1 + 1 < 2! Effects of Social Media Engagement and Advertising on Firm Value of Tourism and Hospitality Companies

Abstract

Engaging customers via social media networking has become a rising trend of investments for tourism and hospitality firms. This new trend is termed “social media engagement.” However, whether social media engagement can actually lead to increased financial value for tourism and hospitality firms is doubted. This study theorizes and empirically examines the relationship between social media engagement and intangible value of tourism and hospitality firms, and the joint effects of social media engagement and advertising investments on firm value. Using a daily longitudinal data set from tourism and hospitality firms that have issued domestic A-shares in China, this study finds that social media engagement has a significant and positive relationship with the firm value of tourism and hospitality companies. However, the two types of investments interact as substitutes, such that increasing advertising investments attenuate the beneficial effect of social media engagement on firm value.

Instagram activities, engagement and enrollment intention in Indonesia: A case in the third largest island in the world

“…Our research findings align with Wahab et al's (2023) observations demonstrating the influence of emarketing on student loyalty mediated through enrollment intention (Wahab et al, 2023). Furthermore, Shuai Yang et al (2021) have substantiated this relationship by elucidating how social media advertisements directly impact the valuation of companies within the hospitality sector. These research findings demonstrate how social media advertising has a significant impact on a variety of different sectors highlighting its complex influence on different aspects of engagement and commercial value.…”

Los millenials y la honestidad como valor de marca. El caso Goiko en Instagram

“…La COVID-19 ha cambiado y acentuado ese concepto de engagement o compromiso (Caldevilla-Domínguez et al, 2021;Barrientos-Báez et al, 2022;. Yang et al (2021) creen que la inversión en redes sociales ofrece una inversión en capital intangible y concretamente, en hostelería y en turismo, permiten conseguir una relación positiva y significativa entre la empresa y el cliente. Piatak y Mikkelsen (2021) se preguntan si el compromiso online es equivalente al compromiso offline y concluyen afirmativamente, sobre todo en temas políticos y sociales.…”

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