IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v15y2009i4p825-846.html
   My bibliography  Save this article

Customer Satisfaction with and Loyalty towards Online Travel Products: A Transaction Cost Economics Perspective

Author

Listed:
  • Yeong Gug Kim
  • Gang Li

Abstract

This study examines the usefulness of the theory of transaction cost economics (TCE) for the online travel market and investigates customer satisfaction and loyalty with the transaction cost over the Internet taken into account. Using structural equation modelling (SEM), the authors identify the relationships among the antecedents (uncertainty, personal security and buying frequency), the mediating variable (transaction costs) and endogenous constructs (customer satisfaction and loyalty). The findings suggest that the satisfaction and loyalty of customers purchasing travel products over the Internet are affected negatively by transaction costs, which are determined by uncertainty, personal security and buying frequency. Moreover, a significantly negative relationship is identified between buying frequency and customer satisfaction.

Suggested Citation

  • Yeong Gug Kim & Gang Li, 2009. "Customer Satisfaction with and Loyalty towards Online Travel Products: A Transaction Cost Economics Perspective," Tourism Economics, , vol. 15(4), pages 825-846, December.
    • Handle: RePEc:sae:toueco:v:15:y:2009:i:4:p:825-846
    DOI: 10.5367/000000009789955125
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/000000009789955125
    Download Restriction: no
    File URL: https://libkey.io/10.5367/000000009789955125?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bharadwaj, Neeraj & Matsuno, Ken, 2006. "Investigating the antecedents and outcomes of customer firm transaction cost savings in a supply chain relationship," Journal of Business Research, Elsevier, vol. 59(1), pages 62-72, January.
    2. Sriram, Ven & Krapfel, Robert & Spekman, Robert, 1992. "Antecedents to buyer-seller collaboration: An analysis from the buyer's perspective," Journal of Business Research, Elsevier, vol. 25(4), pages 303-320, December.
    3. Teo, Thompson S.H. & Yu, Yuanyou, 2005. "Online buying behavior: a transaction cost economics perspective," Omega, Elsevier, vol. 33(5), pages 451-465, October.
    4. Ping, Robert Jr., 2004. "On assuring valid measures for theoretical models using survey data," Journal of Business Research, Elsevier, vol. 57(2), pages 125-141, February.
    5. Ellinger, Alexander E. & Daugherty, Patricia J. & Plair, Quentin J., 1999. "Customer satisfaction and loyalty in supply chain: the role of communication," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 35(2), pages 121-134, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yixiao Li & Zhanda Zhang & Ruiqin Wang & Yuangao Chen, 2019. "Consumer Purchase Intention toward Crowdfunding Products/Services: A Cost–Benefit Perspective," Sustainability, MDPI, vol. 11(13), pages 1-21, June.
    2. João Romão & Bart Neuts & Peter Nijkamp & Eveline van Leeuwen, 2015. "Culture, Product Differentiation and Market Segmentation: A Structural Analysis of the Motivation and Satisfaction of Tourists in Amsterdam," Tourism Economics, , vol. 21(3), pages 455-474, June.
    3. Suhail Ahmad Bhat & Mushtaq Ahmad Darzi, 2020. "Online Service Quality Determinants and E-trust in Internet Shopping: A Psychometric Approach," Vikalpa: The Journal for Decision Makers, , vol. 45(4), pages 207-222, December.
    4. Akhmedova, Anna & Marimon, Frederic & Mas-Machuca, Marta, 2020. "Winning strategies for customer loyalty in the sharing economy: A mixed-methods study," Journal of Business Research, Elsevier, vol. 112(C), pages 33-44.
    5. Raed S. Algharabat & Nripendra P. Rana, 2021. "Social Commerce in Emerging Markets and its Impact on Online Community Engagement," Information Systems Frontiers, Springer, vol. 23(6), pages 1499-1520, December.
    6. Li, Jiayi & Luo, Sumei & Zhou, Guangyou, 2023. "Electronic payment, natural environment and household consumption: Evidence from China household finance survey," International Review of Financial Analysis, Elsevier, vol. 85(C).
    7. Chin-Lung Hsu & Judy Chuan-Chuan Lin, 2020. "Understanding continuance intention to use online to offline (O2O) apps," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 883-897, December.
    8. Talwar, Shalini & Dhir, Amandeep & Khalil, Ashraf & Mohan, Geetha & Islam, A.K.M. Najmul, 2020. "Point of adoption and beyond. Initial trust and mobile-payment continuation intention," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    9. Sanjeev Prashar & T. Sai Vijay & Chandan Parsad, 2017. "Effects of Online Shopping Values and Website Cues on Purchase Behaviour: A Study Using S–O–R Framework," Vikalpa: The Journal for Decision Makers, , vol. 42(1), pages 1-18, March.
    10. Lingling Gao & Kerem Aksel Waechter, 0. "Examining the role of initial trust in user adoption of mobile payment services: an empirical investigation," Information Systems Frontiers, Springer, vol. 0, pages 1-24.
    11. Soojung Kim & Yahua Bi & Insin Kim, 2021. "Travel Website Atmospheres Inducing Older Travelers’ Familiarity: The Moderating Role of Cognitive Age," IJERPH, MDPI, vol. 18(9), pages 1-17, April.
    12. Raed S. Algharabat & Nripendra P. Rana, 0. "Social Commerce in Emerging Markets and its Impact on Online Community Engagement," Information Systems Frontiers, Springer, vol. 0, pages 1-22.
    13. Lingling Gao & Kerem Aksel Waechter, 2017. "Examining the role of initial trust in user adoption of mobile payment services: an empirical investigation," Information Systems Frontiers, Springer, vol. 19(3), pages 525-548, June.
    14. Maria Francisca Blasco Lopez & Nuria Recuero Virto & Sonia San-Martín, 2018. "Local Food Shopping: Factors Affecting Users’ Behavioural E-Loyalty," Administrative Sciences, MDPI, vol. 8(3), pages 1-20, August.
    15. Abbas N. Albarq, 2021. "Effect of Web atmospherics and satisfaction on purchase behavior: stimulus–organism–response model," Future Business Journal, Springer, vol. 7(1), pages 1-8, December.
    16. Gao, Lingling & Bai, Xuesong, 2014. "Online consumer behaviour and its relationship to website atmospheric induced flow: Insights into online travel agencies in China," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 653-665.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Liying & Mao, Hongyi & Zhao, Taiyang & Wang, Valerie Lynette & Wang, Xiaodong & Zuo, Peng, 2022. "How B2B platform improves Buyers’ performance: Insights into platform’s substitution effect," Journal of Business Research, Elsevier, vol. 143(C), pages 72-80.
    2. Verhagen, T., 2008. "Investigating the impact of C2C electronic marketplace quality on trust," Serie Research Memoranda 0008, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    3. Teresa Barros & Paula Rodrigues & Nelson Duarte & Xue-Feng Shao & F. V. Martins & H. Barandas-Karl & Xiao-Guang Yue, 2020. "The Impact of Brand Relationships on Corporate Brand Identity and Reputation—An Integrative Model," JRFM, MDPI, vol. 13(6), pages 1-21, June.
    4. Huang, Samuel H. & Keskar, Harshal, 2007. "Comprehensive and configurable metrics for supplier selection," International Journal of Production Economics, Elsevier, vol. 105(2), pages 510-523, February.
    5. Kim, Myung-Ja & Chung, Namho & Lee, Choong-Ki, 2011. "The effect of perceived trust on electronic commerce: Shopping online for tourism products and services in South Korea," Tourism Management, Elsevier, vol. 32(2), pages 256-265.
    6. Justina GineikienÄ—, 2013. "Consumer Nostalgia Literature Review And An Alternative Measurement Perspective," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 4(2).
    7. Chandra Mahapatra, Subas & Bellamkonda, Raja Shekhar, 2023. "Higher expectations of passengers do really sense: Development and validation a multiple scale-FliQual for air transport service quality," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    8. Verhagen, Tibert & Meents, Selmar, 2007. "A Framework for Developing Semantic Differentials in IS research: Assessing the Meaning of Electronic Marketplace Quality (EMQ)," Serie Research Memoranda 0016, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    9. Cascón, J.M. & González-Arteaga, T. & de Andrés Calle, R., 2019. "Reaching social consensus family budgets: The Spanish case," Omega, Elsevier, vol. 86(C), pages 28-41.
    10. Bianchi, Constanza & Abu Saleh, Md., 2020. "Investigating SME importer–foreign supplier relationship trust and commitment," Journal of Business Research, Elsevier, vol. 119(C), pages 572-584.
    11. Nathaniel Boso & Paige S Carter & Jonathan Annan, 2016. "When is brand orientation a useful strategic posture?," Journal of Brand Management, Palgrave Macmillan, vol. 23(4), pages 363-382, July.
    12. Silvina Santana & Sandra Loureiro, 2010. "Assessing Benefits And Risks Of Online Shopping In Spain And Scotland," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 161-172.
    13. Kyoko Fukukawa & Christine Ennew, 2010. "What We Believe Is Not Always What We Do: An Empirical Investigation into Ethically Questionable Behavior in Consumption," Journal of Business Ethics, Springer, vol. 91(1), pages 49-60, February.
    14. Ji, Chen & de Felipe, Isabel & Briz, Julian & Trienekens, Jacques H., 2012. "An Empirical Study on Governance Structure Choices in China´s Pork Supply Chain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(2), pages 1-32, May.
    15. Adomako, Samuel & Opoku, Robert A. & Frimpong, Kwabena, 2018. "Entrepreneurs' improvisational behavior and new venture performance: Firm-level and institutional contingencies," Journal of Business Research, Elsevier, vol. 83(C), pages 10-18.
    16. Fecke, Wilm & Danne, Michael & Mußhoff, Oliver, 2018. "E-commerce in agriculture: The case of crop protection product purchases in a discrete choice experiment," DARE Discussion Papers 1803, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    17. Ana B. Casado & Francisco J. Mas & Hans Kasper, 2006. "Explaining Satisfaction In Double Deviation Scenarios: The Effects Of Anger And Distributive Justice," Working Papers. Serie EC 2006-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    18. Mimouni-Chaabane, Aîda & Volle, Pierre, 2010. "Perceived benefits of loyalty programs: Scale development and implications for relational strategies," Journal of Business Research, Elsevier, vol. 63(1), pages 32-37, January.
    19. Sharma, Purva & Srivastava, Ankur & Sharma, Veenu & Singh, Nidhi & Nijjer, Shivinder, 2024. "Understanding consumer repurchase intentions towards luxury retail brands: Evidence from an emerging market," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    20. Diamantopoulos, Adamantios & Arslanagic-Kalajdzic, Maja & Moschik, Nicole, 2020. "Are consumers' minds or hearts guiding country of origin effects? Conditioning roles of need for cognition and need for affect," Journal of Business Research, Elsevier, vol. 108(C), pages 487-495.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:15:y:2009:i:4:p:825-846. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.