DOI: 10.30519/ahtr.

799716
Advances in Hospitality and Tourism Research (AHTR) 2021
An International Journal of Akdeniz University Tourism Faculty Vol. 9 (1)
ISSN: 2147-9100 (Print), 2148-7316 (Online) 49-77
Webpage: http://www.ahtrjournal.org/

THE MEDIATING ROLE OF REAL-TIME INFORMATION

BETWEEN LOCATION-BASED USER-GENERATED CONTENT
AND TOURIST GIFT PURCHASE INTENTION

Mustafa R. KHAN 1
University Pendidikan Sultan Idris, Malaysia
ORCID: 0000-0002-0250-9092

Haseeb R. KHAN
University Pendidikan Sultan Idris, Malaysia
ORCID: 0000-0001-9454-6626

Maya VACHKOVA
Leeds Trinity University, United Kingdom
ORCID: 0000-0002-4135-1611

Arsalan M. GHOURI
University Pendidikan Sultan Idris, Malaysia
ORCID: 0000-0001-5419-8946

ABSTRACT
The global use of Web 2.0 applications has generated enormous
Article History
volumes of user content. Drawing on cognitive load theory, this
Received 24 September 2020
study examines unexplored factors that influence gift purchase
Revised 21 January 2021
intention of tourists. The authors identify localization and real- Accepted 28 January 2021
time information for shaping tourists' gift purchase intention, Available online 22 Feb. 2021
which is facilitated by reduced cognitive overload. Analyzes of the
study relies on a sample of 273 foreign tourists in Malaysia. A
cross-sectional quantitative study is conducted using partial least Keywords
square structural equation modeling. Results showed that Web 2.0
location-based user-generated content and real-time information user-generated content
significantly affect gift purchase intention of tourists. Moreover, location-based content
real-time information partially mediates the relationship between real-time information
location-based user-generated content and gift purchase intention. tourists’ gift purchase intention

1
Address correspondence to Mustafa R. Khan (Ph.D. Candidate), University Pendidikan Sultan Idris,
Malaysia. E-mail: [email protected]

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Khan et al.

INTRODUCTION

The accelerated development of digital technologies demands changes in

urban lifestyle, and a new management and production order that offers a
range of technological services to the ever-elusive customer. In the current
business environment, online platforms accelerate the accessibility of
information to customers (Lipsman et al., 2012). Consumer-generated
content exists as reviews, ratings, and opinions expressed via online
platforms. Such content engages customers through increased product
awareness, moreover, it is considered a valuable input for purchase
decisions (Batra & Keller, 2016; Ciftci et al., 2020). Correspondingly, the
digital marketing approach is shifting from business to consumer to peer-
to-peer model (Akçura & Altınkemer, 2002; Yılmaz, 2020). In this regard,
consumer content sharing provides an extensive understanding of the e-
mechanisms designed for spreading online information, which assists firms
to promote and expand their business via online platforms. Consumer-to-
consumer conversation embodied in reviews and opinions has become an
effective marketing practice to influence consumer purchase decisions (Lu
et al., 2014).

Nowadays, consumers rely on the internet to find information on

products and services. Moreover, consumers also share their feedbacks on
products and services through online platforms (Beneke et al., 2015; Kim &
Park, 2013). A recent survey reveals that 93% of consumers used the Internet
to find a local business (BrightLocal, 2020). The survey also reports that
consumers’ reliance on online reviews for local business has increased to
87% in 2020, from 81% in 2019, further, 73% of consumers seek latest
reviews for decision making (BrightLocal, 2020). In transmitting
information, electronic word of mouth (e-WOM) has a stronger impact than
conventional word of mouth, regardless of whether the information is a
positive or a negative statement about the product or service (Cheong et al.,
2020; Sutanto & Aprianingsih, 2016). Hence, businesses with positive
reviews and real-time information sharing would gain potential customers
searching online (BrightLocal, 2020). Therefore, user-generated content
sharing on online platforms emerged as an essential source of product
information (Colliander et al., 2015; Elwalda et al., 2016). Further, cloud
computing technology enables different computing infrastructures to
support information sharing with stakeholders, which could increase
customers’ interaction and enhance customer trust and purchase behavior
(Langmead & Nellore, 2018).

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 Advances in Hospitality and Tourism Research, 9 (1)

The tourism industry is continuously growing and expanding

(Werthner & Ricci, 2004). Similarly, Web 2.0 online social platforms where
consumers exchange their experiences of products and services are on the
rise (Batra & Keller, 2016; Ciftci et al., 2020). Location-based content and
real-time data sharing are among the most prominent tools used by the
tourism industry to entice customers (Berger et al., 2002; Xiang et al., 2015).
Malhotra (2005) claims that the right information to the right people at the
right time in real-time is required to improve performance. Thus, real-time
sharing of customer satisfaction with products or services influences other
customers’ purchase behavior. Further, cloud computing is considered as
an effective model to deliver internet services and provides many data-
centric network applications (Buyya et al., 2009; Wu et al., 2018).
Accordingly, online applications improve business performance with
enabling customers to share information (Cibere et al., 2020).

Online applications have twofold importance to business operations.

First, they allow customers to interact and share information, and second,
these applications grant the business access to its customers (Buyya et al.,
2009). Besides, location-based content provides information which
subjective to users’ profile and check-in location. The modern development
of location-based information searching is getting popular to map, improve,
and adhere to the processes (Margherita, 2014). Location-based searching
provides relevant information to tourists by taking current location into
account and offers location-based opportunities for souvenir shopping as
an important tourist activity to tourists who are enthusiastic about
shopping and gift purchasing (Jiang et al., 2015; Xu & McGehee, 2012).
Moreover, cloud-based social networks provide a platform where agents
with mutual interests can share social knowledge and information. The
integration of location elements transforms social networking as a geosocial
network in which geographic location service is used to feed location base
content (O’Hara et al., 2007). Accordingly, location-based content provides
information for travel planning which makes tourism more enjoyable (East
et al., 2017).

Advancement in internet technologies fulfills the information

required for the tourism industry and offers internet applications with
interactive user interfaces subjective to the location (García-Crespo et al.,
2011). Hence, these applications build a bridge between tourists and the
tourism industry by offering location-based information to facilitate
tourists’ purchase decisions. Kaplan and Haenlein (2010) highlight that
Web 2.0 applications allow the creation and exchange of user-generated
content, which transform word of mouth (WOM) into electronic word of

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Khan et al.

mouth (eWOM), and potentially spread content beyond traditional

audience to geographically dispersed networks (Lo et al., 2011).
Furthermore, tourists trust eWOMs (Ladhari & Michaud, 2015) and
frequently rely on user-generated content as an authentic source of
information (Gretzel, 2006). Additionally, a recent study reveals that 52% of
users on social networking sites admitted that online content inspires their
travel choices (Maria-Irina & Istudor, 2019). Real-time data sharing captures
and provides the latest information that can inform tourists in their
purchase decisions. Thus, user-generated content in real-time can influence
daily activities, and often guides tourists to perform efficient decisions
while traveling.

International tourism continues to grow and the UNWTO forecasts

a sustained increase in the future. International tourist arrivals are expected
to annually increase by 3.8% in Malaysia (World Tourism Organization,
2018). While tourism in Malaysia is on the rise, studies on specific topics
(e.g. location-based information, real-time information, and gift purchase
intention) remain limited. Extant studies investigate the role of user-
generated content on travelers’ behaviors (Tsiakali, 2018), planning (Cox et
al., 2009), and brand-related dimensions (Roma & Aloini, 2019). However,
there is a scarcity of studies on location-based user-generated content (Martí
et al., 2019). Furthermore, previous studies investigate tourist purchase
behavior by focusing on purchasing preferences (Azmi et al., 2019),
purchasing motives (Wang et al., 2010), spending patterns (Wang &
Davidson, 2010), and satisfactory purchase experience (Xu & McGehee,
2012). Still, a limited number of studies have evaluated gift purchase
decisions of tourists (Gao et al., 2017), despite it being a common practice
among tourists. Tourists tend to purchase gifts from the cultural and
popular destination of the host country (Li & Katsumata, 2020). For
instance, approximately 70% of tourists purchased gifts for their friends and
families during their travels (Litirell et al., 1994). Therefore, it is essential to
investigate the likelihood of gift purchasing intention of tourists. Moreover,
limited studies have explored location-based user-generated content (Bigne
et al., 2021; Lu et al., 2020) and real-time data sharing (Ghouri & Mani, 2019)
to improve the likelihood of gift purchase.

Leung et al. (2013) point out that since a growing number of travelers
have embraced online platforms as an effective medium for
communication, collaboration, and cooperation, it is assumed that
consumer-centered studies, which typically concentrate on both the use and
effect of user-generated content on online platforms, may have a positive
reception within the tourism industry. Considering the lack of theoretical

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 Advances in Hospitality and Tourism Research, 9 (1)

and empirical findings concerning the factors that influence tourists' gift
purchase intention by using online platforms, an integrated model was
designed to examine the impact of location-based user-generated content
on gift purchase intention of tourists. The model also exemplifies the
mediating role of real-time information on the relationship between
location-based user-generated content and gift purchase intention. This
study did not consider the selection of a product as a gift, but instead, we
aimed to investigate the role of location-based user-generated content and
real-time information to facilitate the gift purchasing process.

LITERATURE REVIEW

Recently, Web 2.0 and user-generated content has reshaped the way users
search, gather, develop, and interpret information. User-generated content
has become an important source of information for travelers in their
decision-making (Kaosiri et al., 2017; Ye et al., 2011). Goldenberg et al.,
(2001) suggested that user recommendations strongly influence the
decision-making process of other customers. Similarly, traveler-generated
content is perceived as more reliable, and authentic by other travelers than
the commercial information provided by firms (Gretzel & Yoo, 2008).

Since online platforms have contributed to increasing in user-

generated content development, users must take extra cognitive efforts to
find information suitable for their task and that extra efforts lead to inferior
task performance (Vessey, 1994). Cognitive load theory explains the
constraints on the working memory to interpret incoming data (Sweller,
1988, 2020). Recent studies have found that intrusive content has a negative
effect on users (Pfiffelmann et al., 2020; Wiese et al., 2020). When users
evaluate online content, analysis is interrupted by the increasing cognitive
demand that comes from the assessment task. Previous investigations have
found that multiple tasks have a detrimental effect on memory only if the
amount of cognitive load applied on content processing and the measuring
task surpass the cognitive ability of the user (Duff & Sar, 2015). Cognitive
load theory postulates that precision in online content reduces the cognitive
load of the users, thereby induce purchase decisions (Ghose & Ipeirotis,
2006). On the other hand, cognitive load theory suggests that precise
information (e.g. location-based and real-time information) reduces
information overload and improves online search performance (Hollender
et al., 2010; Wu & Xie, 2018).

Previous studies have employed various information processing

theories to understand the importance of user-generated content for

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tourism-related consumption. For instance, information processing theory

(Liu & Park, 2015), social information processing theory (Lim & Heide,
2015), the elaboration likelihood model (Shin et al., 2017), and the heuristic-
systematic model (Sparks et al., 2013) were all applied to gain insights on
the effect of user-generated content on tourism-related consumption. There
appears to be a lack of consensus on a single theoretical approach regarding
the most predictive power in examining purchase likelihood of tourists.
Cognitive load theory is dominantly used by researchers to explain the
importance of online content to reduce cognitive load and support purchase
decisions of tourists (Ghose & Ipeirotis, 2006; Wu & Xie, 2018; Ye et al.,
2011). Cognitive load theory focuses on problem-solving in complex
conditions (Sweller, 1988) and is rooted in the idea that the working
capacity of individuals is limited.

Specifically, cognitive load theory implies that when interpreting

new information, working memory has severe capacity and duration
limitations (Sweller, 1988). Excessive information hinders the linking of
information contained in memory. Information is therefore perceived to be
a new input, causing more cognitive resources to be reconciled and limited
cognitive capacity. On the other hand, precise information easily connects
to working memory. When dealing with stored information, there are no
cognitive limits on working memory (Sweller, 2020). Therefore, information
processing is promoted under precise and relevant information.

Bigne et al., (2021) adopt cognitive load theory to determine the

effectiveness of user-generated content on location-based online platforms
i.e. TripAdvisor. Users exposed to online content rely on less effortful, more
heuristic, and context-based processing strategies (Bigne et al., 2021). People
optimize their capacity to make decisions by avoiding cognitive overload
from information sources. Thus, individuals utilize limited and selected
information to solve a problem or accomplish a task (Dan & Reiner, 2017;
Sweller, 1988). User-generated content stands out with its reliability among
potential consumers. Specifically, the majority of tourists, who searching
online for information, are goal-oriented (Park & Ryu, 2019). Location-
based content and real-time information reduce information overload and
improve online search performance (Hollender et al., 2010; Wu & Xie, 2018).
Relying on key on cognitive load theory, we argue that the location-based
user-generated content (Bigne et al., 2021; Lu et al., 2020) and real-time
information (Ghouri & Mani, 2019) could reduce complex and excessive
content to enhance the likelihood of tourists’ gift purchase (Kavoura et al.,
2020; Lu et al., 2020). Hence, when making consumption choices, people are
likely to focus on the limited information streams coming from eWOM and

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more likely to avoid overload of online information, as irrelevant and

excessive information could interrupt users' purchase decisions (Li & Ryan,
2018; Lu et al., 2020). Hence, cognitive load theory provides a theoretical
foundation for our study by suggesting that user-generated content and
real-time information can facilitate gift purchase intention of tourists.

Location-Based User-Generated Content and Gift Purchase Intention

Web 2.0 applications have contributed to increased user-generated content

development and location-based information has become readily popular.
Online platforms, one of the features of Web 2.0 technologies, affect and
stimulate social change (Sui & Goodchild, 2011). Location-based user-
generated content provides local information, which supports planning
routines and destination activities (Si et al., 2017; Väätäjä et al., 2013).
Location-based user-generated content produces user-generated geospatial
data which provides the opportunity for understanding users' interests,
opinions, and experiences (Fischer, 2012; Monteiro et al., 2014; Vaittinen &
McGookin, 2018). It has been established that online platforms where users
generate content in form of reviews, comments, and recommendations have
an enormous influence on tourists' planning, traveling, and purchasing
decisions (Gretzel et al., 2011). The Internet is instrumental to learning about
the nature of destinations and to planning future travel (Gretzel et al., 2011;
Xiang & Gretzel, 2010). Internet users trust information provided by fellow
users to evaluate products and to make a purchase decision (Lu et al., 2014).

Earlier studies have focused on souvenir purchases, shopping styles,

and preferences of tourists (Azmi et al., 2019), though limited attention is
paid to gift purchase intention. Gift purchasing accounts for a significant
portion of tourism shopping (Anuar et al., 2017). Tourists prefer souvenirs
with cultural elements such as examples of local workmanship (Li & Cai,
2008). The most sought after souvenirs are those that represent the cultural
heritage of a given destination, alongside having an overall good quality
(Wilkins, 2011). User content also provides information related to culture
and tourism destinations, one can acquire knowledge about culture and
various geographic features (Mkono & Tribe, 2016). Furthermore, multi-
dimensional searching is a usual practice involved in gift purchase
(Cleveland et al., 2003).

Cox et al. (2009) limit the usage of user-generated content to finding

hotel reservations and destination selection. However, it is widely accepted
that travelers consult online content to avoid or minimize the risk of wrong
decisions (Gretzel et al., 2011; Xiang & Gretzel, 2010). According to Lu et al.

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(2018), user-generated content often shares destination-based experiences

for tourists regarding their accommodation, food, interesting spots,
interaction with locals, their souvenir purchases, and how they handle an
emergency. Additionally, location-based networks like TripAdvisor are
highly influential in decision-making as travelers access users’ content that
plays a key role in their travel plans (Bigne et al., 2021; Lee et al., 2011).

Therefore, user-generated content significantly influences the choice

and expectation of tourists, whereas the satisfaction level of a purchase
decision is indirectly linked with the sources of content (Kaosiri et al., 2017).
Additionally, Tsiakali (2018) highlights the significant effect of user-
generated content on travelers’ purchase decisions. Moreover, Kavoura et
al. (2020) assert that consumers rely on online content for gift purchases.
Vaittinen and McGookin (2018) also report on the positive influence of
online content on users’ purchase decisions, however, Lu et al. (2020) warn
that complex and excessive content could interrupt users' purchase
decisions. Considering all this, we propose that precise location-based user-
generated content is important for obtaining information related to a
tourism destination, which influences the gift purchase intention of tourists.
Thus, we deduce the following hypothesis:

H1: Location-based user-generated content positively influences the gift purchase

intention of tourists.

Location-Based User-Generated Content and Real-Time Information

Online content is usually categorized by location, interactivity, real-time

updates, and integration with websites and computing devices (Kim et al.,
2014). The concept of real-time data sharing through user-generated content
is integrated to capture the latest content uploaded to the Internet in real-
time (Roma & Aloini, 2019). Hence, real-time information provides direct
and timely dissemination of information, such as up-to-date information
regarding travelers’ reviews, opinions, and experiences (Buhalis &
Amaranggana, 2014; Yilmaz, 2018). Online platforms allow users to create
and share content about their experiences and opinions (Presi et al., 2016;
So et al., 2018). Due to the wide range of online networks, tourists
increasingly use different online applications for information searches
(BrightLocal, 2020; Li et al., 2017; Ma et al., 2017; Shankar et al., 2016), and
majority of users seek out the latest reviews for decision making
(BrightLocal, 2020). Tourists also share real-time experiences on different
online platforms via posting pictures, videos, and reviews about purchase
experiences (Shankar et al., 2016). For instance, Coca-Cola launched a

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 Advances in Hospitality and Tourism Research, 9 (1)

successful campaign “Share a Coke” to encourage consumers to create a

post during their purchase (Tarver, 2019). In this way, consumers’ purchase
experiences transform into more social experiences (Wang & Zhang, 2012).
By sharing purchase experience publicly, users build their identity on
online networks (So et al., 2018), and influence purchase decisions of other
users (Huang & Benyoucef, 2013; Shankar et al., 2016). Additionally,
monitoring of online content about shopping experience provides
marketers with the opportunity to obtain information related to occasions,
frequency, and timing of purchases. On the other hand, marketers can
utilize this information in designing marketing strategies to improve both
offerings and customer purchase experience (Shankar et al., 2016). Further,
real-time information improves understanding of travelers’ behavior (Li et
al., 2018) and such insights are essential in ensuring strategic policy
decisions (Li et al., 2008).

Moreover, online platforms provide unprecedented opportunities

for users to quickly and immediately upload and share content (Kaplan,
2012), and other users actively seek that information for their decision-
making (Li et al., 2017). Subsequently, tourists have been seeking more
sightseeing information, which means that any information that is
generated and displayed digitally would need to be most recent (Kudo et
al., 2019), location-based, real-time, and contextual information, hence, fully
utilize intelligent technology and social innovation (Feng et al., 2019). Thus,
we propose the following hypothesis:

H2: Location-based user-generated content is positively linked with real-time data

sharing.

Real-Time Information and Gift Purchase Intention

The concept of real-time information has been in the limelight due to its
ability to improve competitiveness (Reid, 2014), however, the recent
emergence of dynamic user-provider interaction enables performance
effectiveness and efficiency by dynamically engaging and performing
timely actions based on real-time information (Buhalis & Sinarta, 2019).
Online platforms provide a medium for communication and thus they can
be critical to attracting new customers, as well as reinforcing existing
relationships between businesses and customers (Özdemir & Çelebi, 2017;
Steward et al., 2018; Yılmaz, 2020). Online platforms enable the
maintenance of customers’ communication records, which potentially
influences other users (Ahsan & Rahman, 2016). Technological
advancement provides an opportunity to obtain real-time information of

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travelers (Yin & Li, 2021). Prior studies on computer supported cooperative
work and human-computer interaction have investigated how user-
generated content engages viewers and identified the significance of data
sharing in real-time, including experiences (Piccoli, 2016), knowledge
sharing (Majchrzak et al., 2013), opinions (Tsiakali, 2018), cultural museums
(Özdemir & Çelebi, 2017) and heritage (Garau, 2014). Moreover,
information sharing has been considered as an important factor for
improving customers’ purchase behaviors (Kim & Ko, 2012; Lee & Whang,
2000; Mahmassani & Jayakrishnan, 1991) and real-time interaction with
customers significantly improve the motivational affordance of networks
(Jung et al., 2010).

The success of information systems depends on information quality,

usage, impact, and user satisfaction (DeLone & McLean, 1992). Considering
this, information systems and human-computer interaction are essential
factors required for a successful web portal. Subsequently, information
search is an important tool used in purchase decisions (Peter et al., 1999),
and trust has been considered as an antecedent of purchase decisions (Yoon,
2002). During domestic and international travel, purchasing souvenirs
whether to serve as gifts or as personal memorabilia, is one of the prominent
activities of travelers of different backgrounds (Murphy et al., 2010).
Moreover, bringing home souvenirs makes a trip tangible for those who
receive the souvenirs as gifts or for tourists themselves by expanding their
consumption of the travel experience (Gordon, 1986; Li & Katsumata, 2020).

Subsequently, tourists rely on real-time data sharing because of its

perceived transparent nature. Hence, real-time information facilitates
tourists in decision-making for a specific destination (Lu et al., 2018).
Moreover, customers prefer real-time information for decision-making
(Mahmassani & Jayakrishnan, 1991). Fulkerson and Shank (2000) also
provide evidence that real-time data sharing can enhance purchase
intention. Real-time connections reveal customer preferences and behaviors
and the shared behavioral response of customers significantly influences
purchase behavior (Fawcett et al., 2007). Real-time information sharing is
logically valuable for decision-making, as it provides travelers with recent
information and improves decision-making efficiency (Dziekan &
Vermeulen, 2006; Han et al., 2020). We extend this stream of research by
linking real-time information sharing and gift purchase intention. Further,
a mediating role of real-time information between location-based user-
generated content and gift purchase intention may reduce excessive and
irreverent content that improves users' information acquisition processes

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(Lu et al., 2020) and facilitates purchasing of souvenirs as gifts (Li & Ryan,
2018). Thus, we hypothesize:

H3: Real-time information positively relates to the gift purchase intention of

tourists.
H4: Real-time information mediates the effect of user-generated content on the gift
purchase intention of tourists.

Hinging upon cognitive load theory, this research presents a model

to demonstrate the direct impact of location-based user-generated content
on gift purchase intention of tourists and also, depicts indirect effect
through real-time information, shown in Figure 1.

Real-time
information H3

H2 H4
Location-based Gift purchase
user-generated intention
content H1

Figure 1. Research Framework

METHODOLOGY

Sample

This study benefits from engaging international tourists visiting Penang

Island which coincidentally is among the most popular islands in Malaysia.
For instance, only during 2019, a total of 4.16 million foreign tourists visited
Penang Island (Chern et al., 2020). We applied a simple random sampling
technique to select respondents. Furthermore, we collected data during the
peak season of foreign tourists to ensure sample availability. We targeted
foreign tourists regardless of their country of origin, they all seek
information about their travel destination through the Internet.
Furthermore, we ensured that our respondents were adults (over 18 years
of age), that they have visited other destinations in the past, and that they
had knowledge and experience of using online platforms for information
search. A detailed summary of the characteristics of our respondents is
shown in Table 1.

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Khan et al.

Further, Gefen et al. (2011) a priori F-test was performed using

G*Power v.3.1.9.2 (Faul et al., 2007) to determine the minimum sample size,
i.e. 176 respondents, required for empirically validating the proposed
model. The data was collected between July and August 2019 by visiting
Ferringhi Beach, Penang Hill, Historical Streets of George Town, and
Penang Botanic Gardens. Foreign tourists were contacted randomly, they
were introduced to the objectives of the study and were asked whether they
were willing to participate in the survey. Upon their consent, self-
administered questionnaires were handed over to 400 respondents, a
procedure that decreases the likelihood of research bias. The response rate
was 68.25% which amounted to 273 questionnaire responses.

Table 1. Foreign Tourists’ Characteristics

Demographic Frequency Percentage %
Characteristics
Gender
Male 172 63%
Female 101 37%
Age
18-25 113 41.4%
26-30 74 27.1%
31-35 42 15.4%
36-40 18 6.6%
41-45 16 5.9%
46-50 5 1.8%
> 51 5 1.8%
Level of Education
School 43 15.8%
Bachelor 166 60.8%
Master 60 22%
PhD 4 1.5%
Use of the Internet for
Information Access
About Destinations
Always 148 54.2%
Very Frequently 77 28.3%
Occasionally 46 16.8%
Rarely 2 0.7%
Stay in Penang
< 2 Night 23 8.4%
2-3 Nights 167 61.2%
4-5 Nights 55 20.1%
> 5 Nights 28 10.3%

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Assessment of Measurement Model

We used the scale developed by Feng et al. (2016) to measure location-based

user-generated content. Location-based content identifies users’
geographical position and increases the relevance of content to other users.
The scale consists of three items, which are related to the precise value of
location-based information to users. The gift purchase intention construct
was measured by using the scale developed by Putrevu and Lord (1994)
and Taylor and Baker (1994). The scale consists of five items including a
reverse question that investigates gift purchase intention of foreign tourists
with a stronger agreement with each item. In a recent study, Lu et al. (2014)
revalidated the measurement scale for purchase intention in the context of
online users. Real-time information sharing is a construct adopted from
Ghouri and Mani (2019) and it consists of three items. Respondents were
asked about the advantage, usefulness, and significance of real-time
information. The questionnaire was based on a five-point Likert scale from
1 = strongly disagree to 5 = strongly agree. The analytical results of
measurement model obtained for validity and reliability of each construct
fulfill the recommended criteria for all factors, AVE is > 0.50, the value of
Jöreskog's rho (ρc) and Cronbach’s alpha (α) are > 0.70 (Hair et al., 2019;
Henseler et al., 2015) reflecting internal consistency and reliability, results
shown in Table 2.

Table 2. Results of Measurement Model

Codin
Construct Source Item Loading VIF ρc α AVE
g
I would consider buying the
GPI1 0.843 2.686
user recommended gift.
Lu et al.
I have no intention to buy the
(2014); GPI2 0.857 2.774
user recommended gift.
Putrevu
Gift It is possible that I would buy
and Lord GPI3 0.838 2.785
Purchase users’ recommended gifts. 0.876 0.874 0.665
(1994);
Intention I will purchase the user
Taylor and
recommended gift also in next GPI4 0.783 1.767
Baker
trip.
(1994)
If I am in need, I would buy
GPI5 0.752 2.092
the user recommended gift.
Location-based user-
generated content provides
valuable information, with the LBC1 0.847 2.061
help of which I get what I need
Location- in a certain situation.
based User- Feng et al. I would view user-generated
generated (2016) content related to me being in LBC2 0.902 2.407 0.804 0.801 0.717
Content a specific location as useful.
Location-based user-
generated content can provide
additional information-based LBC3 0.787 1.463
on real-time location more
quickly and accurately.

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Real-time information sharing

RTI1 0.848 1.854
has many advantages.
Real-time information sharing
Real-time Ghouri and is useful for increasing RTI2 0.835 1.766
0.824 0.824 0.740
Information Mani (2019) efficiency.
Overall, I consider real-time
information to be a useful RTI3 0.897 2.419
option for achieving my goals.

To determine non-response bias, independent t-tests method was

performed by comparing the first and the last 25 responses for all constructs
(Armstrong & Overton, 1977; Ghouri & Mani, 2019). The results showed an
insignificant difference between the early 25 and late 25 responses, which
reveals non-response bias. Besides, a common method bias test was
conducted by using the collinearity approach (Kock, 2017; Podsakoff et al.,
2003). The results revealed a satisfactory value for the variance inflation
factor (VIF) < 3. Thus, we established that there is no common method bias
problem. Finally, all variables of the model were tested for discriminant
validity. We examine discriminant validity using “Heterotrait-Monotrait”
criterion (HTMT), shown in Table 3. The results revealed that the HTMT
value is smaller than 0.90, which fulfills the required criteria (Henseler et
al., 2015). Thus, the model revealed satisfactory results for discriminant
validity.

Table 3. Heterotrait-Monotrait Criterion

Construct GPI LBC RIT
Gift Purchase Intention (GPI)
as
Location-based User-generated Content (LBC) 0.738
Real-time Information (RIT) 0.678 0.611

Assessment of Structural Model

We employed the SmartPLS version 3.3.2 to examine the Structural

Equation Modelling (SEM) technique using the Partial Least Squares (PLS)
algorithm. The standardized root means squared residual (SRMR) and the
normed fit index (NFI) were used for goodness of fit (Henseler et al., 2016).
The SRMR value 0.070 was successfully obtained by the model, which
fulfills a certain threshold value of < 0.08. Further, the NFI value 0.917 was
obtained for the model, which fulfills the required threshold criteria > 0.90
(Henseler et al., 2016), hence empirical data perfectly fit the model. Further,
the variance inflation factor (VIF) was calculated for all paths. The obtained
VIF values for all paths were below the threshold criteria of 5, thus, found
no indication of multicollinearity (Hair et al., 2019). The coefficient of

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determination (R2) has demonstrated moderate explanatory power of the

model, obtained R2 value 0.479 reveals that 47.9 percent of the variance in
gift purchase intention is explained by the model. The value of Stone-
Geisser’s Q2 is obtained through the blindfolding procedure for the model.
The obtained value 0.311 demonstrates that the model consists of predictive
relevance as it is higher than 0 (Geisser, 1974; Stone, 1974).

Table 4 demonstrates the results of the structural model. Results

reveal the existence of significant positive relationship between location-
based user-generated content and gift purchase intention where β = 0.440,
t-value = 6.981, p-value = 0.000 and f2 = 0.280, which is in support of H1.
Additionally, finding reports that location-based user-generated content
have significant positive relation with real-time information where β =
0.497, t-value = 8.942, p-value = 0.000 and f2 = 0.329 and real-time information
also have significant positive relation with gift purchase intention, where β
= 0.358, t-value = 5.409, and p-value = 0.000 and f2 = 0.185, supporting H2
and H3 respectively. Figure 2 demonstrates the final model and visual
summary of results for hypothesis testing.

Table 4. Structural Model

CI (5%,
Effect 𝛃 SE t-value p-value f2 VIF R2 Q2 SRMR NFI
95%)
LBC -> GPI 0.440 (0.336, 0.063 6.981 0.000 0.280 1.329 0.479 0.311 0.070 0.917
0.539)
LBC-> RTI 0.497 (0.404, 0.056 8.942 0.000 0.329 1.000 0.247 0.178
0.587)
RTI -> GPI 0.358 (0.252, 0.066 5.409 0.000 0.185 1.329
0.473)

Figure 2. Results of Research Model

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Mediation Analysis

This study applied Nitzl et al.’s (2016) analytical approach in conducting

mediation analysis. Results of mediation analysis revealed that the values
of 95% bias-corrected confidence interval (BCCI) did not straddle a 0 in
between, which indicates the existence of mediating effect of real-time
information, shown in Table 5. Further, to determine the degree of
mediation i.e. partial or full, the variance accounted for (VAF) index was
used to examine the size of the indirect effect (LBC -> RTI -> GPI) related to
the total effect (LBC -> GPI). The results reveal the existence of partial
mediation, as the resulting VAF value of 28.8 percent fall within the range
of 20-80 percent, which supported H4. Hence, the finding concludes that
real-time information partially mediates the relationship between location-
based user-generated content and gift purchase intention.

Table 5. Mediation Analysis

Total t- BCCI (5 Indirect t- BCCI (5 %,
𝛃 𝛃 VAF
Effect value %, 95% ) Effect value 95% )
(0.534, LBC -> RTI-
LBC -> GPI 0.618* 13.674 0.178* 4.755 (0.126, 0.245) 28.8%
0.681) > GPI
*Significant at p ≤ 0.001

DISCUSSION

It is widely accepted that tourists rely on online content as an important

source of information (Kaosiri et al., 2017; Ye et al., 2011). Mkono and Tribe
(2016) affirm that user-generated content provides information related to
culture and features of a given tourism destination. The authors also argue
that user-generated content can also popularise locations and tourist
memorabilia such as souvenirs of specific locations (Bigne et al., 2021; Lu et
al., 2018), which in turn leads to influence gift purchase intention of other
tourists (Kavoura et al., 2020; Li & Katsumata, 2020; Tsiakali, 2018).

The results of this study reveal that location-based user-generated

content has a significant relationship with gift purchase intention among
tourists. In line with cognitive load theory, location-based user-generated
content reduce effort of tourists searching online information (BrightLocal,
2020; Li et al., 2017; Ma et al., 2017; Shankar et al., 2016) by providing
context-based information (Bigne et al., 2021). Hence, location-based user-
generated content reduces the cognitive load of tourists by providing
valuable suggestions, thereby influencing gift purchase intention of tourists
(Ghose & Ipeirotis, 2006; Wu & Xie, 2018). These results seem logical and

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come in line with related studies (Kaosiri et al., 2017; Lee et al., 2011;
Tsiakali, 2018) which affirm that user-generated content significantly
influences choices, expectations, and purchases of tourists in different
tourism destinations. This justifies why travelers initiate planning by online
information searches that predate making any decisions (Gretzel et al., 2011;
Xiang & Gretzel, 2010). During the data collection process, we observed that
the majority of tourists about 82.5% frequently use the Internet for
information access about destinations, which is similar to a local consumer
review survey that reveals 93% of consumers used the internet to find a
local business (BrightLocal, 2020). Additionally, results support that
consumers paid attention to online content for gift purchase decisions
(Kavoura et al., 2020). Results also support researchers who point out
tourists’ involvement in multi-dimensional information searching related
to product overall quality, destination representation ability, workmanship,
and cultural expression for gift purchasing (Cleveland et al., 2003; Li & Cai,
2008).

We report a positive relationship between location-based user-

generated content and real-time information. The results show that
location-based user-generated content and real-time information not only
improve tourists’ goal-oriented search performance but also reduce
information search time and cognitive effort (Hollender et al., 2010; Park &
Ryu, 2019; Wu & Xie, 2018). When tourists are browsing online for
information, location-based user-generated content restricts excessive and
irrelevant information and real-time information provides latest and
updated search outcomes. Additionally, tourists have been seeking more
sightseeing information, which means that any information that is
generated and displayed digitally would need to be recent (Kudo et al.,
2019). On the other hand, the outcome and process of users’ information
searches can be negatively affected by irrelevant information. Therefore,
providing relevant information is crucial to reduce cognitive overload in
online environments by utilizing intelligent technology and social
innovation (Feng et al., 2019).

The present study also found a positive relationship between real-

time information and gift purchase intention. The recent emergence of
dynamic user-provider interaction enables performance effectiveness and
efficiency by dynamically engaging and performing timely actions based
on real-time information (Buhalis & Sinarta, 2019). Technological
advancement provides an opportunity to obtain real-time information of
travelers (Yin & Li, 2021) to facilitate users with the latest information across
online platforms for gift purchase decisions (Kavoura et al., 2020).

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Therefore, business managers should engage and encourage customers for

positive e-WOM about products and services (Cheong et al., 2020; Sutanto
& Aprianingsih, 2016) to improve business positive reviews and real-time
information sharing would engage potential customers searching online
(BrightLocal, 2020).

Further, the results reveal the significance of real-time information

in mediating the relationship between location-based user-generated
content and the gift purchase intention of tourists. Real-time information
sharing is logically valuable for decision-making, as it provides travelers
with recent information and improves decision-making efficiency (Dziekan
& Vermeulen, 2006; Han et al., 2020). It has been established that tourists
search for online information with a task-directed purpose (Park & Ryu,
2019). Real-time information improves information reception (Lu et al.,
2020) by providing up-to-date content (Berger et al., 2002). Hence, real-time
information as a mediator reduces excessive content, which in turn
improves users’ information acquisition processes (Lu et al., 2020) and
online search performance (Hollender et al., 2010; Wu & Xie, 2018) thereby
facilitating the decision-making process behind gift purchasing (Kavoura et
al., 2020; Li & Ryan 2018). In support of our study, a local consumer review
survey also highlighted that 73% of users seek latest and real-time
information for decision making (BrightLocal, 2020). Whereas, intrusive
content negatively affects users (Pfiffelmann et al., 2020; Wiese et al., 2020).
Based on cognitive load theory, the study provides evidence that real-time
information reduces information overload by providing updated and latest
location-based content could significantly influence gift purchase intention
of tourists (Dan & Reiner, 2017; Hollender et al., 2010; Wu & Xie, 2018).
These findings are in line with previous studies, which highlight the
significance of precise content for tourist decision-making in terms of
sightseeing information and general itinerary planning (Feng et al., 2019;
Kudo et al., 2019; Roma & Aloini, 2019). A similar has been confirmed by
researchers, who asserted that travelers need information in real-time to
enhance purchase decision efficiency (Dziekan & Vermeulen, 2006;
Fulkerson & Shank, 2000).

Therefore, our study contributes to the literature by advancing

knowledge about the significance of location-based content and providing
evidence of real-time information to facilitate tourists at different travel
destinations in the novel context of the gift purchase decision.

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Theoretical Implications

This research aims to address the lack of knowledge on the influence of

location-based and real-time content on gift purchase intention of tourists.
The nature of gift purchasing makes it difficult for tourists to evaluate and
purchase gifts with cultural expression or representation of destination (Li
& Cai, 2008; Wilkins, 2011). First, the study contributes to knowledge
development in tourism by revealing location-based user-generated
content as an antecedent of gift purchase intention of tourists. Second, the
study opens new avenues for research on this promising topic, especially
the application of real-time information to the field of tourism destinations.
Previous studies (Feng et al., 2019; Lee et al., 2011; Lu et al., 2014) have
examined location-based content, however, no study has attempted to
examine the relationship between location-based user-generated content
with gift purchase intention of tourists.

Tourists rely on real-time information for making their consumption

decisions while abroad (Lu et al., 2018). Previous studies (Kudo et al., 2019;
Roma & Aloini, 2019) have examined real-time information however no
study has attempted to examine mediation of real-time information
between location-based user-generated content and gift purchase intention
of tourists.

Hence, our study addresses the lack of knowledge in this area and
demonstrates that location-based user-generated content is positively
linked with real-time information and significantly influences gift purchase
intention of tourists. Perhaps more importantly, real-time information can
function to reduce information overload and improve online search
performance (Hollender et al., 2010; Wu & Xie, 2018). Therefore, the
integration of real-time information in user-generated content provides
tourists with the benefit of the latest content shared on the Internet. This in
turn reduces cognitive load and improves the efficiency of tourist gift
purchase decisions.

Managerial Implications

Currently, the tourism industry is experiencing dramatic growth and

destination managers are motivated to better engage potential tourists. In
this regard, our findings provide important managerial implications.
Tourists prefer gifts that exemplify local culture and represent their travel
destination (Gordon, 1986; Li & Katsumata, 2020). Thus, an innovative
marketing approach is required for these products to reach tourists.

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Khan et al.

Developments in digital technologies have presented new and advanced

means of marketing to business managers (Yılmaz, 2020). The emergence of
Web 2.0 and online platforms influence the intention of tourists and impact
marketing models that organizations should transform to expand their
business. In presence of intelligent technology and social innovation (Feng
et al., 2019), users paid attention to online content for gift purchase decisions
(Kavoura et al., 2020) and majority of users seek latest reviews for decision
making (BrightLocal, 2020). Hence, managers could benefit from the insight
that the gift purchase decisions of many tourists will be strongly influenced
by online information. This study reports that user-generated content has a
significant impact on the gift purchase intention of tourists, while positive
content has the potential to boost sales. This implies that cultural and
destination products providers should deliver more resources to improve
the valence of their consumer reviews. Further useful strategies would be
to stimulate positive content sharing about product/service (Cheong et al.,
2020; Sutanto & Aprianingsih, 2016) through customer engaging campaigns
such as “Share a Coke” launched by Coca Cola (Tarver, 2019) and provide
incentives to encourage consumers to create a post during their purchase.
Such campaigns that urge consumers to share real-time information are
likely to raise awareness and to increase the sales of cultural workmanship
products.

It has been established that tourists share their experiences via

different online platforms by way of posting pictures, videos, and reviews
about purchases (Buhalis & Sinarta, 2019; Shankar et al., 2016). On the other
hand, these online platforms become an important source for international
travelers who seek advice, which ultimately influences their gift purchase
intention (Kavoura et al., 2020; Park & Ryu, 2019). Online content can pass
a strong sense of destinations interesting features to travelers, and, more
importantly, contain valuable cultural experiences. User generated content
could, therefore, help managers to improve and expand their business.
Further, several mediums of online communication are available, such as
websites, blogs, information databases, online forums, and virtual
communities, which could all be effective ways for customer relationship
management. Hence, online platforms serve as a major communication
channel between business and consumers, practitioners should set up an
effective strategy to make available destination information more quickly
and accurately, thereby, avail an opportunity to feed travelers’ destination
information, which result in additional future businesses. Thus, this study
provides support to the tourism industry and local businesses to adopt
location-based agile online marketing approaches for creating real-time

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value and mechanisms to establish dynamic engagement with customers to

gain tourists search online for gift purchasing (BrightLocal, 2020; Kavoura
et al., 2020; Park & Ryu, 2019).

CONCLUSION

The present study provides important insights into the underlying

mechanisms through which location-specific user content impacts gift
purchase intentions of other consumers. We offer empirical evidence of the
predicting role user-generated content plays in gift purchasing.
Furthermore, this study proposes a model exemplifying tourists’ gift
purchase intentions and the importance of online information
contextualized by location, authorship of other users as well as time. We
conclude that location-based user-generated content is an antecedent of
tourists’ gift purchase intention. Moreover, the sharing of real-time
information mediates the relationship between location-based user-
generated content and tourists’ gift purchase intention. In light of the
scarcity of empirical studies on location-based user-generated content
(Martí et al., 2019) and gift purchasing of tourists (Gao et al., 2017), current
study advances the literature on tourist consumption, online customer
engagement, and electronic word of mouth. Thus, we hope that this work
will inspire future inquiries in these inter-related fields of scholarship.

Limitations and Future Research Directions

Despite its important theoretical and managerial contributions, this study

has several limitations that may offer opportunities for future research.
First, survey respondents were foreign tourists visiting Penang Island,
Malaysia. Though respondents were online platform users, the findings
would be more precise if respondents from several states will include in the
sample. Second, this study does not consider variances in respondent
backgrounds. Digital technology is becoming a worldwide phenomenon;
thus, a cross-cultural study of tourist responses to location-based online
content could be a promising new research direction. Third, this study does
not account for any specific online platform. Future research should
incorporate the role of online platforms (e.g. social media, SaaS, Web 2.0) to
provide a comprehensive understanding of tourists’ gift purchase intention.
Fourth, future studies may use other variables such as tourists’ attitudes,
trust, and motivation with our research framework to provide new research
insight.

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