Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
권호 표지
DOI QR코드

DOI QR Code

Assessing the Factors that Drive Consumers' Intention to Continue Using Online Travel Agencies: A Heuristic-systematic Model Perspective

  • Hyunae Lee (Smart Tourism Research Center, Kyung Hee University) ;
  • Namho Chung (College of Hotel and Tourism Management, Kyung Hee University)
  • Received : 2019.03.17
  • Accepted : 2019.08.27
  • Published : 2019.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

As the growth of online travel agencies (hereafter OTAs) accelerates, competition among hotels to gain exposure on the first page of OTA websites, and the financial burden, such as commissions hotels have to pay in return, are increasing. Therefore, to facilitate successful management in the tourism industry, it is important to establish what makes people continue the practice of using OTAs to book rooms in hotels and other accommodation outlets. By adopting the heuristic-systematic model (HSM), this study explores the factors that drive consumers' continued use of OTA and classifies them into heuristic cues (brand awareness, cost saving, and scarcity message) and systematic cues (recommendation quality and the ability to provide reputation). Furthermore, we divided the sample based on the location of hotels within and outside Korea, and investigated the different roles of the cues between two models. The results are expected to provide theoretical and practical implications for both OTAs and hotels.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea(NRF-2016S1A3A2925146)

References

  1. Aaker, D. A. (1991). Managing brand equity: Capitalizing on the value of a brand name. New York, N.Y: The Free Press.
  2. Anderson, J. C., and Gerbing, D. W. (1992). Assumptions and comparative strengths of the two-step approach: Comment on Fornell and Yi. Sociological Methods & Research, 20(3), 321-333. https://doi.org/10.1177/0049124192020003002
  3. Baek, H., Ahn, J., and Choi, Y. (2012). Helpfulness of online consumer reviews: Readers' objectives and review cues. International Journal of Electronic Commerce, 17(2), 99-126. https://doi.org/10.2753/JEC1086-4415170204
  4. Banerjee, S., Bhattacharyya, S., and Bose, I. (2017). Whose online reviews to trust? Understanding reviewer trustworthiness and its impact on business. Decision Support Systems, 96, 17-26. https://doi.org/10.1016/j.dss.2017.01.006
  5. Barreda, A. A., Bilgihan, A., Nusair, K., and Okumus, F. (2016). Online branding: Development of hotel branding through interactivity theory. Tourism Management, 57, 180-192. https://doi.org/10.1016/j.tourman.2016.06.007
  6. Bellotti, V., Begole, B., Chi, E.H., Ducheneaut, N., Fang, J., Isaacs, E., King, T., Newman, M.W., Partridge, K. & Price, B. (2008), Activity-based serendipitous recommendations with the Magitti mobile leisure guide. Proceedings of the SIGCHI Conference on Human Factors in Computing Systems, ACM, New York, NY, pp. 1157-1166.
  7. Bhattacherjee, A. (2001). Understanding information systems continuance: an expectation-confirmation model. MIS Quarterly, 25(3), 351-370. https://doi.org/10.2307/3250921
  8. Bhattacherjee, A., and Sanford, C. (2006). Influence processes for information technology acceptance: An elaboration likelihood model. MIS Quarterly, 805-825.
  9. Casalo, L. V., Flavian, C., Guinaliu, M., and Ekinci, Y. (2015). Do online hotel rating schemes influence booking behaviors? International Journal of Hospitality Management, 49, 28-36. https://doi.org/10.1016/j.ijhm.2015.05.005
  10. Chaiken, S. (1980). Heuristic Versus Systematic Information Processing and the Use of Source Versus Message Cues in Persuasion. Journal of Personality and Social Psychology, 39(5), 752-766. https://doi.org/10.1037/0022-3514.39.5.752
  11. Chaiken, S., and Ledgerwood, A. (2011). A theory of heuristic and systematic information processing, in: P.A.M.V. Lange, A.W. Kruglanski, E.T. Higgins (Eds.), Handbook of Theories of Social Psychology, volume 1, SAGE Publications Ltd., London, 2012, pp. 246-267.
  12. Chaiken, S., Liberman, A., and Eagly, A. H. (1989). Heuristic and Systematic Information Processing within and Beyond the Persuasion Context, in J. S. Uleman and J. A. Bargh (Eds.) Unintended Thought, New York: Gilford Press, pp. 212-252.
  13. Chen, J., Chen, X., Kauffman, R. J., and Song, X. (2009). Should we collude? Analyzing the benefits of bidder cooperation in online group-buying auctions. Electronic Commerce Research and Applications, 8(4), 191-202. https://doi.org/10.1016/j.elerap.2008.11.010
  14. Chen, S., and Chaiken, S. (1999). The heuristicsystematic model in its broader context. Dual-process Theories in Social Psychology, 15, 73-96.
  15. Chi, H. K., Yeh, H. R., and Yang, Y. T. (2009). The impact of brand awareness on consumer purchase intention: The mediating effect of perceived quality and brand loyalty. The Journal of International Management Studies, 4(1), 135-144.
  16. Chung, H. C., Lee, H., Koo, C., and Chung, N. (2017). Which Is More Important in Online Review Usefulness, Heuristic or Systematic Cue? In Information and Communication Technologies in Tourism 2017 (pp. 581-594). Springer, Cham.
  17. Chung, N., Song, H. G., and Lee, H. (2017), Consumers' Impulsive Buying Behavior of Restaurant Products in Social Commerce. International Journal of Contemporary Hospitality Management, 29(2), 709-731. https://doi.org/10.1108/IJCHM-10-2015-0608
  18. Dacko, S. G. (2004). Marketing strategies for last-minute travel and tourism: Profitability and revenue management implications. Journal of Travel & Tourism Marketing, 16(4), 7-20. https://doi.org/10.1300/J073v16n04_04
  19. Darke, P. R., Freedman, J. L., and Chaiken, S. (1995). Percentage discounts, initial price, and bargain hunting: A heuristic-systematic approach to price search behavior. Journal of Applied Psychology, 80(5), 580-586. https://doi.org/10.1037/0021-9010.80.5.580
  20. Dholakia, U. M., Blazevic, V., Wiertz, C., and Algesheimer, R. (2009). Communal service delivery: How customers benefit from participation in firm-hosted virtual P3 communities. Journal of Service Research, 12(2), 208-226. https://doi.org/10.1177/1094670509338618
  21. Dhurup, M. (2014). Impulsive fashion apparel consumption: the role of hedonism, fashion involvement and emotional gratification in fashion apparel impulsive buying behaviour in a developing country. Mediterranean Journal of Social Sciences, 5(8), 168-177. https://doi.org/10.5901/mjss.2014.v5n8p168
  22. Eagly, A. H. & Chaiken, S. (1993). The psychology of attitudes. Forth Worth, TX: Harcourt Brace Jovanovich College Publishers.
  23. Fornell, C., and Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
  24. Granados, N., Gupta, A., and Kauffman, R. J. (2012). Online and offline demand and price elasticities: Evidence from the air travel industry. Information Systems Research, 23(1), 164-181. https://doi.org/10.1287/isre.1100.0312
  25. Hamilton, M. A. (1997). The phase interfaced omnistructure underlying the processing of persuasive messages. In G. A. Barnett & F. J. Boster (Eds.), Advances in communication science (pp. 1-42). Greenwich, CT.
  26. Huang, R., and Sarigollu, E. (2012). How brand awareness relates to market outcome, brand equity, and the marketing mix. Journal of Business Research, 65(1), 92-99. https://doi.org/10.1016/j.jbusres.2011.02.003
  27. Hussain, Q. (2018). How to Enter the Online Travel Market. Medium, Retrieved June 8, 2018, from https://medium.com/@qasimhussain_1701/how-to -enter-the-online-travel-market-8a86a0e8d77a
  28. Hutter, K., Hautz, J., Dennhardt, S., and Fuller, J. (2013). The impact of user interactions in social media on brand awareness and purchase intention: the case of MINI on Facebook. Journal of Product & Brand Management, 22(5/6), 342-351. https://doi.org/10.1108/JPBM-05-2013-0299
  29. Kah, J. A., Lee, C. K., and Chung, N. (2010). Evaluating travel website motivational communication using a structural equation modelling approach. International Journal of Tourism Research, 12(6), 787-802. https://doi.org/10.1002/jtr.796
  30. Kauffman, R. J., and Wang, B. (2001). New buyers' arrival under dynamic pricing market microstructure: The case of group-buying discounts on the Internet. Journal of Management Information Systems, 18(2), 157-188. https://doi.org/10.1109/HICSS.2001.927065
  31. Kaynama, S. A., and Black, C. I. (2000). A proposal to assess the service quality of online travel agencies: An exploratory study. Journal of Professional Services Marketing, 21(1), 63-88. https://doi.org/10.1300/J090v21n01_05
  32. Kim, D. J., Kim, W. G., and Han, J. S. (2007). A perceptual mapping of online travel agencies and preference attributes. Tourism Management, 28(2), 591-603. https://doi.org/10.1016/j.tourman.2006.04.022
  33. Kim, M. J., Lee, C. K., Chung, N., and Kim, W. G. (2014). Factors affecting online tourism group buying and the moderating role of loyalty. Journal of Travel Research, 53(3), 380-394. https://doi.org/10.1177/0047287513497837
  34. Lee, K. C., Chung, N., and Lee, S. (2011). Exploring the influence of personal schema on trust transfer and switching costs in brick-and-click bookstores. Information & Management, 48(8), 364-370. https://doi.org/10.1016/j.im.2011.09.002
  35. Ling, L., Guo, X., and Yang, C. (2014). Opening the online marketplace: An examination of hotel pricing and travel agency on-line distribution of rooms. Tourism management, 45, 234-243. https://doi.org/10.1016/j.tourman.2014.05.003
  36. Liu, Z., and Park, S. (2015). What makes a useful online review? Implication for travel product websites. Tourism Management, 47, 140-151. https://doi.org/10.1016/j.tourman.2014.09.020
  37. Liu, Z., Liu, L., and Li, H. (2012). Determinants of information retweeting in microblogging. Internet Research, 22(4), 443-466. https://doi.org/10.1108/10662241211250980
  38. Maio, M. M. (2001). Evaluation of brand equity measures: Further empirical results. Journal of Product & Brand Management, 10(1), 38-51.
  39. Nilashi, M., Jannach, D., bin Ibrahim, O., Esfahani, M. D., and Ahmadi, H. (2016). Recommendation quality, transparency, and website quality for trust-building in recommendation agents. Electronic Commerce Research and Applications, 19, 70-84. https://doi.org/10.1016/j.elerap.2016.09.003
  40. Nunnally, J. C. (1967). Psychometric theory. New York: McGraw-Hill.
  41. O'Connor, P., and Piccoli. G. (2003). The impact of information technology. In B. Brotherton (Ed.), International Hospitality Industry, Structure, Characteristics and Issues (pp. 110-125). Oxford, Enland: Butterworth-Heinemann.
  42. Pan, B., Zhang, L., and Law, R. (2013). The complex matter of online hotel choice. Cornell Hospitality Quarterly, 54(1), 74-83. https://doi.org/10.1177/1938965512463264
  43. Park, Y. A., Gretzel, U., and Sirakaya-Turk, E. (2007). Measuring web site quality for online travel agencies. Journal of Travel & Tourism Marketing, 23(1), 15-30. https://doi.org/10.1300/J073v23n01_02
  44. Raguseo, E., Neirotti, P., and Paolucci, E. (2017). How small hotels can drive value their way in infomediation. The case of 'Italian hotels vs. OTAs and TripAdvisor.' Information & Management, 54(6), 745-756. https://doi.org/10.1016/j.im.2016.12.002
  45. Schlosser, A. E., White, T. B., and Lloyd, S. M. (2006). Converting web site visitors into buyers: how web site investment increases consumer trusting beliefs and online purchase intentions. Journal of Marketing, 70(2), 133-148. https://doi.org/10.1509/jmkg.70.2.133
  46. Song, H. G., Chung, N., and Koo, C. (2015). Impulsive Buying Behavior of Restaurant Products in Social Commerce: A Role of Serendipity and Scarcity Message. Proceedings from PACIS 2015: The 19th Pacific Asia Conference on Information Systems, Singapore, 6-9 July.
  47. Statista (2017). Digital travel sales worldwide from 2014 to 2020 (in billion U.S. dollars). Retrieved from https://www.statista.com/statistics/499694/forecast-of-online-travel-sales-worldwide/
  48. Stephenson, M. T., Benoit, W. L., and Tschida, D. A. (2001). Testing the mediating role of cognitive responses in the elaboration likelihood model. Communication Studies, 52(4), 324-337. https://doi.org/10.1080/10510970109388567
  49. Tabachnick, B. G., and Fidell, L. S. (2007). Using Multivariate Statistics, 5th ed. Boston, MA: Pearson.
  50. Trefis Team (2017.10.23.). How Will Blockchain Help Regulate OTA Commissions And Who Are Some Of Its Early Adopters. Nasdaq, Retrieved from http://www.nasdaq.com/article/how-will-blockchain-help-regulate-ota-commissions-and-who-are-some-of-its-early-adopters-cm863812
  51. Van Selm, M., and Jankowski, N. W. (2006). Conducting online surveys. Quality & Quantity, 40(3), 435-456. https://doi.org/10.1007/s11135-005-8081-8
  52. Yang, S. B., Shin, S. H., Joun, Y., and Koo, C. (2017). Exploring the comparative importance of online hotel reviews' heuristic attributes in review helpfulness: a conjoint analysis approach. Journal of Travel & Tourism Marketing, 34(7), 963-985. https://doi.org/10.1080/10548408.2016.1251872
  53. Zeithaml, V. A., Parasuraman, A., and Berry, L. L. (1988). SERVQUAL: A multi-item scale for measuring customer perceptions of service. Journal of Retailing, 64(1), 12-40.
  54. Zhang, K. Z., Zhao, S. J., Cheung, C. M., and Lee, M. K. (2014). Examining the influence of online reviews on consumers' decision-making: A heuristicsystematic model. Decision Support Systems, 67, 78-89. https://doi.org/10.1016/j.dss.2014.08.005
  55. Zhang, W., and Watts, S. A. (2008). Capitalizing on content: Information adoption in two online communities. Journal of the Association for Information Systems, 9(2), 73-94. https://doi.org/10.17705/1jais.00149
  56. Zhang, Y.C., Seaghdha, D.O, Quercia, D., and Jambor, T. (2012), Auralist: introducing serendipity into music recommendation. Proceedings of the Fifth ACM International Conference on Web Search and Data Mining, ACM, New York, NY, pp. 13-22.