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

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  • 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
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    References listed on IDEAS

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    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. 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.
    3. 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.
    4. 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.
    5. 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.
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    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
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    15. 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.
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