Introduction
Electronic word of mouth (eWOM) is a matter of increased attention of researchers around the world, as it can be a powerful marketing tool. Before making a purchase or using a service, consumers tend to search for information shared by previous customers to make themselves comfortable (Erkan & Evans, 2016). Instead of using the official information provided by organizations, customers look for an unbiased source of information to form expectations about the product (Moran & Muzellec, 2017). Such a source of information is usually word of mouth (WOM), which is customer-to-customer conversations that “aid the diffusion of innovations and brand-related information among receptive audiences” (Moran & Muzellec, 2017, p. 149). eWOM uses the internet to pass information through forums, social media, blogs, and shopping websites (Erkan & Evans, 2016). In comparison with traditional WOM, eWOM can become viral, as it can reach many people simultaneously. Therefore, using eWOM in marketing is of extreme importance, as it has an increased potential of influencing the opinions of potential customers.
Hospitality in the United Arab Emirates (UAE) is a fast-growing sector, as the country has become a popular destination for tourists from around the globe. According to Sahoo (2016), hospitality revenues in the UAE were growing at 10.8% annually, reaching almost $8 billion in 2016 (Sahoo, 2016). However, the impact of the COVID-19 pandemic had a tremendous impact on the industry as the occupancy fell from 77% to 20% in 2020 (Mahtani, 2020). After the epidemic is over, the UAE hospitality companies will need to use all tools available to recover. eWOM is one of the most powerful marketing tools that can help the industry to grow. In order to influence eWOM, companies need to understand the factors that affect eWOM intentions. Multiple research touched upon these factors in hospitality (Pourfakhimi et al., 2019). However, all the knowledge was not specific to the UAE, and further investigation was needed.
The present paper aims to determine which factors have an effect on eWOM intentions among tourists who used hospitality services in the UAE. In order to achieve this purpose, the present study identified the following objectives.
- Review the current body of knowledge concerning factors affecting eWOM and identify a gap in knowledge;
- Adopt a relevant theoretical framework to analyze how the factors affect eWOM and purchase intentions;
- Gather and analyze data concerning eWOM intentions, specifically in the UAE.
- Discuss the implications of findings to provide specific recommendations concerning eWOM use for the hospitality sector in the UAE.
The present paper was guided by the following research question:
“What are the motivational factors that affect eWOM in the hospitality sector in the UAE?”
The present study is important as it is expected to contribute to the current body of knowledge by testing the significance of effect various factors have on eWOM in the hospitality sector in the UAE. Having this information is crucial for the UAE, as it can improve the financial performance of the hospitality sector in the country and increase the revenues of the government from taxing the companies in the industry.
Literature Review
Theoretical Framework
The effect of positive eWOM can be explained by the theory of planned behavior (TPB). The theory states that consumer behavior and purchase intentions can be explained by various reasons, which are attitude, behavioral intention, subjective norms, social norms, perceived power, and perceived behavioral control (Ajzen, 1991). Attitude is a degree to which a person has a positive or negative evaluation of behavior (Ajzen, 1991). The attitude is explained by the perceived outcomes of behavior (Ajzen, 1991). Behavior intention is explained by motivational factors that influence behavior (Ajzen, 1991). The strength of the intention is positively correlated with the probability of performing an action (Ajzen, 1991). Subjective norms refer to the belief of the performer of the action about whether the peers approve of the behavior (Ajzen, 1991). Social norms are customary codes of behavior in a group of people of different sizes (Ajzen, 1991). Social norms often refer to standards in a cultural context (Ajzen, 1991). Perceived power refers to the presence of factors that facilitate disrupt the performance of an intended behavior, and perceived control is the idea of how difficult or easy it is to perform an action (Ajzen, 1991). TPB assumes that the combination of the seven factors described above contributes to the motivation of performing different behaviors.
The theoretical framework was used for various studies to explain purchase behaviors in various industries. Paul et al. (2016) recruited 531 participants to validate TBP for explaining the purchase intentions of green products in India. Statistical analysis of the gathered data revealed that TPB and extended TPB have a high utility for predicting purchase intentions of green products (Paul et al., 2016). Arifani and Haryanto (2018) used TBP to explain the motivation for purchasing reusable shopping bags in Indonesia. Han et al. (2017) utilized TBP to explain the travelers’ decision-making process for buying bicycle tours. Apart from the business sphere, the theory is also often used for predicting behavior in healthcare. Considering the fact that the theoretical framework is being cited by current research, it can be considered a viable framework for explaining how factors affect eWOM.
Hospitality Industry in the UAE
The UAE is recognized as a premier tourism and leisure destination. The hospitality and tourism industry has experienced significant growth in the past 15 years. According to US-UAE Business Council (2019), the central reason for the rapid development of the sector is the country’s strategic location, superior transportation infrastructure, and outstanding airlines. From 2007 to 2017, the industry has grown considerably as a direct contribution of the sector to the GDP grew by 138% and employment grew by 119% (Khan, 2018). The dynamics of the industry growth with forecasts until 2027 are presented in Figure 1 below. In 2017, the country welcomed over 20.4 million hotel guests and provided jobs for almost 570,000 people, which is 4.8% of the country’s total employment (US-UAE Business Council, 2019). The key players of the industry are large international hospitality groups, such as Hilton, Hyatt, and Marriott, as well as smaller local companies, such as Jumeirah Group, Emaar, and DAMAC (US-UAE Business Council, 2019).
Even though the hospitality sector was hit hard by the COVID-19 pandemic, it is expected to recover fast as soon as the international block-outs are over. In March 2020, instead of expected 85% occupancy and average daily room rates close to Dh1,000, the industry has experienced a recession to 20% occupancy and room rates just above Dh500 (Mahtani, 2020). Considering the fact that the pandemic put smaller hospitality companies at the brink of closing business, significant interventions from the government are needed to ensure stability in the industry (Mahtani, 2020). However, the sector is expected to fully recover in Q4 of 2020, as the World Expo will facilitate the growth (Abbas, 2020). In summary, even though the hospitality sector experienced a significant decline in Q1 and Q2 of 2020, it is expected to continue its growth, given the pandemic is over by Q4.
eWOM and Hospitality
The influences of eWOM on the development of business are widely discussed in the current literature. Word of mouth is known to have a significant impact on purchase intentions of customers (Erkan & Evans, 2016). Forums, shopping websites, blogs, and social media created an opportunity for the spread of eWOM (Erkan & Evans, 2016). Conversations on these Internet resources have a varying impact on purchase intentions, depending on several factors. Erkan and Evans (2016) used the Information Adoption Model and Theory of Reasoned Action to determine that the key factors affecting purchase intentions were quality, credibility, usefulness, and adoption of information, as well as the need for the information and attitude toward the information. Thus, it can be stated that entrepreneurs need to pay close attention to eWOM and try to influence it positively to increase sales.
While trying to use eWOM as a marketing tool, it is crucial to utilize fair methods to affect people’s opinions. According to Moran and Muzellec (2017), many companies try to engage in misleading marketing activity generating fake reviews about products and services. However, engaging in such activity may negatively impact revenues, as the trustworthiness of such eWOM decreases. According to Wu and Lin (2017), the perceived credibility of the source of information has a considerable impact on the decision-making process of the customers. Moran and Muzellec (2017) suggest that direct influence on eWOM through controlled customer feedback and the provision of customer rewards may lead to decreased credibility of eWOM and negative changes in revenues. Therefore, instead of influencing eWOM directly, marketers need to understand the factors that affect the matter to influence it indirectly. This approach is expected to increase the credibility of eWOM and positively impact purchase intentions.
Perceived credibility of information is also one of the key predictors of the intention to share eWOM. A study conducted by Martínez et al. (2020) recruited 208 participants from Spain to determine what factors affect eWOM intentions concerning corporate social responsibility in the hospitality sector. The research revealed that information value, trustworthiness, and information value are positively correlated with eWOM intentions (Martínez et al., 2020). These findings are confirmed by Farías (2017), who conducted research in Chile to understand which factors affect positive eWOM intentions. The study revealed that tie strength, normative influence, informational influence, self-presentation, and voluntary self-disclosure have a significant positive impact on eWOM intentions (Farías, 2017). The research also argued that voluntary self-disclosure affects the perceived credibility of eWOM (Farías, 2017). Thus, current literature confirms that while influencing eWOM, marketers should pay close attention to preserving the perceived credibility of the information.
Even though eWOM is a matter of increased attention among scholars, eWOM intentions in hospitality remains an under-researched subject. In order to address the gap in the literature, Yang (2017) designed a study that inspected how satisfaction and knowledge sharing motivation affect eWOM intentions in the restaurant business. The research recruited 244 respondents to test the effect of restaurant satisfaction, egoism, perceived usefulness of the website, and altruistic needs on eWOM intentions. The results revealed that experience factors, knowledge sharing factors, and technology acceptance factors were in a positive correlation with eWOM intentions (Yang, 2017).
Pourfakhimi et al. (2019) conducted a thorough literature review to understand what factors affect eWOM. The review demonstrated that there were four determinants of eWOM impacts, which were product-related, source-related, message-related, and consumer-related factors (Pourfakhimi et al., 2019). Among product-related matters, the researchers mentioned complexity, brand image, and inherent risks (Pourfakhimi et al., 2019). Source-related factors include perceived expertise, trustworthiness, and user activity (Pourfakhimi et al., 2019). The message-related determinates were perceived usefulness, accessibility, perceived conformity, emotive power, and perceived consensus (Pourfakhimi et al., 2019). Finally, the consumer-related factors included beliefs, evolvement, and demographics (Pourfakhimi et al., 2019). In summary, Pourfakhimi et al. (2019) mentioned 37 factors that may affect eWOM in hospitality.
Summary
The literature review revealed that the hospitality industry is extremely important for the UAE, as it generates a considerable part of the country’s GDP. Currently, the industry is experiencing a decline due to the COVID-19 pandemic. However, the sector is expected to recover when the pandemic is over if the government provides needed support to the industry, and the World Expo of 2020 is not canceled. Efficient marketing that utilizes eWOM to encourage purchase intentions may also facilitate the recovery of the industry. However, marketers need to make sure that they do not influence eWOM using faulty practices, as it can negatively affect sales due to a decrease in trustworthiness. Entrepreneurs need to understand the factors that affect positive eWOM intentions to understand how it can be influenced indirectly. The review of current literature revealed that numerous factors affect eWOM intentions, which can be subdivided into seven groups, including (1) compliance and entity improvement, (2) marketing and advertisement, (3) customer engagement, (4) quality and services, (5) reliability and commitment, (6) excellence and credibility, and (7) interaction with media.
The literature review also determined that the factors affecting eWOM intentions in the hospitality industry are understudied. In particular, no research was found that assesses factors that influence positive eWOM intentions in the UAE. Therefore, the present study is expected to close a considerable gap in the current body of knowledge, as it uses data acquired from a sample of UAE participants to generate insights about eWOM intentions in the hospitality sector of the country. The present research needs to understand how the seven factors mentioned above correlate with eWOM intentions. Considering these objectives, the study needs to test the following hypotheses:
- H1.: Compliance and entity improvement have a significant impact on eWOM intentions in the hospitality sector of the UAE.
- H2.: Marketing and advertisement have a significant impact on eWOM intentions in the hospitality sector of the UAE.
- H3.: Customer engagement has a significant impact on eWOM intentions in the hospitality sector of the UAE.
- H4.: Quality and service have a significant impact on eWOM intentions in the hospitality sector of the UAE.
- H5.: Reliability and commitment have a significant impact on eWOM intentions in the hospitality sector of the UAE.
- H6.: Excellence and credibility have a significant impact on eWOM intentions in the hospitality sector of the UAE.
- H7.: Interaction with media has a significant impact on eWOM intentions in the hospitality sector of the UAE.
Research Methodology
Sampling
In order to gather relevant data, a sample of 40 participants was recruited. The inclusion criteria were expertise in marketing in the hospitality sector. The participants were randomly selected from master students and employed professionals of different rank. The demographic characteristics were not included in the survey; therefore, the proportion of male and female respondents, as well as their ages and occupation, was not registered.
Procedure
All the selected participants were sent an email explaining the purpose of the research and an invitation to participate in the study. After the initial reply, the participants were sent a questionnaire that included 45 questions. The survey included a brief description of eWOM and comprehensive instructions about how the survey should be completed. All the results of the survey were entered into a Microsoft Excel spreadsheet and stored on a personal computer protected by a password. As the survey did not include any demographical data, IRB approval was not required.
Instrument
The instrument for data collection was developed by the research group assisted by the supervising professor. The questionnaire included 45 Likert scale items asking the participants to select the degree of how the listed factors impacted eWOM. The survey questions are provided in Appendix A of the present paper. The instrument has very high face validity. Other types of validity and reliability were not tested.
Measures and Data Analysis
The literature review identified seven factors that can potentially affect eWOM in the hospitality sector in the UAE. These factors were identified as independent variables, while eWOM was defined as an independent variable. The variables were measured using the mean of the following questions (see Appendix 1 for questions):
Table 1. Independent variables
The data were analyzed using regression analysis of all the independent variables against eWOM in Microsoft Excel.
Results
The final dataset included information about the dependent and independent variables. The quality and service variable was found to be the most influential on eWOM (M=3.76, SD=0.91), while media interaction was identified as least impactful among the seven independent variables (M=3.64, SD=0.91). The descriptive statistics of all the variables are presented in Table 2 in the descending order.
Table 2. Descriptive statistics
Pearson’s correlation analysis was run to identify correlations between the variables. The results of the correlation analysis are presented in Table 3 below. The analysis demonstrates that the correlation coefficients of the independent variables are very high (0.786-0.979). In regression analysis, independent variables must have a low correlation of less than 0.5 in order to obtain an accurate model (Flatt & Jacobs, 2019). Therefore, the high positive correlation between the independent variables reduces the accuracy of the model.
Table 3. Correlation analysis
The effect of the independent variables on eWOM was measured using multiple regression. The analysis revealed that all the independent variables have a significant impact on eWOM. The results of the regression analysis are provided in Table 4 below.
Table 4. Regression analysis results
Therefore, the final regression equation was the following:
Discussion
General Considerations
The research results revealed that there is significant evidence to support all the seven hypotheses stated in the literature review section of the present paper. In other words, compliance and entity improvement, marketing and advertisement, customer engagement, quality and services, reliability and commitment, excellence and credibility, and interaction with media have a significant impact on eWOM in the hospitality industry in the UAE. The results are consistent with the current body of literature reviewed in the present paper (Erkan & Evans, 2016; Farías, 2017; Martínez et al., 2020; Moran & Muzellec, 2017; Pourfakhimi et al., 2019; Wu & Lin, 2017; Yang, 2017). This implies that the findings of the previous research concerning factors influencing eWOM are applicable to the hospitality sector in the UAE. The present paper also adds to the current body of knowledge by closing the gap identified in the literature review section. In particular,
The results were peculiar, as all the coefficients for the regression analysis were approximately equal to 0.14. According to McClave et al. (2018), coefficients in the regression analysis demonstrate how the dependent variable increases with an increase in the independent variable. Since the coefficients are the same, all the variables have a similar impact on the dependent variable. In other words, all the factors discussed in the present paper have a similar impact on eWOM. This suggestion can be confirmed by the descriptive statistics demonstrated in Table 2. Observation of summary statistics reveals that even though there are differences in means and standard deviations, they are small and should be insignificant. However, ANOVA analysis is required to confirm this argument.
At the same time, the equal coefficients may mean a problem with the methodology. As it was mentioned in the previous section, the correlation coefficients of the independent variables are very high. This may mean that the measurements are biased, and use methods are impractical (Flatt & Jacobs, 2019). Additionally, high correlation coefficients may mean that the variables essentially measure the same phenomenon (McClave et al., 2018). Such results may also point at issues with measuring the dependent variable. Therefore, the results of the present research should be used with caution.
Implications for Practice
The findings of the present research have significant implications for practice. In particular, it provides information for marketers in the hospitality sector in the UAE about which factors are important to encourage eWOM among tourists and other customers of the hospitality industry in the UAE. The research suggests that all variables have the same impact on eWOM, and there is no particular factor that should be focused on by the marketing professionals. Even though the quality of service seems to have a greater influence on eWOM, than interaction with media and some other factors (see Table 2), these changes are minor and eWOM needs to be addressed in its complexity.
The findings are consistent with TPB. When potential customers are choosing a destination, they perform a planned behavior that can be affected by attitude, behavioral intention, subjective norms, social norms, perceived power, and perceived behavioral control can affect purchase intentions (Ajzen, 1991). Perceived trustworthiness of the source of eWOM can improve attitude towards behavior, which is reflected in the present study. Engagement in discussion forums can influence the social and subjective norms of a person, making customers believe that the behavior is socially acceptable and approved by peers. Perceived behavioral control and perceived power can be affected by a fair balance of prices and services, as well as feedback from peers. Adequate commercials may influence behavioral intentions. Ajzen (1991) did not mention which factors of the TPB are more motivating than others, which is consistent with the findings of the present paper. Therefore, all the predictors of positive eWOM intentions have the same weight when explaining the dependent variable.
Importance
The findings of the present paper are expected to facilitate the recovery of the hospitality sector in the UAE. According to Abbas (2020), the industry is experiencing a significant recession due to the pandemic. The entrepreneurs should encourage eWOM to increase sales and win as many customers as possible. The World expo planned for October 2020 is expected to revitalize the industry (Abbas, 2020), and finding of the present research can help the sectors. Any form of support to the industry is vital for the UAE economy, as tourism and hospitality account for more than 4.6% of the country’s GDP (US-UAE Business Council, 2019).
Strengths and Limitations
Even though the study produced significant results, there are several limitations that can be a source of bias. First, the findings of the present research are applicable only to the hospitality industry in the UAE. Generalizations should be made with caution, as the country has its distinct cultural characteristics that may have its effect on findings. Second, the sample size is relatively small, which may affect the reliability of conclusions. The majority of reviewed studies had a sample size between 200 and 300. Finally, there is information available concerning the assessment of the validity and reliability of methods. Some of the questions in the instrument used to measure the variable may be confusing to an unprepared responder. Therefore, the research may have produced biased results.
Even though the research design has some flaws, it also has strengths that should be acknowledged. First, the study provides a holistic assessment of the factors that may influence eWOM. Every variable mentioned in the current body of knowledge is assessed in the present paper. Second, the research utilizes TBP to explain the findings, which has not been done before. Therefore, the present paper is a significant addition to the current body of knowledge.
Recommendations for Future Research
Future research needs to address the limitation of the present study. In particular, future research may look forward to confirming the findings with a larger sample. Moreover, the research can be expanded to other countries and regions to understand if cultural differences have an influence on eWOM. Additionally, future research should validate the tool used for the present paper or create another one to make the findings more reliable. Finally, researchers should examine every factor in detail and discuss the exact practices that positively influence eWOM.
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