Online Travel Agencies in China: The Impact of Online Reviews, Trust, Perceived Risk, Perceived Ease of Use, Perceived Usefulness and Perceived Enjoyment on Purchase Intention

Main Article Content

Hanxin Zhang
Rosechongporn Komolsevin
Ratanasuda Punnahitanond
Pacharaporn Kesaprakorn

Abstract

The purpose of this study is to better understand online consumer behavior by analyzing consumers’ motivations and intentions leading to the purchase of hotel rooms through online travel agency (OTA). In particular, this paper seeks to demonstrate the impact levels of the following independent variables: electronic word-of-mouth (eWOM) (in the form of online reviews, or ORs), perceived risk (PR), trust (TR), perceived ease of use (PEOU), perceived usefulness (PU), and perceived enjoyment (PE), on purchase intention (PI) or hotel room booking as the dependent variable. Quantitative research methods and Structural Equation Modeling were applied in order to construct a conceptual model into which survey data collected from 334 respondents in China were input. The results indicated that all of the independent variables could have significant impacts on online travel agency customers’ purchase intentions, and that consumers’ attitudes and perceptions were critical factors affecting the motivation, which in turn affected these tourists’ decision-making towards online hotel booking transactions.

Downloads

Download data is not yet available.

Article Details

Section
Research Articles

References

Agag, G., & El-Masry, A. A. (2016). Understanding consumer intention to participate in online travel

community and effects on consumer intention to purchase travel online and WOM: An integration of innovation diffusion theory and TAM with trust. Computers in Human Behavior, 60, 97-111.

Awad, N. F., & Ragowsky, A. (2008). Establishing trust in electronic commerce through online word of

mouth: An examination across genders. Journal of Management Information Systems, 24(4), 101-121.

Bauer, R. A. (1960). Consumer behavior as risk taking. In R.S. Hancock (Ed), Dynamic Marketing for a

Changing World (pp. 389-398). Chicago: American Marketing Association.

Bedi, S. S., Kaur, S., & Lal, A. K. (2017). Understanding web experience and perceived web enjoyment

as antecedents of online purchase intention. Global Business Review, 18(2), 465-477.

Bhatnagar, A., & Ghose, S. (2004). Online information search termination patterns across product

categories and consumer demographics. Journal of Retailing, 80(3), 221-228.

Blal, I., & Sturman, M. C. (2014). The differential effects of the quality and quantity of online reviews

on hotel room sales. Cornell Hospitality Quarterly, 55(4), 365-375.

Blazevic, V., Hammedi, W., Garnefeld, I., Rust, R. T., Keiningham, T., Andreassen, T. W., Donthu, N., &

Carl, W. (2013). Beyond traditional word-of-mouth: An expanded model of customer-driven

influence. Journal of Service Management, 24(3), 294-313.

Browning, V., So, K. K. F., & Sparks, B. (2013). The influence of online reviews on consumers'

attributions of service quality and control for service standards in hotels. Journal of Travel

& Tourism Marketing, 30(1-2), 23-40.

Casaló, L. V., Flavián, C., Guinalíu, M., & Ekinci, Y. (2015). Do online hotel rating schemes influence

booking behaviors? International Journal of Hospitality Management, 49, 28-36.

Cheung, C. M., Lee, M. K., & Rabjohn, N. (2008). The impact of electronic word-of-mouth: The

adoption of online opinions in online customer communities. Internet Research: Electronic

Networking Applications and Policy, 18(3), 229-247.

Chiemeke, S. C., Evwiekpaefe, A. E., & Chete, F. O. (2006). The adoption of internet banking in Nigeria:

An empirical investigation. Journal of Internet Banking and Commerce, 11(3), 1-10.

Dai, B., Forsythe, S., & Kwon, W.-S. (2014). The impact of online shopping experience on risk

perceptions and online purchase intentions: Does product category matter? Journal of

Electronic Commerce Research, 15(1), 13–24.

Davis, F. D. (1985). A technology acceptance model for empirically testing new end-user information

systems: Theory and results (Doctoral dissertation, Massachusetts Institute of Technology).

Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: A

comparison of two theoretical models. Management Science, 35(8), 982-1003.

De Pelsmacker, P., Van Tilburg, S., & Holthof, C. (2018). Digital marketing strategies, online reviews

and hotel performance. International Journal of Hospitality Management, 72, 47-55.

Drozdowska, M., Faron, A., & Gruszka, I. (2019). Meeting guests’ expectations and hotel classification

systems. In Proceedings of the 2nd International Conference on Tourism Research (p.71-81).

Porto, Portugal: University Portucalense.

eMarketer. (2013). Users seek out the truth in online reviews: Consumers look for indicators of

review authenticity. Retrieved July 8, 2018, from https://www.emarketer.com/Article/Users-Seek-Truth-Online-Reviews/1009656

Fam, K. S., Foscht, T., & Collins, R. D. (2004). Trust and the online relationship - an exploratory study

from New Zealand. Tourism Management, 25(2), 195-207.

Forsythe, S. M., & Shi, B. (2003). Consumer patronage and risk perceptions in internet shopping.

Journal of Business Research, 56(11), 867-875.

Gabbianelli, L., & Pencarelli, T. (2020). The role of the electronic word-of-mouth in the hotel industry.

In S. M. C. Loureiro, & H. R. Kaufmann (Eds.), Exploring the Power of Electronic Word-of-Mouth

in the Services Industry (pp. 217-239). Hershey, PA, USA: IGI Global.

Green, C. E., & Lomanno, M. V. (2012). Distribution channel analysis: A guide for hotels. McLean,

VA: HSMAI Foundation.

Kesharwani, A., & Bisht, S. S. (2012). The impact of trust and perceived risk on internet banking

adoption in India: An extension of technology acceptance model. International Journal of

Bank Marketing, 30(4), 303-322.

Kietzmann, J., & Canhoto, A. (2013). Bittersweet! Understanding and managing electronic word of

mouth. Journal of Public Affairs, 13(2), 146-159.

Kim, M. J., Chung, N., & Lee, C. K. (2011). The effect of perceived trust on electronic commerce:

shopping online for tourism products and services in South Korea. Tourism Management,

(2), 256-265.

Kim, D. J., Ferrin, D. L., & Rao, H. R. (2008). A trust-based consumer decision-making model in

electronic commerce: The role of trust, perceived risk, and their antecedents. Decision

Support Systems, 44(2), 544-564.

Kim, S. Y., Kim, J. U., & Park, S. C. (2017). The effects of perceived value, website trust and hotel trust

on online hotel booking intention. Sustainability, 9(12), 1-14.

Kim, C., Zhao, W., & Yang, K. H. (2008). An empirical study on the integrated framework of e-crm in

online shopping: Evaluating the relationships among perceived value, satisfaction, and trust

based on customers' perspectives. Journal of Electronic Commerce in Organizations (JECO),

(3), 1-19.

Koufaris, M., & Hampton-Sosa, W. (2004). The development of initial trust in an online company by

new customers. Information & Management, 41(3), 377-397.

Lee, K. S., Lee, H. S., & Kim, S. Y. (2007). Factors influencing the adoption behavior of mobile

banking: A South Korean perspective. Journal of Internet Banking and Commerce, 12(2),

-9.

Lee, E. J., & Shin, S. Y. (2014). When do consumers buy online product reviews? Effects of review

quality, product type, and reviewer’s photo. Computers in Human Behavior, 31, 356-366.

Lee, K. S., & Tan, S. J. (2003). E-retailing versus physical retailing: A theoretical model and empirical

test of consumer choice. Journal of Business Research, 56(11), 877-885.

Leeraphong, A., & Mardjo, A. (2013). Trust and risk in purchase intention through online social

network: A focus group study of Facebook in Thailand. Journal of Economics, Business and

Management, 1(4), 314-318.

Martinez-Costa, C., Pladevall Viladecans, J., Mas-Machuca, M., & Marimon, F. (2018). Behavioral

profiles of consumers of online travel agencies. International Journal of Quality Research,

(3), 703-722.

Masoud, E. Y. (2013). The effect of perceived risk on online shopping in Jordan. European Journal of

Business and Management, 5(6), 76-87.

McKenzie, G., & Adams, B. (2018). A data-driven approach to exploring similarities of tourist attractions

through online reviews. Journal of Location Based Services, 12(2), 94–118.

Moe, W. W., & Trusov, M. (2011). The value of social dynamics in online product ratings forums.

Journal of Marketing Research, 48(3), 444-456.

Nepomuceno, M. V., Laroche, M., & Richard, M. O. (2014). How to reduce perceived risk when buying

online: The interactions between intangibility, product knowledge, brand familiarity, privacy

and security concerns. Journal of Retailing and Consumer Services, 21(4), 619-629.

Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with

the technology acceptance model. International Journal of Electronic Commerce, 7(3), 101-

Saleh, K. (2015). The importance of online customer reviews. Retrieved July 8, 2018, from

http://www.invespcro.com/blog/the-importance-of-online-customer-reviews-infographic.

Smith, D. N. (2002). Trust me, would I steer you wrong? The influence of peer recommendations

within virtual communities (Doctoral dissertation, University of Illinois).

Sparks, B. A., & Browning, V. (2011). The impact of online reviews on hotel booking intentions and

perception of trust. Tourism Management, 32(6), 1310-1323.

Sparks, B. A., Perkins, H. E., & Buckley, R. (2013). Online travel reviews as persuasive communication:

The effects of content type, source, and certification logos on consumer behavior. Tourism

Management, 39, 1-9.

Stangl, B., Inversini, A., & Schegg, R. (2016). Hotels’ dependency on online intermediaries and their

chosen distribution channel portfolios: Three country insights. International Journal of

Hospitality Management, 52, 87-96.

Togas, P. T., Kindangen, P., & Tumbuan, W. J. F. A. (2019). The influence of online review on online

hotel booking intention in Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis

dan Akuntansi, 7(5), 3189-3198.

Torres, E. N., Singh, D., & Robertson-Ring, A. (2015). Consumer reviews and the creation of booking

transaction value: Lessons from the hotel industry. International Journal of Hospitality

Management, 50, 77-83.

Van der Heijden, H. (2003). Factors influencing the usage of websites: The case of a generic portal in

The Netherlands. Information and Management, 40(6), 541-549.

Vermeulen, I. E., & Seegers, D. (2009). Tried and tested: The impact of online hotel reviews on

consumer consideration. Tourism Management, 30(1), 123-127.

Wu, J. J., & Chang, Y. S. (2005). Towards understanding members' interactivity, trust, & flow in online

travel community. Industrial Management & Data Systems, 105(7), 937-954.

Xiang, Z., Magnini, V. P., & Fesenmaier, D. R. (2015). Information technology and consumer behavior

in travel and tourism: Insights from travel planning using the internet. Journal of Retailing

and Consumer Services, 22, 244-249.

Xie, K. L., Zhang, Z., & Zhang, Z. (2014). The business value of online consumer reviews and

management response to hotel performance. International Journal of Hospitality

Management, 43, 1-12.

Ye, Q., Law, R., & Gu, B. (2009). The impact of online user reviews on hotel room sales. International

Journal of Hospitality Management, 28(1), 180-182.