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Social Media’s Influence of the
Restaurant Industry
Reginald Terry
Introduction
• The purpose of the study is to
investigate social media’s role on the
restaurant industry and how it
influences customer satisfaction.
• To show the relationship between
social media and customer satisfaction.
Literatures
The perceived influence of user reviews in the hospitality industry (Ong, 2012).This
article shows the influence of user reviews can help with
consumer decisions in their choice of restaurants. They
conducted studies on consumers who read and created customer
reviews on specific sites such as Yelp.com and noticed that
people looked at specific things about the restaurant and made
their decisions based on what they read of these reviews. They
also found out that consumers do rely heavily on positive
reviews when reading them. What they did see is that many of
the consumers use the online reviews to narrow down their
choices but not make a selection
H1: Customers favorable reviews positively
influence restaurant choice decision
 
Literatures
A Study on the Influence of Word of Mouth
Communication in the Facebook Audience of
Restaurants (Nunes & Lucian, 2014 ).
This article shows how using word of mouth on Facebook can influence
the decision making process of people looking for a good restaurant.
Their conclusion shows that word of mouth communication is a very
effective tool on Facebook in suggesting and recommending restaurants.
H2: Word of mouth communication from family/friends positively
influences restaurant choice search.
Literatures
Why people use Yelp.com: An exploration of uses
and gratifications (Hicks, Comp, Horovitz,
Hovarter, Miki, & Bevin, 2012).
This article is about how the use of user generated sites like
Yelp.com can influence customer satisfaction. The researchers
looked at customer attitudes and behaviors and found that people
use Yelp.com for information-seeking purposes, entertainment and
just to pass time. They found that there was a greater usage for
restaurant seekers than any other.
H3: Word of mouth communication
positively influence restaurant choice.
Model
Favorable
Review
WOM from
3rd
party
Restaurant
Choice
WOM from
family &
friends
Method
• Sample- 20 participants consisting
of friends, family, and students and
staff of North Carolina Central
University.
• Survey questionnaire with 12
research questions and 4 demographic
questions.
• The sample consisted of 12 females
and 8 males with age ranges from 18-
36 years olds.
Result (1)
Customers favorable reviews positively influence restaurant
choice decision
N Mean S.D Min. Max.
TripAdvisor.c
om
20 2.7 1.26074 1.00 5.00
Yelp.com 20 2.65 1.26803 1.00 5.00
Q5 20 3.8 1.28145 1.00 5.00
Total 20 3.05 1.27007 1.00 5.00
Result (2)
Word of mouth communication from family/friends positively
influences restaurant search.
N Mean S.D Min. Max.
Q8 20 1.5 .51299 1.00 2.00
Q9 20 3.2 1.20852 1.00 5.00
Q10 20 3.3 1.08094 2.00 5.00
Q11 20 3.1 1.29371 1.00 2.00
Total 20 2.78 1.02404 1.20 3.50
Result (3)
Word of mouth communication positively influence restaurant
revisit
N Mean S.D Min. Max.
Q12 20 1.5 .50262 1.00 2.00
Q7 20 1.5 .51299 1.00 2.00
Q1 20 2.4 1.14248 1.00 5.00
Writing a
review
20 3.6 1.14248 1.00 5.00
Total 20 3.0 1.10019 1.00 3.50
Conclusion and Implications
• All hypotheses were supported
• Favorable reviews positively influence
choice decisions
• Word of mouth positively influences
restaurant search
• Word of mouth positively influences
restaurant revisit
• Suggest more sample to use random sampling
• Utilize different social media sites (i.e.
Instagram, Pinterest)
• Track consumer participation to increase
the number of users.
Point
Possibl
e
Point
Earned
Cover Page 0.5 0.5
Introduction 1 1
Literature (H1) 3 3 Good match with literatures
and hypotheses.Literature (H2)
Literature (H3)
Methodology 1 1 Missing data collection
procedure
Result (H1) 3 2.5 Must be mentioned values of
question same as codebook not
Just list Q1, Q2, etc.
Result (H2)
Result (H3)
Conclusion
Implication
1.5 1.5 Need to mention limitation or
suggestions of the future
research.
TOTAL 10 9.5 + bonus point –model (.5)
10/10

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Final Paper Presentation revised and graded

  • 1. Social Media’s Influence of the Restaurant Industry Reginald Terry
  • 2. Introduction • The purpose of the study is to investigate social media’s role on the restaurant industry and how it influences customer satisfaction. • To show the relationship between social media and customer satisfaction.
  • 3. Literatures The perceived influence of user reviews in the hospitality industry (Ong, 2012).This article shows the influence of user reviews can help with consumer decisions in their choice of restaurants. They conducted studies on consumers who read and created customer reviews on specific sites such as Yelp.com and noticed that people looked at specific things about the restaurant and made their decisions based on what they read of these reviews. They also found out that consumers do rely heavily on positive reviews when reading them. What they did see is that many of the consumers use the online reviews to narrow down their choices but not make a selection H1: Customers favorable reviews positively influence restaurant choice decision  
  • 4. Literatures A Study on the Influence of Word of Mouth Communication in the Facebook Audience of Restaurants (Nunes & Lucian, 2014 ). This article shows how using word of mouth on Facebook can influence the decision making process of people looking for a good restaurant. Their conclusion shows that word of mouth communication is a very effective tool on Facebook in suggesting and recommending restaurants. H2: Word of mouth communication from family/friends positively influences restaurant choice search.
  • 5. Literatures Why people use Yelp.com: An exploration of uses and gratifications (Hicks, Comp, Horovitz, Hovarter, Miki, & Bevin, 2012). This article is about how the use of user generated sites like Yelp.com can influence customer satisfaction. The researchers looked at customer attitudes and behaviors and found that people use Yelp.com for information-seeking purposes, entertainment and just to pass time. They found that there was a greater usage for restaurant seekers than any other. H3: Word of mouth communication positively influence restaurant choice.
  • 7. Method • Sample- 20 participants consisting of friends, family, and students and staff of North Carolina Central University. • Survey questionnaire with 12 research questions and 4 demographic questions. • The sample consisted of 12 females and 8 males with age ranges from 18- 36 years olds.
  • 8. Result (1) Customers favorable reviews positively influence restaurant choice decision N Mean S.D Min. Max. TripAdvisor.c om 20 2.7 1.26074 1.00 5.00 Yelp.com 20 2.65 1.26803 1.00 5.00 Q5 20 3.8 1.28145 1.00 5.00 Total 20 3.05 1.27007 1.00 5.00
  • 9. Result (2) Word of mouth communication from family/friends positively influences restaurant search. N Mean S.D Min. Max. Q8 20 1.5 .51299 1.00 2.00 Q9 20 3.2 1.20852 1.00 5.00 Q10 20 3.3 1.08094 2.00 5.00 Q11 20 3.1 1.29371 1.00 2.00 Total 20 2.78 1.02404 1.20 3.50
  • 10. Result (3) Word of mouth communication positively influence restaurant revisit N Mean S.D Min. Max. Q12 20 1.5 .50262 1.00 2.00 Q7 20 1.5 .51299 1.00 2.00 Q1 20 2.4 1.14248 1.00 5.00 Writing a review 20 3.6 1.14248 1.00 5.00 Total 20 3.0 1.10019 1.00 3.50
  • 11. Conclusion and Implications • All hypotheses were supported • Favorable reviews positively influence choice decisions • Word of mouth positively influences restaurant search • Word of mouth positively influences restaurant revisit • Suggest more sample to use random sampling • Utilize different social media sites (i.e. Instagram, Pinterest) • Track consumer participation to increase the number of users.
  • 12. Point Possibl e Point Earned Cover Page 0.5 0.5 Introduction 1 1 Literature (H1) 3 3 Good match with literatures and hypotheses.Literature (H2) Literature (H3) Methodology 1 1 Missing data collection procedure Result (H1) 3 2.5 Must be mentioned values of question same as codebook not Just list Q1, Q2, etc. Result (H2) Result (H3) Conclusion Implication 1.5 1.5 Need to mention limitation or suggestions of the future research. TOTAL 10 9.5 + bonus point –model (.5) 10/10