ASSESSING THE EFFECTS OF PERCEIVED QUALITY AND VALUE WITH SEM IN A WEBBASED TOURISM SERVICE ENVIRONM

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ASSESSING THE EFFECTS OF PERCEIVED QUALITY AND
VALUE WITH SEM IN A WEB-BASED TOURISM SERVICE
ENVIRONMENT

• Hao-Erl Yang and Wei-Kun Huang
• Department of Business Management
• Tatung University, Taipei, Taiwan
• November 7, 2008

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Outline

• Introduction
• Conceptual Framework
• Research Hypotheses
• Data Analysis and Results
• Discussion and Implications
• Conclusions

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I. Introduction

• Background
• The website system
• An effective tool in the promotion of
  destination.
• A major marketing and communication tool.
• (Aaron, 2006 Wu et al, 2008).

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I. Introduction

• Background
• Just having a Web presence is not enough.
• To attract new visitors and keep them loyal
• are more important to the tourism distribution
  channel.
• Loyal customers can bring many benefits to a
  firm.
• (Campo Yague, 2007 Skogland Siguaw, 2004).

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I. Introduction

• Background
• Two effective means of generating customer
  loyalty are
• To delight customers
• To deliver superior value
• (Oliver, 1999 Parasuraman Grewal2000).

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I. Introduction

• Research questions
• What are the determinants of tourist online
  loyalty?
• How do the determinants affect visitors
  satisfaction, and that, in turn, affect their
  intentions to purchase from or rebrowse the
  website?

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I. Introduction

• Objectives of this study
• To use E-S-Qual metric (Parasurama et al., 2005)
  to investigate how the service quality influences
  tourists behavioral intentions to revisit travel
  agency.
• To address the roles of perceived service quality
  and perceived value in affecting tourist
  satisfaction with and loyalty to the travel
  agency websites. .

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II. Conceptual Framework

• Tourists perceived value ? tourists
  satisfaction ? behavioral intentions
• (Yang Peterson, 2004Gallarza Saura,
  2005).

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II. Conceptual Framework

• Tourists perceived value ? tourists
  satisfaction? behavioral intentions
  (recommendations) ? behavioral
  intentions(recommendations)
• (Lee et al., 2007).

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II. Conceptual Framework

• Package tourists loyalty model
• (Campo Yague, 2007).

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II. Conceptual Framework
Proposed Conceptual Model
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III. Research Hypotheses

• Determinants of loyalty
• H1 Customer loyalty will be positively
  influenced by
• a. customer satisfaction
• b. perceived value
• c. perceived service quality.

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III. Research Hypotheses

• Determinants of satisfaction
• H2 Customer satisfaction will be positively
  influenced by
• a. perceived value
• b. perceived service quality.

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III. Research Hypotheses

• H3 Perceived value will be positively
  influenced by perceived service quality.
• H4 Customer loyalty will be positively and
  indirectly influenced by perceived service
  quality .
• H5 Customer loyalty will be positively and
  indirectly influenced by perceived Value.

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IV. Data Analysis and Results

• Measures of constructs
• To test the hypotheses this study relied on
  four sets of constructs
• ESQUAL efficiency (meff), fulfillment(mful),
  system availability (msys), and privacy(mpri),
  proposed by Parasuraman et al. (2005) were used
  as indicators to measure the travel agency
  website service quality.
• Pvalue functional value (mfva), overall value
  (mova), and emotional value (meva), the three
  factors proposed by Lee et al. (2007) were used
  to measure customer perceived value of visiting
  the travel websites.

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IV. Data Analysis and Results

• Measures of constructs
• Customer satisfaction four indicators (sat1 to
  sat4) adapted from Tsai et al. (2006) were used
  to assess customers general satisfaction
  compared with the time, efforts, and expectation
  in visiting the websites.
• Customer loyalty five indicators were used to
  measure customers favorable attitude toward an
  electronic business resulting in repeat buying
  behavior such as consumers intention to buy from
  a website and not change to another website,
  (Anderson, Srinivasan, 2003 Flavian, et al.,
  2005).

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IV. Data Analysis and Results

• Data collection
• Items, included in questionnaire, were validated
  in prior studies and used with minor wording
  modification to apply to an online shopping
  context.
• In this study, All items were measured on 7-point
  Likert-type scales, with anchors of 1 extremely
  disagree and 7 extremely agree.

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Data Analysis and Results

• Data collection
• Online Survey was conducted through announcing
  the survey message on blogs of the three most
  popular travel agency websites and travel
  discussion zones resulting in 407 usable
  questionnaires returned.

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IV. Data Analysis and Results

• Profile for participants
• A total of 407 usable questionnaires were
  obtained for analysis
• The participants included
• 57.5 business workers and 24.1 students
• 60.2 females
• 78.9 between the ages of 21 and 40
• 76.1 having at least a 4-year university
  education.

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IV. Data Analysis and Results

• Data examination
• No severe nonnormality, outlier, and
  multicollinearity were found implying that the
  data were appropriate and all variables were kept
  for multivariate analysis

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IV. Data Analysis and Results

• Results for the measurement model Convergent
  validity
• Three evidences indicate the adequate
  convergence (internal consistency) for all
  constructs in the model
• 1. All factor loading estimates were
  statistically significant and higher than 0.50.
• 2. The composite reliability of each construct
  from 0.889 to
• 0.923 exceeds the acceptable level of
  0.70.
• 3. All the variance extracted measures are
  from 0.621 for loyalty to 0.759 above the
  recommended 50 percent.

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IV. Data Analysis and Results

• Results for the measurement model Discriminant
  validity
• Discriminant validity is demonstrated when
  different instruments are used to measure
  different constructs, and the correlations
  between the measures of the different constructs
  are relatively weak.
• CFA provides two common ways of testing
  discriminant validity (Anderson and Gerbin,
  1988).
• 1.The chi-square difference test
• 2. Confidence interval test
• The results provided evidences of
  discriminant validity for the four constructs in
  the measurement model 16 indicators .

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IV. Data Analysis and Results

• Results for the structural model
• The theoretical structural equations model
  in the proposed model was tested using AMOS 6.0.
  The model fit indices showed that the model had a
  satisfactory fit.

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IV. Data Analysis and Results
Results for the structural model
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IV. Data Analysis and Results

• Results for the structural model

Hypotheses Results for the Proposed Conceptual
Model
ßStandardized path coefficient.
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IV. Data Analysis and Results
Results for the structural model
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IV. Data Analysis and Results
Standardized Indirect Effects and Total Effects
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IV. Data Analysis and Results

• Examination of Indirect Effects
• The indirect effect of service quality on
  loyalty amounts to 0.773 (plt0.001). Meanwhile,
  the direct effect of service quality on loyalty
  is not significant the completely mediating
  effect of perceived value and customer
  satisfaction on loyalty is evidenced.
• Besides, service quality, perceived value,
  and customer satisfaction explained 75.1 of the
  variance in the customer loyalty, indicating
  their importance for building customer loyalty.

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V. Discussion and Implications

• This study employed the generic and
  parsimonious scales, E-S-Qual scale to examine
  the value of service quality in predicting
  customer satisfaction and loyalty in a travel
  agency web-based service context.

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V. Discussion and Implications

• The findings of this study
• 1. The proposed integrated tourist loyalty model
  fits the data well and all the hypotheses are
  supported with significant estimated parameters.
• 2. Web-based tourism service quality has
  markedly positive effect on customer perceived
  value(with total effect of and satisfaction,
  which, in turn affect customer loyalty.

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V. Discussion and Implications

• The findings of this study
• 3. The most important factor in the model is
  service quality because it has largest total
  effect on perceived value (b0.831, plt0.001), on
  satisfaction (b0.776, plt0.001), and on loyalty
  (b0.729, plt0.001).

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V. Discussion and Implications

• The findings of this study
• 4.The mediating (indirect) effects of
  perceived value and satisfaction can play vital
  roles in engendering customer loyalty. Therefore,
  e-service quality is the key driver to foster
  customer loyalty through the mediating factors.
  

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V. Discussion and Implications

• The relative importance of the four
  dimensions of E-S-Qual are efficiency (0.883),
  fulfillment(0.861), system availability (0.801),
  and privacy (0.751) in order.
• The results are consistent with those found
  by Parasuraman et al. (2005), implying these four
  constructs can be assumed to apply to
  travel-related web sites.

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V. Discussion and Implications

• Perceived value has significant effects
  both on customer satisfaction and loyalty,
  implying that it can be considered as another key
  driver of customer satisfaction and loyalty.
• The results are consistent with those found
  by previous findings that customer loyalty can be
  generated through improving customer satisfaction
  and offering high product/service value in online
  banking context and web-based service quality
  studies (Yang Peterson, 2004 Fassanacht
  Kose, 2007).

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V. Discussion and Implications

• The practitioners should make good use of the
  opportunity to pay attentions to the four
  dimensions of E-S-Qual in order to enhance their
  web-based service quality. In so doing, the
  companies with the website presence can make
  visitors perceiving to have gained functional
  value, emotional value, and overall value as
  well.

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V. Discussion and Implications

• Contributions
• The findings constitute a contribution to, and
  extension of, the literature in tourism online
  shopping service management and highlight
  important role of service quality and value in
  the integrated model.
• The above findings, providing meaningful
  implications for the travel agencies with Web
  site.

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V. Discussion and Implications

• Limitations
• First, although the sample included actual online
  shoppers, it was not a random sample.
• Secondly, due to the use of self-reported scales
  to measure the variables, the common method bias
  may exist and have a threat to the analysis and
  interpretation of the data.

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ASSESSING THE EFFECTS OF PERCEIVED QUALITY AND
VALUE WITH SEM IN A WEB-BASED TOURISM SERVICE
ENVIRONMENT

• Hao-Erl Yang and Wei-Kun Huang
• THE END
• Thank you for your patience
• and
• welcome your comments