Factors Influencing Purchase Intention for Online Travel Products - Case Study of Taiwanese Consumers

Abstract

The Internet has dramatically changed how people communicate, search for information, make decisions and purchase goods/services. Travel product has distinguishing features which make them particularly receptive to the Internet benefits. Although the Internet provides benefits for information searching and product purchasing, there are perceived barriers that customers may encounter while using the Internet for travel purchase, which, to some extent, impeded the growth of online travel sales. Several factors influence purchase intention for online travel products, e.g. social factors which contextualize online purchase. Trust influences consumer behaviour and is significant in e-commerce. This thesis develops a framework for investigating factors influencing Taiwanese consumers’ purchase intention for online travel products emphasizing the role of trust and providing a holistic view of online consumer purchase decision-making processes incorporating trust, culture and various supply/demand side factors and their influence on online travel purchase intention. A case study investigates Taiwanese consumers’ online travel purchase behaviour. Multi-methods enable triangulation: in-depth interviews and participant observation explore consumers’ online travel purchase experience and perceptions of travel websites; questionnaire and projective technique interviews investigate attitudes and perceptions identified in the questionnaire survey and their effect on travel purchase intention. The findings suggest trust significantly impacts online travel purchase intention. Trust cab be built by supply-side factors: vendor’s reputation and website design. If consumers feel online travel companies care about mutual benefits, trust is more likely to be forged. Cultural factors impact on consumer purchase intention. Consumers often visit and feel more comfortable purchasing from websites recommended by family and friends. This research helps understand trust by explaining factors promoting trust in online travel purchase contexts. Since perceptions of travel website information quality, vendor’s reputation, and recommendations from family and friends strongly predict trust, Taiwanese online travel companies should focus on them to increase trust and ultimately online transaction volume.