| 2.2 Advantages and Challenges of Internet Marketing
On the benefit side, there is no doubt that the Internet gives access to a great number of people, as well as it offers the opportunity of building closer relationships with customers (Buhalis & Licata, 2002; Wang et al., 2002). The Internet is an exposure of property by which advertising and marketing opportunities occur (Baloglu & Pekcan, 2006). It creates faster and better communication, which makes it easy to identify and target that base. The Internet reduces the time and costs associated with delivery and postage (Gursan, 2002).
Through the Internet, the hospitality industry has been able to market services in a variety of methods ranging from mass-marketing to mass-customization where customers’ needs and wants are targeted individually (Ismail & Mills, 2001; Paraskevas & Buhalis, 2002). Furthermore, the Internet works in cyberspace, which brings the opportunity of being free from geographical and national borders (Anckar & Walden, 2001). Finally, with its equalizing effect the Internet creates a level playing field where size does not matter (Sigala, 2003).
Online advertising, in all its forms, offers a chance to brand and inform, not just sell also although it is unique, it is related to offline branding. The Web has become the single most important medium for people at work. Most such users view it as a place where successful, modern, up-to-date brands advertise. (Demarse 2002)
On the drawback side, the financial cost and time spent setting up and maintaining the fundamental system can be mentioned (Heung, 2003; Van Hoof & Combrink, 1998). According to Palumbo and Herbig (1998), security, confidentiality, and privacy issues in financial transactions are important and common problems on the Internet.
Another drawback that many potential consumers have is the low speed access or low bandwidth connection to the Internet via modems (Anckar &Walden, 2001). Besides its potential benefit of reaching a large audience, your competitors do have the same benefit, which forces your website to compete with thousands of others (Gilbert & Powell-Perry, 2002). Alienation of potential customers and losing that personal touch are some of the fears of both customers and hoteliers (Blikom, 1996).
|
