The Influence of Electronic Word of Mouth on Purchase Decision of Hotel Customer:

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.