Paradigm in Traditional Marketing: Social Media & Gen Y

Running Head: PARADIGM IN MARKETING: SOCIAL MEDIA 1

Paradigm in Marketing:

Social Media Applications and Generation Y

Toni L. Gardner

University of Central Florida

Rosen College of Hospitality Management

Technology Applications for Management Decision Making

Spring 2010

Dr. Khaldoon Nusair


Paradigm in Marketing:

Social Media Applications and Generation Y

Purpose

To determine whether the use of social media applications has a positive impact on online

consumer relationship management, customer satisfaction, and trust as Generation Y becomes

the majority of the consumer base.

Design/Methodology/Approach

A review of literature to examine the role that social media plays in customer relationship

management, customer satisfaction, and trust as they relate to the Gen Y consumer. Data

collected from student sample from a southeastern university using a voluntary survey.

Research limitations/implications

The literature specific to the use of social media technology applications as it relates to consumer

relationship management, satisfaction, and trust specifically involving the Generation Y

consumer is limited therefore; the intention of this paper is to provide a foundation for future

research.

Originality/value

The literature specific to the use of social media technology applications as it relates to consumer

relationship management, satisfaction, and trust specifically involving the Generation Y

consumer is limited therefore; the intention of this paper is to provide a foundation for future

research.


1. Introduction

Throughout the last few years, the overall trend in businesses worldwide has been the

adoption of new marketing strategies that utilize the ever-advancing technology applications

available today. One of the foremost technology applications used in business promotion has

been the use of social media. Boyd & Ellison (2007) define social media as Internet applications

that allow users to form connections with companies or other users that would not have been

formed otherwise. The rate at which these social connections are being formed is unique and

therefore deemed social networking rather than the more basic social interaction that has existed

for years on the web (Golbeck, 2007). There are two components that make up the foundation of

social media: Web 2.0 and User-Generated Content. The Web 2.0 phrase was coined in 2004 to

describe the paradigm in the usage of the World Wide Web. At this time, the web was evolving

from a platform in which people added static content to one containing collaborative content that

is consistently modified by all participating users. User-generated content refers to the

modification and alteration of different social media by end-users and the multiple usage forms

of social media that exist (Kaplan & Haenlein, 2009).

Studies (Kah, Vogt, & MacKay, 2008; Bonn, Furr, & Susskind, 1999) found that Internet

users are likely to have positive attitudes about technological advancements and users are more

likely to be college educated and under the age of forty-five. Additionally, Bonn et al (1999)

found that Internet users were more likely to stay in commercial lodging and spent more money

during their travels. Consequently, the focus of this study will be on Generation Y.

Beldona, Nusair, & Demicco (2009) define a generational cohort as a group of

individuals sharing similar experiences and common characteristics unique only to them. Gen Y


or the “Millennials” refers to the coming of age generation of young adults born between 1977

and 1998. The birth of social media and the significant role it plays in society today is a direct

response to the growth and impact of Gen Y. Social media creates a different dimension of

business to consumer interaction that allows businesses to interact with many consumers at the

same time through the use of technology applications.

There are many benefits that are associated with the use of online social media like social

consumer relationship management (Social CRM) and the opportunity for businesses to enhance

consumer satisfaction and trust. Previous studies indicate a shift in consumer purchase behaviors

(Stockdale, 2006). Customer relationship management (CRM) is used by companies to identify,

attract, and build loyalty with consumers to a particular brand or product. Traditionally, CRM

included attracting new profitable consumers, maximizing the profitability of existing

consumers, and retaining each (Goel & Mousavidin, 2007). During the trend away from face-to-

face consumer relationship management, it is imperative that companies understand the problems

involved with managing consumer relationships online and implement the appropriate strategies

to maintain consumer trust and satisfaction. By utilizing social media applications, businesses

have the opportunity to enhance customer relationships and maintain a communication channel

with past, present, and future customers.

It is imperative during these economically troubling times that companies utilize all

appropriate distribution channels in the most efficient and appropriate manner in order to earn

the highest yield on their advertising investments. Major companies are just now exploring the

use of social media in their organization. This study will focus on the advantages of social media

applications and the implications that social media has on the lodging industry. Because the


number of consumers and businesses already participating in social media applications is

extravagant, it is expected that social media applications will become a common inclusive in

every company’s marketing plan. Therefore, it is the intent of this paper to conduct a thorough

overview of the social media applications and the potential implications for major hotel

companies. Specifically, this study will investigate the following questions:

1. What role does social media play in customer relationship management, customer

satisfaction, and trust?

2. What potential problems are involved in social media applications? What is important

for companies to understand when implementing social media marketing strategies?

2. Literature Review

2.1 Social Media

Since the 1970s, national digital information exchanges were

in place. Arpanet protocols were developed in the 1980s and

web protocols emerged in 1989. However, the average

consumer was not introduced to the Internet until 1993 with

the introduction of Mosaic. During the growth of the Internet,

very few marketing practices existed that utilized this

technology as a means of interactive marketing; for example,

less than $200 was used for Internet advertising in 1997

(Larsen, Urry, & Axhausen, 2006).

Figure 1: Timeline of the launch dates (Source: Loda et al, 2009)


Social media can be divided by the application usage and type. Kaplan & Haenlein

(2009) suggest that there are six major forms of social media: collaborative projects, blogs,

content communities, social networking sites, virtual game worlds, and virtual social words.

These six forms identify a more general categorization of the social media applications while

Chul, M., Miller, A, & Roberts, R.P. (2009) categorize social media technologies into five

categories that are based on more of a managerial perspective. These five categories include

broad collaboration, broad communication, collective estimation, metadata creation, and social

graphing. For the purpose of this study we will investigate several major social media

technologies, identify their categorization, and ascertain the implications each has on customer

relationship management, consumer trust, and satisfaction.

2.2 Social Media Performance

This study will focus on the following leading social media technologies: Facebook,

Twitter, Blogger, YouTube, Flickr, Myspace, Second Life, UStream, LinkedIn, and Trip

Advisor. In terms of attracting new users, social media is the fastest form of Internet marketing.

Figure 2 Growth of Leading Social Media Sites During 2009.


1. Facebook

Social networking sites allow users to create profiles, invite friends, send emails and instant

messages, and post video, photo, audio, and blog content (Kaplan & Haenlein, 2009). Founded

on February 1, 2004, Facebook is the largest social network with over 350 million users. For the

week ending January 30, 2010, visits to Facebook accounted for 49.23% of the overall number of

visits to all of the top twenty social networking websites combined (Hitwise 2010). Facebook is

the biggest social media technology today. As of February 2010, Facebook had more than 350

million active users and 50% of those users log on to Facebook each day. In the last year

Facebook visits have increased by 194%. Even more surprising is that 50 million users joined

Facebook between September 2009 and December 2009. More than 700,000 businesses have

active Facebook Pages. There are 1.6 million active Pages on Facebook and those pages have

created 5.3 billion fans (Facebook). Many hotel brands have Facebook pages, but one of the few

companies to have a page for the entire company is Hilton. Hilton had 32,351 fans as of March

14, 2010 (Facebook).

Figure 3 Changes in Facebook Usage between December 2008 to December 2009.


2. Twitter

Twitter, founded on March 21, 2006, is a form of micro-blogging that limits users to posts with

140 characters or less (Experian Hitwise, 2010). Twitter can also be categorized as a social

networking site. Twitter accounted for 1.12% of the overall social networking site visits

(Experian Hitwise, 2010). Figure 4 indicates the percent of unique visitors to Twitter by

demographic. Unique Visitors between the ages of 17 to 24 grew by 14.1% while Unique

Visitors between the ages of 25-65+ declined by 10.3%. Four Seasons has many different

properties that are represented on Twitter. The properties “tweet” event updates and other

promotional material to followers.

3. Myspace

Additionally, like Facebook and Twitter, Myspace is also considered a social networking site.

Launched in 2004, Myspace gained one million users in the first month of operation. A recent

study by Experian Hitwise stated that Myspace earned 16.36% of the overall visits to social

networking sites.


4. YouTube

Content communities are social media sites in which users share and collaborate on media

content (Kaplan & Haenlein, 2009). YouTube, founded in February 2005, is a video sharing

community that allows users to upload original videos and interact with others in the community.

According to YouTube, twenty hours of video is uploaded to YouTube every minute. YouTube

accounted for 14.65% of the overall social networking site visits during the week of January 30,

2010 (Hitwise, 2010).

5. Flickr

Like YouTube, Flickr can also be categorized as a content community in which users do not

have to create a profile to view content. “The high popularity of content communities makes

them a very attractive contact channel for many firms (Kaplan & Haenlein, 2009). Flickr was

developed by Ludicorp in 2004 and later purchased by Yahoo in 2005. Flickr has over two

billion pictures stored and over forty million visitors each month (Flickr).

6. Trip Advisor

Collaborative projects are the creation of many end-users who can add, remove, and change

content. Companies should be aware of the impact that collaborative projects can have on their


businesses because of the increasing trend toward becoming a main source of information for

end-users (Kaplan & Haenlein, 2009). Trip Advisor is the world’s largest travel information and

advice site with over five million unbiased reviews covering 220,000 hotels and attractions

worldwide. Trip Advisor has over twenty million unique visitors each month (ComScore, 2010).

7. Blogger

Blogs represent the earliest form of social media, are typically managed by one person, and

many companies utilize blogs to update, employees, customers, and shareholders on

organizational developments (Kaplan & Haenlein, 2009). Developed in 1999, Blogger is a social

media application that allows users to post their thoughts in blog form. Blogs range from all

different topics and are less interactive in the sense that end-users can only read and leave a

comment, but cannot share additional information unless it is done so in their own blog. Blogger

was purchased in 2002 by Google and has grown rapidly since that time. In January 2010,

Blogger had 34,896,993 unique visitors (Compete, Inc.).

8. Second Life

Virtual social worlds allow users to “essentially live virtual lives” and offer countless

opportunities for companies to conduct marketing, sell products online, and in human resource

management (Kaplan & Haenlein, 2009). Second Life was launched in 1999 by Linden Lab and

is a 3D world that essentially allows its three million residents to live a second life (Linden Lab).

In January 2010, Second Life saw a 13.32% increase in unique visitors and a 15.88% increase in

monthly visits (Compete, Inc.). Starwood utilized Second Life to get feedback on their Aloft

design and concept. Consumers were able to walk through the virtual hotel and leave comments

throughout the property. Starwood utilized this consumer feedback to create the Aloft product.


Allowing consumers to aid in the creation of the finished product creates ownership on the side

of the consumer and increases brand loyalty.

9. UStream

UStream, much like YouTube and Flickr, is also a content community except that the content

shared is a live stream. Launched in 2007, UStream is an upcoming social media application that

enables companies and users to post live streams as well as poll end-users about the stream.

UStream can be linked with other social networking applications like Facebook and Twitter.

UStream has 40 million monthly viewers (UStream).

10. LinkedIn

Formed in 2003, LinkedIn is a social networking site that is directed at a specific target market,

the working professionals. There are currently 60 million working professionals representing all

of the Fortune 500 companies on LinkedIn (LinkedIn, 2010). Unique visits to LinkedIn have

increased 23.84% from December 2009 to January 2010 (Compete, Inc).

Because social networking sites are a great source of consumer behavioral data, profile and link

data from these sites can be accumulated and used to explore potential target markets. Customer

data is a vital part to maintaining

customer relationships because it

allows the collecting company to

understand each market segment

(Stockdale, 2006).


2.3 Generation Y

While Gen Y refers to the individuals born between 1977 and 1998, there are unique

characteristics that can be attributed to those born between the years of 1981 and 1994 (Hahm,

Upchurch, & Wang, 2008). For the purpose of this study, we will research the impact of these

characteristics and the implications of the consumers born during 1981 and 1994. Exposure to a

rich media environment has resulted in a reflective and cautious nature of the millennial

generation who often challenge the traditional value systems. Media gadgets and technology

have been a primary focus of this generation. Millennials use technologies like cell phones,

podcasts, blogs, and personal webpages to engage in social networking, studying, and for

personal entertainment (Hahm et al, 2008). According to Deloitte Consulting, Millennials have

never experienced life without computers, reverse accumulation of knowledge meaning the

younger you are, the more you know, and all information and the competition is a click away.

Gen Y is the largest generation after the Baby Boomers with 80 million “Millennials”.

Gen X, the generation before Gen Y, consisted of 40 million individuals (Deloitte Consulting,

2005). Loda, Coleman, & Backman (2010) state that the Millennials are one of today’s most

coveted markets not only because it numbers 80 million, but because this generation has a

greater spending power than previous generations. Likewise, the spending power of the 18.3

million Millennials who are enrolled in college was calculated to reach $5.3 billion in 2008. Of

that $1 billion is spent on spring break trips alone (Loda et al, 2010). In regards to the absorption

and integration of information related to tourism products and services, Gen Y prefers to explore

electronic mediums to conduct research and consume services (Hahm et al, 2008).


As Gen Y enters the consumer market, it is imperative that hotel companies understand

the characteristics of this generation and develop and implement marketing techniques that will

attract and retain these future consumers. Loda et al (2010) found that web sites are an essential

component in influencing consumer’s attitudes and intent to visit. Studies (Beldona et al, 2009;

Loda et al, 2010) suggest that travel marketers need to utilize their understanding of generational

cohorts to institute distinguishable features that tailor their webpages specifically to each

generation. Not only will including these distinguishable features increase responsiveness, they

will also aid in the consumer’s purchase decision process (Beldona et al, 2009).

2.4 Using Social Media Applications

Social media strategies can be utilized in several different company departments. A study

conducted by Forrester Research published by MIT suggested the following:

Department Objective Appropriate Applications Measures of SuccessResearch and Development

Listening to customers Brand Monitoring Research Communities Innovation Communities

Usable product ideas and increased speed of development

Marketing Talking with customers Blogs Communities Video on user-generated

sites

Better market awareness, time spent on sites, increased sales, and online “buzz”.

Sales Energizing customers and using them to influence others

Social networking sites Brand ambassador

programs Communities Widgets

Increased sales and online “buzz”.

Customer Support Supporting customers and having customers help one another

Support forums Wikis

Number of active members, volume of questions, decreased volume of support calls

Operations Managing employees and providing them with tools

Internal social networks Wikis

Increased operational efficiency and decreased volume of email.

Source: MIT Sloan Management Review Spring 2008

“The potential benefits of direct and intimate customer relationships that social applications can

provide are just too compelling for companies to deny” (Bernoff & Li, 2008). At different levels


of the organization, there are different needs and therefore, different uses of social media

applications. At the senior level, executives will have accumulated much knowledge throughout

their career and in order to raise awareness of their company, they can create a blog to share

knowledge and opinion with consumers. Additionally, sales and human resources can utilize

applications like LinkedIn and Facebook to locate potential employees are suppliers.

Currently, Generation Y accounts for 26% of the adult population making Gen Y the

second to the Baby Boomer generation that accounts for 33% of the total adult population (Pew

Research Center). It is expected that within five to ten years, Generation Y will make up the

majority of the total adult population. Because Generation Y has significantly different

characteristics than previous generations, businesses are beginning to evaluate the changes that

must be made in order to maintain a competitive advantage or gain a competitive advantage as

this “new” type of consumer enters and becomes the majority of the consumer base. Because

technology plays a significant role in the activities and daily life of Gen Y, social media

marketing strategies must be designed and implemented in order to maintain customer

relationship management, consumer satisfaction, and trust.

2.5 Social CRM

Traditional CRM focuses on campaigns that generate leads that are converted into

accounts, opportunities, and contacts. The presence of social media applications has resulted in a

paradigm from traditional CRM strategies to what has been dubbed Social CRM. Social CRM

focuses on content that generates conversations which are converted into friends, partners, and

collaborative experiences which feeds into the construction of meaningful relationships.


Goel & Mousavidin (2007) suggest that consumers want experiences that are built around

their wired, networked, and ‘neomillenial’ lifestyle. Additionally, value can be enhanced when

the consumer has an active role in the manufacturing of the product or experience. Previous

studies (Goel & Mousavidin, 2007; Fournier & Mick, 1999; Keiningham, Goddard, Vavra, &

Source, 1999) also show that there is an increase in satisfaction and retention when consumers

are invited to participate at every step of the value chain. “Copresent interaction is fundamental

to social interaction within institutions, families, and friendships, for producing trust, sustaining

intimacy…this theory and research indicates that the geographical ‘stretching out’ of social

networks makes tourism desirable and indeed necessary, because social networks so far do not

only function through phone calls, texting, and email” (Larsen, Urry, & Axhausen, 2006).

Stockdale (2006) explores the shift in consumer purchase behavior stating that lower

levels of loyalty exist between today’s consumers and specific brands. The trend in consumer

purchase behavior has been toward bargain shopping and getting the most out of the money

spent. Chen & Chiu (2009) furthered research conducted by Berry (1995) relating to customer

relationship management practiced at the financial, social, and structural bond levels. The results

suggest that CRM is furthered through financial and structural bonds. Stockdale (2006) identified

the constructs of customer relationship development in the online environment as identifying the

online customer, website design, information gathering and handling, communication with

customers, and loyalty and trust. The most important factor in CRM is trust. Trust can be

enhanced by branding, community sites, and customer loyalty programs.

The key to using social media applications to enhance CRM is to be actively participating

in them. It is one thing for a company to develop applications to interact with consumers and


think that their work is done than it is to be actively interacting with consumers on a daily

sometimes hourly basis. Many companies are realizing that in order to add social media

strategies to their agenda, they must have the human resources to manage them as well.

2.6 Customer Satisfaction

In order to increase satisfaction levels, companies should offer pricing incentives,

information, and friendship to consumers (Chen & Chiu, 2010). Stockdale (2006) suggests the

following to support the management of customer relationships in an online environment:

Friendship: The foundation for a strong customer relationship will be built upon the

comfort and friendliness that the consumer feels with the business.

Loyalty: Loyalty programs enhance the customer relationship because they enhance brand

loyalty.

Communication: Communication is the most important element in the online

environment. If information is not presented coherently or webpages are not easily

navigated, consumers will become dissatisfied and will search for information elsewhere.

Law & Bai (2007) found that in order for companies to convert website browsers into buyers is

to offer products or services that are priced more competitively online than they are in other

distribution channels and also stating that prices found online differ from other distribution

channels and are only applicable to purchases made online. Studies (Loda et al, 2010; Beldona et

al, 2009) have noted that marketers, specifically travel marketers, need to use their knowledge of

generational cohorts to design features that tailor their webpages specifically to each generation

because doing so will aid in the consumer’s purchase decision process.


2.7 Trust in an Online Environment

Privacy is defined as “the quality or condition of being secluded from the presence or

view of others” (Merriam Webster). Privacy within social networking refers to the interaction

between public and private users, changing information that is viewed by the public, and giving

restricted access to users that have different capabilities within the sites. Preibusch, Hoser,

Gurses, & Berendt (2007) acknowledge that “privacy” is not only about protecting user data or

restricting access to areas, but also about who can change information about individuals and

groups, how people can interact with other users and the site, different shared spaces that can be

created, and how identities can be shared between pages. More than half of social networking

users reflect on what information they post on social media applications and consider the

consequences that may result from posting such material (Beresford Research, 2009). It is vital

that companies that are developing and implementing marketing strategies that include social

media applications have thorough knowledge on the privacy implications that exist. A successful

online marketing campaign coincides with a well-planned privacy strategy.

Beresford Research (2009) found that 65% of Generation Y social media users have

integrated social networks into their lives so much that the social media applications have

become a trusted and significantly important resource for decision making.

2.8 Focus of Study

According to this body of scholarly research, it appears that social media applications

have increased tremendously over the last few years and play a significant role in the marketing

strategies of many businesses. Additionally, it appears that academic researchers have


acknowledged the paradigm in traditional marketing. However, what remains to be studied is the

extent to which major lodging companies are using social media applications and whether these

companies are ready to embrace the growth of Generation Y into the consumer base. More

specifically, the impact of social media applications on customer relationship management and

consumer satisfaction and trust in the online environment in regards to lodging firms remains

unseen. The purpose of this study is to determine whether lodging companies are utilizing social

media applications to the fullest extent, who the biggest users of social media applications are,

and how the use of social media applications result in better customer relationship management,

satisfaction, and trust in the online environment.

Previous studies (Goel & Mousavidin, 2007; Fournier & Mick, 1999; Keiningham, et al, 1999)

have shown that there is an increase in satisfaction and retention when consumers are invited to

participate at every step of the value chain or production process. Accordingly, this study

proposes that:

H1: The use of social media applications has a positive impact on consumer relationship

management in online marketing.

Stockdale (2006) noted that trust is the most important factor in establishing online relationships

with consumers. However, trust hinges on the firm’s ability to deliver on promises and to build

on their brand online as well as offline. Consequently, this study suggests that:

H2: If employed correctly, social media applications have a positive effect on consumer

trust in online purchases.


Studies (Kah et al, 2008; Alvarez, Martin, & Casielles, 2007) have shown that the accessibility,

time and cost saving factors, availability, purchasing ability, and interactivity of the Internet has

increased the satisfaction of consumers. Therefore, this study proposes:

H3: Social media applications significantly increase consumer satisfaction and decisions

to purchase travel products/services online.

3. METHOD

3.1 Survey Instrument

The questionnaire used for this survey consisted of three sections. The first section

included questions about respondents’ use of social media applications. Respondents were

questioned about the type of online social media use, frequency of social media application use,

history of use, use of social media for specific activities, and the respondents’ primary use of

social media applications. The second section questioned the customer relationship between

respondents and companies using online social media applications, satisfaction in

communicating with companies through online social media applications, and the trust

respondents have in sharing personal information with companies by means of online social

media applications. The second section was measured on a 7 point Likert scale from 1 “strongly

disagree” to 7 “strongly agree”. The final section collected the respondents’ demographic

information such as age, ethnicity, education, and annual household income.

3.2 Sample Characteristics

The subjects for the study are undergraduate students at a southeastern university. The

student sample is a segment of Internet users and has been widely used in previous studies


(Hahm et al, 2008; Loda et al, 2010). The student sample is the ideal segment for this study

because the average full-time undergraduate student is part of the Millennial generation and an

avid Internet as well as social media user. Extra credit points are given upon completion of the

survey, but participation in the study is voluntary.

3.3 Data Analysis

Structural Equation Modeling (SEM) will be used to analyze the data collected. SEM

consists of two main model components: the structural model and the measurement model.

Potential causal dependencies between endogenous and exogenous variables are shown in the

structural model. Relations between latent variables and indicators are shown by the

measurement model (Garson, 2009).

4. IMPLICATIONS

Because studies (Kah, Vogt, & MacKay, 2008; Bonn, Furr, & Susskind, 1999; Bonn et

al, 1999) have found that Internet users are likely to have positive attitudes about technological

advancements and users are more likely to be college educated and under the age of forty-five.

Additionally, Internet users are more likely to stay in commercial lodging and spend more

money during travel. Consequently, because Generation Y is the largest user of technology and

the Internet and within five to ten years this generation will account for majority of the consumer

market, there are several implications for businesses as well as consumers.

18.3 million “Millennials” are enrolled in college and the spending power of those 18.3

million students was calculated to be $5.3 billion in 2008 with $1 billion spent on spring break

trips alone (Loda et al, 2010). This generation is always connected to social media applications


by means of laptops, netbooks, and smartphones, yet many businesses are not taking advantage

of a direct distribution channel to these consumers. This study is important because it is

important to understand the impact of social media on customer relationship management,

satisfaction, and trust. Literature suggests that social media plays a significant role in customer

relationship management; so much that devolution from traditional marketing has now been

dubbed Social CRM.

Because technology plays a significant role in the activities and daily life of Gen Y,

social media marketing strategies must be designed and implemented in order to maintain

customer relationship management, consumer satisfaction, and trust. Stockdale (2006) explores

the shift in consumer purchase behavior stating that lower levels of loyalty exist between today’s

consumers and specific brands. The trend in consumer purchase behavior has been toward

bargain shopping and getting the most out of the money spent. When businesses utilize the forms

of communication that their target market uses, more brand loyalty is built.

Social media strategies should be employed in such a way that they make the most out of

the data and communication channel that is available. Businesses should tread lightly in the gray

areas concerning consumer privacy and personal information. A recent report by the Mintel

Group noted that there is a rising trend in annoyance level of consumers toward businesses

invasive marketing on the Internet. If used correctly, social media applications have the potential

to further the relationship between the business and the consumer, increase satisfaction, and

increase trust. While not every channel will work for every business, there are numerous forms

of social media and as the trend of consumers “connected” continues to rise, so should the more

specialized and targeted marketing strategies of businesses as well.


Future studies can explore a more thorough cohort segmentation of Generation Y to

establish which forms of social media applications would be most efficient in marketing to these

markets. Additionally, little information is available on the generation to follow Generation Y,

Generation Z. This information is limited by the age and supply of individuals to be included in a

sample because parental permissions must be attained before such research can begin. This study

provides a broad foundation of information for more thorough research to be conducted

specifically within the area of Social CRM and the appropriate amount of presence that

companies should have on social media applications. Research on guerilla marketing techniques

and how companies may gain exposure through social media applications without becoming too

much of a nuisance for Generation Y and their ever increasing speed used to surf the Internet.

Studies that investigate how Generation Y views and reacts to companies currently participating

in social media application will also be extremely beneficial for future research.

Additionally, as more and more Millennials progress through the consumer life-cycle,

research that studies the purchase behavior of Millennials as they begin families and start making

purchases for their Generation Alpha children. Each stage in the Millennial consumer life-cycle

will have different implications on businesses and research focusing on this will build a strong

foundation for future study.


Paradigm in Traditional Marketing: Social Media Applications and Gen Y

Participation in this survey is voluntary. You may decline to participate at any time.

SECTION I: Online Social Media Applications While completing this questionnaire, please consider your last online search/purchase process

you used for traveling purposes. Examples of Social Media Applications: (Facebook, Twitter, LinkedIn, TripAdvisor, YouTube,

Flickr, MySpace, Blogger, UStream, Second Life, etc…)

1. Which of the following social media applications do you use? Check all that apply. Facebook LinkedIn Myspace YouTube UStream

Second Life Twitter Flickr Blogger Trip Advisor

2. Do you use social media applications for personal use only, business use only, or both? Personal use only Business use only Both personal and business use

3. Which of the following activities, if any, have you done in the past month on the online social media applications you use? Check all that apply.

Posted pictures (other than a profile picture) Posted video/music Posted links to other web sites (including links to videos) Linked to a company, product, or service Told people about music/movies/games/TV shows I like Clicked a paid advertisement Participated in a promotion or contest Searched for information for travel purposes Updated activities/posted thoughts Responded to posts of others Started a group Included a podcast

4. How frequently do you typically check your online social media applications? Logged in all of the time Every few minutes Hourly 5-6 times daily 3-4 times daily 1-2 times daily

Few times per week Few times per month Monthly <Monthly

5. How many hours do you typically spend on your online social media applications? < 1 hour 1-2 hours


2-3 hours 4-5 hours

<5 hours

6. How long have you been using online social media applications? A few weeks 1-2 months 3-4 months 5-6 months

7-12 months 1-2 years 3-4 years 5 years or more

7. To what extent do you use online social media applications to do the following?

Not at all

Slight Amount

Moderate Amount

Great Amount

a. Stay in touch with my friends

b. Stay in touch with my family

c. Stay in touch with my business associates

d. Discuss other online activities (e.g. YouTube, searching)

e. Discuss offline activities (e.g. Sports, parties)

8. Which of the following have you READ in the past month on an online social media application? Check all that apply.

Blog Forum/Message Board Ratings/Reviews

Online news feed Online discussion list Micro-blog (e.g Twitter)

9. Which of the following have you RESPONDED to in the past month on an online social media application? Check all that apply.



10. Which of the following have you INITIATED the content for in the past month on an online social media application? Check all that apply.




SECTION II: Please indicate your level of agreement with the following statements.

Customer Relationship Management(Mintel Group, 2010)

Strongly Disagree

Disagree Neutral Agree Strongly Agree

N/A

1 Social media applications allow me to give and receive feedback from companies with more ease.

1-----------2----3--------4--------5---6------7

2 I have discussed or posted opinions about products, brands, or services I like.

1-----------2----3--------4--------5---6------7

3 I have visited the website of a company after learning about it on an online social media application.

1-----------2----3--------4--------5---6------7

4 I am a “fan” of or “friends” with several companies on my online social media applications.

1-----------2----3--------4--------5---6------7

5 I have promoted a company or brand by telling my social media friends about it or posting my own advertisement for a company/brand.

1-----------2----3--------4--------5---6------7

Satisfaction(Mintel Group, 2010)

Strongly Disagree


N/A

6 Online social media applications are a good source of information for consumers.

1-----------2----3--------4--------5---6------7

7 My complaints and comments are dealt with quickly and appropriately on social media applications.

1-----------2----3--------4--------5---6------7

8 My experience with online social media applications and communicating with companies is very pleasing.

1-----------2----3--------4--------5---6------7

9 I am more likely to purchase products/services from a company that uses online social media applications.

1-----------2----3--------4--------5---6------7

10 I am more likely to purchase products/services from a company offering promotions on online social media applications.

1-----------2----3--------4--------5---6------7

Trust(Beresford Research, 2009)

Strongly Disagree


N/A

11 I set up different levels of access to different types of people on my social media applications.

1-----------2----3--------4--------5---6------7

12 I don’t mind if information on my profile is shared with corporations, as long as it is 100% anonymous.

1-----------2----3--------4--------5---6------7

13 I trust that the information I share with online social media applications will be protected and not shared with outside sources.

1-----------2----3--------4--------5---6------7

14 I only interact with people I know on online social media applications.

1-----------2----3--------4--------5---6------7

15 I trust that the information I read the social media applications of companies is reliable.

1-----------2----3--------4--------5---6------7


SECTION III: General Information

1. Please select your gender: Male Female

2. Are you… Single Unmarried couple living together Married

Divorced/Separated Widowed

3. Which of the following best describes you? Check one. Full-time undergraduate student Part-time undergraduate student

Not enrolled in school

4. Which of the following best describes you? Check one. Employed Full-time Employed Part-time

Unemployed

5. Please indicate your age range. Under 19 years 19-20 years 21 to 22 years

23-24 years 25-26 years 27 or older

6. Please select your ethnicity. Caucasian Asian/Island Pacific African American

Native American Hispanic Other ___________

7. Please select your annual household income. Under $50,000 $50,000-$74,999 $75,000-$99,999

$100,000-$149,999 $150,000-$199,999 $200,000 or more

Any Comments:


References

Alvarez, L. S., Martin, A. M. D., & Casielles, R. V. (2007). Relationship marketing andinformation and communication technologies analysis of retail travel agencies.Journal of Travel Research, 45(4), 453–463.

Beldona, S., Nusair, K., & Demicco, F. (2009). Online Travel Purchase Behavior of Generational Cohorts: A Longitudinal Study. Journal of Hospitality Marketing & Management, 18, 406-420.

Beresford Research. (2009). Use of Online Social Networks. White Paper 29. Retrieved on March 25, 2010 from http://beresfordresearch.com/_beresfordtest/pdfdocuments/Use%20of%20Online%20Social%20Networks%20White%20Paper%20%28Beresford%20Research%29.pdf

Bernoff, J. & Li, C. (2008). Harnessing the Power of the Oh-So-Social Web. MIT Sloan Management Review, 49(3), 36-42.

Berry, L. (1995), Relationship Marketing of Services Growing Interest, Emerging Perspectives. Journal of the Academy of Marketing Science, 23 (Fall), 236-45.

Bonn, M.A., Furr, L.H., & Susskind, A.M. (1999). Predicting a BehavioralProfile for Pleasure Travels on the Basis of Internet Use Segmentation. Journal ofTravel Research, 37 (May), 333-340.

Boyd, D.M. & Ellison, N.B. (2007). Social network sites: Definition, history, and scholarship. Journal of Computer-Mediated Communication, 13(1), 210-230.

Boyd, D., and Ellison, N. (2007). Social network sites: Definition, history, and scholarship. Journal of Computer-Mediated Communication, 13(1), 210-230. Graphic: http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html

Chen, Y.L., & Chiu, H.C. (2009). The effects of relational bonds on online customer satisfaction. The Service Industries Journal, 29(11), 1581-1595.

Chul, M., Miller, A., Roberts, R.P. (2009). Six Ways to Make Web 2.0 Work. McKinsey on Business Technology (Summer 2009), 16.

Compete, Inc. (2010). Blogger Site Analytics. Retrieved on February 1, 2010 from http://siteanalytics.compete.com/blogger.com/

Compete, Inc. (2010). Trip Advisor Site Analytics. Retrieved on February 1, 2010 from http://siteanalytics.compete.com/tripadvisor.com/

comScore (2009). Changes in Facebook Usage between December 2008 to December 2009. Media Matrix (U.S). Retrieved on March 3, 2010 from http://www.marketingcharts.com/interactive/facebook-twitter-grow-more-than-100-11943/

http://siteanalytics.compete.com/blogger.com/


comScore (2009). Percent Composition of Visitors by Demographic Segment. Media Matrix (U.S). Retrieved on March 3, 2010 from http://www.marketingcharts.com/interactive/facebook-twitter-grow-more-than-100-11943/

comScore (2009). Total U.S. Online Video Market. Video Matrix (U.S). Retrieved on March 3, 2010 from http://www.marketingcharts.com/interactive/facebook-twitter-grow-more-than-100-11943/

comScore (2009). Twitter Demographic Segment Trend. Media Matrix (U.S). Retrieved on March 3, 2010 from http://www.marketingcharts.com/interactive/facebook-twitter-grow-more-than-100-11943/

Deloitte Consulting. (2005). Who are the Millennials? a.k.a. Generation Y. Retrieved March 3, 2010, from http://deloitte.com/dtt/cda/doc/content/us_consulting_millennialfactsheet_080606.pdf

Experian Hitwise. (2010). Top 20 Sites & Engines. Main Data Center. Retrieved on February 1, 2010 from http://www.hitwise.com/us/resources/data-center

Facebook. (2003-2010). Fact sheet. Retrieved February, 1, 2010, fromhttp://www.facebook.com/#!/press/info.php?statistics

Facebook. (2003-2010). Hilton Hotel Fan Page. Retrieved February, 1, 2010, fromhttp://www.facebook.com/#!/hilton?ref=ts

Fournier, S., and Mick, D.G. (1999). “Rediscovering Satisfaction”. Journal of Marketing, 63(4), 5-23.

Garson, D. (2009). Structural Equation Modeling. North Carolina State University. Retrieved on April 12, 2010 from http://faculty.chass.ncsu.edu/garson/PA765/structur.htm.

Goel, L., & Mousavidin, E. (2007). vCRM: Virtual Customer Relationship Management. The Data Base for Advances in Information Systems, 38(4), 56-60.

Golbeck, J. (2007). The dynamics of Web-based social networks: Membership, relationships, and change. First Monday, 12 (11).

Hahm, J., Upchurch, R., & Wang, Y. (2008). Millennial Students, Movies, and Tourism. Tourism Analytics, 13, 189-204.

Kah, J.A., Vogt, C., & MacCay, K. (2008). Online Travel Information Search and Purchasing by Internet Use Experiences. Information Technology & Tourism, 10, 227-243.

Kaplan, A.M. & Haenlein, M. (2009). Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons (2010) 53, 59-68.

Kasavana, M.L., Nusair, K., & Teodosic, K. (2010). Journal of Hospitality and Tourism Technology, 1(1), 68-82.

http://www.informatik.uni-trier.de/~ley/db/journals/firstmonday/firstmonday12.html#Golbeck07

http://www.facebook.com/#!/hilton?ref=ts

http://www.facebook.com/#!/press/info.php?statistics


Keiningham, T.L., Goddard, M.K.M., Vavra, T.G., & Source, A.J. (1999). Customer Delight and the Bottom Line. Marketing Management, 8(3), 57-63.

Larsen, J., Urry, J., & Axhausen, K.W. (2007). Networks and Tourism: Mobile Social Life. Annals of Tourism Research, 34(1), 244-262.

Law, R., & Bai, B. (2007). Website Development and Evaluations in Tourism: A Retrospective Analysis. Information and Communication Technologies in Tourism,Proceedings of the International Conference in Lausanne, Switzerland, 2006

Linden Lab. (2002-2010). Fact sheet. Retrieved February, 1, 2010, fromhttp://lindenlab.com/pressroom/general/factsheets/lindenoverview

LinkedIn. (2008). Fact sheet. Retrieved February, 1, 2010, fromhttp://press.linkedin.com

Loda, M.D., Coleman, B.C., & Backman, K.F. (2010). Walking in Memphis: Testing One DMO’s Marketing Strategy to Millennials. Journal of Travel Research, 49(1), 46-55.

Mintel Group. (2010). Marketing to Millennials. Retrieved on March 25, 2010 from http://academic.mintel.com/sinatra/oxygen/display/id=482498

Myspace (2003-2010). Fact sheet. Retrieved February, 1, 2010, fromhttp://www.myspace.com/pressroom?url=/fact+sheet/

Pew Internet and American Life Project (2010). The Millennials: Confident. Connected. Open to Change. http://pewsocialtrends.org/assets/pdf/millennials-confident-connected-open-to-change.pdf

Preibusch, S., Hoser, B., Gürses, S., and Berendt, B. Ubiquitous social networks- opportunities and challenges for privacy-aware user modelling. In Proceedings of the Data Mining for User Modelling Workshop (DM.UM'07) at UM 2007, Corfu, June 2007.

privacy. (2010). In Merriam-Webster Online Dictionary.Retrieved April 13, 2010, from http://www.merriam-webster.com/dictionary/privacy

Stockdale, R. (2006). Managing customer relationships in the self-service environment of e-tourism. Journal of Vacation Marketing, 13(3), 205-219.

UStream. (2007-2010). Fact sheet. Retrieved February, 1, 2010, from http://www.ustream.tv/mediakit

http://lindenlab.com/pressroom/general/factsheets/lindenoverview

Paradigm in Traditional Marketing: Social Media & Gen Y

Documents

spring break

total adult

social media

customer relationship

social media

social networking

dubbed social

social networking