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Wang 2015
Wang 2015
a r t i c l e i n f o a b s t r a c t
Keywords: Growing competitiveness in the marketplace pushes hoteliers to fully take advantage of their websites
Hotel website quality as a marketing tool. This study proposed that a trusting relationship with customers could be developed
eTrust by investing in hotel website development. A research model that incorporates hotel website quality,
Online booking intentions
eTrust, and online booking intentions was put forward. The software AMOS 20.0 was adopted to analyze
Mediation effect
the proposed inter-variable relationships. Statistical results demonstrated that hotel website quality is
a strong predictor of eTrust which then also mediates the relationship between website quality and
consumers’ online booking intentions. Implications were offered for practitioners based on the results.
© 2015 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.ijhm.2015.03.012
0278-4319/© 2015 Elsevier Ltd. All rights reserved.
L. Wang et al. / International Journal of Hospitality Management 47 (2015) 108–115 109
its predictors and its mediating role, understanding of which the cost of information search and inspection (Kramer, 1999). In
could offer insights into establishing consumer trust in the hotel the service industry, trust enables long-term relationships with
industry. customers (Kumar et al., 1995).
The emergence and development of information and com-
munication technologies (ICTs) have provided scholars a novel
2. Literature review and hypothesis development
perspective to discuss trust in the online environment (i.e. eTrust).
Building on findings from traditional business settings, researchers
2.1. Hotel website quality
re-conceptualized the eTrust construct, mainly focusing on two
elements: perceived risk and eTrust referent.
According to Jeong et al. (2003), website quality is the “over-
In the online community, money losses and abuse of personal
all excellence or effectiveness of a [website] in delivering intended
information are the main concerns of subjective Internet risks (Bart
messages to its audience and viewers” (p. 162). However, this def-
et al., 2005). In the hospitality industry, hotel rooms are normally
inition overlooks the important roles of customer needs which are
big-ticket items that carry more inherent risks and increase the
crucial for the success of hospitality and tourism websites (Law
degree of uncertainty. As to the referent, the object of eTrust in
and Leung, 2000). More recently, Chang and Chen (2008) gave a
the present study is hotel website, while salespersons or stores are
more comprehensive interpretation by referring to website quality
the trusting objects in the offline environment. As previously men-
as “users’ evaluation of whether a web site’s features meet users’
tioned, a commercial website can be regarded as a store, which may
needs and reflect the overall excellence of the web site” (p. 821).
explain the empirically proven applicability of offline consumer
Such definition suggests the importance of consumers in assessing
trust variables in information system studies (Gefen, 2002; Sultan
website performance (Bai et al., 2008). The current study focuses on
et al., 2002).
consumer perceptions and thus follows Chang and Chen’s (2008)
Considering the risk and referent involved, eTrust can be con-
definition.
ceptualized as either a belief or a behavior. The former view defines
Extending Jarvenpaa et al.’s (2000) metaphor, a website could
trust as a positive expectation that stems from certain attributes
be regarded as a company’s online store and defines the atmo-
of the trusting party, including expertise, reliability, and honesty
sphere of online shopping. Similar to the offline environment where
(Doney and Cannon, 1997; Morgan and Hunt, 1994). The latter
consumers need traditional cues like brand and reputation for deci-
treats eTrust as a behavior that reflects a consumer’s willingness to
sion making, Internet users rely on website attributes to judge
rely on the other party (McKnight et al., 1998). An integrative stance
the potential gains and losses. Effective website design means free
combines the two views by defining consumer trust as “a willing-
of barriers to online transactions like anonymity, lack of personal
ness to rely on an exchange partner in whom one has confidence”
communication, and electronic payment (Chang and Chen, 2008).
(Moorman et al., 1993. p. 82).
The effectiveness of hotel websites could be reflected from per-
Another issue in eTrust conceptualization is its dimensionality,
spectives of right content and easy to use (Au Yeung and Law,
majority studies about which are prevailed by the multidimen-
2004), which can be translated into functionality and usability. As to
sional view. Particularly, Ang et al. (2001) suggested that eTrust
website functionality, it pertains to “the degree of information pro-
has three dimensions, namely, ability, willingness to rectify prob-
vision about the website’s services/products,” while usability refers
lems, and presence of privacy policy. Gefen (2002) found that eTrust
“to what extent a website is efficient and enjoyable for its prod-
has three dimensions of integrity, ability, and benevolence. Gefen’s
ucts/services being promoted” (Au Yeung and Law, 2004. p. 309).
study is consistent with the seminal work by Morgan and Hunt
However, such categorization ignores the elements of privacy and
(1994), which discusses consumer trust in the offline environment.
security, which would cause consumer uncertainty in online trans-
A comprehensive review conducted by Wang et al. (2014a) found
actions (Pavlou et al., 2007). Following literature from other fields
that majority studies about trust in the tourism and hospitality
(e.g., Pavlou et al., 2007; Wang et al., 2004), it would be reasonable
industries were based on Morgan and Hunt (1994). With the defini-
to include security and privacy attributes as an extra dimension of
tion of eTrust as positive expectation, Wang et al. (2014b) designed
hotel website quality. Given the increasing importance of online
and empirically tested an instrument for measuring eTrust made up
presence in the hotel industry, the present study proposes that
of three dimensions: integrity, ability, and benevolence. Ability is
hotel website quality has three dimensions, namely, functionality,
the degree to which hotels’ own websites are perceived to possess
usability, and security and privacy.
the necessary knowledge, skills, and abilities to execute the job
Considerable efforts from tourism and hospitality researchers
responsibilities properly. Integrity is about consumer perceptions
could be spotted in discussing impacts of hotel website quality.
that hotel websites will fulfill their claims. These two facets are
For example, Law and Hsu (2006) categorized Internet users into
based on cognitive assessment like the evaluation of information on
online browsers and online shoppers and afterwards investigated
contracts and structural assurances, which is associated with eco-
the perceived importance of hotel website attributes and dimen-
nomic rationale. Benevolence refers to the genuine concern, which
sions in a comparative manner. Such categorization implies hotel
is based on consumer emotional assessment of the goodwill that is
websites function as information channels and transaction forums.
associated with caring intentions (Dimoka, 2010).
After years of development, the Internet, as a marketing tool, plays
informational, transactional, and relational roles in today’s market
2.3. Online purchase intentions
(Tse, 2013). Bai et al. (2006) and Gan et al. (2006) examined rela-
tionship marketing features on websites of hotels in the US and
Consumer purchase intention has been widely discussed in mar-
Singapore respectively.
keting research because it functions as a dimension of behavioral
intention (Zeithaml et al., 1996) and is reportedly predictive of
2.2. eTrust actual purchase behavior (Ajzen and Fishbein, 1980). More impor-
tantly, measures of intention are superior to behavioral measures
Initiated by psychologists in the 1950s, the concept of trust has in capturing consumers’ mind because actual behaviors could
made inroads into various disciplines, such as sociology (Zucker, be influenced by what a seller offers, such as discounted deals
1986), management (Das and Teng, 1998) and marketing (Morgan and coupons, rather than true preferences (Day, 1969). Data on
and Hunt, 1994). In marketing, trust enables consumer coopera- consumer purchase intention are also relatively easier to collect
tion because it reduces anxiety in decision making and reduces than those reflecting behavior (Chandon et al., 2005). Therefore,
110 L. Wang et al. / International Journal of Hospitality Management 47 (2015) 108–115
Table 1
Measures of variables of interest.
Measurements Factor loadings Item-to-total correlations Eigenvalue Variance explained Cronbach’s alpha
Another round of data collection was carried out to find out the the study were young and well-educated Chinese with relatively
inter-variable relationships. The same online survey company col- decent salaries.
lected 842 valid questionnaires. It is worth noting that respondents
included in the first survey were excluded from the second phase.
4.2. Reliability and validity of measurement models
Table 3
Reliability and validity of measurement models.
Note: Values in the parentheses are factor loadings of latent constructs for second order variables of hotel website quality and eTrust, respectively.
Table 4
Inter-construct correlations and squared root of AVE estimates.
Ability .818
Benevolence .655 .776
Integrity .491 .716 .798
Note: inter-correlation coefficients are below the diagonal and squared root of AVE estimates are presented on the diagonal.
L. Wang et al. / International Journal of Hospitality Management 47 (2015) 108–115 113
Table 5
Structural parameter estimates and goodness-of-fit indices.
or less significant (partial mediation) than the parameter estimate and firms from other industries. Also, it reinforced the repeatedly
(ˇwq to bi ) in the constrained model. The result showed that eTrust identified evolving nature of website development. Hotel websites
had a partial mediating role (ˇ13 = .190, t = 3.559, and ˇwq to bi = .452, at present have gone beyond for merely being a promotional chan-
t = 8.651). More importantly, the Chi-square value in the mediated nel. They become tools for real-time transactions and customer
model significantly improved at the .001 level (2 = 50), suppor- retentions. Therefore, elements of privacy and security are equally
ting the mediating effect of eTrust. The indirect effect of eTrust was important and relevant as those of functionality and usability.
also examined to explain its role. The indirect effect of hotel web- The wide adoption of Internet technologies by hotels has
site quality on online booking intentions through eTrust was .213, attracted much attention from scholars, as evidenced by myr-
which came from ˇ12 *ˇ23 . iad extant studies (Hashim et al., 2010). Connecting theories to
operations, these studies have investigated the effects of hotel
5. Discussion and implications websites on consumer decision making and benefits of such
online presence to hoteliers (Noone and Mattila, 2009). This study
Hotel websites have been developed along a marketing con- reaffirmed the clearly established relationship and found a sig-
tinuum of informational, transactional, and relational roles (Tse, nificantly strong influence from website quality upon consumers’
2013). The ubiquitous tool of the Internet provides a convenient purchase intentions. This study also found the relationship between
way for consumers to acquire information of products and ser- perceived website quality and online purchase intention could
vices offered by a company and it is also an electronic platform be mediated by eTrust, suggesting that website features arousing
for profitability because of its capability of real-time transactions consumers’ trust has a strong influence on consumers’ decisions.
(Chung and Law, 2003). There is also a general agreement among This indicates the need for hotels to incorporate relational fea-
researchers that the Internet creates an ideal environment for tures to form and maintain a trusting relationship with Internet
customer relationships management as it facilitates two-way com- users.
munications between hotels and their customers (Schmidt et al., As expected, eTrust positively influences the online booking
2008). A bunch of past studies have examined contents and fea- intentions. The results are consistent with similar studies in other
tures of hotel websites (e.g., Law and Hsu, 2006; Chung and Law, sectors of tourism and hospitality. For example, Wu and Chang
2003). However, little research has been conducted to examine (2006) found that transaction trust leads to mutual transaction
how perceived website quality would influence the relationship intention between travel wholesalers and retailers. Kim et al.
marketing concept of online consumer trust (eTrust). The current (2009b) incorporated eTrust as an external variable into the tech-
study intends to fill in this research gap by conducting a large-scale nology acceptance model and found that eTrust was positively
empirical study. associated with consumer intention to accept and reuse airline
Statistical results suggested that hotel website quality has three B2C eCommerce websites. Recently, Lee and Wu (2011) found con-
underlying dimensions, namely usability, functionality, as well as sumers’ perceived trust would positively moderate relationships
security and privacy. This finding is consist with Bai et al. (2008) among online service quality, value, and satisfaction.
in that system quality and information quality played an impor- More importantly, this study contributes to the literature body
tant role in measuring perceived website quality. As such, this by validating the propose that hotel websites could be used as a
study suggests hotel practitioners to work to improve the navi- relationship marketing tool. It complements past studies like Bai
gational structure of their websites, quickly and easily directing et al. (2006) and Gan et al. (2006) in considering consumers whose
web browsers to their intended destinations to increase perceived views are critical to website effectiveness (Law and Leung, 2000).
eTrust levels. The saying that “content is king” also applies here. It extends two studies of Wang et al. (2014a) and Wang et al.
Functionality, or information quality, constitutes an important (2014b), the former comprehensively reviewed extant studies of
dimension of website quality. This dimension is more critical in consumer trust in the tourism and hospitality industries while the
selling service products on the Internet because consumers cannot latter solved the operational problem of eTrust in a novel way
touch and feel items for sale and therefore need to rely on detailed by empirically formulating a measurement scale. This study sur-
and clear information to make purchase decisions. Accordingly, veyed Internet users, statistical results of which suggested that
more resources should be devoted to the provision of accurate, cur- perceived website quality is a strong predictor of eTrust, indicat-
rent, and complete information on their official websites to increase ing a trusting relationship with customers could be established by
consumer trust in online transactions. investing in website development. The verification of the media-
An interesting discovery comes from the variable of privacy and tion effect of eTrust in the relationship between website quality
security, which has been widely studied in main stream market- and consumers’ online booking intentions further supported such
ing literature. For instance, in retailing marketing, Ranganathan statement.
and Ganapathy (2002) concluded privacy and security were crucial Effective hotel websites, as an increasingly important distri-
elements which could lead to online sales. However, such a con- bution channel, offer unprecedented advantages to hotels’ online
clusion may not to be applicable to the hotel industry as Schmidt businesses (Zafiropoulos and Vrana, 2006). Based on the results
et al. (2008) found that privacy and security do not correlate with of 20 individual interviews among leisure and business travelers,
website effectiveness, which was likely attributed to the low uti- HawkPartners (2012) found that among all online channels for trav-
lization of hotel websites as a point-of-sale channel. Nonetheless, elers researching and booking rooms, hotel websites are the most
this study found that privacy and security are also important in often cited source. However, Bai et al. (2006) and Gan et al. (2006)
influencing consumers’ decision making. Such a discovery implies found that hotels have yet to fully utilize their website as a rela-
that the existence of a wide gap in website exploitation by hotels tionship marketing platform as features presented on the websites
114 L. Wang et al. / International Journal of Hospitality Management 47 (2015) 108–115
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