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9th International Conference
on
Business and Information
ICBI - 2018
‘Enriching multidisciplinary research potentials of international
collaboration towards sustainable development’
Proceedings
Editors:
Dr. P. N. D. Fernando
Prof. (Dr.) A. C. De Alwis
Prof. (Dr.) Hareesh N. Ramanathan
Tharindu Dananjaya Weerasinghe
Dr. George C. Mathew
ii
© 2018 - Faculty of Commerce and Management Studies
9th International Conference on Business & Information
‘Enriching multidisciplinary research potentials of international collaboration
towards sustainable development’
Proceedings
Responsibility of the content of the manuscripts included in this publication
remains with the respective author/s.
Web: www.kln.ac.lk/fcms/icbi2018
E-Mail: icbi@kln.ac.lk
Telephone: +94112903502
Fax: +94112917708
ISSN 2465-6399
Faculty of Commerce and Management Studies
University of Kelaniya, Sri Lanka
Production Credits: Mr. E. A. Y. D. Perera (Department of Human Resource
Management, University of Kelaniya)
Cover Design: Mr. Dinuka Kannangara (Department of Commerce and Financial
Management, University of Kelaniya)
iii
MESSAGE FROM THE CONFERENCE CO-CHAIR
We have a great pleasure in associating with the Faculty of
Commerce and Management Studies, University of Kelaniya,
Sri Lanka in co-hosting ICBI 2018. The theme of the
conference is ‘Enriching multidisciplinary research
potentials of international collaboration towards
sustainable development’.
The relationship between India and Sri Lanka is evident even
during the prehistoric times. Both countries share great legacy
of intellectual, cultural, religious and linguistic interactions.
Trade and investment have grown and there is a cooperation in the fields of
development, education, culture and defense. Both countries share a broad
understanding on major issues of international interest.
South Asia’s economic dynamism provides a cutting edge in the ability of countries
to transform and build a sustainable future for all people living in the area.
Sustainability in this region actually should focus on diversification and
competitiveness. Countries looking for sustainable development should be
emphasizing more on improving basic transport infrastructure, drinking water,
electricity, sanitation and the desire to bridge the gap between what is currently
available and what is expected. The demographic dividend should be productively
capitalized by providing universal health amenities, education and vocational skill
development training for all. Greater efforts may be taken to enhance agricultural
productivity in order to address food security issues. Financial inclusion, social
security and promoting women entrepreneurship would go a long way towards
creating a more balanced development era. The need for creating a sustainable
environment by adopting the ‘3-R’ of Reduce; Reuse; Recycle and sustainable solid
waste management which needs to be adopted as a part of sustainable consumption.
Hence, this conference is focusing on different parameters under the broad areas of
Marketing, Accounting & Finance, Human Resource Management, Management,
Economics, Entrepreneurship and ICT. We believe that, the deliberations taking place
based on the manuscripts prepared by scholars would lead to a greater thought and
could develop a new culture towards sustainable development.
Prof. (Dr.) Hareesh N. Ramanathan
Conference Co-chair - ICBI 2018
Department of Management Studies
Toc H Institute of Science and Technology, India
iv
MESSAGE FROM THE CONFERENCE CO-CHAIR
On behalf of the Faculty of Commerce and Management
Studies, University Kelaniya, Sri Lanka, it is my great
pleasure to welcome all the distinguished presenters,
delegates, invited speakers and participants to the
International Conference on Business and Information –
2018 for the ninth consecutive year.
The Faculty of Commerce and Management Studies,
University of Kelaniya marks a special momentous in its
history in research and publication by organizing the ICBI-2018 at Toc H Institute of
Science and Technology, India, as the Indo-Sri Lanka First Ever Co–Host
Management Research Collaboration.
I trust with an innovative theme as ‘Enriching multidisciplinary research potentials of
international collaboration for sustainable Development’, ICBI-2018 attempts to fill
the gap which has been long awaiting in the industry.
The goal of ICBI-2018 is to bring leading academia, researchers and scholars to
exchange and share their experience and research results on all domains of
management to a common platform which attempts to screen out research areas which
capitalizes on the strength of academics and to harmonize with the practitioners. The
successful blend of various researches carried out in different industries will allow the
industry to view contemporary business world and its practices.
Through your participation, the goal of ICBI-2018 could be accomplished, and our
organizing committee of ICBI - 2018 has worked hard in putting together an excellent
programme to meet your expectations.
I appreciate and compliment your participation in this conference, and very pleased
to have you here in India. I wish all of you a fruitful learning experience and a
meaningful conference.
Prof. (Dr.) A. Chamaru De Alwis
Conference Co-chair - ICBI 2018
Faculty of Commerce and Management Studies
University of Kelaniya, Sri Lanka
v
MESSAGE FROM THE CONFERENCE CHAIR / DEAN OF THE
FACULTY
It is with great pleasure and pride that I pen down this
message for the conference proceedings published in the
9th International Conference on Business and Information
(ICBI-2018) co-hosted by University of Kelaniya, Sri
Lanka and Toc H Institute of Science and Technology,
Arakkunnam, Kerala, India. This year’s conference is
organized under the theme, ‘Enriching multidisciplinary
research potentials of international collaboration towards
sustainable development’. This year, ICBI-2018 takes the prominence with its joint
conduct out of the country, India for the first time after organizing eight conferences
in Sri Lanka, consecutively.
As the Dean of the Faculty and the Chair of the Conference I take this opportunity to
express my sincere thanks to the members of the academics including committee
members, reviewers, and members of the panel of judges at Faculty of Commerce and
Management Studies, University of Kelaniya, Sri Lanka and Toc H Institute of
Science and Technology, Arakkunnam, Kerala, India for their involvement and
dedication in organizing this conference, as if not for their untiring efforts, this would
not come true. I firmly believe that this event is a success because of the institutional
support and continuous encouragement extended by the Vice Chancellor of University
of Kelaniya, Professor D. M. Semasinghe. Sincere words of special thanks goes to
Prof. Chamaru De Alwis, Mr. Tharindu Weerasinghe and Mr. Ruwan Wijesinghe for
their excellent work rendered in coordinating all the activities leading to the ninth
successful annual research conference.
In conclusion, I wish all the very best to scholars who will be presenting and sharing
their new knowledge at the 9th International Conference on Business and Information.
Dr. P. N. D. Fernando
Conference Chair - ICBI 2018
Faculty of Commerce and Management Studies
University of Kelaniya, Sri Lanka
vi
MESSAGE FROM THE VICE CHANCELLOR
In this knowledge era, research has become one of the
main feature of the university education system. In the
process of moving towards a research university, the 9th
International Conference on Business and Information
2018 (ICBI) with the theme of ‘Enriching
multidisciplinary research potentials of international
collaboration towards sustainable development’ has
leaped a greater step by extending the conference in
collaboration with India as the Indo-Sri Lanka first ever
co-host research collaboration, which is a greater achievement. Further, the present
conference takes an in-depth look at many issues raised in multidisciplinary areas in
the contemporary world that generate obstacles and opportunities for the business
world. This conference would embark a sound platform for initiating foreign
collaborations with international universities & institutes to interchange knowledge
and research skills.
It is a great pleasure to welcome all delegates and participants to this conference, for
coming from near and afar. I would like to congratulate all the presenters and best of
luck with your presentations and publications. I would like to thank the Faculty of
Commerce and Management Studies, University of Kelaniya and Toc H Institute of
Science and Technology, India for their commitments and superb drive in organizing
this conference. I am sure that this occasion will be able to build a platform towards
strengthening our relationships in knowledge sharing, while at the same time
providing the necessary thrust in joint research collaborations. It is my desire that this
conference will be a foundation for the growth of new insights towards a better
tomorrow.
I congratulate and wish for a fruitful ICBI-2018.
Professor (Dr.) D. M. Semasinghe
The Vice Chancellor
University of Kelaniya
Sri Lanka
vii
PANEL OF REVIEWERS
Prof. J. M. D. Ariyarathne - Department of Accountancy, University of
Kelaniya, Sri Lanka
Prof. P. M. C. Thilakarathne - Department of Accountancy, University of
Kelaniya, Sri Lanka
Dr. W. V. A. D. Karunarathne - Department of Accountancy, University of
Kelaniya, Sri Lanka
Dr. K. K. Tilakasiri - Department of Accountancy, University of Kelaniya, Sri
Lanka
Dr. D. K. Y. Abeywardena - Department of Accountancy, University of
Kelaniya, Sri Lanka
Mr. A. M. I. Lakshan - Department of Accountancy, University of Kelaniya, Sri
Lanka
Senior Prof. R. P. C. Ranjani - Department of Finance, University of Kelaniya,
Sri Lanka
Prof. S. S. Weligamage - Department of Finance, University of Kelaniya, Sri
Lanka
Dr. Ruwan Abeysekara - Department of Finance, University of Kelaniya, Sri
Lanka
Mr. C. S. P. K. Fernando - Department of Finance, University of Kelaniya, Sri
Lanka
Mrs. J. M. R. Fernando - Department of Finance, University of Kelaniya, Sri
Lanka
Mrs. P. W. N. A. Kumari - Department of Finance, University of Kelaniya, Sri
Lanka
Mr. P. S. Morawakage - Department of Finance, University of Kelaniya, Sri
Lanka
Ms. K .M. K. N. S. Kulathunga - Department of Finance, University of
Kelaniya, Sri Lanka
Ms. Dananjani Basnayake - Department of Finance, University of Kelaniya, Sri
Lanka
Mr. M. R. P. Wijesinghe - Department of Finance, University of Kelaniya, Sri
Lanka
Mrs. S. M. Chandrasena - Department of Finance, University of Kelaniya, Sri
Lanka
Prof. P. N. Gamage - Department of Human Resource Management, University
of Kelaniya, Sri Lanka
Prof. A. Chamaru De Alwis - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. I. Welmilla - Department of Human Resource Management, University of
Kelaniya, Sri Lanka
Mr. M. D. P. Peiris - Department of Human Resource Management, University
of Kelaniya, Sri Lanka
viii
Ms. M. P. N. Janadari - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. W. A. S. Weerakkody - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. W. M. S. K. Wanigasekera - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. Y. M. S. W. V. Sangarandeniya - Department of Human Resource
Management, University of Kelaniya, Sri Lanka
Dr. R. A. I. C. Karunarathne - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. J. A. C. B. Jayasinghe - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. H. M. Nishanthi - Department of Human Resource Management, University
of Kelaniya, Sri Lanka
Mr. G. H. B. A. De Silva - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. H. M. S. V. Silva - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. T. J. R. Thisera - Department of Human Resource Management, University
of Kelaniya, Sri Lanka
Ms. R. K. N. D. Darshani - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Mr. T. D. Weerasinghe - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. S. M. D. Y. Jayarathna - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Ms. M. K. D. Padmasiri - Department of Human Resource Management,
University of Kelaniya, Sri Lanka
Mr. D. Wasantha Kumara - Department of Marketing Management, University
of Kelaniya, Sri Lanka
Dr. R. A. S. Weerasiri - Department of Marketing Management, University of
Kelaniya, Sri Lanka
Dr. W. M. C. B. Wanninayake - Department of Marketing Management,
University of Kelaniya, Sri Lanka
Dr. H. M. R. P. Herath - Department of Marketing Management, University of
Kelaniya, Sri Lanka
Ms. Bimali Wijesundara - Department of Marketing Management, University of
Kelaniya, Sri Lanka
Dr. Ravi Dissanayake - Department of Marketing Management, University of
Kelaniya, Sri Lanka
Mrs. Madhuri Fernando - Department of Marketing Management, University of
Kelaniya, Sri Lanka
Ms. Shanika Wijenayake - Department of Marketing Management, University of
Kelaniya, Sri Lanka
ix
Mrs. S. Amarathunga - Department of Commerce and Financial Management,
University of Kelaniya, Sri Lanka
Dr. S. D. Edirisinghe - Department of Commerce and Financial Management,
University of Kelaniya, Sri Lanka
Dr. S. M. A. K. Samarakoon - Department of Commerce and Financial
Management, University of Kelaniya, Sri Lanka
Dr. M. M. M. Shamil - Department of Commerce and Financial Management,
University of Kelaniya, Sri Lanka
Dr. M. R. K. N. Yatigammana - Department of Commerce and Financial
Management, University of Kelaniya, Sri Lanka
Dr. H. A. K. N. S. Surangi - Department of Commerce and Financial
Management, University of Kelaniya, Sri Lanka
Mr. H. A. H. Hettiarachchi - Department of Commerce and Financial
Management, University of Kelaniya, Sri Lanka
Mr. B. K. H. D. Anuranga - Department of Commerce and Financial
Management, University of Kelaniya, Sri Lanka
Senior Prof. H. H. D. N. P. Opatha - Department of Human Resource
Management, University of Sri Jayewardenepura, Sri Lanka
Prof. Aruna S. Gamage - Department of Human Resource Management,
University of Sri Jayewardenepura, Sri Lanka
Mrs. C. K. Batagoda - Department of Human Resource Management, University
of Sri Jayewardenepura, Sri Lanka
Dr. L. A. P. Madhuwanthi - Department of Public Administration, University of
Sri Jayewardenepura, Sri Lanka
Dr. R. P .C .K. Jayasinghe - Department of Public Administration, University of
Sri Jayewardenepura, Sri Lanka
Mr. Pradeep Uluwaduge - Chief HR Officer, LOLC Group, Sri Lanka
Dr. Parakum Pathirana - Head of IT Security, LOLC Group, Sri Lanka
Prof. (Dr.) Hareesh N. Ramanathan - Toc H Institute of Science and
Technology, India
Dr. George C. Mathew - Toc H Institute of Science and Technology, India
Prof. (Dr.) S. Ganesan - Firebird Institute of Research in Management, India
Prof. (Dr.) M. Madoun - Firebird Institute of Research in Management, India
Prof. (Dr.) Prema Sankaran - Firebird Institute of Research in Management,
India
Prof. M. Sankar - Firebird Institute of Research in Management, India
Dr. P. Senthil Prakash - Firebird Institute of Research in Management, India
Dr. S. Ramkumar - Firebird Institute of Research in Management, India
Prof. (Dr.) Sudhir Rana - Fortune Institute of International Business, India
Prof. (Dr.) Nimit Gupta - Fortune Institute of International Business, India
x
CONFERENCE COMMITTEE
Conference Chair:
Dr. P. N. D. Fernando - University of Kelaniya, Sri Lanka
Conference Co-Chairs:
Prof. (Dr.) Chamaru De Alwis, University of Kelaniya, Sri Lanka
Prof. (Dr.) Hareesh N. Ramanathan, Toc H Institute of Science and
Technology, India
Director - Center for Management Research (CMR), University of Kelaniya:
Dr. G. W. J. S. Fernando
Conference Secretaries:
Mr. T. D. Weerasinghe - University of Kelaniya, Sri Lanka
Dr. George C. Mathew - Toc H Institute of Science and Technology, India
Conference Treasurers:
Mr. M. R. P. Wijesinghe - University of Kelaniya, Sri Lanka
Dr. C. H. Arunchand – Toc H Institute of Science and Technology, India
Advisory Committee:
Prof. D. M. Semasinghe - The Vice Chancellor, University of Kelaniya, Sri Lanka
Dr. K. Varghese - Founder Director and Manager, Toc H Institute of Science and
Technology, India
Dr. Alex Mathew - President, Toc H Institute of Science and Technology, India
Prof. (Dr.) P. J. Joseph - Director, Toc H Institute of Science and Technology, India
Prof. (Dr.) Preethy Thekkath - Principal, Toc H Institute of Science and Technology,
India
Prof. Sunil Chandra - Chairman, Research Council, University of Kelaniya, Sri
Lanka
Dr. Ajith Medis - Head, Department of Marketing Management, University of
Kelaniya, Sri Lanka
Mr. C. S. P. K. Fernando - Head, Department of Finance, University of Kelaniya, Sri
Lanka
Dr. Nalaka Wickramasinghe - Head, Department of Commerce and Financial
Management, University of Kelaniya, Sri Lanka
Dr. Kamal Thilakasiri - Head, Department of Accountancy, University of Kelaniya,
Sri Lanka
xi
Senior Prof. R. P. C. Ranjani - University of Kelaniya, Sri Lanka
Senior Prof. E. G. Ubayachandra - University of Kelaniya, Sri Lanka
Prof. J. M. D. Ariyarathne - University of Kelaniya, Sri Lanka
Prof. P. M. C. Thilakerathne - University of Kelaniya, Sri Lanka
Prof. P. N. Gamage - University of Kelaniya, Sri Lanka
Prof. K. A. S. Dhammika - University of Kelaniya, Sri Lanka
Prof. W. R. P. K. Fernando - University of Kelaniya, Sri Lanka
Prof. C. Pathirawasam - University of Kelaniya, Sri Lanka
Prof. S. S. Weligamage - University of Kelaniya, Sri Lanka
Prof. Lakmini Jayathilake - University of Kelaniya, Sri Lanka
Conference Working Committee:
Mr. G. H. B. A. De Silva - University of Kelaniya, Sri Lanka
Ms. W. B. M. D. Basnayake - University of Kelaniya, Sri Lanka
Ms. S. M. D. Y. Jayarathna - University of Kelaniya, Sri Lanka
Ms. M. D. R. Harshani - University of Kelaniya, Sri Lanka
Mr. E. A. Y. D. Perera - University of Kelaniya, Sri Lanka
Mr. Dinuka Kannangara - University of Kelaniya, Sri Lanka
Mr. D. I. M. Karunarathna - University of Kelaniya, Sri Lanka
Mr. S. N. S. Ranasinghe - University of Kelaniya, Sri Lanka
Dr. Arunchand C. H. - Toc H Institute of Science and Technology, India
Ms. Pearly Saira Chacko - Toc H Institute of Science and Technology, India
Ms. Simmy Kurian - Toc H Institute of Science and Technology, India
Ms. Bejoy Joseph - Toc H Institute of Science and Technology, India
Ms. Merin Thomas - Toc H Institute of Science and Technology, India
Mr. Viju Nair - Toc H Institute of Science and Technology, India
Mr. Titus Thomas - Toc H Institute of Science and Technology, India
Mr. Govind S. Menon - Toc H Institute of Science and Technology, India
Ms. Binija C. S. - Toc H Institute of Science and Technology, India
xii
KEYNOTE ABSTRACT
Professor (Dr.) Sanjeev Prashar
Indian Institute of Management
Raipur, India
Sustainability, a daunting task!
‘Sustainable Development’ is one of the most litigious as well as the most
controversial topic today. It is an issue of development and protection of environment.
The efforts towards sustainable development can help the earth to keep in balance. In
order to accomplish the requirements, people exploit the environmental factors to a
greater extent, consequently environment loses its usual ability for self-stabilization.
To meet the increasing demands of time, human beings intentionally take advantage
of the natural surroundings to perk up their quality of life. A sustainable development
should ensure that the economic, social and environmental systems are providing a
healthy, productive, meaningful life for all. Unfortunately, human activities have
some depressing impacts on the environment. Hence, in one way, the developmental
activities are untenable for overall flora and fauna. But we cannot stop these activities.
For the development of the nation, these activities are essential. Development is
closely linked to use of the natural resource. The absence of a suitable approach for
ensuring complete management of this over the long term could make sustainable
development a complicated aspiration to accomplish. In this twenty first century,
nobody prefers progress stagnation. On the other hand, excessive exploitation of the
environment leads to disasters. In order to achieve a more satisfactory relationship
between society and its environment, measures should be taken to minimize potential
conflicts. This can be illustrated like this; natural resource provides the materials for
production which influence jobs and stockholder profits. Jobs affect the poverty rate
and the poverty rate is related to standard of living. Air quality, water quality and
materials used for production have an impact on health. It will also influence
stockholder profits because it requires an extra expense, which reduces profits. Health
problems have an effect on worker productivity and contribute to the rising costs
because it requires an additional investment for better air quality or less exposure to
toxic materials. Sustainability requires this type of inclusive view of the world. This
signifies the role of management in attaining the daunting task of sustainability.
xiii
LIST OF MANUSCRIPTS
A Neural Network Analysis on Privacy Confidence on Digital Data
among Members of LinkedIn Professional Network in India
Sreejith, S. and Preeja Raman
01 - 23
Does the Factors of Spiritual Intelligence Distinguish the Levels of
Employee Stress?
Jisna, N. and Madhumita Mohanty
24 - 44
Economic Value Added as a Performance Measurement Tool: A
Study on Selected Banks in India
Anu Antony and Vidya Subramanin
45 - 56
A Study of Factors Affecting the Survival of Travel Agencies in Sri
Lanka: With Special Reference to Colombo District
Raazim, M. A. M.
57 - 75
Methodological Specificities and Possibilities of Application of
Tourism Market Research via Internet
Berislav Andrlic, Vitaliy Serzhanov and Mario Hak
76 - 88
Factors Influencing Supply Chain Practices of Seafood Industries in
India: An Empirical Examination
Jesena Abdeen and Hareesh N. Ramanathan
89 - 101
Importance of Symbolic Stimulus in Consumer Perception
James Varkey Mandapathil and Ambeesh Mon, S.
102 - 112
An Empirical Investigation on the Impact of Port-Based
Development Projects on the Fishermen Community
Antony, O. P., Helan, A. P. and Hareesh N. Ramanathan
113 - 126
xiv
Generation Gap in Store Selection Criteria of Gold Buyers: An
Empirical Examination of Gold Buyers belonging to Liberalized
and Non-Liberalized Era in India
Girish S. Pathy and Hareesh N. Ramanathan
127 - 139
The Impact of Emotional Intelligence of Teachers in Higher
Education on Student Engagement: Evidence from National
Universities in Sri Lanka
Welmilla, I. and Krishanthy, S.
140 - 158
Impact of Board Composition on Risk Management: Evidence from
Listed Companies in Sri Lanka
Pathiraja, P. M. D. S. and Priyadarshanie, W. A. N.
159 - 174
Students’ Entrepreneurial Intention in the Most Literate State of
India: A Perspective on Emerging Environmental Valuations
Deepa Unnithan and Hareesh N. Ramanadhan
175 - 190
Feasibility Study of Defense Research Projects: Identification and
Analysis of Endogenous and Exogenous Parameters
Kumar, K. A., Kiran Govind, V. and Hareesh N. Ramanathan
191 - 211
Pro-Social Behavior: A Comparative Study among Online and
Local Taxi Drivers
George C. Mathew, Hareesh N. Ramanathan and Diana Joseph
212 - 223
Transition of World Cashew Industry: Challenges Ahead for India
Bhoodes, R. K., Hareesh N. Ramanathan and George C. Mathew
224 - 233
A Vision-Information and Communication Technology Enabled
Teaching: An Illusion or Reality
Vineetha Thomas Enniriyil, Simmy Kurian and Hareesh N.
Ramanathan
234 - 250
xv
The Need for Reverse Logistics: Unravelling the Producer
Responsibility
Sooraj Abraham, Mujeeb Mohammed and Rasheed Asfraf
251 - 265
Advertisement Appeals and AIDA Principle: A Correspondence
Analysis Purview
Cyril P. Chacko, Govind S. Menon, Febin Paul, Eldho John,
Nibin Nizar, Muhammed Suhail and Hafis Nizam
266 - 278
A Study on the Export Competitiveness of Indian Industries
Menon, C. V., Merin Thomas and Devika
279 - 293
Moderating Role of Gender among Work Motivation, Strategies of
Emotional Labor and Teaching Satisfaction of Professional College
Teachers in India
Jitha G. Nair
294 - 309
Gauging the Predictor Importance of Deceptive Advertisement
Impact: An Application of Ensemble Model Accuracy Boosting
Alteena Maria Francis, Alby Eldose, Anjitha, G., Athira, E. H.,
Neethu, R., Pooja Khosh, M. and Thamburu, S.
310 - 328
1
International Conference on Business and Information - 2018 University of Kelaniya, Sri Lanka
ISSN 2465-6399 | Page 76
Methodological Specificities and Possibilities of Application of Tourism
Market Research via Internet
Berislav Andrlic1, Vitaliy Serzhanov2 and Mario Hak3
Abstract
Today's market conditions have imposed a growing part of business with the support of
information systems. Timely information becomes an increasingly important resource that
gives the company a competitive edge. As the information market is subject to constant
changes, the success of an individual tourism subject is based on continuous monitoring of
these changes and fast adaptation to them. Accelerated technological and technical
development has certainly improved some business processes, but has also conditioned some
modification of marketing research techniques in tourism. Methods used in paper to investigate
this problem are analysis, synthesis, comparasion and deduction. Data collection is made
through Internet databases and also on the field in sample of tourist subjects
Authors analyzed consumer behaviour of participants on the online tourist market in order to
make marketing decisions more efficiently using numerous market research techniques. With
the development of new technologies and the Internet, there has been a modification of
traditional methods in modern methods that make up the e-marketing information system
(CRM; ERP, MIS), which is main focus of this paper.
Keywords: E-marketing, Information Technology, Business Process, Tourism
1. Introduction
The rapid development of technology and technology brings significant changes to
the touristr market. The touristic activity is experiencing significant changes over the
last few years because the market is under the influence of global trends. In the above
mentioned sector, the Internet has changed the classical methods and business
concepts, as well as in all other industries, and is used as a communication, transaction
and distribution channel. Due to the dependence of supply and information exchange
in the production and distribution chain, tourist catering has proved to be suitable for
1 College Professor, Vice Dean for Development, Polytechnic in Pozega, Croatia
(bandrlic@vup.hr) 2 Professor, Dean, Faculty of Economics Uzhorod, Ukraine (vitaliy.serzhanov@gmail.com) 3 College Professor, Head of Department, Tax Office in Pozega, Croatia
(hak.mario@gmail.com)
International Conference on Business and Information - 2018 University of Kelaniya, Sri Lanka
ISSN 2465-6399 | Page 77
the rapid adoption of new technologies. The Internet represents a competitive
advantage of an economic entity, and tourism catering in the European Union is a
precursor to the use of e-marketing strategies in front of other business activities.
Continuous exploration and monitoring of these factors is significant, as they are also
important for shaping marketing techniques. Changing economic conditions, new
behaviors of consumers and especially new technologies will likely cause the
emergence of new or growth of existing tourism markets. In developed economies,
attention is being paid to studying the role of new technologies in the field of tourism,
so this is the reason of exploring this theme. Scientific methods used in paper are
analysis, synthesis, comparasion and deduction. Data collection is made through
Internet databases and also on the field in sample of tourist subjects (n=20).
2. Backgoround of the Study
The concept of ERP (Enterprise Resource Planning) can be translated as a "resource
planning process for an enterprise". Each of these terms individually or linked together
has a somewhat different meaning than usual. The term economic entity in this name
implies the integration of all data and system systems in the entity and integration at
the level of multiple entities in the market. The term "resource" refers to all inputs
needed to produce a product or to perform services such as: materials, tools, machines,
technical and technological documentation, production and service capacities,
resources etc. ERP's task is to provide sufficient quantity and satisfactory quality of
these resources with lower costs. (Majdandzic, 2004).
Without a good ERP system, it is difficult to promote the marketing business of a tour
operator, so its existence and the precondition of marketing research implementation
as the first phase of the marketing plan. Research shows that the level of
implementation of ERP systems in tourist catering is insufficient, so it is necessary to
consider the possibilities of its wider application in practice. (Atkinson, Brander
Brown, 2001).
The ERP system is an integral information system in which the transaction processing
system, management reporting system and communication system, collaboration and
International Conference on Business and Information - 2018 University of Kelaniya, Sri Lanka
ISSN 2465-6399 | Page 78
individual work are integrated into one entity. This mutual linkage enables systematic
business process monitoring. For example, an outdated tourist order is automatically
forwarded to a sales service that sends a bill to the buyer. If parts of the information
system are not connected, this is a complete tracking and business process
management. Modern business practices require organizations to link their
information systems to electronic exchange of information, exchange of transactions
or even virtual organizations.
The ERP system modules represent the key business functions of a particular entity
whose efforts are being made to support and improve the application of ERP systems.
All modules use the same database so that individual departments can share
information and communicate with each other. The number of modules differs from
manufacturer to manufacturer and all modules need not be installed at one time. It is
possible to install them individually, and when it comes to the need for it, it is possible
to implement an ERP system upgrade.
Figure 01: ERP System in Tourism
Source: Exoltorp (2018)
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Figure 1 shows an ERP system consisting of five modules in tourism:
Manufacturing resource planning (MRP),
Customer relationship management (CRM) module,
Human Resources Management (HRM) Module,
Supply chain management (SCM),
Finance resource management (FRM).
The application of ERP system implies numerous advantages and disadvantages that
occur in its application in tourist catering. Benefits of using the ERP system are:
Integration - The basic advantage of an ERP system is one-time data entry at
different locations, which is not the case if multiple different systems are
used. With its use, data is entered only once, and immediately become
visible in other application areas of business. Such a way of doing business
enables users to save time and eliminate errors that could occur through
multiple entries:
a) Customizability - the option of upgrading the system,
b) Less Costs - Due to the use of only one solution, maintenance is simpler
and cheaper,
c) The ability to connect with business information systems,
d) Optimizing the room reservation process,
e) Better information about customers and orders,
f) Faster circulation of financial resources,
g) Accelerate service processes,
h) Determined User Rights - Each user can determine which information
within the system can access. (Bosilj Vuksic, 2008)
ERP system failures are:
High Initial Costs,
User training,
Longevity of the introduction process,
Hidden costs (integration, testing, data conversion)
The return on invested funds is only visible after a few years,
International Conference on Business and Information - 2018 University of Kelaniya, Sri Lanka
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The complexity of the introduction, which is why business adaptation is
needed.(Mirakul, 2018)
When choosing an ERP system, it is necessary to take into consideration the following
elements (Infotrend,2018):
Functionality of ERP - it is necessary to consider how many individual
solutions meet the needs of the subject. Making decisions is not easy
because ERP systems are increasingly differentiated by what processes they
support so they can have, besides the usual business processes, some
specific business processes depending on the branch of the economy they
belong to,
The real needs of an economic entity - it is necessary to really look at the
subject and determine its degree of maturity in relation to other subjects in
the market,
The degree of business improvement - it is possible to introduce some
changes in business processes. In doing so, care must be taken to ensure that
the changes are not too large and that they are carefully planned to ensure
that implementation of ERP would not make it even more difficult,
Manufacturer Quality - Before selecting a specific manufacturer, it is
necessary to examine the references, the way of work, the development
team's stability, the quality of support etc. In our market, besides domestic,
there are also the global producers of these systems. It is a reputable
company with very high quality systems. When selecting a global
manufacturer, it is necessary to take into account the localization of the ERP
system, ie, the translation into Croatian language, of compliance with
Croatian legislation and the presence of the company on the Croatian market
through its own business entity or through its domestic partner,
The quality of the implementer - apart from the sales contract itself, it is
necessary to compile the implementation and maintenance contract as the
implementor most often maintains the system,
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Maintenance Mode - a very important element in decision making because
the system will be used for many years, making it necessary to monitor all
changes in the work of the subject or legislation and to adapt the work of the
system,
Cost of Ownership - It is important that the cost of owning an ERP system
be in relation to the benefits expected from its implementation. The cost of
ownership consists of two components, which are the cost of procurement
and deployment and the regular cost of the ERP. The cost of implementation
is usually comprised of the purchase price of ERP licenses, deployment and
the required equipment. Regular running costs include maintenance of ERP
licenses, maintenance of equipment, regular maintenance services, and
customization services for changes in business operations and legislation.
The ERP selection process is very complex and requires the possession of
knowledge that most tourists are not present. For this reason, it is safest to
engage a consultancy company that will professionally approach the
preparation and implementation of ERP selection bidding.
3. Literature Review
Business on marketing principles and modern management achievements implies
ongoing activity in obtaining a variety of information for decision making in tourist
catering. The information is conceptually and hierarchically speaking, the wider term
that is superordinate to the data. As one of the basic strengths of a modern-developed
society, information has a feature that there is no other resource in economic
development: it is unbearable, it does not diminish. Information has another specific
feature: form information is not unambiguous - it can be seen, pronounced, written,
displayed, felt. The analysis of marketing opportunities in which the exchange process
takes place on the tourist market rests on market research. It is the essence and core
of decision-making systems in marketing management. Any attempt to fully define
the notion of market research must describe the task and purpose of the research that
has been put forward. So, it is necessary to distinguish:
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a) a cognitive (descriptive) task that identifies and understands the problem
and existing, but relevant, facts and facts related to the problem;
b) a discerning (diagnostic) task that involves gathering relevant data,
considering them, processing and explaining it
c) Predictive (predictive) task evaluating future trends and the consequences of
action taken can be expected. (Previsic, Ozretic Dosen, 2004).
Market research is a key element of marketing information. It connects the consumer,
the client and the public with the entity through information - information used to
identify and define market opportunities and problems; creating, improving and
evaluating marketing activities; track marketing success and improve marketing
understanding as a process. Market research determines the information needed to
address these problems, determines data collection methods, manages and implements
the data collection process, analyzes the results and communicates findings and their
meaning.
Marketing information is a crucial element of effective marketing, as a result of a
specific trend in national and international marketing, transition from customer needs
to their desires and transition from competition to competition of other nature. In
marketing management, there was always a need for constant inflow of information.
In the field of marketing relations, this need is particularly strong as managers who
make market decisions feel the need for information on a daily basis. Numerous
information is available in business decision making, but the following common
features are expected of all:
- Accuracy
- Timeliness
- reliability, to serve as a basis for decision-making and action.
The development of modern telecommunication and digital technology, provides
marketing, and so the market research as its component, many new opportunities.
Technology has opened unprecedented opportunities for rapid collection of accurate
and reliable information in recent years. A newer organizational form for data
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collection is called the Marketing Information System (MIS). It represents an
organized set of procedures and methods for continuously collecting, analyzing and
interpreting data, evaluating, storing and disseminating information that is used for
business decision-making. Definition refers to three groups of essential components
of MIS:
- people and data collection equipment
- procedures for collecting, analyzing, evaluating and distributing
collected data
- quantity and value of information.(Ruzic, Tomcic, Turkalj, 2002)
Figure 2: MIS system in tourism
Source: Slideshare (2018)
In collecting valid and reliable information, a number of activities are commonly
referred to as the market research process. This process consists of a logical sequence
of procedures that need to be implemented to ultimately provide reliable and valid
information that helps in decision-making in market operations. Basically, the
research process is based on a similar order in the performance of any other task, and
starts with the question of what to do, why, how, when, where and who. For easier
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visualization and simpler planning of activities, jobs are sorted into certain groups by
virtue of the similarity principle.
4. Methods and Findings
In practice, authors used many methods of primary research in tourism that can be
conducted online (customer satisfaction survey, feedback research for new products
on the market, etc.). The conduct of the primary online research starts with the analysis
of the quality of the website, so authors of this research can ask some of the questions:
- Are the website goals clear?
- Does the mission of the business entity communicate?
- What is the effectiveness of offline promotion compared to the number of
visitors?
- What needs to be done to improve the quality of the web service?
- Is the site user friendly?
- How much did online contact sales increase?
- How many visitors do you return to the site?
- How much is online sales?
- What is the quality of the site compared to the competition? (Harris, Dennis,
2008).
This research was conducted in May 2018 on sample of Croatian companirs in field
of tourism. In accordance with the questions, five specific measurement categories
are also proposed after intervju with 20 managers in tourism companies in Croatia
(n=20):
- Promotion channel analysis includes information about the arrival of a
consumer on a web site. The key questions are: Which pages came from
(refferal site)? What are the offline ads you saw?
- Consumer behavior analysis on the web refers to the most visited columns
and time spent on the site, which also suggests the opportunity to modify the
structure and content of the site.
International Conference on Business and Information - 2018 University of Kelaniya, Sri Lanka
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- Visitor satisfaction analysis evaluates the level of perception of quality
online services, such as the number of e-mail queries responding. It is
possible to use tools such as Gomez (www.gomez.com) for benchmarking
with competing sites. (Harris, Dennis, 2008).
- The analysis of earned online sales revenue measures the relationship
between the number of users who left the site without the buying act itself
compared to those who concluded the online exchange process.
Methods that are commonly conducted by online research in tourist-hammering
activities are as follows:
- Specialized software
- Web registration
- Question mark
- Online Focus Group
- Kiosk-Based Computer Interviewing
- Internet panel
- Cookies
- Mystery shopping (George,2002).
Specialized software tools are used to measure web site efficiency (web analytics).
Such tools are available for use over the web in free (free) versions or with payment
of fees. There are two basic technological approaches to data collection for web
analytics.
The first method, log file analysis, works so that data comes by reading the log files
where the server records all the transactions. Tagging is another method that uses Java
Script on each page that is being tracked to notify the third-party server when the page
is loaded into the web browser. Examples of such software tools include Google
Analytics and Hitbox. Google Analytics is a web analytics that provides a detailed
view of website visit and its marketing effectiveness. The tool is free and very easy to
use and has gained wide applicability in tourist-practice.
International Conference on Business and Information - 2018 University of Kelaniya, Sri Lanka
ISSN 2465-6399 | Page 86
Figure 3: Google Analytics in tourism
Source: Tourismschool (2018)
The tool provides a list of numerous variables, number of unique visitors, returning
visitors, the most popular columns on the page, length of page visits and each column,
customer segmentation, etc. Another significant feature of this tool is the option of
tracking results in relation to set marketing goals. This e-marketers give important
results that they implement into new marketing strategies on the Internet or compares
them to leading-edge (benchmarking).
Authors analyzed examples of practices which show that systems are applied in
leading global hotel groups such as: Starwood, Ashford Hospitality, Merriott
Hospitality, Peabody Hotel Group, Interstate Hotels. From the Croatian market, the
BIST (System of business intelligence in tourism) should be highlighted. It is an
online management system for the Croatian tourism market that provides information
on tourism development, market trends, accommodation capacities. BIST enables a
quick analysis of the competitiveness of Croatian tourist destinations and other types
of online analysis. Users can easily track trends related to the average length of stay,
seasonality, market share, guest structure and the rate of utilization of any tourist
destination at the local, regional or national level.
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5. Conclusion
Strategic and continuous exploration and monitoring of these factors is significant, as
they are also important for shaping marketing techniques. The internet, as one of the
most significant technological phenomena of today, provides the subjects of tourist
catering with some completely new competitive opportunities, of which the most
significant is the ability to provide current and always open access to information all
over the world. Reccomendations of papers for subjects is to use more market
researches via Internet because of their low price, efficiency and fast feedback.
The Internet provides support to a variety of functions and processes in an enterprise
to develop products and deliver services to consumers. Then, it is a powerful
communication medium that can effectively connect supply and demand stakeholders
to tourism. Consequently, new habits have changed in the behavior of consumer-
tourists, which is primarily marked by the use of the Internet as an information,
communication and transaction channel. This category, looking prospectively, is on
the wider world level in constant progression. Research into European and world
practice in tourist market is evidently showing greater competition for business
entities that are based on their current Internet technology. In developed economies,
attention is being paid to studying the role of new technologies in the field of tourism,
so further researches will be focused in this sector.
6. References
Atkinson, H., Brander Brown, J.(2001) Rethinking performance measures: assessing
progress in UK hotels, International Journal of Contemporary Management, Vol.
134., No.3., p. 128.
Bosilj Vukšić, V. (2008) Business process management, Školska knjiga, Zagreb, p. 129
Majdandžić, N. (2004) Information system building, Machine faculty, Slavonski Brod ,p.
161
Exoltorp (2018) http://www.extolcorp.com/solution/sea_ecerp.html
Harris, L., Dennis, C.(2008) Marketing the e-Business, Routledge, Abingdon, p. 68
International Conference on Business and Information - 2018 University of Kelaniya, Sri Lanka
ISSN 2465-6399 | Page 88
George, J.F (2002) Influences on the intent to make Internet purchases, Internet Research:
Electronic Networking Applications and Policy, Vol.12., No.2., p. 165
Infotrend (2018) http://www.infotrend.hr/clanak/2008/7/nabava-i-implementacija-erp-
sustava
Mirakul(2018) http://www.mirakul.hr/wp-content/
Previšić, J., Ozretić Došen, Đ.(2004): Marketing, Adverta, Zagreb, 2004, p. 81.
Ružić, D., Tomčić, Z., Turkalj, Ž., Marketing exchange process, Economic Faculty Osijek,
Osijek, 2002., p. 27.
Slideshare (2018) https://www.slideshare.net/nishantruchi88/understanding-implementing-
marketing-information-system.
Tourismschool (2018) https://tourismeschool.com/2016-marketing-wishlist-tourism-
operators.
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