Dissertation final draft

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

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

08 Fall

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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

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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

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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.

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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

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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.

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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

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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


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

Chapter 1

08 Fall

INTRODUCTION 1

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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

INTRODUCTION 1

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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

INTRODUCTION 1

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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

INTRODUCTION 1

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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.

RESEARCH METHODOLOGY 6


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.

Chapter 2

08 Fall


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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


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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


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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:


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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


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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.


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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.


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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


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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.


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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.

16 LITERATURE REVIEW


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;

Chapter 3

08 Fall

LITERATURE REVIEW 3

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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)

LITERATURE REVIEW 3

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Figure 1: Decision Making Process

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

Need Recognition

Search for information

Pre-‐Purchase, evalation of alternatives

Purchase Post-‐

Purchase evaluation

Divestment

LITERATURE REVIEW 3

19

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


Information gaps

reduced but not

eliminated

Internal search

Marketer generated

Non-‐marketer generated

External search

Information gap / new purchase problem

LITERATURE REVIEW 3

20

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

LITERATURE REVIEW 3

21

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

LITERATURE REVIEW 3

22

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

LITERATURE REVIEW 3

23

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.

LITERATURE REVIEW 3

24

3.4.1.2. The Plus Levels 1. Plus one – Silverman (2001) states that this level is where

consumers only say nice things about a product or service

when asked. This level good for conventional marketing,

because if executed correctly it could increase the product from

a level one to a level 2.

2. Plus two – At this level people are raving about a product or

service and are actively seeking to inform people about how

wonderful a product or service was (Silverman, 2001). At this

level an organisation would damage it resources to invest in

conventional marketing. As discussed before nothing beats the

word of mouth recommendations from a friend, family or peer.

Therefore any money spent on conventional marketing at this

stage would be wasted.

3. Plus three – This level is similar to level two however Silverman

(2001) highlights that at this level people start going out of

their way to communicate their positive experience about a

product or service. Silverman (2001) also states that at this

level people will be talking about products and services at

places such as social gatherings, business gatherings and other

important events.

4. Plus four – This level is the optimum level that a product and

service would like to experience. Silverman (2001) highlights

that at this level a product or service is being continually talked

about that people are asking each other about and also getting

more than one good review about the product from various

people. There is also a great number of publicity surrounding

the product encouraging people to purchase the product or

service. Silverman (2001) also states that although this is

where every product aims to be, this is where most products

reach the destruction and demise, as it is pivotal that people

expectations are managed and that the product or service will

be expected to deliver more than expected from now on.

LITERATURE REVIEW 3

25

3.4.1.3. Level Zero At this level Silverman (2001) sates that people are buying your

product but there is either a bad or a good attitude towards the

product. However, anything bad affecting the image can cause it to

lapse into the negative levels causing its destruction. On the other

hand with the correct marketing it could also help push the

product into the first two plus levels of the scale making people

talk about the product more and increasing sales.

3.5. Cognitive Dissonance Blythe (2008) describes cognitive dissonance as the psychological tension

that two distinctive decisions or ideas can affect consumer behaviour. In

1950, Carl Festinger conducted an experiment to see what motivated

people to lie. In this experiment students were asked to do a boring task

and then later recruit their friends to do the same experiment. However,

they were paid sums of money to lie whilst recruiting telling people that

the activity was fun. Carl Festinger justified these actions by stating that

students could not justify their statements as they themselves believed

this lie as they got paid.

In order to reduce cognitive dissonance Blythe (2008) and Evans et al

(2006) have highlighted various ways that can be considered when it

comes to dissonance.

Figure 3: Model on Cognitive Reduction

Expected outcome

Post-‐purchase dissonance

Actual outcome

Ignore dissonant information and seek constant information

Distort the dissonant information

Minimize the importance of the issue

Change ones behaviour


LITERATURE REVIEW 3

26

1. Ignore dissonant information and seek constant information –

According to Blythe, (2008) this outcome is where a consumer has

made a purchase and then informs a friend or family member of

how bad the services or product is. However, the friend here

choses to ignore this new information and perform their own

research surrounding the product or service to confirm the

reputation of the supplier. This outcome can be linked to the

minus one level from the word of mouth levels theory by

Silverman (2001)

2. Distort dissonant information – Blythe (2008) states that this

outcome is somewhat similar to the first however, here the

consumer agrees with the information that is said about the

supplier’s bad reputation, and thinks that this bad reputation will

not have an effect on the products performance. This can be

related to TripAdvisor they are currently experiencing some

negativity towards their brand, however a large number of people

still use it.

3. Minimize the importance of the issue – This again is very similar to

the previous outcome, however at this stage the consumer agrees

that the supplier has a bad reputation, but believes that this has no

effect on the product itself that is manifested perfectly all right

(Blythe, 2008).

4. Change one’s behaviour – This outcome is where the consumer is

completely not satisfied with the product or service and goes back

for a refund and makes no further purchases of it in the future

(Blyhe, 2008).

3.6. Summary In summary it is fair to say that word of mouth is a very important aspect

for any organisation that wishes to strive in the economy. It is also

evident that customer satisfaction helps shape the way word of mouth is

communicated in terms of negative and positive reviews. Websites such

as TripAdvisor are directly affected by word of mouth, as any bad

LITERATURE REVIEW 3

27

repercussions can damage the image of the organisation. From chapter 1

section 1, it was evident that companies and consumers about the validity

of their reviews and their accuracy are attacking TripAdvisor.

By conducting this literature review this study has learned a lot about the

effects of bad reviews and customers satisfaction, which in turn has

helped in answer initial questions revolving objectives 1 and objectives 3,

which can be found in section 1.2.1. This literature review has made it

more clearly how consumer-‐purchasing behaviours are affected via good

and bad reviews through the nine levels defined by Silverman (2001). In

addition to this, the study has also discovered that consumers tend to

trust reviews and recommendation made by family, friends and other

peers over market-‐dominated methods as highlighted by Blythe (2008)

and Blackwell et al (2006).

RESEARCH FINDINGS 28


Research Findings Chapter 4 Introduction 29; Microsoft Excel 29; Response Rate 29; The Respondents 29; Before Purchasing a Holiday 30; Recent Holidays 31; TripAdvisor 33; Existing Reviews 33; Word of Mouth 36; Recommendations from Respondents 39

Chapter 4

08 Fall

RESEARCH FINDINGS 4

29

4. Introduction

During this chapter of the study, an outline of the data software package used will be provided with a reason as to why it was chosen. This section will also

focus on findings from the survey carried out on the sample population

highlighted in chapter 2.

In addition to interpreting the data collated, this chapter will also focus on

evaluating these findings and integrating them with the secondary research

carried out in chapter 3 in order to help give an in depth analysis from which

recommendations and a conclusion can be drawn.

4.1. Microsoft Excel In order to illustrate the findings from the survey in a presentable way that

looked both professional and easy to read the software package Microsoft Excel

was utilised (Appendix B). Excel was chosen over other software’s as it is a very

straightforward to use, presenting data in a professional and easy to read

manner.

4.2. Response Rate As set out in chapter 2, the response that this study was seeking was 40%,

however with 130 respondents, the response rate to the survey was in fact 87%.

Stopping people in the middle of Oxford Street, Bond Street and Tottenham

Court Road proved extremely difficult with many people rushing to go where

they needed to be. However, as the interviewer was approachable, this made the

task simpler to carry out.

4.3. The Respondents (Appendix B, page 50-‐51) This section of the study will focus on the respondents that were surveyed. The

majority of the respondents that took part in this survey were mainly female.

They represented 66% of the sample population, as they were more responsive

to the survey. The main age group that most of the people surveyed derived from

people aged 40-‐44 as they represented 24% of the sample population. Although

RESEARCH FINDINGS 4

30

the survey was targeted towards people aged 25-‐44, there was a number of

people aged 18-‐24 sampled, representing 4% of the findings. Other age groups

all represented more or less equal share in the survey with each group having

around 13-‐15% input into the findings from the survey.

4.4. Before Purchasing a Holiday (Appendix B, page 52-‐53) These questions as a whole were aimed at finding out which websites the sample

population used to conduct their research surrounding holidays before they

made a purchase. Overall the survey found that around 89% of the sample

conducted research-‐surrounding holidays before they made a purchase by

looking at reviews. In addition to this, the survey also found that 55% of the 89%

of people who conducted research used TripAdvisor as their main source for

information. It is fair to say that TripAdvisor was the most popular as the

majority of the respondents used it, and any other competitor was far behind.

With 10% of the sample choosing Thompson, this was the only other popular

website that the survey used for research. The rest of the competitors all had less

than 10% proving to be less popular with the sample.

There are various reasons surrounding this, for example TravelRepublic and

IceLolly are both budget websites displaying “Party Destination” holidays,

therefore proving to be more popular with the younger generations, aged 18-‐24.

This demographic was not represented fairly in the survey as they only

represented 4% of the sample. TripAdvisor certified to be more popular with

people aged 30 plus.

The 11% of the sample population sampled who did not take part in researching

for holidays online more or less shared the same reasons. From analysing their

comments, the majority of people sampled stated that the do not research the

holiday because it is a destination that they have previously been to, and/or their

home country. Others stated that they do not conduct research online, as they

preferred to go into travel agents and book their holiday from them as they feel

that they cannot trust the Internet for booking holidays.

RESEARCH FINDINGS 4

31

4.5. Recent Holidays (Appendix B, page 54-‐58) The purposes of these questions were to help get a better understanding

about the respondents recent holidays and how they went about

purchasing a holiday. From the sample questioned, 72% of the people

surveyed claimed that they had been on holiday in the past 12 months,

with 94% of them researching about the holiday before purchasing.

However, this conflicts findings made in question three where 89% of the

people said they researched a holiday before purchasing. This may

because people may have interpreted question 4a as any type of research

and not just online reviews.

This question was also designed to find out overall what the sample

population thought about the information that they found before

purchasing. The general attitude amongst the sample population was very

positive, with 85% of the sample rating information they found at a 6 and

above. From the people sampled, 20% claimed that they were very

satisfied with information they found compared to the 2% that were

dissatisfied. When the sample was asked if this information played a role

in their decision to purchase the holiday, 57% of the respondents said

yes, and 28% said partly.

The survey also found that the majority of people surveyed also stated

that the reviews that they found were positive. Around 22% of the people

surveyed said that reviews were mostly good. The relation from how

satisfied the respondent was with the information found online to how

good the information was provides a strong correlation (figure 4). The

majority of people sampled (84%) thought that the feedback that they

found online was mainly positive and good.

RESEARCH FINDINGS 4

32

Figure 4. Relation Between how satisfied the sample were with information they

found online compared to how good/bad the information was

Only 2% of the people sampled thought that the reviews were mainly bad,

this may be related to the websites that they used for example those less

popular as highlighted in section 4.4. There could also be a strong relation

between TripAdvisor and those people in the sample who have been

pleased with the information they found as it was the most popular

website to use.

4.6. TripAdvisor (Appendix B, page 59) When asked whether or not the sample population used TripAdvisor to

conduct any research towards purchasing a holiday, 51% of the sample

stated that they did not use TripAdvisor. The findings for this question

were more or less 50-‐50, this helped the study getting a good view as to

what people thought when it came to why they did and why they did not

use TripAdvisor.

1 -‐ Very Disati`ied / Mostly Bad

2 3 4 5 6 7 8 9 10 -‐ Very Sastis`ied / Mostly Good

Satisfaction Information Linear (Satisfaction) Linear (Information)

RESEARCH FINDINGS 4

33

There was 49% of the sample population who used TripAdvisor to

research holidays before making a purchase. In summary to the opinions

expressed the majority of people who used TripAdvisor did so because

they had been recommended by a friend to use the website. Others also

said that it was one of the first options that appeared after using a search

engine such as Google. A minority of people sampled said they had

previously used the website and were pleased with information they

found. They also said that after returning from holiday they went back to

TripAdvisor to add their own feedback to help others.

Various people from the sample also stated that they liked using

TripAdvisor and websites that are similar because they felt that the

information was more accurate than of what you would find in a travel

agent. This was due to them thinking that travel agents are more likely to

be biased to selling and making profit, whereas people posting reviews

online had not financial gain from this.

The remaining 51% of the sample that did not use TripAdvisor stated that

they did not trust the website after hearing some negative things being

said about the website from friends and family. Three to four people

stated that they did not even know what TripAdvisor was. However the

majority of people shared the opinion that the information on

TripAdvisor is biased to push and encourage sales, claiming that people

put on false information just to get people to buy. This was backed up by a

couple of people who stated that they had seen good review about a trip

however, the trip turned into a total nightmare.

4.7. Existing Reviews (Appendix B, page 60-‐65) The following question was designed to see how strongly the respondents

agreed or disagreed with a certain statement or sentence. There were six

different statements in this questions whereby respondents had to select

whether they agreed or disagreed with the statement.

RESEARCH FINDINGS 4

34

1. Q6a (Appendix B, page 60) – This statement asked the sample how

strongly they agreed or disagreed to being more likely to purchase

a product after reading a positive review about a product. The

outcome was pretty positive, 30% of people strongly agreed that

they were more likely to purchase a product after reading a

positive review compared to the 11% who strongly disagreed.

There was a moderate amount of people (24%) who neither

agreed nor disagreed. With the majority of people agreeing and

strongly agreeing with this statement it is evident that people do

trust good reviews they find on products, and only a minority of

people that doubt these feedbacks and chose to ignore them.

2. Q6b (Appendix B, page 61) – This statement questioned whether

the sample agreed or disagreed that after reading a bad review

about a product they are less likely to buy it. Relating back to

Silverman (2001) theory on the nine levels of word of mouth, the

findings from this statement can be related to the theory. There

was a number of people strongly agreed with this statement, in fact

27% of the population strongly agreed, and 21% of the population

just agreed. These people can relate well to the minus 4 and 3

levels of Silverman (2001) for being put off purchasing a product

due to all the negative and public scandals. However, 20% of

people neither agreed nor disagree with this statement. A further

19% disagreed with this statement, and 13% strongly disagreed.

These people relate to levels minus 2, and 1 of the Silverman

(2001) theory as although there is bad word of mouth surrounding

the product they are still likely to purchase it.

3. Q6c (Appendix B, page 62) – The main purpose of TripAdvisor is to

provide people with reviews about holidays, however if people do

not trust these reviews then what is the purpose of them. This

statement was asked in order to find out the sample populations

thoughts and attitudes towards reviews found on TripAdvisor.

Less than half of the population sample strongly agreed to trust

RESEARCH FINDINGS 4

35

reviews made online on TripAdvisor. In actual fact around two

thirds of the sample both agreed and strongly agreed with

statement. Only 9% of the population strongly disagreed with this

statement, and a further 11% just disagreed. This is relatively low

compared to the amount of people that trust online reviews. This

conflicts findings in question five where people stated that they did

not use TripAdvisor because they felt like they did not trust the

website, whereas in this question 48% of people strongly agreed

with trusting online reviews. However, did the respondents solely

not trust TripAdvisor?

4. Q6d (Appendix B, page 63) – Feedback and reviews can be found in

many places, such as tour advisors, organisations and online. When

the sample population were asked whether or not they trusted

online feedback over feedback provided from an organisation 66%

of them strongly agreed with the statement. This was contrary to

the 1% that completely disagreed and 2% whom just disagreed.

From this it is evident that the people sampled for this survey

preferred to find their information online rather than go into the

store. This can be related to findings from question 5a where some

of the sample population actually stated that organisations are

more likely to be biased with feedback, as they need to make

profits. Whereas, a person posting a review online is less likely to

be biased or lie because they are not gaining anything financially

from the feedback.

5. Q6e (Appendix B, page 64) – In order to help reinforce the previous

statement and ensure that the sample population had answered

correctly, this statement was asked in order to confirm that the

sample believed that online reviews are trustworthy and honest.

This statement also targeted the beneficial aspects that

organisations may have for making biased statements. In fact 43%

of the sample population strongly agreed that online reviews are

honest and trustworthy because people posting them do not have a

financial motive behind the statements. On the contrary, only 10%

RESEARCH FINDINGS 4

36

of the sample disagreed with this statement. This therefore

reinforces the idea that people do tend to trust others when it

comes to recommendations and also Blythe (2008) and other

theorist’s idea that word of mouth is very powerful. It also helps

back up Silverman (2001) levels theory surrounding word of

mouth where he stated that organisations at the plus level 2 stage

or above cannot reply on conventional marketing, as it is word of

mouth only that can increase their profits.

6. Q6f (Appendix B, page 65) – In order to help expand on the

previous two statements and find out whom in particular the

sample population trust more this statement seemed to best to fit

to do so. The general outcome of this question was that the

majority of the sample (48%) stated that they neither agreed nor

disagreed that they are more likely to trust a family member than

an unknown user. This means that the sample population are likely

to trust both their family or friends and also unknown users online.

A small selection of the population (10%) of the population

strongly agreed that they trusted recommendations made by

family and friends over unknown users. This was relatively a small

amount compared to the 21% of the sample who said they strongly

disagreed with this statement. From this statement and finding it is

evident that people do base a lot of trust on people they know and

others they do not when it comes to getting recommendations

about products they want to purchase.

4.8. Word of Mouth (Appendix B, page 66-‐71) This question was placed in the survey in order to get an understanding

about the respondent has knowledge and understanding of word of

mouth. Some of the statements were also designed to find out whether

the respondent took part in word of mouth. There were six statements

that were asked in this question where the respondents had to strongly

agree or strongly disagree with a statement.

RESEARCH FINDINGS 4

37

1. Q7a (Appendix B, page 66) – This statement was used in order to

get a better understanding whether or not the respondent had any

knowledge about word of mouth and what it is. Overall 36% of the

people fro the sample strongly agreed that they had a knowledge

about the word of mouth concept compared to the 1% whom

strongly disagreed. This meant that overall people from this

sample had a good general understanding of word of mouth and

were confident in their knowledge. Only 23% neither agree nor

disagreed, which implied that they somewhat know what word of

mouth is but they are unsure about it. 2. Q7b (Appendix B, page 67) – One of the issues that were raised in

the literature review section was the way word of mouth is spread.

It became evident that it was less likely for a person to share their

positive experiences with people. In order to see if this was still

viable the respondents were asked whether they strongly neither

agreed nor disagreed with sharing their positive feedback with

their peers, family or friends. The overall findings showed that

62% of people neither agreed nor disagreed with this statement.

This can also be linked to Silverman (2001) and his theory with

the various levels of word of mouth, where people in level 1, do not

go out of their way to really share information unless they are

asked. Only 10% of the sample population actually said that they

strongly agreed with this statement meaning that they probably fit

into level 3 or even 4 of the levels highlight in Silvermans (2001)

theory. Others however, felt strongly about disagreeing with

statement as 27%, almost three time more people, from the

sample said that they do not bother in sharing information. 3. Q7c (Appendix B, page 68) – Expanding on the previous statement,

there was also a point mentioned in the literature review that bad

reviews are more likely to be spread. In order to verify this

statement, the respondents were asked to what extend do they

strongly agree or strongly disagree that they bad feedback about

bad experiences. It was found that 48% of the population surveyed

RESEARCH FINDINGS 4

38

strongly agreed that they are more likely to talk about bad

experiences, compared to the 10% who strongly disagreed. This

therefore confirms the theories surrounding how important

customer satisfaction is, to ensure bad word of mouth is kept away

from an organisation. 4. Q7d (Appendix B, page 69) – This statement was asked in order to

get a view on whether the sample population took part in writing

out good reviews themselves about product or services. Similar to

7b, the responses to this statement were more or less similar. The

majority of respondents (44%) neither agreed of disagreed with

the statement. Only 20% of the sample strongly agreed to post

positive feedback on websites as an anonymous user. The reason

why they are both similar was because relatively the same amount

of people neither agreed nor disagreed on sharing positive

feedback about services to their peers, friends and family. 5. Q7e (Appendix B, page 70) – In order to find out if the respondents

took part in writing bad reviews as anonymous users, this

statement was included in the survey. In relation to 7c, the

similarity between both statements again was very close. In fact

44% of people strongly agreed with sharing bad information about

experiences with products and services, in contrast to the 9% that

said they did not. This again goes to show how much of an

importance customers satisfaction is to organisations, because if a

customer is not satisfied then bad feedback and word of mouth

will spread like wildfire. 6. Q7f (Appendix B, page 71) -‐ The final statement was designed to

help find out how accurate the sample population who posted

comments were. There seems to be a conflict concerning the

accuracy of online reviews and feedback with regards to the

sample, this is why this statement was necessary. Two thirds of the

sample population strongly agreed they provide accurate and

honest information when posting online. From the sample

population only 6% of the respondents admitted to making false

RESEARCH FINDINGS 4

39

word of mouth when posting anonymously online. This statement

also helps put into prospective the amount of accurate information

that people may find with reviews online. It is fair to say that from

the people sampled in this survey that most reviews and feedback

we find online is likely to be accurate. This finding should also help

reassure people who do not trust reviews and feedback online by

providing them with a reason to believe otherwise.

4.9. Recommendations from respondents The final question that the respondents were asked was to do with what

they thought websites such as TripAdvisor, and TripAdvisor itself need to

change or implement to ensure that consumers are always satisfied with

their service. The main concern amongst the majority of the respondents

was accuracy and how true comments and feedback were on the

websites. Therefore one of the main points highlighted by the sample

population was a method to analyse the accuracy for comments posted

before they went live on the website for people to see.

Other people stated TripAdvisor and similar websites needed to prohibit

anyone from posting comments on the websites, unless they are verified

members and have the right to do so. There was a small minority of

people who left this section of the survey blank.


Recommendations and Conclusion Chapter 5 Introduction 41; Conclusion 41; Recommendations 44; Areas for Possible Research 44

Chapter 5

08 Fall

RECOMMENDATIONS AND CONCLUSION 5

41

5. Introduction

In this final section of the study an overall conclusion will be written, hopefully tying in both findings made from the survey and also information

found from the literature review. This section will not only help in bringing

the study together but also help give an overall feel of everything that has

been discovered in the study and also answer the objectives that were set out

in chapter 1.

5.1. Conclusion Overall the results from this study have managed to fulfil the objectives

that were first set out in chapter 1 (Section 1.2.1.). A greater

understanding surrounding word of mouth and its affects on consumer

behaviour has also been gained from this study. By studying consumers

attitudes and opinions, this study has helped to illustrate, how a small

sample of people are influenced by word of mouth when it comes to

purchasing not only their holidays but also products and services.

There was a lot of information that was obtained with regards to existing

theories surrounding the topics of interest, such as word of mouth,

consumer behaviour, customer satisfaction and so forth.

From the secondary research gathered it was highlighted that word of

mouth is one of the most powerful marketing tools that an organisation

can have on its side. In addition to the statements made by Blythe (2008),

Evans et al (2006) and Silverman (2001), the consumers sampled as part

of this studies primary research also confirmed this. The general findings

from the consumers sampled were that they were less likely to purchase a

product with bad reviews. This study also found that from the sample

population, consumers are more likely to believe a friend or colleagues

recommendation for a product or service a product. The study also found

that the majority of the people sampled are likely to take on board

comments from anonymous users about a product or service.


42

Secondary research also found that word of mouth has various levels of

influence on consumer that were highlighted by Silverman (2001). The

minus levels being where companies have got mild to severe bad word of

mouth surrounding their organisation and the plus levels is the contrary.

Primary research helped put this theory in perspective, as many people

agreed that they are likely to purchase and talk about a product with good

reviews, which confirm Silverman (2001) and his theory surrounding the

positive levels of word of mouth. Furthermore, it also confirmed that

people are more likely to talk badly about products and services causing a

scandal, which ties in with the minus levels of his theory.

Primary research also helped in finding out what the sample population’s

intentions on using websites such a TripAdvisor were. With the majority

of people stating that they these websites simply for researching and

finding reviews on holidays that they have not been on before. Many

people however also stated that they did not use these websites as they

did not trust them, or because the holidays that they had been on were

either for business purpose or a destination that they have previously

been to. Another discovery that was made was the fact tat people did not

trust travel agents for advice as they felt they were biased with

information due to the financial benefit of selling. Although TripAdvisor

has received some bad press in recent times many people did state that

they were recommended to use the website via a friend or colleagues.

It became apparent, from the primary research, that many of the

consumers from the sample also took part in writing comments and

feedback themselves. The main finding here however was that the

respondents were more likely to talk about bad reviews than good

reviews. Fellow colleagues or consumers can link this to level plus one

where people who have a good experience are only likely to talk

positively if asked. Whereas, with regards to the bad experience that can


43

be linked to levels negative two and even three with people just spreading

bad comments about a product or service.

Theorist also highlighted customer satisfaction as a main point. They

stated that a customer is more likely to keep in mind bad experiences and

talk about it then they are to do the same for good experience. Primary

research from the sample population confirmed this as respondents

stated that they are more likely to post bad reviews online then good

reviews.

It is evident that by now it is clear that the main finding is that people are

more likely to talk about their bad experiences more freely than those

who have a good experience. In addition to this, this statement can be

applied for services, products and organisations. The more bad word of

mouth each of those elements receives, the more likely they are to spiral

down on the minus levels ladder of word of mouth. Whereas if these

elements are receiving more positive word of mouth, the more likely it is

that consumers are more willing to purchase from them and in turn help

them reach that pinnacle place of the plus levels on the word of mouth

ladder.

Primary research also helped this study in getting some general ideas and

opinions from the sample population on what they felts websites such as

TripAdvisor should implement to make their services better. The general

feedback was to implement some sort of accuracy measure for every

comment that was getting posted, to be checked and verified by someone

before it goes live on the website. However, this study also found that the

majority of people from the sample also felt that nothing could be

recommended. This was due to the fear of negative comments being

disregarded completely and then comments becoming biased to selling

holidays and not actually showing consumers the truth.


44

5.2. Recommendations The main purpose of this study was to come up with some

recommendations that TripAdvisor and companies alike can take on

board and hopefully expand on and implement into their services. With

all the research that has been carried for this study hopefully the

following recommendations will be suitable for websites such as

TripAdvisor to use.

1. There was much concern over the accuracy of reviews and

feedback. In order to reduce this distress TripAdvisor and

companies alike need to introduce some form of security measure

where comments are checked and verified by people that work for

the organisation to ensure that the comments are accurate and

truthful. However, there should also be a balance for this to ensure

that the organisation does not make comments biased to sell more.

2. It was also evident that not many people feel the need to spread

good news about experiences. In order to help promote this

companies such as TripAdvisor should put in place some sort of

incentive to encourage people to provide positive feedback on

their websites. In addition to this they must also ensure that that

these comments are truthful and not simply there because the user

is going to benefit.

5.3. Areas for possible research As this was a small study there are plenty of possible areas that can be

research further.

1. Conduct that same research or similar to this one on a much larger

scale. This will help in expanding on findings and also potentially

reach more recommendations and also learn more about

consumer behaviour with regard to word of mouth.


45

2. The media can influence people’s word of mouth. The media tends

to talk mainly about negative stories. This research will therefore

be interesting to see how these stories affect word of mouth and

also word of mouth. This research will also help expand on the

nine levels of word of mouth theory by Silverman (2001).

3. This research was mainly targeted towards holidays; therefore an

expansion on this would be to potentially look at other markets

and how word of mouth affects consumer behaviour in those

markets. This would help get a better understanding of other

markets and possibly reach new findings and conclusions.

46

Appendix A -‐ Consumer Attitude to Online Reviews

This questionnaire has been designed to measure consumer attitudes to online

reviews, and in particular TripAdvisor and similar websites. It would be greatly

appreciated for your co-‐operation in completing this questionnaire as honestly

as you can and to the best of you ability. Your responses will remain anonymous

and will only be used for the purpose of this study. Thank you for your co-‐

operation.

1. Gender (Please select one)

2. Age group (Please select one)

3. Before purchasing a holiday, do you conduct any research surrounding the

product, i.e. look at reviews? (Please select one answer)

3a. If so which website are you familiar with or have used previously? (Tick the answer that apply)

Male

Female

18 – 24

25 -‐ 29

30 – 34

35 – 39

40 – 44

45 – 49

50 – 54

55 +

Yes (Go to question 3a)

No (Go to questions 3b)

TripAdvisor

Expedia

Thompson

Opodo

Icelolly

Travel Republic

ComparetheMarket.com

Cheap Flights

Other:___________________________

47

3b. If not, briefly explain why.

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

4. Have you been on holiday either in the United Kingdom or abroad in the past

12 months? (Please select one option)

4a. Did you do any research about the holiday before purchasing? (Please select one option)

4b. How satisfied were you with the information you found online? (Please select which best represents your satisfaction)

4c. Did the information play a role in the decision to purchase the holiday? (Please select one option)

4d. Where these reviews mostly good or bad? (Please select which best

represents your opinion) 5. Have you ever used TripAdvisor as a way to conduct research about

holidays? (Please select one option)

Yes

No (Go to question 5)

Yes

No (Go to Question 5)

Yes

No

Partly

Mostly Bad Mostly Good

Yes (Go to Question 5a)

No (Go to question 5b)

48

5a. If yes, please state why you used TripAdvisor?

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

5b. If no, please state why you do not use TripAdvisor.

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

6. To your knowledge or experience, please indicate how strongly you agree or disagree with the following statements. (Please choose which best represents your opinion)

a. I am more likely to purchase a product after reading positive reviews about the product

b. I am less likely to purchase a product after reading bad reviews about the product

c. I trust online reviews from websites such as TripAdvisor

d. I trust online reviews more than information provided by organisations

e. I believe that online reviews are honest and trustworthy because people posting them have no beneficial motives

f. I trust family and friends recommendations about products more than recommendations made online by unknown users

Strongly Disagree Strongly Agree






49

7. To your knowledge or experience, please indicate how strongly you agree or disagree with the following statement. (Please choose which best represents you opinion)

a. I have a general understanding of the word of mouth concept

b. I inform my friends/family of good experiences regarding products or services face to face

c. I inform my friends/family of bad experiences regarding products or services face to face

d. I write good reviews online as an anonymous user about products and services

e. I write bad reviews online as an anonymous user about products and services

f. I am always honest when writing reviews online as an anonymous

user

8. What suggestions would you recommend for websites such as TripAdvisor,

and similar websites, need to consider ensuring the reviews on their

websites remain accurate and trustworthy?

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

Thank you for your co-‐operation







Q1 -‐ Gender Question)1)) Respondents))

Male)) 44"Female)) 86"

Total:) 130""

34%

66% Male

Female

Appendix B – Results, Tables and Graphs

50

Q2 – Age Group

Question)2)) Respondents))18)–)24) 6"25)–)29)) 10"30)–)34)) 17"35)–)39)) 17"40)–)44)) 31"45)–)49)) 19"50)–)54)) 19"55)+)) 11"

Total:)) 130""

4%

8% 13%

13%

24%

15%

15% 8%

18 – 24

25 – 29

30 – 34

35 – 39

40 – 44

45 – 49

50 – 54

55 +

51

Q3 – Before purchasing a holiday, do you conduct any research surrounding the product, i.e. look at reviews?

Question)3) Respondents))Yes)) 116#No)) 14#

Total:) 130##

89%

11%

Yes

No

52

Q3a – If so which website are you familiar with or have used previously?

Question)3a) Respondents))TripAdvisor)) 64#Expedia) 9#Thompson) 12#Opodo) 3#IceLolly) 8#Travel)Republic)) 8#ComparetheMarket.com) 2#Cheap)Flights) 6#Other) 4#

Total:) 130##

55%

8%

10%

3%

7%

7%

2%

5% 3% TripAdvisor

Expedia

Thompson

Opodo

IceLolly

Travel Republic

ComparetheMarket.com

Cheap Flights

Other

53

Q4 – Have you been on holiday in the United Kingdom or abroad in the past 12 months?

Question)4) Respondents))Yes)) 94#No) 36#

Total:) 130##

72%

28%

Yes

No

54

Q4a – Did you do any research about the holiday before purchasing?

Question)4a) Respondents))Yes) 90#No) 4#

Total:) 94##

96%

4%

Yes

No

55

Q4b – How satisJied were you with the information you found online?

!Question)4b) Respondents))1)–)Very)Dissatisfied)) 2!2) 4!3) 6!4) 2!5) 1!6) 24!7) 11!8) 9!9) 11!10)–)Very)Satisfied)) 20!

Total:) 90!

2%

5% 7%

2%

1%

27%

12% 10%

12%

22%

1 – Very DissaVsfied

2

3

4

5

6

7

8

9

10 – Very SaVsfied

56

Q4c – Did the information play a role in the decision to purchase the holiday?

Question)4c) Respondents))Yes) 51#No) 14#Partly) 25#

Total:)) 90##

57% 15%

28%

Yes

No

Partly

57

Q4d – Where these reviews mostly good or bad?

Question)4d) Respondent))1)–)Mostly)Bad) 2"2) 3"3) 7"4) 1"5) 2"6) 23"7) 12"8) 11"9) 9"10)–)Mostly)Good) 20"

Total:) 90""

2%

3% 8% 1%

2%

26%

14% 12%

10%

22%

1 -‐ Mostly Bad

2

3

4

5

6

7

8

9

10 -‐ Mostly Good

58

Q5 – Have you used TripAdvisor as a way to conduct research about holidays?

Question)5) Respondents))Yes) 64#No) 66#

Total:) 130##

49% 51%

Yes

No

59

Q6a – I am more likely to purchase a product after reading positive reviews about the product

11%

17%

24% 18%

30%

1 -‐ Strongly Disagree

2

3

4

5 -‐ Strongly agree

Question)6a)) Respondents))1)–)Strongly)Disagree)) 15#2) 22#3) 31#4) 23#5)–)Strongly)Agree) 39#

Total:) 130##

60

Q6b – I am less likely to purchase a product after reading bad reviews about the product

13% 19%

20% 21%

27%


2

3

4

5 -‐ Strongly Agree

Question)6b) Respondent))1)–)Strongly)Disagree)) 17#2) 25#3) 26#4) 27#5)–)Strongly)Agree) 36#

Total:) 130##

61

Q6c – I trust online reviews from websites such as TripAdvisor

9% 11%

13%

19%

48%


2

3

4


Question)6c) Respondent))1)–)Strongly)Disagree)) 12#2) 14#3) 17#4) 24#5)–)Strongly)Agree) 62#

Total:) 130##

62

Q6d – I trust online reviews more than information provided by organisations

Question)6d) Respondent))1)–)Strongly)Disagree)) 2"2) 2"3) 6"4) 34"5)–)Strongly)Agree) 86"

Total:) 130""

1% 2% 5%

26%

66%

1 -‐ Strongly disagree 2

3 4


63

Q6e – I believe that online reviews are honest and trustworthy because people posting them have no beneJicial motives

10% 11%

10%

26%

43%


2

3

4


Question)6e) Respondent))1)–)Strongly)Disagree)) 13#2) 14#3) 13#4) 34#5)–)Strongly)Agree) 56#

Total:) 130##

64

Q6f – I trust family and friends recommendations about products more than recommendations made online by unknown users

!

Question)7b) Respondent))1)–)Strongly)Disagree)) 27!2) 10!3) 62!4) 18!5)–)Strongly)Agree) 13!

Total:) 130!

21%

7%

48%

14% 10%

1 -‐ Strongly Disagree 2 3 4 5 -‐ Strongly Agree

65

Q7a – I have a general understanding of the word of mouth concept

!

Question)7a) Respondent))1)–)Strongly)Disagree)) 2!2) 26!3) 23!4) 32!5)–)Strongly)Agree) 47!

Total:) 130!

1%

20%

18%

25%

36%


2

3

4


66

Q7b – I inform my friends/family of good experiences regarding products or services face to face

21%

7%

48%

14% 10%


2

3

4


!

Question)7b) Respondent))1)–)Strongly)Disagree)) 27!2) 10!3) 62!4) 18!5)–)Strongly)Agree) 13!

Total:) 130!

67

Q7c – I inform my friends/family of bad experiences regarding products and services face to face

!

Question)7c) Respondent))1)–)Strongly)Disagree)) 10!2) 13!3) 17!4) 28!5)–)Strongly)Agree) 62!

Total:) 130!

8% 10%

13%

21%

48%


2

3

4

5 -‐ Strongly Disagree 68

Q7d – I write good reviews online as an anonymous user about products and services

!

Question)7d) Respondent))1)–)Strongly)Disagree)) 13!2) 22!3) 57!4) 12!5)–)Strongly)Agree) 26!

Total:) 130!

10% 17%

44%

9%

20%


2

3

4

5 -‐ Strongly Agree 69

Q7e – I write bad reviews online as an anonymous user about products and services

9% 20%

10% 17%

44%


2

3

4


!

Question)7e) Respondent))1)–)Strongly)Disagree)) 12!2) 26!3) 13!4) 22!5)–)Strongly)Agree) 57!

Total:) 130!

70

Q7f – I am always honest when writing reviews online as an anonymous user

6% 7%

11% 10%

66%


2

3

4


Question)7f) Respondents))1)–)Strongly)Disagree) 8"2) 9"3) 14"4) 13"5)–)Strongly)Agree) 86"

Total:) 130""

71

72

Appendix C – Rubric (Sampling covering letter)

Consumer Attitude to Online Reviews

Dear respondent,

My name is Rodrigue Eid. In order to successfully graduate as an honours

student, I am required to carry out a dissertation as a compulsory element for

my degree. I am also hoping that findings from my research will further

contribute towards areas of consumer behaviour and word of mouth.

I would be very grateful if you could spare a few minutes to complete this survey

in order to help me with this study and my findings.

If you require any more information or any more details please do not hesitate to

ask me.

Kind Regards,

Rodrigue Eid

73

Appendix D – Prize Incentive

As part of my survey three respondents were chosen at random to win one of

three £20 Love2Shop vouchers for taking part. The winners of the vouchers were

chosen after they defaced a hologram box at the end of the questionnaire to

reveal either a win or lose sign.

The terms and conditions to this competition were as follows:

• Respondents must complete the questionnaire and not miss out any

answers

• Although the winner will be revealed on the day the survey is completed

(on the spot) the voucher will be sent out by post after the 2nd May 2012

• It is the responsibility of the winner to claim the prize, due to this survey

being anonymous no information will be taken from the respondent

• Any claims must be e-‐mailed to [email protected], alongside a postal

address and survey identification number to verify the claim. This can be

obtained on the day of when the survey is completed

• It is the responsibility of the winner to ensure that survey identification

number is kept safe, any lost numbers cannot be retraced

• It is the sole responsibility of the winner to ensure that any winning

survey numbers are claimed by the 30th May 2012, any claims after that

date will be void

• Along with these terms and condition, the winner must also bear in mind

the terms and conditions, which have already been set out by Love2Shop.

These can be found on http://www.highstreetvouchers.com/gift-‐

vouchers/terms-‐conditions.jsp

• The vouchers cannot be exchanged for cash

• The cash value of these vouchers is 0.0001p

Thank you,

Kind Regards,

Rodrigue Eid

74

Appendix E – Pilot Survey Modifications

These were the various modifications that were made to the survey following the

feedback provided by the pilot study group.

• Add age group 18-‐24

• Take out some of the personal questions that were in the questionnaire

such as job status and income as they were seen as irrelevant

• Amend layout of the questionnaire to make it more user friendly

• Include instructions on how to answer the questionnaire and questions

• Check for some spelling and grammatical errors made in the survey

• Reduce font size from 16 to 12

Some of the positive feedback from the group about the questionnaire included:

• The structure was well thought out

• They really like the agree and disagree section of the questionnaire and

the various statements

• They did not feel that the questionnaire was long to fill out and that it was

very user friendly

• They thought that I made good use with some of the questions that were

asked

75

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Journal of Marketing, 68 (January), 1-‐17

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