Abstract:
The purpose of this study was to investigate the influence of electronic word of mouth on
purchase decision of hotel customers in selected hotels in Arusha City Council. Specifically the
study intended to investigate the electronic word of mouth platforms used in hotel industry, to
analyze the electronic word of mouth determinants that influence customer purchase decision
and to find out the challenges faced by eWOM hotel customers in making purchase decision.
Very little is known on matters concerning the influence of electronic word of mouth in hotel
industry in less developed countries such as Tanzania compared to other developed countries.
Therefore this study was conducted to fill this gap. This study adopted a cross sectional research
design utilizing, quantitative research approach with a total sample of 200 respondents from 5
different hotels in Arusha city council. Convenience sampling was used in this research because
the availability of sample was rare and also costly. Data were collected through questionnaires
as a tool for data collection. The quantitative data was analyzed using descriptive statistics in
the statistical package for social science (SPSS) version 20.0 and the results were presented
in tables of mean, mode, median and standard deviation as well as percentages. The study
findings indicate that facebook and instagram are the most leading platforms used for reviews
by hotel customers in most hotels in Arusha city council. Furthermore the study found that
source expertise and homophily is the most influential determinants considered in making
purchase decision in hotel industry lastly advise seeking from relatives and friends are the most
challenges faced by hotel customers during decision making. The research study ended up on
proposing suitable methodologies to be received so as to improve web-based life organize as
they are utilized for social cooperation and for advertising purposes. In any case data from
friends and relatives is believed more and the hotel customers are bound to buy services from
hotels that their companions have prescribed.
