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THE FACTORS INFLUENCING ON PURCHASE INTENTION OF

THAI AND CHINESE CUSTOMERS TOWARDS THE HOTEL
INDUSTRY IN BANGKOK, THAILAND

Jidapa Tweephoncharoen1 and Rawin Vongurai2

ABSTRACT: This study aimed to examine the factors influencing on purchase intention of
Thai and Chinese customers towards the hotel industry in Bangkok, Thailand. This research
adopted descriptive research method which aimed to describe the target population and
variables. The researcher applied nonprobability sampling as a sampling technique and
collected the data through questionnaires with 400 respondents. The questionnaire were
implemented in English language collected from tourist who stay at hotel in the top three
rankings of hotel area in Bangkok (Pathum Wan district, Phra Nakhon district and Watthana
district). A statistical software was used to test the data. Variables are measured by a five-
point Likert scale. The first two hypothesis were tested by Multiple Linear Regression and other
two hypothesis were tested by Independent sample t-test. Summary of the results, the findings
of the conceptual model revealed that eWOM affected loyalty and purchase intention as shown
in the results of hypothesis one and two.

Keywords: Brand Attitude, Customer satisfaction, Electronic word-of - mouth (eWOM),

Loyalty, Purchase Intention, Reputation, Trust

Introduction & Statement of Problem Moreover, it has long and rich

Thailand enjoys a good location in traditions and history such as Thai arts,
the Asia Pacific region, benefiting from architecture, and craftsmanship. In the part
familiarity to key source markets and of tourist facility, Thailand is a tourist-
offering a broad range of regional and friendly country, with good technology and
global travel connections variety of tourist accommodations (Tourism Authority of
lifestyles can be Thailand. With geography Thailand, 2019). In the Asia Pacific region,
of Thailand, Northern part with highlands Thai tourism industry is one of the best
and in the East and the South with oceans. well-established tourism markets in the
It has various of diverse natural attractions world (Thailand tourism report, 2018).
and cultures. Thailand is the place that fits With strong growth potential and long-
with tourists who are enthusiastic about established reputation, the tourism industry
ancient civilizations and culture. in Thailand is well developed with resilient
reputation. Most popular cities in Thailand
including Bangkok and Phuket, the hotel
market is competitive and diverse. With
1
Graduate School of Business, support from government and rising visitor
Master of Science in Management, numbers, Thailand continues to attract
Assumption University of Thailand investor interest with hotel developers,
despite challenges such as labor market
2
Faculty Member, Graduate School of restrictions and an uncertain political
Business, Assumption University of climate. Thailand has a range of attractions
Thailand to suit a variety of budgets providing
*Corresponding author. considerable value for money compared to
[email protected] other countries in the Asia-Pacific region.
Including eco-tourism activities, cultural
35
and nightlife attractions of Bangkok. A Once they are dissatisfied service or
variety of festivals, exhibitions, and product, customers can stop to use the
sporting events are held year-round. service or provide feedback to the
Moreover, Thailand is also building its company.
reputation as a golfing and sailing
destination. Tourists can visit throughout Loyalty
the year, including the rainy season. Even
with seasonal slumps, occupancy rates and When a customer is satisfied with
returns are quite steady (Thailand tourism goods and services, customer loyalty occurs
report, 2018). (Demir, Talaat and Aydinli, 2015). Loyal
customers express an intended behavior
The purpose of this research is to related to the product and services of the
examine model investigating factors company. Customer loyalty possibility of
affecting the purchase intention of repurchasing product or renew service
customers towards the context of contracts in the future with the company.
hospitality services in Bangkok. In general, So, it may higher barriers switching to the
many factors are supported by empirical competitors and recommendation to other
evidence, however the researcher focused people. Dick and Basu (1994) assume true
on Trust, customer satisfaction, eWOM, customer loyalty is based on the positive
reputation, brand attitude and loyalty. relative of customer attitudes with brand
evaluation. Bowen and Chen, (2001)
Trust explained customer loyalty is measured by
behavioral, attitudinal and composite
Trust explains as customer’s belief methods. The frequency of repurchase or
that a company or brand will provide their volume shows behavioral loyalty but does
need and not provide unexpected action in not the related motivation of purchasing
negative ways or outcome (Anderson and behaviors (Riley, Niinine, Szivas and Wills,
Narus, 1990). In social exchange theory, 2001).
trust is required as an element of the
relationship between buyer and seller Purchase Intention
which works in marketing and other
disciplines (Blau, 1964). Tariq, Nawaz, and Butt, (2013) implied
purchase intention that customers will
Customer Satisfaction promise to themselves to buy products or
services with the same company again.
Parasuraman, 1997; Ravald and Purchase intention is important for a
Grönroos, (1996) defined customer company or brand as it shows the
satisfaction as a customer comparison impression of customer retention. In
between expectation of customer and the addition, Huarng, Yu, & Huang, (2010)
perceived level of goods and services. referred to Purchase intention that
Satisfaction is seen as a foregoing of advertisements media affected to the
loyalty. Moreover, Anderson, Fornell, & customer plan to buy a product or services.
Lehmann (1994, p.55) state that ‘It has been It explains the purchase of products or
defined as their preference and favorable services as matching between
attitudes toward consumption experiences’. advertisement and consumer behavior
Groth and Grandey (2012, p.55) found that (Kamins, 1990). Moreover, it is used in
the relationship between frontline advertising impact assessments to measure
employees influence customer satisfaction. the online purchase (Brown, Broderick and
Researcher found that dissatisfied customer Lee, 2007) and repurchase.
services did not meet their expectations.

36
Electronic word-of - mouth (eWOM) been defined as a perception of quality with
the name. Zeithaml, (1998) suggests that
Brown et al., (2007) defined Word- the perceived quality of goods or services
of-mouth (WOM) marketing is a tool to are related to the reputation of the brand
investigate both online and offline name. In some situation, customers will
channels. It’s an effect on brands, buying relate the goods or services with the brand
behavior and company. By the way, reputation (i.e. Pepsi, BMW, Park Hyatt,
Electronic word-of - mouth (eWOM) come InterContinental, McKinsey, etc.). So, the
about across various online communities to reputation of the company individual goods
communicate with online consumer or services. brand appears to have
interactions which were supported by connected with reputation of the company.
Dwyer, Hiltz, and Passerini (2007). It is
shown that eWOM influence on evaluation
and purchase intention on social media Brand Attitude
networks. Litvin, Goldsmith and Pan
(2008) explained eWOM also talk about Mitchell and Olson (1981), defined
online recommendations, online reviews or consumer’s attitudes toward a band in a
online comment that is important with the positive or negative way. It is customer
new technology tools. Zhu, and Zhang emotional and recognition aspects of the
(2010, p. 140) that eWOM as “all informal company’s brand. Moreover, (Bibby, 2006;
communications directed at consumers Grimm, 2005; Rossiter, Percy and
through Internet based technology related Donovan, 1991) defined Brand attitude as a
to the usage or characteristics of particular response the customer has towards the
goods and services, or their sellers.” brand. Four types of decision-making
According to eWOM is more speed of processes can clarify what the customer’s
interaction, more convenience, and can mental action (cognition) and experience
reach information to many channels (affect) about the brand, what the mental
without face to face communication than faculty of purpose or will to perform an
traditional Word of mouth. So, Electronic action (conation), how strong feelings are
word-of-mouth is more influence than (attitude valence and stability) and how
traditional word-of-mouth (Sun, Youn, Wu quickly does customer can be recalled
and Kuntaraporn, 2006). (attitude accessibility).

Reputation
Theoretical and Conceptual Framework
Fombrun and Van Riel, 2002;
Schultz, (2006) state that ‘Reputation is Conceptual Framework
judged within the context of competitive This proposed conceptual
offerings. Customers perceived more framework (Figure 1) was structured based
trustworthy and credible of a company with on the first research model which was
a good reputation. Moreover, a company constructed by Chaang-Iuan and Pie-Chun
and brand with a good reputation attract (2015) who studied the influence of the
more new customers and retain current blogs effective to maintain customer
ones. It is a core intangible asset of the relationship in travel industry. The
company and creates barriers to researcher had utilized seven variables
competitive firms. Brand reputation refers which are interactivity, information quality,
to how the brand is viewed and valued by entertainment, E-trust, E-satisfaction, E-
customers. A positive brand reputation loyalty, and purchase intention.
means customers trust the company and Furthermore, to confirm the relationships in
want to buy goods or services. It also has the proposed model of Chaang-Iuan & Pie-

37
Chun (2015) which eventually excluded a survey method by distributing both online
eWOM and reputation, the researcher and offline questionnaires to gather data
decided to add-on two variables by from respondents. Apart from using
adapting the model proposed byntoni José, questionnaire, the researcher applied a
and Fabiana, (2018). Moreover, the sample survey of 400 prospects
researcher decided to add one more variable representative of the population. A self-
which is brand attitude that supporting from administrative survey is distributed in order
the model of Chetna and Amresh, (2017). for the respondents complete all questions
by themselves. The questionnaire includes
nine parts. The first part is the screening
questions. The second part is survey
independent variable about eWOM. The
third part examines independent variable
about Trust. The forth part survey
independent variable about Customer
satisfaction. The fifth part studied
independent variable about reputation. The
sixth part is measuring independent
variable about brand attitude. The seventh
part is the measuring mediating variable
about loyalty. The eighth part measuring
the dependent variable about purchase
Figure 1: Conceptual Framework intention. The last part is the questions
about the respondent’s demographic
Hypotheses profile.

H1a: Trust, customer satisfaction, Measurement of variables

eWOM and reputation significantly
influences customer loyalty toward The target respondents of this
hospitality services in Bangkok. research are customers who have visited a
H2a: eWOM, brand attitude and hotel in Bangkok at least once. The study
loyalty significantly influence purchase will be conducted in Bangkok, Thailand.
intention toward hospitality services in
Bangkok.
H3a: There is significant mean Population and samples
difference between Thais tourists and The researcher applied 400
Chinese tourists on loyalty towards respondents as the sample size to study the
hospitality services in Bangkok. impact of variable toward hotel industry in
H4a: There is significant mean Bangkok, Thailand. The target population
difference between Thais tourists and of this study consisted of 2 groups
Chinese tourists on purchase intention categorized by the nationality; Thai tourists
towards hospitality services in Bangkok. and international tourists. Moreover, the
population were those who visited lodging
Research Methodology in Bangkok, Thailand for more than one
night. According to the research conducted
This researcher selected by Yuan and McDonald (1990) research,
questionnaire option to collect result of nationality-based studied in tourism show
respondents who provided a representative that tourists differ on perceived destination
sample of the population, applicable to this image and attitudes travel patterns,
topic. Therefore, the researcher conducted motivation and communication styles.
38
Therefore, the researcher collected the data had income between 20,001- 50,000 baht
of target population of this study from per month.
tourist who travelled and stayed hotels in Table 2: Descriptive Analysis of
Bangkok, Thailand. Demographic Characteristics
Variables Frequency Percentage
Reliability Test (ƒ) (%)
Marital status
To examine further whether the - Single 292 73
questionnaire was proper for a large - Married (with 58 14.5
number of prospects, the researcher decided children) 45 11.3
to test the variable reliability by the use of - Married 5 1.3
Cronbach’s alpha or the coefficient alpha as (without
suggested by Hair et al. (2003). The children)
coefficient alpha is considered as - Others
acceptable when it is greater than 0.6 and Income level
can be used as a research instrument (per month) 106 26.5
(Sekaran, 2003). -Under 20,000 201 50.2
Baht 67 16.8
-20,001 – 50,000 26 6.5
Table 1: Reliability Statistics
Baht Continued/…
Variables Cronbach’s -50,001 -
Alpha 100,000 Baht
eWOM 0.729 -More than
Trust 0.611 100,000 Baht
Customer satisfaction 0.662 Occupation
Reputation 0.617 - Business 106 26.5
Brand attitude 0.698 owner 145 36.6
Loyalty 0.617 - Employee 69 17.3
Purchase intention 0.674 - Student 70 17.5
- Professional 10 2.5
Table 1 show the outcome of (e.g. Lecturer,
reliability test of each variable used in this Engineer,
study. All of variables proposed in this Doctor)
research have the range of coefficient alpha - Others
more than 0.6. This means all variables Nationality
used in the research are reliable and can be - - Thai 200 50
implemented as the instrument of this - - Chinese 200 50
study. Total 400 100
Result and Discussion
Inferential Analysis
Descriptive Analysis of Demographic
Characteristics Inferential statistics is a statistics
tool to analyze the characteristics from
Table 2 illustrates most respondents sample to a population. Hypothesis testing
in this research. The result posits that the is the use of statistics to determine the
major respondents are Thai single female probability that a given hypothesis is true.
with 18-25 years old who are employee and In this study, there are four hypotheses
constructed based on conceptual
framework by using Multiple Linear
39
Regression (MLR) and Independent sample Therefore, H2 was partially supported. All
T-test as the statistical methods. VIFs were lower than 5, meaning that there
Table 3: Regression Model Summary of was no multicollinearity problem.
Hypothesis 1
Table 5: Independent sample test result of
Hypothesis 3

A multiple linear regression (MLR)

analysis was conducted to the research to
evaluate the predictors of attributes (trust,
customer satisfaction, eWOM and Table 5 shows independent sample
reputation). Table 3 indicate that trust, test was conducted to evaluate the
customer satisfaction, eWOM and relationship between loyalty and nationality
reputation for 76.2% at 95% confidence of respondents; Thai tourists and Chinese
level as shown by R square value of 0.762. tourists. The independent variable is
Reputation was not supported since P- nationality of respondents; Thai tourists
values were higher than 0.05. Hence, and Chinese tourists. The dependent
reputation has no impact on loyalty on hotel variable is loyalty. The independent sample
industry. However, eWOM, trust, and T-test showed the significance (2-tailed
customer satisfaction were supported (P- test) is equal 0.341, which is more than 0.05
value 0.00) which indicates that eWOM, (.00>.05). It means the null hypothesis (Ho)
trust, and customer satisfaction have failed to reject. Therefore, there is no
positive effect on loyalty. Thereby, H1 was statistically significant mean difference in
partially supported. All VIFs were lower expectation between Thai tourists and
than 5, meaning that there was no Chinese tourists with the condition of t
multicollinearity problem. (360.655) = -0.953, P-value = 0.341 at the
0.05 significant level.
Table 4: Regression Model Summary of
Hypothesis 2 Table 6: Independent sample test result of
Hypothesis 4

A multiple linear regression (MLR)

analysis was conducted to the research to
evaluate the predictors of attributes
(eWOM, loyalty and brand attitude). Table
4 indicate that eWOM, loyalty and brand Table 6 shows independent sample
attitude for 69.1% at 95% confidence level test was conducted to evaluate the
as shown by R square value of 0.691. Brand relationship between loyalty and nationality
attitude was not supported since P-values of respondents; Thai tourists and Chinese
were higher than 0.05. Hence, brand tourists. The independent variable is
attitude has no impact on purchase intention nationality of respondents; Thai tourists
on hotel industry. However, eWOM and and Chinese tourists. The dependent
loyalty were supported (P-value 0.000) variable is loyalty. The independent sample
which indicate that eWOM and loyalty T-test showed the significance (2-tailed
have positive effect on purchase intention. test) is equal 0.540, which is more than 0.05

40
(.00>.05). It means the null hypothesis (Ho) hotel want to improve their purchase
failed to reject. Then, there is no significant intention, eWOM is the priority that the
mean difference in expectation between manager must focus on followed by loyalty,
Thai tourists and Chinese tourists with the trust and customer satisfaction. For
condition of t (368) = 0.613, P-value = hypothesis three and four, the researcher
0.540 at the 0.05 significant level. found that there is no different between
Thai and Chinese customers on loyalty and
Conclusion, Limitation, and purchase intention in hotel industry in
Recommendations Bangkok. The results of this study are
supported by previous studies as referred in
the previous chapters that some variables
Discussion and Implications were linked as can be seen from the
The purposes of this research were proposed conceptual framework. The
to investigate factors influence purchase previous studied found that quantity and
intention on Thai and Chinese customers quality of eWOM have positive and direct
towards hotel industry in Bangkok. After effect on online repurchase intention. Some
the proposed hypotheses were tested, factors that customers will repurchase from
hypothesis one and two were rejected. an online store platform is perceived on
However, Hypothesis three and four were vendor’s eWOM and on perceived
not rejected. Thus, the result provided some usefulness. Trust and perceived usefulness
discussion and implications that are as on website influence electronic word-of-
follows: mouth characteristics on online repurchase
Based on the analysis of intention. Therefore, electronic word-of-
demographic factors from 400 respondents, mouth credibility, quality and quantity can
the majority groups of respondents are Thai affect online repurchase intention of
single female with 18-25 years old who are customer in the different patterns.
employee and had income between 20,001- Customer satisfaction is important factors
50,000 baht per month. From this that effect on customer loyalty. Loyalty
information, the results from hypothesis which develops to four phases is cognitive,
one to four implied mostly about this group affective, conative and action loyalties.
of respondents. Moreover, customer satisfaction show
According to the results of loyalty by repurchase product or services,
hypothesis one, three out of four attributes suggesting products or services to others,
(trust, customer satisfaction, eWOM and and being less price sensitive (Anderson,
reputation) were found to impact on Fornell, and Mazvancheryls, 2004).
loyalty. It means the null hypothesis was Customer loyalty is one precious factor of
partially rejected. It shows that eWOM, success company. Because loyal customers
trust, and customer satisfaction impact are economical to retain customer than new
customer loyalty. The standardized customer.
coefficients (Beta) shows that eWOM has
the impact towards customer loyalty at Beta Conclusions
= 0.557 followed by trust at Beta = 0.282, Although some group of consumers
customer satisfaction at Beta = 0.112 and seek for the new travel experiences which
reputation at Beta = 0.049. Thus, eWOM leads to the rise of consumption of unique
was the most effective and important factor experience (Antoni, José and Fabiana,
among trust, customer satisfaction, eWOM 2018), the number of tourists in Bangkok
and reputation towards loyalty. Moreover, are getting lesser in number as mentioned
eWOM and loyalty influence purchase in the previous chapter. This research was
intention as the result from hypothesis two conducted based on the previous studies to
in hotel industry in Bangkok. Therefore, if develop a model of factors that impact
41
purchase intention towards hotel industry. mean different between Thai and Chinese
The possible factors which lead to purchase customer on loyalty and purchase intention
intention were studied in this research in hotel industry in Bangkok, Thailand.
including, eWOM, trust, customer
satisfaction, reputation, brand attitude and Recommendations
loyalty. The findings of this study show that
The questionnaires were distributed eWOM, trust and customer satisfaction
in Bangkok from 10th June to 20th June affected loyalty. Ewom and loyalty
2019 to 400 respondents according to two impacted on purchase intention. This
main group of customers who were 200 implied that hotel industry in Bangkok
Thai customers, 200 Chinese customers. could increase the purchase intention such
The survey’s distribution of respondents as returning to the hotel by increasing the
were 204 females and 196 males. linked factors which are electronic word-
Moreover, that the highest percentage of of-mouth, trust, customer satisfaction and
respondents ’age was (130) of the group of loyalty. It has been confirmed to be valid in
respondents who age between 18-25 years previous studies that eWOM includes of the
old and other were (123) of the group of positive talk, online recommendations,
respondents who age between 26-30 years online reviews or online comment
old, (89) of the group of respondents who influence loyalty and purchase intention. It
age between 31-40 years old and (50) of the will be an important reference for a
group of respondents who age between 41- customer to build their purchase decision-
50 years old and more than 50 years old (8) making process. The findings of this
respectively. Furthermore, the largest research also support by previous studies
number of participants’ marital status group conducted by Park et at. (2007), which
is single’ which includes 292 respondents. studied that quality and quantity of reviews
The second largest group is Married (with on websites significantly and positive
children)’ which equals 58 prospects. Next influence purchase intention. Keh and Xie,
ones are Married (without children)’ and (2009) found that trust bring long-term
‘Other which includes 45 participants and 5 loyalty and increase the relationship
participants respectively. In addition, the between two parties. Trust comes before
largest number of participants’ income loyalty and it mediates the satisfaction–
group is ‘20,001 – 50,000 Baht per month’ loyalty relationship (Hart and Johnson
which includes 201 respondents. The 1999). Some sources show evidence that
second largest group is’ Under 20,000 Baht intention and spending to purchase is
per month’ which equals 106 prospects. increasing from Trust and loyalty of the
Next ones are’50,001-100,000 Baht a company (Pavlou, 2003). Purchasing from
month’ and ‘Over 100,001 Baht a month’ online platform cannot be completed
which includes 67 participants and 26 because of Lack of trust (Lee and Turban,
participants respectively. In addition, the 2001). However, Gefen and Straub (2004)
largest group of occupation’s respondents suggest trust can be nourished by
is ‘employee’ with 145 respondents. The interaction. It will lead purchase intention
smallest group is ‘others’ which includes 10 to customers in the way of transaction
respondents. intention or actual transactions.
The findings of the conceptual
model revealed that eWOM, trust and On the other hand, the findings also
customer satisfaction affected loyalty. indicated that there is no mean difference
eWOM and loyalty impacted on purchase according to nationality of customer for
intention as shown in the results of different perspectives towards hotel
hypothesis one and two. According to industry in Bangkok. Thai customer and
hypothesis three and four, there are no Chinese customer have no significant mean
42
difference between the two most important Anderson, E.W., Fornell, C, and
Thai tourist market in terms of loyalty and Mazvancheryls, S. (2004).
purchase intention. Results could probably Customer Satisfaction and
be generalized to Thai tourist markets. Shareholder Value. Journal of
Marketing, 68 (October), 172-185.
Further Study Anderson, E.W. and Sullivan, M.W.
This research lays on the solid (1993), “The antecedents and
theoretical fundamental, aims to achieve its consequences of customer
objectives based on the appropriate satisfaction for firms”, Marketing
identifies, and it is limited to conduct under Science, Vol. 12 No. 2, pp. 125-143.
the new integrated model. Hence, other Anderson, R.E. and Srinivasan, S.S. (2003),
models of purchase intention should be “E-satisfaction and e-loyalty: a
considered carrying on further studies. In contingency framework”,
fact, there are more variables that might Psychology and Marketing, Vol. 20
influence purchase intention and loyalty No. 2, pp. 123-38.
such as emotional experience, information Arun Thamizhvanan, M.J. Xavier, (2013)
quality, interactivity and entertainment "Determinants of customers' online
(Chaang-Iuan H., Pie-Chun L., 2015). purchase intention: an empirical
In addition, this study was study in India", Journal of Indian
conducted in the context of hotel industry Business Research, Vol. 5 Issue: 1,
in Bangkok, yet with the rapid growth and pp.17-32,https://
diversity of travel trend in other provinces doi.org/10.1108/175541913113033
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