ICBI - 2018 › datoteka › 981819.Andrlic_Serzhanov_Hak_paper.pdf · ICBI - 2018 ‘Enriching ... Mr. Tharindu Weerasinghe and Mr. Ruwan Wijesinghe for their excellent work rendered

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: [email protected]

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



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



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,


Ms. I. Welmilla - Department of Human Resource Management, University of

Kelaniya, Sri Lanka

Mr. M. D. P. Peiris - Department of Human Resource Management, University


viii

Ms. M. P. N. Janadari - Department of Human Resource Management,


Ms. W. A. S. Weerakkody - Department of Human Resource Management,


Ms. W. M. S. K. Wanigasekera - Department of Human Resource Management,


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,


Ms. J. A. C. B. Jayasinghe - Department of Human Resource Management,


Ms. H. M. Nishanthi - Department of Human Resource Management, University


Mr. G. H. B. A. De Silva - Department of Human Resource Management,


Ms. H. M. S. V. Silva - Department of Human Resource Management,


Ms. T. J. R. Thisera - Department of Human Resource Management, University


Ms. R. K. N. D. Darshani - Department of Human Resource Management,


Mr. T. D. Weerasinghe - Department of Human Resource Management,


Ms. S. M. D. Y. Jayarathna - Department of Human Resource Management,


Ms. M. K. D. Padmasiri - Department of Human Resource Management,


Mr. D. Wasantha Kumara - Department of Marketing Management, University


Dr. R. A. S. Weerasiri - Department of Marketing Management, University of

Kelaniya, Sri Lanka

Dr. W. M. C. B. Wanninayake - Department of Marketing Management,


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,


Dr. S. D. Edirisinghe - Department of Commerce and Financial Management,


Dr. S. M. A. K. Samarakoon - Department of Commerce and Financial


Dr. M. M. M. Shamil - Department of Commerce and Financial Management,


Dr. M. R. K. N. Yatigammana - Department of Commerce and Financial


Dr. H. A. K. N. S. Surangi - Department of Commerce and Financial


Mr. H. A. H. Hettiarachchi - Department of Commerce and Financial


Mr. B. K. H. D. Anuranga - Department of Commerce and Financial


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


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

([email protected]) 2 Professor, Dean, Faculty of Economics Uzhorod, Ukraine ([email protected]) 3 College Professor, Head of Department, Tax Office in Pozega, Croatia

([email protected])


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


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)


ISSN 2465-6399 | Page 79

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,


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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.


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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.


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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


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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