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Do	
  Websites	
  Such	
  as	
  TripAdvisor	
  Affect	
  
Consumer	
  Behaviour	
  with	
  the	
  use	
  of	
  
Word-­‐of-­‐Mouth?	
  	
  
By	
  Rodrigue	
  Eid	
  
	
  	
  	
  	
  	
  	
  




L o n d o n 	
   S o u t h 	
   B a n k 	
   – 	
   M a y 	
   2 0 1 2 	
   	
  
Authors	
  Deceleration	
  	
  
                                                          	
  
I	
   certify	
   that	
   all	
   quotes	
   and	
   passages	
   from	
   other	
   peoples	
   work	
   that	
   have	
   been	
  
used	
   for	
   the	
   purpose	
   of	
   this	
   dissertation	
   have	
   all	
   been	
   acknowledged	
   by	
  
referencing	
   both	
   the	
   author	
   and	
   their	
   work.	
   I	
   also	
   certify	
   that	
   I	
   am	
   the	
   sole	
  
author	
  of	
  this	
  dissertation	
  and	
  that	
  it	
  does	
  not	
  infringe	
  or	
  violate	
  any	
  copyright	
  
laws.	
   I	
   understand	
   that	
   plagiarism	
   will	
   be	
   considered	
   as	
   failure	
   towards	
   the	
  
dissertation	
  module	
  and	
  also	
  this	
  degree	
  as	
  a	
  whole.	
  	
  
	
  
Rodrigue	
  Eid	
  	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  
                                                                    	
  

       	
                                                         ii	
  
Dedication	
  &	
  Acknowledgments	
  	
  
                                                         	
  
I	
   would	
   like	
   to	
   dedicate	
   this	
   page	
   to	
   say	
   thank	
   you	
   to	
   all	
   the	
   people	
   who	
   have	
  
helped	
   me	
   in	
   overcoming	
   the	
   stress	
   and	
   anxiety	
   that	
   I	
   went	
   through	
   to	
   complete	
  
this	
   dissertation.	
   My	
   biggest	
   gratitude	
   goes	
   to	
   my	
   grandfather,	
   not	
   only	
   for	
  
encouraging	
  me	
  to	
  go	
  to	
  university	
  but	
  also	
  for	
  believing	
  in	
  me	
  and	
  always	
  being	
  
so	
  proud	
  of	
  me	
  for	
  whatever	
  I	
  have	
  done.	
  	
  
	
  
I	
   would	
   also	
   like	
   to	
   express	
   my	
   appreciation	
   to	
   my	
   supervisor	
   Anita	
   Peleg,	
   as	
  
without	
  your	
  guidance	
  and	
  perseverance	
  I	
  would	
  not	
  have	
  been	
  able	
  to	
  complete	
  
this	
  by	
  myself.	
  I	
  would	
  like	
  to	
  thank	
  her	
  for	
  all	
  the	
  advice,	
  recommendation	
  and	
  
amounts	
   of	
   times	
   she	
   told	
   me	
   to	
   redo	
   certain	
   sections	
   till	
   we	
   were	
   satisfied	
   with	
  
the	
  work	
  produced.	
  	
  
	
  
Thank	
  you	
  to	
  all	
  my	
  family	
  and	
  friends	
  who	
  also	
  believed	
  in	
  me	
  and	
  supported	
  
me	
   during	
   the	
   production	
   of	
   this	
   mammoth	
   research	
   project,	
   as	
   without	
   their	
  
constant	
   words	
   of	
   encouragement	
   and	
   their	
   help	
   I	
   would	
   not	
   of	
   been	
   able	
   to	
  
complete	
   this	
   project.	
   I	
   would	
   like	
   to	
   also	
   thank	
   my	
   mother	
   who	
   had	
   to	
   sit	
  
through	
   endless	
   hours	
   of	
   me	
   talking	
   at	
   her	
   about	
   my	
   dissertation.	
   I	
   would	
   also	
  
like	
   to	
   express	
   my	
   thankfulness	
   to	
   my	
   best	
   friend	
   Johanna	
   El-­‐Tohami	
   who	
   has	
  
also	
   helped	
   me	
   greatly	
   in	
   executing	
   this	
   dissertation	
   by	
   checking	
   my	
   grammar	
  
and	
  spelling.	
  	
  
	
  
This	
   dissertation	
   has	
   Definitely	
   proven	
   to	
   be	
   challenging;	
   however	
   it	
   has	
  
definitely	
  been	
  a	
  once	
  in	
  a	
  lifetime	
  experience.	
  Thank	
  you	
  again	
  to	
  everyone	
  who	
  
has	
   helped	
   in	
   making	
   this	
   project	
   come	
   to	
   life,	
   and	
   I	
   hope	
   that	
   this	
   piece	
   of	
  
research	
  will	
  help	
  people	
  in	
  the	
  future	
  with	
  similar	
  activities	
  they	
  carry	
  out.	
  	
  
	
  	
  
	
                                                                                                    “There	
  isn’t	
  a	
  person	
  
	
                                                                                             anywhere	
  who	
  is	
  not	
  capable	
  
                                                                                               of	
  doing	
  more	
  than	
  he	
  thinks	
  
	
  
                                                                                                               he	
  can.	
  “	
  	
  
	
                                                                                                                                     Tom	
  Ford	
  
	
                                                                                                                    	
  


           	
                                                         iii	
  
Abstract	
  	
  
Purpose:	
  	
  This	
  study	
  has	
  been	
  carried	
  out	
  to	
  answer	
  the	
  question	
  as	
  to	
  whether	
  
consumer	
   behaviour	
   is	
   affected	
   my	
   word	
   of	
   mouth	
   when	
   it	
   comes	
   to	
   websites	
  
such	
  as	
  TripAdvisor.	
  	
  
	
  
Methodology/Literature	
   review:	
   These	
   sections	
   of	
   the	
   study	
   provide	
   an	
  
extensive	
   read	
   surrounding	
   the	
   different	
   methods	
   of	
   research	
   used	
   to	
   obtain	
  
information	
  that	
  is	
  needed	
  to	
  execute	
  the	
  report.	
  Looking	
  at	
  published	
  literature,	
  
data,	
  and	
  information	
  from	
  academics,	
  government	
  and	
  others	
  surrounding	
  the	
  
topic	
  of	
  consumer	
  behaviour,	
  word	
  of	
  mouth	
  and	
  their	
  importance.	
  	
  
	
  
Findings:	
   This	
   section	
   of	
   the	
   study	
   is	
   where	
   all	
   information	
   is	
   drawn	
   together.	
  
The	
   major	
   findings	
   made	
   in	
   this	
   section	
   derived	
   from	
   my	
   sample	
   population	
  
taking	
  part	
  in	
  posting	
  reviews	
  and	
  partaking	
  in	
  word	
  of	
  mouth.	
  The	
  majority	
  of	
  
the	
  sample	
  surveyed	
  stated	
  that	
  they	
  did	
  post	
  positive	
  comments	
  online	
  however	
  
were	
   they	
   honest	
   about	
   the	
   information	
   they	
   shared.	
   Another	
   discovery	
   made	
  
had	
   to	
   do	
   with	
   the	
   relation	
   of	
   good	
   and	
   bad	
   comments.	
   It	
   was	
   apparent	
   that	
  
people	
  from	
  the	
  sample	
  were	
  more	
  likely	
  to	
  talk	
  about	
  bad	
  word	
  of	
  mouth	
  than	
  
good	
   word	
   of	
   mouth.	
   This	
   finding	
   can	
   also	
   be	
   related	
   to	
   some	
   of	
   the	
   literature	
  
that	
   was	
   found	
   from	
   people	
   such	
   as	
   Blythe	
   (2008)	
   and	
   Evans	
   et	
  al	
  (2006)	
   and	
  
Blackwell	
   et	
   al	
   (2006).	
   The	
   general	
   recommendation	
   that	
   highlighted	
   in	
   the	
  
findings	
  was	
  a	
  method	
  in	
  which	
  the	
  accuracy	
  of	
  reviews	
  can	
  be	
  checked	
  before	
  
they	
  went	
  live	
  on	
  the	
  website.	
  	
  
	
  
Recommendation	
  and	
  Conclusion:	
  In	
  this	
  section	
  of	
  the	
  report,	
  everything	
  in	
  this	
  
study	
  is	
  brought	
  together,	
  after	
  all	
  the	
  analysis	
  that	
  was	
  made	
  and	
  the	
  findings.	
  
Recommendations	
   were	
   also	
   made	
   in	
   order	
   to	
   help	
   answer	
   the	
   objectives	
   that	
  
were	
   set	
   out	
   in	
   chapter	
   1	
   in	
   order	
   to	
   help	
   websites	
   such	
   as	
   TripAdvisor	
   and	
  
others	
   keep	
   their	
   customer	
   happy.	
   The	
   conclusion	
   and	
   recommendations	
   were	
  
reached	
   in	
   several	
   ways,	
   firstly	
   through	
   the	
   secondary	
   findings	
   from	
   the	
  
literature	
  review	
  and	
  secondly	
  through	
  the	
  primary	
  findings	
  made	
  by	
  the	
  survey.	
  	
  
	
  
	
  


       	
                                                          iv	
  
Format	
  of	
  Study	
  	
  
                                                                      	
  
Chapter	
  1:	
  Introduction	
  	
  
This	
   is	
   where	
   the	
   background	
   of	
   the	
   study	
   will	
   be	
   outlined	
   and	
   any	
   details	
   about	
  
the	
  research	
  problem	
  will	
  be	
  defined.	
  This	
  section	
  will	
  also	
  include	
  the	
  reasons	
  
why	
  this	
  study	
  is	
  important	
  to	
  carry	
  out	
  and	
  also	
  the	
  objectives	
  that	
  it	
  is	
  aiming	
  
to	
  answer.	
  	
  
	
  
Chapter	
  2:	
  Methodology	
  	
  
This	
   section	
   of	
   the	
   report	
   will	
   look	
   at	
   the	
   various	
   methods	
   in	
   which	
   research	
   can	
  
be	
  carried	
  out	
  in	
  order	
  to	
  help	
  make	
  this	
  research	
  more	
  effective.	
  An	
  exploration	
  
of	
  both	
  primary	
  and	
  secondary	
  research	
  methods	
  will	
  be	
  looked	
  at	
  and	
  decided	
  
upon	
  for	
  the	
  purpose	
  of	
  this	
  study.	
  In	
  addition	
  to	
  this,	
  both	
  quantitative	
  methods	
  
and	
  qualitative	
  methods	
  will	
  be	
  explored	
  to	
  aid	
  this	
  research.	
  	
  This	
  section	
  will	
  
also	
  look	
  at	
  the	
  risk	
  of	
  bias	
  data	
  and	
  limitations	
  to	
  obtaining	
  data.	
  	
  
	
  
Chapter	
  3:	
  Literature	
  Review	
  	
  
This	
   section	
   will	
   look	
   at	
   various	
   theories	
   and	
   previous	
   texts	
   that	
   have	
   been	
  
published	
  surrounding	
  some	
  of	
  the	
  main	
  topics	
  that	
  will	
  affect	
  my	
  study.	
  In	
  order	
  
to	
  better	
  understand	
  what	
  this	
  research	
  and	
  to	
  ensure	
  that	
  the	
  right	
  path	
  is	
  taken	
  
it	
   was	
   necessary	
   to	
   look	
   at	
   various	
   texts	
   that	
   explained	
   what	
   consumer	
  
behaviour	
   is,	
   or	
   what	
   word	
   of	
   mouth	
   is,	
   how	
   these	
   variable	
   can	
   be	
   affected	
   by	
  
consumers	
   and	
   so	
   on.	
   It	
   is	
   for	
   this	
   reason	
   that	
   this	
   section	
   is	
   necessary,	
   as	
  
without	
   it	
   there	
   would	
   be	
   no	
   background	
   or	
   understanding	
   about	
   the	
   various	
  
topics	
  that	
  this	
  study	
  is	
  aiming	
  to	
  answer.	
  	
  
	
  
Chapter	
  4:	
  Research	
  Findings	
  	
  
In	
  this	
  section	
  of	
  the	
  study	
  all	
  data	
  collated	
  from	
  the	
  survey	
  would	
  be	
  analysed	
  
and	
  put	
  into	
  tables	
  and	
  pie	
  charts	
  in	
  order	
  to	
  help	
  the	
  reader	
  get	
  a	
  better	
  view	
  of	
  
the	
   findings.	
   This	
   section	
   is	
   all	
   about	
   getting	
   the	
   relevant	
   information	
   that	
   is	
  
required	
  that	
  will	
  help	
  in	
  finding	
  answers	
  to	
  the	
  objectives	
  that	
  have	
  been	
  set	
  out	
  
In	
   chapter	
   1.	
   This	
   section	
   is	
   also	
   important	
   as	
   it	
   helps	
   in	
   seeing	
   if	
   what	
   the	
  


       	
                                                            v	
  
previous	
   published	
   texts	
   actually	
   reflect	
   the	
   findings,	
   or	
   if	
   times	
   have	
   changed	
  
and	
  new	
  findings	
  and	
  theories	
  may	
  need	
  to	
  be	
  drawn	
  by	
  a	
  more	
  vast	
  extensive	
  
research.	
  	
  
	
  
Chapter	
  5:	
  Recommendation	
  and	
  Conclusion	
  	
  
This	
   section	
   of	
   the	
   report	
   is	
   all	
   about	
   what	
   conclusions	
   and	
   recommendations	
  
can	
   be	
   drawn	
   from	
   the	
   findings	
   in	
   the	
   study	
   that	
   will	
   help	
   both	
   answer	
   the	
  
objectives	
   set	
   out	
   in	
   chapter	
   1	
   but	
   also	
   hopefully	
   help	
   organisations	
   in	
   seeing	
  
what	
   this	
   sample	
   population	
   had	
   to	
   say	
   about	
   they	
   way	
   things	
   are	
   currently	
  
operating.	
  	
  
	
  
References	
  and	
  Bibliography	
  	
  
This	
   will	
   contain	
   a	
   list	
   of	
   books,	
   papers,	
   and	
   websites	
   that	
   were	
   used	
   and	
  
referred	
  to	
  for	
  the	
  purpose	
  of	
  this	
  research.	
  	
  
	
  
Appendices	
  	
  
This	
  will	
  contain	
  any	
  extra	
  information	
  that	
  was	
  also	
  referred	
  to	
  within	
  the	
  body	
  
of	
  the	
  study	
  that	
  was	
  either	
  too	
  large	
  or	
  not	
  important	
  to	
  include.	
  However,	
  these	
  
have	
  been	
  included	
  in	
  this	
  section	
  to	
  be	
  referred	
  to	
  if	
  needed.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  



       	
                                                         vi	
  
Contents	
  	
  
	
                                                                       Page	
  
Chapter	
  1	
  -­‐	
  Introduction	
                                 1	
  
1.	
  Background	
  	
                                                2-­‐3	
  
1.2.	
  Research	
  Problem	
  	
                                     3-­‐4	
  
1.2.1.	
  Research	
  Objectives	
                                    4	
  
1.3.	
  Importance	
  of	
  Study	
  	
                               4-­‐5	
  	
  
	
                                                                    	
  
Chapter	
  2	
  –	
  Methodology	
  	
                                6	
  
2.	
  Introduction	
                                                  7	
  
2.1.	
  Secondary	
  Research	
  	
                                   7	
  
2.2.	
  Primary	
  Research	
  	
                                     7-­‐9	
  
2.3.	
  The	
  Quantitative	
  Approach	
  	
                         9	
  
2.4.	
  Justification	
  of	
  Survey	
  Selection	
                  9-­‐10	
  
2.4.1.	
  Why	
  Other	
  Methods	
  Were	
  not	
  Chosen	
  	
      10-­‐11	
  
2.4.2.	
  Survey	
  Design	
  	
                                      11-­‐12	
  
2.4.3.	
  Pre-­‐test	
  Survey	
  	
                                  13	
  
2.5.	
  Sampling	
  	
                                                13-­‐14	
  
2.5.1.	
  Response	
  Rate	
  	
                                      14	
  
2.6.	
  Collection	
  Method	
  	
                                    14	
  
2.7.	
  Sampling	
  Error	
                                           14-­‐15	
  
	
                                                                    	
  
Chapter	
  3	
  –	
  Literature	
  Review	
  	
                       16	
  
3.	
  Consumer	
  Behaviour	
  	
                                     17	
  
3.1.1.	
  Consumer	
  Decision	
  Process	
  Model	
                  17-­‐18	
  
3.2.	
  Search	
  for	
  Information	
                                18-­‐19	
  
3.3.	
  Post	
  Consumption	
  Evaluation	
  	
                       20	
  
3.3.3.	
  Importance	
  of	
  Customer	
  Satisfaction	
              20-­‐21	
  
3.4.	
  Word	
  of	
  Mouth	
  	
                                     21-­‐22	
  
3.4.1.	
  Good	
  vs.	
  Bad	
                                        23	
  
3.4.1.1.	
  The	
  Minus	
  Levels	
  	
                              23	
  
3.4.1.2.	
  The	
  Plus	
  Levels	
  	
                               24	
  
3.4.1.3.	
  Level	
  Zero	
                                           25	
  
3.5.	
  Cognitive	
  Dissonance	
  	
                                 25-­‐26	
  
3.6.	
  Summary	
  	
                                                 26-­‐27	
  
	
                                                                    	
  
Chapter	
  4	
  –	
  Research	
  Findings	
  	
                       28	
  
4.	
  Introduction	
  	
                                              29	
  
4.1.	
  Microsoft	
  Excel	
  	
                                      29	
  
4.2.	
  Response	
  Rate	
                                            29	
  
4.3.	
  The	
  Respondents	
  	
                                      29-­‐30	
  
4.4.	
  Before	
  Purchasing	
  a	
  Holiday	
  	
                    30	
  


       	
                                                 vii	
  
4.5.	
  Recent	
  Holidays	
  	
                                    31-­‐32	
  
4.6.	
  TripAdvisor	
  	
                                           32-­‐33	
  
4.7.	
  Existing	
  Reviews	
  	
                                   33-­‐36	
  
4.8.	
  Word	
  of	
  Mouth	
  	
                                   36-­‐39	
  
4.9.	
  Recommendations	
  from	
  Respondents	
  	
                39	
  
	
                                                                  	
  
Chapter	
  5	
  –	
  Recommendations	
  and	
  Conclusion	
  	
     40	
  
5.	
  Introduction	
  	
                                            41	
  
5.1.	
  Conclusion	
  	
                                            41-­‐43	
  
5.2.	
  Recommendations	
  	
                                       44	
  
5.3.	
  Areas	
  for	
  Possible	
  Research	
  	
                  44-­‐45	
  
	
                                                                  	
  
Appendix	
  	
                                                      46-­‐74	
  
	
                                                                  	
  
Bibliography	
  	
                                                  75-­‐76	
  
	
  




       	
                                        viii	
  
 




                                                                                                                                        1	
  
                 	
                                                                                                   Chapter	
  	
  
                 	
                                                  	
  




Introduction	
  	
  
Chapter	
  1	
  	
  
Background	
  2;	
  Research	
  Problem	
  3;	
  Research	
  Objectives	
  4;	
  Importance	
  of	
  Study	
  4	
  




L o n d o n 	
   S o u t h 	
   B a n k 	
   – 	
   M a y 	
   2 0 1 2 	
   	
  




                 	
  
INTRODUCTION	
  	
   1	
  
	
  
	
  

1. Background	
  
	
  
                           The	
  Tourism	
  industry	
  has	
  seen	
  a	
  surge	
  in	
  the	
  amount	
  of	
  online	
  user-­‐
                           generated	
  content	
  with	
  regards	
  to	
  word	
  of	
  mouth	
  reviews.	
  TripAdvisor,	
  
                           which	
  is	
  owned	
  and	
  operated	
  by	
  Expedia	
  Inc.,	
  has	
  led	
  this	
  revolution.	
  With	
  
                           technology	
  improving	
  on	
  a	
  day-­‐to-­‐day	
  basis,	
  the	
  Internet	
  has	
  now	
  become	
  a	
  
                           central	
  hub	
  for	
  communicating	
  through	
  social	
  networking	
  sites,	
  travel	
  sites,	
  
                           and	
  blogs	
  enabling	
  customers	
  to	
  talk	
  freely	
  about	
  their	
  experiences	
  of	
  
                           holidays	
  they	
  have	
  been	
  on.	
  Smith	
  and	
  Taylor	
  (2002),	
  describe	
  word	
  of	
  
                           mouth	
  as	
  the	
  most	
  potent	
  and	
  robust	
  tool	
  in	
  advertising.	
  	
  Highlighting	
  that	
  
                           many	
  of	
  the	
  textbooks	
  share	
  the	
  opinion,	
  Smith	
  and	
  Taylor	
  (2002),	
  state	
  that	
  
                           no	
  matter	
  how	
  good	
  a	
  marketing	
  campaign	
  may	
  be,	
  or	
  how	
  much	
  of	
  an	
  expert	
  
                           seller	
  a	
  person	
  may	
  be,	
  they	
  alone	
  cannot	
  compete	
  with	
  the	
  power	
  of	
  a	
  
                           recommendation	
  made	
  by	
  a	
  colleague	
  or	
  friend.	
  	
  
	
  
                           In	
  the	
  fourth	
  quarter	
  of	
  2011	
  TripAdvisor	
  published	
  an	
  increase	
  its	
  revenue	
  
                           by	
  30%	
  to	
  $137.8	
  million,	
  making	
  its	
  full	
  years	
  revenue	
  $637.1	
  million1.	
  This	
  
                           was	
  a	
  31%	
  increase	
  from	
  20102.	
  TripAdvisor	
  has	
  approximately	
  20	
  million	
  
                           users	
  in	
  around	
  26	
  countries	
  including	
  China3.	
  With	
  access	
  to	
  over	
  40	
  million	
  
                           reviews	
  and	
  opinions,	
  TripAdvisor	
  services	
  are	
  available	
  free	
  of	
  charge	
  to	
  its	
  
                           users,	
  allowing	
  them	
  to	
  post	
  comments	
  and	
  compare	
  holidays	
  free	
  of	
  charge4,	
  
                           and	
  also	
  share	
  them	
  with	
  other	
  users	
  through	
  social	
  networking	
  sites,	
  such	
  as	
  
                           Facebook	
  or	
  Twitter.	
  TripAdvisor	
  makes	
  it	
  revenue	
  through	
  the	
  use	
  of	
  click-­‐
                           based	
  advertising,	
  display	
  based	
  advertising	
  and	
  also	
  subscriptions.	
  This	
  is	
  
                           where	
  service	
  providers	
  use	
  trip	
  advisor	
  as	
  a	
  distribution	
  channel	
  for	
  their	
  
                           service	
  or	
  product	
  for	
  publicity5.	
  	
  
	
  
                           With	
  over	
  53%	
  of	
  holidays	
  being	
  booked	
  online	
  in	
  2010,	
  according	
  to	
  a	
  
                           survey	
  done	
  by	
  Target	
  Group	
  Index,	
  more	
  people	
  are	
  now	
  taking	
  the	
  time	
  to	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
1	
  TripAdvisor	
  reports	
  fourth	
  quarter	
  and	
  full	
  year	
  2011	
  financial	
  results	
  	
  	
  
2	
  TripAdvisor	
  reports	
  fourth	
  quarter	
  and	
  full	
  year	
  2011	
  financial	
  results	
  	
  	
  
3	
  TripAdvisor	
  reports	
  fourth	
  quarter	
  and	
  full	
  year	
  2011	
  financial	
  results	
  	
  	
  
4	
  TripAdvisor	
  reports	
  fourth	
  quarter	
  and	
  full	
  year	
  2011	
  financial	
  results	
  	
  	
  
5	
  TripAdvisor	
  reports	
  fourth	
  quarter	
  and	
  full	
  year	
  2011	
  financial	
  results	
  	
                                                                                                                              	
  


                           	
                                                                                                                                                                                                      2	
  
INTRODUCTION	
  	
   1	
  
	
  
                           post	
  reviews	
  online	
  about	
  their	
  experiences.	
  According	
  to	
  a	
  Mintel	
  report	
  in	
  
                           July	
  2011,	
  around	
  24%	
  of	
  the	
  population	
  sampled	
  posted	
  positive	
  reviews	
  
                           about	
  their	
  holiday,	
  where	
  as	
  12%	
  posted	
  negative	
  reviews.	
  In	
  addition	
  to	
  
                           this	
  Mintel6,	
  also	
  brought	
  to	
  light	
  that	
  6%	
  of	
  those	
  people	
  sampled,	
  also	
  made	
  
                           positive	
  reviews	
  whilst	
  on	
  holiday	
  whilst	
  4%	
  posted	
  negative	
  reviews.	
  	
  
	
  
                           However,	
  recent	
  events	
  regarding	
  the	
  accuracy	
  of	
  these	
  word	
  of	
  mouth	
  
                           reviews	
  have	
  been	
  put	
  under	
  the	
  spotlight.	
  In	
  2010,	
  legal	
  action	
  was	
  taken	
  
                           against	
  TripAdvisor	
  after	
  it	
  had	
  published	
  ‘Dirtiest	
  hotel’	
  list,	
  where	
  the	
  
                           British	
  Hotel	
  Association	
  wanted	
  to	
  enforce	
  legislation	
  making	
  it	
  illegal	
  to	
  
                           post	
  unverified	
  posts7.	
  According	
  to	
  Mintel8,	
  a	
  website	
  launched	
  under	
  the	
  
                           name	
  TripAdvisor-­‐warning.com	
  posted	
  200	
  fake	
  reviews	
  in	
  the	
  months	
  
                           leading	
  to	
  the	
  2nd	
  of	
  June	
  2011	
  in	
  order	
  to	
  help	
  expose	
  the	
  infectiveness	
  with	
  
                           regards	
  to	
  accuracy	
  on	
  TripAdvisor.	
  	
  
	
  
                           Is	
  TripAdvisor	
  now	
  finding	
  its	
  purpose	
  being	
  doubted	
  and	
  challenged	
  with	
  
                           regards	
  to	
  the	
  accuracy	
  of	
  its	
  reviews?	
  More	
  than	
  48%	
  of	
  the	
  sample	
  people	
  
                           questioned,	
  by	
  Target	
  Group	
  Index,	
  found	
  that	
  they	
  read	
  travel	
  reviews	
  
                           generated	
  by	
  other	
  travellers.	
  However	
  are	
  any	
  of	
  these	
  reviews	
  to	
  be	
  
                           trusted?	
  Around	
  28%	
  of	
  the	
  sample	
  question	
  by	
  Target	
  Group	
  Index,	
  agreed	
  
                           that	
  they	
  trust	
  Internet	
  reviews	
  and	
  blogs	
  written	
  by	
  other	
  people	
  they	
  do	
  
                           not	
  know,	
  where	
  as	
  53%	
  of	
  the	
  sample	
  neither	
  agreed	
  nor	
  disagreed9.	
  	
  
	
  
1.2. Research	
  Problem	
  
                                                      With	
  broadband	
  penetrating	
  more	
  than	
  70%	
  of	
  households10,	
  the	
  Internet	
  
                                                      has	
  expanded	
  rapidly	
  over	
  the	
  past	
  ten	
  years;	
  this	
  in	
  turn	
  has	
  affected	
  the	
  
                                                      way	
  word	
  of	
  mouth	
  is	
  communicated.	
  It	
  is	
  also	
  evident	
  that	
  from	
  the	
  
                                                      background	
  (section	
  1)	
  that	
  the	
  trend	
  in	
  consumer	
  behaviour	
  is	
  shifting	
  
                                                      from	
  the	
  regular	
  “purchase	
  from	
  the	
  high	
  street	
  shop”	
  attitude	
  and	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
6	
  July	
  2011	
  
7	
  Mintel,	
  July	
  2011	
  	
  
8	
  July	
  2011	
  
9	
  July	
  2011	
  
10	
  Mintel	
  September	
  2011	
  	
  




                           	
                                                                                                                                                                                                      3	
  
INTRODUCTION	
  	
   1	
  
	
  
                                                      instead	
  making	
  most	
  of	
  their	
  purchases	
  online.	
  This	
  trend	
  is	
  what	
  makes	
  
                                                      website	
  like	
  TripAdvisor	
  successful.	
  However	
  is	
  TripAdvisor	
  a	
  victim	
  of	
  
                                                      its	
  own	
  success?	
  Exposure	
  to	
  the	
  Internet	
  has	
  increased	
  rapidly	
  in	
  the	
  
                                                      past	
  couple	
  of	
  years	
  with	
  it	
  having	
  the	
  ability	
  to	
  be	
  accessed	
  from	
  a	
  
                                                      number	
  of	
  platforms.	
  In	
  addition	
  to	
  home	
  broadband	
  penetrating	
  the	
  
                                                      70%	
  barrier,	
  people	
  now	
  have	
  access	
  to	
  the	
  Internet	
  through	
  their	
  
                                                      Smartphones,	
  TV	
  sets	
  and	
  even	
  hand	
  held	
  game	
  devices11.	
  	
  
	
  
                                                      By	
  focusing	
  on	
  the	
  tourism	
  industry,	
  and	
  in	
  particular	
  TripAdvisor,	
  the	
  
                                                      problem	
  that	
  this	
  research	
  is	
  trying	
  to	
  tackle	
  to	
  what	
  extent	
  do	
  people	
  
                                                      believe	
  and	
  trust	
  these	
  reviews,	
  how	
  accurate	
  these	
  reviews	
  are	
  
                                                      especially	
  when	
  it	
  comes	
  to	
  reviews	
  that	
  have	
  been	
  generated	
  by	
  other	
  
                                                      users.	
  	
  
	
  
1.2.1. Research	
  Objectives	
  	
  
                                                      Objective	
  1	
  –	
  How	
  does	
  word	
  of	
  mouth	
  affect	
  consumer	
  purchase	
  
                                                      behaviour	
  when	
  it	
  comes	
  to	
  websites	
  such	
  as	
  TripAdvisor	
  or	
  similar	
  
                                                      websites?	
  	
  	
  
	
  
                                                      Objective	
  2	
  -­‐	
  What	
  intentions	
  do	
  consumers	
  have	
  when	
  it	
  comes	
  to	
  using	
  
                                                      websites	
  such	
  as	
  TripAdvisor?	
  	
  
	
  
                                                      Objective	
  3	
  –	
  How	
  is	
  consumer-­‐purchasing	
  behaviour	
  affected	
  by	
  good	
  
                                                      and	
  bad	
  reviews	
  on	
  websites	
  such	
  as	
  TripAdvisor?	
  	
  
	
  
                                                      Objective	
  4	
  –	
  What	
  recommendations	
  can	
  make	
  websites	
  such	
  as	
  
                                                      TripAdvisor	
  make	
  their	
  reviews	
  more	
  accurate?	
  
                                                      	
  
1.3. Importance	
  of	
  Study	
  	
  
                                                      The	
  importance	
  of	
  this	
  study	
  is	
  to	
  help	
  get	
  a	
  better	
  understanding	
  on	
  how	
  
                                                      word	
  of	
  mouth	
  can	
  affect	
  consumer	
  behaviour	
  in	
  the	
  market.	
  The	
  study	
  is	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
11	
  Mintel,	
  September	
  2011	
  	
  




                           	
                                                                                                                                                                                                      4	
  
INTRODUCTION	
  	
   1	
  
	
  
              will	
  help	
  TripAdvisor	
  gaining	
  a	
  better	
  insight	
  into	
  consumer’s	
  perceptions	
  
              of	
  their	
  service.	
  This	
  study	
  will	
  provide	
  a	
  better	
  understanding	
  on	
  
              consumer	
  satisfaction	
  as	
  it	
  is	
  this	
  element	
  that	
  shapes	
  word	
  of	
  mouth	
  and	
  
              a	
  companies	
  reputation.	
  	
  
	
  
              This	
  study	
  hopes	
  to	
  give	
  companies	
  a	
  foundation	
  surrounding	
  the	
  effects	
  
              that	
  negative	
  word	
  of	
  mouth	
  directed	
  towards	
  a	
  company	
  through	
  the	
  
              findings	
  and	
  recommendations	
  the	
  study	
  is	
  seeking	
  to	
  make.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  




       	
                                                       5	
  
RESEARCH	
  METHODOLOGY	
  	
   6	
  
                 	
  


                                                                                                                                              2	
  
                 	
                                                                                                             Chapter	
  
                 	
                                                  	
  




Research	
  Methodology	
  	
  
Chapter	
  2	
  	
  
Introduction	
  7;	
  Secondary	
  Research	
  7;	
  Primary	
  Research	
  7;	
  The	
  Quantitative	
  Approach	
  9;	
  
Justification	
  of	
  Questionnaire	
  Selection	
  9;	
  Why	
  Other	
  Methods	
  Were	
  Not	
  Chosen	
  10;	
  
Questionnaire	
  Design	
  11;	
  Pre-­‐test	
  of	
  Questionnaires	
  13;	
  Sampling	
  13;	
  Response	
  Rate	
  14;	
  
Collection	
  Method	
  14;	
  Sampling	
  Error	
  14.	
  	
  




L o n d o n 	
   S o u t h 	
   B a n k 	
   – 	
   M a y 	
   2 0 1 2 	
   	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
	
  
2. Introduction	
  	
  
	
  
       In	
  this	
  section	
  of	
  the	
  report,	
  different	
  research	
  methods	
  will	
  be	
  explored	
  to	
  
       determine	
  which	
  will	
  be	
  effective	
  to	
  gather	
  the	
  relevant	
  information	
  that	
  will	
  
       help	
  make	
  recommendations.	
  Data	
  collected	
  for	
  this	
  study	
  needs	
  to	
  be	
  
       relevant,	
  accurate	
  and	
  reliable.	
  Both	
  primary	
  and	
  secondary	
  research	
  will	
  be	
  
       utilised	
  to	
  collate	
  the	
  information	
  required.	
  Quantitative	
  and	
  qualitative	
  
       methods	
  will	
  be	
  explored	
  in	
  order	
  to	
  determine	
  which	
  method/	
  methods	
  will	
  
       be	
  best	
  suited	
  to	
  collate	
  primary	
  data.	
  
	
  
2.1. Secondary	
  Research	
  
              Lewis	
  et	
  al	
  (2009)	
  states	
  that	
  secondary	
  research	
  can	
  be	
  both	
  raw	
  data	
  
              and	
  published	
  summaries.	
  Secondary	
  data	
  is	
  found	
  from	
  many	
  areas,	
  such	
  
              as	
  the	
  Internet,	
  government	
  reports,	
  published	
  journals	
  or	
  newspapers.	
  	
  
              Secondary	
  research	
  is	
  fundamental	
  as	
  it	
  provides	
  a	
  useful	
  source	
  where	
  
              answers	
  or	
  partial	
  answers	
  can	
  be	
  found	
  for	
  the	
  study	
  being	
  carried	
  out.	
  	
  
              	
  
              The	
  advantages	
  for	
  using	
  secondary	
  research	
  are,	
  firstly	
  resources	
  are	
  not	
  
              wasted,	
  as	
  it	
  is	
  very	
  time	
  effective	
  and	
  cost	
  effective,	
  making	
  data	
  very	
  
              easy	
  and	
  quick	
  to	
  find.	
  This	
  is	
  particularly	
  helpful	
  when	
  a	
  report	
  has	
  to	
  be	
  
              conducted	
  in	
  such	
  a	
  short	
  space	
  of	
  time.	
  It	
  also	
  provides	
  the	
  study	
  with	
  a	
  
              lot	
  of	
  comparative	
  and	
  contextual	
  information	
  that	
  will	
  help	
  reinforce	
  the	
  
              report.	
  	
  
              	
  
              However	
  secondary	
  research	
  may	
  not	
  be	
  relevant	
  to	
  the	
  study,	
  either	
  
              being	
  unsuitable	
  or	
  out	
  of	
  date,	
  also	
  depending	
  on	
  the	
  subject	
  some	
  of	
  the	
  
              information	
  may	
  be	
  hard	
  to	
  access.	
  	
  
              	
  
2.2. Primary	
  Research	
  	
  
              Primary	
  research	
  involves	
  a	
  process	
  where	
  raw	
  data	
  is	
  extracted	
  through	
  




       	
                                                           7	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
                   activities	
  such	
  as	
  surveys,	
  investigations,	
  and	
  even	
  interviews12.	
  Raw	
  data	
  
                   tends	
  to	
  be	
  data	
  that	
  does	
  not	
  previously	
  exist.	
  Some	
  of	
  the	
  examples	
  of	
  
                   primary	
  research	
  include:	
  	
  
                   	
  
                                                    • Observations	
  –	
  This	
  is	
  where	
  observations	
  are	
  made	
  that	
  are	
  
                                                          concerned	
  with	
  what	
  consumers	
  do,	
  it	
  is	
  done	
  through	
  
                                                          observing	
  behaviour	
  recording	
  descriptions,	
  analysing	
  and	
  
                                                          interpreting	
  consumer	
  behaviour13.	
  This	
  would	
  be	
  suitable	
  
                                                          for	
  this	
  study	
  as	
  it	
  involves	
  looking	
  at	
  the	
  way	
  consumers	
  
                                                          behave	
  online	
  with	
  regards	
  to	
  the	
  content	
  generated	
  on	
  
                                                          websites	
  such	
  as	
  TripAdvisor	
  	
  
                                                    • In-­‐depth,	
  group	
  and	
  semi-­‐structured	
  interviews	
  –	
  This	
  is	
  
                                                          where	
  a	
  discussion	
  is	
  held	
  by	
  two	
  or	
  more	
  people	
  to	
  help	
  
                                                          gather	
  information	
  about	
  the	
  study14.	
  Information	
  obtained	
  
                                                          is	
  generally	
  in	
  depth	
  and	
  reliable.	
  However,	
  this	
  will	
  not	
  be	
  
                                                          suitable	
  for	
  this	
  research	
  due	
  to	
  time	
  constraints	
  and	
  access	
  
                                                          to	
  people.	
  	
  
                                                    • Surveys	
  –	
  This	
  is	
  where	
  a	
  survey	
  is	
  drawn	
  up	
  for	
  the	
  
                                                          purpose	
  of	
  the	
  study	
  and	
  a	
  sample	
  is	
  picked	
  in	
  order	
  to	
  try	
  
                                                          and	
  get	
  the	
  best	
  answers	
  that	
  represent	
  the	
  population15.	
  
                                                          This	
  will	
  be	
  useful	
  for	
  this	
  study	
  because	
  a	
  lot	
  of	
  
                                                          information	
  can	
  be	
  obtained	
  through	
  a	
  survey.	
  It	
  is	
  also	
  
                                                          very	
  cost	
  effective	
  and	
  cheap	
  to	
  carry	
  out.	
  	
  

                   For	
  the	
  purpose	
  of	
  this	
  study	
  a	
  survey	
  will	
  be	
  conducted	
  in	
  order	
  to	
  help	
  
                   answer	
  objectives	
  set	
  out	
  in	
  section	
  1.2.1.	
  This	
  method	
  was	
  chosen	
  above	
  
                   others	
  because	
  a	
  survey	
  was	
  seen	
  as	
  the	
  best	
  way	
  to	
  collect	
  data	
  quickly	
  
                   in	
  a	
  standardised	
  way	
  making	
  the	
  findings	
  more	
  objective	
  than	
  other	
  
                   forms	
  of	
  research	
  such	
  as	
  interviews.	
  However	
  this	
  could	
  also	
  be	
  a	
  
                                                      disadvantage	
  that	
  data	
  is	
  standardised,	
  as	
  it	
  is	
  not	
  possible	
  to	
  explain	
  any	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
12	
  Lewis	
  et	
  al,	
  2009	
  	
  
13	
  Lewis	
  et	
  al,	
  2009	
  
14	
  Lewis	
  et	
  al,	
  2009	
  
15	
  Lewis	
  et	
  al,	
  2009	
           	
  


         	
                                                                                                    8	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
              points	
  that	
  participants	
  might	
  be	
  misinterpreted.	
  A	
  survey	
  will	
  help	
  in	
  
              answering	
  the	
  objectives	
  set	
  out	
  in	
  section	
  1.2.1.	
  As	
  the	
  questions	
  which	
  
              will	
  be	
  included	
  in	
  the	
  survey	
  will	
  be	
  asked	
  in	
  relation	
  to	
  the	
  objectives	
  
              and	
  worded	
  in	
  the	
  best	
  way	
  to	
  answer	
  the	
  objectives.	
  	
  
              	
  
2.3. The	
  Quantitative	
  Approach	
  	
  
              The	
  quantitative	
  approach	
  would	
  best	
  fit	
  this	
  report	
  and	
  the	
  survey	
  as	
  
              most	
  questions	
  due	
  to	
  the	
  survey	
  being	
  carried	
  out.	
  Most	
  information	
  
              collated	
  will	
  be	
  from	
  close-­‐ended	
  questions.	
  However,	
  some	
  data	
  will	
  also	
  
              be	
  collated	
  with	
  the	
  use	
  of	
  open-­‐ended	
  questions.	
  	
  
	
  
              For	
  the	
  purpose	
  of	
  this	
  survey	
  a	
  mixture	
  of	
  both	
  close	
  ended	
  and	
  open-­‐
              ended	
  questions	
  will	
  be	
  used	
  as	
  part	
  of	
  the	
  survey.	
  There	
  are	
  two	
  types	
  of	
  
              data	
  that	
  can	
  be	
  collected.	
  
	
  
                     •   Quantitative	
  data	
  is	
  drawn	
  from	
  close-­‐ended	
  questions,	
  normally	
  
                         numerical,	
  one-­‐word	
  answers	
  or	
  statements.	
  This	
  will	
  be	
  
                         beneficial,	
  as	
  it	
  will	
  help	
  this	
  study	
  in	
  finding	
  accurate	
  and	
  relevant	
  
                         information	
  that	
  can	
  be	
  quantified.	
  	
  
                     •   Qualitative	
  data	
  is	
  drawn	
  from	
  open	
  ended	
  questions,	
  normally	
  
                         where	
  the	
  respondent	
  is	
  asked	
  to	
  write	
  a	
  couple	
  of	
  lines	
  to	
  express	
  
                         their	
  opinion	
  about	
  a	
  statement	
  or	
  question.	
  The	
  benefits	
  for	
  using	
  
                         this	
  method	
  in	
  a	
  survey	
  will	
  help	
  reinforce	
  findings	
  by	
  providing	
  
                         the	
  study	
  with	
  some	
  statements	
  and	
  opinions	
  made	
  by	
  the	
  sample.	
  	
  
	
  
       By	
  incorporating	
  both	
  quantitative	
  and	
  qualitative	
  questions	
  into	
  the	
  survey	
  
       will	
  ensure	
  a	
  non-­‐biased	
  approach	
  is	
  being	
  taken,	
  as	
  people	
  will	
  be	
  allowed	
  to	
  
       voice	
  their	
  opinions	
  with	
  the	
  use	
  of	
  open-­‐ended	
  questions.	
  	
  
	
            	
  
2.4. Justification	
  of	
  Survey	
  Selection	
  	
  
              There	
  are	
  various	
  reasons	
  why	
  a	
  survey	
  was	
  selected	
  as	
  the	
  method	
  to	
  
              collate	
  and	
  obtain	
  data:	
  	
  



       	
                                                          9	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
                         1. Quickest	
  –	
  Due	
  to	
  time	
  constraints	
  this	
  was	
  deemed	
  the	
  most	
  
                              effective	
  and	
  quickest	
  way	
  to	
  obtain	
  the	
  information	
  required	
  to	
  
                              complete	
  this	
  study.	
  	
  
                         2. Resources	
  –	
  As	
  this	
  study	
  is	
  not	
  funded,	
  a	
  survey	
  was	
  seen	
  as	
  a	
  
                              good	
  method	
  because	
  it	
  will	
  not	
  cost	
  a	
  fortune	
  in	
  order	
  to	
  carry	
  out	
  
                              the	
  research.	
  
                         3. Sample	
  size	
  –	
  A	
  survey	
  was	
  also	
  deemed	
  the	
  best	
  way	
  to	
  collate	
  
                              data	
  from	
  the	
  sample	
  of	
  150	
  people	
  as	
  any	
  other	
  methods	
  would	
  
                              have	
  been	
  very	
  time	
  consuming	
  and	
  also	
  may	
  have	
  been	
  an	
  
                              overload	
  of	
  information.	
  	
  
	
  
2.4.1. Why	
  Other	
  Methods	
  Were	
  Not	
  Chosen	
  	
  
              There	
  are	
  several	
  reasons	
  why	
  other	
  methods	
  were	
  disregarded	
  from	
  this	
  
              study.	
  The	
  primary	
  reason	
  was	
  because	
  interviews	
  were	
  not	
  designed	
  to	
  
              cope	
  with	
  a	
  large	
  number	
  of	
  respondents,	
  as	
  this	
  would	
  have	
  been	
  very	
  
              time	
  consuming.	
  Furthermore,	
  the	
  information	
  collected	
  would	
  not	
  be	
  
              standardised	
  and	
  therefore	
  it	
  would	
  have	
  taken	
  a	
  great	
  deal	
  of	
  time	
  to	
  
              analyse	
  the	
  information.	
  Other	
  reasons	
  taken	
  into	
  consideration	
  had	
  to	
  do	
  
              with	
  the	
  interviewer	
  and	
  how	
  they	
  would	
  affect	
  the	
  consistency	
  of	
  the	
  
              interview	
  and	
  also	
  if	
  they	
  were	
  to	
  make	
  it	
  biased	
  in	
  the	
  form	
  they	
  asked	
  
              the	
  questions.	
  	
  
              	
  	
  
              Observations	
  were	
  not	
  considered	
  effective	
  for	
  this	
  study	
  because	
  it	
  
              requires	
  a	
  long	
  time	
  to	
  implement	
  and	
  apprehend	
  data.	
  In	
  addition	
  to	
  this	
  
              if	
  the	
  consumer	
  had	
  awareness	
  of	
  that	
  their	
  actions	
  are	
  being	
  observed	
  
              this	
  may	
  have	
  an	
  effect	
  on	
  findings	
  being	
  accurate,	
  as	
  the	
  consumer	
  may	
  
              acted	
  or	
  responded	
  in	
  an	
  infrequent	
  way.	
  	
  
              	
  
              In	
  addition	
  to	
  these	
  reasons,	
  the	
  study	
  also	
  felt	
  that	
  these	
  methods	
  were	
  
              not	
  as	
  appropriate	
  to	
  use,	
  as	
  they	
  would	
  not	
  be	
  the	
  most	
  effective	
  way	
  to	
  
              collate	
  data	
  to	
  help	
  answer	
  the	
  objectives	
  set	
  out	
  in	
  1.2.1.	
  The	
  risk	
  in	
  using	
  
              these	
  methods	
  may	
  have	
  meant	
  that	
  data	
  collated	
  would	
  not	
  be	
  as	
  vast	
  




       	
                                                               10	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
              and	
  strong	
  to	
  support	
  any	
  recommendations	
  that	
  will	
  be	
  made	
  in	
  the	
  end	
  
              of	
  this	
  study.	
  	
  
	
  
2.4.2. Survey	
  Design	
  	
  
              In	
  order	
  to	
  find	
  out	
  the	
  relevant	
  information	
  that	
  is	
  needed,	
  it	
  is	
  necessary	
  
              for	
  a	
  survey	
  to	
  be	
  implemented.	
  This	
  should	
  help	
  in	
  finding	
  out	
  consumer	
  
              attitudes	
  towards	
  websites	
  such	
  as	
  TripAdvisor,	
  their	
  thoughts	
  
              surrounding	
  such	
  websites,	
  what	
  their	
  intentions	
  are	
  when	
  it	
  comes	
  to	
  
              using	
  those	
  sites,	
  and	
  also	
  what	
  recommendations	
  they	
  can	
  suggest	
  to	
  
              improve	
  such	
  sites.	
  	
  
	
  
              To	
  help	
  construct	
  this	
  survey,	
  Bourque	
  and	
  Clarke	
  (1994)	
  have	
  
              highlighted	
  three	
  approaches	
  that	
  can	
  be	
  employed	
  to	
  design	
  the	
  survey:	
  	
  
                            1. Adopt	
  questions	
  
                            2. Adapt	
  questions	
  	
  
                            3. Develop	
  questions	
  	
  
              Furthermore,	
  the	
  design	
  of	
  the	
  questions	
  themselves	
  play	
  a	
  vital	
  role,	
  as	
  
              there	
  are	
  several	
  types	
  of	
  questions	
  that	
  can	
  be	
  used:	
  	
  
                            1. Closed	
  questions	
  –	
  DeVaus	
  (2002)	
  define	
  closed	
  questions	
  as	
  
                                   force-­‐choice	
  questions	
  providing	
  the	
  respondents	
  a	
  number	
  of	
  
                                   alternative	
  answers	
  from	
  which	
  they	
  can	
  choose.	
  	
  
                            2. Open	
  questions	
  –	
  these	
  types	
  of	
  questions	
  are	
  where	
  
                                   respondents	
  are	
  given	
  the	
  opportunity	
  to	
  answer	
  questions	
  in	
  
                                   their	
  own	
  way	
  (Fink,	
  2003).	
  	
  
                            3. List	
  questions	
  –	
  This	
  is	
  where	
  the	
  respondent	
  is	
  provided	
  with	
  a	
  
                                   list	
  of	
  options	
  from	
  which	
  they	
  can	
  choose	
  more	
  than	
  one	
  
                                   answer	
  (Lewis	
  et	
  al,	
  2009).	
  
                            4. Category	
  questions	
  –	
  Lewis	
  et	
  al	
  (2009)	
  states	
  that	
  category	
  
                                   questions	
  are	
  designed	
  so	
  that	
  each	
  respondent	
  can	
  be	
  grouped	
  
                                   into	
  one	
  category.	
  	
  
                            5. Rating	
  questions	
  –	
  these	
  questions	
  are	
  used	
  to	
  collect	
  opinion	
  
                                   data	
  (Lewis	
  et	
  al,	
  2009)	
  by	
  asking	
  the	
  respondents	
  whether	
  
                                   they	
  agree	
  or	
  disagree	
  with	
  a	
  statement.	
  	
  


       	
                                                             11	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
              There	
  are	
  other	
  elements	
  that	
  need	
  to	
  be	
  considered	
  when	
  designing	
  a	
  
              survey;	
  two	
  factors	
  are	
  the	
  order	
  and	
  flow	
  of	
  questions	
  and	
  the	
  layout.	
  
              These	
  factors	
  need	
  to	
  be	
  considered	
  because	
  it	
  is	
  vital	
  that	
  the	
  survey	
  is	
  
              user	
  friendly,	
  engaging	
  and	
  short	
  in	
  length.	
  	
  
              	
  
              The	
  structure	
  of	
  this	
  survey	
  was	
  pretty	
  simple.	
  The	
  main	
  considerations	
  
              that	
  were	
  implemented	
  into	
  it	
  were	
  to	
  make	
  it	
  short,	
  quick	
  and	
  easy	
  but	
  at	
  
              the	
  same	
  time	
  effective	
  to	
  extract	
  as	
  much	
  information	
  as	
  possible.	
  There	
  
              were	
  also	
  some	
  other	
  considerations	
  that	
  were	
  considered	
  such	
  as	
  not	
  
              asking	
  too	
  much	
  personal	
  information	
  surrounding	
  the	
  respondent.	
  The	
  
              first	
  section	
  of	
  the	
  survey	
  was	
  simply	
  to	
  know	
  what	
  the	
  respondents	
  age	
  
              group	
  they	
  fit	
  and	
  what	
  gender	
  they	
  were.	
  	
  
              	
  
              Questions	
  three	
  to	
  five	
  revolved	
  around	
  getting	
  a	
  better	
  understanding	
  
              about	
  the	
  respondents	
  travel	
  purchase	
  behaviour.	
  This	
  was	
  necessary,	
  as	
  
              it	
  would	
  help	
  get	
  a	
  better	
  understanding	
  about	
  the	
  various	
  websites	
  the	
  
              respondent	
  uses	
  to	
  purchase	
  or	
  plan	
  to	
  purchase	
  a	
  holiday.	
  	
  	
  
              	
  
              The	
  final	
  part	
  of	
  the	
  survey	
  was	
  designed	
  to	
  consider	
  the	
  respondents	
  
              attitude	
  towards	
  reviews,	
  their	
  opinions	
  surrounding	
  such	
  activities	
  and	
  
              also	
  to	
  see	
  if	
  they	
  took	
  part	
  in	
  such	
  activities	
  themselves.	
  Question	
  six	
  and	
  
              seven	
  also	
  helped	
  to	
  get	
  a	
  better	
  understanding	
  of	
  these	
  reviews	
  would	
  
              affect	
  any	
  future	
  purchases	
  to	
  be	
  made	
  by	
  the	
  consumer.	
  	
  
              	
  
              Question	
  eight	
  in	
  the	
  survey	
  asked	
  to	
  consideration	
  what	
  consumers	
  
              thought	
  that	
  websites,	
  such	
  as	
  TripAdvisor,	
  needed	
  to	
  change	
  or	
  improve	
  
              in	
  their	
  service.	
  This	
  question	
  was	
  necessary	
  because	
  it	
  will	
  help	
  the	
  study	
  
              in	
  reaching	
  recommendations	
  that	
  consumers	
  will	
  actually	
  respond	
  to,	
  
              after	
  all	
  this	
  is	
  a	
  service	
  which	
  caters	
  to	
  them.	
  	
  
              A	
  copy	
  of	
  the	
  questionnaire	
  used	
  for	
  this	
  study	
  can	
  be	
  found	
  under	
  
              appendix	
  A.	
  	
  
	
  
	
  


       	
                                                               12	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
2.4.3. Pre-­‐test	
  of	
  Surveys	
  	
  
              In	
  order	
  to	
  ensure	
  that	
  the	
  survey	
  was	
  fit	
  for	
  purpose,	
  and	
  complied	
  with	
  
              the	
  design	
  methods	
  outlined	
  in	
  sections	
  2.4.1.1.	
  pre-­‐test	
  surveys	
  were	
  
              distributed	
  to	
  five	
  individuals	
  to	
  complete.	
  This	
  helped	
  determine	
  the	
  
              effectiveness	
  of	
  the	
  survey	
  and	
  whether	
  any	
  changes	
  need	
  to	
  be	
  made	
  to	
  
              the	
  survey	
  before	
  it	
  went	
  live.	
  Pre-­‐tests	
  also	
  help	
  to	
  get	
  a	
  general	
  idea	
  of	
  
              what	
  findings	
  of	
  the	
  sample	
  is	
  going	
  to	
  be	
  like.	
  This	
  also	
  helps	
  in	
  seeing	
  
              what	
  the	
  respondents	
  also	
  thought	
  about	
  the	
  layout	
  of	
  the	
  survey	
  and	
  
              whether	
  there	
  needs	
  to	
  be	
  any	
  improvements	
  made	
  to	
  its	
  layout	
  to	
  make	
  
              it	
  more	
  user	
  friendly.	
  Changes	
  made	
  to	
  the	
  survey	
  can	
  be	
  found	
  in	
  
              appendix	
  E.	
  	
  
	
  
2.5. Sampling	
  	
  
              Collecting	
  responses	
  from	
  an	
  entire	
  population	
  can	
  be	
  very	
  difficult.	
  A	
  
              sample	
  population	
  provides	
  an	
  alternative	
  to	
  obtain	
  findings	
  from	
  a	
  
              representative	
  number	
  of	
  people.	
  There	
  are	
  several	
  advantages	
  
              highlighted	
  by	
  Lewis	
  et	
  al,	
  (2009)	
  to	
  using	
  sample	
  population:	
  	
  
                          1. More	
  practical	
  and	
  feasible	
  	
  
                          2. Budget	
  constraint	
  	
  
                          3. Time	
  constraints	
  	
  
              Lewis	
  et	
  al,	
  (2009)	
  states	
  that	
  there	
  are	
  two	
  types	
  of	
  sampling	
  techniques:	
  	
  
                          1. Probability	
  sampling	
  –	
  Mostly	
  used	
  for	
  survey-­‐based	
  research	
  
                                where	
  inferences	
  are	
  made	
  from	
  the	
  sample	
  about	
  a	
  population	
  
                                to	
  answer	
  questions	
  to	
  meet	
  the	
  objectives.	
  	
  
                          2. Non-­‐probability	
  sampling	
  –	
  This	
  provides	
  an	
  alternative	
  
                                technique	
  to	
  select	
  samples	
  based	
  on	
  subjective	
  judgements.	
  It	
  
                                is	
  mainly	
  used	
  in	
  cases	
  of	
  pilot	
  surveys.	
  	
  
              As	
  this	
  a	
  survey	
  based	
  activity,	
  probability	
  sampling	
  was	
  seen	
  to	
  best	
  fit	
  
              the	
  technique	
  that	
  should	
  be	
  used	
  for	
  the	
  purpose	
  of	
  collating	
  data.	
  The	
  
              sample	
  size	
  of	
  this	
  survey	
  will	
  consist	
  of	
  150	
  respondents.	
  Statistical	
  
              probability	
  may	
  be	
  difficult	
  to	
  implement	
  in	
  this	
  study	
  due	
  to	
  the	
  number	
  
              of	
  respondents	
  not	
  being	
  large	
  enough.	
  The	
  sample	
  will	
  include	
  both	
  
              female	
  and	
  male	
  respondents	
  from	
  various	
  age	
  groups.	
  The	
  main	
  target	
  


       	
                                                            13	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
              group	
  is	
  25-­‐55.	
  The	
  respondents	
  must	
  also	
  be	
  users	
  of	
  TripAdvisor	
  or	
  
              similar	
  websites.	
  	
  
	
  
2.5.1. Response	
  Rate	
  	
  
              The	
  main	
  disadvantage	
  of	
  using	
  a	
  survey	
  is	
  the	
  number	
  of	
  low	
  response	
  
              rates	
  that	
  they	
  receive.	
  This	
  study	
  aims	
  to	
  obtain	
  at	
  least	
  a	
  40%	
  response	
  
              rate.	
  In	
  order	
  to	
  encourage	
  a	
  higher	
  response	
  rate,	
  £20	
  Love2Shop	
  
              vouchers	
  will	
  be	
  awarded	
  to	
  three	
  of	
  the	
  respondents,	
  at	
  random,	
  for	
  
              taking	
  part	
  in	
  the	
  questionnaire.	
  	
  	
  
	
  
2.6. Collection	
  Method	
  
              Where:	
  Oxford	
  Street,	
  Bond	
  Street,	
  and	
  Tottenham	
  Court	
  Road	
  
              Dates:	
  January	
  9th,	
  2012	
  until	
  January	
  13th,	
  2012	
  	
  
              Time:	
  30	
  surveys	
  will	
  be	
  filled	
  out	
  on	
  each	
  day	
  of	
  the	
  week	
  from	
  the	
  
              hours	
  of	
  9	
  am	
  to	
  5	
  pm.	
  15	
  of	
  the	
  surveys	
  need	
  to	
  be	
  from	
  TripAdvisor	
  
              consumers	
  and	
  the	
  remainder	
  from	
  consumers	
  that	
  use	
  websites	
  similar	
  
              to	
  TripAdvisor	
  	
  
              Justification:	
  Due	
  to	
  the	
  amount	
  of	
  people	
  who	
  commute	
  around	
  these	
  
              locations	
  they	
  were	
  seen	
  best	
  fit	
  to	
  carry	
  out	
  this	
  research.	
  Also	
  there	
  is	
  a	
  
              mixed	
  diversity	
  of	
  people	
  that	
  will	
  be	
  exposed	
  to	
  this	
  survey	
  and	
  
              therefore	
  make	
  the	
  collection	
  of	
  data	
  more	
  simple	
  and	
  less	
  time	
  
              consuming.	
  	
  
	
  
2.7. Sampling	
  Error	
  	
  
              This	
  report	
  acknowledges	
  the	
  room	
  for	
  sampling	
  error	
  is	
  a	
  high	
  risk.	
  This	
  
              in	
  itself	
  has	
  a	
  drawback	
  for	
  not	
  being	
  representative	
  of	
  the	
  population.	
  
              Had	
  more	
  time	
  been	
  allocated	
  to	
  obtaining	
  data	
  the	
  study	
  would	
  have	
  
              sought	
  after	
  a	
  much	
  larger	
  sample	
  size	
  and	
  extended	
  to	
  getting	
  responses	
  
              online,	
  and	
  from	
  other	
  areas	
  of	
  the	
  United	
  Kingdom	
  and	
  not	
  just	
  the	
  
              capital.	
  	
  
              	
  




       	
                                                           14	
  
RESEARCH	
  METHODOLOGY	
  	
   2	
  
	
  
              This	
  study	
  accepts	
  that	
  the	
  results	
  obtained	
  may	
  not	
  be	
  entirely	
  valid,	
  
              consistent	
  and	
  reliable	
  as	
  they	
  may	
  be	
  deemed	
  as	
  biased,	
  as	
  other	
  
              respondents	
  from	
  the	
  Internet	
  or	
  other	
  areas	
  of	
  the	
  United	
  Kingdom	
  may	
  
              have	
  different	
  perceptions	
  of	
  TripAdvisor	
  and	
  similar	
  websites.	
  	
  




       	
                                                      15	
  
16	
   LITERATURE	
  REVIEW	
  	
  
                 	
  


                                                                                                                                                         3	
  
                 	
                                                                                                                        Chapter	
  
                 	
                                                  	
  




Literature	
  Review	
  	
  
Chapter	
  3	
  
Consumer	
  Behaviour	
  17;	
  Consumer	
  Decision	
  Process	
  Model	
  17;	
  Search	
  for	
  Information	
  18;	
  
Post-­‐Consumption	
  Evaluation	
  20;	
  Importance	
  of	
  Customer	
  Satisfaction	
  20;	
  Word-­‐Of-­‐Mouth	
  
21;	
  Good	
  vs.	
  Bad	
  Reviews	
  23;	
  The	
  Minus	
  Levels	
  23;	
  The	
  Plus	
  Levels	
  24;	
  Level	
  Zero	
  25;	
  
Cognitive	
  Dissonance	
  25;	
  Summary	
  26;	
  




L o n d o n 	
   S o u t h 	
   B a n k 	
   – 	
   M a y 	
   2 0 1 2 	
   	
  
LITERATURE	
  REVIEW	
  	
   3	
  
	
  
	
  
3. Consumer	
  Behaviour	
  
                           Consumer	
  behaviour	
  derives	
  from	
  activities	
  consumers	
  undertake	
  when	
  
                           they	
  obtain,	
  consume	
  and	
  dispose	
  a	
  product	
  or	
  service16.	
  From	
  the	
  definition	
  
                           Blackwell	
  et	
  al	
  (2006)	
  highlights	
  the	
  three	
  activities	
  that	
  form	
  the	
  consumer	
  
                           behaviour	
  process:	
  	
  
                                                      1. Obtaining	
  –	
  Blackwell	
  et	
  al	
  (2006)	
  defines	
  this	
  as	
  the	
  activities	
  that	
  
                                                                                  lead	
  up	
  to	
  the	
  purchase	
  of	
  a	
  product	
  or	
  service,	
  and	
  also	
  the	
  actual	
  
                                                                                  purchase	
  of	
  the	
  product.	
  	
  
                                                      2. Consuming	
  –	
  This	
  activity	
  revolves	
  around	
  how,	
  where,	
  when	
  and	
  
                                                                                  under	
  what	
  circumstances	
  the	
  product	
  or	
  service	
  obtained	
  was	
  
                                                                                  consumed17.	
  	
  	
  
                                                      3. Disposing	
  –	
  This	
  action	
  is	
  where	
  the	
  product	
  or	
  service	
  is	
  consumed	
  
                                                                                  and	
  the	
  consumer	
  wishes	
  to	
  dispose	
  of	
  the	
  product	
  or	
  service18.	
  
	
  
3.1.1. Consumer	
  Decision	
  Process	
  Model	
  	
  
                                                            Deriving	
  from	
  The	
  John	
  Dewey	
  model	
  (Dewey,	
  1910)	
  Blackwell	
  et	
  al	
  
                                                            (2006)	
  describes	
  the	
  decisions	
  making	
  process	
  as	
  a	
  road	
  map	
  of	
  
                                                            consumers	
  minds	
  that	
  marketers	
  can	
  use	
  to	
  help	
  them	
  guide	
  the	
  product	
  
                                                            mix.	
  The	
  purpose	
  of	
  this	
  model	
  (figure	
  1)	
  is	
  to	
  capture	
  the	
  activities	
  that	
  
                                                            occur	
  when	
  decisions	
  are	
  made,	
  showing	
  how	
  internal	
  and	
  external	
  
                                                            forces	
  affect	
  the	
  way	
  consumers	
  think,	
  evaluate,	
  and	
  act.	
  	
  
                                                            	
  
                                                            From	
  this	
  model	
  it	
  is	
  evident	
  that	
  consumers	
  go	
  through	
  seven	
  different	
  
                                                            stages.	
  The	
  stages	
  that	
  will	
  be	
  explored	
  further	
  for	
  the	
  purpose	
  of	
  this	
  
                                                            study	
  are	
  the	
  need	
  to	
  search	
  for	
  information	
  and	
  also	
  post	
  consumption	
  
                                                            evaluation.	
  In	
  order	
  to	
  better	
  understand	
  why	
  consumers	
  use	
  
                                                            TripAdvisor	
  and	
  similar	
  websites	
  it	
  is	
  important	
  to	
  explore	
  why	
  there	
  is	
  a	
  
                                                            need	
  to	
  search	
  for	
  information	
  before	
  making	
  purchases	
  and	
  also	
  why	
  
                                                            people	
  take	
  part	
  in	
  post	
  consumption	
  evaluations.	
  	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
16	
  	
  Blackwell	
  et	
  al,	
  (2006)	
  
17	
  Blackwell	
  et	
  al,	
  (2006)	
  
18         	
  Blackwell	
  et	
  al,	
  (2006)	
  


                           	
                                                                                                                                                                                                      17	
  
LITERATURE	
  REVIEW	
  	
   3	
  
	
  
                     Figure	
  1:	
  Decision	
  Making	
  Process	
  	
  




                                                                         Pre-­‐
                                                                      Purchase,	
                                  Post-­‐
                           Need	
             Search	
  for	
                                                    Purchase	
  
                        Recognition	
        information	
           evalation	
  of	
      Purchase	
  	
                         Divestment	
  	
  
                                                                                                                evaluation	
  
                                                                     alternatives	
  	
  




                                                                                               Adapted	
  from	
  Blythe,	
  2008	
  
                                                                                                                                       	
  
3.2. Search	
  for	
  Information	
  	
  
              This	
  activity	
  takes	
  place	
  before	
  making	
  a	
  purchase,	
  and	
  where	
  websites	
  
              such	
  as	
  TripAdvisor	
  play	
  a	
  huge	
  role	
  in	
  making	
  purchases.	
  Both	
  Blythe	
  
              (2008)	
  and	
  Blackwell	
  et	
  al	
  (2006)	
  agree	
  that	
  this	
  activity	
  draws	
  
              information	
  from	
  internal	
  and	
  external	
  sources	
  (figure	
  2).	
  Internal	
  
              sources	
  tend	
  to	
  derive	
  from	
  the	
  consumers	
  memory,	
  having	
  purchased	
  
              that	
  item	
  previously	
  or	
  from	
  previous	
  experience.	
  However	
  if	
  this	
  is	
  not	
  
              the	
  case,	
  then	
  internal	
  sources	
  may	
  not	
  be	
  sufficient,	
  which	
  then	
  makes	
  
              way	
  for	
  secondary	
  sources.	
  	
  
              	
  
              Blythe	
  (2008)	
  and	
  Blackwell	
  et	
  al	
  (2006)	
  agree	
  that	
  information	
  sought	
  
              by	
  consumers	
  can	
  either	
  be	
  marketer-­‐dominated	
  or	
  non-­‐marketer	
  
              dominated:	
  	
  
                              1. Marketer	
  domination	
  –	
  Blythe	
  (2008)	
  describes	
  this	
  as	
  
                                   information	
  that	
  is	
  shared	
  via	
  advertising,	
  brochures,	
  websites,	
  
                                   sales	
  people	
  and	
  so	
  forth.	
  	
  
                              2. Non-­‐marketer	
  domination	
  –	
  This	
  is	
  information	
  is	
  shared	
  via	
  
                                   friends,	
  family,	
  opinion	
  leader	
  and	
  so	
  forth	
  (Blythe,	
  2008).	
  This	
  


       	
                                                               18	
  
LITERATURE	
  REVIEW	
  	
   3	
  
          	
  
                                         type	
  of	
  information	
  is	
  shared	
  through	
  word	
  of	
  mouth	
  and	
  word	
  
                                         of	
  mouse	
  methods.	
  	
  
                        	
  
                        Pre-­‐purchase	
  activities	
  such	
  as	
  internal	
  and	
  external	
  research	
  are	
  
                        important	
  for	
  consumers	
  as	
  people	
  often	
  discuss	
  their	
  experiences	
  when	
  
                        purchasing,	
  using	
  and	
  disposing	
  a	
  product.	
  	
  These	
  discussions	
  are	
  vital	
  to	
  
                        TripAdvisor	
  and	
  similar	
  websites	
  as	
  they	
  are	
  the	
  spine	
  of	
  the	
  
                        organisation.	
  	
  
                        	
  
                        Blythe	
  (2008)	
  and	
  Blackwell	
  et	
  al	
  (2006)	
  state	
  that	
  non-­‐marketer	
  
                        dominated	
  information	
  is	
  more	
  powerful	
  that	
  market	
  dominated	
  
                        communications	
  as	
  word	
  of	
  mouth	
  interactions	
  it	
  involves	
  discussion	
  
                        between	
  a	
  number	
  of	
  parties,	
  allowing	
  a	
  two	
  way	
  communication.	
  There	
  
                        is	
  also	
  a	
  belief	
  that	
  sources	
  such	
  as	
  family	
  and	
  friends	
  are	
  more	
  trusted	
  
                        because	
  they	
  have	
  a	
  non-­‐profit	
  motive.	
  	
  
                        	
  
                        Figure	
  2:	
  Information	
  Searching	
  


                                                            Internal	
  search	
  	
  


Information	
  
 gap	
  /	
  new	
                                                                                                                   Information	
  
  purchase	
                                                                                                                             gaps	
  
  problem	
                                                                                                                          reduced	
  but	
  
                                                                            Marketer	
  generated	
  	
                                   not	
  
                                                                                                                                      eliminated	
  	
  
                                    External	
  search	
  

                                                                                 Non-­‐marketer	
  
                        	
                                                        generated	
  	
  
                        	
  
                                                                                                    Adapted	
  from	
  Blythe,	
  2008	
  
                                                                                                                                               	
  
                        	
  
                        	
  
                        	
  


                 	
                                                         19	
  
LITERATURE	
  REVIEW	
  	
   3	
  
	
  
3.3. Post-­‐Consumption	
  Evaluation	
  	
  
              As	
  seen	
  from	
  the	
  Consumer	
  Decision	
  Process	
  Model	
  (figure	
  1)	
  a	
  
              fundamental	
  part	
  of	
  our	
  purchasing	
  process	
  involves	
  the	
  need	
  to	
  search	
  
              for	
  information	
  about	
  products	
  and	
  services.	
  This	
  information	
  has	
  to	
  
              originate	
  from	
  somewhere,	
  thus	
  making	
  way	
  for	
  post-­‐consumption	
  
              evaluation.	
  This	
  step	
  of	
  the	
  model	
  takes	
  place	
  after	
  the	
  consumer	
  has	
  
              purchased	
  and	
  consumed	
  the	
  product	
  or	
  service.	
  Blackwell	
  et	
  al	
  (2006)	
  
              states	
  that	
  depending	
  on	
  consumption	
  experience	
  the	
  consumer	
  will	
  
              either	
  change	
  their	
  attitude	
  towards	
  the	
  object	
  or	
  reinforce	
  it.	
  	
  
	
  
              These	
  attitudes,	
  as	
  discussed	
  by	
  Blythe	
  (2008)	
  and	
  Blackwell	
  et	
  al	
  (2006)	
  
              tend	
  to	
  revolve	
  around	
  the	
  satisfaction	
  or	
  dissatisfaction	
  of	
  the	
  product	
  or	
  
              service	
  that	
  the	
  consumer	
  has	
  experienced.	
  Therefore,	
  there	
  is	
  a	
  great	
  
              importance	
  that	
  organisations	
  pay	
  great	
  attention	
  to	
  ensuring	
  the	
  
              consumers	
  are	
  always	
  satisfied.	
  If	
  organisations	
  fail	
  to	
  comply	
  with	
  this	
  
              then	
  the	
  damage	
  can	
  be	
  severe	
  for	
  the	
  organisations	
  image.	
  	
  
	
  
3.3.1. Importance	
  of	
  Customer	
  Satisfaction	
  	
  
              There	
  is	
  now	
  a	
  great	
  importance	
  for	
  companies	
  to	
  be	
  concerned	
  about	
  
              customer	
  satisfaction.	
  Why	
  this	
  great	
  importance?	
  The	
  most	
  obvious	
  
              reason	
  as	
  highlighted	
  by	
  Blackwell	
  et	
  al	
  (2006)	
  is	
  the	
  need	
  for	
  repeat	
  
              business.	
  However	
  there	
  are	
  also	
  other	
  important	
  points	
  that	
  Blythe	
  
              (2008),	
  Blackwell	
  et	
  al	
  (2006)	
  and	
  Evans	
  et	
  al	
  (2006)	
  need	
  to	
  be	
  
              considered:	
  	
  
                         1. Influence	
  –	
  Not	
  only	
  is	
  the	
  individual’s	
  satisfaction	
  and	
  repeat	
  
                               business	
  important	
  but	
  also	
  it	
  is	
  the	
  individual’s	
  influence	
  over	
  
                               other	
  people	
  purchasing	
  habits.	
  In	
  other	
  words	
  if	
  a	
  consumer	
  
                               has	
  a	
  bad	
  experience	
  not	
  only	
  is	
  he	
  unlikely	
  to	
  go	
  purchase	
  or	
  
                               use	
  that	
  organisations	
  service	
  again	
  but	
  he	
  will	
  also	
  deter	
  other	
  
                               people	
  within	
  his	
  friends,	
  family	
  and	
  peers	
  circle	
  from	
  
                               purchasing	
  from	
  that	
  organisation	
  as	
  well.	
  This	
  in	
  turn	
  can	
  be	
  
                               very	
  costly	
  for	
  an	
  organisation,	
  as	
  Blackwell	
  (2006)	
  states	
  that	
  



       	
                                                         20	
  
LITERATURE	
  REVIEW	
  	
   3	
  
	
  
                                    it	
  costs	
  an	
  organisation	
  twenty	
  times	
  more	
  to	
  attract	
  new	
  
                                    customers	
  than	
  to	
  retain	
  loyal	
  customers.	
  	
  	
  
                            2. Satisfaction	
  shapes	
  Word-­‐of-­‐Mouth	
  and	
  Word-­‐of-­‐Mouse	
  –	
  This	
  is	
  
                                    by	
  far	
  the	
  most	
  important	
  factor	
  as	
  not	
  only	
  does	
  satisfaction	
  
                                    shape	
  future	
  purchase	
  but	
  also	
  the	
  way	
  it	
  controls	
  the	
  way	
  
                                    people	
  communicate	
  about	
  the	
  product	
  and	
  service.	
  As	
  stated	
  
                                    in	
  the	
  first	
  point	
  a	
  consumer	
  with	
  a	
  bad	
  experience	
  will	
  be	
  
                                    more	
  likely	
  to	
  discourage	
  friends,	
  family	
  and	
  peers	
  from	
  
                                    purchasing	
  from	
  an	
  organisation	
  if	
  they	
  have	
  a	
  bad	
  experience.	
  
                                    Blackwell	
  et	
  al	
  (2006)	
  also	
  highlights	
  that	
  consumers	
  are	
  more	
  
                                    likely	
  to	
  discuss	
  bad	
  experiences	
  and	
  go	
  to	
  great	
  lengths	
  to	
  do	
  
                                    so	
  than	
  sharing	
  positive	
  experiences.	
  	
  
                            3. Complaints	
  and	
  lawsuits	
  –	
  In	
  addition	
  to	
  deterring	
  customers	
  
                                    and	
  stirring	
  bad	
  word	
  of	
  mouth,	
  satisfaction	
  can	
  also	
  lead	
  an	
  
                                    organisation	
  to	
  be	
  faced	
  with	
  unwanted	
  complaints	
  and	
  
                                    lawsuits.	
  Not	
  only	
  is	
  this	
  damaging	
  to	
  an	
  organisation	
  but	
  also	
  
                                    it	
  brings	
  some	
  unwanted	
  attention	
  to	
  the	
  company	
  causing	
  
                                    even	
  more	
  negative	
  word	
  of	
  mouth.	
  However	
  this	
  time	
  it	
  would	
  
                                    be	
  more	
  public	
  and	
  more	
  people	
  will	
  hear	
  and	
  talk	
  about	
  it.	
  	
  
	
  
3.4. Word-­‐of-­‐Mouth	
  	
  
              Blythe	
  (2008),	
  Fill	
  (2011),	
  and	
  Silverman	
  (2001)	
  all	
  agree	
  that	
  word	
  of	
  
              mouth	
  is	
  the	
  most	
  powerful	
  force	
  in	
  the	
  marketplace.	
  To	
  reinforce	
  this	
  
              statement,	
  Silverman	
  (2001)	
  includes	
  a	
  quote	
  from	
  Dr.	
  Paddi	
  Lund	
  where	
  
              he	
  says:	
  	
  
	
  
                  “Even	
  those	
  deaf	
  to	
  the	
  bragging	
  cries	
  of	
  the	
  marketplace	
  will	
  listen	
  to	
  a	
  
                                                                    friend”	
  
	
  
              Silverman	
  (2001)	
  defines	
  word	
  of	
  mouth	
  as	
  the	
  communication	
  about	
  
              products	
  and	
  services	
  between	
  independent	
  consumers	
  who	
  have	
  
              nothing	
  to	
  do	
  with	
  the	
  organisation.	
  This	
  communication	
  also	
  takes	
  place	
  




       	
                                                               21	
  
LITERATURE	
  REVIEW	
  	
   3	
  
	
  
                                                      in	
  a	
  medium	
  that	
  is	
  independent	
  from	
  the	
  organisations,	
  either	
  as	
  one-­‐
                                                      way	
  testimonials	
  or	
  conversations.	
  	
  
	
  
                                                      The	
  development	
  of	
  the	
  Internet,	
  as	
  discussed	
  in	
  section	
  1	
  of	
  this	
  study,	
  
                                                      has	
  meant	
  that	
  word	
  of	
  mouse	
  communication	
  is	
  now	
  being	
  used	
  as	
  a	
  
                                                      platform	
  for	
  consumers	
  to	
  communicate	
  about	
  their	
  experiences.	
  Fill	
  
                                                      (2011)	
  has	
  also	
  highlighted	
  that	
  this	
  will	
  be	
  the	
  future	
  of	
  word	
  of	
  mouth.	
  
                                                      Mintel	
  (2011)	
  has	
  also	
  state	
  that	
  more	
  people	
  are	
  now	
  finding	
  themselves	
  
                                                      within	
  easy	
  access	
  to	
  the	
  Internet.	
  	
  
	
  
                                                      Both	
  Blythe	
  (2008)	
  and	
  Silverman	
  (2001)	
  state	
  that	
  word	
  of	
  mouth	
  is	
  a	
  
                                                      powerful	
  persuader,	
  as	
  it	
  is	
  not	
  canned	
  like	
  most	
  company’s	
  
                                                      communications.	
  They	
  both	
  also	
  believe	
  that	
  it	
  is	
  the	
  most	
  honest	
  
                                                      medium	
  as	
  it	
  is	
  customer	
  driven	
  and	
  there	
  is	
  no	
  beneficial	
  gain	
  when	
  
                                                      communicating	
  their	
  experiences.	
  The	
  greatest	
  advantage	
  to	
  using	
  word	
  
                                                      of	
  mouth	
  is	
  that	
  it	
  feeds	
  on	
  itself.	
  This	
  opinion	
  is	
  also	
  shared	
  with	
  Blythe	
  
                                                      (2008),	
  Fill	
  (2011)	
  and	
  Silverman	
  (2001).	
  For	
  example	
  if	
  ten	
  consumers	
  
                                                      had	
  ten	
  experiences,	
  in	
  total	
  they	
  would	
  have	
  had	
  a	
  hundred	
  experiences	
  
                                                      and	
  so	
  on.	
  This	
  is	
  very	
  effective	
  as	
  it	
  helps	
  create	
  a	
  dissonance	
  effect	
  
                                                      because	
  “everybody	
  is	
  talking	
  about	
  it”,	
  which	
  in	
  turn	
  helps	
  provide	
  
                                                      additional	
  confirmation	
  to	
  a	
  consumer	
  looking	
  to	
  purchase	
  a	
  product.	
  	
  
	
  
                                                      It	
  is	
  also	
  worth	
  mentioning	
  that	
  Blythe	
  (2008),	
  Fill	
  (2011)	
  and	
  Silverman	
  
                                                      (2001)	
  all	
  highlight	
  that	
  word	
  of	
  mouth	
  can	
  also	
  be	
  either	
  good	
  or	
  bad.	
  
                                                      They	
  state	
  that	
  bad	
  reviews	
  travel	
  faster	
  than	
  good	
  reviews.	
  People	
  are	
  
                                                      also	
  more	
  likely	
  to	
  talk	
  about	
  their	
  bad	
  experiences	
  more	
  so	
  than	
  their	
  
                                                      good	
  experiences.	
  A	
  finding	
  from	
  the	
  Coca	
  Cola	
  Company	
  in	
  198119	
  found	
  
                                                      that	
  12%	
  of	
  people	
  told	
  20	
  or	
  more	
  people	
  about	
  the	
  companies	
  response	
  
                                                      to	
  their	
  complaints,	
  where	
  are	
  those	
  who	
  were	
  satisfied	
  only	
  told	
  a	
  
                                                      median	
  of	
  four	
  to	
  five	
  others	
  about	
  their	
  experiences.	
  	
  
	
  


	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
19	
  Blythe,	
  2008	
  




                           	
                                                                                                                                                                                                      22	
  
LITERATURE	
  REVIEW	
  	
   3	
  
	
  
3.4.1. Good	
  vs.	
  Bad	
  reviews	
  	
   	
  	
  
              By	
  now	
  this	
  study	
  has	
  discovered	
  that	
  word	
  of	
  mouth	
  is	
  not	
  the	
  same	
  as	
  it	
  
              comes	
  in	
  different	
  forms,	
  either	
  negative	
  or	
  positive.	
  Silverman	
  (2001)	
  
              expands	
  this	
  further	
  by	
  introducing	
  the	
  idea	
  that	
  word	
  of	
  mouth	
  has	
  got	
  
              nine	
  different	
  levels.	
  These	
  levels	
  range	
  from	
  minus	
  four	
  (negative	
  word	
  of	
  
              mouth)	
  to	
  plus	
  four	
  (positive	
  word	
  of	
  mouth).	
  	
  
	
  
3.4.1.1.                  The	
  Minus	
  Levels	
  	
  
                          -­‐4. Minus	
  four	
  –	
  Described	
  by	
  Silverman	
  (2001)	
  as	
  the	
  level	
  where	
  
                                people	
  are	
  all	
  complaining	
  about	
  a	
  product	
  or	
  services.	
  These	
  
                                complaints	
  are	
  so	
  severe	
  that	
  they	
  are	
  in	
  fact	
  a	
  public	
  scandal.	
  
                                A	
  recent	
  example	
  of	
  this	
  type	
  of	
  level	
  was	
  the	
  Toyota	
  scandal	
  
                                where	
  several	
  of	
  their	
  cars	
  had	
  to	
  be	
  recalled	
  due	
  to	
  faulty	
  gas	
  
                                pedals.	
  This	
  level	
  is	
  very	
  hard	
  to	
  survive,	
  and	
  often	
  the	
  only	
  
                                ways	
  companies	
  survive	
  is	
  because	
  the	
  company	
  is	
  so	
  trusted	
  
                                or	
  favoured	
  that	
  nothing	
  can	
  taint	
  their	
  image.	
  	
  
                          -­‐3. Minus	
  three	
  –	
  Silverman	
  (2001)	
  states	
  that	
  although	
  it	
  is	
  similar	
  
                                to	
  minus	
  four,	
  in	
  this	
  level	
  people	
  and	
  ex-­‐consumers	
  go	
  out	
  of	
  
                                their	
  way	
  to	
  spread	
  bad	
  word	
  of	
  mouth	
  about	
  a	
  product	
  or	
  
                                service,	
  however	
  the	
  level	
  of	
  scandal	
  is	
  not	
  as	
  public	
  as	
  minus	
  
                                four.	
  	
  
                          -­‐2. Minus	
  two	
  –	
  This	
  level	
  involves	
  customers	
  having	
  rants	
  about	
  a	
  
                                product	
  or	
  service	
  mainly	
  bad	
  mouthing	
  the	
  brand	
  (Silverman,	
  
                                2011).	
  This	
  level	
  still	
  has	
  a	
  negative	
  effect	
  on	
  sales	
  making	
  
                                them	
  erode	
  however	
  not	
  as	
  fast	
  as	
  minus	
  three	
  and	
  minus	
  four,	
  
                                as	
  consumers	
  are	
  still	
  not	
  actively	
  seeking	
  to	
  spread	
  bad	
  word	
  
                                of	
  mouth.	
  	
  
                          -­‐1. Minus	
  one	
  –	
  At	
  this	
  stage	
  Silverman	
  (2001)	
  explains	
  that	
  people	
  
                                are	
  not	
  complaining	
  about	
  a	
  product	
  or	
  service.	
  Unless	
  they	
  are	
  
                                questioned	
  about	
  the	
  product	
  or	
  service,	
  only	
  then	
  will	
  the	
  talk	
  
                                about	
  their	
  bad	
  experience	
  with	
  the	
  product.	
  This	
  level	
  is	
  also	
  
                                not	
  as	
  damaging	
  as	
  the	
  other	
  minus	
  levels	
  as	
  people	
  still	
  
                                purchase	
  the	
  product	
  despite	
  the	
  negative	
  word	
  of	
  mouth.	
  	
  


       	
                                                           23	
  
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Dissertation final draft

  • 1.       Do  Websites  Such  as  TripAdvisor  Affect   Consumer  Behaviour  with  the  use  of   Word-­‐of-­‐Mouth?     By  Rodrigue  Eid               L o n d o n   S o u t h   B a n k   –   M a y   2 0 1 2    
  • 2. Authors  Deceleration       I   certify   that   all   quotes   and   passages   from   other   peoples   work   that   have   been   used   for   the   purpose   of   this   dissertation   have   all   been   acknowledged   by   referencing   both   the   author   and   their   work.   I   also   certify   that   I   am   the   sole   author  of  this  dissertation  and  that  it  does  not  infringe  or  violate  any  copyright   laws.   I   understand   that   plagiarism   will   be   considered   as   failure   towards   the   dissertation  module  and  also  this  degree  as  a  whole.       Rodrigue  Eid                                                                   ii  
  • 3. Dedication  &  Acknowledgments       I   would   like   to   dedicate   this   page   to   say   thank   you   to   all   the   people   who   have   helped   me   in   overcoming   the   stress   and   anxiety   that   I   went   through   to   complete   this   dissertation.   My   biggest   gratitude   goes   to   my   grandfather,   not   only   for   encouraging  me  to  go  to  university  but  also  for  believing  in  me  and  always  being   so  proud  of  me  for  whatever  I  have  done.       I   would   also   like   to   express   my   appreciation   to   my   supervisor   Anita   Peleg,   as   without  your  guidance  and  perseverance  I  would  not  have  been  able  to  complete   this  by  myself.  I  would  like  to  thank  her  for  all  the  advice,  recommendation  and   amounts   of   times   she   told   me   to   redo   certain   sections   till   we   were   satisfied   with   the  work  produced.       Thank  you  to  all  my  family  and  friends  who  also  believed  in  me  and  supported   me   during   the   production   of   this   mammoth   research   project,   as   without   their   constant   words   of   encouragement   and   their   help   I   would   not   of   been   able   to   complete   this   project.   I   would   like   to   also   thank   my   mother   who   had   to   sit   through   endless   hours   of   me   talking   at   her   about   my   dissertation.   I   would   also   like   to   express   my   thankfulness   to   my   best   friend   Johanna   El-­‐Tohami   who   has   also   helped   me   greatly   in   executing   this   dissertation   by   checking   my   grammar   and  spelling.       This   dissertation   has   Definitely   proven   to   be   challenging;   however   it   has   definitely  been  a  once  in  a  lifetime  experience.  Thank  you  again  to  everyone  who   has   helped   in   making   this   project   come   to   life,   and   I   hope   that   this   piece   of   research  will  help  people  in  the  future  with  similar  activities  they  carry  out.           “There  isn’t  a  person     anywhere  who  is  not  capable   of  doing  more  than  he  thinks     he  can.  “       Tom  Ford         iii  
  • 4. Abstract     Purpose:    This  study  has  been  carried  out  to  answer  the  question  as  to  whether   consumer   behaviour   is   affected   my   word   of   mouth   when   it   comes   to   websites   such  as  TripAdvisor.       Methodology/Literature   review:   These   sections   of   the   study   provide   an   extensive   read   surrounding   the   different   methods   of   research   used   to   obtain   information  that  is  needed  to  execute  the  report.  Looking  at  published  literature,   data,  and  information  from  academics,  government  and  others  surrounding  the   topic  of  consumer  behaviour,  word  of  mouth  and  their  importance.       Findings:   This   section   of   the   study   is   where   all   information   is   drawn   together.   The   major   findings   made   in   this   section   derived   from   my   sample   population   taking  part  in  posting  reviews  and  partaking  in  word  of  mouth.  The  majority  of   the  sample  surveyed  stated  that  they  did  post  positive  comments  online  however   were   they   honest   about   the   information   they   shared.   Another   discovery   made   had   to   do   with   the   relation   of   good   and   bad   comments.   It   was   apparent   that   people  from  the  sample  were  more  likely  to  talk  about  bad  word  of  mouth  than   good   word   of   mouth.   This   finding   can   also   be   related   to   some   of   the   literature   that   was   found   from   people   such   as   Blythe   (2008)   and   Evans   et  al  (2006)   and   Blackwell   et   al   (2006).   The   general   recommendation   that   highlighted   in   the   findings  was  a  method  in  which  the  accuracy  of  reviews  can  be  checked  before   they  went  live  on  the  website.       Recommendation  and  Conclusion:  In  this  section  of  the  report,  everything  in  this   study  is  brought  together,  after  all  the  analysis  that  was  made  and  the  findings.   Recommendations   were   also   made   in   order   to   help   answer   the   objectives   that   were   set   out   in   chapter   1   in   order   to   help   websites   such   as   TripAdvisor   and   others   keep   their   customer   happy.   The   conclusion   and   recommendations   were   reached   in   several   ways,   firstly   through   the   secondary   findings   from   the   literature  review  and  secondly  through  the  primary  findings  made  by  the  survey.           iv  
  • 5. Format  of  Study       Chapter  1:  Introduction     This   is   where   the   background   of   the   study   will   be   outlined   and   any   details   about   the  research  problem  will  be  defined.  This  section  will  also  include  the  reasons   why  this  study  is  important  to  carry  out  and  also  the  objectives  that  it  is  aiming   to  answer.       Chapter  2:  Methodology     This   section   of   the   report   will   look   at   the   various   methods   in   which   research   can   be  carried  out  in  order  to  help  make  this  research  more  effective.  An  exploration   of  both  primary  and  secondary  research  methods  will  be  looked  at  and  decided   upon  for  the  purpose  of  this  study.  In  addition  to  this,  both  quantitative  methods   and  qualitative  methods  will  be  explored  to  aid  this  research.    This  section  will   also  look  at  the  risk  of  bias  data  and  limitations  to  obtaining  data.       Chapter  3:  Literature  Review     This   section   will   look   at   various   theories   and   previous   texts   that   have   been   published  surrounding  some  of  the  main  topics  that  will  affect  my  study.  In  order   to  better  understand  what  this  research  and  to  ensure  that  the  right  path  is  taken   it   was   necessary   to   look   at   various   texts   that   explained   what   consumer   behaviour   is,   or   what   word   of   mouth   is,   how   these   variable   can   be   affected   by   consumers   and   so   on.   It   is   for   this   reason   that   this   section   is   necessary,   as   without   it   there   would   be   no   background   or   understanding   about   the   various   topics  that  this  study  is  aiming  to  answer.       Chapter  4:  Research  Findings     In  this  section  of  the  study  all  data  collated  from  the  survey  would  be  analysed   and  put  into  tables  and  pie  charts  in  order  to  help  the  reader  get  a  better  view  of   the   findings.   This   section   is   all   about   getting   the   relevant   information   that   is   required  that  will  help  in  finding  answers  to  the  objectives  that  have  been  set  out   In   chapter   1.   This   section   is   also   important   as   it   helps   in   seeing   if   what   the     v  
  • 6. previous   published   texts   actually   reflect   the   findings,   or   if   times   have   changed   and  new  findings  and  theories  may  need  to  be  drawn  by  a  more  vast  extensive   research.       Chapter  5:  Recommendation  and  Conclusion     This   section   of   the   report   is   all   about   what   conclusions   and   recommendations   can   be   drawn   from   the   findings   in   the   study   that   will   help   both   answer   the   objectives   set   out   in   chapter   1   but   also   hopefully   help   organisations   in   seeing   what   this   sample   population   had   to   say   about   they   way   things   are   currently   operating.       References  and  Bibliography     This   will   contain   a   list   of   books,   papers,   and   websites   that   were   used   and   referred  to  for  the  purpose  of  this  research.       Appendices     This  will  contain  any  extra  information  that  was  also  referred  to  within  the  body   of  the  study  that  was  either  too  large  or  not  important  to  include.  However,  these   have  been  included  in  this  section  to  be  referred  to  if  needed.                                 vi  
  • 7. Contents       Page   Chapter  1  -­‐  Introduction   1   1.  Background     2-­‐3   1.2.  Research  Problem     3-­‐4   1.2.1.  Research  Objectives   4   1.3.  Importance  of  Study     4-­‐5         Chapter  2  –  Methodology     6   2.  Introduction   7   2.1.  Secondary  Research     7   2.2.  Primary  Research     7-­‐9   2.3.  The  Quantitative  Approach     9   2.4.  Justification  of  Survey  Selection   9-­‐10   2.4.1.  Why  Other  Methods  Were  not  Chosen     10-­‐11   2.4.2.  Survey  Design     11-­‐12   2.4.3.  Pre-­‐test  Survey     13   2.5.  Sampling     13-­‐14   2.5.1.  Response  Rate     14   2.6.  Collection  Method     14   2.7.  Sampling  Error   14-­‐15       Chapter  3  –  Literature  Review     16   3.  Consumer  Behaviour     17   3.1.1.  Consumer  Decision  Process  Model   17-­‐18   3.2.  Search  for  Information   18-­‐19   3.3.  Post  Consumption  Evaluation     20   3.3.3.  Importance  of  Customer  Satisfaction   20-­‐21   3.4.  Word  of  Mouth     21-­‐22   3.4.1.  Good  vs.  Bad   23   3.4.1.1.  The  Minus  Levels     23   3.4.1.2.  The  Plus  Levels     24   3.4.1.3.  Level  Zero   25   3.5.  Cognitive  Dissonance     25-­‐26   3.6.  Summary     26-­‐27       Chapter  4  –  Research  Findings     28   4.  Introduction     29   4.1.  Microsoft  Excel     29   4.2.  Response  Rate   29   4.3.  The  Respondents     29-­‐30   4.4.  Before  Purchasing  a  Holiday     30     vii  
  • 8. 4.5.  Recent  Holidays     31-­‐32   4.6.  TripAdvisor     32-­‐33   4.7.  Existing  Reviews     33-­‐36   4.8.  Word  of  Mouth     36-­‐39   4.9.  Recommendations  from  Respondents     39       Chapter  5  –  Recommendations  and  Conclusion     40   5.  Introduction     41   5.1.  Conclusion     41-­‐43   5.2.  Recommendations     44   5.3.  Areas  for  Possible  Research     44-­‐45       Appendix     46-­‐74       Bibliography     75-­‐76       viii  
  • 9.   1     Chapter         Introduction     Chapter  1     Background  2;  Research  Problem  3;  Research  Objectives  4;  Importance  of  Study  4   L o n d o n   S o u t h   B a n k   –   M a y   2 0 1 2      
  • 10. INTRODUCTION     1       1. Background     The  Tourism  industry  has  seen  a  surge  in  the  amount  of  online  user-­‐ generated  content  with  regards  to  word  of  mouth  reviews.  TripAdvisor,   which  is  owned  and  operated  by  Expedia  Inc.,  has  led  this  revolution.  With   technology  improving  on  a  day-­‐to-­‐day  basis,  the  Internet  has  now  become  a   central  hub  for  communicating  through  social  networking  sites,  travel  sites,   and  blogs  enabling  customers  to  talk  freely  about  their  experiences  of   holidays  they  have  been  on.  Smith  and  Taylor  (2002),  describe  word  of   mouth  as  the  most  potent  and  robust  tool  in  advertising.    Highlighting  that   many  of  the  textbooks  share  the  opinion,  Smith  and  Taylor  (2002),  state  that   no  matter  how  good  a  marketing  campaign  may  be,  or  how  much  of  an  expert   seller  a  person  may  be,  they  alone  cannot  compete  with  the  power  of  a   recommendation  made  by  a  colleague  or  friend.       In  the  fourth  quarter  of  2011  TripAdvisor  published  an  increase  its  revenue   by  30%  to  $137.8  million,  making  its  full  years  revenue  $637.1  million1.  This   was  a  31%  increase  from  20102.  TripAdvisor  has  approximately  20  million   users  in  around  26  countries  including  China3.  With  access  to  over  40  million   reviews  and  opinions,  TripAdvisor  services  are  available  free  of  charge  to  its   users,  allowing  them  to  post  comments  and  compare  holidays  free  of  charge4,   and  also  share  them  with  other  users  through  social  networking  sites,  such  as   Facebook  or  Twitter.  TripAdvisor  makes  it  revenue  through  the  use  of  click-­‐ based  advertising,  display  based  advertising  and  also  subscriptions.  This  is   where  service  providers  use  trip  advisor  as  a  distribution  channel  for  their   service  or  product  for  publicity5.       With  over  53%  of  holidays  being  booked  online  in  2010,  according  to  a   survey  done  by  Target  Group  Index,  more  people  are  now  taking  the  time  to                                                                                                                   1  TripAdvisor  reports  fourth  quarter  and  full  year  2011  financial  results       2  TripAdvisor  reports  fourth  quarter  and  full  year  2011  financial  results       3  TripAdvisor  reports  fourth  quarter  and  full  year  2011  financial  results       4  TripAdvisor  reports  fourth  quarter  and  full  year  2011  financial  results       5  TripAdvisor  reports  fourth  quarter  and  full  year  2011  financial  results         2  
  • 11. INTRODUCTION     1     post  reviews  online  about  their  experiences.  According  to  a  Mintel  report  in   July  2011,  around  24%  of  the  population  sampled  posted  positive  reviews   about  their  holiday,  where  as  12%  posted  negative  reviews.  In  addition  to   this  Mintel6,  also  brought  to  light  that  6%  of  those  people  sampled,  also  made   positive  reviews  whilst  on  holiday  whilst  4%  posted  negative  reviews.       However,  recent  events  regarding  the  accuracy  of  these  word  of  mouth   reviews  have  been  put  under  the  spotlight.  In  2010,  legal  action  was  taken   against  TripAdvisor  after  it  had  published  ‘Dirtiest  hotel’  list,  where  the   British  Hotel  Association  wanted  to  enforce  legislation  making  it  illegal  to   post  unverified  posts7.  According  to  Mintel8,  a  website  launched  under  the   name  TripAdvisor-­‐warning.com  posted  200  fake  reviews  in  the  months   leading  to  the  2nd  of  June  2011  in  order  to  help  expose  the  infectiveness  with   regards  to  accuracy  on  TripAdvisor.       Is  TripAdvisor  now  finding  its  purpose  being  doubted  and  challenged  with   regards  to  the  accuracy  of  its  reviews?  More  than  48%  of  the  sample  people   questioned,  by  Target  Group  Index,  found  that  they  read  travel  reviews   generated  by  other  travellers.  However  are  any  of  these  reviews  to  be   trusted?  Around  28%  of  the  sample  question  by  Target  Group  Index,  agreed   that  they  trust  Internet  reviews  and  blogs  written  by  other  people  they  do   not  know,  where  as  53%  of  the  sample  neither  agreed  nor  disagreed9.       1.2. Research  Problem   With  broadband  penetrating  more  than  70%  of  households10,  the  Internet   has  expanded  rapidly  over  the  past  ten  years;  this  in  turn  has  affected  the   way  word  of  mouth  is  communicated.  It  is  also  evident  that  from  the   background  (section  1)  that  the  trend  in  consumer  behaviour  is  shifting   from  the  regular  “purchase  from  the  high  street  shop”  attitude  and                                                                                                                   6  July  2011   7  Mintel,  July  2011     8  July  2011   9  July  2011   10  Mintel  September  2011       3  
  • 12. INTRODUCTION     1     instead  making  most  of  their  purchases  online.  This  trend  is  what  makes   website  like  TripAdvisor  successful.  However  is  TripAdvisor  a  victim  of   its  own  success?  Exposure  to  the  Internet  has  increased  rapidly  in  the   past  couple  of  years  with  it  having  the  ability  to  be  accessed  from  a   number  of  platforms.  In  addition  to  home  broadband  penetrating  the   70%  barrier,  people  now  have  access  to  the  Internet  through  their   Smartphones,  TV  sets  and  even  hand  held  game  devices11.       By  focusing  on  the  tourism  industry,  and  in  particular  TripAdvisor,  the   problem  that  this  research  is  trying  to  tackle  to  what  extent  do  people   believe  and  trust  these  reviews,  how  accurate  these  reviews  are   especially  when  it  comes  to  reviews  that  have  been  generated  by  other   users.       1.2.1. Research  Objectives     Objective  1  –  How  does  word  of  mouth  affect  consumer  purchase   behaviour  when  it  comes  to  websites  such  as  TripAdvisor  or  similar   websites?         Objective  2  -­‐  What  intentions  do  consumers  have  when  it  comes  to  using   websites  such  as  TripAdvisor?       Objective  3  –  How  is  consumer-­‐purchasing  behaviour  affected  by  good   and  bad  reviews  on  websites  such  as  TripAdvisor?       Objective  4  –  What  recommendations  can  make  websites  such  as   TripAdvisor  make  their  reviews  more  accurate?     1.3. Importance  of  Study     The  importance  of  this  study  is  to  help  get  a  better  understanding  on  how   word  of  mouth  can  affect  consumer  behaviour  in  the  market.  The  study  is                                                                                                                   11  Mintel,  September  2011       4  
  • 13. INTRODUCTION     1     will  help  TripAdvisor  gaining  a  better  insight  into  consumer’s  perceptions   of  their  service.  This  study  will  provide  a  better  understanding  on   consumer  satisfaction  as  it  is  this  element  that  shapes  word  of  mouth  and   a  companies  reputation.       This  study  hopes  to  give  companies  a  foundation  surrounding  the  effects   that  negative  word  of  mouth  directed  towards  a  company  through  the   findings  and  recommendations  the  study  is  seeking  to  make.                                                 5  
  • 14. RESEARCH  METHODOLOGY     6     2     Chapter       Research  Methodology     Chapter  2     Introduction  7;  Secondary  Research  7;  Primary  Research  7;  The  Quantitative  Approach  9;   Justification  of  Questionnaire  Selection  9;  Why  Other  Methods  Were  Not  Chosen  10;   Questionnaire  Design  11;  Pre-­‐test  of  Questionnaires  13;  Sampling  13;  Response  Rate  14;   Collection  Method  14;  Sampling  Error  14.     L o n d o n   S o u t h   B a n k   –   M a y   2 0 1 2    
  • 15. RESEARCH  METHODOLOGY     2       2. Introduction       In  this  section  of  the  report,  different  research  methods  will  be  explored  to   determine  which  will  be  effective  to  gather  the  relevant  information  that  will   help  make  recommendations.  Data  collected  for  this  study  needs  to  be   relevant,  accurate  and  reliable.  Both  primary  and  secondary  research  will  be   utilised  to  collate  the  information  required.  Quantitative  and  qualitative   methods  will  be  explored  in  order  to  determine  which  method/  methods  will   be  best  suited  to  collate  primary  data.     2.1. Secondary  Research   Lewis  et  al  (2009)  states  that  secondary  research  can  be  both  raw  data   and  published  summaries.  Secondary  data  is  found  from  many  areas,  such   as  the  Internet,  government  reports,  published  journals  or  newspapers.     Secondary  research  is  fundamental  as  it  provides  a  useful  source  where   answers  or  partial  answers  can  be  found  for  the  study  being  carried  out.       The  advantages  for  using  secondary  research  are,  firstly  resources  are  not   wasted,  as  it  is  very  time  effective  and  cost  effective,  making  data  very   easy  and  quick  to  find.  This  is  particularly  helpful  when  a  report  has  to  be   conducted  in  such  a  short  space  of  time.  It  also  provides  the  study  with  a   lot  of  comparative  and  contextual  information  that  will  help  reinforce  the   report.       However  secondary  research  may  not  be  relevant  to  the  study,  either   being  unsuitable  or  out  of  date,  also  depending  on  the  subject  some  of  the   information  may  be  hard  to  access.       2.2. Primary  Research     Primary  research  involves  a  process  where  raw  data  is  extracted  through     7  
  • 16. RESEARCH  METHODOLOGY     2     activities  such  as  surveys,  investigations,  and  even  interviews12.  Raw  data   tends  to  be  data  that  does  not  previously  exist.  Some  of  the  examples  of   primary  research  include:       • Observations  –  This  is  where  observations  are  made  that  are   concerned  with  what  consumers  do,  it  is  done  through   observing  behaviour  recording  descriptions,  analysing  and   interpreting  consumer  behaviour13.  This  would  be  suitable   for  this  study  as  it  involves  looking  at  the  way  consumers   behave  online  with  regards  to  the  content  generated  on   websites  such  as  TripAdvisor     • In-­‐depth,  group  and  semi-­‐structured  interviews  –  This  is   where  a  discussion  is  held  by  two  or  more  people  to  help   gather  information  about  the  study14.  Information  obtained   is  generally  in  depth  and  reliable.  However,  this  will  not  be   suitable  for  this  research  due  to  time  constraints  and  access   to  people.     • Surveys  –  This  is  where  a  survey  is  drawn  up  for  the   purpose  of  the  study  and  a  sample  is  picked  in  order  to  try   and  get  the  best  answers  that  represent  the  population15.   This  will  be  useful  for  this  study  because  a  lot  of   information  can  be  obtained  through  a  survey.  It  is  also   very  cost  effective  and  cheap  to  carry  out.     For  the  purpose  of  this  study  a  survey  will  be  conducted  in  order  to  help   answer  objectives  set  out  in  section  1.2.1.  This  method  was  chosen  above   others  because  a  survey  was  seen  as  the  best  way  to  collect  data  quickly   in  a  standardised  way  making  the  findings  more  objective  than  other   forms  of  research  such  as  interviews.  However  this  could  also  be  a   disadvantage  that  data  is  standardised,  as  it  is  not  possible  to  explain  any                                                                                                                   12  Lewis  et  al,  2009     13  Lewis  et  al,  2009   14  Lewis  et  al,  2009   15  Lewis  et  al,  2009       8  
  • 17. RESEARCH  METHODOLOGY     2     points  that  participants  might  be  misinterpreted.  A  survey  will  help  in   answering  the  objectives  set  out  in  section  1.2.1.  As  the  questions  which   will  be  included  in  the  survey  will  be  asked  in  relation  to  the  objectives   and  worded  in  the  best  way  to  answer  the  objectives.       2.3. The  Quantitative  Approach     The  quantitative  approach  would  best  fit  this  report  and  the  survey  as   most  questions  due  to  the  survey  being  carried  out.  Most  information   collated  will  be  from  close-­‐ended  questions.  However,  some  data  will  also   be  collated  with  the  use  of  open-­‐ended  questions.       For  the  purpose  of  this  survey  a  mixture  of  both  close  ended  and  open-­‐ ended  questions  will  be  used  as  part  of  the  survey.  There  are  two  types  of   data  that  can  be  collected.     • Quantitative  data  is  drawn  from  close-­‐ended  questions,  normally   numerical,  one-­‐word  answers  or  statements.  This  will  be   beneficial,  as  it  will  help  this  study  in  finding  accurate  and  relevant   information  that  can  be  quantified.     • Qualitative  data  is  drawn  from  open  ended  questions,  normally   where  the  respondent  is  asked  to  write  a  couple  of  lines  to  express   their  opinion  about  a  statement  or  question.  The  benefits  for  using   this  method  in  a  survey  will  help  reinforce  findings  by  providing   the  study  with  some  statements  and  opinions  made  by  the  sample.       By  incorporating  both  quantitative  and  qualitative  questions  into  the  survey   will  ensure  a  non-­‐biased  approach  is  being  taken,  as  people  will  be  allowed  to   voice  their  opinions  with  the  use  of  open-­‐ended  questions.         2.4. Justification  of  Survey  Selection     There  are  various  reasons  why  a  survey  was  selected  as  the  method  to   collate  and  obtain  data:       9  
  • 18. RESEARCH  METHODOLOGY     2     1. Quickest  –  Due  to  time  constraints  this  was  deemed  the  most   effective  and  quickest  way  to  obtain  the  information  required  to   complete  this  study.     2. Resources  –  As  this  study  is  not  funded,  a  survey  was  seen  as  a   good  method  because  it  will  not  cost  a  fortune  in  order  to  carry  out   the  research.   3. Sample  size  –  A  survey  was  also  deemed  the  best  way  to  collate   data  from  the  sample  of  150  people  as  any  other  methods  would   have  been  very  time  consuming  and  also  may  have  been  an   overload  of  information.       2.4.1. Why  Other  Methods  Were  Not  Chosen     There  are  several  reasons  why  other  methods  were  disregarded  from  this   study.  The  primary  reason  was  because  interviews  were  not  designed  to   cope  with  a  large  number  of  respondents,  as  this  would  have  been  very   time  consuming.  Furthermore,  the  information  collected  would  not  be   standardised  and  therefore  it  would  have  taken  a  great  deal  of  time  to   analyse  the  information.  Other  reasons  taken  into  consideration  had  to  do   with  the  interviewer  and  how  they  would  affect  the  consistency  of  the   interview  and  also  if  they  were  to  make  it  biased  in  the  form  they  asked   the  questions.         Observations  were  not  considered  effective  for  this  study  because  it   requires  a  long  time  to  implement  and  apprehend  data.  In  addition  to  this   if  the  consumer  had  awareness  of  that  their  actions  are  being  observed   this  may  have  an  effect  on  findings  being  accurate,  as  the  consumer  may   acted  or  responded  in  an  infrequent  way.       In  addition  to  these  reasons,  the  study  also  felt  that  these  methods  were   not  as  appropriate  to  use,  as  they  would  not  be  the  most  effective  way  to   collate  data  to  help  answer  the  objectives  set  out  in  1.2.1.  The  risk  in  using   these  methods  may  have  meant  that  data  collated  would  not  be  as  vast     10  
  • 19. RESEARCH  METHODOLOGY     2     and  strong  to  support  any  recommendations  that  will  be  made  in  the  end   of  this  study.       2.4.2. Survey  Design     In  order  to  find  out  the  relevant  information  that  is  needed,  it  is  necessary   for  a  survey  to  be  implemented.  This  should  help  in  finding  out  consumer   attitudes  towards  websites  such  as  TripAdvisor,  their  thoughts   surrounding  such  websites,  what  their  intentions  are  when  it  comes  to   using  those  sites,  and  also  what  recommendations  they  can  suggest  to   improve  such  sites.       To  help  construct  this  survey,  Bourque  and  Clarke  (1994)  have   highlighted  three  approaches  that  can  be  employed  to  design  the  survey:     1. Adopt  questions   2. Adapt  questions     3. Develop  questions     Furthermore,  the  design  of  the  questions  themselves  play  a  vital  role,  as   there  are  several  types  of  questions  that  can  be  used:     1. Closed  questions  –  DeVaus  (2002)  define  closed  questions  as   force-­‐choice  questions  providing  the  respondents  a  number  of   alternative  answers  from  which  they  can  choose.     2. Open  questions  –  these  types  of  questions  are  where   respondents  are  given  the  opportunity  to  answer  questions  in   their  own  way  (Fink,  2003).     3. List  questions  –  This  is  where  the  respondent  is  provided  with  a   list  of  options  from  which  they  can  choose  more  than  one   answer  (Lewis  et  al,  2009).   4. Category  questions  –  Lewis  et  al  (2009)  states  that  category   questions  are  designed  so  that  each  respondent  can  be  grouped   into  one  category.     5. Rating  questions  –  these  questions  are  used  to  collect  opinion   data  (Lewis  et  al,  2009)  by  asking  the  respondents  whether   they  agree  or  disagree  with  a  statement.       11  
  • 20. RESEARCH  METHODOLOGY     2     There  are  other  elements  that  need  to  be  considered  when  designing  a   survey;  two  factors  are  the  order  and  flow  of  questions  and  the  layout.   These  factors  need  to  be  considered  because  it  is  vital  that  the  survey  is   user  friendly,  engaging  and  short  in  length.       The  structure  of  this  survey  was  pretty  simple.  The  main  considerations   that  were  implemented  into  it  were  to  make  it  short,  quick  and  easy  but  at   the  same  time  effective  to  extract  as  much  information  as  possible.  There   were  also  some  other  considerations  that  were  considered  such  as  not   asking  too  much  personal  information  surrounding  the  respondent.  The   first  section  of  the  survey  was  simply  to  know  what  the  respondents  age   group  they  fit  and  what  gender  they  were.       Questions  three  to  five  revolved  around  getting  a  better  understanding   about  the  respondents  travel  purchase  behaviour.  This  was  necessary,  as   it  would  help  get  a  better  understanding  about  the  various  websites  the   respondent  uses  to  purchase  or  plan  to  purchase  a  holiday.         The  final  part  of  the  survey  was  designed  to  consider  the  respondents   attitude  towards  reviews,  their  opinions  surrounding  such  activities  and   also  to  see  if  they  took  part  in  such  activities  themselves.  Question  six  and   seven  also  helped  to  get  a  better  understanding  of  these  reviews  would   affect  any  future  purchases  to  be  made  by  the  consumer.       Question  eight  in  the  survey  asked  to  consideration  what  consumers   thought  that  websites,  such  as  TripAdvisor,  needed  to  change  or  improve   in  their  service.  This  question  was  necessary  because  it  will  help  the  study   in  reaching  recommendations  that  consumers  will  actually  respond  to,   after  all  this  is  a  service  which  caters  to  them.     A  copy  of  the  questionnaire  used  for  this  study  can  be  found  under   appendix  A.           12  
  • 21. RESEARCH  METHODOLOGY     2     2.4.3. Pre-­‐test  of  Surveys     In  order  to  ensure  that  the  survey  was  fit  for  purpose,  and  complied  with   the  design  methods  outlined  in  sections  2.4.1.1.  pre-­‐test  surveys  were   distributed  to  five  individuals  to  complete.  This  helped  determine  the   effectiveness  of  the  survey  and  whether  any  changes  need  to  be  made  to   the  survey  before  it  went  live.  Pre-­‐tests  also  help  to  get  a  general  idea  of   what  findings  of  the  sample  is  going  to  be  like.  This  also  helps  in  seeing   what  the  respondents  also  thought  about  the  layout  of  the  survey  and   whether  there  needs  to  be  any  improvements  made  to  its  layout  to  make   it  more  user  friendly.  Changes  made  to  the  survey  can  be  found  in   appendix  E.       2.5. Sampling     Collecting  responses  from  an  entire  population  can  be  very  difficult.  A   sample  population  provides  an  alternative  to  obtain  findings  from  a   representative  number  of  people.  There  are  several  advantages   highlighted  by  Lewis  et  al,  (2009)  to  using  sample  population:     1. More  practical  and  feasible     2. Budget  constraint     3. Time  constraints     Lewis  et  al,  (2009)  states  that  there  are  two  types  of  sampling  techniques:     1. Probability  sampling  –  Mostly  used  for  survey-­‐based  research   where  inferences  are  made  from  the  sample  about  a  population   to  answer  questions  to  meet  the  objectives.     2. Non-­‐probability  sampling  –  This  provides  an  alternative   technique  to  select  samples  based  on  subjective  judgements.  It   is  mainly  used  in  cases  of  pilot  surveys.     As  this  a  survey  based  activity,  probability  sampling  was  seen  to  best  fit   the  technique  that  should  be  used  for  the  purpose  of  collating  data.  The   sample  size  of  this  survey  will  consist  of  150  respondents.  Statistical   probability  may  be  difficult  to  implement  in  this  study  due  to  the  number   of  respondents  not  being  large  enough.  The  sample  will  include  both   female  and  male  respondents  from  various  age  groups.  The  main  target     13  
  • 22. RESEARCH  METHODOLOGY     2     group  is  25-­‐55.  The  respondents  must  also  be  users  of  TripAdvisor  or   similar  websites.       2.5.1. Response  Rate     The  main  disadvantage  of  using  a  survey  is  the  number  of  low  response   rates  that  they  receive.  This  study  aims  to  obtain  at  least  a  40%  response   rate.  In  order  to  encourage  a  higher  response  rate,  £20  Love2Shop   vouchers  will  be  awarded  to  three  of  the  respondents,  at  random,  for   taking  part  in  the  questionnaire.         2.6. Collection  Method   Where:  Oxford  Street,  Bond  Street,  and  Tottenham  Court  Road   Dates:  January  9th,  2012  until  January  13th,  2012     Time:  30  surveys  will  be  filled  out  on  each  day  of  the  week  from  the   hours  of  9  am  to  5  pm.  15  of  the  surveys  need  to  be  from  TripAdvisor   consumers  and  the  remainder  from  consumers  that  use  websites  similar   to  TripAdvisor     Justification:  Due  to  the  amount  of  people  who  commute  around  these   locations  they  were  seen  best  fit  to  carry  out  this  research.  Also  there  is  a   mixed  diversity  of  people  that  will  be  exposed  to  this  survey  and   therefore  make  the  collection  of  data  more  simple  and  less  time   consuming.       2.7. Sampling  Error     This  report  acknowledges  the  room  for  sampling  error  is  a  high  risk.  This   in  itself  has  a  drawback  for  not  being  representative  of  the  population.   Had  more  time  been  allocated  to  obtaining  data  the  study  would  have   sought  after  a  much  larger  sample  size  and  extended  to  getting  responses   online,  and  from  other  areas  of  the  United  Kingdom  and  not  just  the   capital.         14  
  • 23. RESEARCH  METHODOLOGY     2     This  study  accepts  that  the  results  obtained  may  not  be  entirely  valid,   consistent  and  reliable  as  they  may  be  deemed  as  biased,  as  other   respondents  from  the  Internet  or  other  areas  of  the  United  Kingdom  may   have  different  perceptions  of  TripAdvisor  and  similar  websites.       15  
  • 24. 16   LITERATURE  REVIEW       3     Chapter       Literature  Review     Chapter  3   Consumer  Behaviour  17;  Consumer  Decision  Process  Model  17;  Search  for  Information  18;   Post-­‐Consumption  Evaluation  20;  Importance  of  Customer  Satisfaction  20;  Word-­‐Of-­‐Mouth   21;  Good  vs.  Bad  Reviews  23;  The  Minus  Levels  23;  The  Plus  Levels  24;  Level  Zero  25;   Cognitive  Dissonance  25;  Summary  26;   L o n d o n   S o u t h   B a n k   –   M a y   2 0 1 2    
  • 25. LITERATURE  REVIEW     3       3. Consumer  Behaviour   Consumer  behaviour  derives  from  activities  consumers  undertake  when   they  obtain,  consume  and  dispose  a  product  or  service16.  From  the  definition   Blackwell  et  al  (2006)  highlights  the  three  activities  that  form  the  consumer   behaviour  process:     1. Obtaining  –  Blackwell  et  al  (2006)  defines  this  as  the  activities  that   lead  up  to  the  purchase  of  a  product  or  service,  and  also  the  actual   purchase  of  the  product.     2. Consuming  –  This  activity  revolves  around  how,  where,  when  and   under  what  circumstances  the  product  or  service  obtained  was   consumed17.       3. Disposing  –  This  action  is  where  the  product  or  service  is  consumed   and  the  consumer  wishes  to  dispose  of  the  product  or  service18.     3.1.1. Consumer  Decision  Process  Model     Deriving  from  The  John  Dewey  model  (Dewey,  1910)  Blackwell  et  al   (2006)  describes  the  decisions  making  process  as  a  road  map  of   consumers  minds  that  marketers  can  use  to  help  them  guide  the  product   mix.  The  purpose  of  this  model  (figure  1)  is  to  capture  the  activities  that   occur  when  decisions  are  made,  showing  how  internal  and  external   forces  affect  the  way  consumers  think,  evaluate,  and  act.       From  this  model  it  is  evident  that  consumers  go  through  seven  different   stages.  The  stages  that  will  be  explored  further  for  the  purpose  of  this   study  are  the  need  to  search  for  information  and  also  post  consumption   evaluation.  In  order  to  better  understand  why  consumers  use   TripAdvisor  and  similar  websites  it  is  important  to  explore  why  there  is  a   need  to  search  for  information  before  making  purchases  and  also  why   people  take  part  in  post  consumption  evaluations.                                                                                                                     16    Blackwell  et  al,  (2006)   17  Blackwell  et  al,  (2006)   18  Blackwell  et  al,  (2006)     17  
  • 26. LITERATURE  REVIEW     3     Figure  1:  Decision  Making  Process     Pre-­‐ Purchase,   Post-­‐ Need   Search  for   Purchase   Recognition   information   evalation  of   Purchase     Divestment     evaluation   alternatives     Adapted  from  Blythe,  2008     3.2. Search  for  Information     This  activity  takes  place  before  making  a  purchase,  and  where  websites   such  as  TripAdvisor  play  a  huge  role  in  making  purchases.  Both  Blythe   (2008)  and  Blackwell  et  al  (2006)  agree  that  this  activity  draws   information  from  internal  and  external  sources  (figure  2).  Internal   sources  tend  to  derive  from  the  consumers  memory,  having  purchased   that  item  previously  or  from  previous  experience.  However  if  this  is  not   the  case,  then  internal  sources  may  not  be  sufficient,  which  then  makes   way  for  secondary  sources.       Blythe  (2008)  and  Blackwell  et  al  (2006)  agree  that  information  sought   by  consumers  can  either  be  marketer-­‐dominated  or  non-­‐marketer   dominated:     1. Marketer  domination  –  Blythe  (2008)  describes  this  as   information  that  is  shared  via  advertising,  brochures,  websites,   sales  people  and  so  forth.     2. Non-­‐marketer  domination  –  This  is  information  is  shared  via   friends,  family,  opinion  leader  and  so  forth  (Blythe,  2008).  This     18  
  • 27. LITERATURE  REVIEW     3     type  of  information  is  shared  through  word  of  mouth  and  word   of  mouse  methods.       Pre-­‐purchase  activities  such  as  internal  and  external  research  are   important  for  consumers  as  people  often  discuss  their  experiences  when   purchasing,  using  and  disposing  a  product.    These  discussions  are  vital  to   TripAdvisor  and  similar  websites  as  they  are  the  spine  of  the   organisation.       Blythe  (2008)  and  Blackwell  et  al  (2006)  state  that  non-­‐marketer   dominated  information  is  more  powerful  that  market  dominated   communications  as  word  of  mouth  interactions  it  involves  discussion   between  a  number  of  parties,  allowing  a  two  way  communication.  There   is  also  a  belief  that  sources  such  as  family  and  friends  are  more  trusted   because  they  have  a  non-­‐profit  motive.       Figure  2:  Information  Searching   Internal  search     Information   gap  /  new   Information   purchase   gaps   problem   reduced  but   Marketer  generated     not   eliminated     External  search   Non-­‐marketer     generated       Adapted  from  Blythe,  2008             19  
  • 28. LITERATURE  REVIEW     3     3.3. Post-­‐Consumption  Evaluation     As  seen  from  the  Consumer  Decision  Process  Model  (figure  1)  a   fundamental  part  of  our  purchasing  process  involves  the  need  to  search   for  information  about  products  and  services.  This  information  has  to   originate  from  somewhere,  thus  making  way  for  post-­‐consumption   evaluation.  This  step  of  the  model  takes  place  after  the  consumer  has   purchased  and  consumed  the  product  or  service.  Blackwell  et  al  (2006)   states  that  depending  on  consumption  experience  the  consumer  will   either  change  their  attitude  towards  the  object  or  reinforce  it.       These  attitudes,  as  discussed  by  Blythe  (2008)  and  Blackwell  et  al  (2006)   tend  to  revolve  around  the  satisfaction  or  dissatisfaction  of  the  product  or   service  that  the  consumer  has  experienced.  Therefore,  there  is  a  great   importance  that  organisations  pay  great  attention  to  ensuring  the   consumers  are  always  satisfied.  If  organisations  fail  to  comply  with  this   then  the  damage  can  be  severe  for  the  organisations  image.       3.3.1. Importance  of  Customer  Satisfaction     There  is  now  a  great  importance  for  companies  to  be  concerned  about   customer  satisfaction.  Why  this  great  importance?  The  most  obvious   reason  as  highlighted  by  Blackwell  et  al  (2006)  is  the  need  for  repeat   business.  However  there  are  also  other  important  points  that  Blythe   (2008),  Blackwell  et  al  (2006)  and  Evans  et  al  (2006)  need  to  be   considered:     1. Influence  –  Not  only  is  the  individual’s  satisfaction  and  repeat   business  important  but  also  it  is  the  individual’s  influence  over   other  people  purchasing  habits.  In  other  words  if  a  consumer   has  a  bad  experience  not  only  is  he  unlikely  to  go  purchase  or   use  that  organisations  service  again  but  he  will  also  deter  other   people  within  his  friends,  family  and  peers  circle  from   purchasing  from  that  organisation  as  well.  This  in  turn  can  be   very  costly  for  an  organisation,  as  Blackwell  (2006)  states  that     20  
  • 29. LITERATURE  REVIEW     3     it  costs  an  organisation  twenty  times  more  to  attract  new   customers  than  to  retain  loyal  customers.       2. Satisfaction  shapes  Word-­‐of-­‐Mouth  and  Word-­‐of-­‐Mouse  –  This  is   by  far  the  most  important  factor  as  not  only  does  satisfaction   shape  future  purchase  but  also  the  way  it  controls  the  way   people  communicate  about  the  product  and  service.  As  stated   in  the  first  point  a  consumer  with  a  bad  experience  will  be   more  likely  to  discourage  friends,  family  and  peers  from   purchasing  from  an  organisation  if  they  have  a  bad  experience.   Blackwell  et  al  (2006)  also  highlights  that  consumers  are  more   likely  to  discuss  bad  experiences  and  go  to  great  lengths  to  do   so  than  sharing  positive  experiences.     3. Complaints  and  lawsuits  –  In  addition  to  deterring  customers   and  stirring  bad  word  of  mouth,  satisfaction  can  also  lead  an   organisation  to  be  faced  with  unwanted  complaints  and   lawsuits.  Not  only  is  this  damaging  to  an  organisation  but  also   it  brings  some  unwanted  attention  to  the  company  causing   even  more  negative  word  of  mouth.  However  this  time  it  would   be  more  public  and  more  people  will  hear  and  talk  about  it.       3.4. Word-­‐of-­‐Mouth     Blythe  (2008),  Fill  (2011),  and  Silverman  (2001)  all  agree  that  word  of   mouth  is  the  most  powerful  force  in  the  marketplace.  To  reinforce  this   statement,  Silverman  (2001)  includes  a  quote  from  Dr.  Paddi  Lund  where   he  says:       “Even  those  deaf  to  the  bragging  cries  of  the  marketplace  will  listen  to  a   friend”     Silverman  (2001)  defines  word  of  mouth  as  the  communication  about   products  and  services  between  independent  consumers  who  have   nothing  to  do  with  the  organisation.  This  communication  also  takes  place     21  
  • 30. LITERATURE  REVIEW     3     in  a  medium  that  is  independent  from  the  organisations,  either  as  one-­‐ way  testimonials  or  conversations.       The  development  of  the  Internet,  as  discussed  in  section  1  of  this  study,   has  meant  that  word  of  mouse  communication  is  now  being  used  as  a   platform  for  consumers  to  communicate  about  their  experiences.  Fill   (2011)  has  also  highlighted  that  this  will  be  the  future  of  word  of  mouth.   Mintel  (2011)  has  also  state  that  more  people  are  now  finding  themselves   within  easy  access  to  the  Internet.       Both  Blythe  (2008)  and  Silverman  (2001)  state  that  word  of  mouth  is  a   powerful  persuader,  as  it  is  not  canned  like  most  company’s   communications.  They  both  also  believe  that  it  is  the  most  honest   medium  as  it  is  customer  driven  and  there  is  no  beneficial  gain  when   communicating  their  experiences.  The  greatest  advantage  to  using  word   of  mouth  is  that  it  feeds  on  itself.  This  opinion  is  also  shared  with  Blythe   (2008),  Fill  (2011)  and  Silverman  (2001).  For  example  if  ten  consumers   had  ten  experiences,  in  total  they  would  have  had  a  hundred  experiences   and  so  on.  This  is  very  effective  as  it  helps  create  a  dissonance  effect   because  “everybody  is  talking  about  it”,  which  in  turn  helps  provide   additional  confirmation  to  a  consumer  looking  to  purchase  a  product.       It  is  also  worth  mentioning  that  Blythe  (2008),  Fill  (2011)  and  Silverman   (2001)  all  highlight  that  word  of  mouth  can  also  be  either  good  or  bad.   They  state  that  bad  reviews  travel  faster  than  good  reviews.  People  are   also  more  likely  to  talk  about  their  bad  experiences  more  so  than  their   good  experiences.  A  finding  from  the  Coca  Cola  Company  in  198119  found   that  12%  of  people  told  20  or  more  people  about  the  companies  response   to  their  complaints,  where  are  those  who  were  satisfied  only  told  a   median  of  four  to  five  others  about  their  experiences.                                                                                                                       19  Blythe,  2008     22  
  • 31. LITERATURE  REVIEW     3     3.4.1. Good  vs.  Bad  reviews         By  now  this  study  has  discovered  that  word  of  mouth  is  not  the  same  as  it   comes  in  different  forms,  either  negative  or  positive.  Silverman  (2001)   expands  this  further  by  introducing  the  idea  that  word  of  mouth  has  got   nine  different  levels.  These  levels  range  from  minus  four  (negative  word  of   mouth)  to  plus  four  (positive  word  of  mouth).       3.4.1.1. The  Minus  Levels     -­‐4. Minus  four  –  Described  by  Silverman  (2001)  as  the  level  where   people  are  all  complaining  about  a  product  or  services.  These   complaints  are  so  severe  that  they  are  in  fact  a  public  scandal.   A  recent  example  of  this  type  of  level  was  the  Toyota  scandal   where  several  of  their  cars  had  to  be  recalled  due  to  faulty  gas   pedals.  This  level  is  very  hard  to  survive,  and  often  the  only   ways  companies  survive  is  because  the  company  is  so  trusted   or  favoured  that  nothing  can  taint  their  image.     -­‐3. Minus  three  –  Silverman  (2001)  states  that  although  it  is  similar   to  minus  four,  in  this  level  people  and  ex-­‐consumers  go  out  of   their  way  to  spread  bad  word  of  mouth  about  a  product  or   service,  however  the  level  of  scandal  is  not  as  public  as  minus   four.     -­‐2. Minus  two  –  This  level  involves  customers  having  rants  about  a   product  or  service  mainly  bad  mouthing  the  brand  (Silverman,   2011).  This  level  still  has  a  negative  effect  on  sales  making   them  erode  however  not  as  fast  as  minus  three  and  minus  four,   as  consumers  are  still  not  actively  seeking  to  spread  bad  word   of  mouth.     -­‐1. Minus  one  –  At  this  stage  Silverman  (2001)  explains  that  people   are  not  complaining  about  a  product  or  service.  Unless  they  are   questioned  about  the  product  or  service,  only  then  will  the  talk   about  their  bad  experience  with  the  product.  This  level  is  also   not  as  damaging  as  the  other  minus  levels  as  people  still   purchase  the  product  despite  the  negative  word  of  mouth.       23