School of Marketing Curtin Business School Travelers’ Responses to Online Information on Consumer-‐Generated Media for Travel-‐Related Services Sony Kusumasondjaja This thesis is presented for the Degree of Doctor of Philosophy of Curtin University January 2012 i Abstract This research is aimed to investigate how travel consumers respond to online information posted in Consumer-‐Generated Media. It was examined the impact of consumer characteristics (risk propensity and Internet experience), information characteristics (information valence and information quality), and source characteristics (source identity and similarity) on consumer perception of information credibility, trust in the travel services being discussed, and intention to purchase the services. Hypotheses and research questions were proposed based on the concept of uncertainty reduction and information processing. A 3x2 between-‐subject experimental research design was developed. Information valence and source identity were manipulated. The survey was conducted at several popular tourist destinations in Bali involving 1939 real travel consumers holidaying in Bali as participants. Results show significant effects of risk propensity, information quality, and similarity on perception of information credibility, trust in travel services being reviewed, and intentions to purchase the services. Internet experience was found not significant in affecting credibility, trust, and purchase intention. The study also confirmed the main and interaction effects of information valence and source identity on perception of information credibility, trust in travel services being reviewed, and intentions to purchase the services. Information with identified source was perceived to be more credible and leads to greater trust and consumer purchase intention than unidentified information. Balanced information was found to have greatest impact on credibility, trust, and intention. Positive information was suggested to have the least impact on credibility, as well as negative information on trust and purchase intention. The interaction of balanced information with identified source was found to have the greatest influence on credibility, trust, and intention, while negative information with unidentified source was found to have the least effect. Several conceptual, methodological, and research contributions offered by this study are also discussed. Keywords: Consumer-‐Generated Media, Online Word-‐of-‐Mouth, Credibility, Trust, Information Valence, Source Identity i Statement of Original Authorship Declaration To the best of my knowledge and belief this thesis contains no material previously published by any other person except where due acknowledgment has been made. This thesis contains no material that has been accepted for the award of any other degree or diploma in any university. Sony Kusumasondjaja 16 January 2012 ii Table of Contents Abstract ………………………………………………………………………………………………………………………. i Statement of Original Authorship ……………………………………………………………………………….. ii Table of Contents ………………………………………………………………………………………………………… iii List of Tables ………………………………………………………………………………………………………………. vi List of Figures ………………………………………………………………………………………………………….….. viii List of Publications ………………………………………………………………………………………………………. ix Acknowledgments ………………………………………………………………………………………………………. x Chapter 1 – Introduction …………………………………………………………………………………………….. 1 1.1. Research Background …………………………………………………………………………… 1 1.2. Justification of the Research ………………………………………………………………… 3 1.3. Objectives of the Research …………………………………………………………………… 5 1.4. Key Concepts and Definitions ……………………………………………………………….. 5 1.5. Methodology ………………………………………………………………………………………… 7 1.6. Expected Results of the Study ………………………………………………………………. 7 1.7. Significance of the Study ………………………………………………………………………. 8 1.8. Composition of Dissertation …………………………………………………………………. 9 Chapter 2 – Literature Review …………………………………………………………………………………… 11 2.1. Introduction …………………………………………………………………………………………. 11 2.2. Information Search Behavior ……………………………………………………………….. 12 2.2.1. Internal and External Search for Information ……………………………………….. 12 2.2.2. Online Information Search Behavior in Travel and Tourism Context …….. 14 2.3. Word-‐of-‐Mouth Communication …………………………………………………………. 18 2.4. Consumer-‐Generated Media in Web 2.0 Era ……………………………………….. 23 2.4.1. The Emerging Phenomenon of Web 2.0 ……………………………………………….. 23 2.4.2. Consumer-‐Generated Media Defined ……………………………………………………. 26 2.4.3. Types of Consumer-‐Generated Media ………………………………………………….. 28 2.4.4. Consumer-‐Generated Media and User Participation …………………………….. 29 2.4.5. Motivation for CGM Adoption and Participation …………………………………... 30 2.4.6. Consumer-‐Generated Media in Travel and Tourism Context …………………. 33 2.5. Credibility Issues on Consumer-‐Generated Media ……………………………….. 37 2.5.1. The Concept of Credibility in Online Environment ………………………………… 38 2.5.2. Types of Credibility in Online Environment …………………………………………… 41 2.5.3. The Distinctive Characteristics of Credibility for Online Information …….. 43 2.5.4. Factors Affecting Credibility of Online Information ………………………………. 46 2.5.4.1. Message Consistency ……………………………………………………………….. 46 2.5.4.2. Message Valence …………………………………………………………………….. 47 2.5.4.3. Message Quality ………………………………………………………………………. 48 2.5.4.4. Source Anonymity ……………………………………………………………………. 49 iii 2.5.4.5. Time Frame ……………………………………………………………………………… 50 2.5.4.6. Product Type ……………………………………………………………………………. 51 2.5.4.7. Consumers’ Internet Expertise …………………………………………………. 52 2.5.4.8. Consumer Perception of Similarity …………………………………………… 53 2.5.4.9. Age and Gender ………………………………………………………………………. 54 2.5.5. Consumer Responses to Credible Information ……………………………………… 55 2.6. Key Gaps in the Literature …………………………………………………………………… 58 2.7. Conclusion ………………………………………………………………………………………….. 59 Chapter 3 – Conceptual Framework & Hypotheses Development ……………………………… 60 3.1. Overview of Conceptual Framework …………………………………………………… 60 3.2. Theoretical Background ……………………………………………………………………… 61 3.3. Conceptual Framework ………………………………………………………………………. 66 3.4. Hypotheses Development ………………………………………………………………….. 67 3.4.1. Construct Definition ……………………………………………………………………………. 67 3.4.2. Risk Propensity, Information Credibility, and Trust ……………………………… 68 3.4.3. Internet Experience, Information Credibility, and Trust ………………………. 69 3.4.4. Information Quality, Information Credibility, and Trust …………………….… 69 3.4.5. Similarity, Information Credibility, and Trust …………………………………….… 71 3.4.6. Information Credibility, Trust, and Purchase Intention ……………………….. 73 3.4.7. The Main Effect of Source Identity ……………………………………………………… 74 3.4.8. The Main Effect of Information Valence ……………………………………………… 76 3.4.9. The Interaction Effect of Source Identity and Information Valence …….. 78 3.5. Summary of Hypotheses ……………………………………………………………………. 80 Chapter 4 – Research Methodology ………………………………………………………………………….. 83 4.1. Overview of the Research Methods …………………………………………………… 83 4.2. Experimental Design …………………………………………………………………………… 84 4.3. Manipulation Development ………………………………………………………………… 86 4.3.1. The Development of the Scenario ……………………………………………………….. 87 4.3.2. Manipulation of the Online Information ……………………………………………… 88 4.3.2.1. Manipulation for the Online Review Website ………………………….. 89 4.3.2.2. Manipulation for the Hotel ……………………………………………………… 89 4.3.2.3. Manipulation for the Reviewer ……………………………………………….. 90 4.3.2.4. Manipulation for the Review …………………………………………………… 90 4.4. Manipulation Checks ………………………………………………………………………….. 92 4.5. Measurement Scales ………………………………………………………………………….. 93 4.6. Instruments of Measurement …………………………………………………………….. 95 4.7. Participants …………………………………………………………………………………………. 96 4.8. Ethics Approval ……………………………………………………………………………………. 98 iv 4.9. Pre-‐Test & Pilot Study …………………………………………………………………………. 99 4.9.1. Pre-‐Testing the Research Instruments …………………………………………………. 99 4.9.2. Pilot Study …………………………………………………………………………………………… 100 4.10. Data Collection Procedures …………………………………………………………………. 101 4.11. Analytical Techniques …………………………………………………………………………. 103 Chapter 5 – Analysis & Findings …………………………………………………………………………………. 104 5.1. Overview of Research Findings …………………………………………………………… 104 5.2. Profile of Research Participants ………………………………………………………….. 105 5.3. Realism & Manipulation Checks …………………………………………………………. 108 5.4. Reliability Analysis ………………………………………………………………………………. 110 5.5. Results of Main Study …………………………………………………………………………. 111 5.5.1. Objective One: Relationships of Risk Propensity, Internet Experience, Information Quality, Similarity, Credibility, Trust, and Purchase Intention … 111 5.5.2. Objective Two: The Main Effect of Source Identity on Information Quality, Similarity, Credibility, Trust, and Purchase Intention …………………………………. 114 5.5.3. Objective Three: The Main Effect of Information Valence on Information Quality, Similarity, Credibility, Trust, and Purchase Intention ……………………. 117 5.5.4. Objective Four: The Interaction Effect of Source Identity and Information Valence on Information Quality, Similarity, Credibility, Trust, and Purchase Intention …………………………………………………………………………………………………… 120 5.6. Conclusion ………………………………………………………………………………………….. 136 Chapter 6 – Discussion & Conclusion ………………………………………………………………………… 140 6.1. Introduction …………………………………………………………………………………………. 140 6.2. Discussion of the Research Findings …………………………………………………….. 141 6.3. Research Significance …………………………………………………………………………… 145 6.3.1. Conceptual Contributions …………………………………………………………………….. 145 6.3.2. Methodological Contributions ……………………………………………………………… 147 6.3.3. Managerial Contributions ……………………………………………………………………. 147 6.4. Limitations & Future Research Directions ……………………………………………. 149 6.5. Conclusion …………………………………………………………………………………………… 151 References ………………………………………………………………………………………………………………….. 152 Appendix 1 – Questionnaire Form Appendix 2 – Descriptive Profile of Participants Appendix 3 – Reliability Analysis Appendix 4 – Statistical Results for Research Objective 1 Appendix 5 – Statistical Results for Research Objective 2 Appendix 6 – Statistical Results for Research Objective 3 Appendix 7 – Statistical Results for Research Objective 4 v List of Tables Table 1.1 Definition of constructs used in this study …………………………………………… 7 Table 2.1 Various Forms of Consumer-‐Generated Media ……………………………………. 28 Table 3.1 Definition of constructs used in this study …………………………………………… 68 Table 3.2 Set of Hypotheses for Research Objective 1 ………………………………………… 81 Table 3.3 Set of Hypotheses for Research Objective 2 ………………………………………… 82 Table 3.4 Set of Research Questions for Research Objective 3 ……………………………. 82 Table 3.5 Set of Research Questions for Research Objective 4 ……………………………. 83 Table 4.1 Groups of Treatment in the Experiment Study …………………………………….. 88 Table 4.2 Examples of Comparability of the Online Reviews ……………………………….. 93 Table 4.3 Check for the Scenario Realism/Online Review Site Webpage ……………… 94 Table 4.4 Manipulation Check for the Source Identity …………………………………………. 94 Table 4.5 Manipulation Check for the Information Valence …………………………………. 94 Table 5.1 Demographic Profile of Research Participants ………………………………………. 108 Table 5.2 Manipulation Check Result for the Scenario Realism ……………………………. 110 Table 5.3 Manipulation Check Result for the Online Review Site Realism ……………. 110 Table 5.4 Manipulation Check Result for Source Identity …………………………………….. 111 Table 5.5 Manipulation Check Result for Information Valence …………………………….. 111 Table 5.6 Result for Reliability Analysis of Measurement ……………………………………… 112 Table 5.7 Regression Analysis Result for Factors Influencing Information Credibility 113 Table 5.8 Regression Analysis Result for Factors Influencing Trust ……………………….. 114 Table 5.9 Regression Analysis Result for Credibility Influencing Trust …………………… 115 Table 5.10 Regression Analysis Result for Factor Influencing Purchase Intention ……. 115 Table 5.11 Independent t-‐Test Result for the Main Effect of Source Identity ………….. 117 Table 5.12 ANOVA Results for the Main Effect of Information Valence …………………… 120 Table 5.13 Results for the Interaction Effect of Information Valence & Identity ….. 121 vi Table 5.14 ANOVA Results for the Information with Identified Source ……………… 131 Table 5.15 ANOVA Results for the Information with Unidentified Source …………. 135 Table 5.16 Results of Hypotheses for Research Objective 1 ………………………………. 139 Table 5.17 Results of Hypotheses for Research Objectives 2 …………………………….. 139 Table 5.18 Results of Hypotheses for Research Objectives 3 ……………………………… 140 Table 5.19 Results of Hypotheses for Research Objectives 4 ……………………………… 141 vii List of Figures Figure 3.1 Conceptual Framework ……………………………………………………………………… 65 Figure 5.1 The Graphs for the Main Effects of Source Identity …………………………… 118 Figure 5.2 The Graphs for the Main Effects of Information Valence …………………… 121 Figure 5.3 The Interaction Effects of Source Identity & Information Valence on Information Quality ……………………………………………………………………………. 127 Figure 5.4 The Interaction Effects of Source Identity & Information Valence on Similarity ……………………………………………………………………………………………. 127 Figure 5.5 The Interaction Effects of Source Identity & Information Valence on Credibility ………………………………………………………………………………………….. 128 Figure 5.6 The Interaction Effects of Source Identity & Information Valence on Trust 128 Figure 5.7 The Interaction Effects of Source Identity & Information Valence on Purchase Intention ……………………………………………………………………………… 129 Figure 5.8 The Effects of Valence of Information with Identified Source on Information Quality ……………………………………………………………………………. 132 Figure 5.9 The Effects of Valence of Information with Identified Source on Similarity ……………………………………………………………………………………………. 132 Figure 5.10 The Effects of Valence of Information with Identified Source on Credibility ……………..……………………………………………………………………………. 133 Figure 5.11 The Effects of Valence of Information with Identified Source on Trust ……………………..……………………………………………………………………………. 133 Figure 5.12 The Effects of Valence of Information with Identified Source on Intention ……………………………………………………………………………………………. 134 Figure 5.13 The Effects of Valence of Information with Unidentified Source on Information Quality ……………………………………………………………………………. 136 Figure 5.14 The Effects of Valence of Information with Unidentified Source on Similarity ……………………………………………………………………………………………. 136 Figure 5.15 The Effects of Valence of Information with Unidentified Source on Credibility ……………………………………………………………………………………………. 137 Figure 5.16 The Effects of Valence of Information with Unidentified Source on Trust ……………………………………………………………………………………………………. 137 Figure 5.17 The Effects of Valence of Information with Unidentified Source on Purchase Intention ….…………………………………………………………………………. 138 viii List of Publications Kusumasondjaja, S., Shanka, T., & Marchegiani, C. (2011). Credibility of Online Reviews and Initial Trust: The Roles of Source Identity and Message Valence. In Crotts, J.C., Magnini, V, & Zehrer, A. (Eds.) Proceedings of 2011 Conference on Social Media and Tourism. Available at http://www.cpe.vt.edu/mpd.htmsocialmedia/proceedings.html (Best Paper Award) Kusumasondjaja, S., Shanka, T., & Marchegiani, C. (2011). Credibility of Online Reviews and Initial Online Trust in Hotel Services; The Roles of Similarity and Review Quality. In Proceedings of ANZMAC (Australia New Zealand Marketing Academy) Conference 2011.(Best Paper Award – Tourism Marketing track) Kusumasondjaja, S., Shanka, T., & Marchegiani, C. (2012) Credibility of Online Reviews and Initial Trust; The Roles of Reviewer’s Identity and Review Valence. Journal of Vacation Marketing 18(3) ix
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