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

Abstract

The purpose of this study is to better understand online consumer behaviour by analyzing these consumers' motivations and intentions leading them to purchase hotel rooms via online travel agencies (OTA). In particular, this paper seeks to demonstrate the impact levels of the following variables: electronic word-of-mouth (eWOM) (in the form of online reviews, or ORs), perceived risk (PR), trust (TR), perceived usefulness (PU), perceived ease of use (PEOU), perceived enjoyment (PE), and the dependent variable, purchase intention (PI). Quantitative research methods and structural equation modeling were applied in order to construct a conceptual model into which survey data collected from 438 respondents in China was then inputted. The results obtained using Structural Equation Model (SEM) analysis (significance level = 0.05) reveal four significant trends among the customers in the sample: (1) Online reviews and their three dimensions (volume (VO), valence (VA) and quality of online reviews (QA)) had a svignificantly negative impact on customers’ perceived risk, and a significantly positive impact on customers’ trust; (2) online reviews and the three dimensions thereof (VO, VA and QA) significantly affected purchase intention, as mediated by trust and perceived risk; (3) perceived ease of use significantly influenced both perceived usefulness and purchase intention; and, (4) perceived usefulness and enjoyment significantly influenced purchase intention. The results indicate that all of the independent variables could have significant impacts on online travel agency customers’ purchase intentions, and that these consumers’ attitudes and perceptions are critical factors affecting the motivation towards online hotel booking transactions, which in turn affects these tourists’ decision-making. The results of this study offer a valuable contribution to scholars’ efforts to address a critical knowledge gap in the field; further, this study proposes a potential framework for gaining a deeper understanding of consumer behavior and developing appropriate marketing strategies.