Consumer Behaviour in e-Tourism

Annette Steinbauer
Hannes Werthner
Department for Information Systems/ e-tourism
Leopold-Franzens-University, Austria
[email protected]

Abstract
During the last decades Tourism as an information intensive business has been strongly
affected by the rapid changes in technology, especially the Internet,. One of the major results is
the changing in traveller's behaviour. Therefore the challenge of identifying, attracting and
retaining customers in the online market as well as the issue of understanding consumer's
perceptions is becoming a critical success factor. The aim of this paper is to identify the
determinants that influence potential travellers to use the Internet for travel planning and to
show their interrelations. A major result of thesefindingsis a causal model of e-tourism usage.
Constructs such as Internet affinity, attitudes and self-efficacy prove to have a major impact on
the actual use of the Internet for travel planning, whereas moderating variables such as gender
or customer involvement prove to be important as well.
Keywords: e-tourism; onhne travel planning; consumer behaviour; travel websites.

1 Introduction
Travel and Tourism as one of the world's highest priority industries has an important
economic impact on the global as well as on the local level (Werthner & Klein, 1999).
Information is the crucial factor for tourists while planning, booking and being on
vacation as well as after their trips. The nature of tourism and its products makes
tourism an information intensive business (Werthner & Klein, 1999). These issues
lead to the insight that tourism belongs to the industries most affected by the rapid
changes in technology during the last decades. The role of information explains the
importance of Information Technology (IT) applications in tourism. The Internet can
be seen as one of the most influential technologies that change traveller's behaviour.
While the number of Internet users increases and is reported to have reached 957
million (IWS, 2005), the diffusion of IT has improved the travel service supply in
efficiency, quality and flexibility (Jung & Baker, 1998; Werthner & Klein, 1999).
According to these facts, the European Online Travel Market is estimated to generate
€ 41 bn in 2006, and 15-20% of all travel expenses are forecasted to be made via the
Internet in 2006 (PhoCusWright, 2004). Even though the Internet is an important tool
for information search and purchase of products, most consumers are using multiple
channels in their decision making process. 60% of online mformation searchers are
finally buying offline (Fittkau & Maass, 2005). And in the travel industry 68% of
online travel buyers are not only purchasing via the Internet, but use multiple
channels for purchasing their travel products (PhoCusWright, 2005).
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The aim of this study is to identify the determinants that influence potential travellers
to use the Internet for travel plarming and to show their interrelationships. The result
of these findings is a causal model of e-tourism usage (e-tourism within this context is
defined as the process of potential travellers using the Internet for travel planning).
Special focus is also on differences in model structure for exclusive information
searching travellers compared to online booking travellers as well as business versus
private travellers. Based on the results from the e-Tourism Usage Model, the study is
also going to identify current barriers and problems of potential travellers in using the
Internet for travel plarming.

The paper is starting with presentmg theoretical considerations and the literature
background for developing the research model. The literature overview is followed by
the presentation of the theoretically derived "e-Tourism Usage Model". Furthermore,
the applied methodology as well as empirical results concerning the overall model
structure and the moderating effects of the e-Tourism Usage Model are introduced
and discussed.

2 Theoretical Background and the e-Tourism Usage Model

Starting with a theoretical evaluation of determinants influencing the use of the
Internet for travel planning, the e-Tourism Usage Model was derived on the basis of
previous models concerning relevant fields of research. The following three fields of
research proved to be interesting and relevant for deriving the model: i) theories of
consumer behaviour, ii) models of decision making in tourism and iii) theories of e-
shopping acceptance including the subject of website evaluation. In the following a
short overview of existing theories within these fields of interest will be provided.
Based upon these theoretical considerations the "e-Tourism Usage Model" will be
introduced.

Theories in consumer behaviour are generally developed to better understand and

explain consumer decisions and behaviour. These studies aim to find principles in
consumer behaviour to be able to derive practical implications and advices to predict
and to influence consumer decisions (Kroeber-Riel & Weinberg, 1999; Groppel-
Klein, 2001). The consumer behaviour research shows two different views in looking
at the consumer decision process: the behaviouristic and the neobehaviouristic view
of research. While behaviourists are focusing on the observable constructs of
stimulating aspects and responses within the consumer decision process,
neobehaviourists expand their research on the theoretical and hypothetical constructs
interceding between stimuli and responses (Kroeber-Riel, 1996). The present study is
following the neobehaviouristic research tradition in building upon a three-step
structure of consumer behaviour (Freter, 1983). This structure was also adopted from
(Middleton, 1994; Swarbrooke & Homer, 1999) to explain tourists' behaviour during
the decision making process. Stimuli within this context consist of endogenous and
exogenous factors showing decision relevant characteristics of the consumer. These
include consumer's usage of new technologies as well as variables describing his
social and economic environment. The responses show the consumer's reaction on
 67

these stimuli, meaning purchase of a special product or brand, choice of distribution

channel or intensity of usage. Following the neobehaviouristic research tradition, the
process of stimuli leading to responses is explained by viewing the constructs in
between. Those interceding constructs appear as cognitive, activating and combined
aspects. Cognitive aspects can be described as buying intention and preferences,
activating constructs include emotions, attitudes and motivations. Combining those
aspects involvement and trust are also seen as interceding constructs.

Tourism research mainly views travel planning as a complex and multi-faceted

decision making process (Fesenmaier & Jeng, 2000). Therefore, theories of decision
making in tourism commonly focus on identifying the various aspects of a tourist's
decision. While (Swarbrooke & Homer, 1999; Wahab, Crompton, & Rothfield, 1976)
developed the first research papers and models of decision making in tourism in the
70ies, researchers like (Mathieson & Wall, 1982; Moutinho, 1987; Swarbrooke &
Homer, 1999) enhanced their findings in formulating further theories in identifying
determinants and describing phases of the decision making process. Those classical
theories of decision makmg in tourism were facing some criticism in having
difficulties in meeting fast moving changes within the tourism as well as the
communication and technology industry. Therefore, current theories describing
tourist's behaviour within the age of new technology and Internet environment also
needed to be reviewed and considered for deriving a model of decision making in e-
tourism. (Woodside & MacDonald, 1994) published their "Tourism Service Decision
Process Model" by describing the tourist's decision making process determined by
eight aspects contributing to the final decision. Situational factors like traveller's
characteristics as well as marketing activities affect the individual information search
behaviour within this research. (Fesenmaier & Jeng, 2000) also build their "Decision
Net Model" on the assumption of viewing the tourist's decision as a complex decision
consisting of various sub-decisions. The decision process is described as having a
hierarchical overall structure, where some decisions are contingent upon other
decisions that have already been made. Forming a net structure based on the
assumption that every aspect of each decision affects and is being affected by other
sub-decisions, the final travel decision is hypothesised to consist of core, secondary,
and en route sub-decisions.

Consumer's use of the Internet at any stage of the decision making process has
become a major subject within the consumer behaviour research during the last
decade (e-shopping acceptance). The present study will contribute to research in the
field of tourists' behaviour by looking at their behaviour while using the Intemet as
information and/or booking channel. Therefore, theories describmg the acceptance of
technology and satisfaction of consumers with using the Intemet were an interesting
subject in deriving the "Model of e-Tourism Usage". Most common theories in
explaining the acceptance of new technologies are the "Innovation Diffusion Theory"
(IDT), "Theory of Reasoned Action" (TRA), "Theory of Planned Behaviour" (TPB)
and the "Technology Acceptance Model" (TAM). The IDT describes the process of
technology acceptance by five characteristics of the technology influencing the
consimier's attitude leading to adopting or refusing the technology (Rogers, 1995).
These crucial characteristics include relative advantage, compatibility, complexity,
trialability and observability. The TRA points at the attitude as a critical constmct
towards adopting or refusing thie use of a certain technology. While individual
attitudes and subjective norms form a person's behavioural intention, an individual's
actual behaviour is the natural consequence (Fishbein & Ajzen, 1975). Introducing
perceived behavioural control as an additional determinant of behavioural intention,
the TPB was built upon the TRA (Ajzen & Madden, 1986). The most common and
most adopted theory of accepting a new technology is the TAM (Davis, 1989; Davis,
Bagozzi, & Warshaw, 1989)The TAM states attitude as the central construct
influencing the behavioural intention and thereby the actual use or non-adoption of
the technology. This theory explains a person's attitude towards using a certain
technology by three determmants: perceived ease of use, perceived usefulness and
perceived enjoyment.

Theories addressing the issue of accepting the Internet as information and/or booking
channel focus rather on the consumer's evaluation of the system than on the process
of adoption. Highly acquainted and effective in this field of research was the
"Information System Success Model" (IS Success Model) introduced by (DeLone &
McLean, 2003). The theory introduces six constructs to quantify the success of an
information system in the e-commerce environment: system quality, information
quality, service quality, usage, user's satisfaction and net benefits. Assigning these
theories to the subject of tourism a couple of highly useful empirically proved models
have been published focusing on travel website quality (Mills & Morrison, 2003;
Sigala & Sakellaridis, 2004; DeLone & McLean, 2003) and usability (Essawy, 2005;
DeLone & McLean, 2004; Kao, Louvieris, Powell-Perry, & Buhalis, 2005). Based
upon these theoretical considerations the "e-Tourism Usage Model" (eTUM) was
derived. Fig 1. shows the simplified version of the determinants hypothetically
contributing to the attitude towards using and actual use of the Internet for travel
planning.

Transactjon phases

Soclodemographlcs and Individual travel

^ ^ characteriatica ^ ^ •

Fig. 1. The e-Tourism Usage Model (eTUM)

 69

The objective of the eTUM is to identify determinants of using the Internet for travel
planning, to elaborate the model structure as well as to quantify the effects between
the identified determinants. By showing quantitative differences in the model
structure between different types of travellers the model is contributing to identifying
problems and barriers in using the Internet for travel planning.

The e-Tourism Usage Model is built upon a three-step structure of consumer

behaviour classifymg the hypothesised constructs as being stimulating, interceding,
responding and moderating. The discovered constructs influencing consumer's choice
to use the Internet as travel plannmg channel are as follows: evaluation of the website,
travel motivation, trip features, experience with e-commerce and/or e-tourism,
Internet affinity, self-efficacy, involvement and trust. The attitude towards using the
Internet for travel planning is hypothesised to be the central concept in affecting the
decision to actually use the Internet as information and/or booking channel. The
attitude therefore is a central interceding - combining active and cognitive aspects -
determinant of the actual use of onlme travel plaiming (Davis, 1989; Davis et al.,
1989; Delago-Ballester, 2003; DeLone & McLean, 2004; Fishbem & Ajzen, 1975;
Heinemann, 1974; Jung & Butler, 2000; Kul3 & Tomczak, 2000; Nieschlag, Dichtl, &
HOrschgen, 2002; Schramm-Klein, 2005; Wolff, 2005). The exogenous and
endogenous determinants are indirectly influencing the actual use via having a direct
impact on the attitude toward using the Internet. Exogenous and endogenous stimuli
withm this context are represented by evaluation of the website, travel motivation, trip
features, experience and Internet affmity. The traveller's reaction to these stimuli
within his channel choice process is defmed as the actual use of the Internet for travel
planning. In contrast to stimuli and reaction the interceding determinants are not
observable. The formulated interceding constructs are trust, self-efficacy, involvement
and attitude. Moderating influences are expected from the stage of transaction process
as well as travel specific and demographic characteristics of the potential tourist.
These moderating variables are hypothesised to influence the interrelations between
the introduced constructs but not to have a determining impact on the constructs itself

3 Methodology
3.1 Study Design
To validate the theoretical model described above an online questionnau-e for
potential travellers was designed. The data were collected on four different travel
websites, which were selected by their range of supply and the available transaction
phases they offer with their services. The websites should on the one hand be able to
offer all phases of the customer buying process from information gathering to buying
the travel product online. On the other hand they should represent different supply
ranges from offering only individual travel products to offering individual products as
well as complete travel packages. The Tiscover AG, Thomas Cook Touristik GmbH,
Travel Scout 24 and Nix-wie-weg.de supported the study by placing a link to the
questionnaire on their website and/or in their newsletter(s). The questionnaire was
formulated in German, so only German-speaking travellers were addressed to take
part in the study. The questioimaire was placed on the website of the Institute of
Information Systems/Department for e-Tourism at the University of Innsbruck. To
70

encourage persons who were visiting these websites, to take part in the study, travel
vouchers were promised to be raffled as incentives for participants.
3.2 Sample Characteristics
1.458 users took part in the study by filling out the online questionnaire. The gender
distribution was nearly equal. 53% of the participants were female and 47% male.
With more than one third the survey's age peak was between 41 and 50 years. Rather
surprising is that 25% of all respondents aimounced to be older than 50 years. All
groups of income were represented in the study. On average the interviewed persons
are traveling three times a year. Most of these people mainly travel for private
purpose, but there are still 21% that are doing at least a quarter of their journeys for
business reason. And 71% of these potential travellers declared to have already
booked a travel product online. The people that were interviewed while surfmg on
one of the four travel websites showed to be rather Internet affme. More than one
third has seven or more years of Internet experience and over 50% of the interviewed
persons use the Internet at least 10 hours per week. The sample was dominated by
travellers searching for information on the homepage of Tiscover. 79% of the
participants took part in the survey via Tiscover, 14% via Travel Scout 24 while
24,5% were generated by nix-wie-weg.de and 2% by Thomas Cook.

3.3 Constructs Used and their Reliability

Eight determinants were theoretically hypothesised to have an influence on the
attitude towards using the Internet for travel planning as well as on the actual choice
to use the online channel for gathering travel information and/or booking.
Demographics as well as individual traveller's characteristics and the actual
transaction phase were hypothesised to be moderating variables. As mentioned above
the theoretical determinants were evaluation of the website, trip features, experience,
Internet affmity, self-efficacy, involvement and trust. These determinants where
operationalised by using single statements. The items used for operationalising the
constructs were adopted from established and reliability proved scales (Bieger,
Beritelli, Weinert, & Wittmer, 2005; DeLone & McLean, 2004; Fesenmaier &
Johnson, 1989; Fishbein & Ajzen, 1975; Gretzel, Mitsche, Hwang, Fesenmaier, 2004;
Gursoy & McCleary 2004; Jung & Butler, 2000; Kroeber-Riel & Weinberg 1996; Li
& Buhalis, 2005; Luo, Feng, Cai, 2004; Mills & Morrison, 2003a; Morrison, Jing,
O'Leary, & Lipping, 2001; Scharlet al., 2004; Schmidt, SchOgel, & Tomczak, 2003;
Sigala & Sakellaridis, 2004; Schramm-Klein, 2003; Wolff, 2005). All of these
measurement items were subject to a 6-point Likert-Scale (if not specified otherwise).
Those items were tested for reliability and optimised by indicator and factor reliability
criteria as well as using confirmatory factor analysis. In cases with less than three
items remaining the Cronbachs alpha was regarded as the final decision criteria.
Table 1 shows the number of items remaining and the fulfilbnent of reliability criteria
for each of the hypothesised constructs.
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Table 1. Constructs used and their reliability

Ease of Use 3 0.90

Website Evaluation
Usefulness 3 0.86

Trip Features 2 0.74

Experience 2 0.87

Internet Affinity/DSI 2 0.62

Information Search 2 0.79

Self-efficacy
Online Booking 3 0.79

Involvement 2 0.62

Trust 3 0.80

Information Search 2 0.69

Attitude
Booicing 3 0.88

Intensity 2 0.70
Usage
Loyalty 2 0.78

4 Explaining e-Tourism Usage

4.1 Overall Structural Model

After performing the analysis of missing values 533 completed questionnaires were
evaluated to be representative for the sample. With this sample of 533 cases it was
aimed to fit a model using structural equation techniques with latent variables (usmg
AMOS 5.0-Software). The exogenously influencing as well as the endogenous
constructs and their operationalisation were described in the previous chapter. After
some modifications the e-Tourism Usage Model was accepted with the following
parameters: df = 228, Cmin/df = 2.164, SRMR = .043, GFI = .931, AGFI = .909, CFI
= .956, RMSEA = .047. 1 Fig 1. shows the validated model displaying solely arrows
with significant causal correlations. The standardized direct effects are illustrated in
the figure.
72

Cmin/df 2,164
SRMR 0,043
AGFI 0,909
CFI 0,956
RMSEA 0,047

Fig. 2. Validated structural model for explaining e-tourism usage

To quantify the influences the total effects were considered. Total effects result as the
sum of direct and indirect causal effects one latent construct has on another construct.
Indirect effects are obtained if a construct influences another construct via
intermediary constructs. W hile analysing and modifying the theoretically derived
model the constructs ease of use of the website, trip features, motivation and
involvement did not prove to have any significant causal interdependencies with the
other mentioned constructs. Involvement still showed significant correlations with all
other constructs so this latent variable was later on analysed for having a moderatmg
impact on the model. The actual use of the Internet for travel plaiming is mainly
driven by the traveller's Internet-affinity (tot.eff = .40). The more someone is Internet
literate the more he is likely to use the Internet when planning a journey. Following
psychological-behavioural theories, the attitude towards using the Internet for travel-
information search plays also a major role for the actual use of e-tourism (tot.eff =
.37). The importance of someone's attitude towards performing a behaviour for the
actual behaviour has been discussed in many empkical studies and is also confirmed
in this study. Rather surprising is the finding that in this study the attitude towards
booking a travel product online does not have a direct impact on the actual use of e-
tourism (tot.eff = .09). This cognition leads to the insight that a positive attitude
towards using the Internet as an information channel is a precedent condition for the
traveller's consideration to increase his usage of the Internet as a booking channel as
well. The potential traveller's self-efficacy towards booking a travel product online is
the last of the three constructs having a direct impact on the actual use of e-tourism
(tot.eff = .23). The more a person is confident in knowing how to book a travel
 73

product online the more he will consider the Internet as a useful channel for planning
the journey.

After showing its importance for the actual use of e-tourism it is interesting to look at
the determinants of someone's attitude towards using the Internet for travel planning.
The attitude towards using the Internet for travel information search is mainly driven
by someone's self-efficacy (tot.eff. = .28). Similar impact on the attitude towards
using the Internet for travel information gathering shows the attitude towards booking
as well as the evaluation of the website's usefulness (both tot.eff. = .25). The two
facets of attitude, information search and booking, are influencing each other by
showing significant positive causal correlations in between them (tot.eff. = .25/ .23).
Experience and self-efficacy towards booking online have rather little and only
indirect influence on the attitude towards information search (tot.eff. = .17/ .14).
Attitude towards booking a travel product online is mainly dependent on the self-
efficacy towards booking online (tot.eff. = .58). The potential traveller's attitude
towards booking is thus the more positive the more the person feels capable of
proceeding with the online booking transaction. Experience and self-efficacy towards
information search are also pushing the attitude towards booking a travel product
online (tot.eff. = .30/ .27). The construct of trust plays surprisingly a rather small role
within the e-tourism usage model but is having its main impact on the attitude
towards booking (tot.eff = .13). Trust itself is mainly causally influenced by
experience (tot.eff. = .42). Self-efficacy towards booking and the evaluation of the
website's usefulness are also strengthening a potential traveller's trust (tot.eff. = .28/
.32). Interesting is also the fmding that loyalty towards a travel website is mainly
driven by the self-efficacy towards the capability of booking a travel product at the
specific travel website. The more a person is confident of his own abilities to proceed
with the online booking process the rather he will be loyal and using the same website
again for the next travel planning. The more a potential traveller is using the Internet
for travel planning the less he is loyal to a specific website. This negative impact of
actual e-tourism usage on loyalty is rather minor (tot.eff. = -.07). As also shown by
the descriptive analysis the online travel brand loyalty seems to be rather low. The
large variety of travel offerings all over the World Wide Web seems to cause a rather
small emotional commitment to specific websites of travellers planning their journey
online.

4.2 Moderating Variables

After analysing the overall model structures, the additional variables that were
hypothesised to have a moderating effect on the interdependencies between the
analysed constructs were examined. Gender, individual traveller's characteristics,
transaction phase and involvement were hypothesised to be moderating variables for
the structural model. Focusing on the most interesting effects resulting from the
construct of involvement, its moderating effects will be discussed in detail as follows.
The construct of involvement was former hypothesised to be one of the determinants
having direct influence on the attitude and actual use of e-tourism but analysing the
structural model showed no causal influences of involvement. Nevertheless,
involvement proved to have significant correlations with the other determinants, so
this construct was tested to have a moderating impact. People with low involvement
74

seem to be far more influenced by the website's perceived usefulness than highly
involved people. Low-involved people also perceive the usefulness of the website and
ease of use significantly less positive than people with high involvement. While
highly involved people have a more positive attitude towards using the Internet for
travel planning, low-involved people show significant less trust into travel websites.
They also have less experience and seem to be less Intemet-affine than people being
highly involved in their travel plans. Recapitulating the hypotheses about the
variables gender, type of traveller, online booking experience and involvement having
moderating influences on the validated structural model could be corroborated.

5 Discussion and Implications

The aim of this study was to develop an empirically validated model of e-tourism
usage that identifies the relevant factors influencing customer's choice of using the
Internet for travel planning. The model analyses the weight of each factor on the
attitude of using the online channel. The research furthermore shows differences in
model structure (i.e. different weighting of individual influencing factors) for
different types of travellers. The empirical analysis of the study has brought up the
following findings. The actual use of the Internet for travel planning is mainly
influenced by the attitude towards using the Internet as an information gathering
channel, Internet familiarity and self-efficacy towards booking the travel product
online. Moreover, regarding the potential traveller's attitude it is obviously
determining to differentiate between attitude towards using the Internet for
mformation search and towards using it as a booking channel. These aspects have to
be viewed separately for these constructs show clearly different profiles concerning
their impacts, although they are strongly affecting each other. While attitude towards
using the Internet as an information channel is mainly influenced by evaluatmg the
website's usefukiess, attitude towards using the Internet as a booking channel strongly
depends on the traveller's self-efficacy mainly regarding online booking but as well
information searching. Also important for the traveller's attitude towards online
booking are experiences the traveller has made with travel websites and e-commerce
in the past as well as his trust into travel websites in general and the Internet affinity
of the user. Trust on the other hand strongly depends on the users' past experiences
with using the Internet. But also usefiibess of the website and self-efficacy towards
mformation search and booking via the Internet have an important impact on the
potential traveller's trust. The structural model also proves to be strongly affected by
moderating variables. Therefore demographics, type of traveller (business vs. private),
online booking experience (booker vs. looker) as well as involvement were validated
to have a strongly influencing effect on the causal correlations between the constructs
of the empirically proved e-Tourism Usage Model.

While the supply of online travel information sources and booking facilities in the
Internet is permanently increasing, the issue of consumer and customer relations is
becoming even more important for tourism market players. An enhanced
understanding of the customer and his specific needs, perceptions and motives in the
decision making process is the critical success factor in providing a successful and
profitable online customer relationship. The Internet's key attraction as a marketing
tool lies in the level of interactivity that can be developed between suppliers and
 75

consumers. The findings and results of this study show perceptions, motives and
barriers of online travelers. Thus, the study intends to contribute to developing
advanced effective online marketing strategies to attract tourists to use the online
channel for travel planning. The study was constructed on the assumption of
addressing only middle European and German-speaking countries. The cultural
dimension was hence excluded to be influencing in this context. Therefore the
construct of culture is recommended to be included in further analysis.

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