Online travel insurance purchase intention : a transaction cost perspective

ABSTRACT

Using the transaction cost theory, this study examines customers’ online travel insurance purchase intentions. Data was collected from the life insurers in Taiwan via in-depth interviews and surveys. The hypothesized research model was tested using structural equation modeling. Findings of this study confirm that as customers have more trust in and less online uncertainty about life insurers with greater online experience, they are more likely to purchase online travel insurance. This study reveals that customers with high online purchasing frequency show less transaction cost than those with low online purchasing frequency.     

Social learning? Conformity? Or comparison? — An empirical study on the impact of peer effects on Chinese seniors' intention to purchase travel insurance

This study aims to explore seniors' consumption behavior characteristics and the impact of peer effects on their intention to purchase travel insurance. The multiple regression analysis of logistic binary categorical variables revealed that peer effects influence seniors' intention to purchase travel insurance through social learning, conformity, and comparisons. Other factors (e.g., spending power, education, and perceived risk) affect such intentions; however, we can control these. We categorized the senior travel-insurance market and pioneered the introduction of peer-effect theory into research. Overall, this study (i) promotes more specialized research into travel-insurance marketing theory; (ii) results in reduced marketing expenditures for this demographic; (iii) result in better targeting/promotion; and (iv) realizes multiplier effects in this domain.     

Tourism climate insurance: implications and prospects

This paper investigates the intentions of tourists to purchase climate insurance as part of their holiday packages. A research model, based on Bagozzi’s reformulation of attitude theory designed to examine the relationships between climate expectation-disconfirmation and the behavioral intentions of tourists in purchasing tourism climate insurance, with destination loyalty as an outcome. The model hypothesizes and tests whether expectation-disconfirmation can be resolved by insuring the product-climate. A structural equation modeling is utilized. The results reveal that the expectation-disconfirmation of tourists in relation to climate is positively associated with their intentions to purchase insurance and negatively affects loyalty.     

产品外部属性对跨境购物意愿的影响

最近几年, 中国人跨境购物的热情持续高涨, 但国内却鲜有学者关注跨境购物这一现象。文章采用情景实验的方法, 以广东消费者为研究对象, 探讨在粤港两地不同购买地市场环境下, 产品外部属性对购买意愿的影响。研究结果表明, 购买地这一因素对于消费者购买搜索和体验产品的决策影响十分有限, 消费者并没有对粤港两地市场产生明显偏好。对于体验产品而言, 消费者对西方外国品牌的购买意愿高于国内品牌, 且这种偏好不会受到价格和购买地的影响。对于搜索产品而言, 价格与品牌原产国会对消费者的购买意愿产生交互作用。     

Online Information Search Strategies: A Focus On Flights and Accommodations

The problem of the research was to understand information search strategies that individuals utilized in online travel product purchases. Two products, flights and accommodations, were selected to examine each product's explanatory variables in online purchase behaviors. The results indicate online flight purchasers utilize direct information sources and focus on transactional attributes. Online accommodation purchasers utilize various types of sources; and they focus not only on transactional, but also informational and branding attributes. The study results support the constructive consumer choice processes theory and suggest some marketing tips for the airline and lodging industries.     

Online Shopping of Travel Products: A Study of Influence of Each Dimension of travelers' Attitudes and the Impact of travelers' Online Shopping Experiences on Their Purchase Intentions

This study examines the impact of three attributes (perception of convenience, perception of merchandise options, and perception of value) on travelers' attitudes toward different online agencies online shopping for travel products and the impact of online shopping experiences on their online purchase intentions. The collected data arises from an Internet survey of registered members of an online travel service company that caters to leisure travelers. The study finds that perceptions of convenience and value are two valid dimensions that measure travelers' attitudes. Findings also confirm that those two attitudes' attributes and travelers' online shopping experiences exert significant influence on their online purchase intentions. Travelers have a more positive attitude toward travel portal websites than toward companies' branded websites in terms of perception of convenience, perception of merchandise options, and perception of value.     

Linkages between holiday travel risk and insurance claims: evidence from New Zealand

In recent years there has been a growing literature on linkages between tourism and health. Data from insurance companies has, however, not been readily available for commercial reasons. This paper reports conversations with the managers of New Zealand insurance companies responsible for paying claims on travel policies which indicate the attitudes and the concerns of some managers in the industry, and reveal a pattern which supports the academic literature, namely that most tourists travel safely, and the overwhelming majority of claims are of small value. However, the question can be asked whether the data held by companies might not be used for other than actuarial reasons in helping to provide strategies that would further reduce claims.     

An Empirical Study of an Online Travel Purchase Intention Model

This study empirically tests a structural model of factors affecting consumers' online purchase intentions for travel products. The findings indicate that information quality, service quality, and system quality are valid measurements to evaluate the quality of travel-oriented website designs. In terms of travelers' perceptions, convenience, value, and merchandise options are three effective measurements of travelers' attitudes toward purchasing travel products online. Quality of travel website design, travelers' attitudes, and customers' satisfaction demonstrate significant influence on travelers' purchase intentions. Travelers' attitudes and customers' satisfaction also serve as strong mediators for the links between quality of travel website design and purchase intentions. Future research can capitalize on this study as a basis to formulate other models or to create a new model to test tactics that can increase travelers' repurchase intentions and strengthening consumers' e-loyalty.     

Exploring air travellers’ voluntary carbon-offsetting behaviour

This paper advances understanding of consumers who purchase voluntary carbon offsets (VCOs) for flights by profiling the socio-demographic characteristics of VCO purchasers in Australia and the UK and investigating their environmental attitudes and beliefs. Earlier research shows that there is confusion and lack of clarity around VCO schemes, yet small numbers of consumers continue to purchase them. Using an online panel survey of 502 respondents, this research considers whether those who purchase VCOs can be considered to be ecocentric, and whether they share a similar socio-demographic profile with those engaging in other forms of pro-environmental behaviour. The results suggest three groups: “Ecocentrics” (36%), “Middle of the Road” (31%) and “Anthropocentrics” (33%). While VCO purchasers appear to be ecocentric, not all ecocentric respondents purchased VCOs and, additionally, those who did purchase, appear to have a different socio-demographic profile from others engaging in pro-environmental behaviour. The study suggests that this segment of the flying public, already willing to contribute towards climate change mitigation, may be the best segment to target with behavioural change messages intended to encourage the structural changes in travel choices required to mitigate climate change. Earlier suggestions that older females are more likely to purchase VCOs are not supported.     

Does the Usability Experienced Performance of Travel Websites in China Meet Users' Expectation?

Despite the increasing use of the Internet in travel and tourism, the issue of usability on travel websites has been largely overlooked in the existing tourism literature in Mainland China (hereafter known as China), one of the world's largest markets for generating and receiving tourists. This paper reports on a study that investigated the perceptions of Internet users in China on China-based travel agency websites (henceforth referred to as travel websites). The expectancy disconfirmation theory was used to compare the expected performance and experienced performance of 24 usability attributes. Empirical results showed significant differences between perceived performance and expected performance for all included attributes.     

Involvement theory in constructing bloggers' intention to purchase travel products

Blogs recently have demonstrated their enormous marketing potential, and more and more travel advertisements are being posted in blogs. In light of this observation, this study aims to provide insights into the structural relationship among travel bloggers' involvement level, the advertising effect from blog messages, and travel bloggers' intention to purchase travel products. A travel blogger's purchase intention model was constructed and empirically tested. A total of 900 questionnaires were distributed to identified travel bloggers; 398 valid responses were returned. The data were examined with Structural Equation Modelling (SEM). The results demonstrated the positive impact resulting from the ad effect as well as the ad effect on purchase intention, which could be verified in travel blog environments. It also indicated that high-involvement travel bloggers are more likely to form favourable impressions with regard to ads in travel blogs. Travel blogs play a positive role in the processing of ad messages; brand management is essential to business marketers since brand attitude is the most influential factor related to the ad effect on purchase intention. Meanwhile, while ad attitude is not significantly effective concerning purchase intention, it remains essential in forming brand attitudes. Several implications for posting advertisements in travel blogs will be discussed and suggested in this paper.     

Perceptions of Functionality and Usability on Travel Websites: The Case of Chinese Travelers

Despite the large increase in the amount of online purchases of travel-related products in recent years, previous studies on travel website analysis have concentrated mainly on assessing the quality of travel websites, customer purchase behavior, and website content analysis. In the context of Mainland China (hereafter known as China), with growing wealth of her citizens and the inclination to travel, more Chinese travelers have been, and will probably be, visiting worldwide destinations. In addition, many Chinese travelers will use the Internet to search, and subsequently to purchase, travel-related products and services. This study makes an attempt to analyze Chinese online buyers and online browsers on their perceived importance of travel website functionality (content) and usability (design) and their specific factors. Online buyers (e-buyers) are the Internet users who have previously purchased on travel websites, whereas online browsers (e-browsers) are the Internet users who have browsed travel websites but without making any purchases. The research findings showed that e-buyers did not differ significantly from e-browsers in most of the included factors. The findings of this research are expected to assist travel website developers to improve their websites and to attract more e-travelers.     

Exploring the traveller underinsurance problem

Recent research has found that, in general, travellers are significantly underinsured when travelling abroad. Travel is a unique market among insurance products as there are factors that exacerbate the uncertainty from the consumers’ perspective, such as variable time periods of being insured, variable forms of coverage and scale, level of knowledge of the risks at the destination and the activities to be undertaken. We view the current state of the travel insurance market as inefficient as consumers are deemed generally misinformed and unaware of the intricacies of the products on offer and, we argue, behave sub-optimally due to behavioural patterns and perceptions regarding travel. In this commentary, we discuss issues that are unique to travel insurance products which may distort consumer perceptions and highlight a research agenda to address these issues and improve efficiency in the market.     

Tourists’ happiness: are there smart tourism technology effects?

The purpose of this study is to develop a research model demonstrating tourists’ value-seeking processes through the tourism services and travel experiences of a destination. The model suggests that tourist happiness is assessed by tourists’ perceived experiences, which are formed by two motivational values: smart tourism technology (STT) and destination value. Despite a large quantity of research attention on destination tourism, the relation between tourists’ destination experience and STT has been less enthusiastically studied. Therefore, this study proposes to test an integrated model with attributes of STTs and destination values that contribute to tourists’ life happiness. The results of this study, from a survey of 191 foreign tourists in Seoul, South Korea, indicate that tourists are likely to put more value on what they perceived from their destination travel experiences than what they perceived from their experiences with STT services when they evaluate their overall happiness. Theoretical and practical implications are discussed.     

Introducing Flow Theory to Explain the Interactive Online Shopping Experience in a Travel Context

Online travel commerce has evolved significantly from the initial sales of less-complex products such as airline tickets, accommodations, and car rentals, to include more complex products like vacation packages and cruises. Many online travel portals, however, have fallen behind in terms of creating a compelling online environment for customers. Online shopping behavior is becoming increasingly complex with the evolution of experiential and utilitarian shopping practices. These two types of practices have a significant effect on the formation of a customer's attitude towards a Web site and eventual purchase intention. The proposed model delineates the customer's preference towards a Web site within experiential and utilitarian purchase contexts when flow variables control, cognitive enjoyment, and focus are involved. This article may help online travel businesses identify unique Web features that satisfy the needs of both the experiential and utilitarian customer. Moreover, this model shows that a successful travel site could entice a utilitarian customer to engage in experiential site features that might result in positive attitude formation and consequent future revisits.     

Hong Kong Residents' Adoption of Risk Reduction Strategies in Leisure Travel

For decades risk has been identified as a major concern for traveling. Although some recent studies focused on studying consumers' perceived travel risks, only a few prior studies literally discussed consumers' risk reduction strategies in the context of travel-related services. To fill this gap, this study aims to investigate the travel-related risk reduction strategies that Hong Kong residents adopt to strengthen their confidence during leisure travel. This study also explores if travelers of different travel-related and sociodemographic characteristics adopt different risk reduction strategies. Among different risk reduction strategies—“purchase travel insurance,” “bring extra cash,” and “search for latest information about the destination”—are the ones which Hong Kong residents are likely to adopt when they travel for leisure. Results revealed that travel-related and sociodemographic characteristics influenced travelers' likelihood to risk reduction strategies differently. Specifically, travel experience of travelers, age, and household income displayed significant differences in the likelihood of adopting most of the risk reduction strategies.     

The Impact of Internet Travel Advertising Design,Tourists' Attitude,and Internet Travel Advertising Effect on Tourists' Purchase Intention: The Moderating Role of Involvement

Nowadays, Internet advertising has a great potential in increasing customer's purchase intention. According to the literature, involvement significantly influences customer's online behavior and purchasing process; however, much of the present literature concentrates on independent and/or dependent effect of involvement on online shopping. This study focuses on the moderating role of involvement to explore the relationships among Internet travel advertising content design, Internet travel advertising attitude, Internet travel advertising effect, and purchase intention. The study collects a total of 386 responses and the data are examined with structural equation modeling. The results demonstrate that involvement as a moderator had the greatest effect on the relationship between Internet travel advertising attitude and Internet travel advertising effect. Involvement also influenced the relationship between Internet travel advertising content design and Internet travel advertising attitude followed by the relationship between Internet travel advertising effect and purchase intention. In addition, several practical implications have been discussed.     

The Impact of the Internet on Travel Agencies in Hong Kong

Abstract

In recent years, the travel and tourism industry has begun to develop Internet applications more extensively. Many travel service suppliers, such as hotels and airline companies, already use the Internet as a direct channel for customer reservations. The integration of the Internet into the travel and tourism industry, however, presents a challenge towards the traditional role of travel agencies. The purpose of this study is to find out what impact the Internet has on travel agencies in Hong Kong. Outcomes of this research indicate that travel agents generally have positive attitudes towards Internet applications, and the potential threat-disintermediation-has not yet affected the travel industry. Travel agents believe that they can take advantage of the Internet technology to provide value-added services for their customers. Outcomes of the present study also indicate that there are significant relationships between company size, age and some Internet attributes. Travel agencies should therefore pay more attention to these attributes when adopting Internet technology.     

Effects of Gender Differences on Perceptions of Destination Attributes,Motivations, and Travel Values: An Examination of a Nature-Based Resort Destination

This study examines the perceptions of the potential tourist market to a nature-based resort destination from the gendered perspective. The research reveals that significant gender differences exist about the perceived importance of destination attributes and travel values when potential nature tourists consider destination choices. After controlling for demographic and travel behaviour variables, such as age, marital status, education, household income, preference of price quote and length of stay, most gender differences remain significant. In addition, more significant distinctions between men and women are demonstrated after controlling for age and income level. The study provides insights into gendered perceptions of nature-based tourism settings. Specific marketing implications are discussed in an attempt to successfully attract nature tourists and provide a high-quality nature destination experience.     

Travel Arrangements and the Distribution Behaviour of New Zealand Outbound Travelers

This paper contributes to the literature on tourism distribution by examining the distribution behavior of 547 New Zealand outbound travelers segmented by the way in which they have made their travel arrangements: package tourists, independent travelers, and an intermediate group, package plus. The results reveal differences among the three segments in terms of travel characteristics, information search, booking, and purchase, but not profile attributes or the influence of distribution on destination or product choice. Variations are also found in channel behavior across the four different sectors examined: transport to and at the destination, accommodation, and attractions, and activities.