The perception of social media as a promotional mix element in star-graded accommodation ...

303 Pages·2015·3.07 MB·English

The perception of social media as a promotional mix
element in star-graded accommodation establishments
in the Western Cape province of South Africa
by
Claudette van Niekerk
submitted in accordance with the requirements
for the degree of
Master of Commerce
in the subject of
Business Management
at the
University of South Africa
Supervisor: Prof. M.C. Cant
Co-supervisor: Mr R. Machado
December 2014
Student Number: 5085-324-4
DECLARATION
I declare that “The perception of social media as a promotional mix element in
star-graded accommodation establishments in the Western Cape province of
South Africa” was submitted in fulfilment of the requirements for the degree of
Master of Commerce in the subject of Business Management with specialisation
in Marketing and Retail Management, at the University of South Africa (Unisa), is
my own work and that all sources utilised within this research study have been
acknowledged by means of complete references.

.............................................................
Claudette van Niekerk
December 2014

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DEDICATION
This master’s dissertation is dedicated to my loving parents, Chris and Fransie
van Niekerk, who have instilled in me the notion that through determination and
positivity anything is possible. To my wonderful sister, Melissa van Niekerk, for
the support and guidance throughout my studies. And to my fiancé, Ruan Rabie,
thank you for your unconditional love and support through it all.

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ACKNOWLEDGEMENTS
I would like to take this opportunity to express my sincere appreciation and gra-
titude to the following individuals who have been instrumental in the completion
of this study:
 To my family, for the encouragement you have given me to do the best I
can.
 My supervisors, Prof. M.C. Cant and Mr R. Machado, for all their support,
patience, encouragement and excellent guidance. Thank you for continually
encouraging and motivating me throughout my studies. I could not have
asked for better supervisors.
 The University of South Africa (Unisa) for the financial assistance.
 Andries Masenge from the Bureau of Market Research (BMR) for his guid-
ance and expertise in the statistical field.
 Dina Venter for conducting my statistical analysis.
 Glenda Buncombe for editing this dissertation.
 Jenny Seagreen for the layout, technical editing and formatting of this dis-
sertation.
 All the star-graded accommodation establishments in the Western Cape
that participated in the study.
 My work colleagues and friends for all your support and motivation.
“We cannot achieve more in life than what we believe
in our heart of hearts we deserve to have.”
– James R. Ball –

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ABSTRACT
Since the advent of the Internet, the number of individuals and organisations
using tools such as the World Wide Web and cell phones has increased, and is
continuing to grow at a rapid pace. Social media has provoked fundamentally
different ways of doing business, and organisations rapidly had to get on this
social media bandwagon to stay up to date with the latest market trends and
ahead of the competition. Although social media is already broadly used among
South African businesses, the perception regarding the use of social media as a
promotional mix element has not been investigated sufficiently in South Africa.
The primary purpose of this study was therefore to determine the perception of
star-graded accommodation establishments, operating in the Western Cape
province of South Africa, regarding the use of social media as a promotional mix
element. A broad and in-depth literature review was conducted on the use of
social media and social media as a probable promotional mix element. An
empirical study was conducted, in which data was collected from star-graded
accommodation establishments operating in the Western Cape by means of a
web-based (computer-assisted) self-administered questionnaire. A quantitative
approach was followed in order to satisfy the research objectives of this study.
The results of this research study indicate that social media is perceived to be
an instrumental marketing element in star-graded accommodation establishments
and can indeed be considered an element of the promotional mix.
Key terms
Accommodation establishments; consumer behaviour; marketing; perception;
promotional mix elements; social media; South Africa; star-graded; TGCSA; tra-
ditional marketing methods; Western Cape.

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CONTENTS
LIST OF FIGURES ........................................................................................... xii
LIST OF TABLES ............................................................................................ xiv
DEFINITION OF KEY TERMS ........................................................................ xvii
LIST OF ABBREVIATIONS ............................................................................. xix
CHAPTER 1: INTRODUCTION ......................................................................... 1
1.1 INTRODUCTION ...................................................................................... 1
1.2 PURPOSE OF THE STUDY ..................................................................... 2
1.3 BACKGROUND SKETCH OF THE STUDY ............................................. 2
1.3.1 The social media landscape ........................................................ 3
1.3.2 The accommodation sector within South Africa ........................... 4
1.4 PROBLEM STATEMENT AND RESEARCH QUESTION ........................ 6
1.4.1 Primary research objective .......................................................... 7
1.4.2 Secondary research objectives .................................................... 7
1.5 SIGNIFICANCE OF THE STUDY ............................................................. 7
1.6 RESEARCH METHODOLOGY ................................................................ 8
1.6.1 Research design .......................................................................... 8
1.6.2 Sampling techniques .................................................................... 9
1.6.2.1 Population of the study ................................................ 9
1.6.2.2 Sampling method ........................................................ 9
1.6.2.3 Sample size .............................................................. 10
1.6.3 Data collection ........................................................................... 10
1.6.4 Data analysis ............................................................................. 11
1.7 LIMITATIONS OF THE STUDY .............................................................. 11
1.8 CHAPTER OUTLINE .............................................................................. 12
1.9 SUMMARY ............................................................................................. 13
CHAPTER 2: SOCIAL MEDIA AS A PROMOTIONAL MIX ELEMENT .......... 14
2.1 INTRODUCTION .................................................................................... 14
2.2 THE COMMUNICATION MODEL ........................................................... 15
2.3 THE PROMOTIONAL MIX ...................................................................... 19
2.4 ELEMENTS OF THE PROMOTIONAL MIX ........................................... 20
2.4.1 Advertising ................................................................................. 21
2.4.1.1 Print media ................................................................ 21
2.4.1.2 Broadcast media ....................................................... 22
2.4.1.3 Outdoor media .......................................................... 22
2.4.2 Direct marketing ......................................................................... 23
2.4.3 Public relations ........................................................................... 24
2.4.4 Personal selling .......................................................................... 24
2.4.5 Sales promotion ......................................................................... 25
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2.4.6 Sponsorship ............................................................................... 26
2.4.7 New media ................................................................................. 27
2.5 CONTEXTUALISING SOCIAL MEDIA ................................................... 28
2.5.1 Defining social media ................................................................. 29
2.5.2 Defining social networks ............................................................ 30
2.6 SOCIAL MARKETING ............................................................................ 31
2.6.1 Social media applications .......................................................... 31
2.6.1.1 Blogs ......................................................................... 31
2.6.1.2 Discussion forums ..................................................... 32
2.6.1.3 Micro-blogging .......................................................... 32
2.6.1.4 Wikis ......................................................................... 32
2.6.1.5 Virtual worlds ............................................................ 33
2.6.1.6 Photo, audio and video sharing ................................. 33
2.6.1.7 Social bookmarking services ..................................... 33
2.6.1.8 Social networking sites .............................................. 33
2.6.2 Social networking sites .............................................................. 34
2.6.2.1 Facebook .................................................................. 34
2.6.2.2 Twitter ....................................................................... 34
2.6.2.3 LinkedIn .................................................................... 35
2.6.2.4 MySpace ................................................................... 35
2.6.2.5 TripAdvisor ................................................................ 35
2.7 SOCIAL MEDIA AS A PROMOTIONAL MIX ELEMENT ........................ 36
2.8 USAGE OF SOCIAL MEDIA BY CONSUMERS ..................................... 38
2.9 THE USE OF SOCIAL MEDIA BY ORGANISATIONS ........................... 40
2.10 BENEFITS AND DISADVANTAGES OF USING SOCIAL MEDIA
AS A PROMOTIONAL MIX ELEMENT ................................................... 43
2.10.1 Benefits of using social media as a promotional mix element ...... 43
2.10.2 Disadvantages of using social media as a promotional mix
element ...................................................................................... 44
2.11 SUMMARY ............................................................................................. 45
CHAPTER 3: CONSUMER BEHAVIOUR AND PERCEPTIONS .................... 47
3.1 INTRODUCTION .................................................................................... 47
3.2 DEFINING CONSUMER BEHAVIOUR................................................... 48
3.3 MARKETING STIMULI ........................................................................... 51
3.3.1 Product ...................................................................................... 52
3.3.2 Price ........................................................................................... 52
3.3.3 Distribution (place) ..................................................................... 52
3.3.4 Promotion (communication) ....................................................... 52
3.3.5 People ........................................................................................ 53
3.3.6 Physical evidence ...................................................................... 54
3.3.7 Processes .................................................................................. 54

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3.4 FACTORS INFLUENCING CONSUMER BEHAVIOUR ......................... 54
3.4.1 Group factors ............................................................................. 55
3.4.1.1 The family ................................................................. 55
3.4.1.2 Culture ...................................................................... 56
3.4.1.3 Social class ............................................................... 57
3.4.1.4 Reference groups...................................................... 57
3.4.1.5 Opinion leaders ......................................................... 58
3.4.2 Individual factors ........................................................................ 59
3.4.2.1 Motivation .................................................................. 59
3.4.2.2 Perception ................................................................. 60
3.4.2.3 Learning ability .......................................................... 60
3.4.2.4 Attitude ...................................................................... 61
3.4.2.5 Personality ................................................................ 62
3.4.2.6 Lifestyle ..................................................................... 62
3.5 PERCEPTION AND THE PERCEPTUAL PROCESS ............................ 63
3.5.1 Perception .................................................................................. 63
3.5.2 The perceptual process ............................................................. 66
3.6 THE CONSUMER DECISION-MAKING PROCESS .............................. 71
3.6.1 Stage 1: Problem or need recognition ........................................ 72
3.6.2 Stage 2: Search for information ................................................. 74
3.6.3 Stage 3: Evaluation of alternatives ............................................. 76
3.6.4 Stage 4: Buying decision or response ........................................ 80
3.6.5 Stage 5: Post-buying evaluation ................................................ 80
3.7 THE DYNAMIC CUSTOMER DECISION JOURNEY ............................. 82
3.7.1 Consideration ............................................................................. 84
3.7.2 Evaluation .................................................................................. 85
3.7.3 Experience ................................................................................. 85
3.7.4 Loyalty/bond............................................................................... 86
3.8 RELEVANCE TO STUDY: PERCEPTIONS AND THE DYNAMIC
CUSTOMER DECISION JOURNEY ....................................................... 87
3.9 SUMMARY ............................................................................................. 88
CHAPTER 4: RESEARCH METHODOLOGY ................................................. 89
4.1 INTRODUCTION .................................................................................... 89
4.2 THE MARKETING RESEARCH PROCESS ........................................... 89
4.2.1 Step 1: Define the research problem ......................................... 92
4.2.2 Step 2: Identify the research objectives ..................................... 93
4.2.3 Step 3: Determine the research design ...................................... 94
4.2.3.1 Exploratory research design ..................................... 95
4.2.3.2 Conclusive research design ...................................... 95
4.2.4 Step 4: Identify information types and sources ......................... 98
4.2.4.1 Secondary data ......................................................... 98
4.2.4.2 Primary data ............................................................ 100

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4.2.5 Step 5: Design the sampling plan ........................................... 105
4.2.5.1 Define the population .............................................. 105
4.2.5.2 Specify the sampling frame ..................................... 106
4.2.5.3 Select the sampling method .................................... 106
4.2.5.4 Determine the sample size ...................................... 113
4.2.5.5 Select the sample ................................................... 115
4.2.6 Step 6: Design the research instrument .................................. 115
4.2.6.1 Determine objectives and type of information ......... 116
4.2.6.2 Determine the data collection method ..................... 117
4.2.6.3 Determine the response format ............................... 120
4.2.6.4 Decide on questionnaire wording ............................ 122
4.2.6.5 Establish questionnaire flow and layout .................. 123
4.2.6.6 Evaluate the questionnaire ...................................... 123
4.2.6.7 Obtain approval from all relevant parties ................. 123
4.2.6.8 Pre-test and revise .................................................. 124
4.2.6.9 Prepare the final copy ............................................. 124
4.2.6.10 Implement the survey .............................................. 124
4.2.7 Step 7: Conduct a pilot study (pre-testing) ............................... 125
4.2.8 Step 8: Collect the data ............................................................ 126
4.2.9 Step 9: Process and analyse the data ..................................... 127
4.2.10 Step 10: Interpret the results and compile a research report ..... 127
4.3 SUMMARY ........................................................................................... 128
CHAPTER 5: RESEARCH FINDINGS .......................................................... 129
5.1 INTRODUCTION .................................................................................. 129
5.2 OVERVIEW OF THE RESEARCH QUESTION AND OBJECTIVES ..... 129
5.2.1 Research question ................................................................... 129
5.2.2 Research objectives ................................................................. 130
5.3 DESCRIPTIVE STATISTICS ANALYSIS. ............................................. 131
5.3.1 Qualifying (screening) questions .............................................. 131
5.3.2 Profile of respondents .............................................................. 133
5.3.3 Respondents’ familiarity with the term ‘social media’
(question 5) .............................................................................. 137
5.3.4 Current use of social media as a promotional mix element
(question 6) .............................................................................. 137
5.3.5 Reasons for not implementing social media (questions 7
and 8) ....................................................................................... 138
5.3.6 Use of social media for business and marketing purposes
(question 9) .............................................................................. 140
5.3.7 Respondents’ current use of social media (questions 12
and 13) ..................................................................................... 141
5.3.8 Marketing methods used in the past year by respondents
(question 14) ............................................................................ 142
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5.3.9 Social media applications/websites used in the past year
by respondents (questions 15 and 16) ..................................... 144
5.3.10 Perceived effectiveness of the use of social media
(question 17) ............................................................................ 147
5.3.11 Perception of the use of social media as a promotional mix
element (question 18) .............................................................. 148
5.3.12 Respondents’ social media marketing efforts (question 19) ...... 149
5.3.13 Respondents’ perception of social media as a promotional
mix element (question 20) ........................................................ 150
5.3.14 Benefits of using social media as a promotional mix element
(question 21) ............................................................................ 152
5.4 INFERENTIAL STATISTICAL ANALYSIS ............................................ 153
5.4.1 Respondents’ familiarity with the term ‘social media’
(question 5) .............................................................................. 154
5.4.1.1 Familiarity with the term ‘social media’
(question 5) vs. current use of social media
as a promotional mix element (question 6) ............. 154
5.4.1.2 Familiarity with the term 'social media'
(question 5) vs. perceived effectiveness of the
use of social media (question 17) ........................... 157
5.4.2 Current use of social media as a promotional mix element
(question 6) vs. perceived effectiveness of the use of social
media (question 17) ................................................................. 160
5.4.3 Perceived effectiveness of the use of social media
(question 17) vs. social media marketing efforts
(question 19) ............................................................................ 162
5.4.4 Type of accommodation establishment (question 3) ................ 168
5.4.4.1 Various types of accommodation establishments
(question 3) vs. social media marketing efforts
(question 19) ........................................................... 168
5.4.4.2 Various types of accommodation establishments
(question 3) vs. perception of social media as a
promotional mix element (question 20) ................... 170
5.5 VALIDITY AND RELIABILITY ............................................................... 171
5.5.1 Perception of the use of social media as a promotional mix
element (question 18) .............................................................. 173
5.5.2 Social media marketing efforts (question 19) ........................... 176
5.5.3 Perception of social media as a promotional mix element
(question 20) ............................................................................ 177
5.5.4 Benefits of using social media as a promotional mix element
(question 21) ............................................................................ 179
5.6 CLUSTER ANALYSIS .......................................................................... 180
5.6.1 Cluster variables ...................................................................... 181
5.6.2 Four-cluster solution ................................................................ 182
5.7 SUMMARY ........................................................................................... 186
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