The Effectiveness of Direct Marketing A

The effectiveness of Direct Marketing: A Survey of hotels in Hong Kong
Chor Man Tse
A dissertation submitted in partial fulfillment of the requirements of
the Degree of Bachelor of Arts with Honors in
International Hospitality and Design Management
IHTTI, School of Hotel Management
University of Derby
Spring 2017
Abstract
The hotel industry has been growing rapidly, so is the competition in the industry. To stand
out from competitors, hotel marketers need to establish effective marketing strategies to
achieve its business objectives. As the accessibility of the Internet increases, the customers
are not only expecting more online marketing communication but also expecting a high
quality of personalized and tailor-made marketing message that is closely related to them.
Therefore, the use of direct online marketing strategy has become popular among hotel
marketers.
However, the excessive use of email marketing from different industry and spams had
annoyed readers, where some market researcher has pointed out the negative perception of
direct marketing causing the ineffectiveness of direct marketing emails. While some
marketing researchers believe with extensive and precise consumer data and relevant
marketing content, email marketing would be a modern day effective tool in building
consumer relationship and trigger the desired reaction.
Hence, this research aims to evaluate the effectiveness of direct online marketing of Hong
Kong hotels in a customer perspective. With the purpose of understanding the marketing
performance base on the 3R model and investigate customer preference regarding direct
online marketing through a questionnaire. With the aids of relevant secondary data, the
research took a deductive approach and epistemology research philosophy, where findings
from questionnaire would test prior knowledge.
The results of the research outline hotel marketers should re-evaluate the value of different
online marketing channel, also shown customer appreciate current direct email marketing
strategy. While customers do find online direct marketing material useful, they do not
believe it causes their purchasing actions.
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Additionally, the researcher has made recommendations for the potential development of
the topic, including increasing the sample size and adapting an attribution model for more
statistical performance evaluation.
Acknowledge
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I would like to express my great gratitude to my supervisor, Mr. Evangelos Vantzos, who
assisted with my dissertation by giving me constructive suggestions and criticism
throughout my research study.
Moreover, I would also like to thank Ms. Delphine Bovey, Academic Support Center for
offering help in the library and online library researching.
Last but not the least, I am grateful to my family and friends for supporting me all along.
Table of Contents
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Chapter 1. Introduction ........................................................................................................................ 1
1.1 Introduction ............................................................................................................................... 1
1.2 Aim and Objectives ................................................................................................................... 2
Chapter 2. Literature Review............................................................................................................... 3
2.1 Introduction ............................................................................................................................... 3
2.2 Hotel Industry............................................................................................................................ 4
2.3 Hotel Marketing ........................................................................................................................ 5
2.4 Hotel Direct Marketing ............................................................................................................. 7
2.4.1 Hotel Direct Online Marketing .......................................................................................... 8
2.4.2 3Rs model ........................................................................................................................ 10
2.4.2.1 Reach ......................................................................................................................... 11
2.4.2.2 Resonate..................................................................................................................... 11
2.4.2.3 Reaction ..................................................................................................................... 12
2.5 Conclusion............................................................................................................................... 14
Chapter 3. Methodology .................................................................................................................... 15
3.1 Introduction ............................................................................................................................. 15
3.2 Research Philosophy ............................................................................................................... 16
3.4 Research Strategies ................................................................................................................. 17
3.5 Research Data Collection ........................................................................................................ 18
3.5.1 Secondary Research ......................................................................................................... 19
3.5.2 Primary Research ............................................................................................................. 19
3.6 Time Horizons ......................................................................................................................... 20
3.7 Questionnaire Design .............................................................................................................. 21
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3.8 Sampling ................................................................................................................................. 22
3.9 Pilot Study ............................................................................................................................... 23
3.10 Reliability, Validity and Limitation ...................................................................................... 23
3.11 Ethical consideration ............................................................................................................. 24
3.12 Conclusion............................................................................................................................. 25
Chapter 4. Findings and Analysis ...................................................................................................... 26
4.1 Introduction ............................................................................................................................. 26
4.2 Social-Demographic Profile .................................................................................................... 27
4.3 Current Hotel online marketing strategy ................................................................................. 28
4.4 Customer preference ............................................................................................................... 30
4.5 Performance of Hong Kong hotel online direct marketing strategy ....................................... 32
4.5.1 The effectiveness of reaching to the right customer ........................................................ 33
4.5.2 The effectiveness of creating resonate ............................................................................. 33
4.5.3. The effectiveness of generating reaction ........................................................................ 34
4.6 Conclusion............................................................................................................................... 36
Chapter 5 Conclusion and Recommendations ................................................................................... 37
5. 1 Conclusion.............................................................................................................................. 37
5.2 Recommendations ................................................................................................................... 39
Chapter 6. References ........................................................................................................................ 40
Appendix
Appendix 1.1 Email marketing communication strategy adopted by different industries ............ 52
Appendix 2.1 Global Hotel Industry Growth ................................................................................ 53
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Appendix 2.2 Hotels segmentation percentage ............................................................................. 54
Appendix 2.3 Global Brand and Non-brand hotel percentage ...................................................... 55
Appendix 2.4 Hotel Marketing Customer Segmentation .............................................................. 56
Appendix 2.5 Ads spend by channel (online verse offline) .......................................................... 57
Appendix 2.6 Online ads spend by channel .................................................................................. 58
Appendix 2.7 Total Global Email and Spam Volume for June 2017 ........................................... 59
Appendix 2.8 Seven elements of customer touch points experience ............................................ 60
Appendix 2.9 Worldwide Email Account and User Forecast ....................................................... 61
Appendix 2.10 3R model .............................................................................................................. 62
Appendix 2.11 Industries use email targeting ............................................................................... 63
Appendix 2.12 Industries use advanced segmentation.................................................................. 64
Appendix 2.13 Industries adopt Email Automation technique ..................................................... 65
Appendix 2.14 Industries adapting personalize email marketing technique ................................. 66
Appendix 2.15 Industries marketers rating on email marketing return on investment (Result show
Excellent or Good) ........................................................................................................................ 67
Appendix 2.17 Email performance base on three metrics across industries ................................. 69
Appendix 2.18 Effectiveness of Online Marketing Channels in Driving Brand and Leads for
Hotel Chains .................................................................................................................................. 70
Appendix 2.19 Effectiveness of Online Marketing Channels in Driving Brand and Leads for
Independent Hotels........................................................................................................................ 71
Appendix 3.1 Gantt Chart ............................................................................................................. 72
Appendix 3.2 Independent Studies Progress Report – 14 Feb 2017 ............................................. 73
Appendix 3.3 Independent Studies Progress Report – 21 Feb 2017 ............................................. 74
Appendix 3.4 Independent Studies Progress Report – 6 March 2017 .......................................... 75

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Appendix 3.5 Independent Studies Progress Report – 20 March 2017 ........................................ 76
Appendix 3.6 Independent Studies Progress Report – 10 April 2017 .......................................... 77
Appendix 3.7 Independent Studies Progress Report – 24 April 2017 .......................................... 78
Appendix 3.8 Research Onion ...................................................................................................... 79
Appendix 3.9 Hypothesis Testing Approach ................................................................................ 80
Appendix 3.10 Main modes of administration of a survey ........................................................... 81
Appendix 3.11 Group frequency distribution table....................................................................... 82
Appendix 3.12 Characteristics of Survey...................................................................................... 83
Appendix 3.13 Snowball sampling ............................................................................................... 84
Appendix 3.14 Survey Draft ......................................................................................................... 85
Appendix 3.15 Pilot study 1 .......................................................................................................... 90
Appendix 3.16 Pilot Study 2 ......................................................................................................... 94
Appendix 3.17 Pilot Study 3 ......................................................................................................... 98
Appendix 3.18 Pilot Study 4 ....................................................................................................... 102
Appendix 3.24 Pilot Study 10 ..................................................................................................... 123
Appendix 3.25 Final survey ........................................................................................................ 126
Appendix 4.1 Gender Distribution .............................................................................................. 131
Appendix 4.2 Age Distribution ................................................................................................... 132
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Appendix 4.3 Nationality Distribution ........................................................................................ 134
Appendix 4.4 Awareness to online hotel advertisement ............................................................. 135
Appendix 4.5 Number of respondents who read hotel online advertisement ............................. 136
Appendix 4.6 Effective Online Marketing Tactics for Hotel Brand Marketing ......................... 137
Appendix 4.7 Customer considered useful online marketing activity ........................................ 138
Appendix 4.8 Degree of satisfaction toward hotel direct marketing email................................. 139
Appendix 4.8.1 Analysis by categories - Cumulative frequency table ................................... 140
Appendix 4.9 Direct online marketing email efficiency in communicating to individual consumer
..................................................................................................................................................... 141
Appendix 4.9.1 Analysis by categories - Cumulative frequency table ................................... 142
Appendix 4.10 Customization of hotel direct marketing material .............................................. 144
Appendix 4.10.1 Analysis by categories - Cumulative frequency table ................................. 145
Appendix 4.11 Direct online marketing email efficiency in communicating to individual
consumer ..................................................................................................................................... 146
Appendix 4.12 Popularity of spam block .................................................................................... 148
Appendix 4.13 Comparing online direct email marketing to direct postal market ..................... 149
Appendix 4.14 Hotel direct online marketing email relevance to individual ............................. 151
Appendix 4.15 Customer-favourable information in hotel direct marketing email .................... 152
Appendix 4.16 Usefulness of hotel direct online marketing email content ................................ 153
Appendix 4.17 Type of Information attract consumer using a hotel .......................................... 155
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Appendix 4.18 Motivating customer information search............................................................ 156
Appendix 4.19 Motivating marketing campaign participation ................................................... 158
Appendix 4.20 Hotel direct online marketing email impact on purchasing decision ................. 160
Appendix 4.21 Awareness to hotel comparing hotels that send ................................................. 162
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Chapter 1. Introduction
1.1 Introduction
As one of the fastest growing industry, hotels are facing fierce competition, and ever-
changing customers experience expectations. The continuous merge and acquisition of
hotel brands have created a challenging marketing environment (Zhao and Olsen, 2008).
Meanwhile, the increasing customer expectation has called for a tailor-made and
personalized customer experience through all touch-points (Schmitt, 2013). These forces
had pushed hotel marketers to communication to target customer directly.
With more diversified services provided from hotels, and yet more focused target customer
profile, generated the needs of a more focusing marketing strategy. Hence hotel marketers
have been investing more on direct marketing, especially direct online marketing.
Considering of emerging popularity of the Internet, and increasing email users. While there
are plenty of email marketing communication strategies available, 83% of the hotel
marketers communicate by regular e-newsletter (Appendix 1.1).
The objective of direct online marketing is to build consumer relationships and
consequently drive sales. Whereas, the increasing use of email marketing by all industry
marketers has become a challenge for hotel marketers to stand out from junk emails and the
efficiency of direct online marketing has become questionable and how much should hotel
marketers credit the marketing channel.
Therefore, the research was carried out to investigate the effectiveness of direct online
marketing and its performance regarding reaching to the target customers, resonating with
the audience and causing desirable customer reaction.
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The research methodology was established to attain the research objectives and have a clear
understanding of the research vision and how achieved them regarding the research, by
demonstrating the processes. Followed by presenting the analysis of primary research data.
Last, the research would be concluded with an overview taken from the research prospect
and summarize the key findings, including a possible recommendation for further studies in
the future.
1.2 Aim and Objectives
The aim of the research is to evaluate the efficiency of online direct marketing strategies
adopted by hotels in Hong Kong to target customer and achieve business objectives.
Objectives:
1. To critically review the theoretical framework concerning direct online marketing
2. To provide an overview of the direct online marketing communication strategy of
hotels in Hong Kong
3. To investigate the effectiveness of direct online marketing strategy of Hong Kong
hotels
4. To identify the factors of direct online marketing email within hotels direct
marketing strategy
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Chapter 2. Literature Review
2.1 Introduction
According to IBISWorld Authority (2016), thanks to the rise in global traveling, the global
hotel industry has experienced steady development, with around 2% of annual growth over
the past five years (2011 to 2016) (Appendix 2.1). Following with the rapid expansion of
hotel industry, the demand of tourists is also constantly changing, as suggested by O’Fallon
(2011) hotels customers nowadays have shown diversity in budget and needs of facilities
and services, these call for a fine-tuned market segmentation. Hotel marketers become
laser-focus on target market niche (Morritt and Weinstein, 2012). Hence, Mullin (2002)
suggest hotel marketer should focus on specific group or even individual by providing
personalize and favorable offers to create a long-lasting customer relation. Out of all
available direct marketing approach, considering the cost and audience, direct online
marketing approach would be the suitable vehicle to deliver the message (Bird, 2007).
Nevertheless, Roberts (2000) argues direct e-mail, one of the most popular direct online
marketing strategy, has become less effective with the excessive use marketing emails,
causing most of the customers feeling annoyed, and take action including install spam
filter.
To better understand the effectiveness of direct online marketing, this chapter would begin
with a background hotel industry, followed by a brief framework of hotel marketing, then
go deeper to the context of hotel direct marketing, in which the effectiveness of direct
online marketing in the hotel industry will be investigated after defining. Lastly, a
conclusion would be drawn to complete the literature review chapter.
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2.2 Hotel Industry
The hotel industry is part of the hospitality industry. Defined as an operation that provides
accommodation and necessary services for people away from home (Jones and
Lockwwood, 2002). Hotels can be segmented into serval categories, serving a different
purpose to provide a complex and wide variety of services to different types of audience.
Consequently, the definition of “An establishment providing accommodation, meals and
other services for travelers and tourists” (Walker, 2013), for a border definition, the
“audience” of the hotel industry is also defined using the phrase “People away from home”
(Jones and Lockwwood, 2002).
Hoteliers have understood that one product cannot fit all markets, therefore segmented the
hotel industry. Hotels nowadays are commonly label according to class and location
(Appendix 2.2). As of ownership and management, even though there is still a significant
number of independent hotels, the most hotels were being managed and owned by
international hotel chain through consolidating, causing a fierce competition between
branded and non-branded hotel (Appendix 2.3). The marketing expertise and adequate
resources of those big hotel chains have created a competitive marketing environment.
Also, the trend of utilizing and interpreting data in the hotel industry is not to be neglected
(Ting, 2017). Where Joie de Vivre Hotel Founder Chip Conley suggested that hotel
industry comparing to other industry is behind in data science area, which would impact the
delivering of personalized and customized services and experience (Conley, 2016).
On the other hand, O’Connor and Frew (2002) suggest the Internet present the hotel
industry with both opportunities and challenges. While the possibilities exist in reaching
customers directly online, the challenge is to maintain reader’s attention long enough to tell
the story. Therefore, hotel marketers should carefully craft the marketing message content
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to keep audience attention and interest (Reed, 2012). Which Fenwick and Wertime (2013)
suggest
2.3 Hotel Marketing
Marketing, in general, is all about people. Multiple market researchers, Kotler (2014),
Nykiel (2011), Strydom (2005) emphasize that marketing must have understood in the
sense of satisfying customer need. Combining with the nature of bringing profit and value
of marketing, subsequently, Armstrong (2009) define marketing as a process by which
companies create values for customers and the society, resulting in strong customer
relationships that capture values from customers in return.
Hotel marketing shares the similar principle, however comparing to most other industry,
hotel marketing involves a much wider variety of services to a much dynamic audience.
Therefore, Reid and Bojanic (2009) suggest the purpose is not only making a profit, and
building relationship but to sell the hotel image to its audience has also fallen upon to hotel
marketing duty list and consequently, reinforce customers’ loyalty. Also, considering the
pattern of diversification within segments of hotels as mentioned in nowadays hotel
industry, hotels are established to cater specific group (Appendix 2.4). Thus, hotels’
marketing strategy also need to cater particular market niches, creating the need for a more
accurate and personalized marketing approach.
Hotel marketing strategy has been shifted to an online focusing strategy in the past decade,
as hotel marketer notices how deeply the Internet has altered the method of how people
connect with one another (Amrahi, Radzi and Nordin, 2014). Also, to reduce responding
time, tools like email, websites, social media generate a new communication means. With a
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steady two percent increase in online advertisement spending from US hotels over that
course of 2011 to 2015 (Appendix 2.5), hotels were spending more than half of the
marketing budget online as they recognize the online media as a more efficient way of
exposing to potential customers with the help of consumer database. Hotels spend most in
search engine optimization, follow by emails, social media and website display (Appendix
2.6), with a gradual increase in spending in social media and online video over 2011 to
2015. Kotler (2015) states hotel marketers tend to involve customer deeper than ever
before, incorporating in an interactive approach, building a two-way customer relationship.
However, the effectiveness of online advertisement has been questioned by Kharabanda
(2010), claiming the overdue and massive banner online advertisement used has decreased
customers awareness of online advertisement. To the extent that there is an emerging
behavior of cognitive ad avoidance, which consumer intentionally ignore ads and taking
actions like installing ad-blocking software (Rodgers and Thorson, 2017). Additionally,
Egger, Buhalis and Emma Travis (2012) argue the Internet has empowered customer
regarding information search with highly accessible information, which consumer could
easily compare alternatives. Radzi et al. (2016) added there is an emerging behavior of
travelers who heavily rely on reviews from online travel communities. Travelers have
shown more trust in their peer’s opinions than marketer-provided materials (Gretzel et al.,
2007), which has become the determining factor of whether consumers would trust the
hotel under consideration (Robinson, 2015). Consequently, hotel marketers are losing the
power in controlling the flow and content of marketing messages (Sheth and Sisodia,
2015).
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2.4 Hotel Direct Marketing
As mentioned, the hotel industry is experiencing the trend of more defined target market.
Hotels are established to meet specific needs; therefore, direct marketing has been widely
adopted by hotels as a simple marketing approach to help better focus on market niches.
Hotel direct marketing strategy does not only promote brand and relationship marketing but
also deliver direct, immediate and measurable guest response (Kotler et al., 2014).
Moreover, Hudson (2008) suggested what differentiate direct marketing with mass
marketing is the ‘audience.' Hotel marketers carefully picked individual customers, those
that hotels hope to cultivate lasting customer relationships by communicating directly in a
one-to-one interactive basis. Bowie (2013) further defines the character of direct marketing
by its ‘content,' which propose tailor-made marketing offers and communication to match
with the need of the narrowly defined market niche or as specific as an individual. The
ideal result is the readers would find the email marketing material closely related to them.
Hotel direct marketing strategy includes digital and printed marketing approach, some of
the direct digital marketing channels include SMS, fax, phone call and email. Where email
is undoubtedly the most common form of modern hotel direct marketing (Kharabanda,
2010). The major advantage of allowing hotel marketers to precisely measure the impact
through various metrics and also other benefits of low cost and fast responding time has
attracted hotel marketers to deliver marketing offers via email (Clow and Baack, 2010).
While direct online marketing has shown rapid popularity among hotel marketers, direct
printed marketing like direct postal mail should not be ignored. Providing solid material for
the customer to hold on and keep, which 33% of the respondents find direct postal mail as
the most efficient way to remember a company (NowSourcing, 2015). Besides, Simpson
(2015) suggested traditional direct mail can better reach customer due to the spam filter,
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which keeps hotel emails away from customers’ inboxes. Which has become a great
challenge for hotel marketer as over 85% of the email are spam these days (Appendix 2.7),
marketers need to craft the heading carefully, email address and content to stand out from
others and avoid spam filter. Even so, 54% of the customer reportedly felt marketers email
them more frequently than supposed and took action by reporting the email as spam,
blocking out specific senders (Fenwick and Wertime, 2013). On the other hand, as for
direct postal marketing, 80% of customer said they would open all their postal mail,
including junk mail and 79% of the readers would act on direct postal mail (NowSourcing,
2015). However, still, out of all direct marketing strategy, most hotels put most resources in
direct email marketing (Hancer and Ozturk, 2014).
2.4.1 Hotel Direct Online Marketing
As mentioned hotel marketers are now looking for approaches that could focus on specific
market niches efficiently, this need pushes the tactic of direct online marketing, which
Nykiel (2011) defines as emailing promotional letters, advertising pieces, catalogs and any
other sales-generate materials emailed to prospective customers. Hotels' marketing team
has widely adopted this approach.
However, Dan and Dan (2011) argues “Email is not a direct-mail channel,” standing in a
customer perspective, these promotional materials are junk mail which is not appreciated
and do not facilitate customer relations. Which could be explained by comparing not-tailor-
made email marketing material like the newsletter to the definition of direct marketing,
which is often described as “a customized, customer-favourable marketing offers to
carefully target individual consumers or narrowly defined segment” (Kotler, 2014; Dan and
Dan, 2011; Mullin, 2002). Hence, Lee and Johnson (2013) name this practice as “Mail
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advertising,” defined as a marketing activity which promotional material was sent directly
to the person the marketer wishes to influence. This marketing medium has been widely
perceived as junk mail or spam – commonly described as unsolicited and unwanted (Kotler,
2014; Lee and Johnson, 2013).
In the other hand, plenty of marketing researchers defend. Encouraging hotels continue to
adapt the email marketing strategy. Jenkins (2008) suggests with an accurate, detailed and
up-to-date customer list; marketer could easily target high potential consumer.
Butler (2009) pointed out with the interactive characteristic of email (like voting and
crowdsourcing), which helps facilitate customer relationship by increasing consumer
involvement with the hotel. Therefore, Kharabanda (2010) states the real impact of direct
online marketing lies in increasing brand reputation and acknowledge, a successful
marketing message would be able to create consumers’ brand awareness, causing the
consumer to remember the hotel brand, ultimately benefit to brand recognition and loyalty
(Hall, 2014). Therefore, Jenkins (2009)suggests hotel marketers should view direct online
marketing as a long-term investment, which will eventually return as consumer carry out
internal information search. As hotels that send direct marketing email constantly would
stand a better chance than those, who do not.
Baggott (2015) further praise email marketing as an effective customer communication tool
as it perfectly includes the seven elements of customer experience touch points (Appendix
2.8). Moreover, with an over 2.5 billion email users worldwide and is estimated to grow
over 2.9 billion by 2019, representing an effective communication channel reaching out to
over one-third of the global population (Appendix 2.9). Besides, Nussey (2004) stresses the
enormous potential presented in email marketing as a direct marketing channel, is that it
allows mass customization on content and timing of each message to be unique to each
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recipient. Hence, it is essential for hotel marketers to understand and know the right
customer. A previous study from Fenwick and Wertime (2013) has shown that 60% of
those who made an immediate purchase did so because the email focus on the product they
were considering previously. With the right high potential target, email marketing
campaign can bring up to 18 times the profit when comparing to broadcast campaign.
Consequently, Clow and Baack (2010) conclude, to increase response rates without
spamming, marketers have to avoid the trap of mass-mailing by pruning the prospect list
down to potential customers with the same demographic, psychographic, and behavioral
profiles. Therefore, direct online marketing strategy effectiveness highly depends on hotel
marketers, where McCorkell (2000) highlights to bring the most benefit, it is important to
introduce a purposeful involvement, content that the targeted group of consumers would be
interested.
2.4.2 3Rs model
The 3Rs model (Appendix 2.10) is developed by Nielsen, the leading global performance
management company, a measuring system to locate the connect of consumer reaction and
media exposure, identify the impactful messages and eventually help hotel marketers to
determine direct online marketing effectiveness. (Nielsen Authority, 2017). Model is built
by the belief that effective marketing would be able to deliver the right message to the right
people, shaping the target preferences and eventually drives sales (Sauro, 2015). Rather
than in a consumer perspective, the model was developed in the point of view of business
marketing. The objective of the model is to guide hotel marketers to maximize the return on
marketing investment and sales performance (Minelli, Chambers and Dhiraj, 2013).
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In a world of multi-channel online marketing, hotel marketers often find it difficult to
measure performance and determine the value of one marketing channel (Bendle et al.,
2015). Nielsen simplifies marketing effectiveness into these three stages and further
emphasize the importance of reach and resonate with the targeted audience, which if not
could cost marketers wasting 30% of their marketing budget (Nielsen Authority, 2017).
2.4.2.1 Reach
To reach is successfully reaching to not just the most people but the right audience. Hotel
marketers ensure the right message hit the right audience by a marketing practice –
targeting (Pride et al., 2014). As shown in Appendix 2.11, 67% of the hotel marketers
adopted a basic targeting approach with 2 to 5 criteria like demographics and category of
interest (GetResponse Authority, 2015). However, only 8% of hotel marketers implement
advanced segmentation (Appendix 2.12). Which surprised Leszczynski (2015), as hotel
industry present many factors that can be used for segmentation, like frequent travels versus
occasional travelers, high spending versus low expenditures, weekend versus long holidays
and much more. These factors could help hotel marketers to reach out to a much greater
potential consumer.
2.4.2.2 Resonate
As the right targeted audiences are reached, it is important to send them messages that
could resonate with them, thus, alter their attitude, influencing their tendency to buy or
trigger other marketers desired actions (Friedman, 2012). To resonate with audiences the
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message has to be relevant to the readers (Young, 2013). Nowadays, with the help of email
automation has help hotel markers to send highly relevant messages, such as sending
welcome email for first purchase and subscriber, reminding of unfinished checkout.
Logically, email automation has been widely implemented in the hotel industry with 83%
(Appendix 2.13). Brenner (2016) added to deliver a resonating message, personalization
and email automation should go hand-in-hand, as automation make personalization easier.
However, out of the 83% of hotel marketers who implement email automation, 25% of the
hotel marketer do not apply personalize content in email marketing (Appendix 2.14).
Fragasso (2013) interprets the stage of resonating as an emotional manifestation of need;
customer nowadays can feel the lack of personal touch and tell apart the difference between
a fully computer-generated marketing material and a personalized heart-warming message.
With a resonating message, the marketing material becomes relevant and involve the
readers, which act as a catalyze, urging consumer into action.
2.4.2.3 Reaction
Once reaching to the targeted customer with the resonating message, the final goal is to
create the desire consumer reaction. As Zimmerman and Ng (2015) pointed out hotel online
direct marketing is calling for a much different action, not restricted to asking for purchase.
The final marketing objectives stay to be maximizing hotel marketers return on interest.
Hotel marketers value email marketing greatly for the performance on generating ROI, with
83% believe email marketing channel has excellent or good performance regarding ROI
(Appendix 2.15).
Whereas Econsultancy Authority (2016) states when measuring ROI for email marketing,
most marketers would have adapted an attribution model as metric, some of the most
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commonly used ratios are the open rate and the click-through ratio (Appendix 2.16), which
gives hotel marketers a solid score for different online marketing channel. The hotel direct
email marketing has only recorded a 22% of the open rate with an alarmingly low click-
through ratio of 2%. Meaning only of 9% of those who open the email did click on the click
(Appendix 2.17). Noticing these data could be the factor behind why marketers had been
decreasing marketing investment in email marketing in the past five years (Appendix 2.6).
However these commonly used metric are evaluate wit purely data collected from online
customer activities. Therefore a survey would be needed to understand more on a customer
perspective.
Another positive impact that successful direct online marketing could bring is trigger reader
in conducting information search on the particular offer or hotel brand (Mihart, 2012).
McCorkell (2000) proposed curiosity can trigger consumer actions. Therefore marketers
should tell fewer inquiries in a direct marketing email, leading the individual to respond in
searching for the hotel information. Consequently, successful direct online marketing
should have consisted of bare essential and command attention and action from the right
readers. On the other hand, Peter and Olson (1996) suggest high market-share hotel brands
may discourage external search behaviors as this may result in a shift to a competitor.
Hence details of the market offer and instruction to the direct action of purchasing should
be included (Roberts and Zahay, 2013). Research from Powell (2014) supports, by
comparing Appendix 2.18 and Appendix 2.19, email marketing channel is more efficient in
driving brand direct purchasing for individual hotels than for hotel chains. Email marketing
has shown to be more efficient in brand marketing for hotel chains than individual hotels.
This has once again supported the ability direct email marketing of increasing brand
reputation and acknowledge (Kharabanda, 2010).
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2.5 Conclusion
The literature review could be summarized by recognizing the significance of direct online
marketing in hotel marketing strategy. The hotel industry, unlike other, is much sensitive to
its customers in term of their behavior, preferences, and needs. Adapt to the social change;
hotels need to constantly evaluate their marketing strategy, making sure it is closely related
to the target audiences in an accessible way. Nowadays, empowered with the well-
developed Internet and wide variety choices of hotel types, customers have established their
very own lifestyle and priority, requiring hotels marketers to develop a more detailed,
customer profile. With customers need a more personal touch, bring the demand for
personalized services and offers, requiring direct communication with the hotel and
individual customer. To provide fast yet customer-favourable information, hotel marketer
calls for online marketing email as an effective communication channel. However, with the
abusive use of email marketing in the hotel industry, hotel marketers must develop a clear
customer profile and list, answering each specific needs and desire with a tailor-made
special offer. Consequently, carefully customized content and adapting a variety of
techniques are the key to an efficient hotel online direct marketing strategy.
Also, given the wide range of channels provided on the internet, it is important for hotel
marketer to decide the most suitable online marketing channel, taking into consideration of
their specific target customers behavior.
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Chapter 3. Methodology
3.1 Introduction
This chapter is to define adopted philosophy, approaches, strategies, methods and
techniques and connect them to this research in a methodological approach. A defined and
comprehensive research methodology allows researcher answer questions validly,
objectively, accurately and economically. A Gantt Chart (Appendix 3.1) is established to
organize time resources better. Furthermore, research supervisor is assigned to each
student, where meetings were held regularly with progress reports (Appendix 3.2 - 3.7) kept
each time for more systematic progress tracking
Sekaran (1992) defines research as “a systematic and organized effort to investigate a
specific problem that needs a solution.” Including some characteristic of marketing
research, but fail to address the complexity of the research purpose. A much broader
concept was introduced by Preece (1994), adding the idea of refining or testing a system of
knowledge. Hence, further defining research as “The increase in knowledge may be
something entirely new or consist of checking, testing, expanding and refining idea which
are still provisional.” (Finn, 2000)
This research would analyze direct marketing from an objective perspective. Under
this point of view, this research would be an explanatory research, which would be
developed to explain reasons for the relationship of online direct online marketing
and its success is formed (Kumar, 2005).
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3.2 Research Philosophy
Saunders (2012) describe research philosophy as an assumption on how researcher views
the world. The assumption consequently supports the chosen research strategies and
methods as illustrated in research onion (Appendix 3.8). Crotty (1998) further explain
research philosophy as researcher assumption on human knowledge and nature of realities,
thus shaping researcher’s understanding to research questions, the method used and
findings interpretations. Also, epistemology is depicted as a brand of philosophical theory
which studies what constitutes adequate knowledge and the nature of knowledge (Saunders
et al., 2012). Hence, Willis, Jost and Nilakanta (2009) present positivism as an
epistemological position that works with social reality. Consequently, Finn describes
positivism research seeks to explain human behavior through cause and effect.
Epistemology has been widely adopted by researchers in marketing related study (Gray,
2016). This research on direct marketing would be conducted utilizing the considerable
amount of secondary data and conducting surveys. To examine the effectiveness of hotel
online direct marketing would work around social reality observations, which Saunders
(2012) suggested that positivism would be needed, allowing the researcher to draw law-like
conclusion closely relating to the nature of science. Also, positivism emphasizes the
importance of obtaining hypothesis from theory (Taylor, 2017), which fits with the
deductive approach of this research.
3.3 Approach
The research approach is a process of which researcher adopted to work with theory,
method, and evidence (Finn et al., 2000). Saunders (2012) proposes that deductive
approach is widely adopted in research relating to the developed theoretical, conceptual

16
framework, consequently tested using data. Finn (2000) further described as "hypothesis
testing approach"(Appendix 3.9), where hypothesis, data collection, data analysis and
research findings are developed base on theory. Both Finn (2000) and Saunders (2012)
suggested that deductive approach is commonly associated with quantitative data and
positivism.
Deductive would be utilized in this research, as it supports positivism scientific nature
belief by developing theory through observation (Kumar, 2005), generating the needed
quantifiable data. Consequently, data would be collected, reviewed, analyzed and tested
against known knowledge developed from the literature review. Hence, deductive research
approach could assist the researcher in justifying theory and analyzing quantitative data.
Beside Brown (2008) argues deduction is commonly used in the interpretative stage of
marketing analysis, where statistical conclusions would be drawn from tabulation and data
analysis gathered. Accordingly, a market analyst could interpret into business strategy.
Correspondingly, this explanatory research of studying the cause and effects of online
direct marketing.
3.4 Research Strategies
Saunders (2012) interpret research strategies as methods researcher employ to answer
research questions, directly related to research philosophy and subsequently affecting the
choice of method for collecting and analyzing data (Denzin and Lincoln, 2005).
Quantitative research, as one of the research strategies, is suggested to be primarily related
to survey research strategies (Saunders et al., 2012), which supported by Gary (2016)
illustrating a major characteristic of quantitative research as allowing examination of
relationships between variable by achieving measurable numerical data through statistical

17
techniques. Where Hoque (2006) states, most quantitative researchers utilize questionnaire
strategy, which gives the researcher the control to data, ensuring its validity.
Considering research adopted a deductive approach, which required a rigid process,
quantitative research strategy allows the researcher to impose artificial control over
research setting to interpret from systemic data like a survey, which provides researchers
with a customer perspective It supports positivism by generating numerical data that can be
quantified (Finn et al., 2000), thus adhere its scientific belief. In a practical approach, when
proper sampling is done, the sample can be generalized to a larger population (Rubin and
Babbie, 2009), representing population in lower cost (Saunders et al., 2012). Questionnaires
would be distributed online through email and social media in the aim of studying the
effectiveness of hotel direct online marketing.
3.5 Research Data Collection
In this research, both primary and secondary data would be collected. Wrenn (2013) depicts
primary data as the data gathered for the first time by the researcher for each research.
Whereas secondary data is presented as data collected and recorded by someone else other
than the researcher previously for another purpose except from the current research
(Zikmund and Babin, 2006). Kulper (2009) emphasized both types of data are important,
best practice would be consulting from secondary data, which provide information, narrow
the scope, followed by primary data answering questions for a unique environment.
Consequently, both would be collected in the data collection process.
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3.5.1 Secondary Research
Secondary Data include raw data and published summaries, which can be further analyzed,
providing knowledge, interpretation or conclusion (Bulmer et al., 2009). Related secondary
data was gathered electronically from the University of Derby, Emerald Insight online
database, and the library of IHTTI, School of Hotel Management.
Patzer (1995) stresses the significance of secondary data towards marketing research,
assisting hotel marketers in making decisions. Secondary data is needed to provide essential
hotel industry background information and context on the research (Kolb, 2008).
Furthermore, the aid of existed information could reduce reliance on primary data, lowering
related cost. Consequently, help researcher in planning primary data collection.
3.5.2 Primary Research
Saunders (2012) define primary research as data collected specifically for the research
project being undertaken. Cornering the primary data for this topic, carefully structured
self-completed questionnaire will be distributed online to email users for the purpose of
finding the effectiveness of hotel online direct marketing (Appendix 3.10).
Primary data is consequential to this research as these data are collected particularly for this
research project focusing on Hong Kong hotel direct online marketing which has not been
conducted. Therefore primary data is needed for consistency with the research question and
objectives (Ghauri and Gronhaug, 2005). Moreover, as a marketing related research,
precise demographic information like year of birth, gender and nationality about a targeted
group of customers is needed (Wiid and Diggines, 2010). These characteristics help
research to understand the social backgrounds of the respondents (Sekaran, 2009), which
19
cannot be obtained through secondary data. Most importantly, as an explanatory research,
studying the cause and effect of the effectiveness of hotel direct online marketing, primary
data is needed to learn people’s attitudes, allowing the researcher to know the reasons
behind consumer behavior (Gupta, 2004).
Primary data collected would be analyzed with the aid of bar chart, pie chart and
cumulative frequency table (Appendix 3.11), which allow researcher observe the general
characteristics of a particular variable (Tavakoli, 2012). From which descriptive statics like
frequency and mean would be developed for better describing the phenomenon of hotel
direct online marketing strategy, and hence allow comparison and finding relations between
each other (Sekaran, 2009).
3.6 Time Horizons
Sekaran (2009) stresses the importance of time horizon, which could bring tremendous
impact on achieving research objectives. Also, Greenwood (2006) suggested decision on
time horizon is often a trade-off between the degree of scientific rigor and resource
constraints, which decision should be made consciously based on the scope and reason of
the research. Cross-sectional is one approach of time horizon, where a researcher would
include data collected at a single point in time, studying a specific phenomenon at a
particular period (Bryman and Bell, 2011).
Saunders (2012) stresses time frame is closely related to the choice of research
methodology, suggesting cross-sectional design is highly associated with the survey.
Correspondingly cross-sectional time horizon is adopted in this survey research. Cross-
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sectional could present the patterns of association, allowing researchers to examine
relations effectively, this coherent with the explanatory purpose of this research. Also,
taking the given time frame of twenty-four weeks into consideration, cross-sectional
research would be suitable for the research.
3.7 Questionnaire Design
The questionnaire is one of the data collection method under survey research strategy,
consisting of a pre-determined set of questions (Sekaran and Bougie, 2009). Bryman and
Bell (2011) has demonstrated the advantage of the questionnaire as efficiently minimizing
the cost and time of administrating, where Finn (2000) added the high reliability of data and
the capability of generating random samples from a large population (Appendix 3.12).
Hence, the purpose is to obtain reliable and valid information on the effectiveness of hotel
online direct marketing which is representative of the population of Hong Kong hotel direct
marketing audience, where supported by Dahlén, Lange, and Smith (2010) the
questionnaire is the most important source of information for marketing decision-making.
An analytical questionnaire would be adapted to seek an explanation for observed phenom
of direct marketing (Finn et al., 2000), corresponding to this explanatory research, where
Curtis (2011) further states analytical is often related to deductive approach and designed to
test hypotheses. Collis (2003) also suggested questionnaires often associate with positivistic
methodology, where closed-end questions should be adapted, assisting respondents to
quickly make decisions (Sekaran and Bougie, 2009), ensuring the info needed is obtained
and eliciting factual data could be easily coded and analyzed (Kumar, 2005).
21
The sequence of the question is arranged by funnel approach (Gravetter and Forzano,
2003), respondents would be led from general nature questions to more specific and
progressively more challenging one, facilitating easy and smooth progress. Finishing with
demographic questions to portrait the sample characteristic, when respondent would believe
in the legitimacy and genuineness of the survey (Oppenheim, 2000).
3.8 Sampling
Sampling is defined as a process of participants selecting in research (Finn et al., 2000),
which is fundamental element of positivistic study (Collis and Hussey, 2003)
Non-probability sampling design would be adapted to this research as it is widely used in
market research and also considering the limited time and money resources. Which the
sample is selected by researcher knowingly. Under which, convivence sampling and
snowball sampling would be utilized, former is which information was collected from the
population of Hong Kong Internet users who are conveniently available, which allow links
to be forged with present findings in the direct online marketing area. Snowball sampling
one is a process which sample is built up by asking an initial set of informants to supply
contact of another potential sample, which could facilitate in finding the average
representative individual (Appendix 3.13).
Approximately 80%, 5.7 million of the Hong Kong population are active internet user, with
knowledge and experience of hotel direct online market (2016). The researcher does
acknowledge the limitation of low generalizable of non-probability sampling design to a
given sampling frame; findings may not be able to represent the population. With the given
resource constraints researcher has demonstrated the effort of maximizing the reliability
22
and validity of the research as suggested by Denscombe (2010) small-scale research usually
involve 20 to 100 sample, where this research 103 users would participate in the research
via taking part in the online survey reached via online resources like email.
3.9 Pilot Study
The pilot study would be carried out to assure questionnaire questions could operate
smoothly and obtain necessary data (Bryman and Bell, 2011), which is particularly
important in questionnaire due to the absence of interviewer. Hence, confusion cannot be
explained (Brace, 2008). The advantage of pilot study has been proven, include assisting in
determining the sufficiency of instruction to completion of the questionnaire (Snijkers et
al., 2013), spotting questions which do not form variable and evaluating the flow of the
questionnaire (Saunders et al., 2012). The pilot study would usually be carried out by
finding a small set of respondents who are comparable to research sampling frame to try the
questionnaire draft (Presser et al., 2004).
Isaac and Michael (1981) suggested minimum ten samples are recommended for pilot
studies. Hence ten respondents of the similar trait of the sample population tested out the
questionnaire draft (Appendix 3.14), commented and proposed suggestions (Appendix 3.15
-3.24). The researcher would improve the clarity and quality of the questionnaire after
careful analysis of the suggestions. Hence an enhanced final version of the questionnaire
(Appendix 3.25) can be handed out.
3.10 Reliability, Validity and Limitation
Research with high reliability would generate consistent findings when carried out by
another researcher on another occasion (Saunders et al., 2012). Whereas Bryan and Bell
23
(2011) and Collis and Hussey (2003) emphasized research reliability should be highly
valued in quantitative and positivism studies. When collecting reliable data for the research,
both primary and secondary data are needed, which the data gathered would be able to help
researcher achieve the research objectives. As for primary data, the questionnaire is
carefully designed, utilizing close-end question to study the cause and effect, assuring its
internal validity (Finn et al., 2000).
Where Erchul (2014) stresses the significance of validity, affecting the integrity of
conclusion drawn from the research. Credible research finding would be generated with
high preciseness and accuracy, consequently reliable and valid data. Additionally, by
adapting all mentioned research methodology, with the right research technique could
ensure the reliability and validity of data and consistent analyst.
The limitations are the potential weaknesses that surface and are out of the researcher’s
control (Bryman and Bell, 2011). One of the biggest limitation of the research is the
geographical distance between Hong Kong, the research focusing city, and the researcher,
who was in Switzerland. Moreover, due to resource constraints, a limited 103
questionnaires could be analyzed, comparing to 5.7 million population of Hong Kong email
users, the small sample size would undermine the reliability of marketing research (Crouch
and Housden, 2012).
3.11 Ethical consideration
Ethics in research is a code of conduct and behavioral, social norm expected from
researcher when conducting the research. Banister et al. (1997) have stressed the
importance of ethical concern which must be part of the foundation, before research design.
24
The researcher would minimize violation to the ethical principal. Concerning primary data
collection, the survey would be carried out anonymously; no individual identification
would be exposed when the data is being presented. Bhaskaran (2010) suggested with
online survey strategy, to ensure participants anonymity, not violating participant identity
should also include one's IP address. Consequently, research participants’ IP address would
not be stored in this research.
Also, Silver (2013) stress the importance of consent in marketing research, which should be
well-communicated between researcher and research participants. In this research,
participants would be informed before carrying out the survey through the paragraph at the
start of the questionnaire. As the research is aimed to find the effectiveness of online direct
marketing of hotel industry, no private personal sensitive info with be involved, minimizing
the potential harm to participants.
3.12 Conclusion
The methodology is established to develop a non-bias process for the research, allowing the
research to achieve the set aim and objectives of investigating the direct online marketing
strategy and its efficiency as a marketing channel. The research took a deductive approach
and epistemology research philosophy. Which allows the researcher to test theory from
secondary data against primary data collected from the Exploratory survey, which the data
would be further elaborated with statistical analysis. All research process would be carried
out in the cross-sectional approach of time horizon of twenty-five academic weeks. An
analytical questionnaire is designed to ensure the collected data would achieve the aim and
objective through multiple questions and scale questions; the survey has run through a pilot
study and was updated before online distribution to increase the reliability and validity of
25
the research. However, there are limitations faced in this research, including the geographic
barrier between the researcher (Switzerland) and the research focused destination – Hong
Kong and also the limited resources available for primary data collection, affecting the
research consistency. Besides, the research is conducted with ethical consideration,
protecting the right of respondent which would not be violated and regulations on
anonymity and data security was followed strictly.
Chapter 4. Findings and Analysis
4.1 Introduction
A hotel online marketing related survey had been conducted from 9th May 2017 to 17th June
2017, where 103 responses have been collected online. The questionnaire was distributed
via Hong Kong travel and hotel related forum, social media groups, and emails to reach
possible online target customer of Hong Kong hotel marketer.
26
The questionnaire is constructed based on established research aim and objectives, covering
the target group characteristic, including its demographic and preferences. Also, questions
are designed to evaluate the effectiveness of Hong Kong hotel online marketing strategies
base on the 3R model. The last part focuses on hotel email marketing, analyzing its
effectiveness in delivering personalized messages and triggering following action.
Correspondingly, questionnaire data were categorized before being analyzed. From which
descriptive statics like frequency and mean would be developed for better describing the
phenomenon of hotel direct online marketing strategy, and hence allow comparison and
finding relations between each other (Sekaran, 2009). This chapter would be concluded
with an overview of the result and the effectiveness of hotel direct online marketing.
4.2 Social-Demographic Profile
The profile of respondent is represented by its demographic characteristics which often
helps marketer segmenting and targeting specific groups of customers. As for this research,
identifying the target market is not one of the research objectives, yet certain demographic
data like age, gender and nationality is necessary to describe the sample (Denscombe,
2010). These personal data help research to understand the social backgrounds of the
respondents (Sekaran, 2009).
In the 103-questionnaire collected, 42.7% were males while 57.3% were female (Appendix
4.1). Referring to Appendix 4.2, respondents had been categorized into four age groups
each with ten years interval. Presenting the age pattern by the twenty-year interval, the age
pattern is submitted by the majority of 58% in the age group of twenty-six to thirty-five.
Followed by 23% fall into the group of thirty-six to forty-five. With a minimum of age 18
and maximum of 52, meaning all respondents are part of the working-age population,
27
within the age of 15 to 64 (Economic Co-operation and Development, 2017). To
understand the cultural background and the nationality of respondents were also asked, as
the research focus on Hong Kong hotel, most questionnaires were presented by Hong
Konger with 52.5% and 24.3% submitted by Chinese. The remaining 23.4% of the
respondent were from Australia, Austria, Belgium, Bolivia, Brazil, Canada, Kenya,
Lebanon, Malaysia, New Zealand, South Africa, Switzerland, Taiwan, Thailand, and
Vietnam in alphabetical order (Appendix 4.3). These data gave researcher an image of
Hong Kong hotel users.
4.3 Current Hotel online marketing strategy
Hotel marketer has been investing more on online advertisements, spending over half of the
marketing investment in the online marketing channel, which has been well presented by
the result of 81% of the responded aware of online hotel advertisement (Appendix 4.4).
However, even the 81% of the respondents were aware of the ad, only 75% of the
responded reportedly have read those advertising messages (Appendix 4.5). This support
the claim made by Kharabanda (2010), suggests users have lost their interest in the
overflow of banner online advertisement, which reflects in the ignoring behavior or taking
on the proactive action of installing ad-blocking software (Rodgers and Thorson, 2017).
Hence, hotel marketers are changing the focusing to another online advertising channel like
email and social media. Referring to Appendix 2.6 while most investment still spent on
search engine marketing, a gradual increase in spending in social media and online video
has been recorded over 2011 to 2015. Correspondingly, when asked which online
marketing channels are considered significant, a high percentage of 64% of the respondents
believe the effect of social media presence to hotel brand marketing. However, as for the
28
second most chosen marketing channel, instead of an online video is online reputation
management (54%) (Appendix 4.6). Which could be interpreted as consumers are trusting
more on online word-of-mouth from an online traveling agent like TripAdvisor than hotel-
controlled-information (Gretzel et al., 2007), as respondents weighted it over other hotel-
controlled marketing strategies. Meanwhile, it is worth noticing that the least respondents
chose search engine optimization (36%) when hotels spend the most online marketing
budget. Suggesting hotel marketers might need to re-evaluate the effectiveness of different
online marketing strategies.
Research has also shown that most respondents were exposed to hotel email marketing, as a
high percentage of 74% of the respondent reportedly had received hotel email marketing
material, like newsletters. However, have the Hong Kong hotel marketers reaching out to
the audience in the right channel? Hence, a follow-up question is designed asking
respondents which online marketing channel they would consider as useful. The result is
alarming; email marketing is one that least respondents had chosen (31%), as compared to
websites with 68%, online campaigns with 54% and online reputation management with
50% (Appendix 4.7). Indicating Hong Kong hotel marketer should consider reducing
marketing investment in email marketing, where hotel marketers had over-estimated the
performance of email marketing, this could be caused by using the wrong attribution model
when conducting email performance evaluation. To further understand whether customers
nowadays have strong preference over direct online marketing, the following part is
developed to look into customer preference to help hotel marketer decide whether or not
continue to invest in direct online marketing.
29
4.4 Customer preference
Many marketers have pointed out the excessive use of email marketing has led to customer
disfavor on electronic marketing material. As discussed by Lee and Johnson (2013) the
direct email marketing material, like the newsletter is a marketing activity sending
advertising material directly to person marketers wishes to influence, which is often
described as unwanted by the customer (Kotler, 2014). However, based on research
findings, survey participants do not find direct marketing email as extremely annoying,
with most respondents choosing 7 (Appendix 4.8) with a merely over 30% of the
respondents chose below 5 expressing their unappreciation toward hotel direct marketing
email, and a mean of 5.6 (Appendix 4.8.1), proving that the most consumers find the
marketing emails favorable. Representing that hotel marketer nowadays have been able to
generate less promotional more informative marketing email and sending potential
customer at the right time (Fenwick and Wertime, 2013)
Consumer appreciation toward hotel email marketing strategy was further illustrated in
Appendix 4.9.1, where 45% of the respondents agree to strongly agree on the efficiency of
hotel email newsletter in communicating with individual customers, this proves customer
acknowledge the effectiveness of email regarding speed and reaching out the target
customer. Meanwhile, a significant 30% of the respondent disagree (Appendix 4.9), this
could be explained as most hotel marketers adopted newsletter as email marketing
communication (Appendix 1.1), where readers and marketers do not have interaction, hence
do not facilitate customer communication. Whereas Mullin (2002) asserted e-newsletter is
not tailor-made, do not fit to called as direct marketing. Yet, the result (Appendix 4.10) has
shown no significant value that can prove that current hotel direct marketing material as a
mass-product. 49% of the respondents agreeing that current hotel direct marketing materials
are highly customized. This coherent with what Nussey (2004) suggests, that hotel
30
marketers been taking advantage of email over other direct marketing strategy for its easy
customized content and control of timing. Presenting as a recognition for the automation
programming, helping marketing to reach out to the customer promptly with the closely
related message (GetResponse Authority, 2015). However, the 32% of respondent
reportedly disagree to strongly disagree (Appendix 4.10.1) that hotel direct marketing
material very customized could be the result as the hotel marketers who adopted
automation program but do not carry out personalization technique on email marketing
material (Appendix 2.12, 2.13). These non-tailor-made marketing materials would not be
appreciating (Dan and Dan, 2011).
Consequently, lead to the argument regarding customer relationship. As mentioned by Dan
and Dan (2011), emphasizing in a customer point of view, promotional material such as
email newsletter is not appreciated, hence, do not facilitate customer relation. However,
logically following the result from Appendix 4.8, 4.9 and 4.10; most 37% of the
respondents rated level 6 in term of efficiency of hotel direct email marketing in building
customer relationships (Appendix 11). Accumulating a whopping 67% of the respondents
rate the efficiency as high (level 6 or above) (Appendix 11.1). Once again proving the
ability to utilize email marketing to facilitate consumer relationship and brand
acknowledgment (Kharabanda 2010). Due to a significant 33% of the respondent rated the
efficient as 5 or below dragged down the mean to a 5.6 (Appendix 11.1), this could
represent hotel marketers could go the extra miles in direct online marketing regarding
customer relationship.
Meanwhile, hotel marketers have also faced challenges in email marketing. Fenwick and
Wertime (2013) has stated spam filter function has presented to be one of the obstacles for
hotel marketers, preventing marketing material from getting into customers’ inboxes. In
accordance, the survey has shown 78% of the respond has spam block activated in their
31
email account (Appendix 4.12), which may block hotel marketing email from getting into
target customers’ email inbox. Consequently, Simpson (2015) claim direct postal
marketing would be better at reaching the customer. Supported by NowSourcing (2015),
which found most (80%) customer would open all postal mail including junk mail and
some (33%) claim postal mail as the most efficient strategy for them to remember a
company. A similar finding from survey supported these research, as respondents were
asked to compare direct email marketing to direct postal marketing. Over half the most
respondent (52%) admitted they pay more attention to postal marketing than email
marketing (Appendix 4.13), implying the influence of direct postal marketing is increasing
once again, as for many customer hearing ‘You have got mail’ is no longer a happy sound.
Meanwhile, with a cumulative frequency of almost 50% of the respondent reported ‘neutral
to strongly disagree’ that postal advertisement could catch more attention, there are still
potential that direct online marketing could outgrow postal advertising in the future
(Appendix 4.13.1). Therefore, to help hotel marketers to understand the value of direct
online marketing, the following part is developed to investigate its performance, and hence,
help hotel marketers in marketing investment planning.
4.5 Performance of Hong Kong hotel online direct marketing strategy
The 3R model from Nielsen would be adapted to evaluate the performance of Hong Kong
hotels online direct marketing channel. Questions were developed base on the consumer
reach, resonate and reaction. Consequently, locate the connect of consumer reaction and
media exposure, identify the impactful messages and eventually help Hong Kong hotel
marketers to determine direct online marketing effectiveness.
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4.5.1 The effectiveness of reaching to the right customer
As mention, reaching is about reaching the right audience with the right message. Direct
marketing email should be sent to a small group of targeted customers of high potential,
sharing a similar demographic and interest (GetResponse Authority, 2015). The ideal result
is the readers would find the email marketing material closely related to them. Therefore, a
question was designed to ask respondents if they found the marketing email relevant to
them as an individual. In which, a high percentage of those surveyed (74%) had shown
positive perception to Hong Kong hotel’s email marketing, claiming most emails are
relevant (Appendix 4.14). Proves the Hong Kong hotel marketers have been able to
precisely categorize their customer, enabling them to send highly relevant marketing
material to the individual.
4.5.2 The effectiveness of creating resonate
With a resonating message, the marketing material becomes relevant and involve the
readers, which act as a catalyze, urging consumer into action. McCorkell (2000) highlights
to bring the most benefit from direct online marketing; it is important to introduce a
purposeful involvement, content that the targeted group of consumers would be interested.
Consequently, a question is designed to understand what Hong Kong hotel consumers
concern when reading hotel direct email marketing material, in which most respondent
shows interest in information on discount with 66%, with information about package come
second (58.3%) (Appendix 4.15). The result demonstrates Hong Kong hotel consumers
have a high concern in price-related information. Therefore it would be of most efficient for
Hong Kong hotel marketers to pique potential consumers’ interest with a generous offer.
furthered evaluate Hong Kong hotel direct email marketing effectiveness, a following
question was asked whether respondents find the email content useful, barely over 15% of
33
the respondent disagreeing with the usefulness of the content (Appendix 4.16), while a high
percentage of 57% of the respondent agree to strongly agree that the content of online
direct marketing material information is of use to them (Appendix 4.16.1). Implying that
Hong Kong hotel marketers have well understood their target potential customers’ needs
and interests, and can deliver marketing materials that are of use to the individual.
4.5.3. The effectiveness of generating reaction
As mentioned the purpose of delivering resonating messages is to trigger action. Hence,
survey questions were designed to understand what would be the fueling information
towards patronizing Hong Kong hotels. In which respondents had shown to be most
influenced by visualizing information like photos of service or product and customer
review, both came out first with 67% (Appendix 4.17). Surprisingly, unlike the types of
information that most respondents would like to see (Appendix 4.15), information on
‘discount’ and ‘packages’ has a relatively low percentage of 43% and 41%
correspondingly. Presenting as an ominous sign for Hong Kong hotel marketers, as online
customer review has out-weighted over hotel provided marketing offers. Which could be
explained by that travelers are now trusting more on online travel community opinions then
marketers-controlled messages (Gretzel et al., 2007).
The first rule and the final goal of direct online marketing are generating the desired
reaction, hence a call for action element is often observed (Coussement, Bock and Neslin,
2016). As Zimmerman and Ng (2015) pointed out hotel online direct marketing is calling
for a much different action, not restricted to asking for purchase. Hence three questions are
designed to study the effect on Hong Kong hotel email marketing effectiveness regarding
trigger consumer action. In Appendix 4.18, respondents were asked whether they feel
34
motivated to carrying out information search about a hotel when receiving its direct
marketing email. More than half (54%) of the respondent agree to strongly agree that they
were motivated to search for that particular hotel because of the email (Appendix 4.18).
Which would prove Hong Kong hotel marketers are successful in sparkling reader’s
curiosity, leading them to search for information about the hotel (McCorkell, 2000). A
cumulative frequency percentage of 49% of the respondents do not agree (Neutral to
Strongly disagree) they were motivated to search for further information (Appendix 4.18.1).
They could be simply not interested, or the message has already included all information
they want to know, hence losing the motivation of taking further action.
The following question on how likely would respondents participate in hotel marketing
campaign like social media campaign or registering an account, under the effect of reading
its directing marketing email. With most likely as 10, the mode is 6, with 30% of the
respondent choosing (Appendix 4.19). However relatively high percentage of 32% of the
respondent choosing below the average of level 5 (level 1 to 4), lowering the mean to a 5.3
of likeliness in participating related marketing campaign (Appendix 4.19.1). A similarly
concerning result has been recorded for the question in understanding the level of influence
of hotel email marketing material towards consumer purchasing decision. While resulting
in a mode of 6 (29.13%) (Appendix 4.20), 33% of the respondent acknowledge a low level
of impact (level 1 to 4), ending the result with a mean of 5.5 (Appendix 4.20.1).
Corresponding with the study carried by Fenwick and Wertime (2013), of which 60% of
the consumer believe that purchase was made because they were already considering, the
email just happens to be focusing the same product. Meaning current direct online
marketing might not be strong enough in instilling consumers’ desire. Therefore, the
consumer would credit other sources for triggering their consideration of the product/
service from the first place.
35
However, while direct online marketing may have lower influence regarding immediate and
straightforward reaction, direct online marketing has shown the impact on readers in a long
term. Hall (2014) stresses the importance of developing brand identification through direct
online marketing, as it not only draw attention to one particular marketing message, a
strong direct online marketing message would be able to create consumers’ brand
awareness, causing the consumer to remember the hotel brand, ultimately benefit to brand
recognition. Proven in this research, as 55% of the respondents agree they were made more
aware of a hotel brand when they constantly receive email newsletters from the hotel than
those who do not that (Appendix 4.21). Generating a high cumulative frequency percentage
of 57.3% of respondent ‘agree to strongly agree’ to its influence (Appendix 4.21.1). Hotel
marketers should view direct online marketing as a long-term investment, which will
eventually return as consumer carry out internal information search. As hotels that send
direct marketing email constantly would stand a better chance than those, who do not.
4.6 Conclusion
The result from primary result has covered the topic in the perspective of a Hong Kong
hotel marketer, in the aspect of identifying Hong Kong consumers’ preference and the
aspect of performance evaluation of online marketing strategies which Hong Kong hotel
marketers have adapted. Where are more focused efficiency analyze has been made
centering online direct marketing using the 3R model, which should be more widely
adapted to measure all marketing channels by hotel marketers, to make the most of the
marketing investment. Participants of this research show a fair proportion in both genders, a
much diverse age-group, with a rather Hong Kong focused demographic. The preference of
consumer has long been studied by hotel marketing when developing online marketing
36
plans, so marketers can customize their marketing plans according to consumers’ needs and
stay relevant. In which, the consumer has shown little patient in direct email marketing as
compared to another online marketing channel. On customer pre-stay experience, hotel
marketers should always remember online direct marketing is meant to be a tool for
building exclusive customer relations with the selected market niches. Besides, respondents
had shown a keen interest in prince-related information, like promotion, packages, and
discounts. Moreover, they recognize the impact of online review and photo towards their
decision of patronizing a hotel. Hoteliers should understand their worrying guest by
proving trustworthy, showing commitment to delivering promised quality of service and
product. Also, pay more attention to handling online review and complaints. Concerning
the performance of hotel direct online marketing practice, the result shed lights on the low
recognition readers gave to email marketing regarding assisting them in purchasing
decision-making. However, marketers should not ignore the ability to maintain consumer
relation and its contribution to improving individual brand recognition. It is recommended
that to achieve marketing objectives, hotel marketers should follow the 3R guideline when
establishing online direct marketing strategies and constantly evaluate by finding the
connection between marketing exposure with consumers’ actions.
Chapter 5 Conclusion and Recommendations
5. 1 Conclusion
The hotel industry as one of the fastest changing industry, where the industry is going
through a trend of segmenting hotels focusing on a specific group of customers. Hotels
nowadays are facing the fierce competition and evolving customer expectations for a
technological and personal experience. The aim of direct marketing is to address these
37
issues and maintain strong customer relationship, eventually achieving business and
marketing objective.
Out of all direct marketing strategy, direct email marketing has the absolute advantage in
term of cost and time efficiency. Hence it has been widely adopted by hotel marketers.
When evaluating Hong Kong hotels direct online marketing strategy base on the 3R model,
while it has shown good performance in resonating with readers, its efficiency regarding
calling potential consumers into action is relatively low when comparing to another online
marketing channel. Consumers are getting less influenced by email marketing when
comparing to another marketing channel. Therefore, hotel marketers might need to re-
evaluate the current direct online marketing strategy or allocate less marketing investment
in direct online marketing.
Besides, the consumer had found valuing more on online word-of-mouth. Hence, hotel
marketers should pay extra attention to online reputation management, which is having
increasing influence to brand image. Also, the power of social media is also not to be
overlooked, as customers have highly recognized its power. However, hotel marketers
should still employ direct online marketing strategy as a tool for building a long-lasting
customer relationship, which increases consumer involvement, consequently, benefit the
hotel in the long run.
The ever-accelerating popularity of internet use in daily consumer life has brought hotel
marketers inevitably investing more on online marketing. With the advantages of easily
sending highly customized marketing message, it is unlikely that email marketing would be
of useless in the close future. Therefore, to achieve a high return on investment through
email marketing, it is best for hotels marketers to have a better understanding of the target
market’ needs in a view to trigger consumers’ action and develop a more accurate database
38
to better focus on the consumer with high potential. From research finding, shows that
consumers are highly motivated by price-related marketing offer, photo and most
importantly, online consumer review.
In conclusion, it would be certain that online direct marketing is a great tool to build and
maintain a relationship with the potential customer. Therefore, should be developed as a
tool for shaping the hotel brand’s image in consumers’ memory, which would be of great
use to increase the chance of standing out from competitors. Especially when consumer
conduct internal information search, elevating possible alternatives.
5.2 Recommendations
For further development of the research topic, it is suggested to expand the primary
research by increasing the questionnaire sample size with a broader range of nationality
diversity rather than focusing only Hong Kong consumer. Moreover, future research could
elevate the efficiency of digital marketing channel using attribution model (e.g. single
source: post click/ last-click attribution model), finding the right evaluation metric could
give hotel marketers a much clearer view into understanding the value of different
marketing channel.
39
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51
Appendix
Appendix 1.1 Email marketing communication strategy adopted by different industries
Source: GetResponse (2016). The State of Email Marketing by Industry. GetResponse.
52
Appendix 2.1 Global Hotel Industry Growth
Source: IBISWorld (2017). Global Hotels & Resorts: Market Research Report. IBISWorld.
53
Appendix 2.2 Hotels segmentation percentage
Source: Hotel News Now (2014). The 2015 Big Brand Report. Hotel News Now.
54
Appendix 2.3 Global Brand and Non-brand hotel percentage
Source: Hotel News Now (2014). The 2015 Big Brand Report. Hotel News Now.
55
Appendix 2.4 Hotel Marketing Customer Segmentation
Source: IBISWorld (2017). Global Hotels & Resorts: Market Research Report. IBISWorld.
56
Appendix 2.5 Ads spend by channel (online verse offline)
Source: Powell, T. (2014). The U.S. Hotel Advertising Marketplace: Industry Sizing and
Trends 2015. PhoCusWright White Paper.
57
Appendix 2.6 Online ads spend by channel
58
Appendix 2.7 Total Global Email and Spam Volume for June 2017
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Available at: https://www.talosintelligence.com/reputation_center/email_rep [Accessed 23
Jun. 2017].
59
Appendix 2.8 Seven elements of customer touch points experience
Source: Stein, A. and Ramaseshan, B. (2016). Towards the identification of customer
experience touchpoint elements. Journal of Retailing and Consumer Services, 30, pp.8-19.
60
Appendix 2.9 Worldwide Email Account and User Forecast
Source: The Radicati Group, Inc. (2016). Email Statistics Report, 2015 -2019. The Radicati
Group, Inc.
61
Appendix 2.10 3R model
Source: Nielsen Authority (2017). Reach, Resonance, Reaction: Marketing Effectiveness
Simplified. [online] Nielsen.com. Available at:
http://www.nielsen.com/us/en/solutions/reach-resonance-reaction.html [Accessed 2 Jul.
2017].
62
Appendix 2.11 Industries use email targeting
63
Appendix 2.12 Industries use advanced segmentation
64
Appendix 2.13 Industries adopt Email Automation technique
Source: Source: GetResponse (2016). The State of Email Marketing by Industry.
GetResponse.
65
Appendix 2.14 Industries adapting personalize email marketing technique
66
Appendix 2.15 Industries marketers rating on email marketing return on investment (Result
show Excellent or Good)
Source: Adestra (2016). 2016 Email Marketing Industry Census. Key Sector Report.
Adestra.
67
Appendix 2.16 Hotel Adoption of Attribution Model
68
Appendix 2.17 Email performance base on three metrics across industries
69
Appendix 2.18 Effectiveness of Online Marketing Channels in Driving Brand and Leads
for Hotel Chains
70
Appendix 2.19 Effectiveness of Online Marketing Channels in Driving Brand and Leads
for Independent Hotels
71
Appendix 3.1 Gantt Chart
Source: Self-created
72
Appendix 3.2 Independent Studies Progress Report – 14 Feb 2017
73
Appendix 3.3 Independent Studies Progress Report – 21 Feb 2017
74
Appendix 3.4 Independent Studies Progress Report – 6 March 2017
75
Appendix 3.5 Independent Studies Progress Report – 20 March 2017
76
Appendix 3.6 Independent Studies Progress Report – 10 April 2017
77
Appendix 3.7 Independent Studies Progress Report – 24 April 2017
78
Appendix 3.8 Research Onion
Source: Saunders, M., Lewis, P. and Thornhill, A. (2014). Research methods for business
students. Harlow, Essex, England: Pearson Education Limited.
79
Appendix 3.9 Hypothesis Testing Approach
Source: Finn, M., Elliott-White, M. and Walton, M. (2006). Tourism and leisure research
methods. Harlow: Longman.
80
Appendix 3.10 Main modes of administration of a survey
Source: Saunders, M., Lewis, P. and Thornhill, A. (2014). Research methods for business
students. Harlow, Essex, England: Pearson Education Limited.
81
Appendix 3.11 Group frequency distribution table
82
Appendix 3.12 Characteristics of Survey
83
Appendix 3.13 Snowball sampling
84
Appendix 3.14 Survey Draft
85
86
87
88
Source: eSurveyPro
89
Appendix 3.15 Pilot study 1
90
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Appendix 3.16 Pilot Study 2
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98
99
100
101
102
103
104
105
106
107
108
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112
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Appendix 3.25 Final survey
126
127
128
129
Source: eSurveyPro
130
Appendix 4.1 Gender Distribution
Source: eSurveyPro (2017). Summary Report: Direct Online Marketing. [online]
eSurveyPro.com. Available at:
http://www.esurveyspro.com/ReportSummary.aspx?SurveyID=396555 [Accessed 5 Jul.
2017].
131
Appendix 4.2 Age Distribution
Frequency Cumulative Percentage Cumulative

Age Category (f) (Cf) (%) (C%)
18-25 13 13 13% 13%
26-35 60 73 58% 71%
36-45 24 97 23% 94%
46-55 6 103 6% 100%
total (N) 103 100%
Maximum 52
Minimum 18
Mean 23
Mode 21
132
133
Appendix 4.3 Nationality Distribution
2017].
134
Appendix 4.4 Awareness to online hotel advertisement
2017].
135
Appendix 4.5 Number of respondents who read hotel online advertisement
2017].
136
Appendix 4.6 Effective Online Marketing Tactics for Hotel Brand Marketing
2017].
137
Appendix 4.7 Customer considered useful online marketing activity
2017].
138
Appendix 4.8 Degree of satisfaction toward hotel direct marketing email
2017].
139
Appendix 4.8.1 Analysis by categories - Cumulative frequency table

Level of appreciation (f) (Cf) (%) (C%)
1-4 32 32 31% 31%
5 8 40 7.80% 39%
6-10 63 103 61% 100%
total (N) 103 100%
Mean 5.6
Mode 7
Median 6
140
consumer
2017].
141

Column1 (f) (Cf) (%) (C%)
Disagree - Strongly
Disagree 33 33 32% 32%
Neutral 24 57 23% 55%
Agree - Strongly
Agree 46 103 45% 100%
total (N) 103 100%
Mode Agree
142
Appendix 4.10 Customization of hotel direct marketing material
2017].
143
Appendix 4.10 Customization of hotel direct marketing material
2017].
144

Disagree - Strongly
disagree 23 23 22% 22%
Neutral 29 52 28% 51%
Agree - Strongly
Agree 51 103 50% 100%
total (N) 103 100%
Mode Agree
145
consumer
2017].
146

Level of Efficiency (f) (Cf) (%) (C%)
1-4 29 29 28% 28%
5 5 34 5% 33%
6-10 69 103 67% 100%
total (N) 103 100%
Mean 5.6
Mode 6
Median 6
147
Appendix 4.12 Popularity of spam block
2017].
148
Appendix 4.13 Comparing online direct email marketing to direct postal market
2017].
149

Disagree - Strongly
disagree 21 21 20% 20%
Neutral 29 50 28% 49%
Agree - Strongly
Agree 53 103 52% 100%
total (N) 103 100%
Mode Agree
Source: Self-made
150
Appendix 4.14 Hotel direct online marketing email relevance to individual
2017].
151
Appendix 4.15 Customer-favourable information in hotel direct marketing email
2017].
152
Appendix 4.16 Usefulness of hotel direct online marketing email content
2017].
153

Disagree - Strongly
Disagree 19 19 25% 25%
Neutral 17 36 18% 43%
Agree - Strongly
Agree 67 103 57% 100%
total (N) 103 100%
Mode Agree
154
Appendix 4.17 Type of Information attract consumer using a hotel
2017].
155
Appendix 4.18 Motivating customer information search
2017].
156

Disagree - Strongly
disagree 20 20 19% 19%
Neutral 27 47 26% 46%
Agree - Strongly
Agree 56 103 54% 100%
total (N) 103 100%
Mode Agree
157
Appendix 4.19 Motivating marketing campaign participation
2017].
158

1-4 33 33 32% 32%
5 11 44 10.7% 43%
6-10 59 103 57% 100%
total (N) 103 100%
Mean 5.3
Mode 6
Median 6
159
Appendix 4.20 Hotel direct online marketing email impact on purchasing decision
2017].
160

1-4 34 34 33% 33%
5 8 42 7.80% 41%
6-10 61 103 59% 100%
total (N) 103 100%
mean 5.5
mode 6
median 6
161
Appendix 4.21 Awareness to hotel comparing hotels that send
2017].
162

Disagree - Strongly
disagree 26 26 25% 25%
Neutral 18 44 18% 43%
Agree - Strongly
Agree 59 103 57% 100%
total (N) 103 100%
Mode Agree
163

The Effectiveness of Direct Marketing A

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The Effectiveness of Direct Marketing A

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The effectiveness of Direct Marketing: A Survey of hotels in Hong Kong

Chor Man Tse

A dissertation submitted in partial fulfillment of the requirements of

the Degree of Bachelor of Arts with Honors in

International Hospitality and Design Management

IHTTI, School of Hotel Management

consumer relationship and trigger the desired reaction.

from questionnaire would test prior knowledge.

believe it causes their purchasing actions.

statistical performance evaluation.

assisted with my dissertation by giving me constructive suggestions and criticism

throughout my research study.

offering help in the library and online library researching.

1.1 Introduction ............................................................................................................................... 1

1.2 Aim and Objectives ................................................................................................................... 2

Chapter 2. Literature Review............................................................................................................... 3

2.1 Introduction ............................................................................................................................... 3

2.2 Hotel Industry............................................................................................................................ 4

2.3 Hotel Marketing ........................................................................................................................ 5

2.4 Hotel Direct Marketing ............................................................................................................. 7

2.4.1 Hotel Direct Online Marketing .......................................................................................... 8

2.4.2 3Rs model ........................................................................................................................ 10

2.4.2.1 Reach ......................................................................................................................... 11

2.4.2.3 Reaction ..................................................................................................................... 12

Chapter 3. Methodology .................................................................................................................... 15

3.1 Introduction ............................................................................................................................. 15

3.2 Research Philosophy ............................................................................................................... 16

3.4 Research Strategies ................................................................................................................. 17

3.5 Research Data Collection ........................................................................................................ 18

3.5.1 Secondary Research ......................................................................................................... 19

3.5.2 Primary Research ............................................................................................................. 19

3.6 Time Horizons ......................................................................................................................... 20

3.7 Questionnaire Design .............................................................................................................. 21

3.9 Pilot Study ............................................................................................................................... 23

3.10 Reliability, Validity and Limitation ...................................................................................... 23

3.11 Ethical consideration ............................................................................................................. 24

Chapter 4. Findings and Analysis ...................................................................................................... 26

4.1 Introduction ............................................................................................................................. 26

4.2 Social-Demographic Profile .................................................................................................... 27

4.3 Current Hotel online marketing strategy ................................................................................. 28

4.4 Customer preference ............................................................................................................... 30

4.5.1 The effectiveness of reaching to the right customer ........................................................ 33

4.5.2 The effectiveness of creating resonate ............................................................................. 33

4.5.3. The effectiveness of generating reaction ........................................................................ 34

Chapter 5 Conclusion and Recommendations ................................................................................... 37

5.2 Recommendations ................................................................................................................... 39

Chapter 6. References ........................................................................................................................ 40

Appendix 2.1 Global Hotel Industry Growth ................................................................................ 53

Appendix 2.3 Global Brand and Non-brand hotel percentage ...................................................... 55

Appendix 2.4 Hotel Marketing Customer Segmentation .............................................................. 56

Appendix 2.5 Ads spend by channel (online verse offline) .......................................................... 57

Appendix 2.6 Online ads spend by channel .................................................................................. 58

Appendix 2.8 Seven elements of customer touch points experience ............................................ 60

Appendix 2.9 Worldwide Email Account and User Forecast ....................................................... 61

Appendix 2.10 3R model .............................................................................................................. 62

Appendix 2.11 Industries use email targeting ............................................................................... 63

Appendix 2.12 Industries use advanced segmentation.................................................................. 64

Appendix 2.13 Industries adopt Email Automation technique ..................................................... 65

Appendix 2.14 Industries adapting personalize email marketing technique ................................. 66

Excellent or Good) ........................................................................................................................ 67

Hotel Chains .................................................................................................................................. 70

Appendix 3.1 Gantt Chart ............................................................................................................. 72

Appendix 3.2 Independent Studies Progress Report – 14 Feb 2017 ............................................. 73