Introduction
In recent years, there has been a growing interest in the concept that a leader’s actions can have a significant impact on the activities of those who follow them. According to Noda (2017), existing evidence suggests that a leader’s actions can significantly influence whether followers comply with requests or orders. This study aims to determine the extent to which a leader’s actions influence the activities of those who follow them. In particular, the research aims to investigate how a leader’s actions might influence the degree to which followers comply with requests or orders. The outcomes of this research will contribute to the understanding of the significance of a leader’s behavior in influencing followers’ actions across various industries, particularly in the hotel sector.
Pricing Behavior
In the world of competition, marketing, and leading industry economics, various definitions of leadership have emerged, depending on the industry and the status one holds within it. First, in the case of beverages, both Pepsi and Coca-Cola are often referred to as leaders in the sector (Khan, 2021). They are the most dominant firms in the field, and their actions are directly related to those of other companies shadowed by this major corporation (Halabo, 2022).
The other scenario is the issue of technology and marketing, where a firm like Amazon governs and affects other companies underneath it. Therefore, a leader in the statement signifies that a highly dominant corporation with a significant market share may affect the activity of small industries in the same industry. For instance, adjustments in pricing are one of the most influential leadership decisions a corporation can make. Follower organizations may follow the context when a leading firm chooses to raise its prices, as the leading company is well aware of the market’s dynamics, potential risks, and market reactions to such decisions.
On the other hand, followers are typically small or developing enterprises with a relatively minimal impact on their respective industries. This phenomenon, for example, is discovered when a firm is a start-up or has very few clients. The follower’s initial talent is to follow the lead of company leaders, thereby allowing them to make informed choices (Bligh & Riggio, 2017). In this scenario, the follower strives as hard as possible to implement some of the leader’s choices and incorporate them into their firm. For instance, in the case of a price rise, followers may tend to lower their prices to enter the market and compete with major corporations (Abson, 2021). This action is not always the case, as some firms end up bankrupt due to the rising cost of manufacturing, as they do not benefit from economies of scale like leading corporations. Therefore, in the long run, their prices are profitable for them to retain.
The first influence of the relationship between the leader and the follower is in pricing their goods and services. Companies with a very significant market share, for example, in the hotel industry, tend to significantly impact the entire industry’s price. In many hotels, tourists or consumers choose hotels that offer relatively good quality services and are widely renowned (Wisman, 2021). These are the major companies in the sectors, but other smaller enterprises in the hotel industry also have to survive.
To ensure they maintain a market share, they also enhance their quality and advertising. These smaller organizations also tend to cut the pricing of their services to counteract the rivalry from the other big hotels. Decreased prices raise demand; consequently, smaller hotels start to pose a threat in the market, impacting the prices of larger, well-established enterprises (Docker & Jørgensen, 2018). The growth in price competition causes big corporations to either decrease their prices or boost the value of their services to meet the price they are offering. Therefore, in terms of price, leaders can influence their followers and vice versa.
Marketing Behavior
Another area in which the firm that comes in first and the company that follows it both have an impact on each other is strategic marketing. Strategic marketing, particularly in areas such as advertising, publicity, and customer interactions, is one of the primary focus areas. In this area, a counteractive behavior is exhibited by one business against another firm when one company behaves confidently (Parra & Hirsch, 2017). Regarding the hotel sector, variations in marketing approach might affect the company’s bottom line (Christopher, 2018).
The market-leading firm, Marriott Hotels & Resorts, makes significant investments in international advertising, which in turn affects the behavior of the company’s competitors. For example, in 2013, Marriott Hotels & Resorts spent $917 million on worldwide advertising, placing them in the second position among all other hospitality companies. Compared to the amount they spent in 2012, which was $813 million, this is a 12.8 percent increase.
Due to the hotel’s ambitions to expand, there was an increase in the amount of money spent on advertising. In 2014, the business intended to launch around 75 brand-new hotels (Tretyakova et al., 2022). This phenomenon is conclusive evidence that when one corporation behaves in a particular manner, there is a corresponding response from another company in the form of counteractive conduct.
Competitive Behaviors
The competitive market is one of the most influential places because it allows both leaders and followers to influence one another in shaping their competitive structure and plans. Competition in the market is nothing new, especially in the hospitality industry, where many hotels vie for a limited number of consumers (Prihatin & Hartini, 2017). In most instances, these businesses collaborate on the planning and tactics each develops to enter and maintain their market dominance. Some market leaders closely monitor a smaller company, known as a follower, to ensure they do not lose their position as the dominant players in the market (Drobak, 2021). These market leaders closely monitor their followers’ pricing, service delivery, and advertising practices.
The influence of followers can be apparent when the leader chooses to provide higher-quality services than the followers do, thereby maintaining their position as the market leader. This phenomenon explains why some upscale hotels offer complimentary services, while others bundle these services with the hotel’s other offerings (Sundkler, 2019). The facilities include parking, a gymnasium, and designated camping areas. These services help ensure that they stay competitive with their competitors in terms of market share and the ideas they implement in the market.
Theoretical Analysis
Behavioral Dynamics
The theory of behavioral dynamics posits a relationship between leaders and followers within the hotel industry. According to this hypothesis, the leader’s actions influence those of their followers, and the followers’ actions, in turn, influence the leader’s actions (Kunkel, 2021). This situation reflects a dynamic connection, which means it constantly evolves in some way.
The leader and the follower influence each other’s conduct, and this influence shifts over time. The concept of behavioral dynamics is significant because it enhances the understanding of the hospitality business’s functioning (Wisman, 2021). The hospitality business is a complex system, and the theory of behavioral dynamics contributes to understanding how its various components interact.
Behavioral dynamics describes the nature of relationships and the impact that leaders and followers have on one another. This behavior can be observed within companies, particularly in various fields and departments (Linnebo, 2018). As the price reflects the level of demand from the company, the relationship is initially perceived as highly competitive due to its pricing.
Second, regarding marketing techniques, some hotels may collaborate to promote the wonderful aspects of their nation or the location in which they are situated. This action allows them to bring more people to the area (Butcher, 2022). If these hotels are located in the same area, they can adjust their advertising to ensure that they receive the maximum number of customers possible. As a result of the prevailing behavior, the nature of the connection is referred to as dynamic because it shifts not only by time but also in response to the departments involved.
Complementarity
The complementarity theory describes the phenomena of successful economic collaborations between hotel companies. The theory states that the most effective partnerships are those in which the strengths of the leaders and followers complement each other to strengthen the story. This situation results in a mutually respectful and trustworthy relationship. The hypothesis has various consequences for the partnership structures of hotel industry businesses (Hall, 2021). Initially, businesses need to understand the characteristics of their partners and select those that align with their own.
Second, businesses must cultivate a culture of mutual respect and trust between the leaders and followers of each partner business (OpenStax, 2022). Lastly, businesses should regularly evaluate and alter their collaborations to ensure that the respective capabilities of each partner continue to complement one another (De Backer and Rinaudo 2019). Complementarity theory provides a framework for comprehending the dynamics of effective commercial partnerships. By appreciating the significance of complementary capabilities and mutual respect, hotel firms may develop relationships with a higher likelihood of success.
Conclusion
Leaders and followers in the same industry have a significant influence on each other’s actions. Some of the steps taken by followers are dictated mainly by the leaders; however, the followers also influence some steps taken by the leaders. There is no doubt that, according to the two theories—the dynamic theory and the complementary theory—the relationship is dynamic and complementary, as discussed above.
The majority of the time, leaders tend to shape the behavior of their followers due to market conditions or to remain marketable in the industry. Sometimes, a leader and a follower may develop strategies that complement each other’s operations to maximize profitability and avoid harming one another. The relationship grows between regional businesses when the two parties work together. It places them in a better position than their competitors in the region.
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