Universität Hamburg Master of International Business Administration INTERNET MARKETING STRATEGIES OF THE TRAVEL INDUSTRY:

Transcription

1 Universität Hamburg Master of International Business Administration MASTERARBEIT Master Thesis INTERNET MARKETING STRATEGIES OF THE TRAVEL INDUSTRY: The Implications of Culture and Consumer Behavior on Social CRM Erstprufer: Prof. Dr. Dr. h.c. Bodo Abel Zweitprufer: Dr. Stephan H. Schmucker Von: Muriel K. Sobata

2 Executive Summary CRM (CRM 1.0) is about more than simply managing customers and monitoring their behaviors because it can change a customer's relationship with a company and increase revenues. The implementation of CRM can have an array of significant benefits. A CRM definition is given, as well as strategy, framework, implementation stages, building blocks and evaluation methods are detailed. Since the early 2000 s customers began to change the business ecosystem, evolving into the social customer. When purchasing inherently intangible travel products, travelers (social customers) want lots of reliable information at all stages during the decision making process to reduce the risk of the intangible product. By using social media travelers are deciding not only on destinations but most other decisions as well. In the customer-focused ecosystem, traditional CRM has become insufficient and an outdated method to support and propagate new business, hence the emergence of Social CRM (CRM 2.0). The new generations and social customer engagement scenarios are also discussed. In contrast to traditional CRM, Social CRM shifts the concentration to customer engagement and collaboration to become more customer-focused. A social media strategy is not the same as a Social CRM strategy. Instituting a Social CRM strategy will help companies reach customers sooner in the buying process. The key difference between CRM and Social CRM is not based on managing data, but rather creating a strategy for customer engagement. The Social CRM Process model (Fig. 4.7) supplies a good idea of how it can function. For truly effective international marketing strategy and Social CRM, being aware of and understanding the impact of culture on consumer behavior remains crucial. The case study examines Social CRM software from two providers in comparison to Western concepts. The theoretical framework detailed in this thesis encourages understanding of the relationship implications between culture, consumer behavior and Social CRM. Keywords: internet marketing, social CRM, travel industry, social media, CRM, social customer, consumer behavior, Japan

3 Acknowledgements For their contributions and quick replies to my case study research inquiry (Section 6.7 and Appendices B D) of my thesis case study I would like to thank Hitachi Solutions Inc. and Mr. Koichi Kida for information about ReBee. Also, I thank Plus-Alpha Consulting Ltd. and Mr. Araki for information about CustomerRings. With their assistance a valuable contribution has been made to Social CRM.

4 Table of Contents Page Executive Summary Dedication Acknowledgements Table of Contents List of Figures List of Abbreviations I II III IV VII IX Introduction 1 CHAPTER Background Research Rationale Research Aim, Question & Objectives Key Definitions Research Method & Materials Limitations Thesis Structure 8 Literature Review 9 CHAPTER Customer Relationship Management (CRM) CRM Definition CRM Strategy CRM Framework CRM Building Blocks CRM Performance Evaluation 16

5 CHAPTER The Social Customer The Social Traveler The Evolution of the Customer Focused Ecosystem Defining the Social Customer The New Generations Social Customer Engagement Scenarios 29 CHAPTER Social Customer Relationship Management (Social CRM) Social CRM Definition Traditional CRM vs. Social CRM Tools of the Trade Social CRM Strategy Social CRM Process Social CRM Challenges CEO Support Risk & Metrics Perception Gap Customer Engagement 43 CHAPTER Travel and Tourism as a Product Consumer Behavior in the Travel Industry Traveler Decision Making Processes and Models Traveler Behavior Typology Electronic Word-of-Mouth (ewom) 53 Case Study Application: Japan 57 CHAPTER Culture Analysis 57

6 6.2 Consumer Behavior Travel Behavior Social Media (SM) WOM and ewom State of Social CRM Research Inquiry Hitachi Solutions Inc. (ReBee) Plus-Alpha Consulting Ltd. (CustomerRings) 71 Conclusion 73 CHAPTER Summary and Conclusions Suggestions for Future Research 77 Appendices 78 A: Figures 79 B: Research Inquiry (English translation) 101 C: Research Inquiry(Original in Japanese) Hitachi Solutions Inc. (ReBee) 2. Plus-Alpha Consulting Ltd. (CustomerRings) D: Social CRM System Information (In Japanese) ReBee 2. Customer Rings References Versicherung (Declaration of Authorship) X XV

7 List of Figures Figure Page 1.1 Social CRM Venn Diagram Thesis Structure Key CRM Strategy Elements How CRM Strategy Enhances Marketing Strategy A Conceptual Framework for CRM Strategy CRM in Different Areas of the Business General Function of a CRM Performance Measurement Framework Three Dimensions of the CRM Effectiveness Construct The Conversation Prism The Customer Focused Ecosystem Company Outputs vs. Social Customer Expectations: Present State 3.4 U.S. Millennials Will Outnumber Non-Millennials by 22 Million by Percentage of Consumers with Accounts on Social Media The Social Technographics Ladder Social Customer Engagement Scenarios Customer Centric Social CRM Evolution of CRM to SCRM Changes in Customer/Company Relationships Social CRM Changes Marketing From Social Media Projects to Social CRM Strategy Social CRM Strategy Steps Social CRM Process Social Media Challenges 90

8 4.9 Tying Social Media Objectives to Business Objectives The Perception Gap Generic Characteristics Distinguishing Services From Goods Factors Influencing Consumer Behavior Travel Buying Behavior Process vs. Consumer Buying Process Tourist Typologies Traveler Rated Importance of Internet Access Typology of ewom Channels Hofstede s Cultural Dimensions: Japan Typical Japanese Travel Agency Case Study 14.1: Japanese Tourist Behavior Social Media Popularity in Japan Social Media Technographic Segmentation (Japan compared to China and India) 6.6 Google Trend Analysis of Social CRM in Japan (Feb Dec. 2012) Social CRM Road Map Contacted Companies Offering Social CRM Software in Japan (as of Jan. 2013) ReBee System Process CustomerRings Approach Pyramid 100

9 List of Abbreviations B2C CRM C2C Et al. Etc. ewom Ibid IRTS ROI SaaS SCRM SM SNS UGC WOM Business-to-consumer Customer Relationship Management Consumer-to-consumer et aliae (and others) Et. cetera, so on and so forth Electronic word-of-mouth Latin, short for ibidem, meaning the same place International Recommendations for Tourism Statistics Return on Investment Software as a service Social Customer Relationship Management Social Media Social Networking Sites User-generated content Word-of-mouth