co-creation in hospitality industry - a case study on the drivers for traveler-generated content...

CO-CREATION IN HOSPITALITY INDUSTRYA CASE STUDY ON THE DRIVERS FOR TRAVELER-

GENERATED CONTENT

CAMILA DOS ANJOS FERRAZ

MASTERS IN INTERNATIONAL MANAGEMENT

agenda

MOTIVATION OF THE RESEARCH

THEORETICAL FRAMEWORK

METHODOLOGY

ANALYSIS OF FINDINGS

CONCLUSIONS

ACKNOWLEDGEMENTS

CAMILA DOS ANJOS FERRAZ - MASTERS IN INTERNATIONAL MANAGEMENTCO-CREATION IN HOSPITALITY INDUSTRY: A CASE STUDY ON THE DRIVERS FOR TRAVELER-GENERATED CONTENT

motivationof the research

Purpose: analyze UGC in travel industry from

the perspective of the drivers that motivate co-

creation and delve deeper into the subject by

exploring user behavior on TripAdvisor.

What are the drivers for User-Generated Content among travelers?

Sourc

e:

Com

Score

Media

Metr

ix(J

uly

2015)

Academic relevance

- Enhance the literature in

such a contemporary

phenomenon

- Fill a gap on adherence

of local culture to UGC

- Analyse its applications

on hospitality industry

Managerial relevance

- Conversion Rates

- Hotel Load

- Operational Feedback

- Design marketing

strategies

“marketing-induced consumer-to-

consumer word of mouth generates

more than twice the sales of paid

advertising” (McKinsey)

Why TripAdvisor?

World’s largest travel

site in unique visitors and

UGC is in the core of its

business model


theoretical

framework

CAMILA DOS ANJOS FERRAZ - MASTERS IN INTERNATIONAL MANAGEMENTUSER-GENERATED CONTENT IN TRAVEL INDUSTRY: DRIVERS FOR CO-CREATION IN TRIPADVISOR AMONG TRAVELERS FROM SÃO

PAULO

Co-Creation and

UGC

Business and

Brand Impact

Online Travel

Industry


theoretical

framework


PAULO

Co-Creation and

UGC


ongoing collaboration with customers,

employees, and other stakeholders

(Ramaswamy and Ozkan, 2014)

ways that users create and share

media with one another, with no

professionals anywhere in sight (Shirky, 2008)

positive feedback (Shapiro and Varian, 1999) and network effect “ever growing size” (Shao, 2008)

interdependence: consumption, participation and production (Shao, 2008)

Word-of-mouth vs. e-word-of-mouth (Sharma, R. S., Morales-

Arroyo, M., and Pandey, T., 2012)

long tail (Anderson, 2008)

reverse costs of filtering and publishing (Shirky, 2008)

theoretical

framework


PAULO

Business and

Brand Impact


impact of reviews in the reservation of

independent restaurants “despite the

large impact of Yelp on revenue for

independent restaurants; the impact is

statistically insignificant and close to zero

for chains.”(Luca, 2011)

lesser known hotels take better advantage of

the reviews(Vermeulen and Seegers, 2009)

“online WOM equity”: message content

(positive or negative), author's profile

identity and publication environment

(such as a blog) impact this equity(Bughin, Doogan and Vetvik, 2010)

10% on hotel rating, +5%

hotel bookings for an OTA(Ye, Law, Gu and Chen, 2009)

+1 star on independent

restaurant rating, +9% revenue(Luca, 2011)

follow their customers’ perception

and feelings towards their brand

in real time. Abundance of “free”

content. (McWilliam, 2000)

theoretical

framework


PAULO

Online Travel

Industry

Among all sectors, highest %

of online purchases and

researches in Brazil (Consumer Barometer)

TripAdvisor has more than

60M reviews worldwide

30%

92%

Share of independent hotels:


case study

methodology


PAULO

- Theory review;- Desk research;- Business Data;- TA Executive

Interview;- Survey

Design.

CASE STUDY

METHODOLOGY

- Contemporary

event in a

context where

behaviors can’t

be manipulated;

- Multiple sources

of data;

- Importance of

selecting the

right case: TA

relevance.

LIMITATIONSQUANTITATIVEFACTOR &

CLUSTER ANALYSIS

DATA

COLLECTION

AND ANALYSIS

QUALITATIVE


DATA

COLLECTION

AND ANALYSIS

- Collection of Survey

Responses;- Description of

the universe;

- Factor and

Cluster

Analysis;

- Outcomes of

Progress;

- Conclusions.

AND

DELIMITATION

S

- Leisure vs. business traveler;

- Population vs. sample;

- Geographical target;

- Focus on production,

despite consumption

and participation

relevance.

case study

methodology


PAULO

FACTOR &

CLUSTER ANALYSIS


18 STATEMENTS

7 FACTORS

69% OF THE INFORMATION

case study

methodology


PAULO

FACTOR &

CLUSTER ANALYSIS


18 STATEMENTS

7 FACTORS


4 CLUSTERS

case study

methodology


PAULO

FACTOR &

CLUSTER ANALYSIS


What a Stud!

Absent-

minded

New Recruits

Business

Advocate

- genuinely pleased to

help and give

something back to the

community;

- likely to share more

good experiences;

- savvy travelers.

- knows the value of his

opinions towards

official information;

- lower community

engagement requires

incentives or reminders

to share.

- content consumers with low

community engagement;

- incentives are a driver as a

mean to travel more often;

- not yet savvy travelers and

don’t see production as self-

expression.

- feedback approach;

- shares positive experiences as

a way to reward and negative

ones to punish establishments;

- responds to incentives,

demand in-person or through

email;

- less self-motivated given the

lower content consumption.

18 STATEMENTS

7 FACTORS


4 CLUSTERS

case study

methodology


PAULO

FACTOR &

CLUSTER ANALYSIS


What a Stud!

Absent-

minded

New Recruits

Business

Advocate

- genuinely pleased to

help and give

something back to the

community;

- likely to share more

good experiences;

- savvy travelers.

social function (joy in

community engagement)

self-expression

self-promotion (desire to show

destinations visited)

Knowledge function driver

(being aware that this

information can be helpful to

others)

Utilitarian fuction (rewards)

Social functions (community

engagement)

change perception function

(since their goal is to make

other users see the brand in

another way)

18 STATEMENTS

7 FACTORS


4 CLUSTERS

motivations for

UGC observed

by

Christodoulides,

Jevons &

Bonhomme

(2012)

A model of the influence of online brand communities onrelationships and purchase

(Adjei, Noble, Noble, 2010)

Applied to the case study

Communication Settling

Expertise Product Complexity

Online C2C

Communication

Quality

Uncertainty

Reduction

Valence of

Information

Exchanged

Customer

Purchase

Behavior

amount of options, lack of

standardization, the self (and others’)

exposure towards an experience, and

expectations management

bedges and gamification as leverages

for TA. For the user, it’s not how much

one travel but how engaged with UGC

and content.

independent content makes it

unbiased and trustworthy. Brands are

mean to use it as a communication

channel and feedback, not sponsors.

Relevance measured by recency of

the review and who wrote it (e.g.

Facebook friends)

TA plays a major goal of reducing

uncertainty towards hotel selection.

It can only happen through user

production of content. If the brand

actively is part of this

communication uncertainty is even

more reduced.

Offline referrals and post trip

feedback

Path to decision:

- Stimulus (WOM, magazines)

- Zero moment of truth (TA,

content)

- Price comparison (TA, agent, etc)

- Decision

- Trip

conclusions


From consumers

to producers

Trustworthiness Incentives

Executive interview

73% of respondents consume,

but don’t produce

Offline Word-of-mouth

Online Algorithm to deliver

results with higher relevance

Partnerships

Loyalty Programs


PAULO

CAMILA DOS ANJOS FERRAZ - MASTERS IN INTERNATIONAL MANAGEMENTCO-CREATION IN HOSPITALITY INDUSTRY: A CASE STUDY ON THE DRIVERS FOR TRAVELER-GENERATED CONTENTF

INA

L C

ON

SID

ER

AT

ION

S

Chicken-egg

conundrumBroad content to acquire more

users, more users to produce

broader content

Industry Adherence

Hotel long tail structure, more

options less known, exposure

to experiences

Interdependence

Across production,

consumption and participation.

Though production is not for

everyone.

Technology

Together with marketing

knowledge, plays a critical role

on executing strategies.

THANK YOU!

CAMILA FERRAZ

MASTERS IN INTERNATIONAL MANAGEMENT - FGV EAESPCo-Creation in Hospitality Industry: a Case Study on the Drivers for Traveler-Generated

CO-CREATION IN HOSPITALITY INDUSTRY:

A CASE STUDY ON THE DRIVERS FOR TRAVELER-GENERATED CONTENT

co-creation in hospitality industry - a case study on the drivers for traveler-generated content...

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