An empirical study on the influence of economy hotel website quality on online booking intentions

International Journal of Hospitality Management 63 (2017) 1–10

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An empirical study on the influence of economy hotel website quality on online booking intentions夽 Li Li a , Maojuan Peng a , Nan Jiang b,∗ , Rob Law b a b

School of Tourism and Hospitality Management, South China University of Technology, Guangzhou, China School of Hotel and Tourism Management, Hong Kong Polytechnic University, Hong Kong

a r t i c l e

i n f o

Article history: Received 27 April 2016 Received in revised form 12 January 2017 Accepted 13 January 2017 Keywords: Economy hotel Website quality eTrust Online booking intentions

a b s t r a c t This study investigates the potential theoretical relationships among economy hotel website quality, eTrust, and online booking intentions in China. A questionnaire survey was performed, and 298 samples were collected from the users of three economy hotel websites (7 days, Home Inns, and Hanting Hotel) in Guangzhou, China. Results of a detailed data analysis demonstrate the influence of the four dimensions of economy hotel website quality (usability, ease of use, entertainment, and complementarity) on eTrust and online booking intentions. Specifically, (1) the usability, entertainment, and complementarity of economy hotel websites significantly positively affected eTrust; on the contrary, the influence of ease of use on eTrust was insignificant; (2) complementarity showed a more positive influence than the three other attributes on online booking intentions; and (3) eTrust significantly positively influenced online booking intentions. These findings contribute to economy hotel online marketing in China by bridging the gap between the exploration of hotel website quality and its influence on online booking intentions. © 2017 Elsevier Ltd. All rights reserved.

1. Introduction The reservation behavior of hotel consumers in China is gradually changing along with the increasing popularity of the Internet and the low threshold and ease of use of network technologies. An increasing number of Chinese consumers are more inclined to book their rooms online than on-site or over the phone. According to “China’s Online Travel Market Trend Prediction, 2014–2017” published by EnfoDesk in 2015, the online travel market deals in China will steadily grow and reach 352.4 billion by 2015; this figure is 25.9% larger than that in 2014. By 2017, the market size is estimated to reach 498.3 billion. These figures indicate the bright future of the online travel market in China. Economy hotels are a new sector of the hotel industry in China that has developed rapidly since 2000 (Shen et al., 2014). However, the economy hotel industry in China currently faces several

夽 Li Li and Maojuan Peng are affiliated with the School of Tourism and Hospitality Management of South China University of Technology, Guangzhou, China, where Li Li is a Professor, and Maojuan Peng is a postgraduate. Nan Jiang and Rob Law are affiliated with the School of Hotel and Tourism Management of the Hong Kong Polytechnic University, where Nan Jiang is a doctoral student and Rob Law is a Professor. ∗ Corresponding author. E-mail addresses: [email protected] (L. Li), [email protected] (M. Peng), [email protected] (N. Jiang), [email protected] (R. Law). http://dx.doi.org/10.1016/j.ijhm.2017.01.001 0278-4319/© 2017 Elsevier Ltd. All rights reserved.

challenges. Given the delays in the construction of hotel websites, the economy hotel industry heavily relies on online travel agencies (OTAs), such as Ctrip and Elong. The hotel during the preliminary stage requires network intermediaries for advertising and sales to compensate their inadequate distribution power. However, the rise of network intermediaries has inevitably led to high commissions and a channel monopoly, thereby threatening the hotel industry. Therefore, online direct selling has become a common trend in the development of the Chinese economy hotel industry. Given great efforts to develop direct-selling channels and the constantly increasing investments in economy hotel websites, the hotel industry is concerned with whether hotel websites can offer users a positive experience and encourage online direct sales. The hotel online booking platform and its related issues have been investigated in literature because of their significance to online travel. Most scholars have evaluated the hotel website from various perspectives, including website design, functions, and characteristics; however, only a few researchers have explored the influence of hotel website quality, specifically economy hotel website quality, on consumer psychology and behavior. Previous studies suggest that hotel website quality profoundly and positively influence the willingness of consumers to book rooms online (Bai et al., 2008; Wang et al., 2015). However, most of these studies have focused on high-end international brands and ignore economy hotels, which also comprise a large market in the industry.

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Economy hotels are also referred to as “budget hotels” or “limited service hotels” and are different from hotels that provide full service; this type of hotels originated in the United States after the Second World War when the US economy recovered with the development of its highway system (Senior and Morphew, 1990). Zou (2003) defined economy hotels as hotels that provide professional services and affordable price to public consumers. Given that different types of hotels target various classes of customers, their hotel website requirements also differ. Trust plays an important role in online reservations because of the inherent risks in availing online services (Wang and Emurian, 2005). Therefore, hotels must establish trust relationships with their online consumers, thereby affecting the willingness of consumers to book rooms online (Wang et al., 2015). This study attempts to explore the influence of economy hotel website quality on the online booking intention of consumers. Three economy hotels (7 days, Home Inns, and Hanting Hotel) in Guangzhou, China were selected as research objects. The theoretical relationships among the quality of these hotel websites (usability, ease of use, entertainment, and complementarity), eTrust, and online booking intentions were thoroughly examined. The influence of the four aforementioned independent variables of hotel website quality on eTrust and online booking intentions was tested using the WebQualTM model (Loiacono et al., 2002). The rest of the paper is organized as follows. Section 2 presents the theoretical model and discusses the main research hypotheses to be tested empirically. Section 3 introduces the methodology. Section 4 analyzes the results. Section 5 discusses and provides the implications. Section 6 presents the limitations and future research directions.

2. Theoretical basis and research hypothesis 2.1. Website quality Jeong et al. (2003) first introduced the concept “website quality” into the hotel industry. The researchers defined hotel website quality as “the overall excellence or effectiveness of a website in delivering intended messages to its audience and viewers” (p. 162). However, website quality is a key factor in e-commerce because the customers’ perceptions of website quality positively and directly impact their purchase intentions (Chang and Chen, 2008). With regard to website quality, Yeung and Law (2006) investigated the usability of hotel websites. Ma et al. (2008) claimed that website functionality is the most influential factor in determining the success of hotel websites, including the usage and purchase intention of a consumer. Ip et al. (2012) adopted a sophisticated approach to analyze the weights of hotel website functionality. The results demonstrated that “reservation information” is the most important criterion of hotel website functionality. The perception of customers of website quality is based on the features in a website that meet customers’ needs and impress the total excellence of that website (Mona et al., 2013). Website quality is a multi-dimensional construct (Lin, 2007; Chang et al., 2014). Previous studies have examined website quality from various perspectives. Barnes and Vidgen (2000, 2001a,b, 2002) introduced WebQual serial models from WebQual 1.0 to 4.0. WebQual 1.0 examines the information quality of websites by incorporating the ease of use, experience, information, and communication dimensions. WebQual 2.0 focuses on website interaction, including tangibility, reliability, responsiveness, supportability, and empathy. WebQual 3.0 adds design quality to information and interaction quality. WebQual 4.0 replaces usability with design quality because the perceptions of users are more significant than those of website designers. Based on previous research and interviews with web designers and users, Loiacono et al. (2002)

developed the WebQualTM model, which classifies website quality into four dimensions (usability, ease of use, entertainment, and complement relationship) and twelve related core targets. Usability refers to whether the hotel website can provide sufficient information about its products and services; ease of use and entertainment indicate the extent the website is easy to use and pleasant for customers; complementarity represents the complementary relationship between the hotel website and other sales channels (Loiacono et al., 2002). The multiple nature-based website quality incorporates information, system, and service quality (Lin, 2007). The multiple dimensions of website quality can be categorized as security, enjoyment, information quality, ease of use, and service quality (Hasanov and Khalid, 2015). Hasanov and Khalid (2015) mentioned that website design is an important determinant of website features and is crucial in achieving the quality of service offered to customers through the website. The growth of the application scope of the Internet has resulted in numerous studies on hotel website in tourism and hospitality management. Most of these studies have focused on the key elements for hotel websites to succeed as online marketing tools. Maier (2012) proposed a new model that tests the webeffectiveness of luxury and upscale hotels using variables, such as reach, content, consistency, and price parity. They found that only six of ten reviewed hotel companies have achieved optimal web-effectiveness for online marketing. Jakovic and Galetic (2014) stated that most five-star hotel websites do not have their own mobile application, which can help consumers obtain immediate and useful booking information. Some studies have evaluated one aspect or the entire performance of hotel websites. Lee and Morrison (2010a,b) investigated the upscale hotel website performance in South Korea and the United States. The results indicated that most upscale hotels in both countries do not effectively use websites from marketing and upscale hotel perspective. Pranic´ı et al. (2014) studied hotel website performance in a transition country. They found that hoteliers recognize the importance of online presence but most of them are ineffectively using websites in terms of user-friendliness, marketing effectiveness, and Hsieh (2012) investigated the informational dimension of the websites of the top 50 hotel companies from environmental management perspective. The results suggested that less than half of these hotels use web pages to post environmental related information. The primary deficiency of these studies is caused by several concepts, including website features, effectiveness, and performance; these concepts are perceived relevant to website quality but are not defined clearly. Table 5 shows that no unified standardized tools are available to measure these website-related attributes. Some researchers have stressed that hotel website quality has a growing importance in different hotel businesses. Hotel star rating is significantly related to hotel website performance (Salavati and Hashim, 2015). Jakovic and Galetic (2014) discussed that websites of five-star hotels will become more of an active generator of hotel business and development than a promotional channel. Abou-Shouk and Khalifa (2016) argued that the website quality dimensions of five-star hotels in Egypt significantly affect the purchasing behavior of customer. The website adoption level in developing countries is far behind that of developed countries (Salavati and Hashim, 2015; Abou-Shouk and Khalifa, 2016). In China, most customers prefer to book economy hotels rather than star-rated hotels owing to their affordable prices and professional service (Huang et al., 2014). Moreover, the market share of the Top 10 economy hotel brands in China accounts for 70% of the total market (Shen et al., 2014). Therefore, the potential of economy hotels in China is high and the official websites of these hotels must be

L. Li et al. / International Journal of Hospitality Management 63 (2017) 1–10

developed. However, most studies have been primarily focused on upscale hotels, and publications related to economy hotel website domains are limited.

2.2. Website quality and online booking intentions Online shopping is a process of buying products through the Internet and involves online buyers that access online sellers’ websites to search, select, purchase, use, and dispose of goods and services to satisfy their needs and wants (Ariff et al., 2014). Online booking intention is the willingness and tendency of consumers to participate in online trading, which involves the evaluation of website quality and product information (Pavlou, 2003). In the hospitality industry, the purchase behaviors of consumers are strongly influenced by the information they have collected from the Internet (Xiang and Gretzel, 2010). Online sellers need to emphasize website quality to increase the possibility for online consumers to access and buy products online (Lee et al., 2016). Kim et al. (2006) stated that the online reservation intention of Chinese hotel customers is more dependent on client information needs and online security than hotel branding and price benefits. Liu and Zhang (2014) classified the factors that influence the online booking channel options of Chinese consumers into two types: product-related factors (price, reviews, and diversity of the product) and channelrelated factors (website quality, payment system, and customer relationship). They found that both factors can affect online booking intentions. Moreover, the perceptions of online hotel bookers toward two types of channels (hotel and OTA websites) can help industry practitioners improve their websites. In this case, OTA websites outperform hotel websites in all aspects except for website quality. Ma et al. (2008) proposed that the functionality of a website significantly impacts the usage decision and purchase intention of a consumer. However, the researchers did not validate this hypothesis. Thus, Bai et al. (2008) developed a conceptual model to illustrate the influence of website quality on customer satisfaction and purchase intentions. The researchers found that the website quality directly and positively influences customer satisfaction, and customer satisfaction directly and positively influences purchase intentions. Lee et al. (2016) claimed that online sellers’ website quality is important in predicting the purchase intentions of online buyers. Website quality is a crucial component of the entire user experience and is the most important factor on consumers’ intention to shop online; thus, it can be used for effectively measuring website performance (Lee and Kozar, 2012a,b; Hasbullah et al., 2016; Yeung and Law, 2004). Prior studies on website usability have provided a rich understanding of the effects of website usability on the perceptions and behaviors of online consumers. Lee and Kozar (2012a, 2012b) discussed several direct and indirect effects of website usability factors on purchase intention in terms of learnability, readability, simplicity, content relevance, and interactivity. Website usability does not directly affect intention to use but has an indirect effect through customer satisfaction (Belanche et al., 2012). Qi et al. (2013) studied the online booking intention of hotel guests in five-star hotels in Macau. Over half of their respondents makes their reservation online, and the most popular channel for searching hotel information is individual hotel website. Dingli and Cassar (2014) stressed that the level of usability of a website determines if a user stays or abandons the website for another competing one. However, usability is an attribute that cannot be observed directly but primarily depends on a user’s perception to a particular website (Aziz and Kamaludin, 2014). The first hypothesis is therefore proposed as follows: H1: The usability of economy hotel websites positively influences the online booking intention of consumers.

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The ease of use of an organization’s website is crucial to success within the Internet context (Aljukhadar and Senecal, 2015). A good website must be easy to use, understand, and navigate (Aziz and Kamaludin, 2014). The importance of ease of use depends on shortand long-term transaction expectation, product type, and whether security concern information is presented (Shen and Chiou, 2010). Ease of use as a website feature can affect consumer’s intention toward using an online service and drive customer purchase decisions (Venkatesh and Agarwal, 2006; Shen and Chiou, 2010). The technology acceptance model shows that a person’s intention to use a specific system is determined by one’s attitude toward using the system and perceived ease of use (Saade and Kira, 2007). Aljukhadar and Senecal (2015) stated that website ease of use is positively influenced by determinants, such as site aesthetics, information quality, site interactivity, and site trust; this factor also significantly drives the attitude and purchase intentions of users. The second hypothesis is therefore suggested as follows: H2: The ease of use of economy hotel websites positively influences the online booking intentions of consumers. Sun (2016) stated that client entertainment is a popular business practice that Chinese managers aim to use to facilitate business relationships and promote sales. Jiang et al. (2016) claimed that users’ perception of aesthetics, especially in users’ first interaction with a website, significantly impacts their attitudes toward the website. Zeng et al. (2009) examined the factors of website creativity, including aesthetic appeal, interactivity, novelty and flexibility, affect, importance, commonality and simplicity, and personalization; these factors present significant implications to creative web design. A website must be attractive and appealing to promote positive user experience (Zeng et al., 2012). Online service providers must focus on improving website quality and exceed expectations to generate consumers’ positive emotions and reduce negative emotions (Hsu and Tsou, 2011). Madan et al. (2012) claimed that emotionally arousing information is remembered better than neutral information. The third hypothesis is therefore established as follows: H3: The entertainment of economy hotel websites positively influences the online booking intentions of consumers. Complementarity refers to the presence of system effects and synergies of alternative activities; this concept has been widely used to investigate innovation processes (Mothe et al., 2015). The notion of complementarity refers to the beneficial interplay of the design elements of a system, in which doing more of one thing increases the returns from doing more of another thing (Milgrom and Roberts, 1995). Channel complementarity theory suggests that media consumers use a collection of complementarity communication channels when searching for information. In other words, the individual who feels the functional need to consume a specific channel also consumes other channels that perform the same function (Dutta-bergman, 2006). The complementarity of website quality contains three dimensions: online completeness of transactions, channels better than alternative ones, and consistent image (Loiacono et al., 2002). Firms that propose synergistic organizational innovations stay competitive over non-innovative firms and over firms that adopt a narrow singular approach to innovation (Miravete and Pernias, 2006). The fourth hypothesis is therefore presented as follows: H4: The complementarity of economy hotel websites positively influences the online booking intentions of consumers. 2.3. Website quality, eTrust, and online booking intentions Understanding customer trust in Internet shopping is crucial because trust is a product of perceived website quality that determines consumer attitudes toward online shopping (AlDebei et al., 2015). Trust refers to the depth and assurance of

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feeling based on inconclusive evidence (Rahimnia and Hassanzadeh, 2013). Research on the concept of trust has been conducted in various disciplines, such as sociology, management, and marketing. In the service industry, trust enables long-term relationships with customers (Kumar et al., 1995). Given the increasing risks in transactions, trust in the online environment (eTrust) plays a crucial role in loyalty and forms long-term relationships between customers and organizations (Cavanagh, 2011; Rahimnia and Hassanzadeh, 2013). In the hospitality industry, eTrust is a risk-taking behavior based on consumers’ positive expectation to hotel websites (Morgan and Hunt, 1994). This perceived trust plays a mediating role in the relationship between website quality and online purchase intention and significantly impacts the purchase intention of customers in the hotel sector (Chang et al., 2014). eTrust is a concept born of the Internet age and presents novel characteristics compared with traditional trading patterns. First, the object of eTrust includes enterprises and hotel websites because consumers and businesses communicate through the Internet more often than in person (Wang and Emurian, 2005). Uncertainty and risk have become intrinsic attributes of e-commerce owing to the complexity and anonymity of online shopping. The most common risks in the network environment include monetary losses and misuse of personal information (Bart et al., 2005). Tamimi and Sebastianelli (2007) examined eTrust using reliability, assurance, and credibility. The results indicated that reliability is more important than the two other factors. Although eTrust has been examined by many studies, publications on its implication to the tourism and hospitality industry are limited. Sparks and Browning (2011) investigated the influence of online reviews on hotel booking intentions and perception of trust of consumers. The results indicated that consumers are likely to be influenced by negative information. However, positive information and numerical rating details increase booking intentions and consumer trust. The results also implied that consumers rely on easy-to-process information while evaluating a hotel based on its online reviews. Moreover, high levels of trust are evident when positive reviews focus on interpersonal service. Wang et al. (2014) discussed online consumer trust (eTrust) in the hotel industry from the perspective of Chinese web users. The researchers claimed that Chinese web users moderately trust hotels’ own websites. Therefore, enhancing customer trust through websites and improving the success rate of online transactions require further research. Wang et al. (2015) examined the influence of website quality on the online booking intention of consumers using eTrust as an intermediary variable. Their statistical results demonstrated that hotel website quality is a strong predictor of eTrust, which mediates the relationship between website quality and the online booking intentions of consumers. Thus, the hotels can build a trust relationship with their consumers through their official websites (Wang et al., 2015). Chang et al. (2014) argued that purchase intention is indirectly influenced by website quality through the mediating role of perceived trust. They also found that the relationship between website quality and perceived trust is strong for customers who perceive good website branding; by contrast, the relationship between eTrust and purchase intention is strong for customers who perceive high service value. Wang et al. (2015) argued that the functionality, usability, security, and privacy of hotel official websites could affect the trust of consumers in the hotel, thereby affecting the online booking intentions of consumers. Bedi and Banati (2006) investigated the relationship between user trust and website usability. They found that the trustworthiness of a website is determined by users’ perceptions of the states of website features. Rahimnia and Hassanzadeh (2013) argued that website informational dimension affects eTrust. Many researchers have revealed the mediating role of eTrust when studying website qual-

ity, online purchase intention, and other related issues (Wang et al., 2015; Rahimnia and Hassanzadeh, 2013; Chang et al., 2014; Kim and Lennon, 2013). This role indicates the significant relationship between website quality and eTrust. On the basis of the literature review and Hypotheses 1–4, the following hypotheses are proposed: H5: The usability of economy hotel websites positively influences eTrust. H6: The ease of use of economy hotel websites positively influences eTrust. H7: The entertainment of economy hotel websites positively influences eTrust. H8: The complementarity of economy hotel websites positively influences eTrust. Chang et al. (2014) stated that purchase intention is positively influenced by perceived trust. Researchers have revealed that eTrust performs a mediating role between website quality and purchase intention. Therefore, a significant relationship exists between eTrust and online purchase intentions. The ninth hypothesis is thus suggested as follows: H9: eTrust positively influences the online booking intentions of consumers. The theoretical model in Fig. 1 was constructed on the basis of the hypotheses mentioned above.

3. Methodology 3.1. Data collection Data were collected at the end of 2015. Users of three websites, namely, 7 days, Home Inns, and Hanting Hotel, were included in the sample; these users include those who browse or make room reservations on the websites of the three hotels (Law and Cheung, 2006). These hotels are the leading enterprises in the economy hotel industry in China and have mature website direct-selling channels and large numbers of online members. Founded in 2005, 7 days does not rely on OTAs and aims for cost saving and low price for consumers; the hotel also offers direct selling on its official website. In 2010, 7 days has realized 100% direct selling without relying on any intermediaries. As 7 days expands, its reservation system is continuously improving and becoming perfect. Hanting Hotel was also established in 2005 and renamed as Huazhu Hotel in 2012. The annual report in 2014 showed that Huazhu had 1995 hotels and covered 300 cities by December 31, 2014. The loyalty programs launched by Huazhu have covered more than 31 million members, and over 90% of the room sales has come from direct selling. Founded in 2002, Home Inn is the core brand of Home Inns Hotel Group and the leader of China’s economy hotels in terms of market share, room size, and brand awareness. Home Inns is a traditional economy hotel industry leader and did not deploy a direct-selling channel until 2005. This traditional brand launched an online booking system in early 2005, which was ahead of the whole industry. A questionnaire survey approach was adopted to achieve the research objectives. A total of 298 questionnaires were issued online to the users of the three economy hotel websites, and all questionnaires were returned. Males and females accounted for 55% and 45% of these effective samples, respectively. The majority of the respondents were between 18 and 30 years old, which represent 76.8% of the entire sample. The characteristics of the sample were consistent with the structure of economy hotel clients; the representativeness of the data was thus high. With regard to their online booking experience, 62.4% of the respondents stated that they made reservations on the official websites of hotels; the data

L. Li et al. / International Journal of Hospitality Management 63 (2017) 1–10

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Fig. 1. Theoretical model.

Table 1 Demographic characteristics of the respondents. Demographic characteristics

Options

Number of people

Percent

Gender

Male Female Less than 18 18–25 26–30 31–35 36–40 More than 40 High school or below College Undergraduate Masters Doctoral or above Below 2000 2000–4000 4000–8000 8000–10,000 Above 10,000 Traditional channels OTAs Hotel official websites Yes No

164 134 1 111 118 39 18 11 13 34 167 76 8 42 58 141 36 21 56 195 47 186 112

55.0 45.0 0.3 37.2 39.6 13.1 6.0 3.7 4.4 11.4 56.0 25.5 2.7 14.1 19.5 47.3 12.1 7.0 18.8 65.4 15.8 62.4 37.6

Age (years)

Education

Monthly income (Yuan, USD 1 = Yuan 6)

Common booking channel Booked hotel rooms on the official website

were therefore valid. Table 1 presents the demographic profiles of the respondents. 3.2. Variable measurement The main variable measurement items were selected from previous studies to improve the reliability and validity of this research. A total of 21 website quality measurement items were included in the final scale based on the modified original scale exploited by the WebQualTM model and by interviewing 20 economy hotel website users. Exploratory factor analysis was conducted to analyze the structure of the scale. Table 2 shows that the scale was precipitated into four factors, which explain 64.3% of the variance. Factor 1 is usability, which refers to the extent to which websites can be used by specified users to achieve specified goals and visit with effectiveness, efficiency, and satisfaction in a specified context of website use (Agarwal and Venkatesh, 2002). This factor emphasizes the informational dimension of hotel websites, that is, whether hotel websites can afford sufficient information about their products and services to their users. Factor 2 is ease of use, which is “the extent to which a person believes that using a technology will be free of effort” (Venkatesh, 2000). Factor 3 is entertainment, which reflects how pleasant the hotel website makes users feel. Factor 4 is complementarity, which means the complementary relationship between the hotel website and other sales channels. The six

eTrust and four online booking intention measurement items used the scales that were exploited by Wang et al. (2015). During the data collection process, the respondents were asked to score each item on a five-point Likert scale (1 = strongly disagree, 5 = strongly agree). 3.3. Data analysis procedure Structural equation modeling (SEM) was adopted to test the theoretical model and research hypotheses. The internal consistency of the scale was tested. AMOS 17.0 was used to test the reliability and validity of the variable measurements through confirmatory factor analysis. The software was also used to test the overall fit of the structural model and research hypotheses. 4. Data analysis and results 4.1. Reliability and validity of measurement models Table 3 presents the results of the confirmatory factor analysis. The composite reliability of all variables was higher than 0.8. Except for usability and complementarity, the average variance extraction was higher than 0.5. The internal consistency of scale ␣ coefficient was higher than 0.8. Therefore, the scale was favorably reliable. Table 3 shows that the standardized factor loadings of

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Table 2 Exploratory factor analysis of website quality. Items of the scale

The website adequately meets my information needs. The information on the website is effective. I can interact with the website to obtain information that is tailored to my needs. I feel safe in my transactions on the website. I trust the website with my personal information. The website loads quickly. The website pages are easy to read. The website texts are easy to read. The website labels are easy to understand. The website is easy to operate. I can easily become skilled in using the website. The website is visually pleasing. The website is visually appealing. The website design is fashionable. The website design is innovative. I feel happy when I use the website. The website fits with my image of the company. The image of the website matches that of the company. The website allows online transactions. I can finish my business with the company easier over the website than over the phone, fax, or email. Using the website is easier than calling a representative on the phone. Interpretation ratio of the total variance Cronbach’s ␣ coefficient

Factor 1

Factor 2

Factor 3

Factor 4

Factor loadings

Factor loadings

Factor loadings

Factor loadings

0.59 0.67 0.65 0.71 0.76 0.54 0.56 0.66 0.60 0.81 0.85 0.64 0.75 0.85 0.80 0.72 0.66 0.60 0.66 0.82 0.59 64.3% 0.83

0.87

0.88

0.81

Note: KMO = 0.91; the Bartlett’s test of sphericity is significant (p < 0.001).

Table 3 Results of confirmatory factor analysis. Potential variable-measuring items

Standardized loadings

Usability The website adequately meets my information needs. The information on the website is effective. I can interact with the website to obtain information that is tailored to my needs. I feel safe in my transactions on the website. I trust the website with my personal information. The website loads quickly.

0.64** 0.73** 0.69** 0.68** 0.66** 0.60**

Ease of use The website pages are easy to read. The website texts are easy to read. The website labels are easy to understand. The website is easy to operate. I can easily become skilled in using the website.

0.84** 0.82** 0.79** 0.58** 0.61**

Entertainment The website is visually pleasing. The website is visually appealing. The website design is fashionable. The website design is innovative. I feel happy when I use the website.

0.75** 0.77** 0.78** 0.78** 0.72**

Complementarity The website fits with my image of the company. The image of the website matches that of the company. The website allows online transactions. I can finish my business with the company easier over the website than over the phone, fax, or email. Using the website is easier than calling a representative on the phone.

AVE

Cronbach’s ␣ coefficient

0.83

0.45

0.83

0.85

0.54

0.87

0.87

0.58

0.88

0.81

0.46

0.81

0.86

0.51

0.87

0.88

0.66

0.87

0.78** 0.78** 0.63** 0.61** 0.55**

eTrust The website can handle sales transactions over the Internet. The website does not deceive customers. The website fulfills its promise. The website provides reliable information. The website design considers the needs of consumers. The website recommendations are made for mutual interest.

0.71** 0.74** 0.71** 0.74** 0.70** 0.68**

Online booking intention I am willing to book hotel rooms using the website. I plan to book hotel rooms using the website. I may book hotel rooms using the website in the next 12 months. I prefer to use the website when making reservations.

0.87** 0.86** 0.78** 0.72**

Note: * * indicates p < 0.01.

Composite reliability

L. Li et al. / International Journal of Hospitality Management 63 (2017) 1–10 Table 4 Inter-construct correlations. Potential variables

1

2

3

4

5

6

1. Usability 2. Ease of use 3.Complementarity 4. Entertainment 5. eTrust 6. Online booking intention

1.000 0.784 0.754 0.685 0.763 0.559

1.000 0.709 0.705 0.701 0.524

1.000 0.672 0.726 0.547

1.000 0.769 0.659

1.000 0.718

1.000

the measurement items were higher than 0.6 and significant at 0.01, thereby showing satisfactory convergent validity. Distinction validity was measured using the method of Kline (2005), who suggested that the adequate discriminant validity correlations between two random variables must be lower than 0.85. Table 4 shows that all inter-construct correlations were lower than 0.8; the discriminant validity among the variables was therefore acceptable. 4.2. Model fitting and hypothesis testing After securing the reliability and validity of the individual measurement models, the overall model fit was assessed by SEM. The overall model fit index was CMIN = 784.06 (p < 0.001). Given that CMIN was significantly influenced by the sample size, GFI, AGFI, RMR, RMSEA, TLI, CFI, NFI, CMIN/DF, PNFI, and PCFI were selected to comprehensively test the fitting of the hypothesis model. RMR = 0.048 and RMSEA = 0.057, which are both less than the critical values of 0.05 and 0.08, respectively. GFI = 0.85, AGFI = 0.81, TLI = 0.92, CFI = 0.93, and NFI = 0.87, which are all close to the general adaptation value of 0.9. CMIN/DF = 1.97, which is between 1 and 3. PNFI = 0.74 and PCFI = 0.80, which indicates that the model was simple. The relevant indicators of the output suggest that the proposed hypothesis model was well fitted with the collected data.

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Fig. 2 shows the standardized path coefficient outputs of the hypothesis model. As shown in the figure, most of the hypotheses were supported. The standardized path coefficients from usability, entertainment, and complementarity to eTrust were 0.29 (t = 2.435, p < 0.05), 0.27 (t = 3.166, p < 0.01), and 0.34 (t = 3.125, p < 0.01), respectively. Therefore, Hypotheses 5, 7, and 8 were supported. Ease of use insignificantly affected eTrust; Hypothesis 6 was therefore rejected. Complementarity significantly positively influenced online booking intention with a corresponding estimate of 0.30 (t = 2.493, p < 0.05); Hypothesis 4 was thus supported. Usability, ease of use, and entertainment insignificantly influenced online booking intention; Hypotheses 1–3 were therefore rejected. eTrust significantly positively influenced online booking intention with a statistically significant estimate of 0.55 (t = 4.466, p < 0.01); Hypothesis 9 was thus supported. The four dimensions of website quality explained 71% and 55% of the variations in eTrust and online booking intentions, respectively; the statistical effect of the model was therefore favorable. The standardized path coefficients also show that the dimensions of website quality presented varying degrees of influence on eTrust. Specifically, complementarity exhibited the strongest influence, followed by usability and entertainment; on the contrary, ease of use insignificantly influenced eTrust. Meanwhile, complementarity strongly influenced online booking intentions, whereas usability, ease of use, and entertainment insignificantly affected this variable. Therefore, consumers are mostly concerned about the complementary relationship between economy hotel websites and other sales channels. In other words, website image, online service functions, and convenient communication are the most distinctive factors that affect the perception of consumers with regard to the quality of economy hotel websites.

Table 5 Research related to hotel websites. Authors

Research contents

Dimensions

Murphy et al. (1996)

Website performance factors

Morrison et al. (1999)

Website performance/effectiveness features

Frey et al. (2002)

Web marketing functions

Wöber et al. (2002)

Success indicators for destination websites

Huang and Law (2003)

Overall performance of hotel website

Bai et al. (2006) Baloglu and Pekcan (2006) Schmidt et al. (2008)

e-RM features Website effectiveness and marketing practice Website performance

Wan (2002) Chung and Law (2003)

Ratings of websites of international tourist hotels and tour wholesalers Effectiveness of websites

Liang and Law (2003)

Website functional performance

Scharl et al. (2003) Law (2005)

Web usage Hotel website performance

Zafiropoulos and Vrana (2006)

Website function features

Lee and Morrison (2010a, 2010b)

Web site performance

Akincilar and Dagdeviren (2014)

Hotel website evaluation

Homepage, search engine results, classification, website basic functions, website communication functions, and audiences Technical, marketing, and internal and customer critical success factors Service processes, customer relationship, value added services, creation of trust, and cyber-marketing Resource database and maintenance engine, search engine, protocol processing engine, website analyzer, and management report engine Product, place, price, promotion, people, packaging, programming and partnership, customer, needs and wants, cost to customer, convenience, communication, search engines, management links, and useful skills Basic, reactive, accountable, proactive, and partnership Interactivity, navigation, and functionality Promotion, multimedia, navigability, customer retention, privacy and security, and service promptness User interface, variety of information, and online reservation Basic information on ecommerce, promotions, secondary information, of services, and technology Facilities, customer contact, reservations, surrounding area, and management of websites Ease of use and website usefulness No specific indication (hotel guests’ preferences and fuzzy assessments of website attributes) Facilities, guest contact, reservation or price information, surrounding area, management of website, and company profile Technical, marketing, internal, and customer critical success factors Customer, technology, marketing, security, and other factors

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Fig. 2. Results of the hypothesis model testing.

Note: *p < 0.05, **p < 0.01; R2 indicates the double square correlation coefficient of the dependent variable.

5. Discussion and implications On the basis of the division of website quality dimensions developed by Loiacono et al. (2002), the current study explored the influence of economy hotel websites on the eTrust and online booking intentions of consumers in China with respect to the usability, ease of use, entertainment, and complementarity of such websites. The theoretical model and research hypotheses were empirically

tested by selecting the users of 7 days, Home Inns, and Hanting Hotel websites as research objects. The conclusion of the present study is consistent with that of Bai et al. (2008) and Wang et al. (2015). In particular, the quality of economy hotel websites significantly positively influences the eTrust of consumers, and eTrust also positively influences online booking intention. Therefore, hotel companies must attach great importance to the usability, entertainment, and

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complementarity of their respective websites during the construction process to strengthen eTrust and increase the online booking intentions of their consumers. The findings of this study vary from those of Bai et al. (2008) and Wang et al. (2015). Specifically, the latter two studies have only focused on the usability and ease of use of hotel websites, and their results indicated that the two dimensions significantly positively influence the online booking intentions of consumers. However, the present findings show that consumers pay more attention to the complementarity of economy hotel websites rather than their usability, ease of use, and entertainment. Therefore, the usability, ease of use, and entertainment of economy hotel websites insignificant affect the online booking intentions of consumers. First, given the continuous improvement of economy hotel websites in China, these websites have become similar in terms of their information architecture, navigation, and user interface. Second, consumers place high importance on the complementary factors of these websites once their basic needs for information and room reservation are satisfied. These factors include the consistency of the website image and that of the hotel, the integrity of businesses featured on the website, and the advantages of the official website over other booking channels. This study also offers significant practical implications for the construction of economy hotel websites in China. The economy hotels in China are currently being forced to reduce their prices in response to the threats from OTAs. This study confirms the significant influence of the usability, entertainment, and complementarity of economy hotel websites on the eTrust and online booking intentions of consumers. Therefore, in addition to the traditional price war, economy hotels must also improve their website quality to win the trust of their consumers and increase the rate of their online bookings. The complementarity of economy hotel websites presents the strongest positive influence on the online booking intentions of consumers. Thus, the consistency in the website image and that of the hotel, the integrity of the businesses featured on the website, and the advantages of official websites over other booking channels play very important roles in increasing the reservations made over the hotel websites. The economy hotel chains in China have high profiles and favorable brand images in the minds of their consumers. Therefore, the implied image of these hotels must be reflected in the logos, high-resolution pictures, videos, and overall design of their websites to improve the brand memory of their consumers. These hotels must also ensure that all their businesses are featured on their official websites to encourage brand loyalty. Moreover, hotel websites must offer a simple booking process and increase their loading speed to provide their users with a great experience, especially because official websites are known for their convenience and efficiency. Apart from complementarity, the trust of consumers toward these hotel websites can also affect their online booking intentions; such trust is affected by the usability, entertainment, and complementarity of economy hotel websites. Therefore, hotel websites must effectively deliver information and adopt a good human–computer interaction design to ensure that their consumers can easily navigate through the websites and find useful information. Entertainment has been rarely mentioned in literature; however, the present article finds that entertainment is also important for building eTrust. Entertainment best reflects how users value the design of websites, including their visual effects, innovation, and emotional appeal. Moreover, an excellent, creative, and emotional design makes consumers happy when browsing websites, reduces the distance between the service provider and its consumers, and increases the service provider’s recognition.

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