Download Investigating Internet Marketing Strategies among Hotels in

ABSTRACT
A
ll over the world, the hotel industry is making use of the internet to market and
expand their frontiers. Internet marketing offers hotels a distribution channel to
showcase their facilities. Majority of hotels in Ghana have taken to the internet with
the aim of gaining competitive advantage.
The aim of this research is to investigate the internet marketing strategies among hotels in
Ghana. The frame of reference for the research is based on the ICDT model, Sigala (2003)
postulated the extended internet marketing mix model which includes the traditional four Ps and
Customer relation dimensions. Measuring internet marketing activities based on these five
dimensions is argued to be an appropriate, effective and valuable tool that fully exploits the
transformational capabilities of the internet (O’Connor, 1999: Sigala, Lockwood, & Jones, 2001;
Liu & Arnett’s, 2000).
Findings from the research shows that only 2 dimensions i.e place and product have been
developed by all the hotels surveyed in Ghana. Also whereas, price is the least transformed
dimension place is the most transformed by Ghanaian hotels. Furthermore, majority of the hotels
are not fully exploiting the full potential of the internet rather they are using the internet as a
means to create awareness thereby adopting a globalization strategy.
In conclusion the survey has shown that most hotels in Ghana are under utilizing the potential of
the internet despite the fact that many of them have websites. It is suggested that hotels in Ghana
should engage the services of internet marketing professionals to develop a comprehensive
internet marketing strategy upon which their websites could be developed to enable them take
full advantage of the benefits associated with internet marketing.
Keywords: Internet Marketing Mix, Internet Marketing, Strategies, Quantitative research
ACKNOWLEDGEMENT
We are most grateful to the Lord Almighty for sustaining us throughout the period
of pursuing this Joint International Masters Programme between Lulea University
of Technology - Sweden and University College of Education, Kumasi Campus.
Furthermore we wish to thank all our lecturers and especially our Supervisor Ms.
Mana Farshid who carefully guided us through the thesis phase of the programme.
Her criticisms benefitted us tremendously as it pushed us to work harder to meet
all the required standards for this research.
Our special gratitude goes to our families - Mr. & Mrs John Koku Ogbeh, Mrs
Margaret Koku, Joshua Koku and Miss Mary Kpeglar for giving us emotional
support throughout the programme.
To all the hotels that participated in this survey and our research assistants who
helped us to collect data we say thank you – because without them this research
would not have been possible.
To our friends and course mates, group members and all who in diverse ways
played meaningful roles during our study on campus we say thank you and God
richly bless you.
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Table of Contents
Abstract
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Acknowledgement
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Table of Contents
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List of figures .
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List of tables .
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CHAPTER ONE
Introduction
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1.2 Problem statement and Purpose of study
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1.3 Justification of the study
1.1 Background to the study
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1.4 Organization of the Thesis .
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CHAPTER TWO
2.0 Literature Review.
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2.2 Advantages and Challenges of Internet Marketing .
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2.3 Internet marketing models .
2.1 Hotel Industry and the Internet
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2.3.1 Internet Value Chain Model .
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2.3.1.1 Inputs from Suppliers
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2.3.1.2 Internal Operations .
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2.3.1.3 Customer Relations .
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2.3.2 The Web-Marketing Mix (WMM) Model
2.3.2.1 Scope
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2.3.2.2 Site .
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2.3.3 The E-commerce Service Index Framework .
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2.3.2.3 Synergy.
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2.3.4 Information Communication Distribution and Transaction
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(ICDT) Model
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2.3.5 The Internet Marketing Mix Model .
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2.4 Internet Tools
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CHAPTER THREE .
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3.0 Research Questions and Frame of Reference
3.1 Research Questions .
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3.1.1 Procedure for Answering Research Question
3.2 Frame of Reference .
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3.2.1 Dimensions of Internet Marketing Mix .
CHAPTER FOUR
42 to 71
4.0 Research Methodology .
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4.1 Research Perspectives
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4.2 Research Purpose
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4.3 Research Philosophy.
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4.4 Research Approach .
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4.5 Time Horizon
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4.6 Research Strategy
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4.7 Sample Selection
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4.7.1 Population
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4.7.2 Sampling Frame
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4.7.3 Sample Size
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4.7.4 Sampling Technique .
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4.8.1 Types of Data Collected
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4.8.2 Questionnaire Design .
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4.8.3 Pre-testing and Final Administration .
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4.8.4 The Questionnaire
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4.8 Data Collection Method
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4.9 Data Presentation and Analysis
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4.10 Access Strategies
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4.11Credibility of Research Findings
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4.11.1 Validity
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4.11.2 Reliability
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CHAPTER FIVE
72 to 89
5.0 Data Presentation and Analysis .
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5.1.1 Level of Education
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5.1.2 Hotel Type
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5.1.3 Hotel Category
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5.1.4 Hotel Size
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5.1.5 Hotel Location .
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5.1 General Information .
5.2 Composition/Structure of the Internet Marketing Mix
5.2.1 Transformation of Product
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5.2.2 Transformation of Price
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5.2.3 Transformation of Place
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5.2.4 Transformation of Promotion .
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5.2.5 Transformation of Customer Relation.
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5.3 Dimension of Hotels’ Internet Marketing Mix
and their Degree of Transformation.
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CHAPTER SIX
90 to 101
Discussion of Findings, Conclusions and Implications
5.4 Discussion of Findings
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6.1.1 Profile of the Respondents
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6.1.2 RQ1. What is the composition/structure of the hotels
Internet Marketing Mix?
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6.1.3 RQ2. Which dimensions of the Internet Marketing Mix are
being transformed by the hotels?
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6.1.4 RQ3. What Internet marketing strategies are being pursued
by hotels in Ghana? .
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6.1.5 RQ4. What is the level of sophistication/transformation of
Internet Marketing Mix dimensions? .
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6.1.6 RQ5. Are hotels in Ghana fully exploiting the internet
capabilities and features?
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6.3 Limitations and Delimitations of the Study .
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6.4 Implications for Managers .
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6.5 Implications for further research
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6.2 Conclusion .
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References.
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Appendix .
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111-114
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List of figures
Figure 2.1 Internet Value Chain: Input from Suppliers
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Figure 2.2 Internet Value Chain: Internal Operations
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Figure 2.3 Internet Value Chain: Customer Relation .
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Figure 2.4 Web Marketing Mix (WMM)
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Figure 2.5 ICDT Model
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Figure 2.7 Classification of the ICDT model by level of
Sophistication and customization .
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Figure 2.7 Online Marketing Tools .
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Figure 4.1 The research “onion”
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Figure 5.1 Respondents level of education
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Figure 5.2 Hotel Type .
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Figure 5.3 Hotel Category
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Figure 5.4 Hotel Size .
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Figure 5.5 Location of Hotel .
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Figure 5.6 Distribution of used aspects in the Product Dimension
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Figure 5.7 Distribution of used aspects in the Price Dimension
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Figure 5.8 Distribution of used aspects in the Place Dimension
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Figure 5.9 Distribution of used aspects in the Promotion Dimension
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Figure 5.10 Distribution of used aspects in the
Customer Relation Dimension. .
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Figure 5.11 Dimensions of Hotels’ Internet Marketing Mix
and Their Degree of Transformation .
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List of tables
Table 1.1 Ghana’s Internet Usage and Population Growth .
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Table 1.2 Members of Ghana Hotels Association
and their location by Regions
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Table 3.1 Extended internet marketing mix .
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Table 4.1 Research Paradigm .
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Table 4.2 Research Strategy .
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Table 4.3 Sample Design and Response Rate .
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Table 4.4 Demographic information of the respondents
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Table 4.5 Internet marketing dimensions construct .
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Table 4.6 Reliability statistic for marketing mix dimensions
Table 5.1 Respondent educational level
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Table 5.2 Hotel Type .
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Table 5.3 Hotel Category
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Table 5.4 Hotel Size .
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Table 5.5 Location of Hotel .
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Table 5.6 Frequency, percentage of product dimension
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Table 5.7 Frequency, percentage of price dimension .
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Table 5.8 Frequency, percentage of place dimension .
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Table 5.9 Frequency, percentage of promotion dimension
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Table 5.10 Frequency, percentage of customer relation dimension. .
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Table 5.11 Frequency and Degree of Transformation of each of the
five Internet Marketing Dimensions
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Table 5.12 Case summary statistics of the Hotels Internet
Marketing Mix Dimension.
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CHAPTER ONE
1.0
Introduction
T
his chapter presents the reader with an overview of the study. It includes the
background of the study, problem area and purpose of the study as well as
justification of the Study. The limitations, delimitation and the organization of
the Study are also presented.
1.1
Background to the Study
We live in a global world with an ever changing phase of technology; the role of
traditional marketing is being challenged constantly. Local firms are beginning to face
competition from foreign firms located both near and very far away in other continents.
This trend is expected to continue as long as technology is available to facilitate business
between a willing buyer and seller. Traditionally marketing is seen as an organizational
function and a set of processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit the organization
and its stakeholders according to American Marketing Association (American marketing
Association 2004).
Traditional marketing has been transformed by the new technological advances creating
new business contexts throughout time. First dramatic implication for marketing occurred
with the emergence of public press, telegraph, radio, telephone, television, and fax
technology (Ngai, 2003).
Today, the Internet not only offers tremendous opportunities for marketers, it brings
about a new way of conducting marketing and approaching consumer markets (Sterne,
1996; Hoffman & Novak, 1997; Peterson et al., 1997; Walsh & Godfrey, 2000; Rahman,
2003; Pitt et al., 1999a, b; Lichtenthal & Eliaz, 2003).
The Internet also melts the borders of national markets increasing and shifting the
competition into electronic marketplace, where many companies are competing now on
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an international basis due to the global nature of e-commerce (Hoffman & Novak, 1996;
Malhotra & Peterson, 2001). The coming of the Internet and digitalization of information
together with the spread of the use of personal computers created the context of ecommerce, in which the core marketing function has acquired new universal
characteristics and directions, inducing the development of Internet Marketing as a
concept (Watson et al., 2000; Pitt et al., 2002; Ngai, 2003).
The internet is a very important tool for gaining strategic advantages in business the
world over. Several hotels have made attempts to capture some of the growth potential of
the internet, by creating their websites and are using the internet for various purposes. It
is used mostly as a sales and marketing tool. (Murphy et., 1996; Walle 1996)
Internet marketing has been defined in different ways by different authors. According to
Ngai, (2003) internet marketing is “The process of building and maintaining customer
relationships through online activities to facilitate the exchange of ideas, products, and
services that satisfy the goals of both buyers and sellers”
Buhalis, (1998) state that “Marketing on the Web is multidimensional content marketing
that requires the following paradigm shifts: from traditional advertising to interactive
marketing; and from developing and managing one-way information flows to computermediated empowerment of users, consumers, and entrepreneurs who will be engaged in
electronic commerce in the information age” According to Laudon & Traver, (2002)
“Internet marketing is to use the Web – as well as traditional channels – to develop a
positive, long-term relationship with customers (who may be online or offline) and
thereby create a competitive advantage for the firm by allowing it to charge a higher price
for products and services than its competitors can charge”
Ghana was amongst the first countries in Africa to achieve connection to the internet. The
internet was introduced into Ghana in 1998 by NCS Network Computer Systems.
Broadband ADSL services were introduced in 2003. In 2004 alone almost 100 new ISPs
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were licensed bringing the total at the end of that year to more than 140. The rapid
growth in this sector in recent years is set to continue.
Table 1.1 Ghana’s Internet Usage and Population Growth
YEAR Users
Population
% Pen.
Usage Source
2000
30,000
18,881,600
0.2 %
ITU
2006
401,300
21,801,662
1.8 %
ITU
2008
880,000
23,382,848
3.8 %
ITU
2009
997,000
23,887,812
4.2 %
ITU
Source: internet world statistics 2010
Ghana can be located in West Africa and attained independence from the British on 6th
March 1957.
Since then the country has been governed by a mix of military and
democratically elected governments. Since 1992, Ghana has pursued its developmental
agenda under constitutionally elected governments. It borders Côte d'Ivoire to the west,
Burkina Faso to the north, Togo to the east, and the Atlantic Ocean to the south. Accra is
the capital and largest city in Ghana.
Hotels have existed and operated in Ghana since independence. Hotels come in a variety
of ranges, from low budget to high-end accommodation. Hotel class is essentially a
measure of both the quality and the number of services provided by the hotel (Fortanier
& van Wijk, 2010).
“A hotel is a commercial establishment providing lodging, meals, and other guest
services. In general, to be called a hotel, an establishment must have a minimum of six
letting bedrooms, at least three of which must have attached (ensuite) private bathroom
facilities. Although hotels are classified into 'Star' categories (1-Star to 5-Star), there is
no standard method of assigning these ratings, and compliance with customary
requirements is voluntary” (online Business dictionary, 2011).
In the 1980s until the implementation of the economic recovery programme (ERP) all the
big hotels that met international standards belonged to the government of Ghana.
Although there were several other hotels operating in the country, most of them were
small in size and did not have adequate facilities to meet international standards. During
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the implementation of the ERP, all the state owned hotels were divested to private
individuals. Today the hotel subsector in Ghana is flourishing due to the privatization
which took place many years ago. Governmental role in the sector is mainly relegated to
policy making and crafting regulatory framework for the sector.
Although the landscape in the hotel subsector has changed with the springing up of many
small sized hotels and guest houses there still are only a handful of hotels that meet
international standards.
New major international luxury hotels are being built or
renovated and are mostly concentrated in Accra.
These include Hilton, Marriot,
Sheraton, Movenpick Hotel and Resort, and Ambassador Hotel (Ashitey, 2008).
United States based New Dawn Resorts (Holder Hospitality Group) is expected to build
an international resort complex on a 60-acre stretch of coastline in Accra, including at
least four hotels, restaurants, a casino, playgrounds, and other facilities. Holiday Inn was
also newly opened in June 2008 and a Golden Tulip hotel was built in Kumasi (Ashitey
2008).
Based on information gathered from Ghana Hotels Association website there are
approximately 816 hotels in the country currently.
Table 1.2 Members of Ghana Hotels Association and their location by Regions
REGIONS OF GHANA
NUMBER OF HOTELS
Greater Accra
389
Ashanti
61
Central
73
Volta
46
Eastern
80
Western
40
Brong Ahafo
43
Northern
33
Upper East
43
Upper West
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Source: Hotels Association of Ghana website 2011
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Tourism has a direct impact on the hotel sector in Ghana. The more tourism activities are
patronized the more there is the need for hotel facilities to serve the tourists – restaurants,
fitness centre, swimming pools, artifacts shops, guarded packing etc.
According to the GNA, international tourist arrivals in Ghana for 2007 were 587,000
while tourism receipts for the same year amounted to US$908 million. The average
annual growth rate between 2000 - 2007 was at 5.7 percent (Daily Graphic, 2010).
Tourist’s average expenditure also rose from 1,125 dollars in 2002 to 2010 dollars in
2008. In 2002, expendable money was 1,125 dollars, in 2003 it was 1,344 dollars, 2004
expendable cash was 1,711 dollars, 2005 expenditure 1,950 dollars, 2006 -1985 dollars
and 2007 it was 1,998 dollar whereas 2008 was 2,010 dollars. 146,653 business people
arrived during 2007 and in 2008 arrivals were 160,556 (GNA, 2010).
The hotel industry in Ghana is a major beneficiary of the tourist expenditure as captured
above. Boarding and lodging form a major part of the expenses borne by the tourist
although there are other expenses which are outside the hotel industry.
1.2
Problem statement and Purpose of study
Tourism is a very important sector to Ghana's economy as emphasized by the Ministry of
Tourism. It is the fastest-growing sector of the economy and it is expected to grow at an
average rate of 4.1 per cent per annum over the next two decades. Furthermore, it is the
fourth highest foreign exchange earner for Ghana - the country earned a total of US$1.3
billion in 2008 as confirmed by a former Minister of Tourism, Mrs. Azumah Mensah in
an interview with Ghana News Agency. There are major linkages between the tourism
sector and the hotel industry.
Normally in all-inclusive package tours more than 80% of
travelers’ fees go to the airlines, hotels and other services (Dogbevi, 2010).
According to Luigi Cabrini, Director, Sustainable Development of Tourism of the World
Tourism Organization (WTO). Ghana is the third most important tourist destination in
West Africa. The San Francisco-based Ethical Traveler listed Ghana as the 4th on its
select list of 10 developing countries in 2010 that attract tourists based on ethical values
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and the country's peaceful and progressive democratic practice also makes the country a
tourism destination of choice (Greenwald & Hoover, 2010).
All the positive signs in the tourism sector of the Ghanaian economy have a direct
positive impact on the hotel sub-sector. All tourists who travel within the borders of
Ghana spend money on one hotel facility or another. As Ghana continues to hold its place
among the high ranked preferred destinations, hoteliers stand to benefit. Despite the
goodwill that Ghana enjoys as a tourist destination, hoteliers need to market their
facilities appropriately by taking advantage of the many technologies that exists –
especially the internet. The internet is a major platform for enhancing business processes
especially marketing activities.
In Egypt, Syria and Lebanon, which are major tourism destinations in the Arab region,
the Internet is used mainly as a marketing tool, mostly for promotional activities by the
SMEs (El Said & Hone, 2005).
As competition becomes fierce in the hospitality industry many hotels in Ghana are
taking to the internet as a means to facilitate their businesses. However, little is known
about the internet marketing strategies being pursued by these hotels.
Currently there is escalating demand for hotels that meet international standards
especially in the emerging markets. Furthermore, there is urgent need for players in
Ghana to adopt the use of the internet as a comprehensive marketing tool in order to
survive ahead of the competition.
The use of ICT and the internet in the hotel industry can be considered a relevant
innovation that helps increase the competitiveness of the firms because it facilitates the
relationship with customers, through better and easier information flow that helps them
evaluate and contract the services (Rohm et al., 2004).
In view of the above, the main problem of this study is; are hotels in Ghana taking full
advantage of the opportunities the internet offers to market their facilities and services?
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For the above problem, the main purpose of the study is to find out what internet
marketing strategies are being pursued by hotels in Ghana.
1.3
Justification of the Study
The internet can offer a powerful competitive advantage for hotels the world over
however very little is known on how effectively hotels based in Ghana are using the
internet to market their facilities and services globally.
It is argued that smaller
accommodation establishments in developing countries can equally increase their
competitive edge the same as developed nations do (Anckar & Walden, 2001; Paraskevas
& Buhalis, 2002; Kilic & Okumus, 2005; Migiro & Ochalla, 2005).
Challenges abound in the industry and so taking advantages of other channels of
marketing through the use of the internet will help Ghanaian hotels to improve on their
occupancy rate.
It is envisaged that findings from this research will be useful for the hotel industry.
Especially, managers of Ghanaian hotels will get the opportunity to learn about new
internet marketing strategies they can adopt to make their businesses more successful.
The hotel industry in Ghana is a major sector providing livelihood for many families as
well as a source of foreign exchange earner to the economy of Ghana therefore this study
will make the sector more competitive and more sustainable in the long run in the face of
global challenges.
The potential benefits of using the Internet as a marketing tool in the hospitality industry
have been well documented by various authors. These benefits include cost savings in
terms of advertising, accessibility and communicating to a large number of people at the
convenience of the potential customer. The implications of these benefits for smaller
hotels are extremely important as it makes it possible for these businesses to compete in
markets that were hitherto inaccessible (Haynes, et al., 1998).
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1.4
Organization of the Thesis
The study is organized into six chapters. Chapter one is the introductory chapter that
covers the background to the study, problem statement and purpose of the study, and
finally the organization of the thesis.
Chapter Two was used to review relevant literature on the study. It covers hotel industry
and the Internet, advantages and challenges of the internet and finally a review of internet
marketing models and Tools.
Chapter Three contains the frame of reference for the study. It includes the Research
Questions, Procedure for answering the research questions and the adopted Conceptual
Frame Work to guide the study.
Chapter Four is made up of the research methodology. It covers the Research
Perspective, Data Collection, Data Analysis, Access Strategies and the Credibility of the
study.
Chapter Five is Presentation of Data and Analysis.
Chapter Six covers Discussions of Findings, Conclusions and Implications
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CHAPTER TWO
2.0
Literature Review
T
2.1
his chapter reviews related literature. Based on the research problem; hotel
industry and the internet, advantages and challenges of internet marketing are
presented. Finally Internet marketing models and internet tools are presented.
Hotel Industry and the Internet
Currently, there are 1.96 billion Internet users in the world, up 444.6% from the year
2000 Africa has 110 million internet users while Ghana has 1.29 million users growing at
4,223.3% since the year 2000 (Internet World Stats, 2010).
The internet has increased the productivity and efficiency of hotels’ marketing effort
(Porter, 2001).Hotels will lose their competitive edge where they do not have a
significant presence on the internet (Van Hoof & Combrink, 1998). According to Anckar
& Walden, (2001) hotels that do not have a web presence cannot bridge the gap between
their existing and potential customers and also become competitively disadvantaged. It is
argued by Migiro & Ochalla, (2005) that the advantages that the internet offers such as
cost reduction, improved efficiency among other things can be equally enjoyed by
smaller accommodation facilities in developing countries.
Armijos, et al., (2002) contend that technology applications and Internet usage have
assisted hotel companies in the realization of increases in most major industry indicators,
such as gross revenue, average daily rate, revenue per available room, and net
profitability. Older British travelers are increasingly using the Internet and prefer an
online relationship rather than offline interactions (Graeupl & McCabe, 2003).
The International Hotel and Restaurant Association (IH&RA) has discussed the
importance of technologically-induced changes in hospitality in its “Think Tank”
sessions at their annual conference (Connolly & Olsen, 2000). The findings suggest that
e-commerce and information technology would be the most important competitive
17
advantage for any hospitality company to compete successfully and create value for both
the customer and the firm (Connolly & Olsen, 2000; Dev & Olsen, 2000; Elliott-White &
Finn, 1998).
The use of the Internet is becoming a positive trend and an important core competency
for hospitality businesses (Connolly, Olsen,&Moore,1998; Van Hoof & Combrink, 1998;
Vanucci & Kerstetter, 2001).
For hospitality practitioners, the establishment of an effective company web site will
provide their company a competitive position in a global environment (Gregory &
Breiter, 2001)
2.2
Advantages and Challenges of Internet Marketing
On the benefit side, there is no doubt that the Internet gives access to a great number of
people, as well as it offers the opportunity of building closer relationships with customers
(Buhalis & Licata, 2002; Wang et al., 2002). The Internet is an exposure of property by
which advertising and marketing opportunities occur (Baloglu & Pekcan, 2006). It
creates faster and better communication, which makes it easy to identify and target that
base. The Internet reduces the time and costs associated with delivery and postage
(Gursan, 2002).
Through the Internet, the hospitality industry has been able to market services in a variety
of methods ranging from mass-marketing to mass-customization where customers’ needs
and wants are targeted individually (Ismail & Mills, 2001; Paraskevas & Buhalis, 2002).
Furthermore, the Internet works in cyberspace, which brings the opportunity of being free
from geographical and national borders (Anckar & Walden, 2001). Finally, with its
equalizing effect the Internet creates a level playing field where size does not matter
(Sigala, 2003).
Online advertising, in all its forms, offers a chance to brand and inform, not just sell also
although it is unique, it is related to offline branding. The Web has become the single
18
most important medium for people at work. Most such users view it as a place where
successful, modern, up-to-date brands advertise. (Demarse 2002)
On the drawback side, the financial cost and time spent setting up and maintaining the
fundamental system can be mentioned (Heung, 2003; Van Hoof & Combrink, 1998).
According to Palumbo and Herbig (1998), security, confidentiality, and privacy issues in
financial transactions are important and common problems on the Internet.
Another drawback that many potential consumers have is the low speed access or low
bandwidth connection to the Internet via modems (Anckar &Walden, 2001). Besides its
potential benefit of reaching a large audience, your competitors do have the same benefit,
which forces your website to compete with thousands of others (Gilbert & Powell-Perry,
2002). Alienation of potential customers and losing that personal touch are some of the
fears of both customers and hoteliers (Blikom, 1996).
2.3
Internet marketing models
Marketing is regarded as a creative and adaptive discipline that is constantly regenerating
itself. According to Zott, et al., (2000) there are three major capabilities of the internet;
Interactivity:
Relationship between organizations and customers is increasingly
becoming interactive due to the real time nature of the internet. The internet presents
businesses and customers with two way and information rich channel.
Connectivity: The open and global reach nature of the internet is spearheading the
creation of a global market space where businesses and customers can do business
irrespective of their location. Over the past decade there has been an exponential increase
in connectivity resulting in new communication mechanism across businesses and
customers and even among customer groups.
Convergence: Digital technologies are converging at a faster rate making internet more
accessible. An example is the emerging of wireless application protocol (WAP) which
permit mobile internet access (Zott, Amit, & Donlevy, 2000 ; cited in Zigala, 2003)
19
The unique capabilities of the internet are creating new marketing concepts and
paradigms (Sigala, 2003). The changes in marketing concepts is confirming the point of
view of Zott, et al., (2000) In view of this, some Authors like; Chen, (2001) and Hanson,
(2000) are calling for the very principles of marketing to be changed and developed.
Others strongly believed that the traditional 4Ps of marketing practices will not change;
but what are changing are the ways by which the traditional marketing mix dimensions
are utilized to exploit the enhanced and new capabilities of the internet (Brandy, et al.,
1999; Mahajan & Venkatesh; Leeflang & Wittink, 2000). Some scholars are of the view
that; internet and ICT, coupled with the increased power of consumers, has given rise to
new marketing concepts such as viral, contextual, interactivity, community and
relationship marketing (Hagel, 1999; Hardaker & Graham, 2001; Werbach, 2000; Gilbert,
Powell-Perry, 1999).
In view of the transformation of marketing activities on the internet and the level of
website functionality the following models are discussed.
2.3.1
Internet Value Chain Model
Cronin (1995) developed value chains that followed Porter’s value chain thinking and
was based on virtual principles. The internet value chain is divided into three separate
components; “inputs from suppliers”, “internal operations” and “customer relations”.
2.3.1.1 Inputs from suppliers
Figure 2.1 illustrates the impact of the internet on inputs from suppliers and vendor.
According to Vanharanta and Breite (2003) “the internet has reduced the meaning of time
and location”. This is to say, the internet provides organisations with the opportunity to
add value in its acquisitions activities; the internet provides fast, reliable connections
among businesses. Hence, organisations irrespective of their location can reliably and
quickly communicate with different suppliers and vendors for different reasons without
incurring additional cost as compared to other means of communications (Cronin, 1995)
20
Figure 2.1 Internet Value Chain: Input from suppliers
internet
capability
Pricing
and
Ordering
Benefit to company
Easy efficient
access
Faster
turnaround
Information
constantly
updated
Improves
planning
Not looked
into
proprietary
system
opportunity for
advantage
Delivery/order
tracking
Online inventory
Direct access
to expertise
Interactive
Fewer
inventories
Lower cost
of obtaining
materials
Source:
Product
Support
Faster more
flexible
delivery
Faster
problem
resolution
improved
reliability and
performance
Internet Value Chain: Inputs from Suppliers (Cronin 1995, p. 58)
Figure 2.2 Internet Value Chain: Internal Operations
internet
capability
Global connectivity
R&D/Collaboration/sharing/
Distributed Resources
Savings in
telecommunitions
Benefit to company
Facilitates
business partnership and
joint venture
Improves connections to
business partners and cutomers
Shortens
development
time
Disserminate
resources
more broadly
Promotes
global Reach
Opportunity for
advantage
International
reach
Flexibility and effectiveness
Information based activities
LocationIndependent work
Flexible work
arrangement
Telecommuting and
contract
employee
Virtual teams
based on
expertise not
locations
Increased
productivity
Internet Value Chain: Internal Operations (Cronin 1995, p. 60)
21
2.3.1.2 Internal Operations:
Figure 2.2 emphasized how organizations can leverage on the effectiveness and reliability
of the internet to effectively and reliably share and acquire information within the
organization. Vanharanta and Breite (2003) pointed out that, information plays a major
and an important role in any organisation hence it’s important for organisations to
effectively managed the acquisition and sharing of information. According to Cronin
(1995) the global connectivity of the internet offers organisations with the opportunity to
share and acquire information on a global scale at a lower cost well as exchange
information quickly and easily thus facilitating relationships with business partners and
customer
Figure 2.3 Internet Value Chain: Customer Relations
internet
capability
Benefit to company
Marketing and product
Research
Sales and Distribution
Reaches new
customer
Data for
market
research
Lower cost
distribution
method
Establish
consumer
response to
new product
Multiplies
contact at no
incremental
cost
Environmental scanning
Opportunity
for advantage
Increased
market share
lower cost margins
Support and customer
feedback
Access to
customer comments on-line
More staff in
contact with
customers
Immediate
response to
customer
problems
enhanced customer
satisfaction
Source: Internet Value Chain: Customer Relations (Cronin 1995, p. 61)
2.3.1.3 Customer Relations
Figure 2.3 emphasizes how the internet can be used by companies to build strong
relationship with customers. To build strong relationship with customers, companies must
22
get hold of information about customer’s needs and attitudes. The internet provides an
easy way of doing this, for instance through discussions groups, blogs, bulletin boards,
web survey and polls, companies can collect customers view of a product or service
(Cronin, 1995)
The three units of the internet value chain illustrate how the internet can be applied in all
marketing functions from presales, sales and after sales activities. According to Sigala
(2003) the model identifies three areas of internet marketing functionality, namely
marketing and product research, sales and distribution, and support and customer
feedback.
Zott et al., (2000) argued that, the internet value chain does not consider the three internet
capabilities, thus studies investigating the internet use by companies operating in the
tourism and hospitality industry using the internet value chain as their frame of reference
to list websites features into specific business functions (example, Baker et al., 1999,
Weeks & Crouch, 1999) failed to incorporate internets transformational impact. (ibid)
2.3.2 The Web-Marketing Mix (WMM) Model
Constantinides (2002) developed the Web-Marketing Mix model (4S) based on the
weakness of the traditional marketing mix (4Ps) not being able to address marketing
activities on the web. One obvious weakness is the fact that the model does not explicitly
include any interactive elements while interactivity is the basis of the Internet Marketing.
According to Constantinides (2002) The Web-Marketing Mix (4s) identifies four online
marketing strategic, operational, organisational and technical critical factors: the Scope
(strategic issues), the Site (operational issues), the Synergy (integration into the physical
processes) and the System (technical issues) as show in figure 2.4
23
Figure 2.4 Web Marketing Mix (WMM)
Source: Constantinides 2002 Web Marketing Mix
2.3.2.1 Scope
The content of this element is of primarily strategic character and outlines the decisions
to be made on four key areas:
The strategic and operational objectives of the online venture; The online activities must
pursue their own, clearly defined strategic objectives, in line with the corporate mission
and strategic goals in order to generate additional value.
24
The market definition includes measuring the market potential and the identification of
potential competitors, visitors and customers of the site.
The degree of readiness of the organisation for E-Commerce; According to Christensen,
(1998) adoption of new technologies can have sustaining or disruptive effects on
organisations, depending on the firm’s resources, processes and values. Porter (1985)
claims that internal analysis should be focused on these three factors (resources,
processes, and value) in order to identify the degree of company readiness to assimilate
E-Commerce.
The strategic role of E-Commerce for the organization; the strategic role describes the
tasks assigned to the online activity and must reflect on the firm’s online model.
2.3.2.2 Site
The Web Site is primarily the company–customer interface, the prime source of customer
experience and therefore the most important communication element of E-Commerce.
Hence the Web site is the functional platform of communication, interaction and
transaction with the Web customer (Constantinides, 2002)
The main objectives and tasks of web site depending on defined strategic role include:
• communicating and promoting the E-business image, labels and products/services;
• providing company information to customers and stakeholders;
• effectively communicating the firm physical or virtual promotional activities;
• providing customer service and helpdesk functionality in order to enhance the customer
loyalty and retention;
• providing sales leads and customer/market data;
• allowing customers to communicate and interact with the company as well as creating
online content;
• allowing direct sales and facilitating online payments (transactional sites).
25
2.3.2.3 Synergy
Synergy is viewed as the integrating processes necessary for realising the virtual
organisation’s objectives. Such synergies can develop between the virtual and the
physical organisation as well as between the virtual organisation and third parties
(Constantinides, 2002).
Synergy highlights a wide range of issues classified into three main elements: the front
office, the back office and the third parties.
Front Office synergy refers to the conventional corporate communication and distribution
strategies. The Front Office element underlines the need to examine and identify ways
that would facilitate the full integration of the Web operation into the company’s
communication plan, corporate style as well as the existing physical retail channels.
The Back Office synergy includes a wide set of issues:

the integration of E-Commerce physical support activities (customer service, order
processing, fulfilment and reverse logistics) into the existing organisational processes;

legacy integration; Integration of online activities into the existing Information
Infrastructure

integration of the online operation into the company’s value system (Porter 1980)
The Third parties Synergy embraces the co-operation with Internet partners outside the
organisation and its value system. This networking aim at strengthening the competitive
position of virtual organisations and the network must be seen as complementary to the
traditional promotional activities. Examples of partners for online synergies are: Search
engines and Web directories, Affiliate networks and online advertising.
2.3.3 The E-commerce Service Index Framework
According to Sigala (2003) “the ecommerce service index framework has two
dimensions: the existence of different services (that is dissemination of information,
communication, order, payment, and delivery) and the development of services of
services towards more sophisticated and integrated process between the customer’s
actions and the suppliers Information Technology Systems (example, traditional
26
processes, personalised or customised services)”. The EC framework overcomes the
limitation of the internet value chain due to the more sophisticated internet tools (ibid)
Dussart, (2000) and Zott et al., (2000) both argued that, though the EC framework
incorporates customer services elements and more sophisticated IT tools, it still fails to
mention how the internet’s capabilities have changed marketing strategies.
2.3.4 Information Communication Distribution and Transaction (ICDT) Model
According to Angehrn, (1997) a key point of the use of the Web, is how fast one is able
to move information. In view of this, Anghern (1997) developed a model for internet
marketing strategies incorporating both the number and types of services and the level of
sophistication of websites. This model was called ICDT - Information, Communication,
Distribution and Transactional. The model is to provide an understanding as to the
different stages organizations can make use of the internet to develop a strategy The
ICDT model divides the Virtual Market Space in four components as shown in Figure 5.
According to Sigala, (2003) the ICDT model provides the fundamentals of differentiating
four separate types of marketing strategies. Businesses striving at increasing the visibility
as in who’s who, what is available, how much it costs and improving the perception of
products or services could achieve it by internet either internet based marketing initiatives
– VIS or by influencing the business communication strategy – VCS. Hagel (1999), also
support Sigala’s view by saying, the access to information is the key point to bargain for
the power in any commercial transaction. Commercial transactions do not show so many
possibilities of innovation and increase of sales as online transactions do. Nowadays
businesses are presented with the situation whereby customer’s loyalty to a website is
lacking. Hence for companies to build loyal visitors to their websites and build up an ongoing relationship, then it needs to regularly update the content of its pages (ibid)
According to Hagel (1999), there are three different situations:
- Generating traffic: get the site visited by the target public.
- Concentrating traffic: make the site to be visited for a longer time.
- Keeping traffic: make more difficult to site users to leave the virtual community.
27
Figure 2.5 ICDT Model
The ICDT Model Source: Anghern (1997)
The VDS and VTS presence is aimed at reducing costs, lead times, improving quality and
innovating product or services through the possibility of using the internet for distribution as well
as using the internet as medium to carryout transaction (Sigala, 2003)
According to Angehrn and Meyer, (1997) and supported by Sigala, (2003) the ICDT induces
further classification of the four basic types of internet presence. As illustrated in figure 2.6, for
each type of virtual presence (VIS, VCS, VDS, and VTS) – two further dimensions are
considered; level of sophistication in terms of technical sophistication (simple or advanced) and
level of customization (low or high). Sophistication reflects the degree to which specific
characteristics of the underlying virtual space are exploited. On the other hand, customization
indicates the level to which the internet is used to provide individualized products and services.
In both cases (sophistication and customization) Sigala (2003) opined that they can be classified
as low or high depending on the level of exploitation of the interactivity, connectivity and
convergence capabilities of the internet as well as the nature of internet tools or IT tools and the
mechanism being put into use.
28
Figure 2.6 Classification of the ICDT dimensions by level of sophistication
and customization
Source: Angehrn and Meyer (1997)
The transformational power of the internet on marketing and the effectiveness and results
of the strategy adopted hugely depends on the level of sophistication and customization
(Zott et al., 2000).
The ICDT model is considered as a valuable and effective tool for measuring the degree
of internet-fostering marketing transformation and its business value and effectiveness
also the model considers the three internet capabilities and incorporates internet
transformational impact (Wen & Chen 2001 cited Sigala, 2003).
2.3.5 The Internet Marketing Mix Model
In the research, Developing and Benchmarking Internet Marketing Strategies in the Hotel
Sector in Greece, Sigala (2003) adopted the ICDT model and made the following analysis
and modifications.
1. The unique internet capabilities enable the development of an extended internet
marketing mix that is composed of five dimensions: the traditional four Ps
(product, price, place, promotion) in which each one corresponds to each virtual
space and the customer relations (c) dimensions which account for the new
knowledge based application enabled by internet tools.
29
2. The dimensions are further characterised by different level of sophistication.
In conformity with Angehrn’s (1997) point of view of the ICDT (internet marketing mix
model), the model identifies two main areas of internet-enabled marketing
transformation: the type and the number of the internet marketing mix dimensions being
transformed and the level of sophistication of the transformed dimensions that make use
of the customization/aggregation capabilities of the internet. Depending on the
exploitation of the interactivity and connectivity capabilities of the internet, the aspects of
each dimension of the model are characterized as of low or high sophistications. However
all aspects of the customer relations dimension were characterized as of a high
sophistication since their provision require the use of advanced technological tools and
features and huge financial implications (Sigala, 2003; Murphy et al., 2001)
30
2.4
Internet Tools
Figure 2.7 Online Marketing Tools
Source: Reed (2011); Choosing online marketing tools
According to Reed (2011) apart from a company website and email, the two broad
categories of internet tools are content tools and outreach tools. While outreach tools
enable the business organization to network on the internet, content tools provide the
platform for valuable information that can be located and passed on from the internet.
Content tools are in four main categories – audio, video, images and text.
31
Online marketing tools has been categorized into 4 main groups according to (Thomson,
2005).
Tools to attract customers
-
websites
Tools to engage customers
-
forums
Tools to retain customers
-
setting up loyalty programs
Tools to learn about customers
-
webpage tracking devices
Tools to relate to customers
-
providing personalized communications
with customers
Some of the internet marketing tools include Social networks, Publishing , Photo sharing,
Audio streaming, Video streaming, Live casting, Virtual worlds, Gaming, Productivity
applications, Mobile applications (Safko, 2010).
32
CHAPTER THREE
3.0
3.1
Research Questions and Frame of Reference
I
n this chapter the research questions are formulated base on the research problem
and purpose as well as the literature review. Also the selected model in this study
will be discussed to build a frame of reference for the study.
Research Questions
Research questions are aimed at explaining what the research attempts to understand.
According to Maxwell, (2005) research questions serve two main purposes: to help focus
the study (the questions’ relationship to your goals and conceptual framework) and to
give guidance on how to conduct it (their relationship to methods and validity).
To understand the internet marketing strategies being adopted by hotels in Ghana, the
following research questions have been develop to guide the study:
Research Question 1 (RQ1)
What is the composition/structure of the hotels’ Internet Marketing Mix?
Research Question 2 (RQ2)
Which dimensions of the Internet Marketing Mix are being transformed by the Hotels?
Research Question 3 (RQ3)
What Internet marketing strategies are being pursued by hotels in Ghana?
Research Question 4 (RQ4)
What is the level of sophistication/transformation of the hotels Internet Marketing Mix
dimensions?
Research Question 5 (RQ5)
Are hotels in Ghana fully exploiting the Internet capabilities and features?
33
3.1.1 Procedure for Answering Research Questions
The following describes how the research questions were answered
Research Question One (RQ1)
Research question one is about the structure/composition of hotels internet marketing
mix. This question addresses how hotels in Ghana have modeled their internet marketing
activities along the five internet marketing mix dimensions adopted from Sigala (2003).
In order to provide detail overview of how the surveyed hotels have transformed their
traditional marketing mix unto the virtual space enabled by the internet we collected data
using the research instrument which was based on the conceptual framework adopted in
this study. Based on the data collected, we present in simple frequencies and percentages
how the surveyed hotels have designed their web sites to include features listed in each of
the five dimensions illustrated in the conceptual framework (table 3.1). Overall
development within each dimension will be based on the number of hotels that provide
listed features within that dimension.
Research Question Two (RQ2)
Research question two is about the dimensions being transformed by the surveyed hotels.
Transformation in this context depicts how hotels have modeled their traditional
marketing mix unto the virtual space. The amount or degree of transformations of each of
the dimension is computed as the ratio of the sum of the aspects/features used to the total
number of expected aspects within the dimension. Each aspect carried the same weight.
Based on this assumption and the overall achievements along each of the internet
marketing mix dimensions we can now come out with the amount/degree of
transformation in each of the dimensions and show those attracting the most attention.
Research Question Three (RQ3)
Research question three is about the internet marketing strategies being followed by the
surveyed hotels. This question will be answered using findings from research question
one and two. Specifically, for modelling Internet marketing strategies being followed by
hotels in Ghana, the Internet marketing mix model will be used, as it is widely argued to
34
be a useful tool in analyzing Internet marketing strategies. The type and the number of
the Internet marketing mix dimensions being transformed as well as the composition of
the internet marketing mix is argued to reflect the type of the marketing or business
strategy (Angehrn, 1997). Based on the findings from research question one and two, we
answered the question making reference to theory.
Research Question Four (RQ4)
This question is about the level of sophistication/transformation of the hotels internet
marketing mix dimensions. To measure the level of sophistication/transformation of the
hotels internet marketing mix, we analysed the responses with respect to the features in
each of the five dimensions using the multiple response tool in SPSS. The features in
each of the dimensions are characterised as low or high sophistication depending on the
extent to which internet enabled capabilities are exploited (Angehrn and Meyer, 1997;
Sigala, 2003). Again the overall level of sophistication of each of the five dimensions is
calculated using the sum of the aspects that the respondent answered “Yes” and the total
number of aspects within the dimension from the multiple response output for each
dimension; Where level of sophistication is calculated as the ratio of the sum of the
aspects used to the total number of the aspects within the dimension (Sigala, 2003). To
clearly answer this question we made the following assumptions to serve as our decision
rule: (1) a transformation degree less than 0.5 or 50% indicates a low
transformation/sophistications; (2) a transformation degree above 0.5 or 50% indicates
high transformation/sophistication.
Research Question Five (RQ5)
Research question five is about exploitation of the unique capabilities of the internet.
Based on the results in research question four, we present the extent to which hotels are
modeling their marketing activities to exploit the capabilities and features of the internet.
This is consistent with Sigala (2003) as she argues that the level of the sophistication
indicates the level of the exploitation of the Internet’s capabilities that, in turn,
determines the effectiveness of the related Internet marketing strategy. Low
35
sophistication value indicates that hotels are under exploiting the capabilities of the
internet, whereas high sophistication values indicates that they are more than averagely
exploiting the capabilities of the internet.
3.2
Frame of Reference
The main purpose of this section is to provide an appropriate frame of reference for
investigating internet marketing strategies among hotels in Ghana. According to Miles
and Huberman, (1994) “A frame of reference explains either graphically or in narrative
form the main things to be studied, the key factors, constructs or variables and the
presumed relationships between them”. Also a frame of reference presents the theories
and models that are most suitable for the research problem and it also describes how the
theories are related to each other.
As indicated in chapter 2, the ICDT model is considered as a valuable and effective tool
for measuring the degree of internet-fostering marketing transformation and its business
value and effectiveness. Also the model considers the three internet capabilities (and
incorporates internet transformational impact (Wen & Chen 2001; cited in Sigala, 2003).
Based on the ICDT model, Sigala (2003) postulated the extended internet marketing mix
model which includes the traditional four Ps and Customer relation dimensions.
Measuring internet marketing activities base on these five dimensions is argued to be an
appropriate, effective and valuable tool that fully exploits the transformational
capabilities of the internet (O’Connor, 1999; Sigala, Lockwood, & Jones, 2001; Liu &
Arnett’s, 2000). For the purposes of analyzing the internet marketing strategies being
adopted by hotels in Ghana, this research makes use of the extended internet marketing
mix developed by sigala (2003).
As pointed out earlier in chapter two, the traditional internet mix (4Ps) corresponds to
each virtual space of the ICDT model and the customer relation (C) is enabled by the
emergence of new and sophisticated internet tools. The model also identified two areas of
internet enabled marketing transformation: the type and the number of the internet
marketing mix dimensions being transformed – indicating the type of business strategy
36
being pursued by the organization and the level of sophistication of the transformed
dimensions that exploit the internet’s customisation/aggregation capabilities – indicating
the level of the exploitation of the internet’s capabilities. (Sigala, 2003)
This model has been chosen because it indicates how each of the five dimensions in the
extended internet marketing mix is analyzed, depicting the degree to which hotels have
adopted sophisticated internet marketing strategies.
To measure the degree to which hotels in Ghana have adopted sophisticated internet
strategies, each of the five dimensions are analysed in several features as shown in
table 3. This is in line with Angehrn’s , (1997) and Sigala, (2003) analysis of the internet
marketing mix model, the features of each of the five dimensions are characterised as
low or high sophistication depending on the extent to which the interactivity and
connectivity capabilities of the internet are exploited by the hotels. In table 1.0, features
under the heading low sophistication represents activities of low sophistication whereas
features under the heading high sophistication represent activities of high sophistication.
To measure the transformation degrees of each of the five dimensions the ratio of the sum
of all the aspects used to the total number of the aspects within the dimension is
calculated with all the aspects having the same scale.
3.2.1 Dimensions of Internet Marketing Mix
Transformation of Product (VIS): According to Angehrn, (1997) simply creating a web
site does little to stimulate interest, It only establishes contact. Thus the availability of
static information on the hotel Web site is characterized as low sophistication aspect,
whereas the remaining aspects represent high sophistication because they reflect the use
of multimedia features as well as the use of customer information for providing
customized interfaces and products/services (Angehrn, 1997).
Transformation of Pricing (VTS): The availability of prices on the hotel Web site is
characterized as of a low sophistication aspect in the VTS. Whereas hotel websites that
make provisions to regularly change their prices online depending on demand, guest
profiles,
and/or
when
customers
could
37
negotiate
room
rates
online
(i.e.,
bidding/auctions), are classified as high sophistication because they reflect the use of the
networking and informalization (i.e., reach and richness) capabilities of the Internet (O’
Connor, 2002; Sigala et al., 2001 cited Sigala, 2003).
Transformation of Place (VDS): The two features of the VDS indicating unavailability of
online booking options (i.e., bookings received by email requests) as well as the hotel
website promoted on the Internet (e.g., through search engines, infomediaries) are
characterized as low sophistication. The provisions of online bookings and secure
payments indicates high sophistication aspects as their provision requires the use of
higher and more complex technological functionality (Wen et al., 2001; Zott et al., 2000)
38
Table 3.1 Extended internet marketing mix
Transformation of Product (VIS)
Transformation of Pricing (VTS)
Low sophistication:
Low sophistication:

The availability of product-related
information online
High sophistication:
The availability of interactive entertainment
multimedia
The customization of products/Web page for
individual or groups of customers
The participation of customers in the
specification and design of itineraries, hotel
rooms, and/or amenities/services

The availability of pricing information
online
High sophistication:


The dynamic customization of prices based
on either personal information or on
demand patterns
The availability of online price negotiation
either on property website or on partners
Web site
Transformation of Place (VDS)
Transformation of Promotion (VCS)
Low sophistication:
Low sophistication:


The availability of e-mail request for
bookings
The promotion of the Web site on the
Internet



High sophistication:




The availability of online booking
The use of online advertising
The use of online promotions such as sales
and discounts
High sophistication:
The availability of secured online
payment
The customization of online promotions
Links with other organizations in organizing
online promotions
Transformation of Customer Relations
Low sophistication: NULL
High sophistication:





The provision of online customer service
The online identification and tracking of
customers to provide customized
services
The provision of online communications
to customers
The creation of online communities for
customers
The solicitation of online feedback from
customers
Sources: Adapted from Sigala, (2003): The extended internet marketing mix
Transformation of Promotion (VCS): the features reflecting the use of the Internet for
advertising and for the provision of online promotions characterized low sophistication
use of Internet tools, whereas the last two aspects were characterized as of a high
sophistication because they fully exploit the informalization and networking capabilities
39
of the internet to customize promotions and allowing customers to customise promotions
depending on customer profiles and preferences (Gretzel, et al., 2000; Rowley, 2001).
Transformation of Customer Relations: all the features of the customer relation
dimension were characterized as high sophistication because to make use of them
requires the exploitation of advanced technological tools.
40
CHAPTER FOUR
4.0
Research Methodology
T
his section provides a description and an outline of the methods that will be
used in this research as well as the theoretical basis behind the approaches. It
will also provide a clear understanding for readers as to how the research was
carried out. It includes: General research perspective, data collection and brief discussion
about validity of the study.
4.1
Research Perspectives
Research methodology is defined as the procedural framework within which the
conduction of a research is guided (Remenyi, et al., 1998; Saunders, et al 2007). A
methodology is largely dependent on the perspectives the researcher chooses to approach
a study. According to Saunders et al (2007), the perspectives that usually shape a research
work can be broadly grouped under five umbrellas as shown in Figure 4.1
Figure 4.1 The research “onion”
Research Purpose
Research Philosophy
Research
Approach
Time
Horizon
Research
Strategy
Source: Adapted from Saunders, et al., (2007)
41
4.2
Research Purpose
Research purpose is basically a broad statement of what the research hopes to achieve
and it is mostly classified according to the researcher’s knowledge about the problem
before the commencement of the study (Ghasemi, 2000). According to purpose, research
could be broadly divided into exploratory, descriptive and explanatory (Saunders, et al.,
2000, 2007; Cooper and Schindler 2006; Aaker and Day 1994; Yin 2003; Zikmund,
2000).
An exploratory research is a study that is conducted to “define and clarify the nature of a
problem and to seek new insight and understanding to phenomena with the aim of
coming out with ideas and hypothesis for future research” (Robson, 2002; Yin, 2003). It
is mainly used when a researcher wants to clarify an ambiguous problem or have a
clearer understanding of a situation or a problem, where the area of study is so new or
vague (Zikmund 2000). Methods such as searching documented materials, seeking the
opinion of expert’s and conducting focus group interviews are mainly employed
A descriptive research is a study that seeks to “portray an accurate profile of persons,
events or situations” (Robson 2002). Zikmund (2000) is of the view that descriptive is
used to describe the characteristics of a population or phenomenon. Samouel et al. (2003)
says, descriptive research uses descriptive statistics such as frequency counts (how
many), measure of central tendency or measure of variation. In summary, it involves
formalizing the study with definite structures in order to present facts about a population
or phenomenon as it is perceived or as it is in reality.
An explanatory research is a study that seeks to establish relationship that exists between
variables. In other words its purpose is to identify how one variable affects the other; it
seeks to provide an explanation to the causes and/or effects of one or more variables
(Saunders, et al., 2000, 2007; Cooper & Schindler, 2006). In this type of study the
emphasis is on studying a problem or a situation with the aim of explaining relationship
between variables. They are also used when the purpose of the study is to answer ‘why’
in a given context.
42
This study is primarily descriptive as we sought to describe or portray a reality regarding
the internet marketing strategies that are being pursued by hotels in Ghana and to
understand the internet marketing mix dimensions that are being transformed in the
Cyber space. The study also provides a background and a relatively accurate picture of
the situation.
Also the study is exploratory as the researchers seek to have a clearer understanding of
the internet marketing strategies that has been adopted by hotels in Ghana.
4.3
Research Philosophy
Research philosophy refers to the assumptions and beliefs that govern the way we view
the world. According to Saunders, et al., (2000; 2007); Easterby-Smith, et al., (1991);
Cooper & Schindler, (2006); Sullivan, (2001) and Malhotra and Birks, (2007) research
can be influenced by positivism or phenomenological beliefs. Easterby-Smith, et al.,
(1991) elaborates the main elements and key features of the two philosophy alternatives:
Table 4.1 Research paradigms
Positivist paradigm
The world is external and Objective
Basic beliefs
Researcher
should
Preferred
methods
Include
Phenomenological
Paradigm
The world is socially constructed and
subjective
Observer is independent
Observer is part of what observed
Science is value-free
Science is driven by human interests
Focus on facts
Focus on meanings
Look for causality and fundamental
laws
Reduce phenomenon to
simplest elements
Formulate hypotheses and then test
them
Try to understand what is happening
Operationalising concepts so that
they can be measured
Using multiple methods to establish
different views of phenomena
Taking large samples
Small samples investigated in depth or
over time
Source: Easterby-Smith, et al., (1991)
43
Look at the totality of each
Situation
Develop ideas through induction from
data
According to Saunders et al., (2000: 2007) Positivism approach was influenced by the
scientific discoveries made during the 18th and 19th centuries, it was clear during that time
that a body of knowledge existed independently of whether people know it or not and the
scientific task was to discover this body of knowledge. It was widely assumed that social
behaviour is as a result of external pressure acting on relatively passive people and there
were such things as absolute truth and that it could be used to create a better society. This
approach leads to the development of methods that concentrate on producing objective
data usually in the form of statistics.
Phenomenologist deny what positivists assert that humans can be studied using the same
philosophical base as used in studying physical objects or other animals.
Phenomenologist are of the opinion that there is a difference between the subject matter
of sociology and natural science and humans are active, conscious beings and capable of
making choices (ibid)
In summary, research philosophy is said to be positivism when “knowledge or the world
is thought to exist independent of people’s perceptions of it and that science uses
objective techniques to discover what exist in the world” (Sullivan, 2001). It is
phenomenological where “reality of the world is thought to arise out of the creation and
exchange of social meaning during the process of social interactions” (Sullivan, 2001).
Considering the research problem and objectives, this study is more phenomenological
than positivism as the focus is on understanding the internet marketing strategies being
pursued by hotels and present the totality of the situation.
4.4
Research Approach
Research may be approached qualitatively or quantitatively. The choice of research
approach largely depends on the defined research problems and the kind of data required
in solving these problems (Guba & Lincoln, 1994).
44
According to Yin (2003) when the purpose of the study is to test hypothesis and
generalise results; then quantitative method is used. In quantitative research, the
researcher employs cause and effect thinking, reduction to specific variables and
hypothesis and questions, use of instruments and observations and test of theories.
According to Nueman, (2003) and Cooper, (2006) quantitative approach is generally
characterized with quantifiable and numeric data usually expressed in numbers and
statistics. It is also associated with large amount of samples, high concern for
representation as well as a highly structured data collection method. Thus in quantitative
research, the focal point is variables and relationships not processes. Quantitative
research borders on measurement and analysis of causal relationships between variables.
(Neuman, 2003; Zikmund, 2000)
Qualitative study is basically a study conducted to understand a social or human problem,
based on primarily building on a complex holistic picture, formed with words, reporting
detailed views of informants and conducted in a natural setting (Creswel, 2003). Crewel
(2003) did mention that, whiles researchers make use of post positivist claim for
developing knowledge in quantitative study, investigators primarily make knowledge
claims based on constructivist perspective in qualitative study (i.e., the multiple meaning
of individual experiences, meaning socially and historically constructed, with an intent of
developing a theory or pattern.
In contrast to quantitative research where data is expressed in numbers and statistics,
qualitative approach involves data in the form written or spoken words, actions, sounds,
symbols, physical objects, or visual images and its primarily involves small sample,
unstructured methods for data gathering as well as little attention on representative. (Yin,
2003; Neuman, 2003)
Choosing a research approach largely depends on the definition of the research problems,
research questions, objectives and the data needed to solve the problems or to achieve the
stated objective. In this study the objective is to investigate the internet marketing
strategies that are being pursued by hotels in Ghana. To carry out this study a model
developed from literature review was used and a questionnaire was designed and used to
45
survey the Ghanaian hotel industry. Considering the above issues and reviewing literature
the study will be quantitative.
Research may be approached from deductive or inductive perspectives. It is deductive
when it begins with the development of a theory or hypothesis and proposition and a
strategy is designed to test it in a context to verify or reject its self generated hypothesis
or proposition. So it is thinking from general to specific (ie., from rule to case to result).
According to Saunders, et al., (2000) the following characteristics are associated with
deductive approach;

There is a search to explain casual relationship between variables.

Data collection method is usually quantitative. (,..This is not to say that deductive
method may not use qualitative data)

Deductive approach controls to allow the testing of hypothesis

Concepts need to be operationalised in a way that allows facts to be measured
quantitatively.

Deductive approach is about generalisation and in order to generalise about
regularities in human social behaviour it is important to select sample of sufficient
numerical size (ibid)
On the other hand, the approach is inductive where the research begins with an
observation of a phenomenon in an environment, then data is collected upon which a
theory is developed or generalization is made. Thus, thinking from specific to general.
(Saunders, et al., 2000)
In this study, we have carefully selected an existing model from literature and tested them
with an empirical data, thus the research approach is deductive.
4.5
Time Horizon
Research design can be longitudinal or cross-sectional. A cross-sectional study focuses
on particular phenomenon at a specific period of time (Saunders, et al., 2000). In a crosssectional study, one sample of a population can be taken and studied at a particular time
46
as in a single cross-sectional study or two or more samples of a target population could be
studied once as in multiple cross sectional study (Malhotra & Birks, 2007).
A study is said to be longitudinal where a particular phenomenon is studied at different
periods of time. This can also take a form of a single longitudinal study where only one
sample is studied at different time periods or multi-longitudinal where two or more
samples are studied at different periods of time.
In this study we chose a cross-sectional study because data was collected from a cross
section of hoteliers once and not for different periods of time.
4.6
Research Strategy
Research strategy is defined by Yin (2003) as a plan showing how a researcher will go
about answering the research questions. In the context of Social Sciences research, there
are five main research strategies: Experiments, Surveys, Archival analysis, Histories and
Case studies. According to Yin, (2003) the selection of a research strategy depends on:
the type of research questions, extent of control the researcher has over behavioral events
and the degree of focus on contemporary as opposed to historical events.
In this research the survey method will be used. In selecting the survey method the table
below guided us.
Table 4.2 Research Strategy
Strategy
Experime
nt
Survey
Archival
Analysis
History
Case
Study
Form of research
questions
How, Why
Requires control over
behavioural events
YES
Focus on contemporary
events
YES
Who, What,
How much
Who, What,
How much
How, Why
Where,
NO
YES
Where,
NO
YES/NO
NO
NO
NO
YES
How, Why
Source: Yin (2003)
47
The main purpose of the research is to find out the internet marketing strategies that are
being pursued by hotels in Ghana. The study focuses on contemporary events and does
not require control over behavioural events and the research questions are in what, how
many, how much thus a survey method best suit this research. The method is considered
as one of the most appropriate tools for quantitative studies and it also provides us with
the flexibility to collect quantitative data from a relatively large sample.
4.7
Sample Selection
Sampling is a tool that helps researches to draw conclusion about the entire population by
selecting some representatives in the population. According to Cooper and Schindler,
(2003) lower cost as compared to census, greater accuracy of results, speed of data
collection and the availability of populations are among reasons for sampling.
Deciding on a sample method to be used in a study largely depends on theoretical and
practical issues such as the nature and objectives of study, availability of time and funds.
4.7.1 Population
A population is the abstract idea of a large group of many cases from which a researcher
draws a sample and to which results from a sample are generalized. In simple terms it
consists of all elements or individuals, items or objects whose characteristics are being
studied. The concretely specified large group of many cases from which a researcher
draws a sample is also called the target population (Neuman, 2006). The population in
this research consists of hotels in Ghana that have web sites.
4.7.2 Sampling Frame
The sampling frame for any probability sample is a complete list of all cases in the
population from which your sample will be drawn. It is simply a listing of the population
of interest (Saunders, et al., 2000; Curvin and Slater, 2007; Neuman, 2006). As the
research purpose and questions or objectives in this study focuses on hotels that have
websites, the sampling frame is complete list of all hotels in Ghana with web sites.
48
However there is no existing list of hotels in Ghana with web sites. In order to get access
we needed to get a list of existing hotels with web address (URL). To create this list; a
web search using the key words Hotels and Ghana in two search engines (Google and
Yahoo), three local directories (Yellow pages, hotel association of Ghana, Ghana tourism
board ), two travel directories (Trip adviser and hotels in Ghana) was used. Using web
search to identify a study population has been used by many researchers for the
identification and study of online practices (Gilbert, et al., 1999; Murphy, 1996; Sigala,
2003). Many researchers such as O’Connor, (2002); Zott et al., (2000) and Chen, (2001)
have highlighted the appropriateness in using web search to identify a study’s population
for the identification and study of online practices.
The Web search was conducted in May 2011 and after adding up the results from each
search engine, and travel directories a total of 624 hotels with web addresses was found.
The results of the Web search including hotels’ names, addresses, and URL were copied
and pasted into a hotel database in a Microsoft Excel file. Considering the fact that, the
Web sites of several hotels were listed in more than two directories and/or search engines
the database was filtered to eliminate data duplication. The remove duplicate tool in
Microsoft Excel was used to eliminate multiple entries. Finally, we arrived at 226 hotels
with Web sites. All 226 Web sites were visited for the following reasons: (a) investigate
whether the Web sites existed and were functional at the time the research was
conducted, (b) get an overall picture of the category of the hotels, and (c) investigate
whether contact information is provided. It was found that some of the Web sites were
not functioning so we took them out of the database and arrived at 215. All the 215 hotel
Web sites had their contact information (email address, telephone number and postal
addresses) published. However, a careful examination of the database revealed that
multiple entries of contact information existed. Upon investigating the reason for the
latter, it was found that in Several Web sites, the contact information provided were the
same, because the hotel were chain hotels hence was managed under the same owner.
Similar to Sigala (2003) we decided not to require information for more than one hotel
property to avoid duplicate responses from the same hotel property that will result in
49
artificially increasing the response rate and also biasing the results. Thus the database was
checked for multiple entries and finally arrived at 206 unique hotels with web site address
and contacts information as well as their locations forming the sampling frame.
4.7.3 Sample Size
Decisions about sample size is an important issue because samples that are too large tend
to waste time, resources and money whereas samples that are too small may lead to
inaccurate results. According to Neuman, (2006) a researcher’s decision about the best
samples size is guided by; (a) the degree of accuracy required (b) the degree of variability
or diversity in the population and (c) the number of different variables examined
simultaneously in data analysis. He also relates that everything being equal, large samples
is needed if one wants high accuracy and is needed when the population has a greater
deal of variability and there is the need to simultaneously analyse many data variables. In
contrast to the former, smaller samples is sufficient when less emphasis is placed on
accuracy and also when there is homogeneity in the population.
The issue of sample size can be addressed from two perspectives: one is to make
assumptions about the population and use statistical equations about random sampling
processes. A second method is a rule of thumb – a conventional or a commonly accepted
amount (Neuman, 2006).
In this research a rule of thumb was used to select a suitable sample size because we
rarely have the information required by the statistical method and the rule of thumb
method gives sample sizes relatively close to those derived from statistical method.
According to Neuman, (2006) for small populations (under 1,000), a researcher needs a
large sampling ratio (about 30 percent) to give a higher degree of accuracy. Since our
final sampling frame consisted of 206 hotels and falls under 1000, we chose a large
sampling ratio of 50 percent representing a sample size of 103. We also believe that, with
this sample size a higher degree of accuracy or representation will be achieved and the
results could be generalized as in the case of most probability sampling. Moreover
sample size of one hundred and three (103) respondents was selected because of cost and
time constraints. Using all the 206 members in our sampling frame in this survey would
50
require large financial resources which we could not afford. Again, the time limit within
which the research was to be completed would not permit the use of larger sample size.
4.7.4 Sampling Technique
Sampling method can be divided into two broad categories: probability (representative or
random) sampling and non probability (Judgmental) sampling (Saunders et al., 2003;
Cooper & Schindler 2006).
Non-probability sampling is a technique which elements of the population do not have a
known zero chance of being selected depending on researcher subjective judgment. Thus
non-probability sampling is arbitrary and selection of the sample is not necessarily made
with the intention of being statistically representative of the population. Rather the
researcher uses subjective methods such as personal experience, expert judgment and
convenience.
In contrast, Probability sampling is a type of sampling which every member of a
population has an equal chance of selection and it is mostly used for survey based
research were emphasis is placed on making inferences of a population from a sample.
Probability sampling ensures that the sample is representative (Saunders, et al., 2003).
Probability sampling can be categories into five groups; simple random, systematic,
stratified random, cluster and multi stage (Saunders, et al., 2003).
Simple random sampling:- involves selecting the sample at random from the sampling
frame using a purely random process (eg. Random-number tables and computer
programming).
Systematic Sampling: is a sampling technique where every Kth element in the population
is sampled, beginning with a random start of an element in the range of 1 to k. it entails
selecting the sample at regular intervals from the sampling frame by every 1/k case
(Cooper & Schindler, 2006).
51
Stratified sampling: involves creating a sampling frame for each categories of cases
normally referred to as strata. A random sample is drawn from each of the strata after
which they are put together to form the sample.
Cluster sampling: similar to stratified sampling, it involves creating a sampling frame for
larger cluster units prior to sampling. With cluster sampling the sampling frame is the
complete list of clusters rather than a complete list of individual cases within the
population (Saunders, et al., 2003).
Multi stage sampling: it is a complex form of cluster sampling and mostly employed
when the study involves a geographically dispersed population. It involves randomly
sampling a series of clusters.
In selecting the sample of 103 respondents a systematic sampling was used. Systematic
sampling is a statistical method involving the selection of elements from an ordered
sampling frame. In this method, instead of using list of random numbers the researcher
calculates a sampling interval and the interval becomes the quasi-random method. The
sampling interval k is calculated as;
𝑁
k=𝑛
where n is the sample size and N is the population or sampling frame size. The sampling
interval tells the researcher how to select elements from the sampling frame by skipping
elements in the frame before selecting one for the sample (i.e., selecting every k th
element). After calculating the sampling interval the starting point must be selected at
random and from the starting point choices thereafter are at regular intervals.
This technique was chosen because the sampling frame consisted of a list of hotels that
have web sites and the list was formed without any kind of cycle or pattern, thereby
eliminating any fear of non representativeness or bias. Also considering the sample size
of one hundred and three (103) and a sampling frame of two hundred and six (206), the
method can be easily applied to achieve the desire results.
52
The sampling interval was calculated and the resulting sampling interval was 2 using the
𝑁
formula (k= 𝑛 ) (i.e., k=206⁄103). With a sampling interval of 2 we randomly picked a
starting point which was between the 1st and 2nd element which eventually turn out to be
the second element. Starting from the second element every 2nd count was selected to
participate in the research to finally arrive at the sample size of 103 respondents.
4.8
Data Collection Method
4.8.1 Types of Data Collected
There are two types of data: Secondary and Primary data (Yin.2003).
Primary Data: “primary data is a data originated by the researcher for the specific
purpose of addressing the research problem” (Malhotra & Birks, 2007). It is basically
what the researcher collects on his/her own based on the research purpose and questions
through observation, interviews or questionnaires from the sample or target population.
In this study, primary data were obtained from the questionnaire and the websites of the
hotels.
Secondary Data: “Secondary data are data collected for some purpose other than the
problem at hand.”(Malhotra & Birks 2007). Secondary data has to do with data that are
collected from secondary source such as publications, personal records, census among
others that have already been collected by other researchers for another purpose. In this
study secondary data was collected from search engines, websites of hotels used for the
study, online articles and journals. The data was used to develop the frame of reference,
research question for the study.
4.8.2 Questionnaire Design
Questionnaire is a collection of queries used by the researcher to collect and record
needed information when conducting a study. The questions are arranged putting together
all the important variables for the research and may be completed by the respondents in
the presence or absence of the researcher (Cooper & Schindler, 2006)
53
Many researchers have agreed that, in the use of survey strategy, the main instruments
used are self-administered/interviewer administered or structured/unstructured interviews
and questionnaire or a combination of both (Saunders, et al., 2000; Neuman, 2003;
Cooper & Schindler, 2006; Malhotra & Birks, 2007). They also claim that generally the
questionnaire can be used for descriptive or explanatory study, and must have a good
layout, unambiguous questions, complete items, non-offensive but relevant items, logical
arrangements of items, and the ability to elicit willingness to answer in respondents
(ibid).
Self administered questionnaire are usually completed by the respondents. It is further
categorized into three sub groupings based on the method of administering the
questionnaire; on-line questionnaire (delivering and returning the questionnaire
electronically using the internet), Postal questionnaire (sending and receiving the
questionnaire by post) and Delivering and collection questionnaire (delivering and
collecting the questionnaire to and from the respondents by hand)
In contrast, Interviewer Administered questionnaire are recorded by the researcher on the
basis of the respondent’s answer. This can be done through the telephone (Telephone
questionnaire) or structured interview where the interviewer meets with the respondents
face to face and asks the questions (Saunders, et al., 2000; Nauman, 2006)
Questionnaires can be open-ended and close-ended. In open-ended questionnaires,
respondents are not restricted to a number of answers to choose from, they are at liberty
to give any answer they want to the questions. Open-ended questionnaire forms give indepth responses and unanticipated findings may be discovered but they are difficult to
code. With close-ended questionnaire, respondents are restricted to a fixed set of
responses from which to choose from. Close-ended questions are easier and faster for
respondents to answer and they are also easier to compare, code analyse statistically.
However close-ended questions may restrict respondents from giving in-depth response
( Neuman, 2006).
In this study a combination self administered questionnaire using method and interviewer
administered using the structured questionnaire method were used. We used self
administered questionnaires in certain cases because this method has advantages such as
54
lower costs, sample accessibility more time to collect facts about the questions as well as
enough time to complete the questionnaire without rushing through them. To ensure a
good response rate and clarify any questions that might arise, we appeal to our
respondents to fill the questionnaire in our presence. It was part of the strategy to directly
explain the questions to the respondents and to provide additional information such as
cover letter to introduce us students.
We also employed interview administered questionnaire because it afforded us the
opportunity to probe further to ensure that questions are understood and also to avoid
missing data as well as to have more correctly filled questionnaires within a shorter time.
The questionnaire was based on research questions and mentioned conceptual research
model adopted from Sigala (2003). The questionnaire was constructed by the researchers
using all the aspects under each of the five dimensions in the internet marketing mix
model and was adjusted to fit the purpose of this study. There are two parts in the
questionnaire. In the first part, demographic questions were asked to collect information
about three key hotel characteristics; hotel size (number of rooms), hotel category
(1,2,3,4, and 5 star) being the hotel ratings and management arrangement (independently,
chain, or franchised managed hotel). Also the first part included the level of education of
the hotel managers and the location of the hotel. The second part of the questionnaire
asked respondents to indicate whether their websites are designed to include the aspects
in the five identified marketing dimensions (i.e., Product, Price, Place, Promotion and
Customer relation) as mention in chapter 3. All the questions took close-ended forms to
capture many responses easily and faster. Also questions in this form are much easier to
code and analyse statistically. The questions in the questionnaire are in the form of
multiple-item scale for easier coding and analysis. However the questions in the second
part of the questionnaire are dichotomous variables in the form of Yes/No in which
respondents are to indicate whether their websites are designed for such activities or not.
This format was chosen despite its disadvantage of providing less information because
the objective is to gather information on whether the surveyed hotel web sites was
designed and used for practices in any of the five internet marketing dimensions as shown
in table 3.1.
55
4.8.3 Pre-testing and Final Administration
Saunders, et al., 2000; and Copper & Schindler, 2006 are of the view that, it is important
to pre-test questionnaires to ensure reliability and validity before final administration.
The purpose of pretesting is to refine the questionnaire so that respondents will not have
problems in answering the questions (Saunders, et al., 2000). Although the questionnaire
was constructed from our research questions and an adopted model from literature, it was
necessary to pre-test the research instrument to curtail any unforeseen ambiguity.
In this study the pre testing was done in two stages; the initial draft of the questionnaire
was consulted with two master’s students in marketing and one marketing lecturer in a
face to face interview to access its content and constructions. They checked for any
phrasing and relatedness of the statements within the questions for better adjustments and
compatibility with Ghana’s environment. With feedback about the questionnaire some
modifications were made to the primary questionnaire.
In the second stage of the pre-testing, a pilot study was performed with ten (10) hotel
managers to check and approve the final questionnaire. They answered the questionnaire
and indicated any ambiguous and difficult to understand questions. Some ambiguous
expressions were modified. The final version of the questionnaire is in Appendix A.
The final questionnaire was administered to the sampled hotels through personal contact
by the researchers (Edem and Charles) and five (5) trained research assistants - all
students of the Catering and Hotel management department of Ho Polytechnic. Prior to
arrival at the hotels, telephone calls are place to book appointment with the respondents.
The respondents were mainly different from hotel to hotel depending on the persons that
handle the hotel marketing activities or have knowledge of the hotel internet marketing
activities. When we come into contact with respondents we first informed them of the
purpose and the benefits of the study to the hotel sector, assured anonymity and
confidentiality of responses. Some of respondents filled their questionnaires in our
presence and a few insisted that we leave the questionnaires with them and come back for
them in a later date. Upon completion and collection we checked for omissions and draw
the respondent’s attention to it.
56
With other respondents we read the questions to them and they were to indicate to us
their responses whiles we did the filling for them. This exercise was done between the
periods of 19th July and 29th August 2011.
In order to get a more representative sample, we sorted out the hotels in to the ten regions
in Ghana and we divided them among the researchers base on proximity to administer the
questionnaire.
Table 4.3 shows the sample design and the response rate according to hotel star category.
Table 4.3 Sample Design and Response Rate
Hotel
category
Sample
Response rate
N
%
N
%
1 star
24
23.3
18
75
2 star
35
33.9
30
85
3 star
31
30.1
28
90.3
4 star
9
8.7
8
88.9
5 star
4
4.0
3
75
Total
103
100
87
84.50
Source: field data 2011
Out of the one hundred and three (103) questionnaires that were administered to the one
hundred (103) hotels, eighty seven (87) completed questionnaire was obtained
representing 84.50%. Out of this there were; eighteen responses from hotel category 1
star, thirty (30) responses from 2 star hotel category, thirty one (31) from 3 star, nine (9)
from 4 star and three (3) from 5 star hotel category.
4.8.4 The Questionnaire
The questionnaire is divided into two parts; first demographic information about hotel is
asked (Table 4.4), secondly question about the transformation of the five internet
marketing mix dimensions are brought (table 4.5)
57
Part 1. Demographic information of the Respondents
Table 4.4: Demographic information of the respondents
Section
Profile of
respondents
Variable
Hotel type
Related Question
(SPSS Name)
Hotel Type
Scale
Nominal
Form of answer
Multi-answer
Hotel size
No. of rooms
Scale
Multi-answer
Hotel category
Hotel star category
Ordinal
Multi-answer
Level of
education
Hotel manager’s
level of education
Ordinal
Multi-answer
Hotel location
Hotel location
Nominal
Multi-answer
Hotel type: According to the Ghana tourism board, hotels can be classified base on the
management arrangement and hotels in Ghana mainly fall under the following broad
classification; Independent, Chain and Franchise.
(a) Independent hotels: Independent hotels do not have ownership or management
affiliation with other properties. They have no relationship to other hotels
regarding policies, procedures, financial obligations, management, accounting
among others. They are usually registered as sole proprietor-ship or a private
limited company whereby the owner decides on the standards, type of clientele
and the tariff. They usually tie up with travel agencies and tour operators to sell
their property against commissions
(b) Chain hotels: Chain hotels are usually two or more hotels that come under the
same management. In general, the more centralized the organization the stronger
the control over the individual property. Some chains have strong control over the
architecture, management and standards of affiliated properties. Other chains only
concentrate on advertising, marketing, purchasing.
58
(c) Franchise hotel:
Franchise is a system in which the franchise owner grants
another the right or privilege to merchandise a product or service for a specified
return. Franchise Agreement is an agreement under which the owner operates a
hotel as a member of chain of hotels, utilizing the brand image, name and
goodwill and obtaining for a certain fee some services of marketing and operating
nature support from resources of a large hotel as well as benefiting from
advertising, sales promotion, technical and financial help.
Hotel size: Hotel size refers to the number of rooms. In this study the various
categories on the basis of size are; Small hotel - a hotel with 25 rooms or less,
Average hotel- a hotel with 26 to 50 rooms and Large hotels- a hotel with above 50
rooms.
Hotel Category: Ghana Tourist Board classifies hotels based on the quality standards
adhered to by the hotels. Adherence to quality standards are signified with the award
of ‘stars’. The minimum number of stars is one and maximum is five. Requirements
for the granting of stars are consistent to the guidelines provided inside the cover of
the Automobile Association (AA) and Royal Automobile Club (RAC). Below are
hotel classifications according to stars:
(a) One Star Hotels: they are small and independently owned with family
atmosphere. Services may be provided by the owner on informal basis. They
have limited range of facilities and meals are fairly simple.
(b) Two Star Hotels: they are small to medium sized and offer more extensive
facilities than one star hotels. They offer comfortable and well equipped
overnight accommodation usually with an en-suite bath/shower room. Staff
usually offers more professional presentation than at one star level.
(c) Three Stars Hotels: These hotels are usually of size to support higher staffing
levels and a significantly greater quality and range of facilities than at the
lower stars. Public rooms are more spacious and the restaurant also caters for
non-residents. All bedrooms are en-suite bathrooms.
59
(d) Four Star Hotels: Hotels under this category provide some degree of luxury as
well as quality in the furnishings, decor and equipment in every area of the
hotel. Staff to guest ratio is high enough to provide services like porterage, 24hour room service and laundry services. The restaurant demonstrate a serious
approach to it cuisine.
(e) Five Star Hotels: They provide spacious and luxurious accommodation
matching the best international standards. The interior designs impresses with
its quality and attention to details, comfort and elegance. Services are highly
formal, well supervised and flawless in attention to guest needs without being
intrusive. The restaurant demonstrates high level of technical skill and
produces
dishes
to
the
highest
international
standards.
Staff
are
knowledgeable, helpful, well versed in all aspects of customer care,
combining efficiency with courtesy (Brody, 2009).
Level of Education: The level of education is categorized as Diploma, HND, Bachelors,
Masters and PhD. The levels of education provided in this study are in accordance to
Tertiary education provisions in Ghana.
Hotel Location: Ghana can be divided into three zones; the southern zone which
comprise of Greater Accra, Volta, Central and Western: the middle zone comprises of
Ashanti, Eastern and Brong Ahafo: the northern zone which comprises of Northern,
Upper East and Upper West. In this study respondents are to indicate the location of their
facilities according to the ten regions in Ghana
Part 2: Internet Marketing Dimensions
These are measures of all variables and names of the variables in data analysis. In this
section of the questionnaires all the items scale are nominal and form of answers is Yes
or No consistent with Sigala (2003). According to Angehrn & Meyer, (1997) each
dimension of internet presence is further classified in terms of its technical sophistication
(simple or advanced) and level of customization (low or high). They argued that
60
sophistication reflects the degree to which specific characteristics of the underlying
medium or dimension of the ICDT model are exploited, and customization reflects the
degree to which the internet is used to provide individualized products and services to
users. As stated in Chapter three of the study, High or low sophistication/transformation
is used to indicate technical sophistication and level of customization. The letter “L” or
“H” is added to each item to indicate that the variable is of Low or High sophistication
depending on the extent which the item exploiting the interactivity and connectivity
capabilities of the internet. However all the aspects in the Customer relation dimension
are classified as high sophistication because to make use of them, requires the
exploitation of advanced internet tools
61
Table 4.5
Section
Transformation
of place
(TProd)
ransformation
of price (TPri)
Transformation
of Place (TPla)
Transformation
of Promotion
(TPromo)
Transformation
of Customer
Relation
(TCR)
Internet marketing dimensions construct
Variables
Name
TProd1L
Source
TProd2H
Sigala (2003)
TProd3H
Sigala (2003)
TProd4H
Sigala (2003)
TProd5H
Sigala (2003)
TProd6H
Sigala (2003)
TProd7H
Sigala (2003)
TPri1L
Sigala (2003)
TPri2H
Sigala (2003)
TPri3H
Sigala (2003)
TPri4H
Sigala (2003)
TPri5H
Sigala (2003)
TPla1L
Sigala (2003
14. Does your hotel promote its website on the
internet
15. Does your hotel website make provision for
online booking
16. Does your hotel website have a secure online
payment facility
17. Does your hotel advertise on the internet
TPla2L
Sigala (2003
TPla3H
Sigala (2003
TPla4H
Sigala (2003
TPromo1L
Sigala (2003
18. Does your hotel use online promotions such
as discounts
19. Does your hotel customize its online
promotions depending on guest profile?
TPromo2L
Sigala (2003
TPromo3H
Sigala (2003
20. Does your hotel link with other
organizations to offer online promotions
TPromo4H
Sigala (2003
21. Does your hotel provide customer service
online
TCR1H
Sigala (2003
22. Does your hotel identify and track customers
online with the aim of providing customized
services
TCR2H
Sigala (2003
Measure
1. Does your website have written information
about the hotel facilities
2. Does your website have videos of the hotel
rooms and other facilities
3. Does your website have pictures of the hotel
rooms and other facilities
4. Does your website have audio information
about the hotel
5. Is your product information on your website
customized for different categories of clients
6. Do customers have the opportunity to
participate in hotel room design
7. Do customers have the opportunity to suggest
services on offer by the hotel
8. Does your website provide information on
price
9. Does your website provide customized prices
based on personal information
10. Does your website provide customized prices
based on demand patterns
11. Does your website provide price negotiation
for prospective customers
12. Do partner websites provide price negotiation
for prospective customers
13. Does your website provide email request for
bookings
62
Sigala (2003)
23. Does your hotel communicate with customers
via the internet
TCR3H
Sigala (2003
24. Has your hotel created an online community
for customers
TCR4H
Sigala (2003
25. Does your hotel solicit for feedback from
customers via the internet
TCR5H
Sigala (2003
Transformation Product (TProd)
Provisions of items (2, 3, 4, 5, 6, and 7) make use of sophisticated internet or multimedia
tools and presentation techniques to gather data about users and recognize loyal
customers and providing customized services to them. On the other hand item (1) is of
low sophistication because; it includes setting up of simple web pages displaying
information to users in an undifferentiated way.
Transformation of Price (TPri)
Item (8) is characterized as low sophistication because it involves static pages displaying
different types of rooms on offer and their prices. Whereas Items (9, 10, 11, and 12) are
classified as high sophistication because, their provision requires the exploitation of
networking, informalization and interactivity capabilities of the internet to regularly
change their prices online depending on demand, guest profiles, and/or give customers
the opportunity to negotiate room rates online.
Transformation of Place (TPla)
The items (13 and 14) are characterized as low sophistication because they involve the
use of simple internet tools to receive email request for bookings and promote hotel web
site on the internet through listing on search engines and informediaries. Items (15 and
16) which includes the provisions of online bookings and secure payments are classified
as high sophistication as their provision requires the use of higher and more complex
technological functionality (Wen, et al., 2001; Zott, et al., 2000)
63
Transformation of Promotion (TPromo)
Items (17 and 18) reflecting the use of the Internet for advertising and for the provision of
online promotions are classified as low sophistication since it involves the use of generic
or simple
Internet tools, whereas items (19 and 20) were characterized as high
sophistication because they fully exploit the interactivity and connectivity capabilities of
the internet.
Transformation of Customer Relations (TCR)
All the items (21, 22, 23, 24, and 25) of the customer relation dimension are classified as
high sophistication because to make use of them it requires the use of advanced
technological tools to exploit the interactivity, connectivity and convergence capabilities
of the internet
4.9
Data Presentation and Analysis
Copper and Schindler (2003) are of the view that, virtually all research involves some
numerical data that usually could be quantified to help answer research questions and to
meet objectives. Data collected need to be analyzed and interpreted. Depending on the
nature of study there are numerous statistical techniques for analyzing data.
For analyzing data gathered from questionnaires, several techniques are available in
statistical tools such as SPSS. To answer our research questions simple frequencies and
percentages are applied to know the number and proportion of hotels regarding the
transformation of aspects in each of the internet marketing mix dimensions. We chose to
analyze our data using general frequency because it gives the researcher the opportunity
to present detailed information on nominal (category) data and describing the results
which is consistent with the focus of this study to present in detail the composition of the
internet marketing mix. Also the frequency distribution was presented in pie and bar
graphs. Visually illustrating the data this way can help a reader make sense of the
findings. These analyses were executed using the Multiple Response facility of SPSS.
SPSS (Statistical Package for the Social Sciences) has been in development for more than
thirty years. Originally developed as a programming language for conducting statistical
64
analysis, it has grown into a complex and powerful application which now uses both a
graphical and a syntactical interface and provides dozens of functions for managing,
analyzing, and presenting data. Its provide researchers with a wide range of statistical
capabilities from simple percentages to complex analyses of variance, multiple
regressions, and general linear models. Also data ranging from simple integers or binary
variables to multiple response or logarithmic variables can also be used. In additions
SPSS provides extensive data management functions, along with a complex and powerful
programming language. Besides the all the capabilities of SPSS, the decision to use it to
analyse our data was also due to our familiarity in its use.
The Multiple Response command allows us to analyze a number of separate variables at
the same time, and is best used in situations where the responses to a number of separate
variables that have a similar coding scheme all ‘point to’ a single underlying variable. In
this study we consider each of the items in each of the five internet marketing dimensions
(Product, Place, Promotion and Customer Relation) as all pointing to transformation of
the dimensions. Each of the items in the questionnaire captures just one aspect of the
complex variables (marketing mix dimensions). It is therefore appropriate to summarize
the responses to these items at once, and to be able to use the pattern of responses across
these items in further analysis with other variables, which is exactly what the Multiple
Response command allows us to do.
To use the Multiple Response command a Multiple Response Set for each of the
dimensions were set up for each of the internet marketing mix dimensions. This
procedure instructs SPSS to group together the responses across each variable. The
coding scheme for the items that make up the Multiple Response Set are “1=Yes and
2=No. the coding scheme is noted because we need to tell SPSS which value is of interest
to us. Here we are interested in all the Yes responses to each item.
As indicated in chapter three, to measure the sophistication of the Internet marketing
strategies, each of the five dimensions of the model were further analyzed in several
aspects/features that indicate the degree to which hotels have adopted sophisticated
strategies. Items in the questionnaire match with the aspects/features within the five
dimensions in table 3.1 of chapter three. The degree to which hotels have adopted
65
sophisticated internet marketing strategies depends on the responses to the questionnaire
items by each of the surveyed hotels. Consistent with Sigala (2003) and Angehrn’s
(1997) analysis of the Internet marketing mix model, the surveyed instrument of each
dimension are characterized as low or high sophistication depending on whether the
interactive and connectivity capabilities of the Internet are used.
To measure the degree of transformation of each dimension, the sum of the aspects that
the respondent answered “Yes” and the total number of aspects within the dimension
from the multiple response output for each dimension are used. The transformation
degree of each dimension was calculated by the ratio of the sum of the aspects used to the
total number of the aspects within the dimension. Each feature carried the same weight of
one (1) meaning if all the hotels uses all the aspects within a dimension then the
transformation degree for that dimension would be one (1) or 100%. A transformation
degree less than 0.5 or 50% indicates a low transformation/sophistication meaning hotels
make limited use of the capabilities offered by the internet whiles a transformation degree
above 0.5 or 50% indicates high transformation meaning hotels are taking advantage of
the unique capabilities offered by the internet.
4.10
Access Strategies
Saunders et al., (2000) is of the view that feasibility is an important determinant of what
is chosen for research and how the research would be conducted. He went to provide
some strategies that could be used to gain access; using suitable language, the use of
existing contacts and building new contacts, allowing sufficient time to carry out the
research, establishing credibility, facilitating ease of use responses when requesting
access and spelling out benefits to the organization or individual in giving you access.
In this research emphasis was placed on gaining access. To gain access, permission to
conduct research was considered with the aid of a consent form. Permission was also
sought for the use of professional and academic articles and other published papers. We
introduced ourselves to respondents as students conducting the study with the aid of an
introductory letter from the university authorities and identity cards and sought
permission from them before asking them to respond to the questionnaire. We also
66
explained to respondents the purpose and how their participation will help come out with
findings that will help improve their organisation and were also assured of anonymity and
confidentiality of their responses.
4.11
Credibility of Research Findings
According to Saunders, et al, (2000; 2007) researchers must pay particular attention to
reliability and validity to reduce the possibility of getting wrong answers. Reliability and
validity helps to conduct the research and adds strength to the findings. Validity of a
research is the extent to which the instrument measures what it is supposed to measure
(Saunders et al., 2000). Whereas reliability of the instrument is concern with the
consistency of the responses to the items (Mitchell, 1996). In this study emphasis was
placed on the validity and reliability to ensure the credibility of the research.
4.11.1 Validity
As mentioned earlier, validity refers to whether the research instruments measure what it
is supposed to measure i.e. accuracy of measurement (Sullivan, 2001; Saunders, et al.,
2000; 2007). Validity can be internal or external. The following indicates how the
validity of this research was ensured:
Internal Validity

Content validity: content validity or sampling validity refers to whether a
measurement instrument has adequate and representative coverage of the concepts
in the variables being measured. According to Mitchell, (1996) to establish
content validity, researchers must seek expert’s opinion on the representativeness
and suitability of the measurement instruments and also suggestion must be
allowed to be made to the structure of the instrument. In this research after the
initial draft of the questionnaire, experts in the field of e-commerce, marketing
and in hotel management were consulted to review its content validity.

Construct validity: This has to do with measuring an instrument to an overall
theoretical framework in order to determine whether the device confirms a series
of hypothesis derived from an existing theory. Thus, the instrument must have
67
existing conceptual or theoretical bases in the literature. The questionnaire used in
this research was designed based on the items in the internet marketing mix model
(sigala, 2003). The model was used to benchmark internet marketing strategies in
hotels which led to the extended internet marketing model that is considered as an
effective model to measure internet marketing activities. Also to enhance
construct validity, data was collected through multiple source: self administered
and interviewer administered questionnaire were complemented by the use of
Hotel’s web pages

Face validity: involves assessing whether a logical relationship exist between the
variables and the proposed measure. This type of validity is highly subjective; do
not provide enough proof of validity. However in this study it seemed logical to
us investigate internet marketing strategies of hotels in Ghana using a
questionnaire-based survey.
External validity: This refers to the extent to which the results of a study could be
generalised. In this work, to ensure external validity, the findings and results will be
generalized to the Ghanaian.
4.11.2 Reliability
The reliability of the measurement instrument is concerned with the consistency of the
responses to the questions (Mitchel, 1996). Reliability is the accuracy or precision of the
measurement instruments such that it would be able to yield similar outcome or results
for similar inputs. Statistically, reliability is defined as the percentage of the
inconsistency in the responses to the survey that is the result of differences in the
respondents. This implies that responses to a reliable survey will vary because
respondents have different opinions, not because the questionnaire items are confusing or
ambiguous.
It could be estimated using stability or equivalence approaches. In this study we pretested the questionnaire to strengthen its reliability. Although our data measuring
instruments are in the form of dichotomous choices (Yes/No) the Cronbach’s alpha
coefficient was used because it will produce the same results as the Kuder-Richardson
68
Formula (KR-20) with dichotomous data (Cortina, 1993; Yaffee, 1999). Cronbach's
alpha, developed in 1951 (Cronbach 1951) is a model of internal consistency based on
the average inter-item correlation. The Cronbach's alpha is calculated based on the
number of items on the survey (k) and the ratio of the average inter-item covariance to
the average item variance.
∝= k
(cov/var)
1 + (k − 1) ∗ (cov/var)
This ratio assumes that the item variances are all equal; it specifies to the average interitem correlation, and the result is known as the Standardized item alpha (or SpearmanBrown stepped-up reliability coefficient):
∝= k
kr
1 + (k − 1)r
A summary of the results of the Cronbach’s alpha retrieved from the SPSS output for all
the five marketing dimensions is shown in table 4.6 below:
Table 4.6 Reliability statistic for marketing mix dimensions
Reliability statistic for marketing mix dimensions
Variable (Dimensions)
Conbach’s Alpha
Product
Price
Place
Promotion
Customer
Overall reliability
Source: field data 2011
0.72
0.61
0.47
0.75
0.82
0.91
Number of
items
7
5
4
4
5
25
From the table 4.6, four out of the five dimensions have Alpha Cronbach’s values above
0.6, the accepted limit for reliability test. The values indicate that there is good internal
consistency among the scales. However the test involving all the 25 items shows an
overall Alpha Conbach’s of 0.91. Considering that the overall reliability of the
questionnaire is above 0.6, it can be concluded that the questionnaire is reliable.
69
In addition to the above the following procedures were taken to ensure valid and reliable
data collection process:

The right target population was identified.

The representativeness of the sample was ensured since the sample was made up
of adequate representation of hotels based on their star category distribution

The sampling method was appropriate since hotels were selected through
probability sampling method to remove biases.

The data sources were all reliable since we used published academic and
professional journal articles.

In administering the instruments, the respondents were assured of anonymity and
confidentiality so they could provide us with accurate/real answers to remove
subject/participant biases.

Data was entered using SPSS with much care.
70
CHAPTER FIVE
5.0
Data Presentation and Analysis
T
his chapter presents the data that have been gathered through the questionnaire
survey and convert it into information after analysis. Descriptive statistics about
respondents profile and the structure of the internet marketing mix are
presented. The statistical analysis has been done by SPSS. Also in this section the
transformation degree of each dimension is computed and presented.
5.1
General Information
The first part of the questionnaire asked for some general information about the hotel. It
includes the hotel category, hotel size and type of hotel, educational level of hotel
manager and location of hotel. In order to provide a better understanding and an overview
of the hotels that were sampled, descriptive statistics about the demographic information
is presented.
5.1.1
Level of Education
Respondents were asked about the educational level of the hotel manager. The level of
education was categories as Diploma, HND, Bachelors, Masters and PHD. The levels of
education provided in this study are in accordance to Tertiary education provisions in
Ghana.
Table 5.1 Respondents Educational Level
Educational
Qualification
Diploma
Frequency
16
Percentage
18.4
HND
25
28.7
Bachelors
34
39.1
Masters
12
13.8
Total
87
100
Source: field data 2011
71
Figure 5.1 Respondents Level of Education
14%
18%
29%
39%
Diploma
HND
Bachelor
Masters
The respondents educational level as displayed in table 5.1 and figure 5.1 indicates that
most of the hotel managers had bachelors degree representing 39.1%, 28.7% had higher
diploma while 18.4% had diploma and few of the hotel managers had masters
representing 13.8%.
5.1.2 Hotel Type
Respondents were asked about the kind management arrangement of their hotel were
operating under. As indicated in chapter four, depending on management arrangement
hotels can be classified as Independent, Chain and Franchise. Table 5.2 below shows the
distributions of the surveyed hotels along this classification.
Table 5.2 Hotel Type
Hotel Type
Frequency
Independent
68
78.2
Chain
18
20.7
1
1.1
87
100
Franchise
Total
Source: field data 2011
72
Percentages
Figure 5.2 Hotel Type
1%
21%
78%
Independent
Chain
Franchise
Table 5.2 depicts the type of hotel. It is obvious that most of the respondents were from
independently owned hotels constituting 78.2%. 20.7% of the respondents represented
chain hotels and 1.1% were from franchise hotels
5.1.3 Hotel Category
Respondents were asked about their hotel category. Generally hotels can be categories
base on their star ratings. Depending on the guidelines provided by Automobile
Association (AA) and Royal Automobile Club (RAC) as indicated in chapter four, the
surveyed hotels were categories as shown in table 5.3
Table 5.3 Hotel Category
Hotel
Category
1 star
Frequency
18
Percentage
20.7
2 star
30
34.5
3 star
28
32.2
4 star
8
9.2
5 star
3
3.4
Total
87
100
Source: field data 2011
73
Figure 5.3 Hotel Category
3%
9%
21%
32%
35%
1 star
2 star
3 star
4 star
5 star
Table 5.3 shows respondents hotel category. Most of the respondents (34.5% and 32.2%)
were from 2 star and 3 star hotels respectively. 20.7% of the respondents were from 1star
hotels. 9.2% of the respondents were from 4 star hotels whiles a minority of 3.5% were
from 5 stars hotels.
5.1.4 Hotel Size
Respondents were asked about the size of their Hotel in terms of the number of rooms.
Hotels size were classified as; Small hotel- a hotel with 25 rooms or less, Average hotela hotel with 26 to 50 rooms and Large hotels- a hotel with above 50 rooms. The
distributions of the surveyed hotels along the hotel size is shown in table 5.4 and figure
5.4 below
Table 5.4 Hotel Size
Number of Rooms
Frequency
Percentages
1-25 rooms
28
32.2
26-50 rooms
31
35.6
Above 50 rooms
28
32.2
Total
87
100
Source: field data 2011
74
Figure 5.4 Hotel size
32%
32%
36%
1-25 rooms
26-50 rooms
Above 50 rooms
Source: field data 2011
Table 5.4 and figure 5.4 shows hotel categorized by number of rooms. Of the three broad
categories described within the research there seems to be an equal representation.
35.63% of the respondents were from hotels with rooms from 26 to 50, hotel rooms from
1 to 25 and above 50 were both 32.18%.
5.1.5 Hotel Location
Respondents were asked about the location of their hotel according to the ten regions in
Ghana. Ghana can be divided into three zones; the southern zone which comprise of
Greater Accra, Volta, Central and Western: the middle zone comprises of Ashanti,
Eastern and Brong Ahafo: the northern zone which comprises of Northern, Upper East
and Upper West. Table 5.5 shows the distribution of the surveyed hotels according to the
ten regions
75
Table 5.5 Location of Hotel
Location of Hotel/Region
Frequency
Percentage
Volta
4
4.6
Western
11
12.6
Greater Accra
32
36.8
Ashanti
14
16.1
Northern
4
4.6
Central
6
6.9
Brong Ahafo
6
6.9
Upper East
2
2.3
Upper West
3
3.4
Eastern
5
5.7
Total
87
100
Source: field data 2011
Figure 5.5 Location of Hotel
7%
2%
3%
4%
6%
13%
7%
5%
Volta
Central
37%
16%
Western
Brong Ahafo
Greater Accra
Upper East
Ashanti
Upper West
Northern
Eastern
Source; field data 2011
Table 5.5 and figure 5.5 depicts location of hotels within the ten regions of Ghana. It
indicates that a relatively larger number of the hotels 36.8% are located in Greater Accra
76
followed by Ashanti Region representing 16.1%. 12.6% of the hotels are in the Western
Region while Central and Brong Ahafo regions are each represented by 6.1%. 5.7% are
located in the Eastern region while both Volta and Northern are each represented by
4.6%. 3.4% of hotels are located in Upper West and Upper East has a hotel representation
of 2.3%.
5.2
Composition/Structure of the Internet Marketing Mix
In this section, in order to answer the research questions of the study, the responses to the
questions in each of the five internet marketing dimensions would be investigated.
As it has been discussed in Chapter Four, the suitable statistical method for identifying
the composition/structure of hotels internet market mix and the degree of transformation
is by analyzing the responses in frequencies and proportion (percentages) using the
multiple response command were the counted value are hotels that have designed their
web sites for activities in each of the five internet marketing dimensions. (i.e hotels that
responded “yes” to items within each of the internet marketing mix dimensions).
Analysis of the five dimensions is presented in tables (5.6, 5.7, 5.8, 5.9, and 5.10)
In all the cases we are going to describe the tables by these definitions; the tables are
made up of four major columns – “Variable name” represents the construct for the
measuring
instrument
within
the
internet
marketing
mix
dimensions:
The
“Responses/Frequency” column shows how many of the hotels have designed their
websites to make use of items within a dimension. Note that since each respondent in the
survey can answer “Yes” to each and every item within the dimensions or to none at all,
in most of the cases, the number of responses does not necessarily equal the sample size.
It may be higher or it may be lower: The “Responses/Percent” column indicates what
percentage of the total number of responses is represented by each of the items in a
dimension. This column adds up to 100% as it is calculated on the total number of
responses: “Percent of Cases” shows what percentage participating hotels in a dimension
answered Yes to each item. However this column does not add up to 100% which is
simply a reflection of the fact that, respondent’s hotel website could have more than one
77
feature within a dimension: The last column “% of Respondent” shows what percentage
of all the surveyed hotels answered yes to an item in a dimension.
5.2.1 Transformation of Product
Table 5.6 Frequency, percentage of product dimension
Percent of
Cases
% of
Respondent
Percent
36.7%
100.0%
100%
Responses
Responses
(a)
Variable Name
TProd1L
Frequency
87
TProd2H
13
5.5%
14.9%
14.9%
TProd3H
86
36.3%
98.9%
98.9%
TProd4H
7
3.0%
8.0%
8.0%
TProd5H
17
7.2%
19.5%
19.5%
TProd6H
7
3.0%
8.0%
8.0%
TProd7H
20
8.4%
23.0%
23.0%
237
100.0%
272.4%
272.4%
Total
A dichotomy group tabulated at value 1.
Source: Field data 2011
Figure 5.6 Distribution of used aspects in the Product
Dimension
90
80
70
60
50
40
30
20
10
0
Frequency
From the data presented in the table 5.6 and figure 5.6 above, it is evident that all the
respondents have transformed the Product Dimension with all the 87 (100%) of the
78
surveyed hotels having written information about their facilities and services on their
website (TProd1L) which forms 100% of all the cases. 86 (98.9%) of the hotels have
pictures of their facilities on their web sites whiles 13 (14.9%) of the respondent have
videos of product on their web site. Also only 7 (8%) of respondents have audio and offer
opportunity for clients to participate in hotel room design online, while 17(19.5%) and 20
(23%) of respondents respectively have customization of product information online and
opportunity to suggest services on offer via the hotel website.
On the level of sophistication at which the hotels are transforming the product dimension,
All the hotels 87 (100%) of respondents are engaged in low sophistication by providing
written information on their hotel website. 86 (98.9%) of the respondent have
transformed one aspect of the product dimension (availability of pictures on hotel
website) which relate to high sophistication. Less than 25% of respondents have designed
their web sites to make use of other aspects of high sophistication.
5.2.2 Transformation of Price
Table 5.7 Frequency, percentage of price dimension
Percent of
Cases
Responses
Variable Name
Responses
(a)
Total
% of
Respondents
Frequency
Percent
TPri1L
56
63.6%
100.0%
64.4%
TPri2H
10
11.4%
17.8%
11.5%
TPri3H
12
13.6%
21.4%
13.8%
TPri4H
3
3.4%
5.4%
3.4%
TPri5H
7
8.0%
12.5%
8.0%
88
100.0%
157.1%
101.1%
A dichotomy group tabulated at value 1.
79
Source: Field Data
Figure 5.7 Distribution of used aspects in the Price
Dimension
60
50
40
30
Frequency
20
10
0
TPri1L
TPri2H
TPri3H
TPri4H
TPri5H
Table 5.7 shows that Out of the total respondents, 56 (64.4%) have price information on
their hotel website. It is also evident that, out of 87 surveyed hotels, it is only 56 have
transformed aspects in the price dimension with all of them providing price information
on their web sites which accounts for the 100% of cases for TPri1L. 10 (11.5%) of the
respondents provide dynamic customization of price based on personal information
(TPri2H) while 12 (13.8%) of the respondents have dynamic customization of prices
based on demand patterns (TPri3H).
However only 3 (3.4%) and 7 (8.0%) the surveyed hotels provide price negotiation online
(TPri4H) and allow partner websites to provide price negation on their behalf (TPri5H)
respectively.
On the level of sophistication at which the hotels are transforming the price dimension it
is clear that all the 56 hotels that have transformed the price dimensions have transformed
at low sophistication while the other aspects classified as high sophistication records
figures below 15% of all the hotels that have transformed the price dimension.
80
5.2.3 Transformation of Place
Table 5.8 Frequency, percentage of place Frequencies
Responses
Variable Name
Responses
(a)
Percent of
Cases
% of
Respondents
Frequency
Percent
TPla1L
87
41.8%
100.0%
100%
TPla2L
50
24.0%
57.5%
57.5%
TPla3H
63
30.3%
72.4%
72.4%
TPla4H
8
3.8%
9.2%
9.2%
208
100.0%
239.1%
239.1%
Total
A dichotomy group tabulated at value 1.
Source: Field Data 2011
Figure 5.8 Distribution of aspects in the place dimension
100
80
60
Frequency
40
20
0
TPla1L
TPla2L
TPla3H
TPla4H
From the data presented in the table 5.8, it shows that all the respondents have
transformed the Place Dimension with all the 87 (100%) of the surveyed hotels providing
email request for hotel booking online (TPla1L) which forms 100% of all the cases as
well. 50 (57.5%) of respondents’ carryout promotions of their website on the internet
(TPla2L). Furthermore, out of 63 (72.4%) of respondents that allow online booking on
their web site only 8 (9.2%) of them provide secure online payment.
All the respondents are transforming at least one aspect of the place dimension at a low
level of sophistication while 63 (72.4%) more than half of the hotels have transformed
high sophisticated aspects of place dimension.
81
5.2.4 Transformation of Promotion
Table 5.9 Frequency, percentage of promotion dimension
Percent of
Cases
Responses
Responses
(a)
% of
Respondent
Variable Name
Frequency
Percent
TPromo1L
52
58.4%
98.1%
59.8%
TPromo2L
16
18.0%
30.2%
18.4%
TPromo3H
16
18.0%
30.2%
18.4%
TPromo4H
5
5.6%
9.4%
5.7%
89
100.0%
167.9%
92.3%
Total
A dichotomy group tabulated at value 1.
Source: Field Data 2011
Figure 5.9 Distribution of aspects in the promotion
dimension
60
40
Frequency
20
0
TPromo1L
TPromo2L
TPromo3H
TPromo4H
Table 5.9 shows responses of the surveyed hotels on aspects of the promotion dimension,
52 (59.8%) out of the total respondents are engaged in online advertising (TPromo1L)
which also forms 98.1% of all the cases in the promotion dimension. 16 (18.4%) of
respondents uses their web sites to offer sales promotion (TPromo2L) as well as
customizes promotion depending on their guest profile (TPromo3H). 5 (5.7%) of the
respondents links with other organizations to offer online promotion.
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Again most of the respondents (98.1%) are engaged in transformation of promotion
dimension at low level sophistication. 18.4% of the respondents have transformed high
sophisticated aspects of promotion dimension.
5.2.5 Transformation of Customer Relations
Table 5.10 Frequency, percentages of customer relation dimension
Percent of
Cases
Responses
Variable Name
Responses
(a)
Frequency
% of
Respondent
Percent
CR1H
36
33.0%
87.8%
41.4%
CR2H
9
8.3%
22.0%
10.3%
CR3H
17
15.6%
41.5%
19.5%
CR4H
13
11.9%
31.7%
14.9%
CR5H
34
31.2%
82.9%
39.1%
109
100.0%
265.9%
125.2%
Total
A dichotomy group tabulated at value 1.
Source: Field Data 2011
Figure 5.10.Distribution of aspects in the customer relation
dimension
40
30
20
Frequency
10
0
CR1H
CR2H
CR3H
CR4H
CR5H
Table 5.10 shows the responses of the surveyed hotels along the five aspects that make up
the customer relation dimension. 36 (41.4%) of the respondents use the internet to provide
customer service (CR1H). 17 (19.5%) out of the total respondents have websites that
provide online communication with customers (CR3H). 34 (39.1%) of the respondents
83
from the survey solicit feedback from customers (CR5H) by the use of the hotel website.
13 (14.9%) of respondents have created online communities for customers (CR4H) while
only 9 respondents use the internet to identify and track customers online with the aimed of
providing customized services (CR2H)
The customer relation dimension showed the least positive responses in all the 5 aspects
within that dimension. This may be because all the aspects within that dimension are of
high sophistication and they require the use of advanced internet tools and as well as
commitment from management.
5.3
Dimension of Hotels’ Internet Marketing Mix and their Degree of Transformation
In this section to be able to further answer research question two, three, four and five. The
level of sophistication/degree of transformation as well as the number of the dimensions of
the surveyed hotels along the internet marketing mix is analyzed.
As indicated in Data Analysis of Chapter Four, the degree of transformation of a dimension
is calculated using the frequency of each of the aspects within the dimensions. The
transformation degree of each aspect and the overall transformation degree of a dimension
as show in table 5.11 is calculated using the formula below:
𝑠𝑢𝑚 𝑜𝑓 𝑢𝑠𝑒𝑑 𝑎𝑠𝑝𝑒𝑐𝑡𝑠
Transformation Degree of a Dimension (%) = 𝑇𝑜𝑡𝑎𝑙 𝑁𝑜.𝑜𝑓 𝑎𝑠𝑝𝑒𝑐𝑡𝑠 ∗ 100
Table 5.11 Frequency and Degree of Transformation of each of the five Internet
Marketing Dimension
Overall Degrees of Transformation of each of the Internet Marketing Dimension
Dimensions
Variable Name
No. used
Expected No.
Degree of
aspect/items
of
transformat
items/Aspects
ion (%)
TProd1L
87
87
14.29
TProd2H
13
87
2.13
TProd3H
86
87
14.12
Product
TProd4H
7
87
1.15
TProd5H
17
87
2.79
TProd6H
7
87
1.15
TProd7H
20
87
3.28
Total
237
609
38.92
84
Price
Place
Promotion
Customer
Relation
TPri1L
TPri2H
TPri3H
TPri4H
TPri5H
Total
TPla1L
TPla2L
TPla3H
TPla4H
Total
TPromo1L
TPromo2L
TPromo3H
TPromo4H
Total
CR1H
CR2H
CR3H
CR4H
CR5H
Total
56
10
12
3
7
88
87
50
63
8
208
52
16
16
5
89
36
9
17
13
34
109
87
87
87
87
87
435
87
87
87
87
348
87
87
87
87
348
87
87
87
87
87
435
12.87
2.30
2.76
0.69
1.61
20.23
25.00
14.37
18.10
2.30
59.77
14.94
4.60
4.60
1.44
25.57
8.28
2.07
3.91
2.99
7.82
25.06
Source: field data (2011)
The percentages of hotels with transformed dimensions are the valid percentages of the
case summary of the multiple responses analysis of each dimension as shown in table
5.12 below. The table indicates valid frequencies and percentages as well as missing
frequencies and percentages. In this situation the missing cases are not considered by
convention to mean that they did not provide answers or did not take part in the survey
but rather those who had not designed their web sites to provide any of the features
within the dimensions, hence answered no throughout all the items. Since we set up
dichotomies we counted values as 1 (“Yes” responses) the statistics for each dimension is
based on all the cases with valid data in the specified range.
85
Table 5.12 Case summary statistics of the Hotels Internet Marketing Mix
Cases
Valid
Internet Marketing
Mix Dimensions
N
Missing
Percent
N
Total
Percent
N
Percent
Product
87
100.0%
0
.0%
87
100.0%
Price
56
64.4%
31
35.6%
87
100.0%
Place
87
100.0%
0
.0%
87
100.0%
Promotion
53
60.9%
34
39.1%
87
100.0%
Customer Relations
41
47.1%
46
52.9%
87
100.0%
Dichotomy group tabulated at value 1
Source: Field data
Table 5.12 indicates that, all the surveyed hotels have web sites or uses the internet to
provide at least an aspect/feature in the product and place dimension. Majority 46
(52.9%) of the hotels have not transformed any of the features in the customer relation
dimension. 31 (35.6%) and 34 (39.1%) of the hotels do not provide any of the aspects in
the price and promotion dimensions respectively
The overall degree of achievement of the surveyed Hotels along the dimensions of the
internet marketing is shown in figure 5.11
86
Figure 5.11 Dimensions of Hotels’ Internet Marketing Mix and Their Degree of
Transformation
Customer Relation
Promotion
% of hotels with
transformed
dimensions
Place
Price
Degree of
Transformation
Product
0
20
40
60
80
100
Product
Price
Place
Promotion
Customer
Relation
% of hotels with transformed
dimensions
100
64.4
100
60.9
47.1
Degree of Transformation
38.9
20.2
59.8
25.6
25.1
Source: Field Data
Figure 5.11 shows the overall degree of transformation of the surveyed hotels and the
percentages of hotels with transformed dimensions along the internet marketing mix
dimension. It indicates that out of the five dimensions it is only place that recorded a
transformation degree of 59.8% which is above 50% indicating that hotels have
transformed more than one half of all the aspects in the place dimension.
The rest of the dimensions have a transformation degree less than 50% meaning hotels
are not implementing even one half of all the features in the other dimensions. Even
though the transformation degrees are low in these dimensions they do not share the same
degree of transformation. Product has a transformation degree of 38.9% while hotels have
transformed 25.6% of the promotion dimension. Customer relation and price have the
least transformation degree of 25.1% and 20.2% respectively.
The results also indicate that all the respondents 100% use the internet in the product and
place dimensions. 64.4% of the hotels have transformed the price dimension whiles
87
59.8% use the internet to promote their facilities. 41.1 % of the hotels use the internet in
the customer relation dimension
88
CHAPTER SIX
6.0
Discussion of Findings, Conclusion and Implications
T
his chapter includes the answers to research questions and some commentary on
research problem area. The chapter also includes conclusions and some
implication of findings for managers and for further research.
The purpose of our study was to find out what internet marketing strategies are being
followed by hotels in Ghana. In literature review different internet marketing models for
marketing on the internet were discussed in details. On the basis of investigating internet
marketing strategies of hotels in Ghana, the Internet Marketing Mix model (Sigala, 2003)
was used. The model which consists of five main dimensions (Transformation of;
Product, Price, Place, Promotion, and Customer Relation) were taken as our Frame of
Reference.
In Chapter Five, data collected from the survey were presented and analyzed. This
chapter will give details of our findings and conclusions on the basis of this study.
6.1
Discussion of Findings
The findings of this research in the form of answers to five research questions are
presented below. Also a summary of demographic data collected is presented. In all, the
conceptual understanding of variables and theory, data gathering and then analysis of
data are the basis of these findings.
6.1.1 Profile of the Respondents
From the survey conducted it was found out that majority of the hotels in Ghana are
independently operated this is especially so because most of these are family owned,
some few hotels are under hotel chain with only one hotel reported to be under franchise
hotels. Also most of these hotels have employed managers with either HND or Bachelors
Degree as their educational qualification. It is also evident that majority of the surveyed
hotels are in the 1star, 2star and 3star category with minority being in the 4star and 5star
category. In terms of the hotel size, there seems to be fairly equal distribution of the
hotels along the three classifications (small, average and large). Also in terms of location
89
of hotels majority of the surveyed hotels 65.5% in total are located in the Western,
Ashanti and Greater Accra regions. These findings are unexpected, considering that the
three major cities in the country are located in these regions; Secondi-Tarkoradi in the
Western region, Kumasi in the Ashanti region and Accra the capital city in the Greater
Accra regions. Also Economic activities in these 3 regions are among the highest in the
country (Ghana Statistical Service, 2007) All the 3 regions listed above have an airport
and a seaport with the exception of Ashanti region that has no seaport. In addition from
the However the three northern regions in Ghana compared to other regions within the
country have the least number of hotels. This can also be attributed to the fact that
economic activities in these regions are low compared to other regions (Ghana Statistical
Service, 2007).
6.1.2 RQ1. What is the composition/structure of the hotel’s Internet Marketing Mix?
The hotel internet marketing mix is made up of 5 broad dimensions. These areas are
product, price, place, promotion and customer relations. From the research conducted
among hotels in Ghana it was found out that all the hotels surveyed are applying all the 5
dimensions in their online activity although in varying degrees.
Out of the 5 dimensions, only 2 dimensions i.e., place and product dimensions have been
developed by all the hotels surveyed in Ghana. This indicates that all the hotels are
concentrating their efforts on having a presence in the information and distribution virtual
spaces.
A little more than half of the hotels in Ghana have developed the promotion and price
dimensions within the internet marketing mix. Less than half of the Ghanaian hotels use
the internet in the customer relations dimension.
Tables 5.6, 5.7, 5.8, 5.9 and 5.10 shows detail composition of the hotel internet marketing
mix along the five dimensions. The results shows that within the product and place
dimensions all the hotels surveyed have written information on their web sites provide
email request for booking while majority of the hotels have pictures of their facilities.
90
Although most of the hotels have published price information on their websites, very few
of them allow for dynamic pricing or online negotiation of their hotel rooms.
6.1.3 RQ2. Which dimensions of the Internet Marketing Mix are being transformed by the
hotels?
The research shows that all the five dimensions within the hotel internet marketing mix in
Ghana are being transformed at varying degrees with price being the least transformed
and place the most transformed. None of the dimensions have been transformed beyond
59.8%.
All the dimensions except place has a transformation degree less than 50% meaning
many hotels in Ghana have transformed few of the aspects within each dimension with
many of the aspects within the price dimension not being transformed.
This
shows
that most hotels in Ghana have aimed at increasing presence in distribution and
transaction virtual spaces.
6.1.4 RQ3. What internet marketing strategies are being pursued by hotels in Ghana?
The transformational capability of the internet offers organizations opportunities to
transfer their marketing activities onto the internet (Wen, & Chen, 2001). As pointed out
in the frame of reference, the traditional marketing mix (4Ps) can be transformed to each
of the virtual spaces of the ICDT model and the number and type of dimensions being
transformed indicates the type of business strategies being pursued.
Analysis of internet marketing strategies of hotels with respects to the number and type of
dimension of the Internet Marketing Mix reveals that, place and product dimensions are
the most transformed dimensions meaning most hotels in Ghana focus the use of their
websites on having presence in the information and distributions virtual spaces. All the
surveyed hotels (100%) use the internet in the product and place dimensions indicating
hotels are following a strategy mainly aim at increasing their distribution channels and
visibility in the virtual space. With VIS presence, hotels are pursuing globalization
strategy; aim at increasing the visibility and improving perception of products and
91
services as well as making product and services available at any time (Angehrn, 1997;
Sigala, 2003). From the survey it is evident that most hotels in Ghana have pursued this
strategy by primarily putting pictures and written information about their hotel facility
online, targeted at the prospective customers located in and out of Ghana.
The transformation of the place dimension (i.e., VDS presence) reflects a strategy aim at
cutting cost and lead time, improving quality and innovating product and services by
distributing them directly to customers through the internet fostering disintermediation.
With provisions of email request for booking, availability of online booking and in some
few cases availability of secure online payment system; customer are gradually moving
away from intermediaries who charge commissions for their services to making their own
bookings via hotel’s web site.
The above findings is consistent with Argehrn and Meyer (1997) assertions that; in terms
of engaging the virtual space, the VIS and the VDS are the spaces that has attracted the
most attentions by organization.
Although not all the surveyed hotels have developed their internet marketing strategies
other three dimensions (price, promotion, and customer relations) a little more than half
of them have develop strategies along the promotion and pricing dimensions. This shows
that a substantial number have design web sites for marketing activities to complement
the efforts of their product (VIS) and place (VDS) strategies. Again hotels with VIS and
VCS presence are pursuing a globalization strategy whiles those with VDS and VTS are
pursuing disintermediation strategy.
From the survey, it is evident that hotels in Ghana are pursuing mass marketing as less
emphasis is being placed on customization and personalization of their services. Majority
of the websites surveyed do not collect or gather information about prospective customers
with the aim of providing customization. It evident that hotels are not taking advantage
of the paradigm shift from traditional mass marketing to relationship marketing as the
customer relation is the least developed
92
6.1.5 RQ4. What is the level of sophistication/transformation of the hotels Internet
Marketing Mix dimensions?
From the results of the study, the level of sophistication of the internet marketing mix is
relatively low. Majority of the hotels have been able to transformed most of the aspects
classified as low sophistication primarily aimed at using the internet as a medium for
dissemination of information whereas very few are using the internet for more enhanced
and sophisticated activities. Except for the availability of online booking and pictures in
the place and product dimensions respectively, less than half of the hotels uses the
internet to innovate other aspects classified as higher sophistication within the
dimensions of the internet marketing mix.
Considering also the transformation degrees of the dimensions as shown in figure 5.11 it
is obvious that the dimensions within the internet marketing mix do not share the same
level of sophistication. Place have the highest level of sophistication whiles price is the
least among all the dimensions.
6.1.6 RQ5. Are hotels in Ghana fully exploiting the internet capabilities and features?
The extent to which hotels in Ghana are re-strategizing their marketing activities to take
advantage of the unique capabilities of the internet is depicted by Tables 5.6, 5.7, 5.8, 5.9
and 5.10 and figure 5.11 As stated in literature, two main internets enabled capabilities:
interactivity and connectivity are available for hotels to exploit.
Majority of the surveyed hotels make very limited use of internet tools to fully take
advantage of internet enabled capabilities as, much of the focus is on exploiting the
internet as an information centre and reservation medium. Hotels in Ghana do this by
publishing their facilities and services on offer and advertising and promoting their web
sites on the Virtual Distribution Space. Even though majority of the hotels are making
efforts to move to an advanced form of conducting e-commerce in terms of conducting
transaction online in real time, only about 9% provide for online reservation and secure
payment system. This means that most of the hotels have just provided booking facilities
93
online but have not fully exploited it to gain advantage (reference to literature with
examples. However, all the hotels provide for email reservation request.
Hotels trying to transform their business activities online have exploited the interactive
capabilities of the internet in a very limited manner. The survey shows that, very few
hotels allow customization of their products and websites based on customer’s profile.
Furthermore, few other hotels identify, keep track and reward loyal customers. Among
the factors contributing to the low level of exploitation are the failure on the part of the
hotel websites to gather customer information as well as solicit for feedback about their
products and services. Even hotels that make provision for online booking collect very
little data about the customer - most often just requiring names and email addresses of
customers.
In addition to the above, very few of the hotels have tried to move to an even more
advanced stage of internet exploitation: business transformation on the virtual space. Less
than 14% of the hotels allowed for dynamic pricing based on customer profile and
demand patterns as well as online negotiations of their rooms and services
The connectivity capabilities of the internet have also been exploited in a limited way.
Majority of the hotels have just taken advantage of the shared global market space which
the connectivity capability (open and global nature) of the internet offers for the purpose
of having presence and to compete globally. As pointed out by Sigala (2003) The radical
increase in connectivity is giving rise to new communication and coordination
mechanisms across organizations and customers as well as within groups of customers
themselves. As the law of network externalities imply; the value of the network increases
with an increased number of patrons. This means that connectivity offers more than just
having presence on the internet. From the survey very few hotels are taking advantage of
the two-way communication medium of the internet to communicate with their
customers. Few have also shifted gear by forming online communities for their customers
to communicate and network.
94
6.2
Conclusion
The internet is considered a driving force that has the tendency to propel businesses to
gain competitive advantage in the global economy. Over the years the internet in Ghana
has been developing at an increasing rate and many businesses are embracing it as a way
of enhancing their business activities.
Most of the hotels surveyed that uses the internet to enhance their business activities fall
within 2 – 3 star category and are independently owned. They are located in 3 main
regions – Greater Accra, Ashanti and Western. Many of the surveyed hotels are managed
by HND or Bachelor Degree holders.
The study has shown that many hotels in Ghana understand the need to put their
businesses on the internet.
As a result, many hotels have websites although their
functionality is mainly skewed towards providing information about their facilities and
services. This cut across all the five dimensions within their internet marketing mixes i.e.
Product, Price, Place, Promotion, and Customer Relations though in varying degree.
The hotel industry in Ghana has concentrated most of its internet marketing efforts
towards generating transactions by using the internet as a publishing medium rather than
putting in place internet tools aimed at building long term relationships with the
customer. These hotels have simply transformed their existing business strategy in their
brick and mortar businesses to the internet.
The application of the Internet Marketing Mix model to the current internet marketing
strategies of hotels in this study reveal that all the hotels have focused their internet
strategies on a massive but relatively simple and generic transformation of the product
and place dimensions (i.e., simple and generic VIS and VDS presence. More than have
transformed the price and promotion with customer relation attracting the least attention
but support limited number of internet base transaction in terms of providing price
information, offering discounts and providing secure payment systems for completions of
booking online.
Most of the hotels are operating at low levels of sophistication relating to the 5
dimensions of the internet marketing mix. In that regard most Ghanaian hotels have failed
95
to exploit the interactivity and connectivity capabilities as well as the transformational
impact of the internet to model their internet strategies for competitive advantage. This
situation presents opportunity for improving on their internet marketing strategies in
order to attract a bigger share of the hospitality market globally. It is widely supported in
literature that hotels that have developed sophisticated as well as extended internet
marketing mix stand to gain the most benefits such additional channel for making
reservation and carrying out transaction, repeated sales and visits as well as web site
stickiness (Sigala, 2002:2003; O’Connor, 2002; Zott, et.al., 2000; Liu and Arnett’s, 2000)
In all, as customers demand for customize products and services, transparent on line
transactions as well as superior customer services online, this coupled with influx of
international hotels brands that significantly dominate the online market with their
sophisticated and more extended internet marketing strategies; hotels in Ghana should
seriously think of developing sophisticated internet marketing strategies to stay in
competition.
6.3
Limitations and Delimitations of the Study
The main limitations of this study are resources and access constraints. The materials and
financial resources needed for a large and dispersed sample size was inadequate. It is also
not likely the researches would have access to every hotel in every region to fill the
questionnaire. In addition some of the hotels were not interested in participating in the
research. Furthermore this research was a replication of similar study conducted in
Greece (Sigala 2003) and due to lack of access to the following data: the number of
annual visits on the Web page, the number of annual Web-generated requests for
information/reservations, the proportion of reservations generated through the Internet
during the past year, and the average daily rate (ADR) of Internet-generated reservations
expressed as a proportion of the hotel’s rank rate. We could not test for the efficiencies
and effectiveness of the internet marketing strategies but could only rely on theory
The study was delimited to hotels located within Ghana. Again, only hotels that have
websites were used in this study for analysis. Furthermore, this study did not attempt to
96
investigate internet marketing strategies by each of the hotels in the sample. Finally the
sample of this study is delimited to a sizeable number of 103 hotels.
6.4
Implications for Managers and Industry
From the data which was gathered and analyzed base on our frame of reference and
research questions as well as the findings of the study brings out the following
implications:
1. The Ghana Tourism board and the Association of Hotels and in Ghana must lobby
and liaise with the banking sector to open up online payment platforms to enhance
electronic payment for online transactions which has hitherto been absent. There
is also a need for them to upgrade their web site to a portal that opens up for
corporate users - potential partners, suppliers, or distributors within the hotel subsector this will provide an avenue for - close user group interaction and
discussions of industry trends via on-line forums. This social space would build
up relationships and potential sources of information which might pave the way
for future commercial collaboration - like virtual trade fairs. Of course,
monitoring and contributing to such communication spaces may require the
creation of new jobs.
2. It is suggested hotels in Ghana should engage marketing practitioners in the
process of designing their website so as to address the limited focus on the
sophisticated marketing strategies online. But it should be pointed out that this is
not a one-off effort. If hotels want people to return to their site, and to build
website stickiness, then they need to regularly update the content of its pages.
And that requires dedicated personnel, and investments in multimedia
competencies.
3. It must be noted that simply creating a Web site does little to stimulate interest. It
only establishes contact but if the aim is to connect with customers and other
economic agents then the information and other online activities must be relevant.
97
Relevance can be enhanced by customising the channel, so that the pages are
tailored to user groups. For example, potential business partners such as tour
operators and travel agents require different company or product information
needs from potential consumers. It was surprising to find out from our online
visit to the hotel website, information about property location was not on their
website. Choi & Hsu (2001) stress that the absence of location information may
significantly frustrate or lose a potential customer who wants to visit the property
on time.
4. It is suggested that hotels should provide information about their profile. The
presence of such information is not only a public relations strategy but it will also
be a drawing for some potential customers to patronise the hotels facilities.
5. The VCS presence of most hotels in Ghana remains underdeveloped because
hotels are still not sure what objectives it might serve. Part of the problem, is that
the interface with customers has traditionally been the responsibility of marketing
and sales executives and they are still following the traditional broadcasting (oneto-many)
as
opposed
to
exploiting
the
narrow
casting
(one-to-one)
communication potential of the Internet. The VCS provides an opportunity for
Hotels to exchange information and opinions through e-mail, in on-line forum
discussions, or more advanced 3D- and virtual reality interaction spaces.
Discussions among visitors regarding their experiences with the hotels’ services
and facilities have an unforeseen payoff for the hotel. Besides helping to
differentiate the hotel from the crowd, it may highlight untapped market
segments.
6. Management of Ghanaian hotels must make it a policy to regularly pay the
subscription of their domain names and update their website regularly to reflect
changes within the hotel as many websites visited had not been updated since
creation.
98
7. It is suggested that all hotels must display their prices online in order for the
prospective customer to make a decision. This is necessary because it is so easy
for the prospective client online to move from website to website without much
inconvenience and cost in a bid to get all the needed information and make a
booking.
8. It is suggested that with the current influx of global brands like Movenpick
Ambassador Hotel, Best western, Holiday Inn hotels into the country indigenous
hotels that serve similar targets need to improve their internet marketing strategies
in order for them not to lose out in the competition to the bigger brands.
6.5
Implications for further research
This study mainly investigated internet marketing strategies being followed by hotels in
Ghana. It used a questionnaire in a survey and took quantitative approach. Similar area of
study but different methodology could be used.
This study also extends previous internet marketing researches to an under-researched
part of the world; Ghana’s hospitality industry: Also based on our conclusions and a
number of issues that confronted us during the research process, the study provides
avenues to be explored by interested researchers.
Although it is reported in literature that organizations with sophisticated internet
marketing mixes that exploit the fully exploits the capabilities and features of the internet
stand to gain the most benefits and offer them competitive advantage, due to its
effectiveness and efficiencies. It is also evident in evaluations of internet marketing
strategies that sophisticated and multidimensional internet marketing mixes can lead to
great inefficiencies and waste of resources if not well coordinated (Sigala, 2003). Hence
further research is required to investigate in depth how hotels in Ghana are restructuring
their management and organizational practices and policies to successfully adopt internet
strategies.
99
Measuring of web site marketing effectiveness is widely reported in literature (Murphy,
et.al., 2001: Gretzel, et.al., 2000: O’Connor, 2002: Schlosser, et.al., 1999: Sigala, 2002;
2003) with varying opinion. But what is consistent among them is the fact that marketing
efforts and investments on the internet should translate into improvement in revenue.
However due to our inability to access statistical data, the efficiency scores of the internet
marketing strategies were not measured. Again interested researchers can research into
evaluating the effectiveness of hotels internet marketing mix as well as the effect of
demographic factors on the level of sophistication of internet marketing mixes and its
efficiency.
100
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109
APPENDIX A
QUESTIONNAIRE FOR HOTELS
Dear participant, this questionnaire is designed to collect information about your hotel internet
marketing activities. We are Msc Students of Lulea University of Technology, Sweden and
University of Education, Winneba (Kumasi Campus) studying Marketing and e-commerce.
Please tick [√] the appropriate box for your answers.
Part One (1): General Information
1.
Name of Hotel………………………………………………………………
2. What kind of management arrangement does your hotel operate under?
[ ] Independent
[ ]Chain [ ]franchise
3. How many rooms does your hotel have?
[ ] 1-25 [ ] 26-50 [ ] above 50
4. What is the level of education of the Hotel Manager?
[ ] Diploma [ ] Higher National Diploma
[ ] Bachelor [ ] Masters [ ] Phd
5. What star category is your hotel?
[ ]1 [ ]2 [ ]3 [ ] 4 [ ]5
6. Which region is your hotel located?
[ ] Volta Region
[ ] Western Region
[ ] Greater Accra Region
[ ] Ashanti Region
[ ] Northern Region
[ ] Central Region
[ ] Brong Ahafo Region [ ] Upper East Region
[ ] Upper West Region
[ ] Eastern Region
Part Two (2) Internet Marketing Mix Dimensions
You are to indicate whether your web site is designed for the activities. If you web site is design
for any of the activities listed under each dimension thick “Yes” otherwise thick “No”
Product Dimension
7.
Does your website have written information about the hotel facilities?
[ ] Yes [ ] No
8.
Does your website have videos of the hotel rooms and other facilities?
110
[ ] Yes [ ] No
9.
Does your website have pictures of the hotel rooms and other facilities?
[ ] Yes [ ] No
10. Does your website have audio information about the hotel?
[ ] Yes [ ] No
11. Is your product information on your website customized for different categories of clients?
[ ] Yes [ ] No
Do customers have the opportunity to participate in any of the following?
12. Hotel room design [ ] Yes [ ] No
Suggest Services on offer by the hotel [ ] Yes [ ] No
Price Dimension
13. Does your website provide information on price?
[ ] Yes [ ] No
14. Does your website provide customized prices based on personal information?
[ ] Yes [ ] No
15. Does your website provide customized prices based on demand patterns?
[ ] Yes [ ] No
16. Does your website provide price negotiation for prospective customers?
[ ] Yes [ ] No
17. Do partner websites provide price negotiation for prospective customers?
[ ] Yes [ ] No
Place Dimension
18. Does your website provide email request for bookings?
[ ] Yes [ ] No
19. Does your hotel promote its website on the internet?
[ ] Yes [ ] No
20. Does your hotel website make provision for online booking?
[ ] Yes [ ] No
111
21. Does your hotel website have a secure online payment facility?
[ ] Yes [ ] No
PROMOTION
22. Does your hotel advertise on the internet?
[ ] Yes [ ] No
23. Does your hotel use online promotions such as sales discounts?
[ ] Yes [ ] No
24. Does your hotel customize its online promotions depending on quest profile?
[ ] Yes [ ] No
25. Does your hotel link with other organizations to offer online promotions?
[ ] Yes [ ] No
Customer Relations Dimension
26. Does your hotel provide customer service online?
[ ] Yes [ ] No
27. Does your hotel identify and track customers online with the aim of providing customized
services?
[ ] Yes [ ] No
28. Does your hotel communicate with customers via the internet?
[ ] Yes [ ] No
29. Has your hotel created an online community for customers?
[ ] Yes [ ] No
30. Does your hotel solicit for feedback from customers via the internet?
[ ] Yes [ ] No
112
APPENDIX B
INFORMED CONSENT INFORMATION
Thank you for agreeing to participate in this study. This form outlines the objectives of the study
and provides a description of your involvement and rights as a participant.
This study is part of a joint Msc in Marketing and e-Commerce programme at the Lulea
University of Technology (LTU) and University of Education, Winneba, Kumasi Campus. Its
purpose is to Investigate Internet Marketing Strategies of Hotels in Ghana. A questionnaire will
be used for the Hotels for information.
The outcome of the study: The information from this study will be used to write a thesis about
Internet Marketing and Hotels in Ghana. The study report may be used as a reference for other
thesis.
We guarantee that respondents’ anonymity is fully assured and that your participation in this
research is voluntary; and you have the right to withdraw at any point of the study, for any
reason, and any corresponding information will be destroyed.
INFORMED CONSENT FORM
1. I Confirm that I have read and understand the purpose of the above study and have had
the opportunity to ask questions
2. I understand that my participation is voluntary and that I am free to withdraw at any time,
without giving any reason.
3. I agree that the information I give can be anonymised in an academic paper.
……………………………......
Name of participant
…………................
Date
……….......
Signature
Researchers’ contacts
Name:
Charles Kofi Ogbeh
Name:
Paul Deladem Koku
Address:
P.O. Box FN 815 Kumasi
Address:
P O Box HP654, Ho - VR
Phone:
0207278725/026839382
Phone:
0208716878
Email:
[email protected]
Email
[email protected]
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