College Papers

CHAPTER found repeatedly to have the impact on

CHAPTER
2

LITERATURE
REVIEW

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

2.0 INTRODUCTION

 This section discusses on the
literature review of this study.  A literature
review can be defined as a documentation of the published work from secondary
sources of data in the areas of specific interest to the researcher and it is
to ensure no important variable that has in the past been found repeatedly to
have the impact on the problem is ignored (Sekara, 2006).  This chapter studied those components that
support the research by adopting the previous studies that had been conducted
by research expertise.  The review of the
literature was required in order to support the theoretical framework, develop
hypothesis and methodology.  These
chapters also reviewed the literature of those three independent variables
which are the value of social media, perceived effectiveness, and reference and
their relationship with the dependent variable of this study which is customer
purchase decision on a holiday destination.

2.1 SOCIAL MEDIA

Social media is a form of electronic
communication such as websites for social networking through users creates
online communities to share ideas, information, personal messages and many
more.  It is a sort of online media where
people are chatting, dealing out, criss-crossing, taking
part, and bookmarking.  According to
(Kaplan and Haenlein, 2010), social media is put into words as “a group of
Internet-based applications that build on the ideological and technological
foundations of Web 2.0, and that allow the creation and exchange of User
Generated Content”.  There is a wide heterogeneity
of social media such as YouTube, Facebook, Twitter, Instagram and countless of
it.  Because of this social media, there
is the actuality of the businesses.  Contemporary,
the business of all sizes is comprising social media marketing as a moderately
priced form of business promotion, struggling with the question of how to get
in on what pops up to be an especially viral way to get their message and their
products make known.

2.1.1
INFLUENCE OF SOCIAL MEDIA

The influence of social media is a marketing term that
represents an individual’s aptitude to affect other people’s thinking in the social
online community.  Social media can
influence people mind because nowadays people depend more on social media.  Social media has come up with millions of
people the chance to generate and ration out content on a scale hardly imaginable
a few years ago.  According to Daniel M.
Romero, Wojciech Galuba, Sitram Ansur, and Bernardo A. Huberman (2011), given
the widespread generation and using up of content, it is natural to target
one’s messages to highly connected people who will spread them further in the social
network.  This is especially the case on
Facebook, Twitter, Instagram which are the most rapidly growing social networks
on the Internet and thus the focus on advertising companies and celebrity’s
keen to utilize this vast new medium.  As
a result, thoughts, school of thoughts, outcome, and act of assistance compete
with all other content for the insufficient attention of the user community.

2.1.2 FACEBOOK

Facebook
has been one of the most crucial social mode of the former decade.  Although it was only available to the public
in 2006, Facebook reports thus far serving one billion monthly active users eventually
at the end of 2012 (Facebook, 2012).  Facebook
is one of the application that links people the entire globe.  It can straight away connect all people
around the world and it is quick, effortless, and within easy reach of.  Whoever that desired to hook up with their
friends, family members, business partners or even the Eskimos in the South
Pole can use Facebook even though one of them are in a great distance.  This eloquent tool can chat online, purchase
stuff online, or even put a commercial about lost people on the Facebook.  The possibilities are unlimited.

2.1.3 TWITTER

 

Twitter is a free social networking that can link
people all around the world.  People can
post video, pictures and notify their status so people know what they are doing
all the time, anywhere and anytime.  According
to (Twitter, 2016), Twitter had more than 319 million monthly active
users.  On the day of the 2016 U.S
Presidential Election, Twitter manifested to be the biggest sources of breaking
news, with 40 million election-related tweets sent by 10 P.M “Eastern time”
that day’s (Isaac, Mike, and Ember, 2016).

 

2.1.4 INSTAGRAM

 

Instagram
is much the same to Facebook and Twitter. 
It is one of many social media relevance that the internet population is
using on daily basis.  People can share
their photos and videos from a smartphone. 
According to (Instagram, 2015), when looking under the FAQ on
Instagram’s website, the application is described as a pleasure and eccentric
way to expose routine life with others through a chain of photos or
videos.  Anyone who wants to do their
business can use Instagram to market their products and services because
Instagram is the quickest ways to tell people about something latest.  When people post a photo or video on Instagram,
it will be exhibited at home and their profile.   It is the straightforward ways to market new
products and services.

2.2 INTERNET

Internet technology interrupted the traditional
business models of many industries, including media, money matters, and particular
and this has had great impact in the tourism industry (Howison, Finger, and
Hauschka, 2014).  The Internet and the
new coming up social media alter traditional marketing and communication way of
approach used in the tourism industry.  The
impact of the internet on the way of doing business is so booming.  It lifts up geographical barriers and supplied
users with new forms of interactive media. 
This is substantiated by Loda (2014) who stated that the digital
revolution had already undergo changes almost everything about how business is managed
in the tourism industry.  The tourism
industry has greatly benefited from the new chance offered by the Internet.  Luliana et al. (2013) contended that the Internet, especially
through the social media platform, has changed how marketers and consumers keep
in touch. They add that the Internet has many distinct characteristics such as:

–  The provision
and interactivity of information when required ?


 Cheap space of huge amounts of information in unlikely virtual locations ?


 Low-priced and strong means of exploring and spreading of information ?

–  Ability to serve
as a deal approach ?

–  Low setting up
and admission costs for sellers ??

Al Kailani and Kumar (2011) focuses onto that one of the
main benefits of the internet is that it allows marketing practitioners to attain
a worldwide customer segment, so that potential customers and real customers
can explore, pick, and buy products from suppliers around the world. Loda (2014)
contends that the Internet is nearly all studied as a stand-alone medium, not
in context with other media. The Internet is more frequently contrasted with television
and print publishing.  One differentiation
suggested that the Internet is more useful than print medium in that it obtains
more extension and it prompts to a greater advertising effectiveness.  Because of the high-risk decision in selecting
holiday destinations, the Internet was ranked as the most credible information
source.

 

 

2.3 PURCHASE
DECISION

People,
especially under the age of 35, tend to follow the recommendations from their
friends online for destinations, services, and products (Pick, 2013).  According to Law, Leung and,  Buhalis (2009), the supplement that more
customers are now purchasing holiday destination package through websites and
the purchase intentions are directly influenced by the image of the website.  Many tourism organizations and hotels are
using social media to market their business. 
They promote on their Facebook pages and some hotel is now offering
room-booking technology amounting to a considerable increase in sales (Strauss
and Frost, 2014).  Philip Kotler (2009)
states that the final purchase decision may be influenced by two factors which
are negative feedback from other customers and the level of motivation to
accept the feedback.  At the enjoy,
advocate and bond stage, tourism businesses can engage with customers through a
relatively new social media platform of geo-location as Foursquare and Loopt
where customers are encouraged to broadcast their whereabouts (Chan and
Guillet, 2011).

2.4 HOLIDAY
DESTINATION

A
holiday is a period of time when people go out away from their home no matter
how far or near the places it is.   The
holiday decision-making process described the stages customers go through
whenever making holiday-related purchases such as package holidays,
accommodation, short excursions, destination tours, flight tickets, and car
hire (Pizam and Mansfield, 2009). 
According to Holloway (2002), the holiday is a temporary movement of
people outside their normal place of residence and work, together with the
facilities provided to cater for those visits and the activities undertaken
during they stay in those places.  There
are many places in this world for holiday for examples, Dubai, Turkey, Japan,
Korea, Singapore or local place in Malaysia such as Peninsular Malaysia which
are Kuala Lumpur, Melaka, Langkawi or some places in Sabah and Sarawak.

2.5 VALUE
OF SOCIAL MEDIA

Many
customers used social media to gain more knowledge and get information around
the world.  A study by Google (2012)
reported that 70% of customers started planning a trip without knowing their
destination.  Social media give a big
impact on customers because nowadays everything can be searched using social
media.  Some social media platforms have
special tools that help with inspiration and generating new travel ideas.  According to Fotis et al. (2012), 45% of
prospective travelers checked social media website when searching for
destination and some 42% sought ideas on excursions and other leisure
activities.  The customer started
reviewing videos, photos, and comments from other people when planning their
holiday (Mintel, 2013).  The customer
also visited a number of social networks, forums, blogs, accommodation and
travel agents’ website (Amadeus, 2012). 
Social media give customers the idea that they never imagine and give
customers a lot of information.

2.6 PERCEIVED
EFFECTIVENESS

Effectiveness
has been operationalized in a number of different ways.  Some researchers have measured it as a
generalized sense that individuals can influence the political process
(Locatelli & Holt, 1986), where others have measured it as a belief that
specific, material goals of the group can be achieved.  According to Kelly & Brein- linger, 1995;
Schofield & Pavelchak, 1989; Sturmer et al., 2003; Wolf et al., 1986, among
those who operationalized it in terms of the specific goals of the group,
effectiveness has been interpreted variously as the sense that the individual
can contribute successfully to achieving the goals.  It is common to think that social media is a
marketing tool that can attract customers because social media is the fastest
ways to interact with people for examples, customers, seller, retailer,
intermediaries and many more.

 

2.7
REFERENCE

Customers
always refer to social media when their want to search something, buy
something, to communicate with others and so on.   Majority of customers make a research before
their want to go for holidays because that is the easiest ways to find a lot of
information.  They refer to social media
and look for other people experiences to know about the place that they want to
go for holidays.  The feedback about the
services and the products can influence people mind.  Safko (2010) in a simple definition that
social media is the media people use to be social.  The social media terminology is made up of
two parts.  The first part, social,
refers to the instinctual need of a human to connect with other humans and this
and this has been done in one form or another since the beginning of human
species.  People need to be around and
take part in the groups of similar like-minded people where they can feel at
home and comfortable to share their experiences, ideas, and thoughts.  The other part, media, refers to the means
used by people to connect with other people. 
Safko (2010) further that whether they are bells, the telegraph, drums,
written words, the telephone, television, radio, video, mobile phones,
websites, audio, or photographs, the technology used by people to make that
connection is what media is.

 

 

 

 

 

 

 

 

 

 

2.8
RESEARCH FRAMEWORK

            According
to Sekaran (2011), the theoretical framework was logically developed, describes
and explained network of associates among variables of interest to the researcher.
 It includes the dependent variable (DV)
and independent variable (IV).  In the
other word, it influences the relationship between DV and IV.  The purpose of this study, the researchers
have adopted and adapted the framework to suit the need of the study.  The theoretical framework for this study
comprises of dimensions of the influence of social media toward customer
purchase decision on a holiday destination. This theoretical framework will aid
in answering the core research question and provide a deeper understanding of
the study. The knowledge derived from the theoretical framework is going to be
applied to the empirical part of the research by designing and executing the
research methods used in the study. The study structure and theoretical framework
is further illustrated in Figure 2.0.