Journal of Hospitality and Tourism

Transcription

Volume 19, Issue 2, 2014
Letter from the Editor
Articles of Special Topic
Social Networking for Employee/Management
Page 1
Communication in the Hospitality Industry
JANE F. BOKUNEWICZ
A Practical Guide to Giving Students a Competitive
Page 17
Advantage for Employment by Teaching them
Social Media Tools
BILL QUAIN, MICHAEL SCALES, & CLIFF WHITHEM
Ben and Jerry’s: How To Benefit From Being a B Corp
Page 35
XANSHUNTA L. POLK
Social Media and Technology: The Influence
Page 59
on Hawaii’s Hotels
CATHRINE LINNES, PAUL KOWALSKI, JOSEPH LEMA,
WENDY LAM & JEROME AGRUSA
Renaissance ArtsFaire’s Economic & Socio-Cultural
Page 74
Impacts on a Local Community
SIRIPORN MCDOWALL, JAY M. LILLYWHITE,
JENNIFER E. SIMONSEN
Call for Papers
Page 96
Historically and Predominantly Black Colleges and Universities,
Consortium of Hospitality Educators
Published at:
Tuskegee University
The Andrew F. Brimmer College of Business
and Information Science
Tuskegee, Alabama 36088
ISSN: 1535-0568 (print)
ISSN: 2329-9479 (online)
Volume 19, Issue 2, 2014
Editor-in-Chief
Dr. Steven R. Lonis-Shumate, Tuskegee University
Assistant Editor-in-Chief
Dr. Cynthia Mayo, Delaware State University
Dr. Ernest Boger, University of Maryland Eastern Shore
Associate Editor
Dr. Faye Hall Jackson, Tuskegee University
Executive Editor
Dr. Deanne Williams-Bryant, Virginia State University
Editorial Board
Dr. Jerome Agrusa, Hawaii Pacific University
Dr. Wendy Agrusa, Hawaii Pacific University
Dr. Wintson Awadzi, Delaware State University
Dr. Beverly Bryant, North Carolina Central University
Dr. Desmond Omotayo Brown, University of Kentucky
Dr. Rachel Chen, University of Tennessee
Dr. K.S. (Kaye) Chon, The Hong Kong Polytechnic University
Dr. Ruppert Downing, University of Illinois
Dr. Francis Kwansa, University of Delaware
Dr. Daniel Lema, University of Southern Mississippi
Dr. Karen Lieberman-Nissen, Purdue University
Dr. Li-Chun Lin, Montclair State University
Dr. Peter J. Linden, Chicago State University
Dr. Mary McCray, Virginia State University
Dr. Pender Noriega, Argosy University
Dr. Megan Johnson, Tuskegee University
Dr. David Rivera, East Carolina University
Dr. Jeremy Wolter, Auburn University
ISSN: 1535-0568 (print)
VolumeSocial
19, Issue
2, 2014
Networking
for Communication
0
Letter from the Editor
Articles of Special Topic
Social Networking for Employee/Management
Page 1
Communication in the Hospitality Industry
JANE F. BOKUNEWICZ
Page 17
Social Media Tools
BILL QUAIN, MICHAEL SCALES, & CLIFF WHITHEM
Page 35
XANSHUNTA L. POLK
Page 59
CATHRINE LINNES, PAUL KOWALSKI, JOSEPH LEMA,
WENDY LAM & JEROME AGRUSA
Renaissance ArtsFaire’s Economic & Socio-Cultural
Page 74
Impacts on a Local Community
SIRIPORN MCDOWALL, JAY M. LILLYWHITE,
Call for Papers
Page 96
Historically and Predominantly Black Colleges and Universities,
Consortium of Hospitality Educators
Published at:
Tuskegee University
The Andrew F. Brimmer College of Business
and Information Science
Tuskegee, Alabama 36088
ISSN: 1535-0568 (print)
Dear Reader:
ISSN: 1535-0568
The new academic year is nearly upon us which means that it is time for
a fresh start…a clean slate. These beginnings always bring hope of
newness. New classes, new students, new research endeavors, new
Andrew F.
Brimmer
College of
Business
and
Information
Science
methods, etc.
Many of the articles in this volume will provide faculty and industry
trainers with new methods to educate students and employees alike.
Although there was not a call for a “theme” for this edition, many of the
articles highlight social media and its uses in education and in industry.
There are also thought provoking articles that focus on current industry
trends of corporate social responsibility and economic impacts. The
findings and conclusions of these articles have practical implications for
staff, management, and faculty.
Again, I ask that you please continue to discuss publication
opportunities in the Consortium Journal with your colleagues. It is vital
that we have a steady stream of quality manuscripts under review so
that we can continue to provide readers with exceptional material.
Thank you for your support.
Sincerely
Steven R. Lonis-Shumate, Ph.D.
Consortium Journal of Hospitality and Tourism
19:2, 2014, 1-16
ISSN: 1535-0568
Social Networking for Employee/Management Communication
in the Hospitality Industry
JANE F. BOKUNEWICZ
Hospitality and Tourism Management Studies
The Richard Stockton College of New Jersey
Many hospitality organizations have readily adopted the use of Social
Networking for communication with customers but fewer are using it to
enhance communication with employees. The purpose of this study was to
evaluate the efficacy of using online social networking in a hospitality
organization to facilitate employee engagement by improving
communication between employees and management. The study was
conducted as a field experiment that was designed to assess whether or
not an employer sponsored, on-line social networking site in a hospitality
organization could create a heightened feeling of belonging among
employees potentially increasing their social capital, commitment to the
organization, and job satisfaction. The study revealed that significant
barriers existed making it difficult to achieve full participation by
employees in the online social networking site. Activity levels on the
social networking site were relatively low and participation by
management was negligible.
The quantitative analysis revealed no significant relationship between
participation in the on-line social networking site and employee
commitment to the organization. A negative relationship was found
between participation in the on-line social networking site in the
satisfaction subcategory of communication. The greatest decrease in
satisfaction post implementation was among salaried employees for
overall satisfaction and for the subcategories of communication and
Address correspondence to Jane F. Bokunewicz, Ph.D., Hospitality and Tourism Management at
The Richard Stockton College of NJ, 609.703.1946, [email protected]
Social Networking for Communication
2
rewards. Employees who participated in the on-line social networking site
experienced an increase in social capital as indicated by the number of
participants who reported new friendships, the strength of the friendship
ties, and subsequent face-to-face meetings.
The qualitative analysis revealed that although many employees believed
that an online social networking site could be an effective tool in
enhancing employee communication with management, management was
reluctant to participate because of time constraints and discomfort in
revealing personal information about oneself.
KEYWORDS Social networking, social capital, job satisfaction, commitment
INTRODUCTION
Organizations strive to communicate effectively with employees in order to create
a shared vision so that everyone is working towards accomplishing the goals and
objectives of the company. Large organizations however, face communication challenges
in reaching employees and engaging them to become productive members of a team. In
global organizations, geographic distance can physically separate employees making
communication difficult. Even in single unit organizations employees can become
isolated from each other and from top management because of hierarchical structures and
the necessity to operate on shifts.
Organization reporting lines in a hierarchy are structured so that each person has
one superior (Weber, 1966) and information flows up and down through a chain of
command within each operating department.
This can create challenges in
communicating across departmental lines and could inhibit collaboration and sharing of
ideas. In companies that operate 24 hours per day such as many hospitality organizations
for example, night-shift employees rarely have the opportunity to interact with day-shift
employees and vise versa. Additionally, executives focused on strategic planning and
long-range goals often lose contact with employees on the front line. These
communication barriers can make it difficult for organizations to form a cohesive team
with employees working together to advance the companies mission and vision.
Traditionally, many organizations have relied on communication methods like
memos, flyers posted on bulletin boards, and employee newsletters to communicate
important information to employees. In recent years technological advances such as email, voice messages, and company intranet sites, have replaced or supplemented these
Bokunewicz
3
traditional methods but even these newer, computer mediated communication methods
are largely one directional and do not facilitate employee interaction and engagement.
On-line social networking has emerged as a new platform for communication in
organizations, primarily as a vehicle to communicate with customers and more recently,
as a vehicle for communicating with employees As on-line social networking evolves as
an emerging area in organizational communication research is needed to explore its
effectiveness.
LITERATURE REVIEW
Recent developments in computer-mediated-communication have led to adoption
of social networking applications in organizations in the US and elsewhere. These social
networking applications have been shown to increase and promote informal relationships,
information sharing, and learning in organizations. Large companies such as Deloitte,
IBM, Microsoft, Best Buy and Humana have implemented employer facilitated social
networking sites to enable employees to engage with one another and ultimately improve
communication (Brandel, 2008; Miller, 2013).
Prior research has examined if
collaboration, learning, information sharing, and productivity are related to the
participation in on-line social networking (Duta & Fraser, 2009; Ferreira & Plessis, 2009;
Hastings, 2009; Violino, 2008). Hastings (2009) and Violino (2008) found that new
computer applications made available through social networking sites increased workers
ability to collaborate effectively because of improved file sharing capability. Ferreira and
Plessis (2009) argued that workers in a South Africa university perceived increases in
collaboration and knowledge sharing related to participation in an online social
networking site. As useful as these studies are, they tended to focus mainly on increases
in productivity through collaboration and knowledge sharing, and their overall impact on
organizational effectiveness through company commitment and job satisfaction is still
unknown. In particular, extant research points to significant relationships between social
capital and job satisfaction (Requena, 2003), but the question about the possible impact
of participation in on-line social networking on, commitment, and job satisfaction is
unknown.
Social capital has been studied as an antecedent to job satisfaction (Requena,
2003). Debates exist in the current body of literature surrounding the impact that on-line
communities, in the form of the Internet, have on social capital. While some researchers
have found a decline in social capital associated with Internet usage (Kraut, Patterson,
Lundmark, Kiesler, Mukophadhyay, Scherilis, 1998; Putnam, 1995), and others have
found positive impacts to social capital in the form of the associated increases in the
4
number of weak ties (Haythornthwaite, 2002; Wellman, 1999). Granovetter (1983)
argues that weak ties increase social capital by providing access to resources outside the
close circle of a person’s primary network by creating bridges to other networks that
would normally not be accessible through strong ties.
METHODOLOGY
A quasi-experimental approach was used to evaluate whether or not a relationship
existed between participation in the on-line social networking site and employee job
satisfaction, commitment to the company, and social capital. The experiment employed a
mixed method research approach, analyzing both quantitative and qualitative data. The
experiment was performed as a field experiment in an existing casino hotel with
management approval and cooperation.
The study was guided by the following research questions:
1. What is the nature of the relationship if any between participation in an
on-line social networking site and employee commitment to the
organization?
on-line social networking site and job satisfaction?
on-line social networking site and Social Capital?
Table 1
Research Design for Current Study
Randomized Control Group Pretest – Posttest Design
Group
Pretest
Treatment
Experimental Group (R)*
P1
Participation in Social Network
Control Group (R)
N1
Asked not to Participate
Posttest
P2
N2
Bokunewicz
5
A Social Networking site was developed specifically for the casino hotel where
the experiment was conducted. The site contained the following features similar to those
on the popular social networking site Facebook. Employees were able to:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Create a profile including a personalized picture and
various personal information including job title, birthday,
hobbies, favorite movies, favorite books, favorite
quotations, and favorite restaurants. Employees may enter
all or none of those items.
Post Photos
Post Videos
Post Status Updates
Like the posts of other members
Request Friends
Approve Friend Requests
View the profiles of other members
Join Private groups
Prior to implementing the social networking site a pre survey designed to measure
employee job satisfaction, and company commitment was distributed to both the research
group and the control group. Employees in the research group were asked to complete
the pre-survey, and to agree to participate on the social networking site for a period of
six-months, then completed a post survey. Employees in the control group were asked to
complete the pre-survey, and to abstain from participating on the social networking site,
then complete the post survey after a period of roughly nine months.
The post survey for the experimental group contained additional questions about
the employees’ participation on the site. These questions were designed to measure
social capital and they were structured in such a way to gain information about the
relationships formed between employees participating on the site and the strength of their
friendship ties. The purpose of the questions was to assess the number of new friends
met on-line, how many of those on line interactions lead to face-to-face interaction, and
to evaluate the strength of the friendships formed compared to those formed off line.
The survey instrument included questions designed to measure employee
commitment as defined by Mowday, Steers, and Porter (1979). Questions concerning job
satisfaction were taken from the Paul E. Specter Job satisfaction survey (Specter, 1997).
Four job satisfaction subcategories (i.e. rewards, communication, co-workers, and
6
supervisors) were measured. The post survey of the research group that participated on
the site included seven questions designed to measure social capital.
Post participation qualitative data was obtained through a small number of
interviews of a randomly selected list of employees from the research group who
completed the post survey. The researcher recorded the interviews with the permission of
the interviewees. The recorded transcripts were reviewed and coded to identify trends or
themes in the responses.
QUANTITATIVE DATA ANALYSIS
Of the 700 pre-surveys that were distributed, 108 were returned including 59 from
the control group and 49 from the research group. Post surveys were distributed after the
completion of the nine-month test period to all pre-survey respondents who were still
employed by the organization. Sixty-one completed post surveys were returned including
35 from the control group and 26 from the research group (See table 1).
Table 2
Survey Distribution and Response Summary
Survey Distribution and Response Summary
Pre-Surveys
Distributed
Returned
Post-Surveys
Distributed
Returned
Unusable
Valid
Research
Group
Control Group
Total
350
49
350
59
700
108
49
26
14
12
59
35
4
31
108
61
18
43
Some of the returned surveys however, could not be used in the final analysis. A
question was asked on the post survey to determine if respondents had participated or not
participated on the site as agreed to in the instructions distributed with the pre-surveys.
The cases of those respondents who did not participate as agreed were eliminated from
the data set to avoid contamination of the results. The remaining dataset of forty-three
Bokunewicz
7
respondents including thirty-one from the control group and twelve from the research
group was used as the basis for the data analysis.
The host company for the study was a casino hotel in a large eastern US city that
had been opened for over 32 years. Many of the employees have been with the company
since it’s opening, thus, influencing the age distribution of the employee sample: 45% of
the employees are 50 years old or older, while 68% are 40 years and older.
The 43 respondents were mainly in the older age brackets and predominantly of
the male gender. Ninety-six percent of the participants were 40 years and older with 63%
falling into the range of 50 – 59 years of age. Sixty-five percent of the participants were
male and 35% female. Twenty-three percent are classified as salaried workers indicating
that they hold the rank of supervisor or above, while 77% are classified as hourly
indicating they are line level employees (see Table 2).
Table 3
Population Descriptive Statistics
Variable
N
%
Age Groups
20 -29
30 -39
40-49
50-59
60-69
1
1
9
27
5
2%
2%
21%
63%
12%
100%
-
Age (Ungrouped)
Gender
Female
Male
15
28
35%
65%
100%
Level
Hourly Workers
Salary Workers
33
10
77%
23%
100%
Research Assignment
Control Group
Research Group
Total
31
12
43
72%
28%
100%
8
RESEARCH QUESTIONS
Research Question 1 – What is the nature of the relationship if any between participation
in an on-line social networking site and employee commitment to the organization?
This question examines any possible change in reported organizational
commitment scores before and after the social networking intervention, measured
through a pre and post survey. Organizational commitment was measured by 4 questions
on the survey. The pre and post scores for the four questions were collapsed into two
variables, pre-commitment and post-commitment.
The change in commitment scores was calculated as the absolute difference
between the pre and post commitment scores. Table 3 presents an analysis of differences
in commitment scores between the research and control groups, and the results of a
Mann-Whitney test performed to test the statistical significance of these differences (See
Table 3).
Indeed there were some changes in commitment scores, with the research group
reporting higher levels of scores (1.25 points higher than the control group), but the
change was not statistically significant. Similarly, there was minimal change in
commitment scores by gender, age, and salaried workers. As a result, the hypothesis that
a relationship exists between participation in an on-line social networking site and
commitment could not be supported.
Research Question 2 – What is the nature of the relationship if any between participation
in an on-line social networking site and employee job satisfaction?
The changes in survey scores between the pre and post survey, for the questions
relating to satisfaction were analyzed to measure the relationship between participation in
the on-line social networking site and job satisfaction. Satisfaction was measured by 14
survey questions organized into subcategories of rewards, communication, and feelings
towards supervisors and co-workers. The subcategories were analyzed independently and
together as one overall satisfaction variable. The change between pre and post was
calculated and then analyzed by comparing the difference of mean scores of the research
group to the difference of mean scores of the control group. A Mann-Whitney U test was
conducted to evaluate the hypothesis that there is a difference in pre and post satisfaction
between the research group and the control group.
The Mann-Whitney test (see table 3) showed marginally significant differences
between the two groups, z=-1.83, p< .10, with employees in the research group reporting
Bokunewicz
9
significantly lower satisfaction scores in the subcategory of Communication (i.e., a
negative mean change of -7.2).
Table 4
Difference in Mean Satisfaction/Commitment Scores by Group
Control Group
Research Group
Mann Whitney
N
Mean
Median
N
Mean
Median
Z
Pvalue
Change in
Commitment Scores
31
5.7345
6.0000
12
7.1930
7.0000
-1.253
0.210
Change in
Communication Scores
31
-4.9401
-5.0000
12
-7.2237
-7.0000
-1.838
0.066
Change in Reward
Scores
31
0.5285
1.0000
12
0.8640
0.5000
-0.027
0.978
Change in Feelings
towards
Supervisors/Coworker
s Scores
31
0.2630
0.0000
12
0.0833
0.0000
-0.370
0.711
Change in Satisfaction
Scores
31
0.8362
1.0000
12
0.8070
-0.5000
-0.163
0.871
The negative changes in the mean satisfaction scores pre and post were most
prominent among salaried employees (See table 4). The Mann-Whitney test showed a
significant difference between salaried employees and hourly employees, z=-2.3, p< .05,
with salaried employees reporting significantly lower overall satisfaction scores (i.e., a
negative mean change of -5.17 for salaried employees compared to positive 2.6 for
hourly). The test also showed a significant difference, z=-2.56, p< .05, with salaried
employees reporting significantly lower satisfaction scores in the subcategory of
Communication (i.e., a negative mean change of -8.7 for salaried employees compared to
-4.6 for hourly). Additionally the test showed a significant difference, z=-1.96, p= .05
with salaried employees reporting significantly lower satisfaction scores in the
subcategory of Rewards (i.e., a negative mean change of -1.4 for salaried employees
compared to positive 1.2 for hourly).
10
Table 5
Difference in Mean Satisfaction / Commitment Scores by Level
Hourly
N
Mean
Salary
Median
N
Mean
Median
Mann Whitney
PZ
value
Change in
Commitment Scores
33
6.2673
6.0000 10
5.7263
6.0000
-0.636
0.524
Change in
Communication Scores
33
-4.6391
-5.0000 10
-8.6737
-10.3684
-2.559
0.010
33
1.2349
1.0000 10
-1.4000
-1.0000
-1.964
0.050
33
0.7016
0.0000 10
-1.4000
-1.5000
-1.469
0.142
33
2.6468
2.0000 10
-5.1737
-2.8684
-2.332
0.020
Change in Reward
Scores
Change in Feelings
towards
Supervisors/Coworkers
Scores
Change in Satisfaction
Scores
There was no significant difference in any of the communication subcategories by
gender or by age under 50 years, or 50 years of age and older.
A negative relationship between participation on the social networking site and
the satisfaction subcategory of communication was found suggesting that satisfaction
decreased with participation on the social networking site.
Research Question 3: What is the nature of the relationship if any between participation
in an on-line social networking site and Social Capital?
Of the twelve subjects in the research group, seven reported meeting new friends
on-line, and the number of new friends met ranged from 4 – 24 friends. Four of the
subjects reported subsequently meeting these new friends face to face. The number of
new friends met face to face ranged from 1 – 4 friends.
Subjects were asked to rate the strength of the ties with their new friends on a
Likert scale of 1 – 5 with 1 being “very strong” and 5 being “very weak”. Strength of the
friendship ties is a measure of social capital that is important in comparing the ties
formed online to those formed in face-to-face, offline relationships (Kraut et al., 1998).
Two participants rated the friendship ties as a 5 indicating very weak ties. Seven
participants however rated the ties from 1 – 3 indicating moderate to strong ties.
Activity levels on the site were relatively low. Eight out of twelve of the
participants reported visiting the site only once per week. The other four reported visiting
Bokunewicz
11
more than 1 time per week ranging from 2 – 4 times. Five participants reported never
posting on the site. Seven reported posting from 1 – 4 times per week. Participants spent
one hour or less per week viewing the activity of others. Five reported spending one hour
viewing the activity of others and five reported spending less than one hour. Two
participants reported spending no time viewing the activity of others.
In summary, although activity levels were low, social capital clearly increased for
those employees in the research group. More than half of the participants met new
friends by participating on the site and four of those who met new friends subsequently
met with at least one friend face to face. This is relevant because if not for the
implementation of the social networking site, employees may not have had the
opportunity to meet these friends. If activity levels were higher the increase in social
capital may have even been greater.
QUALITATIVE DATA ANALYSIS
Post participation, qualitative interviews were conducted for several purposes.
First, to gain an understanding of why participation on the site was low and second to
gain an understanding of employee views on the importance of employee/management
communication in an organization as well as their views on the effectiveness of the social
networking site in contributing to enhancing these interactions. Nineteen interviews were
conducted with randomly selected subjects from the research group who completed the
post survey. Although each subject had his or her own personal perspective on the issues
discussed, several themes emerged that are relevant in explaining the outcomes of this
experiment.
The subjects who were interviewed agreed almost unanimously that
communication between senior management and line employees is “very important”. Of
the nineteen participants interviewed, seventeen respondents described it as “important”
or “very important”.
Interview subjects were split on whether or not the social networking site was an
effective vehicle for enhancing communication between management and employees.
Five employees responded that they did not think it was effective for various reasons.
One person said he is too busy to use the site. Another person said that he felt
management would be reluctant to “open themselves up” by putting personal information
on the site so it would not be effective. Two of the people interviewed were concerned
that something they post “could be used against you”.
Fourteen of the subjects interviewed thought that the social networking site could
be an effective tool for enhancing employee and management communication. The most
12
commonly cited aspect of the social networking site that was enjoyed by the interview
subjects was the posting of pictures both for employee recognition and for
communication of company happenings. Many of the interview subjects however
qualified their opinion with conditions that would need to be met in order to make the site
effective. For example, several subjects said it would be very effective if upper
management engaged actively on the site. Others said it would only be effective if more
employees were able to access it.
The access issue was raised by five of the subjects interviewed as an obstacle to
the effectiveness of the social networking site. The concern most often cited regarding
access was that many casino employees do not have access to computers at work.
Five interviewees expressed the opinion that the lack of postings and engagement
by management inhibited the effectiveness of the site. Participant “AF”, a mid level
manager thought the social networking site would be a great tool if management took the
time to post things or to comment on the posts of others. “AF” explained that posted
pictures of parties and things that happened in the company but “really didn’t get a
reaction from the people that wanted to.” “AF” suggested things that would make the site
more effective like posting the daily newsletter. “AF” also suggested that it could be
used to highlight employee accomplishments. “AF” explained that in the past the
company had a monthly magazine that featured employees and “everyone couldn’t wait
until it came out”. “AF” described how employees enjoyed reading stories about
themselves and their co-workers. “AF” suggested that the social networking site could be
used to facilitate this type of employee recognition if managers and the Human Resources
department made it a practice to feature employee accomplishments on a regular basis.
Two themes emerged from the interviews regarding reasons that management did
not actively engage on the site. One was time constraint and the other was the unwillingness to reveal personal information about oneself or ones department in a public
forum such as the Social Networking site. Four of the interviewees reported that they
were too busy to access or post on the site regularly. More prevalent however was the
expressed apprehension about revealing personal information on the site. Some subjects
described their apprehension in terms that signify either directly or indirectly the emotion
of fear.
IMPLICATIONS
Online social networking has the potential to be an effective communication tool
in the workplace yet it cannot be expected to correct problems that already exist in an
organization. It should be implemented with caution to ensure that it does not decrease
Bokunewicz
13
satisfaction and commitment. For an employer sponsored on-line social networking site
to be effective for organizational communication a significant commitment by
management and a series of regular posts and interaction is needed to hold the interest of
employees and ensure continued participation.
Throughout the study it became clear that employee access to a social networking
site was a barrier in achieving companywide participation. In a hospitality organization
many employees are front line workers without access to a computer at work. This limits
their opportunity to participate to break times or personal time at home. Many employees
do not have access to computers at home either because of financial means or because the
computer they have may be shared by the family and often used by the children.
Additionally employees have other concerns besides work to deal with during their
personal time.
Organizations implementing on-line social networking sites for
organizational communication must ensure that all employees have access to computers
at work and are provided opportunities to use them in order for the social networking
model to be successful.
In addition to computer access, language barriers exist that made full participation
challenging. During the training period it became apparent that many employees,
including some in the research group did not have a full command of the English
language. Even one of the vice presidents explained that the reason he did not post on the
site was that he was not confident enough with his English speaking ability to post a
status update or comment on the posts of others. Online social networking sites for
organizational communication in diverse organizations should include a translation
feature like the one that is part of Facebook where employees can translate information
easily into their native language.
In order to keep employees interested in an on-line social networking site
management must engage regularly in activities that are appreciated by employees.
Existing employee recognition efforts could be added to the social networking site by
management or by a designated employee. Although managers reported being too busy
to participate, an alternate employee could be assigned to post information on
management’s behalf. For example, a designated employee from the Human Resources
department could be empowered to post employee recognition content from all
departments. Upper management could empower their administrative assistants to post
and comment on their behalf.
14
Limitations
Some weaknesses of the study are the following:

The results of this study may not be generalizable to other organizations
because although the social network in this study suffered from low
activity other similar social networks have experienced higher
participation rates with more frequent postings.

Low sample size – due mainly to lack of participation on the social
networking site. This reduced the scope of the analysis.

Studies have shown that the primary link between social capital and job
satisfaction is through trust (Ahmadi, Ahmadi, Zandieh, 2011; Requena,
2002). Although the dimensions of trust were not measured in the survey,
the fact it was revealed in the qualitative interviews calls for further
attention to its conceptualization in future studies.
These weaknesses do not detract from the importance of the study or the
relevance of the findings. A number of respondents expressed the view that the social
networking site could be effective as a communication medium in the workplace.
Participants enjoyed the pictures and videos that were posted about company happenings.
They also enjoyed seeing the profiles of co-workers that they might not have had the
opportunity to meet in person. Employees enjoyed participating in contests where
employees posted photos of various themes and the employee whose photo received the
most “likes” won a prize. Site views increased dramatically during these contest periods
and employees reported their enjoyment of the contests in the qualitative interviews.
Employees expressed their feeling that they would have liked to see more employee
recognition and opportunities to give feedback to management through discussions on the
site. Again, these positive benefits were hampered by lack of management participation.
One marketing employee was instrumental in posting company information on the site on
a regular basis. During the qualitative interviews one mid level manager, used a very
insightful analogy to describe why this wasn’t enough to hold the interest of the
employee population. She said, the marketing employee “was like a cheerleader but we
needed to have the coach involved.”
Bokunewicz
15
CONCLUSIONS
The introduction of an on-line social networking site into an organization will not
unilaterally facilitate communication improvements between employees and
management. Management engagement on the site is necessary in order for employees to
see the value of continued participation. Without this engagement an increase in
organizational social capital that has been previously associated with increased job
satisfaction and organizational commitment in other studies will not materialize. Indeed
the introduction of an on-line social networking site may reduce job satisfaction by
highlighting communication issues that already exist within the organization. This may
lead to dissatisfaction by creating fear among employees and management to reveal
information about themselves and by adding new responsibilities to an already heavy
workload.
In order for an on-line social networking site to improve communication
management must openly engage on the site and both employees and management must
feel comfortable in participating without fear of negative consequences.
Future Research
Further research is needed to understand why management is reluctant to reveal
information about themselves in an online format. Is this a phenomenon that will change
over time as on-line social networking becomes more ubiquitous? The introduction of Email to the business world was a slow process. At first technology savvy employees
embraced it but many wanted the hard copy paper communication. Now paper memos
are almost obsolete in many organizations.
APPLICATION EXERCISE
The results of this study revealed that employees believed that an employer
sponsored, on-line social networking site could be an effective tool for communication in
the workplace yet management was reluctant to participate resulting in low activity on
the site in general. What steps could have been taken to reduce management’s reluctance
and encourage frequent and active engagement on the site. Specifically what types of
things could have been posted on a regular basis to capture employees’ interest? What
type of training would have facilitated a better response? What type of policies might
have been established? Could incentive have been used to encourage management and
16
employee participation? Students can be broken into small groups to brainstorm ideas
then a spokesperson from each group can report their recommendations to the class.
REFERENCES
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job satisfaction, Interdisciplinary Journal of Contemporary Research in
Business, 3(2), 511-523.
Brandel, M. (2008, August). Social networking goes corporate
Computerworld, 42(32), 25-27. Retrieved February 9, 2012, from ABI/INFORM
Global. (Document ID: 1537247881).
Dutta, S. & Fraser, M. (2009). The social capital scramble. Chief Executive, 243, 3842. Retrieved January 16, 2012, from http://search.proquest.com/docview/
212114536?accountid=10559
Ferreira, A. & Du Plessis, T. (2010). Effect of online social networking on employee
productivity. SA Journal of Information Management, North America, 11(1).
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78(6), 1360-1380
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2012, from Academic OneFile.
Haythornthwaite, C. (2002). Strong, weak and latent ties and the impact of new media.
The Information Society, 18, 385-401.
Kraut, R., Patterson, M., Lundmark, V., Kiesler, S., Mukophadhyay, T., & Scherlis,
W. (1998). Internet paradox: A social technology that reduces social
involvement and psychological well-being? American Psychologist, 53(9),
1017-1031.
Miller, R. (2013, May). How Humana Got 26,000 Employees to Use an Internal Social
Network. CITEworld. Retrieved March 13, 2014, from
www.citeworld.com.
Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of
organizational commitment. Journal of Vocational Behavior, 14, 224-247.
Putnam, R. D. (2000). Bowling alone : The collapse and revival of American
community. New York: Simon & Schuster.
Requena, F. (2003). Social capital, satisfaction and quality of life in the workplace.
Social Indicators Research, 63(3), 331-360.
Spector, P. E. (1997). Job satisfaction, application, assessment, causes, and
consequences. Thousand Oaks, CA: Sage Publications.
Violino, B. (2008). Social networking. AIIM E - Doc Magazine, 22(4), 12-15.
Wellman, B. (1999). Networks in the global village : life in contemporary communities.
Boulder, Colorado: Westview Press.
Weber, Max (1966). Economy and Society (Guenther Roth and Claus Wittich, trans.).
New York: Bedminister Press. (Original work published in 1917).
19:2, 2014, 17-34
ISSN: 1535-0568
Social Media Tools
BILL QUAIN
MICHAEL SCALES
CLIFF WHITHEM
Employers are specifically seeking students who can handle their Social
Media Campaigns, yet the majority of schools have not incorporated
meaningful Social Media teaching into their curriculum. Although most
institutions do use Social Media themselves, and most professors
understand the rudiments of the subject (and use it for their own
professional enhancement) a review of the literature revealed that
students are not receiving well-directed instruction on using the tools in
business.
The authors examine several reasons for the lack of high-quality, Social
Media instruction. Among them are: the difficulty in implementing new
courses, the lack of ready-to-use content for instructors, and the feeling
that “students already know how to use Social Media Tools.” In addition
to offering suggestions for overcoming institutional inertia, the authors
Address correspondence to Michael Scales, EdD, Hospitality and Tourism Management Studies at
The Richard Stockton College of New Jersey, 609-626-6838, [email protected]
Giving Students a Competitive Advantage
18
provide faculty colleagues with a step-by-step guide for a semester-long
project utilizing Social Media Tools in business settings. Finally, the
authors offer suggestions to help Hospitality HR Departments to increase
their organization’s employee orientation through Social Media Tools
training.
KEYWORDS Social media, hospitality education, hospitality curriculum,
employee orientation
INTRODUCTION
Why Aren’t Schools Teaching Social Media for Business Applications?
There is no doubt that all colleges and universities are using Social Media to
recruit and retain students. But, individual professors are lagging behind their institutions.
In a 2012 survey of 3,875 faculty, by Pearson Publishing (with the Babson Research
Group) results showed that only 33% of the faculty members used Social Media Tools
(SMT) as a teaching aid, while 44% of them used SMT for professional reasons, and 64%
used them for personal applications. (Pearson, 2012) The study determined that “blogs
and Wicki’s” were popular tools, used by 20% of the faculty members, while nearly 80%
used videos from sites like You Tube.
Using SMT for institutional promotion or classroom enhancement is one thing,
but it appears that very few institutions of higher education have taken on the challenge
of actually preparing students to use SMT critically. In fact, when they do create a
meaningful curriculum, it makes news in the leading business magazines, such as Forbes
and Fortune. As recently as August, 2013, Forbes ran an article titled, “Can you actually
teach a millennial to do social media?” In 2012, Fortune Magazine carried the article,
“Universities are Failing at teaching Social Media Skills.” In both articles, the authors
noted that only a few schools in North America give credit for courses in Social Media.
Among them are The Harvard Business School, Columbia Business School, Syracuse
University, and The University of Colorado. (Clark 2013, Holmes 2012)
Quain, Scales, & Whithem
19
Why Are So Few Schools and So Few Professors Teaching Applied Social
Media Strategy and Tactics?
One reason may be that it is often difficult to initiate changes to any long-standing
curriculum According to Forbes writer, Mark Fidelman, who developed a report in
2012, Many graduate programs aren’t even trying {to change the curriculum} – perhaps
because of ossified course approval processes, which often take years to get new material
into the curriculum, and perhaps because most millennials are already far more
conversant with the technologies than their professors.” (Clark, 2013)
Universities are just not equipped to make quick adjustments to fast-moving
trends in demand. How long does it take to get a single course approved at the average
university? In most cases, it requires at least a year of development, proposals,
committee reviews, etc. Now, imagine how long it would take to institute an entirely
new curriculum or major! And, contrast this with the speed-of-light changes occurring in
the workplace right now. Many professors and institutions are daunted by the “moving
target” of Social Media techniques and tactics.
Why Should We Teach Social Media Strategies and Tactics?
Of course, before making changes to a curriculum, or even to teaching practices,
it is certainly worth evaluating the reasons why teaching these tools and strategies are
important. In short, the answer – especially for professors like us – is that the companies
that hire our students are desperately seeking these skills in new hires. A 2012 study
showed that job listings that sought candidates with these skills rose by 87% over 2011.
(Lombardi, 2012) Figure 1 shows the four-year growth in SMT skills demanded by
potential employers. Does anyone imagine that the trend has not continued? An
overwhelming majority of Fortune 500 companies have comprehensive Social Media
presences. (Holmes, 2012) And, at a more micro level, almost all of the companies that
recruit our students are interested in finding someone to help them with their Social
Media tools.
20
Abby Lombardi, Hiring for Social Media Skills Begins 2012 with New Highs,
Wanted Analytics, February 16, 2012.
Figure 1. Hiring for social media skills graph.
Each of the authors in this article has personal experience with these phenomena.
We all receive calls each semester, from restaurants, hotels, tourist attractions, sports
venues, and caterers, asking us if we have a student who could, “help me out with my
Facebook Page” (or some other Social Media Tool). In fact, several of our students have
been hired specifically because they understand SMT. And, on at least two occasions
within the last year, students were able to sell the mobile phone apps they developed to
the restaurants they chose for their project case studies. In fact, we show our students
how they can begin making money with SMT even before the semester is over!
There is no question that there is a strong and growing demand for talented
employees. Of course, the employers also want the other skills we teach our students –
leadership, accounting, cost control, etc. But, students with Social Media skills may be
holding a strong Trump Card when it comes to obtaining a job in a tough economy.
One More Advantage That Students Have with SMT
Employers expect that young people can handle complex, even highly strategic
Social Media tasks. The truth is, of course, that our students cannot do this in most cases.
But, “perception is reality” and if the employers believe that young people can naturally
handle their Social Media campaigns, these employers will hire them quickly.
Traditionally, age and inexperience have been disadvantages for our students.
This is especially true in a labor market where recent graduates are competing with more
mature job-seekers. When conducting interviews for an assistant manager (entry level)
position, employers may often find that the person sitting across the table from them in
the interview has years of experience, and is only seeking this job because he/she has
been out of work due to cutbacks. The older prospect’s age and experience may be seen
as a positive advantage over hiring an untested recent graduate.
21
However, that same employer, when seeking someone to help with the Social
Media campaigns, may be more likely to consider a younger, fresher candidate. Now, if
this student/graduate actually does know how to make money and create a solid ROI with
Social Media, and can demonstrate that she/he has actually conducted campaigns and
understands the real power of this media, then this is a sustainable competitive advantage,
and it is exactly what we should be trying to give our students.
The Big Question: “Don’t Students Already Know How to Use SMT?”
The answer is not as simple as it would first appear. On the one hand, we can say,
“Yes” – our students were raised on Social Media. They don’t talk anymore, they text.
Many of them post almost every event, every thought, on Social Media. They Tweet,
text, upload, Pin and Post. (They used to email, but that is dying off for this generation.)
Our students, just like yours, are connected 24/7, and they will stay connected for the
foreseeable future.
However, almost none of them know how to use SMT strategically or tactically.
They cannot, for instance, use SMT to make money – either for themselves or for an
employer. (As the Forbes author put it, “Implicit in this is the fact that millennials don’t
have an innate ability to use social media strategically, and just because they can launch a
Facebook page blindfolded or create Vine videos in their sleep doesn’t mean they
understand business ROI. What tools should they be using? What will advance the
interests of their company? What will resonate most with their target audience?” (Clark,
2013)
At Syracuse University’s S. I. Newhouse School of Public Communications,
Professor William Ward states that, while his students are “social natives” – having
grown up with all the common tools like Facebook and Twitter, he must create courses
that “elevate social networking to cold, hard science, with an emphasis on practical
business applications and measuring return on investment.” (Holmes, 2012) Of course,
the fact that students don’t know how to turn Social Media Tools into business
opportunities and returns shouldn’t be surprising. Almost none of the restaurant and
hotel operators we speak to know how to make money with Social Media either. And,
how many professors have successfully run Social Media campaigns?
It turns out that knowing the tools is not enough to create a master SMT leader for
businesses. Instead, students, and practitioners for that matter, must learn to apply oldfashioned marketing and communication tactics to a new set of principles and priorities.
Social Media Tools are just that – tools. They aren’t the answer to marketing problems,
Understanding markets, products, pricing and communication are still the strategic and
22
tactical imperatives. Using SMT just makes it easier and faster, and in many cases, more
effective.
Don’t Wait for Your College to Catch Up
It is clear that there are opportunities for our students if they learn to use SMT to
create profitable relationships with customers. Simply put: these students will get hired,
and probably will be the last to get fired. (Businesses are not going to lay off the
assistant manager who is the only one who knows the passwords to all the Social Media
accounts!) But, as professors – especially professors in a fast-paced, highly focused
business industry such as ours – we cannot wait for sweeping curricular changes at our
schools, instead, we should be using and teaching SMT in the majority of our classes.
The goal should be to create a student/graduate who can immediately establish a
sustainable competitive advantage in the job market.
For professors who may feel powerless to affect major changes in the curriculum,
there is some very good news. We can use project-based instruction (PBI) to swiftly
elevate students’ knowledge and skills in the SMT area. By integrating PBI tactics into
our classes, we can leverage the students’ natural affinity for SMT, and give them a
solidly competitive skill. And, we can do all this without having to wait for a series of
committee meetings and faculty votes.
Once a professor makes the decision to begin teaching SMT strategies and tactics,
it is quite easy to integrate the projects into almost any business classroom. Certainly,
marketing classes are a natural fit, but professors can use SMT education in accounting
and cost control (students can create apps that track inventory, and share that information
company wide), event planning (apps, Facebook, Twitter, and Pinterest are all
appropriate) Human Resources (apps again, Facebook for sure! Tweeting and Pinning).
Almost any class in Hospitality, Leisure, Sports and Tourism can support a Social Media
project.
For those of you who are teaching Marketing, or a related subject, we have
included a step-by-step guide for a proven SMT project. But, even if you are not
teaching marketing, it should be easy to convert the project we describe in this article to
fit your specific course needs. For example it is still possible and practical to use the free
Social Media Tools that we include later in the article, for your particular needs.
23
A HOSPITALITY MARKETING PROJECT USING FREE
SOCIAL MEDIA TOOLS
In the following pages, hospitality educators can learn how to use a fully designed
project outline to teach cutting-edge marketing strategies and tactics to their students.
The project utilizes 4 free, Social Media marketing tools, such as Facebook, Text
Marketing, and Mobile App’s. The technology is straightforward, and relatively easy to
master.
Of course, many professors will ask the question, “How can I teach Social Media
tactics to students who know much more about it than I do?” The authors had the same
misgiving. But, they quickly discovered that the students had almost no idea about how
to utilize Social Media for commercial purposes. Yes, the students use Facebook,
texting, email and other media daily, but those tools are only a small part of the project.
The more important elements are the Marketing principles that drive all business
communications. Customers are not “friends.” Customers still need to be convinced,
rewarded, cultivated and sold – and students need professors to show them how to use
online tools to create profitable relationships – not just friendly chatter.
One of the most glaring examples of the gap between casual, friendly
communication, and highly-targeted, customer-oriented marketing communications, is
“list building.” Students build lists of friends by “accepting” them. Businesses build lists
of potential customers by “selling” them. Throughout this project outline, the authors
will repeatedly show educators how to build teachable marketing moments (that teach
students to think like business people.
Finally, the authors reveal how to get top-level tools absolutely free. . Students
can create web pages, online and mobile coupons, text marketing campaigns, email
broadcasts, and even mobile phone apps at no cost. Yet, the end results can be of such
high quality that Hospitality businesses will actually pay for the creations.
For those professors who want to modernize their courses, with cutting-edge
lessons that will capture student interest, and produce a more sophisticated Hospitality
graduate, this step-by-step project outline will prove invaluable. For best results, follow
the example of the authors, and build the project slowly – over several semesters.
Project Overview
This is a semester-long, group project. Students need time to learn all of the tools,
and the marketing principles that make them useful. Professors need time to teach
24
marketing – AND show students how the marketing objectives of a company can be
realized through Social Media.
The steps in the project are:
1. Introduce the topic –Show students how they have all been involved in
this type of marketing – as a customer. Ask how many students have
recommended a place, a book, or a movie, through Social Media.
2. Create the groups – Allow students to create their own groups, of 5 or 6.
3. Set Project parameters –
a. Students create, or select, an appropriate Hospitality business
b. Each student must be able to demonstrate proficiency in Facebook,
Mail Chimp, Fan Minder, Landing Page designs, Graphics Creation,
and Phone App design.
c. Each group will conduct a campaign, present the findings, and make
recommendations.
4. Teach the Tools – All of the tools that we recommend have very robust
training videos. Ask the students to take the training, and then ask some
of them to present their first attempts in class. Everyone will learn from
this – including instructors.
5. Set simple objectives –It is important, for the purposes of this project, that
the students focus on one campaign– a concert, Happy Hour, off-season
promotion, etc.
6. Guide the students in selecting a target market – email, social media, and
text campaigns are highly focused. In order for them to be successful, the
students need to concentrate on a small segment.
7. Build the list – Students will have almost NO idea about creating landing
pages with meaningful, trigger words. Both Mail Chimp and FanMinder
are excellent tools for this. Spend some time here, it will pay off.
8. Send out campaign messages – Here is where the students email, text, or
post messages to the target market.
9. Analyze – all of the tools we provide have analytical functions. Students
should learn how to determine how many messages got through, how
many were opened, and how many actions the recipients took.
10. Write Paper and Present – If professors give students a good outline, the
paper will almost write itself. Require students to use professional tools
to make the presentations.
25
At the end of the semester, the students present their projects. This includes an
overview of the company they chose or created, screenshots of landing pages, emails,
apps, and other material, a summary of the campaign objectives, and finally, their
analysis of the results. We encourage the students to use high – quality presentation tools.
The results have been impressive. And, faculty evaluations reflect the students’ feelings
of pride and accomplishment.
The Project Tools
Here is a list of the communication and graphic tools that we utilize in this
project. (Special note: At the time of this writing all of the tools listed below were free, or
had free versions. However, before utilizing them for a student project, professors should
make sure that the companies have not changed their policies.)
1. Facebook –Facebook is the world's largest social media tool. We show
the students how to create “fan pages. “
2. Email marketing system –Use a tool called mail chimp
(mailchimp.com) The FREE tool provides everything necessary to
gather, store, manage and market to email addresses. Mail chimp has
a complete set of tutorial videos. .
3. Graphics design software –there are several free software packages
that allow students to create very nice graphic images. They will need
these graphic images for Facebook fan pages, landing pages, and for
some of the mobile marketing coupons. We recommend laughing Bird
software, or Pixlr.
4. Mobile phone marketing –In the U.S. we use Fan Minder. If this
system is not available in your country, utilize a simple “text group” to
attract, capture, and text to groups. Fan Minder is particularly good,
because the pre-formatted coupons are easy to use. Fan Minder does
have an email function, so non-U.S. students can still utilize the
coupons.
5. Phone Apps – Use Magmito (magmito.com) to create FREE apps that
work on both iPhone and Android phones.
While the list of tools above may seem daunting, professors should remember that
all of these tools come complete with instructional videos.
26
Understanding List-Building Fundamentals
All of the tools described above depend on one thing for success – the hospitality
business must have a list of contacts. We found our lessons on list building to be crucial
to the project. Again, it reinforces the need for a professor’s knowledge, because
students have never built lists of customers.
Here are several things to consider when teaching students how to build lists:
1. A list is a group of names, addresses, phone numbers, etc.
2. This list must be stored someplace, and that someplace must make it
easy to communicate with the list.
3. In order to gather the information, the business needs a place where
people can sign up. These are called opt-in pages, landing pages, or
squeeze pages. Figure #1 is a good example of a student-generated
Landing Page from the project.
4. It is difficult to get people to sign up on an opt-in page, because they
know they are now giving the marketers permission to contact them
through email or mobile phones.
5. In order to overcome the reluctance, marketers need to come up with
an incentive for the prospects, and then communicate that incentive.
6. A list has value only if the people on the list respond to marketing
stimuli.
Figure 2. A student-created landing page.
27
Getting people on to the list, marketing to them, and motivating them to take
action, are the really important steps of this project. Openness and honesty are key
ingredients. If you are trying to hide something, it can cost you potential customers
(Quain, Scales, and Albano, 2012). The rest of the work – setting up the programs and
tools, is merely technical. Because this is such a critical function, the authors will define
some teachable marketing points for the readers of this article.
Teachable Moments in Marketing
Professors should be looking for those special, teachable moments – the moment
when a student realizes that he/she needs more knowledge. It is what makes teaching at
the university level so rewarding.
To this end, consider the following teachable moments for this project
(specifically centered on the list-building function) and use them to improve the impact
and effectiveness of this project.
1.
2.
Designing the opt-in form (What information do we need and want?) –
There are three things to consider:
a.
How do we want to communicate to these people? If the business
plans to use email, they need to capture an email address. If they
want to communicate via text messages, capture cell phone
numbers.
b.
How much information is too much? Is an email or cell phone
number enough? Do you need their full name, or just a first name?
c.
How do I get that information to my list management system?
And, how do I keep it straight once it is there? The list
management functions in both FanMinder and Mail Chimp allow
users to create groups of names. This can be very helpful later,
when creating highly targeted messages.
d. Form Design. Actually making the form is not the challenge.
Designing the form is the challenge. Help students use “trigger”
words and offers.
How do we actually create the opt-in form? There are two variations of
opt-in forms, and both are easy to create.
a.
Email – Use the opt-in form creator in Mail Chimp. Mail Chimp
hosts the opt-in form as a separate web page. When prospects go
3.
4.
28
to the webpage, they fill out the form, and the information goes
directly into the specified group on your Mail Chimp account. See
an example of an opt-in form created by one student group in
Figure 1.
b.
Text message marketing forms – Using FanMinder, it is even
easier to create an opt-in form. Just set up a keyword, and then ask
prospects to send a text message to a short number called a “short
code.” For example, one student group used the keyword
“Coyote” for their restaurant, the Coyote Café. The short code was
the five-digit number supplied by FanMinder.
What incentives are necessary in order to get the customer/prospect to fill
out the form with the correct information? Consider the two factors below
when developing incentives, and the language to convey their benefits:
a.
Incentives should be problem-driven. Customers and prospects
have problems – that is why they are coming to your business in
the first place! What are the problems that are specific to this
target market? What can you do about the problems that would
give the customers the right incentive to sign up for the list?
b.
Using trigger words is often difficult, because most people do not
think in those terms. Yet, the more instinctive and basic the
triggers, the more motivating they are. For example, one student
group, working with a golf club, recognized a unique problem for
members – if they invited non-member friends to play a round of
golf with them, they often ended up paying the green’s fees for the
friend, because the bill wouldn’t come due until the next month’s
payment. The group also realized that the member’s friends were
excellent prospects for membership, so they ran an opt-in page that
said, “Are you tired of paying for your cheap friends to play at
YOUR course? Sign up for last-minute discounts at the Pro Shop,
and get two FREE companion passes for your next round of golf.”
The Trigger words in this sentence are “Free,” Cheap Friends” and
Discounts.”
Designing and Creating an Autoresponder – An Autoresponder is an
automatic message that goes out to the customer/prospect
IMMEDIATELY after he/she signs up via an opt-in form. Mail Chimp
and FanMinder allow students to create Autoresponder. There are two
important things to consider when developing an Autoresponder:
a.
b.
29
Make the person glad that he/she filled out the opt-in form!
Welcome them, and give them something special immediately.
Consider using the opt-in form to promote an upsell.
Targeting the Right Prospects
In order to fully utilize the tools and programs in their Social Media and Mobile
toolbox, the students had to spend time identifying the target markets they wanted to
motivate. This was an interesting experience for the authors to watch, because the
students had never thought about targeting before – at least not when it came to business
communication.
However, we showed the students how they use targeting in their personal lives.
They had separate groups and lists for their close friends, larger circle of friends, school
groups, business lists, etc. When they realized how important it was to communicate
with each group in specific tones, they began to understand how to select targets for their
project’s Social Media Campaigns.
In all the projects, students were required to describe the primary markets. This
included some behavioral aspects (psychographics) as well as descriptive (demographics)
criteria. See the notes in Figure 2 for a sample of a target market description by one
group.
Since we are located on South Ocean Blvd in Palm Beach, FL we are targeting the
range of mid to upper class adults with ages ranging from Late 20’s to Early 40’s.
This class of customers will focus more on experiences and less on price. We
don’t do it for a good value on food and drink prices.
Figure 3. Students’ target market.
Setting Objectives – Decide in Advance What Makes You Successful
Students are not naturally disposed towards setting objectives. Yet, it is
impossible to determine if a marketing campaign is successful if there are no objectives
set in advance. We required each group to establish specific objectives for their
campaigns, and then use built-in measurement tools to determine success.
30
Measuring Results
All of the tools we employ have built-in measurements. For example, Mail
Chimp’s back office provides the following:
a.
Number of people filling out opt-in forms
b.
Number of people who completed the double opt-in process
c.
Emails sent
d.
Bounce backs
e.
Opens
f.
Responses
.
Fan Minder has a unique way to measure success. Their coupons contain a
“Redeem” button that tracks when a coupon is redeemed, and by whom. This is a
significant measure of success.
Marketing Integration – One Theme, Many Touches
After choosing target markets, and setting objectives, the students could then
integrate their tool boxes to carry out the campaign. Again, this was a paradigm shift for
many of them. They had never coordinated a multi-tool campaign. The students learned
the importance of creating a single, branded image and theme. And, they learned the
importance of timing, as different tools required different schedules. For example it was
necessary to create op-in forms, and a sales campaign to attract prospects to those forms,
BEFORE sending out emails and text messages. In addition, they realized that the
scheduling of Facebook posts, or Tweets, needed to coincide with the initial stages of the
campaign, while coupons, invitations to events, and other promotions came later – after
the guests had registered for the lists, and had sorted through the Autoresponder.
Students used graphic tools such as Laughing Bird and Pixlr to create themed,
integrated designs. They uploaded images to Facebook, FanMinder, and Mail Chimp.
Figure 3 for an example of student-created images on a Facebook Fan Page.
31
Figure 4. A Facebook fan page created by a student group.
The result of this integrated approach was to create a multiple number of
“touches” for each client, and to give them more opportunities to respond. Some of the
tools, such as FanMinder, can also be set to automatically post any coupon offer on
Facebook and Twitter. This required some account integration in order to accomplish the
multiple posts with one click, but the students soon learned the value of the integration
and coordination.
32
Figure 5. A customized, redeemable coupon created in Fan Minder.
Figure 6. A mobile phone app developed by students using Magmito.
SUMMARY, CONCLUSION, AND RECOMMENDATIONS
There is no doubt that ALL hospitality businesses need talented employees especially if those talented employees also understand the business implications of Social
Media Tools. Understanding how to conduct successful campaigns is definitely a
33
competitive advantage for new graduates. In our experience, this knowledge also creates
significant shifts in employers’ perceptions long before the students graduate. In fact,
most companies are eager to hire young executives who can “work the magic” of Social
Media.
In a drastically reduced hiring environment, most schools are eager to add
competitive edges for their students, but at the same time, the fast-paced nature of
technological change makes it difficult to even begin to contemplate curricular changes.
For that reason, faculty should learn to implement Social Media teaching methods into
easy-to-adjust projects. The outline provided above should be sufficient for most faculty
members to get started at least.
Do we have any doubt that teaching Social Media tactics and strategies are good
for students who need employment? We have no doubt. In our experience, businesses
don’t want to wait for employees to graduate! They will hire them right now. And, even
if the student is not ready to jump full time into the workforce, the ability to practically
use Social Media Tools to improve ROI for a Hospitality Business can certainly lead to
interesting internships that provide incentives and rewards for both the student and the
employer.
Finally, we would like to recommend that Hospitality HR departments create
training schedules for their employees in Social Media Tools. This could be instituted
company wide, as almost every department can utilize SMT. Imagine the power of
unleashing a large number of SMT specialists and professionals throughout your
organization.
If HR departments follow our lead, and deploy project-based SMT training, the
result could be a more customer-needs-aware company, at all levels. Remember, the
basic rule for creating successful social networks is that everyone in the network benefits.
In a service-driven industry such as ours, benefits that are customized for target market
groups (internally and externally) are the currency that drives success.
In the present, and certainly in the future, understanding and implementing Social
Media campaigns will generate competitive advantages – for everyone in our business.
Use the project outline in this article, (at schools or in corporations) and begin to leverage
the power of Social Media today
34
REFERENCES
A study of trends in higher-education faculty's social media site usage for personal,
professional, and instructional purposes.” Pearson Publications, 2012 (A Special
Report found on the Pearson Blog at
http://dev.pearsonlearningsolutions.com/higher-education/social-mediasurvey.php)
Clark, D. (2013). Can You Actually Teach a Millennial to do Social Media? Forbes
Magazine: Leadership. Aug. 6, 2013.
Davis, C.H.F., Deil-Amen, R. J., Rios-Aguilar, C., & Gonzalez Canche, M.S., (2012).
Social media and higher education: A literature review and research directions.
Report printed by the University of Arizona and Claremont Graduate University.
“Educational Resource Review” compiled by the Editor, Journal of Hospitality,
Leisure Sport and Tourism Education, vol. 10, Issue 1, 2011
Holmes, R., (2012). Universities are failing at teaching social media. Fortune Magazine
Leung, D., Law, R., van Hoof, H., and Buhalis, D. (2013) Social Media in Tourism and
Hospitality: A Literature Review, Journal of Travel & Tourism Marketing, 30:12, 3-22
Lombardi, A., (2012). Hiring for Social Media Skills Begins 2012 with New Highs,
Wanted Analytics.
Quain, B., Scales, M., and Albano, D. (2012). An Interactive Student Project Using the
Internet, the 80/20 Rule, and Social Media to Analyze Customer Feedback.
Journal of Hospitality and Tourism Education. 24:2-3, 56-66
19:2, 2014, 35-53
ISSN: 1535-0568
XANSHUNTA L. POLK
School of Business
Lincoln Memorial University
It is often difficult for most organizations to successfully revitalize their
strategies, methods, and policies. Even the best designed organizational
changes can fail at meeting objectives during implementation due to
unexpected or unaddressed organizational changes (Bowe, Lahey, Kegan,
and Armstrong, 2003). Such is the case for Ben and Jerry’s Homemade,
Inc. Due to resistance from stockholders and industry leaders Ben and
Jerry’s must alter their strategies to focus more on social, environmental,
and internal matters. Specifically, the ice cream maker is faced with the
task of adjusting their corporate social responsibility strategy in an
attempt to combine current strategies with new Benefit Corporation
mandates. This research served to examine the relationship between
corporate social responsibility, Benefit Corporation mandates, and
traditional management strategies. The methodology included a case
study of industry factors, as well as, current Ben and Jerry’s corporate
social responsibility strategies. Understanding these relationships allows
Ben and Jerry’s to successfully integrate strategies to support the
environment, while boosting employee, community, and stockholder
morale, and increase company revenues.
KEYWORDS Corporate social responsibility, CSR, Benefit corporation, B
Corp, Social responsibility, Management strategies, Ben and Jerry’s
Address correspondence to Xanshunta Polk, BBA, School of Business at Lincoln Memorial
University, (423) 869-7006, [email protected].
Ben and Jerry’s
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INTRODUCTION
Company History
In 1978 Ben Cohen and Jerry Greenfield opened the first Ben and Jerry’s
Homemade ice cream scoop shop in a renovated gas station in downtown Burlington,
Vermont (Our History, n.d.). Since that time the company has successfully increased
sales every year since foundation (Dennis, Neck, and Goldsby, 1998). In contrast to most
corporations, the leaders at Ben and Jerry’s want more out their company than just
profits.
Cohen and Greenfield concentrate on promoting their agenda of “caring
capitalism” (Neuborne, 1999). Caring capitalism occurs when corporations consider
effects on the community alongside products and profits (Neuborne, 1999). Cohen and
Greenfield believe that corporate objectives should not interfere with social action (W.O.,
1995). Consequently, Ben and Jerry’s have merged social values with profits in its
bottom line (W.O., 1995). Ben Cohen believes, “Society should measure its strength not
in terms of how many people it can kill but in terms of how many people it can feed,
clothe, house, and care for” (W.O., 1995, p. 27). Ben and Jerry’s evaluate its success by
how much it gives back to the community (Flannery, 2000). Ben and Jerry’s social
impact originates from how it conducts business and how they are able to combine
marketing of products and social concerns (Flannery, 2000.) The ice cream maker’s
effective implementation of corporate social responsibility has made them an industry
model for engaging in socially responsible behavior (Poltenson, 1996).
Mission
Ben and Jerry’s employs a mission comprising of three interrelated parts: Product,
Economic, and Social. Essential to the mission is the belief that all three parts must
flourish equally in a way that commands deep respect for individuals in and outside the
company and supports the communities of which they are a part (Our Mission Statement,
n.d.). According to Cohen and Greenfield,
We have a progressive, nonpartisan social mission that seeks to meet human
needs and eliminate injustices in our local, national and international communities by
integrating these concerns into our day-to-day business activities. Our focus is on
children and families, the environment and sustainable agriculture on family farms (Our
Mission Statement, n.d.).
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Problem Definition
In 2012 Ben and Jerry’s was designated as an official B-Corporation (Van
Brussel, 2012). The designation allows Ben and Jerry’s to measure and benchmark the
social impact of the company (Van Brussel, 2012). Additionally, the B-Corporation touts
to consumers, investors, and employees that the company is serious about its social
mission. The B-Corporation is a new sector which develops economic opportunity, builds
strong communities, and conserves healthy environments (Gilbert and Garrigle, 2013).
According to Gilbert and Garrigle (2013), “B-Corps meet higher standards of
accountability, transparency, and social and environmental performance.” Ben and
Jerry’s addition to the rank of B-Corporation is seen by many as a groundbreaking
movement, because the designation shows that investors are focused on social benefits, in
addition to profits and growth (Van Brussel, 2012).
The issue for Ben and Jerry’s is that although B-Corporation designation
professes a superior focus on the social environment, many marketers and activists are
cynical about the advantages of being a B-Corporation (Tozzi, 2010). Many don’t see the
differences between corporate social responsibility (CSR) and being a B-Corporation.
Moving forward the challenge for the Ben and Jerry’s is to effectively meld their current
CSR efforts with new B-Corporation duties. The future of the ice cream industry, as well
as, all industries may depend on Ben and Jerry’s successful formulation and
implementation of new sustainability tactics.
BACKGROUND
Ice Cream Industry
Despite being a delicious treat, the ice cream industry in the United States is on a
decline (Carper, 2012). Reports show that Americans are buying less ice cream (Carper,
2012). Symphony IRI, a market research firm, found that by the end of August 2012, unit
sales of ice cream fell 2.3% to 1.13 billion units (Carper, 2012). Historically, ice cream is
a food with little brand loyalty, in which sales are driven by price (Carper, 2012). Ice
cream is a fun food that must compete with others in the desert category (cakes, pies, and
other deserts). Studies indicate that when consumers purchase ice cream 94% base their
decision on flavor, 83% view price, and 72% are based on a sale or promotion (Carper,
2012). Only two-thirds (68%) make their ice cream purchase decisions based on brand
loyalty (Carper, 2012).
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Ben and Jerry’s is attempting to develop more brand loyalty through new product
development, new flavor profiles, healthier options, new packaging concepts, and
environmentally and socially conscious operation (Carper, 2012; Our Mission Statement,
n.d.). Ben and Jerry’s is combining corporate social responsibility and the benefit
corporation initiatives to drive business and help society.
Corporate Social Responsibility
The world is full of corporations that have multiple crusades for and against
different social causes. Many have found it difficult to determine the dividing line
between their obligations to their stockholders and stakeholders. Specifically,
corporations have found it difficult to define their social responsibilities. Numerous
corporations believe that society allows American companies to focus on profit because
the result is a higher living standard and a more efficient use of economic resources
(Poltenson, 1996). In order for corporations to reduce the difficulties, it is necessary for
them to realize the interrelatedness between business and society. The perception that
business and society are interrelated comes from the idea that strength of competition
produces moral legitimacy of corporate behavior (Van de Ven and Jeurissen, 2005).
Researchers propose that competitive conditions are key variables, which influence the
relationship between social responsibility and business success (Van de Ven and
Jeurissen, 2005). Currently, corporations have begun reconsidering the main function of
business, which is to produce goods and service, while bringing in profits for
shareholders, and are now considering the idea of adding social responsibility to their
bottom line (Flannery, 2000).
Corporate Social Responsibility (CSR) focuses on the triple bottom line, the
environmental, social, and financial accomplishments of a company. The goal for CSR is
to positively impact society, while simultaneously achieving business success. (What is
CSR?, n.d).
An organization is considered a good corporate citizen when it exhibits a
commitment to its stakeholders by operating in a socially responsible manner. CSR is
based on three interconnected models: corporate values and business practices, marketing
strategies, and product or services (Flannery, 2000). The three models of CSR ascertain
how a corporation should interpret, build and mold its social identity, and link social
responsibility to its core functions.
Another view of CSR suggests that corporate responsibility and corporate
reputation go hand-in-hand. The notion is that both directly affect consumers and
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communities (Hillenbrand and Money, 2007). According to Hillenbrand and Money
(2007),
Corporate reputation and corporate responsibility are both expressed through
similar and overlapping corporate behaviors and understood in terms of similar and
overlapping stakeholder perceptions. By viewing reputation and responsibility as two
separate concepts, they are more so thought of as one in the same (p. 273-274).
The belief is that corporations should manage their reputations while being
mindful of their relationships with stakeholders, because corporations and stakeholders
influence each other.
B Corporation
The benefit corporation (B-Corp) is an organizational form devoted to
legitimizing the objective of CSR (Andre’, 2012). B-Corp is a new initiative that
combines traditional profit generation with strong social and environmental agendas
(Raskin, 2012). B-Corp legislation has passed in seven states, making New York,
Maryland, Vermont, New Jersey, California, Virginia, and Hawaii prime locations to
promote community-based businesses (Raskin, 2012). The purpose of legislation is to
improve CSR by providing legal protection to corporations that want to maximize
shareholder income as pursue social or environmental agendas (Andre’, 2012).
Additionally, legislation allows corporations to refuse offers it deems ethically
undesirable (Andre’, 2012). B-Corp designation promotes socially minded efforts that
strengthen and diversify a company’s economics while safeguarding consumers, helping
the environment, and supporting the rights of working men and women (Raskin, 2012).
B-Corps fall within the category of gray sector organizations (GSO) (Andre’,
2012). GSOs are organizations that are not entirely public or private, but which have
characteristics of both sectors. GSOs, specifically, B-Corps typically have multiple
missions (Andre’, 2012). In addition to the mission of all corporations to make profits, BCorps each have multiple missions that align with enhancing CSR. B-Corps have a range
of missions from improving human health to the achievement of other benefits for society
or the environment (Andre’, 2012). The broad range of B-Corp missions requires these
corporations to deal with more complexity and uncertainty than other organizations.
B-Corp designation is aided by the efforts of B-Lab. B-Lab is a non-profit
organization whose purpose is to grow the gray sector of the economy. Their objective is
to harness the power of business to resolve social and environmental problems (Gilbert
and Garrigle, 2013). Additionally, B-Lab hopes to help B-Corps become legally
recognized by more states and to have tax preferences with the IRS (Gilbert and Garrigle,
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2013). In order to be designated as a B-Corp, companies must adhere to a 140 point
analysis, including governance, transparency, charitable giving, and impacts on the
environment and community (Sampselle, 2013).
B-Lab then synthesizes the analysis into a score. The score is weighted based on
business size and industry. The score is further broken down into three focus areas:
employees, the environment, and the community (Sampselle, 2013). Additionally, an
investigation is conducted to evaluate consumers’ potential buying decisions, investing,
and employment opportunities (Sampselle, 2013).
Ben and Jerry’s Strategy
Determining an organization’s strategy involves defining their long-term position
in the marketplace (Seddon and Lewis, 2003). It also requires identifying the trade-offs
that the organization will and will not do to provide value to their customers (Seddon and
Lewis, 2003). Additionally, strategy involves developing competitive advantages to
deliver customer value, while making a superior return on investment (Seddon and
Lewis, 2003). Ben and Jerry’s has developed many strategies as a means of being
competitive, while simultaneously being conscious of their stakeholders.
One of Ben and Jerry’s strategies is the practice of “caring capitalism” and
extending CSR to their employees. The ice cream maker pays close attention to the care
of their employees. For example, the lowest paid employee receives a salary plus benefits
of $22,000 in a state with an average per capita income of $17,436 (Dennis, Neck, and
Goldsby, 1998). The company also believes it’s important to establish a good
environment for their workers. In an attempt to create a positive workplace, Ben and
Jerry’s began the Joy Luck Gang, a volunteer group whose sole missions is the persistent
pursuit of joy in the workplace (Dennis, Neck, and Goldsby, 1998). The group sponsors
activities designed to improve morale, such as clash-dressing day and hiring DJs to take
requests while workers are on the production line (Dennis, Neck, and Goldsby, 1998).
The company has also committed to help their employees with more job training.
Ben and Jerry’s developed the PartnerShop Program, which helps nonprofits open and
operate Ben and Jerry’s franchises dedicated to employing at-risk youth (Yamada, 2003).
Eight nonprofits organizations operate 13 PartnerShop franchises nationwide (Yamada,
2003).
The PartnerShops are staffed by young people (usually ages 15 to 25) from
poverty, homelessness, mental illness, or juvenile delinquency backgrounds (Yamada,
2003). The nonprofits offer youth support programs such as job training, entrepreneurial
skills, and classes on anything from resume writing to business basics (Yamada, 2003).
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CSR is also practiced in terms of start-up costs. Ben and Jerry’s waives its standard onetime $30,000.00 franchise fee for nonprofit owners. The company also provides
nonprofits with management training, special marketing support, and travel stipends for
twice-a-year Ben Jerry’s corporate meetings (Yamada, 2003). In addition, The
PartnerShops train about 30 people each winter, and at the end of the year, they
encourage turnover, by helping employees find paying jobs at other companies (Yamada,
2003). The hope is that the employees will benefit from a leg-up to bigger and better
things (Stephens, 2003).
Another strategy for Ben and Jerry’s is to produce their products in
environmentally and animal friendly ways. After months of discussion with the Humane
Society of the United States (HSUS), Ben and Jerry’s confirmed that it would adopt an
exclusively cage-free egg policy for the eggs it uses in its ice cream (Campaign victory,
2006). The HSUS highly praised the company’s decision, estimating that it would
improve the welfare of tens of thousands of animals (Campaign victory, 2006).
Ben and Jerry’s has also been very staunch opponents of Bovine Growth
Hormone (rBGH). The company asserts that the hormone is unhealthy for cows, affects
the nutritional value of milk in a negative way, causes milk to go sour before its time, is
not necessary due to an abundance of milk, and threatens the survival of family farms
(Dennis, Neck, and Goldsby, 1998). In 1995, the company went over and beyond, and
paid a premium of $345,000 for milk and cream that was rBGH free (Dennis, Neck, and
Goldsby, 1998).
In addition to extending CSR to employees, and the environment, Ben and Jerry’s
also demonstrates responsibility to its consumers. Ben and Jerry’s donates 7.5 percent of
pretax profits to charity, while the average publicly held corporation in the United States
donates 1 percent (Dennis, Neck, and Goldsby, 1998). The organizations that receive the
money include environmental groups, AIDS projects, a center for immigrant rights,
American Indians, and the homeless (Dennis, Neck, and Goldsby, 1998).
Another strategy for Ben and Jerry’s is to combine marketing with their message
(Neuborne, 1999). Their marketing formula incorporates grass-roots social activism and
low budget, community focused tactics (Thompson, 2001). While many corporations rely
on marketing agencies, Ben and Jerry’s does not, in terms of overall strategic direction
(Thompson, 2001). They prefer that their CSR activities do most of the marketing work.
One of the ways, they accomplish this is by creating various flavors that contribute to
charitable causes. In 1989, Ben and Jerry’s created the flavor Rainforest Crunch, as a way
to help spread the word about the preservation of rainforests. The label from the product
read “money from these nuts helps to show that rainforests are more profitable when
cultivated for traditional harvest then when they are cut and burned for short-term gain”
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(Dennis, Neck, and Goldsby, 1998, p. 389). KaBerry KaBoom!’s package touts a
donation of 1.5 percent of sales to children’s playground building organization KaBoom!
(Thompson, 2001).
Furthermore, Ben and Jerry’s made an effort to reach African American
consumers with the launch of Island Paradise and Apple Crumble flavors. The varieties
prompt donations to the Tom Joyner Foundation, which provides scholarships for
historically black colleges and universities (Thompson, 2001). Regardless of limited
media expenditures, Ben and Jerry’s has found that the attention given to its community
activities by media outlets, “goes well beyond what our spend could ever be in terms of
garnering awareness”, said a Ben and Jerry’s marketing executive (Thompson, 2001)
.Ben and Jerry’s ability to mix business and social responsibility has proven to be a great
formula for how to increase profits, reputation, and consumer loyalty.
SITUATION ANALYSIS / SWOT ANALYSIS
Strengths
Established Company/Brand
Despite Ben and Jerry’s humble beginning, the ice cream maker has established
itself as a top maker of premium ice cream (Hoover’s Inc., 2010). In 2000, the company
was bought by consumer products giant Unilever (Hoover’s Inc., 2010). The acquisition
has not changed Ben and Jerry’s social activist stance or its quirky personality. Unilever’s
leaders promised they would not change Ben and Jerry’s business approach. Instead
Unilever has rejuvenated the ice cream maker and has promoted the company’s three part
(social, product, and economic) mission. Ben and Jerry’s has been able to maintain its
corporate culture an image under the watchful eye of Unilever (Hoover’s Inc., 2010).
Variety of Products
Not only is Ben and Jerry’s known for its social stance, they are well known for
their variety of ice cream product and flavor offerings (Hoover’s Inc., 2010). The
company sells creatively named ice cream and ice cream novelties (Hoover’s Inc., 2010).
Additionally, in response to health conscious needs, Ben and Jerry’s has launched a line
of frozen yogurt products. Ben and Jerry’s carries over 100 product flavors which allow
them to meet the meet needs of wants of many consumers (Flavors, n.d.). Moreover, Ben
and Jerry’s associates charities and social causes to the majority of their flavors. Each
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year Ben and Jerry’s donates a minimum of $1.1 million pretax profits to social causes,
with money generated from product sales (Hoover’s Inc., 2010).
International Reach
Unilever’s acquisition of Ben and Jerry’s has led to a wider scope for the ice
cream maker (Hoover’s Inc., 2010). The company now franchises 750 Ben and Jerry’s
Scoop Shops worldwide. Additionally, Unilever struck a deal with Dreyer’s which has
expanded the distribution of Ben and Jerry’s products to 24 countries (Hoover’s Inc.,
2010).
Weaknesses
Public Controversies
In 2006, Ben and Jerry’s former CFO, Stuart Wiles, was convicted of embezzling
nearly $300,000 from the company (Marketing Research, 2010). Also in 2006, Ben and
Jerry’s severed connections with egg supplier, Michael Foods (Marketing Research,
2010). Michael Foods was accused of in-humane treatment of their chickens. Bad public
relations from the Humane Society damaged Ben and Jerry’s reputation (Marketing
Research, 2010).
Neglecting Business/Industry Trends
Ben and Jerry’s fervent focus on social responsibility issues may prevent the ice
cream maker from staying abreast of changing business and industry. This neglect could
potentially cause the company unnecessary costs (Marketing Research, 2010).
Opportunities
Social Media
Ben and Jerry’s uses social media to engage consumers (Ranjan, 2011). Social
media is used by Ben and Jerry’s in various countries and in various languages. The ice
cream maker uses the social media to promote new flavors and products, as well as, allow
consumers to voice their opinions about the brand (Ranjan, 2011). The use of social
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media has ability to create powerful social media campaigns that skillfully promote the
brand, which leads to increases sales and market share.
Certified Fair Trade
In 2010, Ben and Jerry’s announced its commitment to Fair Trade across its entire
global product portfolio (Hoover’s Inc., 2010). By the end of 2013, Ben and Jerry’s
converted all their ingredients to Fair Trade certified (Hoover’s Inc., 2010). The Fair
Trade crusade promotes criteria for fair labor standards, environmentalism, social policy,
fair pricing, and community development (Hoover’s Inc., 2010). This conversion aids
farmers and provides a competitive advantage for the ice cream maker.
Supply Chain
Upon acquisition of Ben and Jerry’s in 2000, Unilever vowed to improve their
supply chain (Rudd, 2011). The consumer foods giant implemented a new SAP enterprise
resource planning supply chain system. The new system provides Ben and Jerry’s with a
real-time view of their goods. The new supply chain system allows for quicker and higher
quality information availability, which eases decision making (Rudd, 2011). The new
supply chain system has allowed Ben and Jerry’s to cut cost and grow sales. Unilever’s
new system is leaner and more cost disciplined. Group sales grew 4.1 percent and
operating profit has risen 26 percent (Rudd, 2011). Unilever’ supply chain aligns end-toend global methods which gets Ben and Jerry’s goods to consumers all over the world.
Unilever’s new supply chain system leverages eight disciplines: engineering,
manufacturing, procurement, logistics, customer service, planning, quality, and safety
(Unilever, 2013).
Threats
Competitors
Ben and Jerry’s has three top competitors: Dean Foods, Dreyer’s, and Dunkin.
(Hoover’s Inc., 2010). According to Hoover’s Inc. (2010), gross revenues for competitors
are $11,462.28 M, $535.30 M, and $658.18 M respectively. Ben and Jerry’ gross
revenues for 2009 were between $200 million and $500 million (Hoover’s Inc., 2010).
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Opponents of Corporate Social Responsibility
There are many opponents of CSR that contend that companies who use their
profits to promote social issues are not fair to their investors (Hillenbrand and Money,
2007). The idea is that the companies are there to serve an economic purpose and not to
specialize in social responsibilities. Opponents also argue that focusing attention on
social causes distracts leaders, which hinders the company from maximizing profits
(Hillenbrand and Money, 2007).
TECHNOLOGY COMPONENTS
Lean and Green Freezers
Ben and Jerry’s has introduced an eco-freezer for use in their United States Scoop
Shops and manufacturing plants (Ben & Jerry's employs eco-freezer, 2009). According to
Ben and Jerry’s CEO, “This is an important step for our business which we hope will
clearly demonstrate that a more environmentally friendly refrigeration technology can
work in the U.S. market (Ben & Jerry's employs eco-freezer, 2009, p.11).” The freezer is
a cleaner, greener, hydrocarbon-based equipment which presents great environmental
benefits (Ben & Jerry's employs eco-freezer, 2009). The eco-freezer minimizes Ben and
Jerry’s impact on global warming. The new technology allows the ice cream maker to use
about 10 percent less electricity, because it is mostly powered by propane and butane.
Waste Management
At Ben and Jerry’s very little goes to waste. The creation of ice cream creates
dairy waste that is too extreme for a local municipal waste treatment facility. Instead, Ben
and Jerry’s transfers its dairy waste to two of their own dairy supplier farms. There the
dairy waste is fed into a methane digester, where it generates energy to power the farms
(Waste, n.d.). The left over solid waste is turned into bedding for cows. Ben and Jerry’s is
passionate about making their waste less wasteful (Waste, n.d.).
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HUMAN COMPONENT
Organizational Culture
Ben and Jerry’s work environment is laid back and liberal (Lee, 2000). The
atmosphere at Ben and Jerry’s is open and welcoming. Ben and Jerry’s has created an
atmosphere that caters to young workers. The average Ben and Jerry’s employee is 36
years of age (Lee, 2000). The company takes great effort to attract employees who
believe in the ice cream maker’s vision. Their commitment to their employees is reflected
in their benefit programs. It includes a comprehensive health plan for domestic partners,
health and dependent care flexible spending accounts, unlimited time off for
bereavement, financial aid for adoption expenses, and time off to volunteer (Lee, 2000).
Additionally, the company offers employees three free pints of ice cream a day. The
employees can burn off the calories with the health club memberships offered by Ben and
Jerry’s (Lee, 2000). Ben and Jerry’s take good care of their employees. This is evident in
the low rate if turnover, which is about 5% (Lee, 2000). According to Carol Hickman,
Ben and Jerry’s senior manager of benefits and HRMS, “It’s a different way of working,
but the work gets done. Making ice cream is fun, and people have fun doing it (Lee,
2000, p. 65).” Ben and Jerry’s is fun place to work with a serious mission. The company
remains true to their credo “great ice cream, big profits and social consciousness (Lee,
2000, p. 65).”
ANALYSIS OF PRESSURE POINTS (RESISTANCE)
Business is for Profit
Ben and Jerry’s recent B-Corp designation recognizes the company’s
growing focus on the social environment. Ben and Jerry’s goal is to combine their CSR
efforts with their new B-Corp responsibilities in a way that maximizes their efforts to
help all of their stakeholders, communities, and the environment while producing
delicious ice cream. Although Ben and Jerry’s mission is noble there are many that do not
agree. Opponents of CSR and B-Corps believe companies should obey applicable laws
and regulations, and that’s all they should do (Delios, 2010). Opponents do not believe
that that Ben and Jerry’s or any company should go beyond what the law requires in
regards to worker safety and the environment (Delios, 2010). Their belief is that a
company’s only responsibility is to make profits. Ahlstrom (2010) supports the idea that a
company’s sole task is to provide jobs for their employees. Ahlstrom’s belief stems from
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classic management literature. For example, in the early 20 th century Barnard (1938) and
Williamson (1975) implied that companies cannot efficiently perform functions other
than those required by market-mediated transactions between companies. “Hence, the
relationship between employees and organization should be entirely transactional and
nothing more (Williamson, 1975).”
Social Responsibility is Expensive
Another issue of concern for CSR and B-Corp opponents is cost. Socially oriented
initiatives lead to increased costs. The issue is whether these costs can be offset by
organizational improvements or whether the costs endanger the company’s
competitiveness (Delios, 2010). Even when opponents note the moral and ethical
legitimacy of CSR, their focus remains the on the costs of such endeavors. Despite social
efforts, there is not always a financial return on investments which is unacceptable to
many CEOs (Schendler, 2002). For many CEOs the bottom line is that company
mandates should spring from economics not ethics (Schendler, 2002).
OVERCOMING RESISTANCE
Trade-off Between CSR and Profits
Much of the opposition to CSR and B-Corp efforts stems from the perception that
CSR involves a zero-sum trade-off with economic interests (Burke and Logsdon, 1996).
However, a key to overcoming this resistance is to promote the more contemporary
notion that while CSR may involve short-term costs, CSR initiatives pay-off for a
company in the long run. Scholars agree that companies who utilize CSR initiatives
benefit from greater social legitimacy with less government regulations (Burke and
Logsdon, 1996). Additionally, scholars have found that promoting a better society is
good for long-term profitability (Burke and Logsdon, 1996).
Strategic Corporate Social Responsibility
Perhaps the best way to overcome resistance to CSR and B-Corp designation is to
highlight the benefits of strategically using CSR to contribute to the long-term
effectiveness of business activities. By specifying the benefits of CSR, remaining
proactive, promoting voluntarism, and creating better visibility contributes to the value
creation of CSR and B Corp program (Burke and Logsdon, 1996). The ultimate idea of
Ben and Jerry’s
48
using CSR and B-Corp designation strategically is to add value to your company.
Companies attempt to create value through their on-going investments, new technology,
new products, brand awareness, training and customer service, and production facilities
(Burke and Logsdon, 1996). These components can be integrated with CSR objectives to
create evident benefits to a company. Recognizing that long-term investments in CSR
will yield high total payoffs for stakeholders allows companies to focus on economics
and ethics. This dual focus allows companies to thrive economically and socially, while
strategically adding value to their company.
RECOMMENDATIONS
Leveraging the integration of Ben and Jerry’s CSR and B-Corp responsibilities
will greatly maximize the company’s social and business value, which will result in
increased profits. The key is to develop stronger stakeholder relationships while
implementing and evaluating social responsibility programs. Below are the specific steps
Ben and Jerry’s should take to properly take advantage of its CSR strategy and B-Corp
designation.
Track and Measure
Social responsibility efforts must be measurable. Measureable tactics have a
significant impact on customers, investors, suppliers, and regulators (Solomon, 2013).
Ben and Jerry’s must implement a more sophisticated marketing database to heighten
their CSR and B-Corp efforts. The use of sophisticated marketing databases are based on
wide-ranging data collection. Databases serve as a memory of customer relationships
(Lewington, De Chernatony and Brown, 1996). Database marketing has largely been
embraced by corporate leaders as ways to improve information systems that allows them
to better cope with marketing challenges and fragmentation (Lewington, De Chernatony
and Brown, 1996).
Align Assets and Impact
Combining CSR and B-Corp strategies allows Ben and Jerry’s to create a
significant and continuous impact in the community and corporate world. The positive
impact of B-Corp designation is evident in that the number of American businesses that
have B-Corp designations represent $1.1 billion in revenue and 54 industries (Solomon,
2013). Ben and Jerry’s must employ impactful investments in their employees, suppliers,
Polk
49
production efforts, and community. The ice cream maker must develop a new leadership
position. The new leader should essentially be a director of environmental and social
initiatives. The job description requires regularly researching new developments for
environmentally friendly production equipment, as well as, discovering more uses for
Ben and Jerry’s dairy waste. The new leader should also be expected to educate the
community and employees about the benefits of CSR initiatives. The goal for this new
position is to deepen Ben and Jerry’s commitment to CSR, while acting as a public
relations officer for all of the company’s social and environmental efforts.
Choose Transparency
B-Corp designation requires businesses to meet transparent social and
environmental performance standards (Solomon, 2013). Being more transparent allows
stakeholders to gain a better understanding of the role and contributions that Ben and
Jerry’s has to our society (The rise of transparency, 2012). Therefore, it is crucial for the
company to become more transparent about their social efforts and corporate taxes. There
is increasing pressure from civil groups, social organizations, and the government for
socially responsible companies to clearly communicate their tax reporting and how their
taxes are managed (The rise of transparency, 2012; Yongtae, Myung Seok, and Wier,
2012).
Develop A Public Relations Campaign
The public relations campaign must be outcome focused and not income focused.
Ben and Jerry’s should not discuss the amount of money spent to create programs.
Instead present consumers with outcomes only. Tout the results of previous
environmental efforts, the significant attention to employees, and the use of Fair Trade
ingredients. The idea is to promote goodwill between the company and its constituents
through marketing and management communications. The campaign should integrate
press releases, feature stories in local and national newspapers, company newsletters,
interviews and press conferences, and sponsored events (O’Guinn, Allen and Semenik,
2012).
Ben and Jerry’s
50
CONCLUSION
Superior innovation and performance provides Ben and Jerry’s with the
opportunity to grow bigger while supporting the environment, employees, community,
and suppliers. The most successful companies are those managed by leaders who
understand that competitive advantage is realizing, understanding, anticipating, and
servicing their customers better than the competition, not just doing the same as the
competition (Bhan, 2006). In the case of Ben and Jerry’s, the study found that
effectiveness hinges upon integrating CSR and B-Corp strategies. Specifically, the ice
cream maker must do a better job of tracking and measuring their customers through
marketing databases; aligning their assets to their intended impact on the community;
having more transparent tax reporting; and developing a new and improved public
relations campaign.
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19:2, 2014, 54-73
ISSN: 1535-0568
CATHRINE LINNES
College of Business
Hawaii Pacific University
PAUL KOWALSKI
College of Business
JOSEPH LEMA
Hospitality & Tourism Management
WENDY LAM
JEROME AGRUSA
This research focuses on the impact of social media on today’s hotel
industry. Reference will be centered on TripAdvisor due to its dominant
market position within the travel industry market segment. Specifically,
this study will examine how: (1) social media technologically connects
and interfaces with customers for feedback, reviews, and surveys, in order
to reach more users and to increasingly gain popularity; (2) TripAdvisor
Address correspondence to Jerome Agrusa, PhD, Hospitality and Tourism Management at Hawaii
Pacific University, (808) 544-9341, [email protected]
Social Media and Technology
55
interfaces with Facebook and is present on other social media websites
like LinkedIn and Twitter; (3) every year, TripAdvisor awards destinations
and properties with the Travelers’ Choice® awards; (4) once awarded,
these destinations and properties will bear primary sequence in main
search engines and will therefore gain popularity; (5) with these
advantages, the hotel industry is to be educated and made aware of the
dynamics of social media and the importance of monitoring; (6) one of the
main reasons why social media like TripAdvisor increases in popularity is
the growing reliance of consumers’ on first hand blogs and reviews for
both current and post stays; (7) as a result, there is a growing importance
paid by Hoteliers towards social media, which requires changes of
behavior and skills of leaders to adapt to social media; (8) and finally,
TripAdvisor’s impact on hotel properties in Hawaii.
KEYWORDS: Social media, technology, Hawaii hotels, TripAdvisor
INTRODUCTION
In this modern age of travel and tourism where ultra-competition exists in all
areas, consumers have also become increasingly conscious of their purchase decisions.
Consumers dependence on first hand feedback, others’ personal experiences, as well as
recommendations from trusted parties has increased as options have multiplied across
various segment i.e. product/services, geographic location, price structure, amenities/
facilities, packages, etc.
Over the last decade, human behavior has seen an increasing familiarity and
dependence on technology namely “The Internet”. As the number of internet users
around the world increases, so do the users of travel review websites. Web based
programs have thus evolved through the Internet to increase sales and at the same time
provide resources that allows consumers to purchase or acquire support to make the
purchase decision (Shankar, Smith, & Rangaswamy, 2003). Live feed systems that have
emerged through the Internet allow consumers to communicate and relay their feedback.
With the advancement of technology and the increasing importance for communication,
social media was established via the Internet that served multiple purposes for both
consumers as well as sellers.
Linnes et al.
56
Market capture and maximization have become a common goal for service
providers. There are numerous websites known for offering advice from real travelers as
well as a variety of travel options and planning features. These travel websites compile
the opinions and experiences of many previous customers in one convenient place,
making it easily accessible to virtually anyone. Because word-of –mouth advertising is so
powerful, these websites can have a great influence in attracting customers (De Bruyn &
Lilien, 2008). Owens (2012) argues that user-generated reviews are critical in the
decision making process and may reassure a customer on their decision to commit to the
reservation Travel review websites have essentially revolutionized word-of–mouth
advertising. With multiple websites that allows for hospitality organizations to be
marketed as well as rated, for instance, Yelp, Four Square, Facebook, Urbanspoon, and
Twitter; this study will focus on TripAdvisor and its significant contribution and impact
on the hotel industry in Hawaii. It has been over 15 years since the social era started and
TripAdvisor has succeeded to be the world’s largest travel site (TripAdvisor, 2013a).
TripAdvisor assists potential guests in making their decision where to stay or where to
dine along with other sources of information on a destination.
Founded in 2000 by Stephen Kaufer, TripAdvisor is one of the first usergenerated websites. Information about hotels, flights, vacation rentals, and restaurants as
well as the yearly Travelers’ Choice winners can be found on the website. Twelve years
later, TripAdvisor has over 260 million monthly visitors and over 125 million reviews
which covers over 3.1 million accommodations, restaurants, and tourist attractions
(TripAdvisor, 2013a).
The website is available to the public without any charge. The travel website is
financed through advertisements. TripAdvisor’s services are very versatile and range
from publishing reviews about travel destinations to comparing prices of hotels and
flights, while showing the lowest price available on the Web.
TripAdvisor is used by customers for different purposes. One of the most
common purposes is to research the destination prior to travelling or visiting a restaurant
and making a decision based upon the reviews. The travel website also posts forum
discussions, which can be helpful to customers in making a decision if the selected
destination, hotel or restaurant will meet their needs and expectations. Access to the
website’s information does not require being a registered user as well as posting a review,
but it is highly recommended as it allows personalizing the website.
The use of Trip Advisor is slowly becoming an integral part of trip planning.
According to Ong (2012), 61% of those surveyed stated they use reviews to narrow down
their choices. In addition, nearly all the respondents of a Travel Weekly survey indicated
that reviews have at least “some influence” and approximately one in five respondents
57
said that reviews have “Very Much Influence” on their travel choices. The survey also
stated that 98% of the respondents who used travel review websites said they would use
them again (Chipkin, 2012). Due to these factors, review websites such as TripAdvisor
should be a top priority for Hawaii’s hotel managers.
TripAdvisor is used worldwide and operates in 34 countries including websites in
North America, South America, Australia, Europe and Asia (TripAdvisor, 2013). In
China, the company operates under the brand daodao.com and kuxun.cn (TripAdvisor,
2014a.). Currently about more than 20,000 hotels and restaurant can be found on the
travel website daodao.com even though it was just launched recently in 2009. Daodao is
becoming one of the biggest travel websites and is constantly expanding in China as well
as worldwide. The company manages and operates websites under 19 other travel media
brands and together the sites attract more than 69 million monthly visitors (ComScore,
2012).
(1) Social Media Technological Connects and Interfaces Customers for
Feedback, Reviews and Surveys
Before social media gained the importance and reputation which it currently has
in today’s society, customers were restricted to exchange information with their travel
agents, friends or families. Recommendations or information about the destination were
restricted and based on the individual’s perception. Rarely were customers able to
compare multiple reviews about a destination. Although times have changed, the
importance of word of mouth (WOM) recommendations are still one of the most
dominant factors prior to making a travel decision (Looker, Rockland, & TaylorKetchum, 2007; Smith, 1993). Through the use of the Internet and the increase of
communication, WOM has gained even more importance. Websites such as TripAdvisor
connects customers with each other and makes information and reviews about hotels,
vacation rentals and restaurants accessible to the broad public. TripAdvisor also allows
customers to compare different reviews of past customers with each other and includes a
ranking of similar properties. Therefore, the customer can compare similar restaurants
and hotels at the desired destination with each other. In addition, Trip Advisor hosts
forums about different travel related topics. The opportunities to network or to gather
information are endless.
Linnes et al.
58
(2) TripAdvisor Interfaces with Facebook and Other Social Media
Trip Advisor recognized the need to market their website on a variety of social
media websites. Internet marketing allowed the company to advertise their services and
product free of charge.
TripAdvisor is represented on the following social media websites:
a. On LinkedIn, the world’s largest Internet based professional network
website with more than 277 million registered members in over 200
countries (LinkedIn, 2014). TripAdvisor has currently 43,726
followers from LinkedIn as of February, 2014
b. On Facebook, which is a social networking service with more than
1.23 billion active users as of December 31, 2013 (Facebook, 2014a),
Facebook users have currently 740,804 likes on TripAdvisor and
21,054 are talking about it (Facebook, 2014b). Facebook allows
creating and joining interest groups and becoming a fan of a page.
Organizations like TripAdvisor use this as a form of free Internet
advertisement. In 2007, TripAdvisor paid Facebook.com $3 million
dollars for the “Where I´ve Been” application allowing them to capture
a brand new market (Biggs, 2007; Kafka, 2007; McCarthy, 2007).
First introduced in the U.S, the UK followed a few months later. This
partnership allows users an instant personalization of both websites. It
is advertised on TripAdvisor to sign in via a Facebook account. In
addition to it, a direct link on the company’s website can be found
where users can sign into TripAdvisor through their Facebook account
and therefore connect both of their profiles. Critics mention that the
application is an opt-out initiative for its Facebook users. This means
that if a Facebook user has not actively disabled the feature in the
settings, by visiting TripAdvisor while being logged into the Facebook
account both webpages are connected and instantly personalized. Once
both accounts are connected, customers are always able to log into
their TripAdvisor account via Facebook without requiring another
password. This application acts like a personalized travel planner and
allows users to connect with their Facebook friends’ reviews and
opinions about their latest trips and dining experiences in various
ways. The application will post on behalf of the user status updates
and photos on the news feed and therefore share the users travel advice
on Facebook. In addition, when researching a destination of interest on
TripAdvisor, the user will see which of their Facebook friends have
been to that location and what their feedback was. Since this
partnership has been launched, 100 million people have been part of
this instant personalization (May, 2014). The cooperation with
Facebook allows better coverage within the social media network
itself. The recent numbers indicate that the average user has over 190
friends in their social network (Backstrom, 2011). A TripAdvisor’s
review and opinion is not only shared on the website itself, but is also
shared on Facebook, which in return is able to reach more users.
TripAdvisor is one of eight partners worldwide that have access to this
form of instant personalization. TripAdvisor is currently the only
travel site. Adam Medros, the Vice President of Global Products at
TripAdvisor stated “We think that’s a really powerful idea, that people
inherently do want to share their experiences and their content with
their friends. If they give us their permission, we’ll increasingly ask
for that permission, to be able to make it easier for your friends to
discover the things that you like. And to get ideas and
recommendations for the trips that they’re planning.” (Sawers, 2012,
p. 1).
c. On Twitter, which is a real-time information network that connects
private users as well as businesses with its customers, TripAdvisor has
currently 1.2 million followers and a total of 9,756 tweets published by
the administrators (TripAdvisor, 2014b). Twitter allows the quick
sharing of information and news with the group of followers and
anyone who is interested in the company’s products and services. This
provides an opportunity to build relationships and to engage with
customers outside of the familiar website. Beyond the website which
TripAdvisor has on Twitter, the company is currently not looking into
a deeper integration according to Adam Medros “We’ve certainly
looked at that and all the other social networks. We’d consider doing
it, but the main thing we want to figure out is what are we getting from
it? ...We’ve done a little testing, and users are little more reticent about
pressing a button and sharing it out to their Twitter network and
followers.” (Sawers, 2012, p. 1).
d. Google+, which has been just recently launched on September 20 th
2011, is a social networking and identity service operated by Google
59
Linnes et al.
60
Inc. The New York Times have declared that Google + as the answer
to the social network Facebook and as Google’s biggest attempt to
rival Facebook (Miller, 2011). Armano mentioned in his article “Six
Social Media Trends for 2012”, that Google struck back in 2011 with
its formidable initiative that acts as Google’s “social layer” to the web
(Armano, 2011). As of October 29, 2013, Google+ has a user base of
more than 540 million surpassing Twitter´s 218 million monthly active
users (Daily News, 2013). Adam Medros mentioned that Google+
“When it’s big enough, and makes a dent, then yeah, but right now,
Facebook is really the only platform that has meaningful scale and
provides a graph that could be of real use.” (Sawers, 2012, p. 1).
Four Pillars Hotels in the UK stressed the impact of social media within the
hospitality industry. It reported that the search volume on Google for hotels has lost a
stunning 70% in the last six years. Instead travelers are using TripAdvisor, Kayak, and
Expedia (May, 2014).
In addition to social media, TripAdvisor offers a free mobile application for
iPhone or iPad users. These free applications are advertised as the ideal tool to plan a trip
as it will find the best places to eat, sleep, play wherever worldwide a user travels.
Applications allow users to be instantly connected with their favorite websites and to
follow news and trends as soon as they are published. For TripAdvisor, this means being
connected in a more efficient way with its users, therefore an improvement in
communication.
(3) Travelers’ Choice® Awards Created by TripAdvisor
Travelers’ Choice® award winners are directly awarded and advertised through
TripAdvisor. Awarded by millions of travelers, the winners are published annually
including a wide range of categories. The impact of TripAdvisor is tremendous, as it
markets the destination itself, including beaches and cities, as well as selected hotels to
the public. Therefore a city or area itself can suddenly increase in popularity due to the
reach of Internet marketing. For 2012, Honolulu has made the list for “Top 10 Beach
Destinations in the U.S.” and also “Top 25 Beach Destinations in the World”. Honolulu
was ranked as number 19 of the “Top 25 Destinations in the World”.
In addition to destinations, Travelers’ Choice® awards are also given out to
Hotels in all categories worldwide ranging from bargain to luxury. Within Hawaii the
winners for the “Top 25 Luxury Hotels in the US” are with number six the St Regis
61
Princeville Resort in Kauai and with number 25 the “Kahala Hotel & Resort” on Oahu.
The category “Top 25 Relaxation/Spa Hotels in the US” lists the “Travaasa Hotel Hana”
on the Big Island as number 25. Being awarded benefits the property in numerous ways.
The company can publish the title on their website, promote it within their property or
use it as an email signature for their internal and external communication. These are just a
few examples, how the company can take advantage of this free form of advertisement.
(4) TripAdvisor Itself Uses Review Ratings to Award Establish that Enable
Search Engine Optimization
Once awarded the Travelers’ Choice® award for example, the organization will
bear primary sequence in main search engines, including TripAdvisor itself. When a
customer searches for a desired travel destination, the properties which have been
awarded the Travelers’ Choice® award will be listed first. This is just another form of
free advertisement. Putting this into practice, when searching for the Traveler’s Choice®
winner “The Kahala Resort” on the search engine Google, the first website which is listed
is the property’s homepage, the second page is the TripAdvisor website and the third one
is Yelp’s website. Once clicked on the TripAdvisor link, the Travelers’ Choice Award®
will show up immediately. To show another example, the number one winner for the
Travelers’ Choice® Award 2012 for Luxury is the “Grand Del Mar Hotel” in San Diego.
It is currently the number one hotel out of 246 hotels within the city of San Diego. Just
searching for San Diego itself on the search engine Google will guide the user to
TripAdvisor’s number one choice the “Grand Del Mar Hotel”. In addition, the hotel itself
is marketing their title on the main page of their website. Even the link to the website is
named “The Grand Del Mar Resort – Named #1 U.S. Luxury Resort”.
The same benefits apply for destinations as well. Cape Town Central is
TripAdvisor’s number one destination within the “Top 25 Destinations in the World
2011” ranking. When searching for Cape Town on the search engine Google, the user
will be guided to TripAdvisor where the award is mentioned immediately.
Search engine optimizations like these are of high value for hotels and
destinations. It is not only improving the visibility of certain websites, but also has the
effect that more visitors will go on the websites, which are higher ranked on the search
results page. This has an enormous impact on Internet marketing. Users immediately see
which hotel has the highest ranking or which destination is preferred and recommended
by the majority of the population. What used to be friends and family’s recommendation
has now tremendously expanded to what the majority of travelers on the Web says.
Linnes et al.
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(5) The Dynamics of Social Media and the Importance of Monitoring
With the increase of communication, the importance to control and monitor the
contents of the posts becomes a priority. TripAdvisor as a user-dynamic website carries
the risk of abuse via improper or inappropriate use by its customers. Brands are spending
a great amount of time and money investing in platforms, but with the increasing amount
of social platforms marketing is becoming more challenging. One of the biggest
challenges that companies are facing nowadays is to accept that customers are given an
increase in power through social media. With all the social platforms, customers are
given the opportunity to be more vocal (Merchant, 2012). The relationship between
companies and customers are becoming increasingly more emotional than rational.
To assure that the reviews are written by former guests and not by hotel or
restaurant staff, TripAdvisor established a verification process. Guest’s reviews are not
posted to the website immediately. The company established a verification process,
which includes the monitoring of the authors IP address and email address. Given that
there are any suspicious patterns or the usage of inappropriate language, users can report
it to the company, which is then reviewed by a team of specialists. In addition, the
website is constantly monitored by the company’s administrators.
Besides inappropriate handling, there is a thin line of guests taking advantage of
being “a click away from being a critic” (Smith, 2012, p. 1). While some users view
TripAdvisor as a great tool to communicate their honest experience to their friends or to
potential guests, others take advantage of this privilege. Examples range from upset
guests threatening the property to post a negative comment on the website if they do not
receive an appropriate compensation, to guests who post daily on social media how
frustrated they are with their experience while they are still on property. Today’s social
media network “provides consumers with more outlets to sound off”. Fearing a negative
online comment or a bad online reputation forces some companies to give in and please
the customer whether he or she is right or wrong. “Social media and Web platforms have
really changed the playing field in relation to the relationship between the business and
the consumer… users have unfettered power” (Smith, 2012, p. 1).
One guesthouse owner claims that he is spending more time dealing with unfair
reports than actually running his successful seaside hotel, while another owner claims
that she has been “branded a racist after turning a potential guest away”. According to the
article “Tripadvisor could face legal action over reviews” over 700 members of the
hospitality industry have either committed or are considering legal action against
TripAdvisor due to unfair reports (Morris, 2010, p. 1).
63
(6) There Is a Growing Reliance of Consumers on First Hand Blogs and
Reviews: Both Current and Post Stay
Hoteliers know the importance of blogs and reviews. Based on reviews and posts,
a property can either gain popularity or it can lose its reputation. The dynamics can go
both ways. As TripAdvisor publishes rankings, some consumers make their travel
decision based on what is ranked the highest and do not read their reviews. According to
Sawers (2011), it is often not a good idea to base the opinion on the ratings alone
“Sometimes give one star when their only gripe is their soup wasn’t hot enough” (p. 1).
In addition, some reviews are just stating personal preferences and are not applicable to
other traveler’s taste.
It is not uncommon, that hotels are nowadays facing the disadvantages of social
media such as TripAdvisor. Some properties claim that they were forced to close their
business because of the effects that TripAdvisor had on their online reputation. One
example states the “Riverside Hotel and Restaurant” in Worcestershire, England, has
been red-flagged by the website. The owner states that they had to face a loss of business
due to TripAdvisor’s red flagging of the property. When a review is red-flagged, a
warning message appears on its page stating that “TripAdvisor has reasonable cause to
believe that individuals or entities associated with or having an interest in this property
may have interfered with traveler reviews and or the popularity index for this property.”
(Sawers, 2011, p. 1) One of Tripadvisor’s procedures is to check the users email address
as well as the IP address. When the IP address is similar to the hotel’s IP addresses it is
one of the indicators, that a false review has been posted. Therefore the travel website
advises its users to avoid posting reviews directly from the hotel’s lobby or business
center.
Some properties on the other hand are advertising to users to post fake reviews in
return for a small amount of payment. Reviewers are advised to change their email as
well as IP address, so that these fake reviews can go undetected by TripAdvisor
(Travelweekly, 2011). This trend to post fake reviews are hurting the reputation of
TripAdvisor and questioning the trustworthiness of some reviews. Also, this behavior is
concerning the travel industry as their competitors might be taking advantage of these
practices. The question now is, to which extent can users trust reviews on TripAdvisor? It
is a challenge, but to lower the risks, the first thing that consumers should be doing in
such circumstances are to take a look at other reviews posted about that property. The
company Kwikcheck is one of many Online Reputation Management companies helping
businesses worldwide to protect their reputation. In a recent blog posting, the company
discusses the difficulties TripAdvisor is now facing. As an example, the company states
Linnes et al.
64
the “Buccament Bay Resort” in St. Vincent, where a reviewer publically claimed, that the
review she had written was a fake review. In addition, she states that it was one of many
reviews, which were written by hotel associates. “The difficulties for TripAdvisor are
clear – a case like this gives TripAdvisor and their claims to reliability and fraud
detection a real credibility problem and it’s one that will continue to grow as more cases
like this are inevitably revealed.” (Kwikchex, 2012, p. 1).
(7) Growing Importance Paid By Hoteliers Towards Social Media: Social
Media Requires Changes Of Behavior and Skills Of Leaders to Adapt To
Social Media
According to the Bradley and McDonald article in the Harvard Business Review
“Using social media to accomplish a meaningful purpose involves more than providing
new technology and praying for success… While many organizations are technically
ready for social media, they should question the readiness of managers to embrace new
ways of working collaboratively to achieve social success.” (Bradley & McDonald, 2012,
p. 1).
Some properties have put this behavior into practice and established guidelines on
how managers can embrace new ways of working with social media. In some properties
the Manager on duty’s responsibility is to control social media through their smart
phones provided by the company. The manager on duty responsible for either guest
relations or food and beverage has to monitor posted reviews and contact the guest in a
timely manner, while some properties have a public relations manager who is overseeing
social media. In addition, meetings and committees to control and monitor social media
are widely used.
For the purpose of this research, interviews were conducted with the General
Manager Douglas Okada, who is managing the Aston Waikiki Sunset. Ever since his
property became accessible to the public on TripAdvisor, he monitors all comments by
himself. Whether it is a positive or a negative comment, Mr. Okada responds to the
guests “While monitoring social media and responding to guest’s comments I am not
solely writing a response to the guest who left the review but also to all the potential
guests who are reading through the comments prior to making a decision. Seeing that the
property cares about guests’ feedback is crucial and is part of marketing the company.”
(D. Okada, personal communication February 19, 2014).
Currently, there are 884 reviews written about the property and within the
“Honolulu Specialty Lodging” sector it is ranked as the number 11 choice out of 48
properties. One of the reasons for the high ranking is that potential guests see that the
65
General Manager himself truly cares about guest relations. The answers to each comment
are very detailed and personalized. None of the comments seems like it is an automated
response. Douglas Okada: “I make it a practice to respond to all postings, both good and
especially the not so good ones. There are always two sides to every story. It is amazing
how many people read this website before deciding on their hotel accommodations and I
have received numerous emails and phone calls from potential guests, because I respond
to each posting. These inquiries give me an opportunity to increase revenue and thus far,
I have been very successful with that practice. I will continue to respond to every posting
on Trip Advisor.” (D. Okada, personal communication February 19, 2014).
Social media has an incredible impact on the hospitality industry, both positive as
well as negative. The tremendous number of hoteliers need to realize is that even with its
negative impact, it provides the industry with an opportunity to turn a negative
experience into a positive with the right approach.
(8) The Impact of TripAdvisor On Properties In Hawaii
The top 10 hotels in Waikiki, listed on TripAdvisor is shown belong along with
the managers response ratings to its customer as of February 16, 2014. The percentage of
consumers consulting reviews at TripAdvisor and competing online sites prior to booking
a hotel room has steadily increased over the years, as has the number of reviews being
reviewed prior to making their hotel choice. TripAdvisor reported that two-thirds of U.S.
travelers reported using social media while on vacation (TripAdvisor, 2013)
Table 1
Top 10 Hotels in Waikiki Listed on Trip Advisor
1 Trump
2 Halekulani
Responded to traveler ratings:
125/862 excellent reviews
37/217 very good reviews
7/63 average reviews
1/14 poor reviews
5/13 terrible reviews
Total 1,169
0/246 very good
0/33 poor reviews
Total 1,375
Linnes et al.
3 Lotus Honolulu at
Diamond Head
4 The Modern
Honolulu
5 Park Shore
Waikiki
6 The Kahala Hotel
& Resort
54/107 Very good reviews
2/6 poor reviews
Total 431
56/707 Excellent reviews
7/33 poor reviews
Total 1,084
1/1 poor reviews
Total 178
435/819 excellent
125/231 very good
27/47 poor reviews
Total 1,231
7 Outrigger Reef on
the Beach
8/84 poor reviews
Total 3,202
8 Embassy Suite
Waikiki Beach
Walk
19/40 poor reviews
Total 1,560
66
9 Aston Waikiki
Beach Tower
10 Shoreline Hotel
Waikiki, a Joie de
Vivre Hotel
67
6/12 poor reviews
Total 675
Hotel responded to traveler ratings:
0/3 poor reviews
Total 230
Disney’s Aulani Resort and Spa located on Oahu, Hawaii, which opened in 2011,
already has 1413 reviews on TripAdvisor as of February 16, 2014 and is ranked as
number two of three hotels in Kapolei. In comparison, Marriott’s Ko Olina Beach Club
which is ranked as number one hotel in Kapolei has 1483 reviews, but has been on
TripAdvisor for 11 years. Given the fact that Aulani continues to receive the same
amount of reviews as it had since it has opened, the property will have more reviews than
the Ko Olina property in the near future. This demonstrates how a new property increases
in trend and guests are more likely to post comments on social media.
The Trump International Hotel in Waikiki is ranked as the number one hotel in
Honolulu on TripAdvisor every month for the past 37 months. As of February 2014,
Trump Hotel, was rated the number one hotel in Honolulu on TripAdvisor with a total of
1169 reviews for the 37th consecutive month. “Being new does not hurt” says the
Director of Sales and Marketing Mr. Votsis, who has been with the company since its
opening. In 1984 the Halekulani was the last hotel being built in Waikiki before the
Trump Hotel has been built (Votsis, personal communication February 21, 2014).
Referring to Mr. Votsis the properties’ direct competitors are Halekulani and
Kahala. The Halekulani property is located across the street and is currently ranked as
number two with 1375 reviews. The Kahala Hotel, which is located six miles away from
both properties, is currently ranked as number nine hotel with 1231 reviews. Despite the
lower ranking, the Kahala Hotel has one competitive advantage through TripAdvisor.
The property won the Travelers’ choice award 2012 for one of the best luxury hotels in
the United States. The property is ranked as number 25 within the United States and is
the only property listed on Oahu (Votsis, personal communication February 21, 2014).
Linnes et al.
68
According to Mr. Votsis, advertising in newspapers becomes less important:
“People do not believe in it. You can tie it to promotions that sometimes work. Social
media is the focus!” Therefore the sales team does not buy advertisement if it does not
have any electronic link. Nowadays the majority of reservations are being booked
through the Internet. In the case of the Trump Hotel most business is being booked
through an iPad. Once the iPad was available on the market the company’s main focus
was to make the website iPad friendly (Votsis, personal communication February 21,
2014).
As every hotel needs to monitor its social media, the Trump’s Hotel corporate
team is overseeing all social media. Guests are contacted directly when a comment is left
on the TripAdvisor website. This provides the company with an opportunity to follow up
with either the positive or negative feedback.
In the summer of 2011, Starwood created a “Public Relations Management”
position for their hotels on the Island of Kauai in Hawaii due to the increase in social
media usage by its guests on the island of Kauai. The responsibilities range from
overseeing and marketing the social media for the Westin Princeville Resort as well as
the Sheraton Kauai Resort in Poipu. Companies are now investing in their online
reputation. The playing field has changed and what companies previously use to invest in
traditional forms of advertising is now being invested in monitoring online platforms.
According to the public relations agency Weber Shandwick, 88% of consumers said that
word of mouth opinions online are the main driver what they think of a company. While
80% indicated online reviews and search results determine what they think about a
company, 49% reported that social networks are the leading factor (Smith, 2012).
CONCLUSION
Prior to the social media era one had professional reviewers who operated under
clear guidelines. Now, nearly anyone can post which raises the issue of a business that
gets wrongfully rated which potentially can lead to a business shutting down or suffering
an enormous economic loss. To survive, many organizations require an on hand
dedicated social media experts to manage its image online. TripAdvisor allows
companies to respond but many feel powerless in the era of free-for-all nitpicking
(Stellin, 2010).
Social networks’ consumers create over 256 billion impressions on one another
every year. These are done by reviews, posts, blogs and live messaging. Every
organization should and is able to analyze these impressions and identify the
demographics of guests, what their common concerns are, and in turn make these work.
69
(Bernoff & Schadler, 2010). Nowadays, it is crucial for any company and their leaders in
the travel industry to focus on social networks and to be informed about recent postings
as well as the company’s online reputation.
According to a joint study from Booz Allen and social platform developer Buddy
Media, 57% of businesses surveyed plan to increase social media spending and 38% of
CEO’s label social networks as a high priority (Armano, 2011).
Technology has changed the playing field. In recent years TripAdvisor has been
publishing a list of the “Dirtiest Hotels” a list you do not want to be on (Sharkey, 2010;
TripAdvisor, 2011). Social media has turned the business world upside down making it
much harder to defend itself. Companies must have dedicated staff examining the market
for reviews and actively monitoring competitors to survive.
In 2011, the hotel Tennessee Inn charged defamation in which the judge ruled
user opinions are protected. A hotel in Knoxville had to close down its operation when
Judge Phillips rejected the claims in 2012 that such as list would not keep customers
away. On the other hand Croyle, a spokeswoman for TripAdvisor, applauds the court´s
decision, as it continues to publicize the consumers opinion online (Barrouquere, 2013).
The wide reach of these sites can have an overwhelmingly positive or a
devastatingly negative effect on the amount of reservations a hotel receives. With
over 80% of respondents in a Travel Weekly survey stating that they always consult
reviews before booking, having a good relationship with the review site is import. A good
relation with TripAdvisor can provide high-quality guests at higher prices according to
Danette Opczewski, executive vice president for Denihan Hospitality Group (Chipkin,
2012). Many benefits can come from having connections with TripAdvisor and other
review websites. Although having a relationship with the review site is important,
building a relationship with the reviewer is also essential. Management responses to
reviews are important to about 70% of those surveyed by Forrester (Chipkin, 2012).
According to TripAdvisor (2012), hotel managers that actively respond to reviews stand
to generate more business. Over 80% of those surveyed say that good responses to bad
reviews gives them a good impression and show that the hotel truly cares about its guests
(TripAdvisor, 2012). However, management responses can also have a negative effect.
Sixty-four percent of responders said an aggressive or defensive response would make
them less likely to book from that hotel (TripAdvisor, 2012). Responding to past
customers' comments although necessary, must be handled carefully. Recently, hotels
have been taking a more proactive approach in dealing with review websites. Currently,
98% of U.S. properties say reviews are important for booking, and 91% encourage their
guests to post a review. A majority of those properties will also respond to negative as
well as positive reviews (Trip Advisor, 2013). Hotel managers are also using these
Linnes et al.
70
reviews to motivate their staff. Almost 70% Hawaii’s hotels congratulate or even reward
employees for positive online reviews. A few hotels have gone as far as investing in
training to encourage additional positive reviews (Trip Advisor, 2013). Travel review
websites are becoming a key element in hotel management.
Although review sites play a major role in booking vacations, it is not without
challenges. One major problem is the lack of authentication of reviews on TripAdvisor.
As a result, hotels can write negative reviews about their competitors, while hiring public
relations companies to write positive reviews about themselves. However, the sites that
do guarantee the authenticity such as Expedia, have too small of a sampling of guests.
Nevertheless, even with their flaws, Trip Schneck, managing partner with District
Hospitality Partners, believes that online reviews are here to stay. Schneck indicates that
the direction of online reviews centers around verification and personalization (Chipkin,
2012).
Travel review websites have grown increasingly influential in recent years. They
have become so influential that they can have a very positive or very negative effect on a
business. How managers handle online reviews has never been more important. However,
because of how quickly things change nowadays, there are still many challenges on the
horizon. Managers will need to be able to adapt to stay on top of this new method
of word-of-mouth communication and proactive in their approaches.
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19:2, 2014, 74-95
ISSN: 1535-0568
Renaissance ArtsFaire’s Economic & Socio-Cultural Impacts
on a Local Community
SIRIPORN MCDOWALL
School of Hotel, Restaurant, and Tourism Management
New Mexico State University
JAY M. LILLYWHITE
Department of Agricultural Economics and Agricultural Business
Department of Agricultural Economics and Agricultural Business
This study explores the economic and socio-cultural impacts of the 40th
annual Renaissance ArtsFaire in Las Cruces, New Mexico, U.S.A. on the
local community. Data was collected using an on-site intercept survey.
Input-output analysis was employed to estimate the festival’s economic
impact. Results revealed that the majority of respondents were female,
married, repeat customers, residents of Doña Ana county, and earned
USD 49,999 or less annually. Most respondents were very satisfied or
satisfied with their overall event experience, and the festival enjoys very
strong customer loyalty. On average, attendees spent USD 61.30 at the
festival.
KEYWORDS Las Cruces, Renaissance
characteristics, economic impact
ArtsFaire,
attendees,
Address correspondence to Siriporn McDowall, PhD, School of Hotel, Restaurant, and Tourism
Management at New Mexico State University, (575) 646-2379, [email protected]
Renaissance ArtsFaire’s Impact
75
INTRODUCTION
Festivals, defined as planned, public-themed events promoting specific
entertainment concepts related to a particular time and space (Getz, 1991; 2008), play an
important role in many North American communities. They provide opportunities for
positive social interaction (Walo et al., 1996), cultural preservation through arts, crafts
and performances (Long et al., 2004), community awareness or appeal (Alves et al.,
2010; Getz, 1991; 2008; Grunwell et al., 2008; Kim et al., 2007), community selfperception (Alves et al., 2010; McDowall, 2010), improve the relationship between the
community and visitors (Getz, 1991), improve destination attractiveness (Kim et al.,
2007), and improve subjective quality of life (Liburd & Derkzen, 2009). In addition to
these benefits, festivals often boost economic activity within the community, as outside
visitors/tourists participate in the festival spending outside currency within the
community (Long & Perdue, 1990). Due in part to these benefits, the number of North
American festivals has steadily grown since 1980 (Uysal & Gitelson, 1994).
Cultural events play important roles in many local communities, where
opportunities to benefit from traditional tourism may be limited (Jaeger & Mycletun,
2009). In these communities, cultural events become major attractions and the
community uses them as a marketing tool, often investing city dollars to support the
event. Cultural events may also provide sociological/cultural (e.g., quality of life)
benefits in addition to economic benefits for the local community. Given the importance
of cultural events described above, it is imperative that attendees are satisfied. Attracting
attendees is a major challenge that needs to be addressed by all event organizers so that
positive community impacts are maintained, as well as ensuring the sustainability and
economic and sociological/cultural benefits of the event (e.g., Papadimitriou, 2013).
Renaissance faires are an example of a cultural festival with a multitude of potential
positive impacts.
History of Renaissance Faires
Renaissance faires are popular events for communities across the United States.
The festival’s theme harks back to the European Renaissance period (Renaissance being
French for rebirth), often considered by historians as the beginning of modern history.
During the Renaissance, scholars became interested in the study of classical history, art,
and literature, advancing the growth of the arts in Italy. Wealthy families and the church
McDowall, Lillywhite, & Simonsen
76
became patrons who commissioned great art, which in turn provided financial support to
merchants (Browse the World, 2009). Centuries later, U.S. communities re-create the
Renaissance period with themed festivals. The more than 180 renaissance faires and
festivals across the United States boast a mix of attractions, such as historical
reenactments and performance arts (Ren Faire, 1999).
Las Cruces and Las Cruces Renaissance ArtsFaire
The Renaissance ArtsFaire (hereafter referred to as the RenFaire) has been held
annually in Las Cruces, New Mexico (U.S.A.) for more than 40 years. Las Cruces is the
county seat for Doña Ana county, with 99,661 residents (U.S. Census Bureau, 2012) and
has been ranked as one of the fastest-growing communities in the United States for the
past decade (Doña Ana County, 2012). The RenFaire has been held in Las Cruces during
the first weekend of November since 1971. It is one of the state’s largest annual cultural
events and has captured the heart and minds of the community and surrounding area
(Renaissance ArtsFaire, 2009). The faire is organized by the Doña Ana Arts Council
(DAAC), a non-profit organization. The RenFaire is the DAAC’s largest fundraiser,
acting as a showcase for local artists and performers. Along with revenue from the
festival’s admission tickets ($6.00 per adult in 2011), the DAAC raises money by renting
booths to area artists and vendors, with the revenues benefiting DAAC non-profit arts
programs. The RenFaire is ranked as one of the top four annual activities in Las Cruces
and one of the top 100 events in North America (Las Cruces CVB, 2013).
STUDY PURPOSE
Despite its longevity and apparent success, the Renaissance ArtsFaire’s success
and its economic and sociological/cultural impacts on the local economy are not
documented. This paper summarizes research conducted at the 40th Annual Renaissance
ArtsFaire held November 5th – 6th, 2011 at Young Park in Las Cruces, New Mexico. The
purpose of this study was to:
1.
2.
3.
4.
describe attendees’ characteristics.
investigate attendees’ satisfaction and intention to return to the festival.
assess the economic impact of the festival on the Doña Ana county
economy.
explore the sociological/cultural reasons for its longstanding success
which may be valuable to managers of other small cultural festivals.
77
LITERATURE REVIEW
Attendee Satisfaction
Initially, festival research focused on exploring attendees’ satisfaction (e.g., Mohr
et al., 1993; Formica & Uysal, 1995; Crompton & McKay, 1997). Festival satisfaction is
defined as the overall experience attendees had at the festival (Yuan & Jang, 2008).
Numerous studies have examined attendees’ satisfaction with the products/services
provided at festivals and identified many factors contributing to attendees’ satisfaction in
reference to various types and themes of festivals.
Overall satisfaction with the festival may be influenced by performance or
program quality (e.g., Baker & Crompton, 2000; Yan et al., 2012), information services,
service and logistics management, and sanitation (Untong & Piboonrungroj, 2007), as
well as by satisfaction with specific events, amenities, and facilities (e.g., Schofield &
Thompson, 2007; Mensah, 2013). Experience factors such as atmosphere, uniqueness,
cultural theme and self-expression may affect attendee satisfaction (Schofield &
Thompson, 2007; Lee & Hsu, 2013). The influence of festival volunteers and employees
on festival satisfaction has also been documented (Hubbard et al., 2012). Personal
characteristics of attendees, such as attendance motivation (e.g., Savinovic et al., 2012;
Lee & Hsu, 2013), may also influence satisfaction. For example, scholars have reported
mixed findings relative to the influence of attendee residence on satisfaction. While
Formica and Uysal (1995) found no difference in the overall satisfaction levels of local
and non-local attendees of an Italian jazz festival, McDowall (2010) found differences in
the overall satisfaction levels of locals and non-local attendees of a Thai cultural festival.
Later studies explored customer loyalty, an extension of customer satisfaction that
assesses whether satisfied attendees would recommend the festival to others or if they
themselves would return to the festival in the future (e.g., Uysal & Gitelson, 1994;
Snowball & Antrobus, 2002; Sterngold, 2004; Untong & Piboonrungroj, 2007;
McDowall, 2010; 2011; Hubbard et al., 2012; Mensah, 2013; Papadimitriou, 2013).
Satisfaction has a direct effect on behavioral intentions, such as recommendations to
others and intention to return (e.g., Baker & Crompton, 2000; Savinovic et al., 2012; Yan
et al., 2012; Mensah, 2013): thus, the sustainability and continuity of the festival depends
largely on its customers’ loyalty. Loyalty can be measured by whether attendees would
re-visit the destination, recommend the destination to others, mention the festival through
positive word-of-mouth, or are willing to pay more to attend (Lee & Hsu, 2013).
78
Festival loyalty may be influenced by satisfaction with specific products/services
at the event (McDowall et al., 2012; Schofield & Thompson, 2007). Festival loyalty can
also be influenced by the uniqueness of the experience and the authenticity of the cultural
experience (Schofield & Thompson, 2007). Successful festivals prompt repeat
attendance (intention to return next year; e.g., Grunwell et al., 2008; Savinovic et al.,
2012) and/or recommendations to others (e.g., Hubbard et al., 2012). Recommendations
are more likely to come from attendees who are satisfied with a festival’s quality, culture,
programming, and management (McDowall, 2011). Successful festivals engage
attendees and encourage spending, resulting in an economic benefit to the community.
Significance of Festivals on the Local Economy
One of the benefits of hosting festivals, particularly in rural communities, is that
festivals may enhance the local tourism industry by attracting non-residents to the
community. In return, their spending will contribute to the local economy (Thomason &
Perdue, 1987). Festivals have been used to increase demand for local tourism, develop
the area’s uniqueness, and extend the tourism season when planned strategically
(Gunwell et al., 2008). The tangible benefits of festivals – which are often measured by
their economic impact and the amount of money attendees spend while attending –
encourage event organizers and supporters to focus on managing and marketing festivals
for economic gain as well as for the continuity and sustainability of the festival.
Economic impacts occur as “outside” money is spent on festival attendance and
associated activity (e.g., hotel stays from tourists living outside of the local region).
Additionally, local festivals may also contribute to the local economy indirectly, as
spending by local residents may have been lost to festivals outside the region had the
local festival not been held.
A number of studies have explored the economic impact of festivals (i.e., Kim et
al., 1998; Crompton et al., 2001; Tyrrell & Ismail, 2005; Grunwell et al., 2008;
McDowall et al., 2012). The direct economic impacts accrued by a festival vary
depending on a number of factors, including festival type, history, and location. For
example, film festival attendees spend more per person on food, lodging, shopping and
festival activities (i.e., entrance fees to films and gala events) than summer street festival
attendees (Grunwell et al., 2008). Demographic characteristics of attendees, such as
gender, can also influence attendees’ festival expenditures (McDowall et al., 2012).
79
Sociological & Cultural Festival Impacts
Conventional economic analyses may not capture the unique cultural enrichment
offered by arts festivals such as the RenFaire (Sterngold, 2004). The cultural influences
of the arts have been well documented, however. For example, arts festivals can
“strength collective identify formation” (Liburd & Derkzen, 2009, p. 144). Previous
research suggests rural festivals have a number of community- and individual-level social
consequences, such as providing socialization opportunities and increased personal
involvement (Reid, 2007).
Previous research discussed above has explored a number of areas related to
festival success, including attendee satisfaction and loyalty and the economic and
sociological/cultural impacts of festivals on the local economy, attendees, and the
community. This research has demonstrated that festivals generate more than economic
value to the local community and often have intangible cultural and social impacts on the
community. Research indicates that the success and continuity of festivals depend on
attendees’ support, satisfaction, loyalty, and the quality of festival’s programming. Less
research has concurrently explored both these impacts as they relate to smaller festivals
or festivals with arts-related themes. Successful festivals generate both economic and
sociological/cultural impacts for the area. This study adds to the body of knowledge by
attempting to identify both these impacts for a relatively small arts festival.
METHODOLOGY
Survey Instrument
The questionnaire used in the study consisted of five parts. The first section
collected information on the primary purpose of attendees’ visit to the area, their party
size, and past attendance at the RenFaire. If participants had attended previously, they
were asked to identify the number of times they had attended. The second section of the
survey collected information on how respondents acquired festival-related information.
The third section of the survey asked respondents to identify their satisfaction with their
visit, whether they planned on attending the RenFaire again, and whether, based on their
experience with the festival, they would recommend it to others (e.g., friends and family).
This section also asked respondents to describe what they liked most and least about the
festival. The fourth section of the survey collected information about respondents’
satisfaction with products/services provided at the festival and asked respondents to
identify expenditures in six specific attendance-related categories. The final section of
80
the survey asked participants to provide demographic information (e.g., gender, age,
education, income, marital status, residential zip code).
Data Collection Procedure
Thirty university students, previously trained in data collection techniques, were
utilized as survey administrators. Data was collected via an on-site intercept survey
conducted using convenience sampling during both festival days (November 5 th and 6th).
Surveyed participants were intercepted while exiting the festival or while inside the event
grounds (a fenced city park). Data collection started at 12:00 pm to ensure attendees had
opportunities to participate in event activities before completing the survey instrument.
A total of 646 surveys were collected from the 10,210 adult visitors that attended the
2011 RenFaire.
Data Analysis
Information provided by respondents relative to their experience at the festival
(sociological/cultural festival impacts) and demographic characteristics were summarized
using simple statistics (e.g., averages and frequencies obtained with SAS statistical
software; SAS, 2004). The economic impact that non-local festival attendee spending
had on the local economy was estimated using input-output analysis, facilitated by
Impact Analysis for Planning (IMPLAN) software (similar to other studies, e.g., Kim et
al., 1998; Brown et al., 2002).
Input-Output Analysis
Input-output analysis has a long history of being used to estimate the economic
impact specific events within local, regional, or national economic systems. The
methodology quantifies the relationships between different sectors of an economic
system and traces the movement of dollars between industry participants within the
economic system. Input-output analysis requires a number of assumptions in order to
quantify the complex relationships existing within an economic system. Simplifying
assumptions include: (1) each sector produces homogeneous outputs (i.e., product
differences within a specific industry are not accounted for, rather the analysis uses total
output and input dollars, (2) linear production functions are used such that factor
substitution or economies of size are not allowed, (3) factors of production within sectors
81
are assumed to be fully utilized, (4) price changes do not impact resource use, and (5)
there are no resource constraints (i.e., input supply is infinite; Leatherman, 1994).
Input-output models often subdivide the economic impact of a particular event
into three related effects: direct, indirect, and induced effects. Direct effects represent
dollar impacts resulting from expenditure changes associated with a particular activity
(e.g., festival spending). Indirect effects are the economic impacts associated with
industries purchasing goods and services from other industries within the economic
system. Induced effects are economic impacts associated with employee compensation
and proprietor income that are recirculated through the economy via household spending
(MIG, 2013).
RESULTS AND DISCUSSION
Demographic Characteristics of Respondents
A demographic profile of the respondents, compared to those for New Mexico
and the United States, is shown in Table 1. The majority of RenFaire respondents were
married (54.9%) and female (63.3%) with some college education (32.4%). The largest
age group was between the ages of 18 and 24 (23.3%), followed by 25-34 years of age
(21.4%), and 45-54 years old (18.6%). Those 35-44 years of age comprised the smallest
group (10.7%). On average, attendees came in groups of two or more and did not bring
children with their party. Fifty-one percent of respondents reported an annual household
income of USD 49,999 or less.
82
Table 1
Demographic Characteristics
Survey Respondents
New Mexico
U.S.
na
%
Total:
150
138
69
120
96
72
645
23.3%
21.4
10.7
18.6
14.9
11.2
100.0
10%
12.8
12.2
14.1
12.5
13.4
75
10%
13.2
13.3
14.5
11.9
13.1
76
Total:
20
50
203
140
41
173
627
3.2
8.0
32.4
22.3
6.5
27.6
100.0
16.7
26.4
31.9
14.2
10.8
100
14.4
28.5
28.9
17.7
10.4
99.9
Total:
407
236
643
63.3
36.7
100.0
50.6
49.4
100
50.8
49.2
100
Total:
151
137
104
90
84
566
26.7
24.2
18.4
15.9
14.8
100.0
30
27
17.3
10.6
15.2
100.1
24.9
25
18.3
11.8
19.9
99.9
Total:
258
343
24
625
41.3
54.9
3.8
100.0
32.6
46.7
20.7
100
32.1
48.8
19.1
100
Ageb
18-24
25-34
35-44
45-54
55-64
65+
Education
Some high school
High school degree
Some college
Bachelor’s degree
Some graduate schoolc
Graduate degree
Gender
Female
Male
Income
$24,999 or less
$25,000 - $49,999
$50,000 - $74,999
$75,000 - $99,999
$100,000 or more
Marital status
Singled
Married
Other, please specify
%
%
a
May not total 646 due to participant nonresponse.
b
U.S. and New Mexico totals do not sum to 100% as the population under the age of 18 was not included.
c
U.S. Census Bureau does not collect information on this category.
d
Defined by the U.S. Census as "never married."
Source: Primary data and U.S. Census Bureau (2012)
Based on surveyed responses, the festival attracted a significant number of nonlocals (visitors from outside Doña Ana county; 38.8%). Surveyed festival participants
came from 16 different states, including New Mexico. The majority (59.7%) of non-local
83
attendees were from neighboring El Paso, Texas. El Paso, located approximately 45
miles south of Las Cruces, was ranked as the 65th largest Metropolitan Statistical Area the
United States in 2011, with 665,568 residents (U.S. Census Bureau, 2011). It is common
for residents of El Paso and Las Cruces to travel between the two cities for various
cultural, sporting, and other events.
Extrapolating the surveyed respondent demographics to total RenFaire attendees,
as reported by the Doña Ana Arts Council, it is estimated that nearly 4,000 non-locals
attended the 2011 RenFaire. For 31% of respondents, the 40 th RenFaire was their first
time at the event (n = 645). Repeat visitors had previously attended the RenFaire, on
average, more than 5 times.
Customer Satisfaction & Loyalty
Surveyed RenFaire attendees were asked to rate their satisfaction with ten
products and services offered at the 2011 festival using a five-point Likert scale (with 5
indicating “very satisfied” and 1 indicating “very dissatisfied”). The success of a nonprofit-oriented event depends largely on volunteers and booth employees, and the
RenFaire appears to have succeeded in this area: 93.4% of respondents were satisfied or
very satisfied with the friendliness of employees/volunteers (Table 2). Only 66.1% of
respondents were satisfied or very satisfied with the cost of the admission ticket.
Satisfaction with individual products and services, such as admission fees, can be used to
improve these aspects of the event experience in subsequent years, allowing managers to
work toward the goal of improving customer satisfaction. It appears that satisfaction with
every attribute of the festival is not necessary, however, for overall event success, as
evidenced by this festival’s longstanding continuity within the community. Moreover,
respondents who were visiting the RenFaire for the first time had slightly lower overall
satisfaction with the event than respondents who had previously attended the RenFaire
(mean overall satisfaction scores of 4.40 and 4.48, respectively). These findings suggest
this festival’s attendees have strong positive perceptions of the event’s overall quality,
which in turn may influence their sustained involvement (reattendance).
84
Table 2
Respondents' Satisfaction with Specific Elements of the RenFaire
Very
Very
Dissatisfied Dissatisfied Neutral Satisfied Satisfied
% of Respondents
Friendliness of
employees/volunteers
Overall satisfaction with
this event
Quality of vendors
Music & entertainment
Overall quality of the
event
Transportation/parking
Overall experience you
had with this event
Location of event
Food
Drink/beverage
Cost of admission ticket
Mean
SE
n
0.2%
0.3%
6.1%
33.3%
60.1%
4.53
0.03
637
0.8
0.0
0.2
5.8
1.3
0.3
40.5
9.1
6.8
52.7
33.5
41.3
0.2
56.1
51.5
4.46
4.45
4.44
0.03
0.03
0.03
639
638
637
0.0
0.5
0.9
1.1
6.1
10.5
42.8
33.0
50.2
55.0
4.42
4.41
0.03
0.03
638
631
0.3
2.2
1.7
1.3
2.2
1.4
9.4
6.4
6.1
9.7
8.3
18.6
24.5
25.2
22.0
39.7
34.8
35.5
37.3
38.8
50.3
35.1
32.0
30.1
27.3
4.38
3.91
3.90
3.89
3.79
0.03
0.04
0.04
0.04
0.04
638
630
597
611
640
Similar to previous research, customer loyalty was measured using return and
recommendation intentions. Attendees were asked “Would you attend the Renaissance
Artsfaire again?” and “Would you recommend the Renaissance Artsfaire to a friend or
relative?” Respondents rated each question using a 5-point Likert scale. In the first
question, a rating of “5” indicated “very likely” and “1” indicated “very unlikely,” while
in the second question, a rating of “5” indicated “strongly recommend” and “1” indicated
“strongly not recommend.” The majority of respondents (63%) were very likely to attend
the festival again, 24% were likely, 7% were neutral, and 6% were unlikely or very
unlikely to do so. Similarly, the majority of respondents (62%) would also strongly
recommend the festival to a friend or relative, 31% would recommend, 5% were neutral,
and 2% would not recommend or strongly not recommend the festival to a friend or
relative. Locals (those living within Doña Ana County) were more likely to reattend the
festival than non-locals (mean likeliness to reattend score of 4.53 and 4.28, respectively).
Customer loyalty plays an important role in festival continuity. The success of the
festival depends on how well it attracts new customers, satisfies them with products or
services, and how well the festival can convert those satisfied customers into loyal
(repeat) customers. As 82% of non-locals stated they were likely or very likely to
85
reattend the festival, the RenFaire appears to foster strong customer loyalty. Results
suggest that this festival is successful in maintaining its customer base. Previous research
has found that repeat visitors are more satisfied with a festival than first time visitors
(Mohr et al., 1993): our findings support this relationship between satisfaction and repeat
visitation.
Attendee Expenditures
Surveyed respondents were asked to identify expenditures related to attendance at
the festival, including those made in conjunction with the festival but outside of actual
attendance (e.g., meals eaten outside of the festival but in the local area). Total festival
attendees expenditures were extrapolated based on expenditure responses provided by
530 surveyed attendees related to six different expenditure categories: 1) admission fees;
2) food/beverage; 3) lodging; 4) transportation; 5) souvenirs/gifts/arts and crafts; and 6)
miscellaneous (“other” items). Table 3 summarizes total spending by both local and nonlocal festival attendees. Surveyed participants indicated that they spent an average of
USD 61.30 while attending the festival (including expenditures outside the festival itself,
such as hotel stays). This expenditure pattern is similar to that of another local festival
(USD 78.41 per person; Hubbard et al., 2012), but less than per-person festival
expenditures reported elsewhere in the literature. For example, Grunwell et al. (2008)
reported a total mean spending per person of USD 305.12 for Asheville Film Festival
participants, compared to per-person expenditures of USD 181.61 at Bele Chere, a street
festival.
On average, locals spent USD 56.35 at the festival, while non-locals spent USD
67.64. Expenditure differences between the two groups (locals and non-locals) were
driven by higher expenditures made by non-local attendees in all categories except in the
category of souvenirs, gifts, and art.1 The results of this study support previous festival
research, which indicated that the main customers of festivals are locals, whose support
makes the continuance of the festival possible (Getz, 2008). The extrapolation assumes
that expenditures for children were included by adults in their responses and may
underestimate the total expenditures made in association with the festival.
1
Entrance fees were set equal to the listed entrance fee of $6.00 (not taken from survey
instrument).
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Table 3
Average Per-Person Expenditures at the RenFaire by Category
Expenditure
Category
Admission Fee
Hotel
Food & Beverage
Transportation
Souvenirs/Gifts/Art
Other
Total
Attendees
Local
Non-Local
$ 6.00
$ 6.00
0.00
2.41
12.66
16.97
1.35
5.31
33.57
29.81
2.77
7.14
$ 56.35
$ 67.64
Economic Impacts
Average expenditures for surveyed non-local attendees who indicated that their
primary purpose for travel to the region was to attend the RenFaire were extrapolated to
estimate the direct economic impact that the festival had on the local economy, i.e., Doña
Ana county (approximately one quarter of the sample were identified in this group).
Expenditures from non-local attendees who indicated the fair was their primary purpose
for traveling to the region were used as these expenditures represent “new” or “outside”
dollars that would not have otherwise been spent within the local economy (Murphy &
Carmichael, 1991) and can be reasonably attributed to the fair. 2 To the extent that
without the Renaissance Faire, local attendees may have traveled to festivals outside of
the region, the estimate may underestimate the total economic impact that the festival has
on the local economy.
2
Expenditures made by non-locals who did not indicate that the faire was their primary
purpose for traveling to the region were not included in the analysis, except for faire
entrance fees. Other non-faire expenses cannot be directly attributed to the RenFaire.
That is, a person traveling through the region would have spent money on a hotel
accommodations and food in the region regardless of their attendance at the RenFaire.
Excluding souvenirs, gifts and arts purchases made by these individuals may understate
the impact of the faire if these purchases were made as the result of faire attendance and
would not have been made without faire attendance. Future work may attempt to
ascertain this information.
87
The USD 166,603 dollars spent by non-local festival attendees described above,
when margined to account for immediate leakages outside of the local economy (e.g.,
only the retail margin associated with gasoline expenditures are circulated within the
local economy; the majority of the dollars spent on gasoline by festival attendees is
associated with raw material costs that immediately leave the county as payment is made
to a non-local refinery), resulted in a direct effect on the local economy of USD 111,209
(inflated to 2013 dollars). Subsequent rounds of indirect and induced spending are
estimated to contribute an additional $47,103 in spending. The economic multiplier
associated with festival expenditures, calculated as direct expenditures (before
margining) plus indirect and induce spending divided by the direct expenditures (before
margining), was 1.28, suggesting that every dollar in direct effects (again, accounting for
margined goods and services) results in an additional USD 0.28 in local economic output.
This multiplier is similar to those reported in previous research exploring the impact of
festivals (e.g., Chhabra et al., 2003). Table 4 shows the top ten industries positively
impacted by the 2011 Renaissance Faire.
Table 4
Top Ten Industries Affected by the 2011 RenFaire
Sector
Food services and drinking places
Retail Stores - Miscellaneous
Other support services
Imputed rental activity for owner-occupied dwellings
Real estate establishments
Hotels and motels, including casino hotels
Offices of physicians, dentists, and other health practitioners
Monetary authorities and depository credit activities
Private hospitals
Retail Stores - Gasoline stations
Output ($)
$45,480
40,704
23,855
4,497
3,976
3,485
2,583
2,220
2,105
1,688
Sociological & Cultural Impacts
While the economic impact of this festival does not seem particularly large, it is
important to recognize that the complete value of the festival cannot be expressly
quantified. For example, participants at one festival note that the festival “has a greater
social than economic impact on the local community” (Alves et al., 2010, p. 33). These
88
social impacts are especially true with arts festivals. “Smaller and more locally oriented
[nonprofit arts and cultural organizations]” such as the RenFaire “…may contribute more
to a community’s quality of life and long-term development than do their large
counterparts” (Sterngold, 2004, p. 184), who may seem more successful as defined by
economic impact. After all, “even the most accurate economic impact study of a public
good… will not account for its full value because such a study cannot give a monetary
value to the positive externalities which such goods provide” (Snowball & Antrobus,
2002, p. 1318). These externalities were noted by RenFaire participants: one participant
enjoyed “the exposure to a different era,” while others enjoyed the “educational/fun stuff
for kids” and the “atmosphere.” Although these experiences cannot be easily valued
economically, they contribute to attendees’ quality of life and local community.
Another sociological benefit of the festival is that the RenFaire offers the
opportunity to foster a sense of place, that is, feeling of belonging and identity for people
involved and for the community (e.g., Quinn, 2005). Smaller community festivals draw
local support (Jaeger & Mykeletun, 2013). Small festivals such as the RenFaire require
significant involvement from the community to produce (and attend) the festival. For this
festival, the locals take pride in their involvement, as shown by the attendees’ very high
satisfaction with the friendliness of the Faire’s volunteers and employees.
To aid in capturing the sociological/cultural impacts of the festival on attendees,
respondents identified their favorite activities/items in an open-ended question when
completing the survey. While opened-ended questions are more time-consuming to
answer, the majority of respondents (89.78%) chose to answer what they liked the most
about the event. The most popular aspects of the RenFaire were its food, arts, crafts,
costume, and “everything” (Table 5). The festival’s arts, crafts, and period costumes
support the event’s Renaissance theme. Vendors and attendees are encouraged to dress
up in period attire, and attendees can purchase period costumes at the festival. To
enhance the Renaissance atmosphere, a “Royal Court” is appointed and takes part in a
parade, to which travels throughout the streets of the Faire. Food provided at the festival
also reflects the Renaissance theme, and vendors provide Renaissance-era delicacies such
as ale and mutton stew. Attendees very much enjoy these aspects of the event, as
evidenced by their survey responses.
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Table 5
Favorite Activities and Aspects of the 2011 RenFair,
As Identified by Attendees (n=580)
Activity/Aspect
Food
Arts
Crafts
Costumes
Everything
Entertainment
Atmosphere
Booths
Vendors
Shows
Respondents
n
%
146
25.2%
70
12.1
61
10.5
51
8.8
43
7.4
40
6.9
39
6.7
39
6.7
39
6.7
30
5.2
CONCLUSIONS
The purpose of this study was to document a success of a small cultural festival
held in a small community, whose primary goal in hosting the event is to support the host
organization (DAAC) and other non-profit organizations in the local community. Data
was collected using a site-intercept survey of a convenience sample of festival attendees.
Descriptive statistical and economic impact analyses were conducted on the data.
Results indicate respondents were very satisfied with the friendliness of
employees and volunteers, as well as with the festival itself. Given the contribution of
the festival to the community and the unique theme of the festival, it is not surprising to
see the cooperation of locals in the form of volunteers to work together to make this event
a memorable and successful festival in the city. The majority of attendees were repeat
visitors, having attended this festival five or more times before. Given the size of the
host community and festival, the satisfaction in these areas has contributed to the success
and continuity of the festival for over 40 years. Results suggest that the festival
organizers pay attention to customers’ wants and needs and seek to satisfy them,
demonstrates the influence of quality planning, organization, and management on event
success.
This festival generates revenue for a local arts non-profit and an economic impact
on the local economy. The total spending across all categories by all visitors at this
festival was USD 61.30. The top three expenditure categories among respondents were
90
souvenirs/gifts/arts, food/beverage, and admission fees. Local food service, retail stores,
art promotion, and lodging industries benefited from the indirect and induced impacts
initiated by non-local festival attendee spending.
In addition to economic impacts, this festival has a number of
sociological/cultural impacts on its attendees and the broader community. The RenFaire
is an excellent example of a successful small community event, of which there are many
throughout the United States. These events attract more locals than non-locals, serve as a
social gathering place for locals, and promote a sense of community pride as locals work
together to host a successful event years after year. The results of this study indicate that
the RenFaire impacts the community’s social and cultural structure and attendees’ quality
of life, which is perhaps more significant than its economic impact. The festival provides
a place and space for artists to showcase their talent through the arts, exchange their
ideas, and gain inspiration. Other relatively small, local festivals seeking to enhance the
region’s quality of life and impact the community in other sociological/cultural ways may
consider the success of this festival when managing their own event.
RECOMMENDATIONS
Based on the results of this study, the following steps are recommended for those
who are responsible for managing similar small events like the RenFaire:
1.
2.
3.
4.
In order to better understand customer preferences and satisfaction levels,
management should conduct a customer satisfaction survey, similar to
the survey used in this analysis, on a regular basis. The survey
frequency depends on a number of factors, including resource
availability and findings from previous surveys.
Maintain the quality and monitor the price of souvenirs/gifts/arts and food
and beverage, as respondents spent the most on these two categories
while attending the festival.
Continue to provide products/services to meet local customers’
expectations, as locals were the primary event customers.
Manage the quality of the festival program. This could be influenced by
providing a variety of components, taking sponsor requirements into
consideration, arranging for multiple activities within the event to
happen simultaneously, investing in organization and planning, being
attentive to details, allowing for flexibility, cooperating and
coordinating the festival with existing tourism products, and learning
5.
91
from previous event mistakes.
Market the festival to attract non-locals and expand the customer base, as
this group spent more than locals at the festival. This can be achieved
by utilizing available advertising venues, such as radio/newspaper.
Limitations and Suggestions for Future Research
Study limitations that should be noted include (1) the use of convenience
sampling (site-intercept survey), (2) potential understatement of youth impacts, both on
qualitative and quantitative measures of the festival’s impact on the local
community/economy, and (3) omission of volunteer and vendor impacts on the local
economy. While this study identifies major aspects of the RenFaire influencing
attendees’ quality of life, a more holistic study of sociological impacts to both attendees
and non-attendees could be valuable for festival managers seeking to document their
festival’s positive impacts on the community as a whole. Moreover, further research is
needed to identify additional metrics for the sociological and cultural (non-financial)
impacts of small festivals such as the RenFaire.
Acknowledgements
This research was made possible through the support of New Mexico State
University’s Agricultural Experiment Station. This research was also conducted with the
support of the Doña Ana Arts Council (DAAC), which assisted with the development of
the survey.
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96
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