informative and influence my satisfaction
Hotel facilities, equipment, personnel and communication material that are available
on internet affect my purchase decision
Brand image plays an important role in booking hotel online
I always use the internet for hotel pricing comparability regarding value-based pricing
I use search engine result pages while searching for hotels
Hotel website design of reliability, customer service and security/privacy influence my
perceptions of online purchasing
I find travellers' generated contents on social media and blogs as the best information
sources for my internet purchasing decisions
I think payment sites are reliable for booking hotels online
Previous customers experiences and tips in Internet video formats affect my final hotel
purchasing decisions
Online hotel customer relationship management enhances my satisfaction
I find internet as best medium to find offers which encourage me for booking hotel

Secondary Research
Our team has done secondary research on
Identification of most Important Parameter that
affects the customer purchase decision.
Below are the Existing researches our team have
referred to:
Durukan and Bozaci, (2012)
Internet marketing definitions, 2009 by Hoffman
Brown and Muchira (2004)

Secondary Research
Apart from already existing research, our team has monitor
the Tripadvisor Ranking and Number of reviews of hotel:

Secondary Research
Apart from already existing research, our team has monitor
the Tripadvisor Ranking and Number of reviews of hotel:
Rank
1
2
3
4
5
6
7
8
9

Top 10 Hotels in DelhiNCR

The Lalit New Delhi
Shangri-La's Eros Hotel
The Park New Delhi
The Leela Palace New
Delhi
Le Meridien New Delhi
The Imperial Hotel
Hotel Ajanta
The Imperial Hotel
Hotel Ajanta

Number of
Reviews

Star
Rating

2839

2345

2341

2205

2105

2201

1698

1675

1525

Secondary Research
After studying the literature review(Internet marketing definitions, 2009 by
Hoffman) below are the most important parameters which Influence customer
purchase decision:

Online Promotion and Advertisement

Reviews and ratings
Hotel Facilities
Social Media Content and Blog
Hotel CRM
Offers
Price

Reliability Test
The computation of Cronbach alpha is based on the number of items on the survey
and the ratio of the average inter-item covariance to the average item variance
(Cronbach, 1951).
Reliability coefficient of 0.70 or higher is considered "acceptable" in most social
science research situations

General findings
Majority people use online travel sites to
book a hotel
A little above 50% of the total
respondents actually follow hotel
booking sites and pages on social media
Online reviews and ratings affect buying
decisions of respondents

Demographic analysis
Majority of our survey respondents
belong to the age group 20-30, followed
by 30-40 years of age
Out of all our respondents, 71% are
male and 29% are female
Most of our respondents are students

Psychographic analysis
Online promotion with advertisement is very informative
and influence my satisfaction

Psychographic analysis

ONLINE PROMOTION WITH ADVERTISEMENT IS VERY INFORMATIVE AND

INFLUENCE MY SATISFACTION

EFFECT OF
OCCUPATION

LIKELIHOOD RATIO IS LESS THAN

0.05 THEREFORE OCCUPATION
HAS SIGNIFICANT EFFECT ON THE
RESPONSES TO THIS QUESTION

EFFECT OF
GENDER

LIKELIHOOD RATIO IS GREATER

THAN 0.05 THEREFORE GENDER
DOES NOT HAVE SIGNIFICANT
EFFECT ON THE RESPONSES TO
THIS QUESTION

EFFECT OF AGE

LIKELIHOOD RATIO TAKEN AS 55.6 %

(>20%) CELLS HAVE EXPECTED COUNT
LESS THAN 5.
LIKELIHOOD RATIO IS GREATER THAN
0.05 THEREFORE AGE DOES NOT HAVE
EFFECT OF RESPONSES TO THIS
QUESTION

Psychographic analysis
Do you follow hotel booking sites and its pages on social
media ?

Psychographic analysis
DO YOU FOLLOW HOTEL BOOKING SITES AND ITS PAGES ON SOCIAL MEDIA ?
EFFECT OF
OCCUPATION

LIKELIHOOD RATIO IS EQUAL TO

0.05 WHICH MEANS SOCIAL MEDIA
FOLLOWING IS DEPENDENT ON
OCCUPATION

EFFECT OF
GENDER

LIKELIHOOD RATIO IS LESS THAN

0.05 WHICH MEANS SOCIAL MEDIA
FOLLOWING IS DEPENDENT ON
GENDER

EFFECT OF AGE

LIKELIHOOD RATIO IS LESS THAN

0.05 WHICH MEANS SOCIAL MEDIA
FOLLOWING IS DEPENDENT ON
AGE AS WELL.

References

Ab Hamid, N. (2008). Consumers behavior towards Internet technology and Internet marketing tools,
International journal of communications, Vol. 2, No. 3.

Alba, J., Lynch, J. G. J., Weitz, B., Janiszewski, C., Lutz, R., Sawyer, A. G., & Wood, S. (1997). Interactive
Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic
Marketplaces, Journal of Marketing.
Allen, E. and Fjermestad, J. (2001). E-commerce marketing strategies: a framework and case analysis,
Logistics Information Management, Vol. 14.
http://www.businessdictionary.com/definition/consumer-decisionmaking.html, accessed on 5-10-2016.
World Internet users and population statistics. Retrieved October 5, from
www.Internetworldstats.com/stats.htm