Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Above 50 35 - 49 .496* .122 .000 .18 .81
18 - 25 Above 50
-.061 .143 .973 -.43 .31
18 - 25 -.155 .145 .710 -.53 .22
35 - 49 -.058 .099 .936 -.31 .20
Above 50 -.167 .100 .344 -.43 .09
18 - 25 -.277* .098 .026 -.53 -.02
26 - 34
Above 50 .058 .099 .936 -.20 .31
18 - 25
26 - 34 -.109 .117 .786 -.41 .19
35 - 49 -.219 .115 .227 -.51 .08
Tukey .344 -.09 .43
HSD
.786 -.19 .41
Shopper's 26 - 34 .167 .100 .781 -.41 .19
Response
35 - 49 .109 .117
Above 50 -.110 .116
.277* .098 .026 .02 .53
.219 .115 .227 -.08 .51
.110 .116 .781 -.19 .41
*. The mean difference is significant at the 0.05 level
Source: SPSS Output
The ANOVA Test states for all the independent variables, the age group18 – 25 is having significant
difference with all the other age category and for the dependent variable Shopper’s Response 18 – 25
categories are having only difference with the Above 50 category while rest of the categories are not having
any significant difference with the age group.
250
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
DESCRIPTIVE STATISTICS
TABLE 4: Descriptive Statistics
Physical Aspects N Minimum Maximum Mean Std. Deviation
Reliability 311 3 5 4.09 .535
Personal Attention 311 2 7 5.50 .853
Shopper's Response 311 2 7 5.58 .839
Valid N (listwise) 311 3 6 5.48 .642
Source: SPSS Output 311
Most of the respondents under the study have agreed that Physical Aspects has played an important role in
determining the shopper’s experience. It was also found that the variables Reliability and Personal Attention
have a positive influence in determining shopper’s experience since their mean values are 5.5 and 5.58
respectively. The Standard Deviation for all the variable are 0.535, 0.853 and 0.839 respectively. The
Dependent Variable Shopper’s Response is also showing a positive influence towards revisiting the mall
since, it is showing a mean value of 5 which is suggesting the same and the standard deviation is showing
the value 0.642.
RELIABILITY AND VALIDITY
Table 5: Cronbach’s Reliability Analysis
Constructs Cronbach’s alpha
Physical Aspects 0.732
Reliability 0.772
Personal Attention 0.941
Shopper’s Response 0.940
Source: SPSS Output
251
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Since, the values are above 0.7, the values The regression analysis suggests that 12.1%
can be considered as valid and can be used influence is made on the dependent variable,
for further statistical calculations. The Shopper’s Response by the Physical Aspects of
variables were already tested and proven to the shopping mall and the beta value shows that
be valid from the previous studies. there will be a change of 0.348 unit in the
dependent variable when there is a unit change in
the independent variable Physical Aspects.
HYPOTHESES TESTING Variable - Reliability
Table 8: Model summary of reliability
Variable - Physical Aspects Std.
Table 6: Model summary of physical aspects Model R R Square Adjusted Error of
R Square the
Adjusted Std. Estimate
R Error of
Model R R 1 .340a .116 .113 .604
Square Square the
Estimate
Predictors: (Constant), Reliability
1 .348a .121 .118
.603 Source: SPSS Output
Predictors: (Constant), Physical Aspects
Source: SPSS Output
Table 7: Regression Analysis of Physical
Aspects Table 9: Regression Analysis of
Standardize Reliability
Unstandardized Unstandardiz Standardiz
ed ed
Model d Coefficients Coefficient t Sig. Coefficients
s Coefficient
Model s t Sig.
Std.
B Error Beta Std.
Error
(Constant) 14.32 .00 B Beta
1 00
3.778 .264 (Constan 18.19 .00
t) 50
Physical .00 4.075 .224
Aspects 0
.417 .064 .348 6.516 Reliabilit .00
y 0
Dependent Variable: Shopper's Response .256 .040 .340 6.360
Source: SPSS Output Dependent Variable: Shopper's Response
Source: SPSS Output
252
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Table 8 and 9 states that Shoppers’s Response is response because of the independent variable
influenced by 11.6% as it can be seen in the R Personal Attention and the Beta value states that
Square value and the Beta value suggests that there will be a change of 0.532 unit in the
0.340 unit change in the dependent variable is dependent variable as a result of unit change in
caused when there is a unit change in the the independent variable Personal Attention.
independent variable Reliability.
Variable -Personal Attention
Table 10: Model Summary of Personal
Attention
Model R R Adjusted Std. Error of
Square R Square the Estimate
1 .532a .283 .280 .544
Predictors: (Constant), Personal Attention
Source: SPSS Output
Table 11: Regression Analysis of
Personal Attention
Model Unstandardiz Standardiz t Sig.
ed ed
Coefficients Coefficient
s
B Std. Beta
Error
(Constan 3.214 .208 15.46 .00
t) 10
1Persona .532 11.03 .00
l .407 .037 10
Attention
a. Dependent Variable: Shopper's
Response
Source: SPSS Output
Table 10 and 11 depicts that 28.3% influence is
present in the dependent variable shopper’s
253
INFERENTIAL STATISTICS Au Virtual International Conference 2020
SEM MODEL Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
because of a unit change in the Physical
Aspects factor. For Reliability, the Beta
value explains that for a unit change in the
Reliability variable, there will be 0.16 unit
Source: WARP Output change in the dependent variable Shopper’s
Response. Similarly, for the independent
FIGURE 2: SEM Model of the Variables variable Personal Attention, a change of one
unit will lead to change of 0.75 unit in the
The p value in the SEM model shows that all dependent variable Shopper’s Response.
the independent variables are having FINDINGS
significant influence over the dependent According to the Simple Regression Analysis and
variable Shopper’s Response as all the p SEM Model, it is found out that:
values are less than 0.05. Beta value of Mall service quality factors has a positive impact
Physical Aspects (0.12) states that there will on Shopper’s Response.
be 0.12 unit change in the dependent variable Mall service quality factors determined by the
254
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Physical Aspects such as Ambient factors and For the variable Shopper’s Response, 18 – 25 age
Layout has a positive impact on Shopper’s group is having a significant difference only with
Response the 4th age group (Above 50)
Mall service quality determined by the Reliability The 2nd and 3rd age category (26 – 34 & 35 – 49)
factor has a positive impact on Shopper’s are showing no significant difference with all the
Response other age groups
Mall service quality determined by the Personal The Above 50 age category is having a significant
Attention factor has a positive impact on difference only with the 18 – 25 age categories
Shopper’s Response, hence rejecing the null SUGGESTION
hypotheses. The service quality factors of the shopping mall
The Demographic study conducted by using should be in a way that it should give more
ANOVA Analysis states that: significance to the factors such as Physical
For Physical Aspects, the age group 18 – 25 is Aspects, Reliability and Personal Attention since,
showing a significant difference only with the the study proves that all these are having positive
2nd and 3rd age groupcategories impact on the shopper’s response. The
The age group 26 – 34 and 35 – 49 are showing a management should adopt new marketing
significant difference only with the 18 – 25 age methods in these areas so that positive impact on
categories. shopper’s response can be achieved. The
Above 50 age categories are having no significant management of the shopping mall should also
difference with any of the age groups. have to prioritize the needs of different age
For Reliability factor, the age group 18 – 25 is groups coming to the mall as significant
showing a significant difference with all the age difference between the groups are found through
categories the study and it can help the stores in malls to
All the other categories (2,3,4) are showing a specialize in personalization. Future research can
difference only with the 18 – 25 age group also focus on entertainment facilities and their
For the Personal Attention factor, the age group impact on drawing people to malls.
18 – 25 is showing a significant difference with CONCLUSION
all the age categories The study actually demonstrates that all the
All the other categories (2,3,4) are showing a service quality factors offered by the shopping
difference only with the 18 – 25 age group mall are showing a positive impact on the
255
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Shopper’s Response based on the Regression Retail & Distribution Management 35, 6, 421-
Analysis. The results of the study are quite 442.
similar to the results of the previous studies Gilboa, S., & Yavetz, I. V. (2013). Shop until you
conducted in US and Korea. drop? An exploratory analysis of mall
References experiences. European Journal of Marketing
Auka, & Daniel, O. (2012). Service quality, 47,1-2, 239-259.
satisfaction, perceived value and loyalty among Grewal, D., Levy, M., & Kumar, V. (2009).
customers in commercial banking in Nakuru Experience management in retailing: An
Municipality, Kenya. African Journal of organizing framework. Journal of Retailing 85, 1,
Marketing Management, 4 (5), 185-203. 1-14.
Bloch, P. H., Ridgway, N. M., & Dawson, S. A. Hinson, Robert, E., Dorson, T. A., & Kastner, A.
(1994). The shopping mall as consumer habitat. A. (2012). Consumer attitude towards shopping
Journal of Retailing 70, 1, 23-42. malls in Subsaharan Africa: An exploration of the
Calder, B. J., Issac, M. S., & Malthouse, E. C. ‘new’ retail format in Ghana. African Journal of
(2015). How to captureconsumer experiences: A Business & Economic Research,7 (2/3), 97-134.
context-specific approach to measuring Lehtonen, T., & Maenpaa, P. (1997). Shopping in
engagement. Journal of Advertising Research 56, the East Center Mall. in P. Falk, & C. Campbell,
1, 39-52. In The Shopping Experience. London.
Chebat, J.-C., El Hedhli, K., & Sirgy, M. J. MacLeod, R. B. (1974). Phenomenology: A
(2009). How does shopper-based mall equity challenge to experimental psychology. New
generate mall loyalty? Journal of Retailing and York: J. Norton Publishers.
Consumer Services, 50-60. Oliver, R. L. (1993). Assessing the
Diallo, M. F., Diop-Sall, F., Djelass, S., & dimensionality and structure of the consumption
Godefroit-Winkel, D. (2018). Howshopping mall experience: Evaluation, feeling and satisfaction.
service quality affects customer loyalty across Journal of Consumer Research. 20, 451-466.
developing countries: The moderation of the Rabbanee, K., F., Ramasehan, B., Chen, W., &
cultural context. Journal of International Vinden, A. (2012). Effects of store loyalty on
Marketing, 69-84. shopping mall loyalty. Journal of Retailing and
Fiore, A. M., & Kim, J. (2007). An integrative Consumer Services, 19 (3), 271-278.
framework capturing experiential and utilitarian Rodriguez, A. (2015). “Can data save the mall?
shopping experience. International Journal of Advertising Age. https://adage.com/article/cmo-
256
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
strategy/data-save-mall/297697
Shilpa, B., & Rajnish, J. (2013). Measuring retail
customer experience. International Journal of
Retail & Distribution Management 41, 790-804.
Wakefield, K., & Baker, J. (1988). Excitement at
the mall: Determinants and effects on shopping
response. Journal of Retailing.74(4), 515-539.
Zeithaml, & Valarie, A. (1988). Consumer
perceptions of price, quality, and value: A
conceptual model and synthesis of research.
Journal of Marketing, 52 (3), 2-
257
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Factors Influencing Customer Satisfaction in the Airline Industry: The
Case of M Airways
Thidarat Tangthaweetham1, Piyathida Praditbatuga2 and Santhiti Treetipbut3
123Assumption University of Thailand, Bangkok, 10240 Thailand Corresponding Author Email:
[email protected]
Abstract
This article is a research-based study, aiming at determining whether service quality, in terms of airline
tangibles, terminal tangibles, personnel, empathy, and image, influence customer satisfaction towards M
Airways. The sample of this study was first, and business-class passengers of M Airways. The study
employed the questionnaire as a primary research instrument to collect data from 100 respondents. The
Multiple Linear Regression (MLR) analysis of image, terminal tangibles, airline tangibles, empathy, and
personnel have proven to be statistically significant in influencing customer satisfaction [r2 = .502, Adjust
r2 = 0.476, F = 18.978, p = .000]. Moreover, image had the strongest influence on customer satisfaction,
followed by terminal tangibles, airline tangibles, empathy, and personnel, respectively. The analyzed results
revealed that if M Airways could elevate customer satisfaction, by improving the level of positive
perception on the airline image, followed by terminal tangibles, airline tangibles, empathy, and personnel,
respectively.
Keywords: Service quality, Airline tangibles, Terminal tangibles, Personnel, Empathy, and Image, M
Airways, and Customer satisfaction
258
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Introduction personnel, empathy, and image all significantly
influence overall customer satisfaction. The examples
The airline industry is known for its fast changing and of the past studies applying the airline service quality
volatile environment, with customer demands and comprised Kozak et al., (2003) are Ali, et al. (2015),
expectations also changing across different airlines. and Hussain, and Ekiz (2006).
Service quality is a consideration over customers’
perceptions of the service provider’s performance to Customer Satisfaction
assess service quality (Cronin and Taylor, 1994). M Customer satisfaction has traditionally been regarded
airways is one of the airlines in the Middle East. M as a fundamental determinant of long- term consumer
Airways needs to focus on service-providing in order behavior (Oliver, 1980; Yi, 1990). The more satisfied
to improve its services and products and become one customers, the greater degree of company success
of the best airlines, which provide long haul flights. (Anderson and Sullivan, 1993; Fornell, 1992), and the
Since M Airways provides service during the flight, more financial benefits to the firms they will be
and within the terminal lounge. It is important to (Fornell, 1992). Accordingly, the company seeks to
understand customer perception towards M Airways’ manage and increase customer satisfaction.
service, both in the terminal lounge and on their
flights. The respondents that were relevant to this Service Quality and Customer Satisfaction
research were passengers of M Airways who were able Customer satisfaction is a significant object for service
to use its airport lounge. Moreover, the results from success. Service quality related to customer
Customer Satisfaction Survey (CSS) of M Airways satisfaction (Churchill and Suprenant, 1982) because
showed the slippage of the level of its customer service can lead to customer satisfaction in the
satisfaction. As a result, this objective of this research business (Bitner and Hubbert, 1994). Service quality
is to identify the influence of airline service quality on is one of the significantfactors compared to the other
customer satisfaction towards M Airways. variable in the service industry (Roest and Pieters,
1997). Nowadays, it was outlined for a service
Literature Review business to concern over the service quality (Anderson
The literature review in this article comprises 1. and Fornell, 1992; Troye, Ogaard, Henjesand, 1995);
Airline Service Quality, 2. Customer Satisfaction, 3. moreover, the emotional toward corporation also
Service Quality and Customer Satisfaction. related to service quality as well (Giese and Cote,
1999; Liljander and Strandvik, 1997; Rust and Oliver,
Airline Service Quality 1994). In general, past research has demonstrated that
The original airline service quality instrument was satisfaction is strongly associated with service quality
developed by Kozak, Karatepe, and Avci (2003), (Bitner, 1990; Cronin and Taylor, 1992; Dabholkar
which was used to measure the service quality of and Thorpe, 1994; Fornell, 1992). In tourism, a strong
North Cyprus Airline. Initially, the study used five relationship between satisfaction and service quality
dimensions of service quality based on the was reported by Pritchard and Howard (1997). Selnes
SERVQUAL model to measure the influence of (1993) concluded that customer satisfaction might be
service quality over customer satisfaction, but the driven by service quality, and as such it is important
results showed the discrepancies. Therefore, Kozak et for airlines to understand that customer satisfaction is
al., (2003) developed a new airline service quality based on service quality, to improve services in
model using airline tangibles, terminal tangibles, terminals and on flights.
personnel, empathy, and image (AIRQUAL) to
measure service quality of the airline. The results
revealed that airline tangibles, terminal tangibles,
259
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Conceptual Framework effect of service quality (airline tangibles, terminal
Figure 1 is a conceptual framework of this research tangible, personnel, empathy, and image) on customer
study. The linkage between airline service quality and satisfaction.
passenger satisfaction is based on the studies of Ali, et
al. (2015), Hussain, and Ekiz (2006), and Nadiri et al. Findings
(2008). Airline service quality includes airline The results from MLR showed that airline tangible.
tangibles, terminal tangibles, personnel, empathy, and terminal tangible, personnel, empathy, and image had
image, and is based on the studies of Ali, et al. (2015), a significant influence on the customer satisfaction [r2
and Hussain, and Ekiz (2006). = 0.502, Adjust r2 = 0.476, F = 18.978, p = 0.000].
Therefore, the null hypothesis was rejected. Moreover,
image (b = .661) had the strongest influence on
customer satisfaction, followed by terminal tangibles
(b = .604), airline tangibles (b = .529), empathy (b =
.454), and personnel (b = .421), respectively.
Figure 1: Conceptual Framework Discussions and Recommendations
Research Hypothesis The results from this research were supported by Ali
H0: Service quality (airline tangibles, terminal et al., (2015) who posited that airline tangibles,
tangibles, personnel, empathy, and image) does not terminal tangibles, personnel, empathy, and image,
influence customer satisfaction towards M Airways influence customer satisfaction. The same assertion
Ha: Service quality (airline tangibles, terminal was made by many other academics such as Hussain,
tangibles, personnel, empathy, and image) does and Ekiz (2006), and Nadiri et al. (2008), all asserted
influence customer satisfaction towards M Airways that airline tangibles, terminal tangibles, personnel,
empathy, and image, influence customer satisfaction.
Research Methodology In terms of the recommendations of the study based on
This research-based article employed a quantitative the data, if M Airways would like to increase its level
method for data collection from the passengers of M of customer satisfaction, it has to focus most on
Airways. The target populations of this study were improving the level of positive perception on the
customers of M Airways. The sample consisted of first airline image, followed by terminal tangibles, airline
and business class tangibles, empathy, and personnel, respectively. For
passengers who used the lounge’s service at the the airline image, it is recommended for the airline to
Middle East International Airport. According to Green promote and present the airline to differentiate itself
(1991), the minimum required sample size of this from other airlines, such as “best business and first-
research was 99. The convenience sampling method class airline from the Middle East” to further boost its
was applied to collect data from 100 respondents at the outstanding image. The airline may improve the level
in the lounge at the Middle East International Airport. of positive perception on the terminal tangible in terms
The questionnaire items comprised airline tangibles, of security control in lounge. Since this has never been
terminal tangibles, personnel, empathy, image, and used before and as such, customers may trust the level
customer satisfaction were based on the previous of security after being aware of the processes and how
research of Ali, et al. (2015). Multiple Linear these affect them. The airline may therefore need to
Regression (MLR) analysis was used to determine the post more security information in the lounge to inform
customers. Regarding airline tangibles, M Airways
may consider improving the cleanliness of the seats
260
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
and toilets, comfort of the seats, and the quality of versus SERVQUAL: Reconciling performance-based
catering on the plane. For the empathy and perceptions- minus-expectations measurement of
service quality. Journal of Marketing, 58(1), 125-
dimension, it is recommended for the airline to 131. https://doi.org/10.2307/1252256 Dabholkar P.
improve the transportation between city and airport, A., & Thorpe D. I. (1994). “A
compensation in term of loss and hazard, and comprehensive framework for service quality: An
punctuality of the departures and arrivals. Finally, the investigation of critical conceptual and measurement
airline should also improve its human resources by issues through a longitudinal study”. Journal of
improving employees’ general attitude, and error-free Retailing, 76(2), 139-173.
reservations and ticketing transactions. Ekiz, E., Hussain, K. & Bavik, A. (2006). Perceptions
of service quality in North Cyprus national airline,
Reference tourism and
Ali F., Dey B. L., & Filieri R., (2015)."An assessment hospitality industry 2006. Proceedings of 18th
of service quality and resulting customer satisfaction Biennial International Conference. 778-790.
in Pakistan International Airlines". International
Journal of Quality & Reliability Management, 32 (5), Fornell, C. (1992). A national customer satisfaction
486 – 502. barometer: The Swedish experience. Journal of
Anderson, E. W., Fornell, C., & Lehmann, D. R. Marketing, 56, 6–21
(1994). Customer Satisfaction, Market Share, and Giese, J. L. & Cote, J. A. (1999). Defining consumer
Profitability: Findings from Sweden. Journal of satisfaction. Academy of Marketing Science Review,
Marketing, 53-66. 1, 1-27.
Anderson, E.W. & Sullivan, M.W. (1993). The Green, S.B. (1991). How many subjects does it take to
Antecedents and Consequences of Customer do a regression analysis? Multivariate Behavioral
Satisfaction for the Firms. Marketing Science, 12, Research, 26, 499-510.
125– Kozak, N., Karatepe, O.M. & Avci, T. (2003).
143.http://dx.doi.org/10.1287/mksc.12.2.1 25 “Measuring the quality of airline services: evidence
Bitner, M.J. (1990). ‘‘Evaluating service encounters; from Northern Cyprus”. Tourism Analysis, 8, 75‐87.
the effects of physical surroundings and employee Liljander, V., & Strandvik, T. (1997). Emotions in
responses’’. Journal of Marketing, 54, 69-82. service satisfaction. International Journal of Service
Bitner, M.J. & Hubbert, A.R. (1994). “Encounter Industry Management, 8, 148–
satisfaction versus overall satisfaction versus service 169.
quality: the consumer’s voice”. in Rust, R.T. and Nadiri H., Hussain K., Ekiz E. H., & Erdoğan S.,
Oliver, R.L. (Eds), Service Quality: New Directions in (2008). "An investigation on the factors influencing
Theory and Practice, Sage Publications, Thousand passengers' loyalty in the North Cyprus national
Oaks, CA. airline". The TQM Journal, 20(3), 265 – 280.
Churchill, Gilbert A. Jr. & Carol Surprenant (1982). Oliver, R.L. (1980). "A Cognitive Model of the
"An Investigation into the Determinants of Customer Antecedents and Consequences of Satisfaction
Satisfaction," Journal of Marketing Research, 491 - Decisions", Journal of Marketing Research, 17
504. (September), 46-
Cronin, J. Joseph & Taylor, S. A. (1992). “Measuring 49.
service quality: A re- examination and extension”. Parasuraman, A., Ziethaml, V., & Berry, L. (1994).
Journal of Marketing, 56 (3), 55-68. "Refinement and reassessment of the SERVQUAL
Cronin, J. J., & Taylor, S. A. (1994). SERVPERF scale". Journal of Retailing, 67, 420-50.
261
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Pritchard, M. P. & Howard, D. (1997). “The loyal Satisfaction and Loyalty", European Journal of
traveler: Examining a typology of service patronage”. Marketing, 27(9), 19-35.
Journal of Travel Research, 35, 4, 2–10. Troye, S. V., Skalpe, O., Ogaard, T., Larsen, K. F.,
Roest H., & Pieters R., (1997). "The nomological net Henjesand, I. J., Kvitastein, O. A., & Risholm, N.
of perceived service quality", International Journal of (1995). Investigation of customer satisfaction in
Service Industry Management, 8(4), 336-351. student food service: An example of student cafeteria
Rust, R. T. & Oliver, R. L. (1994). Service quality: in NHH. The Economies of Service Quality, NHH,
insights and managerial implications from the frontier Bergen.
in R. T. Rust and R. L. Oliver (eds.) Service Quality: Yi, Y. (1990). "A Critical Review of Consumer
New Directions in Theory and Practice: 1-19. Satisfaction," in Review of Marketing
California: Sage. 1990, ed. Valarie A. Zeithaml, Chicago;
Selnes, F. (1993). "An Examination of the Effect of American Marketing Association, 68-123
Product Performance on Brand Reputation,
.
262
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
An Empirical Research on Factors influencing Customer Satisfaction and
Behavioral Intention to Repurchase towards Fast Food Restaurant in Dhaka,
Bangladesh.
Syeda Karishma Mumtaz1 and Sirion Chaipoopirutana2
Graduate School of Business, Assumption University, Bangkok, 10240, Thailand
Email: [email protected], [email protected]
Abstract
The purpose of this research is to investigate the factors influencing customer satisfaction and behavioral
intention to repurchase of customers towards KFC restaurant in Dhaka, Bangladesh. Empirical testing is
conducted to deduce the result of this research. Data were collected from 450 respondents who have/had
dining experience at KFC restaurant Dhaka, Bangladesh by using self-administered questionnaire. Multiple
Linear regression (MLR) method was used for analysis and SPSS software was used to interpret the result.
The researcher used judgement, quota, and convenience sampling to deduce the target population and
location. It was revealed from the study that service quality in terms of tangible, reliability, responsiveness,
assurance, and empathy has no significant influence on customer satisfaction. Perceived value in terms of
hedonic and utilitarian value, price, food quality, physical environment quality has significant influence on
customer satisfaction. Utilitarian value is a better predictor of customer satisfaction because of high beta
value. Price, customer satisfaction and perceived value has significant influence on behavioral intention to
repurchase. Customer satisfaction is a better predictor of behavioral intention to repurchase because of high
beta value.
Keywords-KFC; Bangladesh; Restaurant industry; Service Quality; Perceived value; Hedonic; Utilitarian;
Price; Food Quality; Customer Satisfaction; Behavioral intention to repurchase
Introduction preferred good lower-priced and convenient food
options. The same is applicable for the Bangladeshi
In this era, behavioral intention to repurchase has been economy which gives rise to this research.
considered as a vital factor as it defines the implication Therefore, the researcher targets the customer who
of the future behavior of customers in term of using or have/had dining experience in KFC restaurant which is
withdrawing action towards an industry. This notion was one of the leading international fast-food franchise
supported by many scholars and researchers. Chen restaurants in Bangladesh for the study.
(2011) denoted behavioral intention to repurchase as
final responses which are generated from customers Research Objectives: The purpose of this research is to
knowledge regarding the quality of product or service investigate, examine and understand the factors
influencing their future intentions. Colgate and Lang influencing behavioral intention to repurchase of KFC
(2001) clarified behavioral intention to repurchase is restaurant in Dhaka, Bangladesh. Based on previous
deduced via a cognitive decision-making process to empirical studies, the researcher focuses on 7 variables
determine the future usage of product/service. The and develop four hypotheses for this study. The
global fast-food restaurant market has grown over years. dependent variable of this study is behavioral intention
Consumers increase spending on luxuries such as dining to repurchase and 6 independent variables such as price,
out because of an increase in disposable income over the service quality, food quality, physical environment
period. In addition, fast food operators during this period quality, perceived value and 1 mediating variable
surpassed full-service restaurants as many consumers
263
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
customer satisfaction. Therefore, the objective of this menu purity, flavor and options, and such things are the
research is denoted as follows: main determinant of customer enjoyment. Gilbert et al.
To examine the influence of service quality in terms of (2004) reported that the main elements of attracting
tangible, reliability, responsiveness, assurance, and customers to revisit the restaurant are food quality and
empathy on customer satisfaction of KFC restaurant clean ingredients. Mattila (2001) investigated that
To investigate the influence of perceived value in terms quality of food is the restaurant's most influential
of hedonic and utilitarian value on customer satisfaction determinant and the secret to determining revisit
of KFC restaurant intentions.
To analyze the influence of price, service quality, food
quality, physical environment quality and perceived Physical Environment Quality: Physical environment
value on customer satisfaction of KFC restaurant according to Lee and Jeong (2012) is classified as the
To test the influence of price, customer satisfaction and environment that service providers have created,
perceived value on behavioral intention to repurchase of emphasizing on overall design, layout and decoration.
KFC restaurant. Kotler (1973) comprehended the meaning of physical
environment/ ambience to be same with the meaning of
Literature Review customer perceived five human senses such as hearing,
sight, smell, touch, and taste in terms of the restaurant
Behavioral Intentions to Repurchase: Zeithaml et al. sector. Donovan et al. (1994) also insisted that
(1996) referred future repurchase intention as being atmosphere or physical environment is found to be the
linked to a customer signal whether the customer wishes dispensable ingredient in restaurant sector due to the
to participate or refrain from the product or service. customer’s sensation towards service industry which is
Additionally, future behavioral intent was also defined correlated with consumers purchase intention.
by Ranaweera and Prabhu (2003) as the future Perceived Value: Based on Ryu et al. (2008)'s analysis,
inclination of customers to persist with or proceed the perceived value is denoted as the consumer's estimation
same product or service supplier. of the perceived benefit from the quality of service and
Price: Price as a service factor for restaurants is a dual- the charges paid for service acquisition. Moreover,
dimensional parameter which is critically viewed as Payne et al. (2001) explained that perceived value is the
having two components: a monetary value and composition of product or service value, which retain
subjectively an established or non-monetary value consumer’s assessment of receiving value. On the other
specified by Han and Ryu (2009). Price also plays an hand, Monroe (1990) clarified that the perceived value
important role in showing customer satisfaction because is determined by the consumer's rationale based on its
of its capacity to attract or repel clients according to ability to be implemented as the customer approach and
Fornell (1996) along with Monroe (1990). outcome.
Service Quality: Zeithaml (1988) denoted that service
quality in terms of the restaurant industry may be Hedonic Value: A hedonic value is an emotional
defined as the evaluation of customer’s perception of the response and significantly influences customer
restaurant's service. On the other hand, service quality enjoyment and satisfaction (Babin et al., 1994). In
has been analyzed and associated with customer general, emotional feeling can be considered the most
satisfaction and revisiting the restaurant as well as the important variable in achieving customer satisfaction
achievement and benefit of restaurant business industry with service satisfaction mentioned by Turel et al., 2007.
(Sureshchander et al., 2002). Parasuraman et al. (1988)
described quality of service as the discrepancy between Utilitarian Value
the perceptions of customers of services provided by a Babin et al. (1994) stated that utilitarian value is relevant
specific company and their expectations of companies to the specific, valuable and cost-effective functional
providing such services attitude towards products or services. Also, utilitarian
value represents behavioral consumption and clarifies as
Food Quality: Lau et al. (2004) mentioned food quality being functional or task oriented (Batra and Ahtola,
is associated with three critical factors such as food 1990). Utilitarian value is combined with consumer's
264
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
emotional attitude and utilitarian elements are comfort, H2o: Perceived value in terms of hedonic and utilitarian
economic value, quick service and less money waste. value has no significant influence on customer
(Ha and Jang, 2010). satisfaction.
H2a: Perceived value in terms of hedonic and utilitarian
Customer Satisfaction: Customer satisfaction can be value has a significant influence on customer
defined as a perception and sensation of the customers satisfaction.
in response to a favorable or unfavorable service they For hypotheses 1 and 2, the researcher uses Figure 2
have encountered (Gilberat et al., 2004). According to illustrated below to develop the hypotheses.
Kotler (2000) described satisfaction for customers in
terms of the restaurant industry is regarded as the H1
perception of customers whether they are pleased with
what develops from the dining experience. Figure 2: Conceptual Framework for Hypothesis 1 and 2
For hypotheses 3 and 4, the researcher uses Figure 3
Conceptual Framework and Hypothesis illustrated below to develop the hypotheses.
In this conceptual framework, there are 5 independent H4
variables such as service quality in terms of tangible,
reliability, responsiveness, assurance, and empathy.
price, food quality, physical environment quality and
perceived value in terms of hedonic and utilitarian value.
The mediating variable of the conceptual framework is
customer satisfaction. Finally, the dependent variable of
this study is behavioral intention to repurchase.
H3 H4
H3
H3
Figure 1: Conceptual Framework H3
H4
Research Hypothesis
The hypothesis derived for this study are as follows: Figure 3: Conceptual Framework for Hypothesis 3 and 4
H1: Service quality in terms of tangible, reliability,
responsiveness, assurance, and empathy has no H3o: Price, Service quality, Food quality, Physical
statistical influence on customer satisfaction. environment quality and Perceived value has no
H1a: Service quality in terms of tangible, reliability, significant influence on customer satisfaction.
responsiveness, assurance and empathy has a statistical H3a: Price, Service quality, Food quality, Physical
influence on customer satisfaction. environment quality and Perceived value has a
significant influence on customer satisfaction.
265
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
H4o: Price, Customer satisfaction and Perceived value that there may be between 50-100 respondents setting up
has no significant influence on behavioral intention to a specific number of respondents for a pre-test. The
repurchase. researcher therefore collects data from 53 respondents
H4a: Price, Customer satisfaction and Perceived value for pretesting in Dhaka during the first week of October
has a significant influence on behavioral intention to 2019.
repurchase.
The researcher tests the reliability of question for all the
Research Methodology seven variables of this study that includes price, service
quality, food quality, physical environment quality,
Descriptive research is used in this research to perceived value, customer satisfaction and behavioral
demonstrate and examine the population traits. Besides intention. According to Sekaran and Bougie (2013), all
descriptive research, the researcher intended to use questionnaires are consistent and reliable to apply as the
convenience sampling to gather the population research questions of the study when the reliability value
respondents who are readily available to survey to for each variable is more than 0.60. Thus, the researcher
collect the data. The study uses a 5-point Likert Scale applied Cronbach’s Coefficient Alpha test (α-test) to the
approach standardized self-administered questionnaire. data obtained after distributing the questionnaires to 53
5-point Likert scale ranges from 5=Strongly Agree to 1= respondents, aiming to test the reliability of the
Strongly Disagree. questions of each variable. All the variables have
Cronbach’s Coefficient (α) value greater than 0.60
The target population defined in this research are meaning the questionnaire is reliable to be applied.
Bangladeshi people who are of age 18 years and above, The researcher applies Descriptive Analysis. Boeree
classified as adults including both male and female (2005) denoted descriptive analysis as methods used for
customers who have/had dining experience in KFC the summarization of numeric and statistical
Dhaka. The data will be collected from 3 branches of information. Multiple Linear Regression Analysis
Dhaka in Gulshan, Dhanmondi and Uttara. These 3 (MLR) is used by the researcher to check the
branches are chosen based on their location being relationship and discrepancy between the hypotheses
denoted as the most crowdy areas in Dhaka, Bangladesh. and their variables.
For this research, sample size is determined using
references from previous studies. Based on the previous Results
studies of this research, the researcher determines to
collect 450 responses from respondents to attain a better Result of Demographic Analysis: The demographic
result for this study. factors analyzed in this study illustrated that out of 450
respondents, 60.7% of the respondents are male and
In this research, the researcher applies non-probability 39.3% female respectively. Highest age-group of
sampling method to find out the sampling unit. respondents dining in KFC restaurant Dhaka,
Judgement sampling allows the researcher to collect the Bangladesh is equivalent to 78.2% of the respondents
sample by self judgement. The researcher hence selects aged between 20-30 years old. In addition, 66.9% of the
appropriate sample according to his/her own judgement respondents were full time students acquiring highest
to fulfill the requirements of this study. percentage in terms of occupation variable.
Furthermore, the respondents having the highest
In this research, researcher has designed the sample size percentage of monthly income levels to be classified as
of 450 respondents in selected 3 branches of KFC diners in KFC restaurant in Dhaka, Bangladesh equaled
restaurant. Sample size for each location was 150 to 54.7% which summed up to less than 10,000BDT.
respondents (450/3=150). The following population Finally, based on the analysis of education level
were chosen based on the following traits of the parameter, it is discovered that 48.8% of the respondents
commoners using quota sampling. acquiring a bachelor’s degree are the most frequent
Pretest was conducted to deduce the reliability of the diners in KFC restaurant in Bangladesh.
questionnaire Burns and Bush (2014) clearly described
266
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Table 1: Results of mean of Independent and Dependent Variables
Variable Question Mean
Tangibles The restaurant has clean dining areas. 3.92
Reliability The restaurant has comfortable dining areas. 3.75
Responsiveness The employees are all well-dressed. 4.02
There is seating availability. 3.90
Assurance The restaurant has adequate availability of sauces, salt, napkins, wet-naps and cutlery. 3.91
Empathy The restaurant has easily readable menu. 4.06
The restaurant has clean dining equipment. 3.62
Price The restaurant has elegant dining equipment. 3.67
The speed of the restaurant service is as fast as promised. 3.47
Food Quality The restaurant is sympathetic. 3.28
The restaurant focuses on accuracy of customer’s order. 3.74
The restaurant does quick corrections to anything that is wrong. 3.56
The restaurant focuses on dependability 3.44
The restaurant focuses on consistency 3.43
During the rush hours, extra employees are provided to the restaurant to help maintain speed 3.52
of service.
During the rush hours, extra employees are provided to the restaurant to help maintain 3.37
quality of service.
The restaurant provides prompt and quick service. 3.40
Employees are willing to help and handle customers’ special requests. 3.59
Restaurant informs exact service time. 3.26
Customers feel safe for financial transactions such as credit card billing. 3.90
Employees have knowledge to answer customer questions. 3.65
3.45
Employees are consistently courteous. 3.99
3.76
I feel comfortable in dealing with this restaurant. 3.45
I feel confident in dealing with this restaurant. 3.55
3.69
Employees are sensitive and anticipate individual customer needs and wants rather than 3.52
always relying on policies and procedures. 3.47
Employees have the ability to make customers feel special. 3.31
3.53
Employees are sympathetic if something is wrong. 3.41
Employees have customers’ best interests at heart. 3.88
3.65
Restaurant offers fair price according to the menu served. 3.71
The price of food is affordable. 3.64
The price of the restaurant is competitive. 3.60
3.64
The restaurant offers discount price for students
Food is delicious
Food is nutritious and fresh
The restaurant provides variety of food
The restaurant provides variety of beverages
Food presentation was visually attractive
Food is served at appropriate temperature
267
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Physical Restaurant offers healthy food option 3.51
Environment The restaurant has visually attractive building exteriors 3.82
The restaurant has visually attractive parking areas 3.45
Quality The restaurant has a visually attractive dining area that is comfortable and easy to move 3.77
around within
Hedonic Value The restaurant has appropriate music in keeping with its atmosphere. 3.59
The restaurant has appropriate lighting in keeping with its atmosphere. 3.59
Utilitarian
Value Restaurant has clean restrooms. 3.56
The interior design of the chain restaurant was pleasing to me 3.62
Customer The music played in the chain restaurant entertained me 3.59
Satisfaction The restaurant’s mood felt fascinating to me 3.58
Behavioral The restaurant’s layout and “look” were fun to me 3.51
Intention to I prefer eating out at this chain restaurant, because it’s a wonderful place that gives me a 3.47
Repurchase good feeling
3.68
Eating out at this restaurant is fun and pleasant 3.42
I liked the restaurant’s healthy food options (such as a low-fat menu) 3.56
Eating out in a fast-food chain restaurant was convenient 3.76
The food I had was tasty and for this restaurant I enjoyed dining experience at the restaurant.
3.88
I like the variety of menu choices in the restaurant 3.75
The food presentation is neat 3.61
The service justifies good value addition for the cost paid for. 3.73
The food portion was enough to satisfy my hunger 3.69
I am satisfied with the service at this restaurant 3.55
The restaurant always comes up to my expectations 3.55
My experiences with the restaurant are excellent 3.56
Overall, this restaurant puts me in a good mood 3.69
I would like to come back to this restaurant in the future 3.75
I would recommend this restaurant to my friends or others 3.62
I would say positive things about this restaurant to others 3.43
I would encourage others to visit this restaurant
Table 2: Results of Hypothesis Testing
Hypotheses Statistical Level of Standardized Results
Analysis
Significance Coefficient
Beta Values
H1o: Service quality in terms of tangible, Multiple
reliability, responsiveness, assurance and Linear
empathy has no significant relationship Regression
with customer satisfaction.
Tangibles 0.149 0.119 Failed to reject H1o
Reliability 0.764 -0.029 Failed to reject H1o
Responsiveness 0.084 0.098 Failed to reject H1o
Assurance 0.314 0.049 Failed to reject H1o
268
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Empathy Multiple 0.747 0.051 Failed to reject H1o
Linear
H2o: Perceived value in terms of Regression .005 0.126 H2o is rejected
hedonic and utilitarian value has no .000 0.607 H2o is rejected
significant relationship with customer
satisfaction. 0.007 0.091 H3o is rejected
Hedonic Value 0.161 0.126 Failed to reject H3o
Utilitarian Value 0.016 -0.127 H3o is rejected
0.006 0.149 H3o is rejected
H3o: Price, Service quality, Food Multiple 0.000 0.573 H3o is rejected
quality, Physical environment quality Linear
and Perceived value has no significant Regression 0.000 0.152 H4o is rejected
relationship with customer satisfaction. 0.000 0.305 H4o is rejected
-Price 0.000 0.279 H4o is rejected
-Service Quality
-Food Quality
-Physical Environment Quality
-Perceived Value
H4o: Price, Customer satisfaction and Multiple
Perceived value has no significant Linear
relationship with behavioral intention. Regression
-Price
-Customer Satisfaction
-Perceived Value
269
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Discussion and Conclusion For hypothesis 2, Beautiful design and layout of
outlets, music played to create a happy mood,
According to the results of hypothesis 1 testing the making the customer happy and satisfied during
influence of service quality influence in terms of dining was the main objective of hedonic value
tangible, reliability, responsiveness, assurance and having significant influence on customer
empathy on customer satisfaction, the results satisfaction. For Utilitarian value having significant
indicated that service quality in terms of tangible, influence on customer satisfaction, customers
reliability, responsiveness, assurance and empathy understood that KFC adds value to their dining
has no significant influence on customer satisfaction experience meaning costs paid justified the benefits
in contrast to other findings of relevant research in received such as a good food portion, overall dining
the restaurant industry conducted by many experience.
researchers which denoted the statistical influence For Hypothesis 3, price had significant influence on
of service quality on customer satisfaction. customer satisfaction because price of KFC food is
However, few researchers from Bangladesh and justified according to the menu it serves being an
Malaysia have illustrated that service quality has no international chain which makes customer satisfied
significant influence on customer satisfaction. at present but price is not considered to be affordable
Rahman et al. (2017) conceptualized in their compared to local restaurants offering budget
research of “The effects of customer expectation, friendly meal towards price sensitive customers,
perceived service quality, and customer satisfaction especially the students. Food quality influences
on customer loyalty towards customer of KFC customer satisfaction. Food of KFC is delicious
restaurant Dhaka” stated that perceived service which made customers satisfied. However (β) value
quality in terms of tangible, reliability, of -0.127 showed that customers were not happy
responsiveness, assurance and empathy has no about the food quality mainly because KFC food is
significant influence on customer satisfaction. regarded as “Junk Food”. KFC should understand
Additionally, Qin and Prybutok (2017) emphasized customers are becoming more health conscious and
in their research of “Determinants of Customer- they prefer healthy food in contrast to these junk-
Perceived Service Quality in Fast-Food Restaurants food. Overall store interior and exterior were quite
and Their relationship to Customer Satisfaction and well decorated which made customers dining
Behavioral Intentions” that there is no significant experience enjoyable as they could take nice
relationship between service quality and customer pictures, chat in a nice ambience influencing their
satisfaction. More than service quality, customers satisfaction levels. However, parking areas were not
prioritized other variables such as price, food visually appealing and there is always lack of
quality, physical environment quality and perceived parking space which was a major concern for
value as all of these variables illustrated to show customers. Perceived value also influenced
relationship with customer satisfaction at customer satisfaction as customer received high
significance level less than 0.05 illustrating quality of perceived value for dining in KFC.
significance of the result at 95% confidence level. Service quality did not influence customer
Factors that account for non-influence of service satisfaction for customers dining at KFC, other
quality on customer satisfaction include technology- relevant attributes were deemed to be much crucial
based food apps such as Food Panda, Uber eats for customers.
provide good food and price discounts which tend to For hypothesis 4, price, customer satisfaction and
be more favorable for Bangladeshi customers than perceived value in the above hypotheses has been
dining in KFC outlets. proven to be the most influential factor towards
Global brand recognition especially brand name customer satisfaction and behavioral intention to
“KFC” encourage customers to dine at KFC repurchase as well.
compared to service quality dimensions Recommendation: The researcher recommends the
Homogenous service by new startups: Service management of KFC restaurant to be proactive
quality provided by other international chains and about the future changes and closely monitor the
new startup restaurants in the restaurant industry is dimensions of service quality to ensure future
homogenous in nature meaning it is very difficult for behavioral intention to repurchase of customers. The
people to distinguish which restaurant provides use of a service blueprint to guide both customers
good service because every restaurant is providing and employees through the service touchpoints
the same basic service to satisfy customers.
270
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
efficiently is recommended. Management can Fornell, C., Johnson, M. D., Anderson, E. W., Cha,
improve those variables which are deemed to be
important elements leading to value addition for J., and Bryant, B. E. (1996). The American
price sensitive customers such as price, food quality,
physical environment quality by differentiating Customer Satisfaction Index: Nature, Purpose and
themselves more in comparison to other
international rivals of the same industry. Findings. Journal of Marketing, 60, 7-18.
Further Study: for future studies, the researcher
can take into consideration the impact of other https://doi.org/10.2307/1251898.
variables apart from these variables studied in this
research such as brand image, consumer well-being Gilbert, R. G., Veloutsou, C., Goode, M. M. H., and
perception, word-of-mouth etc. The results derived
from only 3 areas cannot be used to denote results Moutinhao, L. (2004). Measuring customer
for the whole capital city in which there are more
KFC outlets. The results may differ considering satisfaction in the fast-food industry: a cross-
other outlets inside and outside of the capital city so
future research can be done considering these other national approach. Journal of Service Marketing,
outlets as well. Furthermore, there is a scope to
conduct further studies in different nationalities 18(1), 45-59.
where the impact of the variables influencing
customer satisfaction levels and behavioral intention https://doi.org/10.1108/08876040410548294.
may differ also because of different race, nationality,
cultural backgrounds, religion, societal norms etc. Ha, J., and Jang, S. C. S. (2010). The effects of
References restaurant quality attributes on customer behavioral
intentions. International Journal of Contemporary
Hospitality Management, 29(3), 520-529.
https://doi.org/10.1108/IJCHM-04-2013-0162.
Han, H., and Ryu, K. (2009). The Roles of the
Physical Environment, Price Perception, and
Customer Satisfaction in Determining Customer
Loyalty in the Family Restaurant Industry. Journal
of Hospitality & Tourism Research, 33(4), 487-510.
https://doi.org/10.1177/1096348009344212.
Kotler, P. (2000). Marketing Management: The
millennium Edition, New Jersey: Prentice Hall
International Inc.
Babin, B. J., Darden, W.R., and Griffin, M. (1994). Kotler, P., and Levy, S. J. (1973). Buying is
Work and/or fun: measuring hedonic and utilitarian marketing tool. The Journal of Marketing, 37(1), 54-
shopping value. Journal of Consumer Research, 20, 59. https://doi.org/10.1177/002224297303700108.
644-56. https://doi.org/10.1086/209376 Lau, R. S. M., Zhao, X., and Xiao, M. (2004).
Batra, R., and Ahtola, O. T. (1990). Measuring the Assessing quality management in China with
hedonic and utilitarian sources of consumer MBNQA criteria. International Journal of Quality
attitudes. Marketing Letters, 2, 159-70. & Reliability Management, 21(7), 699-713.
https://doi.org/10.1007/BF00436035. https://doi.org/10.1108/02656710410549064.
Boeree, C. G. (2005). Qualitative methods: Part Lee, S., and Jeong, M. (2012). Effects of E-
Servicescape on Consumers’ Flow Experiences.
one. Retrieved September 10.
Burns, A.C., and Bush, R. F. (2014). Marketing Journal of Hospitality and Tourism Technology,
Research, (7th ed.). MA: Pearson Education 3(1), 47-59.
Limited. https://doi.org/10.1108/17579881211206534.
Chen, C., and Tsai, D. C. (2007). How destination Mattila, A. S. (2001). Emotional Bonding and
image and evaluative factors affect behavioral Restaurant Loyalty. The Cornell Hotel and
intentions? Tourism Management, 28(4), 1115-22. Restaurant Administration Quarterly, 42(6), 73-79.
https://doi.org/10.1016/j.tourman.2006.07.007 https://doi.org/10.1016/S0010-8804(01)81012-0.
Colgate, M., and Lang, B. (2001). Switching Monroe (1990), Pricing; Making Profitable
Barriers in Consumer Markets: An Investigation of Decision, 2nd edition, McGraw-Hill Book
the Financial Services Industry. Journal of Company, New York, NY.
Consumer Marketing, 18(4), 332-347. Parasuraman, A., Zeithaml, V. A., and Berry, L. L.
https://doi.org/10.1108/07363760110393001. (1988). SERVQUAL: A Multiple-item Scale for
Donovan, R. J., Rossiter, J. R., Marcoolyn, G., and Measuring Consumer Perceptions of Service
Nesdale, A. (1994). Store Atmosphere and Quality. Journal of Retailing, 64(1), 12-40.
Purchasing Behavior. Journal of Retailing, 70(3), Payne, A., Holt, S., and Frow, P. (2001).
283-294. https://doi.org/10.1016/0022- Relationship value management: exploring the
4359(94)90037-X. integration of employee, customer and shareholder
271
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
value and enterprise performance models. Journal of
Marketing Management, 17(7-8), 785-817.
https://doi.org/10.1362/026725701323366827.
Qin, H., Prybutok, V. R, and Zhao, Q. (2010).
Perceived service quality in fast-food restaurants:
empirical evidence from China. International
Journal of Quality & Reliability Management,
27(4), 424-437.
https://doi.org/10.1108/02656711011035129.
Ranaweera, C., and Prabhu, J. (2003). On the
Relative Importance of Customer Satisfaction and
Trust as Determinants of Customer Retention and
Positive Word of Mouth. Journal of Targeting,
Measurement and Analysis for Marketing, 12(1),
82-90. https://doi.org/10.1057/palgrave.jt.5740100.
Ryu, K., Han, H., and Kim, T. (2008). The
Relationships among Overall Quick-casual
Restaurant Image, Perceived Value, Customer
Satisfaction, and Behavioral Intentions.
International Journal of Hospitality Management,
27, 459-469.
https://doi.org/10.1016/j.ijhm.2007.11.001.
Sekaran, U., & Bougie, R. (2013). Research
Methods for Business. West Sussex: Wiley.
Sureshcahnder, G. S., Rajendran, C., and
Anatharaman, R. N. (2002). The relationship
between service quality and customer satisfaction: a
factor-specific approach. Journal of Services
Marketing, 16(4), 363-79.
http://dx.doi.org/10.1108/08876040210433248.
Zeithaml, V. A., Berry, L. L., and Parasuraman, A.
(1996). The Behavioral Consequences of Service
Quality. Journal of Marketing, 60(2), 31-47.
https://doi.org/10.2307/1251929.
Zeithaml, V.A. (1988). Consumer perceptions of
price, quality, and value: a means-end model and
synthesis of evidence. The Journal of Marketing,
52(3), 2-22.
https://doi.org/10.1177/002224298805200302
272
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
The Opportunities for Virtual Tourism During Social Distancing
Naruemon Sirisungsuchol
592/3 Soi Ramkhamhaeng 24 Ramkhamhaeng Rd., Hua Mak, Bangkok
E-mail: [email protected]
Abstract
The aimed of this study was to find out whether virtual tourism would have a chance to become more
well-known and able to help booting tourism business during social distancing. Researcher used
qualitative method to collect and analyze data. The in-depth interview was used in order to collect data
from 16 domestic tourist who visited main attraction in Bangkok and countryside. The data was collected
from Jun 21 - July 1, 2020. Then, researcher used thematic analysis method to analyze data by coding
the key word of informants into category. As the result from the analysis, it showed that there are not
many people know about virtual tourism and they never try using virtual reality for travel. The preferred
destination in Bangkok that informants would like to visit by using virtual reality are nature attraction,
adventure attraction, famous temple and museum. Moreover, tourist would like to try virtual tourism to
gain a new travel experience and be safe at home during social distancing. Virtual tourism is type of the
tourism that provide activity for tourist to enjoy in their free time while staying at home. Therefore,
tourism business can still keep contact with their customer. It creates the desire of people to visit the
destination after pandemic.
Keywords: Augmented Reality, COVID-19, Social Distancing, Virtual Reality
273
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Introduction internet to find travel information, do the hotel and
airline booking, or even reserve space or travel
Since start of 2020, the COVID-19 has rapidly- attraction. It’s saved time and reduce cost of travel by
spread from China and created global pandemic, using the technology to manage the travel plan. The
devastating the world economy unprecedented scale. internet will keep growing as the increase of online
The restrictions on mobility have been affected on a booking grown faster due to easy access to the high-
local, regional and global scale. Numerous of places speed internet. So, online travel has been viewed as
have been shut down such travel attraction, central of internet marketing and e-commerce in
restaurant, airport and supermarket. The movement tourism sector (Wang, 2004). Virtual reality and
restrictions have been implemented on everybody augmented reality have impacted on tourist decision
and everywhere which has practically stopped the making as it relates to buying decisions on tourism
tourism economy in communities throughout the product. Augmented Reality is a technology which
world. Most of the places have been facing create the image of user by using computer graphic,
lockdowns state which varying lengths the economic this image will present the user view of the real
effect of COVID-19 pandemic has devastating. The world. Also, virtual reality is the technology that
effects from pandemic on the tourism industry is bad, create the virtual elements through computer
impact more than hundreds of travel destinations is graphics (Lister, 2008). These technology help
out reach physically due to lockdown. All tourist improve tourism activities by listing the tour agents
attractions, accommodation, museums, beach and on the internet which tourist can look for travel
even restaurants have been closed. Every activities information from them and made decision on tourism
and sports are pause and events have been suspended product (Huang, 2016). Virtual reality technology
or even cancelled. The situation of tourism sector is provides the opportunity for tourist to virtually
facing with pandemic are unprecedented. From this transported to many attractions. It could give the
situation, it can lead in two possible outcomes. First, understanding of tourism products or experience
business sector could go back to the normal way as a which could impact the searching process of tourist
pre-crisis. Another one is that this situation can
entails a new way of doing things (Loorbach, 2017). The purpose of doing this research is to found
Currently, from the pandemic of COVID-19, it is out about:
hard to go back to a normal way of doing things RQ1: Whether Covid-19 pandemic situation will
(Miles, 2015). accelerate digital transformation at hospitality and
travel company in Bangkok?
From this pandemic of COVID-19, it leads to a RQ2: In what ways do digital technologies,
new way of traveling where tourist’s mobility is most specifically VR and AR technologies, impact
important. Due to pandemic of COVID-19, tourists different stages of a high involvement consumer
are unable to go out to travel, they are forced to stay decision-making process in Bangkok?
home and follow rules and regulations. With all the RQ3: Will digital technologies, specifically VR and
rules and regulations that restrict people to keep the AR technologies, serve as a source of competitive
social distance from other people, a lot of people advantage for tourism in Bangkok during social
have stop traveling or only visit the domestic distancing?
destination (Lake, 2019). The possibility after post- RQ4: Will the virtual tour help be boosting tourism
pandemic, travel attraction will start to recover, but industry during social distance situation in Bangkok?
unknow destination will become more attractive to
tourist. This is the time where tourist would enjoy Literature Review
their journeys rather than the destination itself. It’s
called slow tourism (Travelzoo, 2020). The Persuasive of Virtual Reality
The traditional way that people used to travel is Virtual reality (VR) refers to the use of 3D mapping
that they need to have time and money than they technologies and sensors that react to user
would plan for trip which normally will be several engagement, these VR displays enable individuals to
days. The primary concern of tourism business is experience a virtual walkthrough of actual places
tourist’s safety. However, during this pandemic, around the world, such as taking virtual trips to
technology or electronic device can provide and tourist attraction or virtual hikes through national
ensure the safety of people. One of the technologies parks. VR allows for subjective experience whereby
which is called virtual reality can provide the stimuli such as virtual walkthrough or sightseeing or
opportunity for interaction experience. This virtual museum can eventually translate into real behavior.
reality technology can support both tourism business This research focus on two areas: presence and
and tourist. In tourism industry, people use the
274
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
transportation theories. Presence focuses on how and travel information which could affect tourist’s
well computer-generated environments induce the satisfaction on traveling.
feeling of being in the world that exists outside the Consumer Decision-Making and Technologies
According from Nicosia, consumer decision making
self (Riva, 2004). The presence in virtual
environments (VE) includes the user’s sense of being
there, the extent to which the VR experience in a purchase context can be divided into four stages:
becomes more real than everyday experience. information provided by an organization to a
Second is transportation. Transportation theory consumer, use of the information by the consumer to
applies in VR to the state of being transported into form preferences and attitudes, a purchase decision
the virtual world through imagery with the context and then feedback about the purchase (Nicosia,
serves as a story and self as a character (Kim, 1997). 1966). This research studied the various ways digital
There are two factors of transportation: arrival which technologies, specifically VR and AR, are perceived
referred to a feeling of being present in the mediated by consumers to impact the different stages of the
environment and departure which referred to a model. Technologies enable consumers to move
feeling of separation from the physical environment. beyond simply gathering more information about a
Opportunities for Virtual Reality in Tourism product or service to experiencing elements of the
product and service. In a tourism context, use of VR
The tourism business has many options for natural experiences such as 360-degree videos result in
tourism. For example, nature tourism. The natural greater likelihood of consumers wanting to visit a
tourism experience has many challenges with destination (Gibson, 2018).
providing high quality services. Mostly, destination Role of Electronic Commerce
is isolated from the main city or the crowded area,
tourist who travel to this kind of destination or The improvement and growth of electronic
unfamiliar places need to follow rule and regulation commerce give an opportunity for marketing on
of safety before entering to destination. It requires the tourism business. The potential of virtual reality
specialist to guild and brief about do and don’t in the creates new way of tourism activity which tourist
attraction. This safety method can attract tourist to try able to travel through electronic device to various
VR before really going to original attraction. It could types of travel attraction. The rising awareness in a
capture tourist attention and make them satisfy with new form of organization can referred to virtual
VR technology. organization (Davidow, 1992). Virtual organization
Advanced Technologies for Tourism and can refer to a link among companies, suppliers and
Tourist’s acceptance of New Technologies customers. It provides the link of information which
could share the skills, budget, and information of
Web-based technology can encourage the user to other's markets. Virtual organization have no central
visit the various types of attraction. This technology office, it can operate from anyway (Byrne, 1993). It
can help rebuilding the travel destination such as operates the business through structures and
objects or scenarios by using 3D graphics and VR processes which are fast, flexible, and flat. It is
and AR technology. It is difficult for people to transforming the information into knowledge without
evaluate travel attraction because of the intangible of having a physical infrastructure. The increasing of
tourism product. (Ye, 2011). The virtual rebuilding tourist able access to the information lead to the
of travel attraction could solve this issue by offering growth in tourism business. (Kate, 1998). Also,
a detailed 3D image and their interaction in the tourist benefit from getting the up-to-date
program. This technology program could enhance information with the low cost. (Pollock, 1996).
the tourist feeling of being exits in the travel Moreover, travel attraction can get advantage from
attraction. The increase in medias of virtual reality in the virtual organization. It can maintain or even
which tourists are characterized by avatars create the increase their market share and create close
opportunity to travel with 3D image with multi- relationship with customer which could lead to
modal inter faces. According to (Pantano, 2009), customer satisfaction (Sussmann, 1996).
virtual reality making a unique way of traveling, Place Attachment and Virtual Reality
customized tourism product, improving tourist’ Attachment
experience and recording tourist’ behavior. Web-
based technology is improving tourist’s experience There are four stages on the VR technology: 1) pure
and can also be a tool to gaining a competitive real presence, 2) augmented virtually, 3) augmented
advantage from other travel attraction. Therefore, VE reality. 4) pure virtual presence (Wang et al., 2018).
could make it easier the remember travel attraction Tourism business allow tourist to experience the VR
275
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
program. It makes them forget time and focus on 21, 2020 to July 1, 2020. Target tourists were divided
travel experience processes instead of results from into 2 groups. The first group was 11 domestic
traveling. The improving of tourist experience tourists who visited famous attraction at the
creates the visibility of the immersion concept. Thus, countryside; Ranong province, Prachuap Khiri Khan
immersion is the key components that could lead to province and Chonburi province. The second group
tourist’s satisfaction. The starting point of tourist was 5 domestic tourists who visited at famous
when using VR technology is to explore the travel attraction in Bangkok; Terminal21, Chatuchak
attraction. The effectiveness, efficiency and Market and Grand Palace. Then, researcher used
satisfaction of VR technology come from feeling the thematic analysis method to analyzed data by coding
sense of being in the attraction which tourist could the key word of informants into category.
learn and travel freely all over the attraction.
(Costabile, 2001). Results and Discussion
Place attachment is a media that provide travel To anticipate the digital transformation in
attraction which meet the need of the tourist. It could tourism industry in Bangkok
satisfy people by provide various type of famous
destination. The interaction between the tourist when Figure 1: Digital transformation in tourism industry
travel at place on the VR program can determining
the relationship between people and places (Nielsen-
Pincus, 2010). Conversely, VR attachment could
connect the emotion between tourist and VR
technologies.
Methodology
In this study, researcher used qualitative method to Digital transformation has been giving a deep impact
collect the data. This method was chosen because it on many industries such as, banking, hotel, airline,
was giving information in more detail which provide healthcare, insurance and many more. In tourism
the data in the form of rich verbal interactive industry, tourist makes use of both information and
Researcher used in-depth interviews to collect the transactions in all stages of the value chain, tourist
data from informants. The primary purpose is to hear finding for the information before travel, compare
from informants about their opinion on the and check feedbacks, reserve tickets, hotels, as well
opportunity for virtual tourism during social as request a virtual tour of their potential destination.
distancing. The informants were randomly selected
at destination site. There were 19 open-ended From the result of data collection, tourists are looking
questions which was asking about virtual tourism for one single device that can do anything including
such as what kind of technology feature do you think travel online. Mobile is the most selected device that
will gain people awareness during social distancing? informants would select to travel online. They prefer
what kind of attraction do you think will make you using mobile phone and access to an application.
pursue virtual tourism? which attraction in Bangkok Virtual tour could be one of an application in the
would you like to travel using virtual reality? mobile phone for tourist to travel online. They would
Informants had to answered questions by providing prefer advance technology such as 3D to travel with
the opinion, telling experience or making some VR, the quality of the image need to be close to the
reaction toward those questions. It’s generally real destination. Therefore, it needs to provide many
covered the duration of at least 30 minutes. In order types of destinations to be able to attract the user.
to have the interview data captured more effectively,
researcher recorded the conversation during the To study the impacts of VR and AR technologies
interview. Researcher asked for the permission from on consumer learning, satisfaction and
informants before the interview started. The audio consumption intent in Bangkok.
record of the interview made it easier for the
researcher to focus on the interview content. By
using this method, it helped researcher to collect
depth information about virtual tourism from tourist
point of view
Researcher used the in-depth interview to
collect data from 16 domestic tourists between June
276
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Figure 2: The impact of VR and AR on tourist
Virtual reality is becoming important part to Refer to figure 3, virtual tourism in Bangkok during
attract tourist and also provides an alternative for social distancing. Due to pandemic of COVID-19,
someone who can’t visit the destination in person due virtual tourism can help people enjoy their time while
to financial crisis, time restrictions and social staying at home. They can use VR to travel online
distancing. VR lets the tourist experience new way of and get new experience of traveling. To travel with
traveling by invites people to explore destination no this kind of technology, the quality of VR needs to be
matter where they are in the world. Created using 3D, advance. They expect to see 3D model or even 4D to
a beautiful soundtrack and changing seasons, this get to feeling of visiting the destination. The device
360-degree platform is set to become even more that use to access VR need to be simple to use, the
complex and immersive, with the aim being to allow sound and image should provide the advance quality.
friends to meet up in the simulation and wander According from one of the informants, she would
around together in real time. like to purchase the local product from the
destination that she visits from the program. This
Refer to figure 2, there are several impacts of unique feature could attract people to travel on VR.
VR and AR on tourist. First one is travel experience, Also, from the result of data analysis, people prefer
tourist would want to try using VR for traveling. to go to nature and adventure attraction. This is mean,
However, they expect to get the feeling of really from the tourist point of view, the tourism product
being in the destination. VR need to provide the that would attract people to travel on VR in Bangkok
experience of fun, learning something new from the should be attraction or destination, follow by the
destination and real time in order to meet tourist’s accommodation that help them to plan for their future
expectation. Second is travel plan, due to pandemic trip. The travel attraction that people would to visit
of COVID-19, people don’t want to go travel but will in Bangkok are nature attraction, adventure,
use VR to observe the destination then plan for the museum, and famous temple. They would feel safe
future trip. Third is support tourist's decision making, to travel on VR because they can avoid physical
after observing the destination by using VR, they will contact and keep distance from other people. Also,
make the decision do the travel plan according to due to the recession period, using VR program to
their satisfaction from VR. Therefore, tourism travel would help them save money. Moreover,
business or VR provider will know tourist's according from informants, VR can apply on
preference on travel destination and use this attraction, accommodation, restaurant, and activities,
information to get the new media to support the it’s depended on their preference.
program.
To study the role of virtual tour as a means to
To find out whether digital technologies can help boost tourism industry during social distance
the attraction in Bangkok gain a competitive situation in Bangkok.
advantage over other attraction during social
distancing. Figure 4: Role of virtual Tourism
Figure 3: Virtual tourism in Bangkok during social
distancing
277
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
to use VR to travel. After virtual tourism become
well known, add the hidden destinations to the
program. So, tourists could explore all the city and
they might want to visit the original place.
5) Beside showing the destination, tourism business
should provide tips or information for tourist to learn
such as direction, beliefs, culture, do and don’t,
manner when visiting the destination.
6) Most people don’t know about virtual tourism. So,
tourism business should create awareness by doing
the advertise, have a trail period before people invest
According from figure 4, the result from data in VR.
analysis provide the idea of technology’s advantage, 7) Instead of watching destination via VR, people
promote attraction, trip planning and support on would like to interact or make a movement like
tourism business on role of virtual tourism. playing game or doing activities. Using VR to travel
online with their friend or family and able to
1) Technology's advantage: VR technology need to communicate and make a move would give higher
connect people together and able to travel online with tourist’s satisfaction.
a group. This technology can be a guideline for
tourist to plan their future trip. Conclusions
2) Promote attraction: Using VR to promote travel There aren’t many people know about virtual
attraction by showing the highlight of each city tourism and they never heard about it before. Also,
attraction including the local product to attract tourist they never using virtual reality in their daily life.
to shop online. Some of them had try VR when looked for attraction
3) Trip planning: According from informants, they or accommodation. They went to World wide web,
will VR to plan their future trip by looking at search for the attraction and watched 3D, listened to
destination and hotel on VR program. They will go sound of narration. During social distancing
to the destination that they impress from VR. This situation, most people had no plan for traveling, they
method saves time and money of tourist; they will need to stay home and work online. The technology
only go to the destinations that they like. that can help them do the activities from home will
become more popular. Specially, one stop service
4) Support tourism business: Tourism business can device is becoming needed item. They looking for
promote destinations and inspire customers to travel the device that can work, chat, call, play game in one
on VR and keep in touch with their customer. It single device.
offers a new way to engage with their customer.
Most people would read the reviews,
Recommendations comments, and recommendations on social media
1) Electronic device or program use for virtual before they making decision on traveling. Also, most
tourism should be easy to access, and simple to use. of them prefer to travel with the group of friends and
There is wide length of ages who would like to travel family rather than using VR and travel alone. The
by using technology, the difficulty and complicated virtual reality needs to give the real feeling of being
to the program will made it less attractive to try. at the attraction to tourist and provide the new and
2) Electronic device that use for virtual tourism different experience from normal tourism to traveler.
should be mobility and convenient to carry to Nature and adventure attraction are the most
everywhere. It should connect to the VR program by preferred for tourist to pursue on virtual tourism.
using only one device. This electronic can be mobile They want to see the good quality image of 3D and
phone, so that tourists don’t need to invest on 4D. The technology needs to be easy to access and
additional device. simple to use. Also, when apply VR on the attraction,
3) Due to pandemic of COVID-19, the economy is better include the shopping online feature to show the
getting worse. Thus, the price of the product or the local product of each cities. Therefore, VR is most
cost of install the program should be reasonable. recommended for accommodation. VR can show
Most people will buy it because of its worthiness. every part of room and the surrounding area. It helps
4) Tourism business can promote VR by providing tourist to make decision when booking the
the highlight of attraction in the city to attract tourist accommodation. Also, most selected attraction in
Bangkok is temple and landmark attraction. Also, the
278
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
crowded areas are preferred to use with VR to avoid connections to memory and persuasion. Journal of
physical contact and save time from traffic. Computer-Mediated Communication.
Lake, Z. &. (2019). National parks officials
Future Research grappling with high volume as Instagram tourism
booms.
In this study, research focused on the Lister, M. D. (2008). New Media: A Critical
opportunity of virtual tourism during social Introduction. Routledge,Abingdon.
distancing in Bangkok. Its emphases only Loorbach, D. F. (2017). Sustainability transitions
applying VR technology on tourism sector. research: transformingscience and practice for
However, due to the time limit and pandemic of societal change. Annual Review of Environment and
COVID-19, researcher could collect data from Resources, pp. 599–626.
domestic tourist that provide the result on travel Miles, L. &. (2015). Entrepreneurial resilience: Role
expectation and travel experience, role of virtual of policy entrepreneurship in the political perspective
tourism, the impact of VR on tourist, and the of crisis management. Understanding Political
opinion of digital transformation. The result Entrepreneurship, pp. 67-81.
only showed the tourist point of view toward Nicosia, F. (1966). Consumer Decision Processes:
virtual tourism. For future research, researcher Marketing and Advertising Implications.
could include the tourism business and Nielsen-Pincus, M. H. (2010). Sociodemographic
international tourist point of view to show the effects on place bonding. Journal of Environmental
clear picture of the opportunity for virtual Psychology, pp. 443-454.
tourism. Also, to include the drawback of using Pantano, E. a. (2009). Learning cultural heritage
VR for travel in the future research. through information and communication
technologies: a case study. International Journal of
Acknowledgments Information Communication Technologies and
Human Development, pp. 68-87.
First and foremost, I would like to thank to my Pollock, A. (1996). The role of electronic brochures
professors, Dr. Adarsh Batra. The completion of this in selling travel: implications for businesses and
research could not have been possible without his destinations. Australian Journal of Hospitality
suggestions and recommendations. I am really Management, pp. 25-30.
thankful to my professor who been encourages me to Riva, G. W. (2004). The layers of presence: a bio-
work hard to pass this course. Thank you. cultural approach to understanding presence in
natural and mediated environments.
References CyberPsychology & Behavior, pp. 405–419.
Sussmann, S. and Baker, M. (1996). Responding to
Byrne, J. (1993). The virtual corporation. Business the electronic marketplace: lessons from destination
management systems. International Journal of
Week, pp. 98-102. Hospitality Management, pp. 99- 112.
Travelzoo. (2020). Travelzoo U.S. Survey Reveals
Costabile, M. (2001). Usability in the software life Flexible Travellers Find Opportunity in Current
Crisis Climate.
cycle. Singapore: World Scientific Publishing. Wang, P., Wu, P., Wang, J., Chi, H.L. and Wang, X.
(2018), A critical review of the use of virtual reality
Davidow, W. a. (1992). The Virtual Corporation. in construction engineering education and training,
International Journal of Environmental Research
New York: HarperCollins. and Public Health, pp. 1-18.
Gibson, A. and O’Rawe, M. (2018), Virtual reality as Wang, Y. Y. (2004). Toward understanding
members’ general participation in and active
a travel promotional tool: insights from a consumer contribution to an online travel community. Tourism
Management, pp. 709-22.
travel fair, Augmented Reality and Virtual Reality, Ye, Q. L. (2011). The influence of user-generated
content on traveler behavior: an empirical
Springer, Cham, pp. 93-107.
Huang, Y. B. (2016). Exploring the implications of
virtual reality technology in tourism marketing: an
integrated research framework.
InternationalJournalofTourismResearch, pp. 116-
128.
Kate, N. (1998). Surfing for travel. American
Demographics, pp. 36-37.
Kim, T. &. (1997). Telepresence via television: Two
dimensions of telepresence may have different
279
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
investigation on the effects of the e-word-of-mouth
to hotel online bookings. Computers in Human
Behavior, pp. 634-639.
280
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
MICROCELEBRITIES: THE NEW CELEBRITIES IN THE DIGITAL
ERA
Revathi Suresh Nair
Introduction as an improper celebrity endorser may or may not
benefit the company. With the dawn of Social
Traditionally, celebrities endorsed products in the Media and considering the growth of these
20th century but now with the dawn of social platforms. There were 500 million active Internet
media, a new breed of celebrities i.e. Digital Users in early 2019 and according to Statista,
Influencers (i.e., Internet Microcelebrities—non- currently the number is at 560 million users. Only
traditional celebrities—are those who narrate their 17% of total Indian Population could access the
personal lives and lifestyles and endorse brand, internet in 2015.
products and/ or services in their blog or social
media posts)( (D Jimenez- Castillo, 49(2019)) have There seems to be a budding interest among
come up. The study focuses on whether digital marketers to experiment with Social Media
influencers influence their followers to buy the platforms for endorsing due to its large reach
brands or products they endorse on their account, among mobile phone users worldwide, with users
website, page, etc. and whether it leads to brand in India itself. Several researchers have argued
engagement and perception of people about the that information is extra reliable when it is
brand. As their social media marketing strategies, delivered by a product reviewer/blogger as
many companies hire or pay digital influencers to opposed to an established celebrity (Camahort,
endorse their brand or product on their social media 2016). These internet microcelebrities are
handles. This results in their ardent followers to get perceived to be more reliable and credible,
influenced and buy the products resulting in people believable and authentic by their followers.
trying it up.
Celebrities have an impact when it is about Disparity in the level of digitalization is a crucial
advertising products (Van Norel, 2018). driver of economic inequality in an economy.
Approaching a celebrity to endorse a product, Although a pocket of its population is still bereft of
positively affects consumers’ brand attitudes and the benefits of digitalization, India currently has
purchase intention (Schlecht, 2003). The reason for the second highest number of internet subscribers
celebrity endorsement is to enhance value to a in the world despite the nation's late adoption of
brand name and the product or service being digital technology. The factors responsible for the
offered. According to (Keller, 2005), advertising digitalization divide across states were identified
through a celebrity is useful in building brand (Subhasis Bera, 2019). In an emerging country
equity. But finding a right fit is an intimidating task, such as India, consumers are tech savvy and
281
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
connect easily with digital media platforms. They positive attitude towards the brand's social media
use these platforms even for luxury page, which in turn influences future purchase
purchases.These consumers are always connected intention from the brand (Clair McClure et al,
to reference groups digitally who significantly 2020). The cognitive, emotional and behavioral
affect their purchase behavior and subsequent engagement with luxury brands are grouped into 6
brand choices (Varsha Jain et al, 2019). macro dimensions and 13 motivations (Saleh Bazi
The study is being done to find the influence of et al, 2020). Despite the current prevalence and
Internet Microcelebrities and the power they have relevance of social media communication as a
over their followers to make them purchase the loyalty-building factor in a context as competitive
brand they recommend. The study will help brands as the tourism sector, relatively little literature has
who look forward to establish themselves in the addressed it in emerging tourist destination
Indian Market. There have been numerous research scenarios. Hence, the present paper presents an
studies related to the amount of influence that analysis of how – and to what extent – social media
celebrity endorsements have on purchase intention communication, both controlled and uncontrolled
and brand value. Traditional advertisements had by the destination organization, has an impact on
celebrities endorse brands and products but now destination brand equity and destination brand
that people spend the vast majority of their time on engagement (Rocío Huerta-Álvarez, 2020). This
their mobile phones especially on Social Media, it study aims to contribute to existing social media
has become a platform where brands can tie-up research by proposing and empirically testing a
with a new breed of celebrities- Internet model in which social media brand involvement
Microcelebrities and increase their reach to an and social media brand communication are the
extensive audience. Hence this study would help to main precursors and brand relationship quality is a
find out how effective the eWOM of such digital relevant outcome of social media brand
influencers can be. The study would also determine engagement. The findings show that the influence
the mediating effect of brand engagement in self- of social media brand involvement on social media
concept and brand expected value on the effect of brand engagement is stronger than the influence of
perceived influence of micro celebrities on social media brand communication. The latter is
purchase intention. due to the co-creation of users and firms (Mar
Theoretical Framework Gómez et al, 2019).
Digital opinion Leaders In social media marketing, celebrity endorsement
The consumer’s involvement with the brand on its is a widely used strategy. Luxury brands use their
social media page will be influenced by the brand social media accounts to post pictures of celebrities
familiarity and information quality. Social media using their products. However, they would be
content has greater influence on consumer’s confronted with the dilemma of whether to
involvement with the social media page. standardize or localize their celebrity endorsers for
Involvement with a brand's social media led to a different markets. The results suggest that
282
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
localized (vs. standardized) celebrity endorsements Two-step flow communication theory (Katz &
lead to more social media interactions. Using Lazarsfeld, 1955) and observational learning
localized (standardized) celebrity endorsements theory (Bandura, 1977) clearly link to explain
enhance the perceived brand luxury for people with actual personal influence or opinion leadership
high (low) patriotism (Shubin Yu et al, 2020). The within social networks. Consistent with the two-
perceived influential power of digital influencers step flow theory, opinion leaders such as digital
not only helps to generate engagement but also influencers act as intermediaries of the
increases expected value and behavioral intention information they seek or receive and, once they
regarding the recommended brands. Moreover, have developed and filtered it, distribute it in the
brand engagement in self-concept raises brand form of a message to other people via WOM, thus
expected value and both variables also affect the increasing the potential influence on them (Bao &
intention to purchase recommended brands (David Chang, 2014; Magno, 2017; Uzunoğlu & Kip,
Jiménez-Castillo, 2019) SMI persona- and content- 2014).
driven attributes, that make followers feel attached
to SMIs (Chung-Wha (Chloe) Ki et al, 2020). Media Dependency Theory
Corporate brands should respond to crises through
a bolstering strategy promoting existing corporate Media dependency theory represents a framework
goodwill, without the influencer’s involvement. to understand the complex relationships among
When leveraging influencers’ support, however, people, the media, and other social systems. Ball-
brands should endeavor to inoculate against Rokeach and DeFleur (1976) originally
manipulative inferences by communicating values- conceptualized the theory for application to
driven motives behind the brand-influencer multiple levels of analysis. The macro level is
partnership (Jaywant Singh, 2020) digital concerned with structural dependency relations
celebrities have an advertising influence on their between audiences, the mass media, and other
SNS followers with the concept of parasocial social institutions. At this level, the theory
relationships (Kumju Hwang et al, 2018). propose proposes that people will rely more on the mass
a model which traces the influencer role of media for information under conditions of
bloggers from the two-step flow theory perspective uncertainty and societal disruptions, such as during
(Ebru Uzunoğlu et al, 2014) only a minority of natural disasters or political crises. At the micro
Latin American and European professionals use level of analysis, media dependency has an
specific strategies to identify and engage with asymmetrical effect in which the attainment of the
SMIs. Practitioners prefer traditional identification goals and needs of individuals is contingent on the
of Social media influencers using indicators such information resources controlled by social and
as personal reputation, the relevance of topics media institutions (Ball-Rokeach, 1985)At a
covered, and the quality of the content shared micro-level of analysis, this theory suggests that
online (Cristina Navarro et al, 2020). the dependency will be greater when the medium
or source of information provides resources that are
283
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
relevant to the achievement of personal and social their products and achieve their desired sales
goals and the satisfaction of the individual’s needs target. (Bao, 2014)
(Ball-Rokeach, 1985; Ball-Rokeach, Rokeach, & Social media platforms are playing an extensively
Grube, 1984;). media system dependency theory to major role in the daily lives of people as people
explore how informational media use was increasingly look at them and the interactions that
associated with two dimensions of people have, have become virtual. People are
environmentalism: the willingness to pay for increasingly looking at social media applications as
environmental protection, and environmental a significant part of their daily life and are more
citizenship (participating in pro-environmental likely to shift their interactions to the virtual
activities). It also examines how this association platforms (i.e. Facebook, Instagram, LinkedIn and
varies across structural-level environmental, Twitter). This, in turn, positively reproduce on
technological, and political factors. The effects of their orientations and behaviors toward different
informational media usage at individual level on kinds of social media technology (Alalwan,
environmentalism were further moderated by 2016).This article demonstrates that eWOM of
country-level factors. Information media use opinion leaders is what drives product sales owing
casted greater impacts on environmentalism when to their product experience and knowledge
the information and communication infrastructure background. Our findings suggest that companies
was better developed, or where the real-world can increase product sales by the effective use of
environmental situation was worse ( Xinzhi Zhang eWOM of such opinion leaders (Bao, 2014). These
et al, 2020). methods allow firms to involve in collaborative
Model and Hypotheses processes of product-related information sharing
McCracken has proposed a meaning transfer model with their customers as well as influencers in order
which states that firstly an endorsers’ credibility to endorse their brand and products to their
and expertise transfer meaning to his/her public followers.
image and then the endorser transfers the meaning In order to launch an actual marketing
to the brand being endorsed and lastly, the meaning communications campaign through eWOM, the
is transferred to the end consumer (McCracken, company has to approach a digital influencer who
1989).The aim of this study is to find how effective would exert their personal influence on their
Influencer Marketing is in India. With the arrival followers (E.M. Rogers, 1962).
of Social Media networks and platforms globally, The online purchase intention depends on
new opportunities of growth and selling are coming perceived value and trust. Perceived trust can be
up. In today’s world it has become more and more predicted by perceived information quality and
important for companies to promote their products perceived security. Perceived security depends on
via social media platforms so that they reach the the vendor reputation, third-party assurance seals,
target audience, increase the word-of-mouth for security and privacy policies, website familiarity
284
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
and disposition towards third-party certification, H1: Followers who perceive higher influential
etc. (Enrique Bonsón Ponte, 2015) power from digital influencers will form more
With media getting more complex and people brand engagement in self-concept.
creating content every minute of the day, the lines
between “influence” and what “looks-like- The opinions, behaviors and decisions of fellow
influence” have been blurred (Hall, 2017). The individuals leads to forming expectations
word Perceived means what you sense is true (Zeithaml, 1993) which leads to generation of
through instincts but it is not actually supported by professed value by the user (Al-Debei, 2014).
facts. Perceived Influence is sensing that someone, Evidences previously have suggested that the
in this case, the Internet Microcelebrities have information from different sources has a significant
influenced you. or a positive response on individuals and the value
The assumption was that higher the consumer perceived by them regarding a product or service
satisfaction, higher the consumer loyalty. Over (Al-Debei, 2014).
time, it turned out that, mere satisfaction will not
make it clear whether the case is of repeat purchase H2: Followers who perceive higher influential
or actual loyalty (Amine, 1998). power from digital influencers will form higher
Researchers have analyzed the extent of including brand expected value.
Brand as part of self-concept.
The Oxford Dictionary defines self-concept as “An Previous researches and study show that effect of
idea of the self-constructed from the beliefs one members in the social of an individual from
holds about oneself and the responses of others”. external sources has a substantial impact on a
Brand Engagement in Self-Concept describes the consumer’s behavior (Bao, 2014). The perceived
likelihood of the consumer to include vital brands quality of content and credibility and the influence
as a part of one's own self-concept. (Flynn, Vol. 3 of these internet microcelebrities spread via
Issue 2, 2011) eWOM are said to generate an intention to
The consumer develops a passion and engagement purchase (Cosenza, 2014). In fact, many studies
with the brand. It is expected that even considering have verified the influence that these micro
to include brands as part of self-concept, will sense celebrities/opinion leaders have on purchase
a higher Brand Expected Value in the customers intention if the recommended brands (Sweeney,
mind (Sprott, 46 (1) 2009). 2014). So greater the persuasive power of the
Observational learning theory states that internet microcelebrities, greater the consumers’
individuals develop their attitudinal and behavioral intention to purchase.
consumer patterns as a result of their interactions
and learning from external socialization agents 285
(Keaveney, 2001) such as friends, peers or mass
media.
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
H3: Followers who perceive higher influential found that greater the perceived value of the brand,
power from digital influencers will have a. greater greater the purchase and repurchase intention.
intention to purchase recommended brands.
H6: Follower brand expected value will positively
It is found that there is a co-creation of value when predict the intention to purchase recommended
an interaction is established with the opinion brands.
leaders online (del Águila-Obra, 2007 27 (3))
through which the consumer develops an As studies have stated that more the influential
engagement with the brand leading to a perception power of an individual, more will be the brand
of the brand value. When the follower feels engagement and greater the brand engagement,
immersion with the brand leading to including the greater will be the intention to purchase. This
brand as part of their self-concept, it ends up hypothesis, will be testing the mediating effect of
leading to a greater brand value (Sprott, 46 (1) brand engagement in self-concept.
2009). Moreover, it is expected that people who
develop an engagement with the brand as part of H7: Follower brand engagement in self-concept
their self-concept will have high expectations of will positively mediate the relationship between
brand value. perceived influence and intention to purchase
recommended brands.
H4: Follower brand engagement in self-concept
will positively predict the brand expected value More the perceived value, more the purchase
intention. This hypothesis will be testing the role of
Studies like (Dwivedi, 2015) have stated how this perceived value as a mediator between,
engagement with a brand leads to consumer perceived influence and purchase intention.
behavior. If there is high attachment and
commitment and loyalty towards a brand, it will H8: Follower brand expected value will positively
lead to purchase intention. (Sprott, 46 (1) 2009) mediate the relationship between perceived
says that if brand engagement in self-concept is influence and intention to purchase recommended
high, chances of purchase are more. brands.
H5: Follower brand engagement in self-concept As studies like (Brodie, 2013 (66)1) have
will positively predict the intention to purchase confirmed the engagement to value relationship.
recommended brands. And studies like (Al-Debei, 2014) that have
suggested that the information from different
The main indicator of purchase intention is sources has a significant or a positive response on
perceived value (Cronin, 2000). Studies have individuals and the value perceived by them
regarding a product or service leads us to test this
286
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
hypothesis which is taking brand engagement in mobile apps and retail. The micro celebrities who
self-concept as the mediating variable between gained prominence during the pandemic were
perceived influence and brand expected value. from fitness, cooking, mental health and gaming
space (Campaign India, 2020).
H9: Follower brand engagement in self-concept
and brand expected value will positively mediate The survey
the relationship between perceived influence and respondents were more than 18 years of age and
intention to purchase recommended brands.. were followers of digital influencers (i.e. Micro
celebrities or non-traditional celebrities who
Method narrate their personal lives and lifestyle. They
also, endorse brands, products and/ or services).
Research Context and Data Collection The population for this research cannot be listed
and hence a non-random sampling method was
The world economic forum report has predicted used for selecting the sample. The initial sample
that Indian consumer market which is presently respondents were selected based on the contacts
$1.5 trillion will expand to $ 6 trillion by 2030. of the researcher and then the contacts of the
Also, India will be the third largest consumer initial respondents were used. Hence, snowball
market behind U.S and China. The digital sampling technique was used for selecting the
influencers are influencing digital shoppers to the sample. The data was collected in the form of a
products they endorse. There is a consumer structured questionnaire through Google Forms
connect when a friendly face recommends the and 217 responses were collected, out of which
product rather than a celebrity endorsing the the people who weren’t following any digital
product. The brands are set to spend up to $15 influencer had to be removed. Hence, the final
Billion on influencer marketing. (Indian Express, sample size was 205. Table 1 summarizes the
2019). The campaign India report revealed that demographic profile of the respondents. The
the largest percentage of influencers were from sample consisted of 52% females, 51% were in
the metro cities Delhi and Mumbai. The study the age group 18 to 23 and 40 % in the age group
also showed that lifestyle and fashion is the 24 to 29. Majority of them were post graduates
number one category, followed by beauty and and were students. The micro celebrities who
travel and other popular categories include food, were mostly followed by the respondents were
parenting and entertainment. The industries which Karikku, EatKochiEat and BhuvanBam in that
mostly use influencer marketing are e-commerce, order. The Social Media platforms which were
mostly used by the respondents were Youtube,
Instagram and Facebook in that order.
Measures
287
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
In order to measure the constructs in the proposed engagement in self-concept was measured using 4
items, the construct brand expected value was
model, the scale developed by David and Raquel measured using 4 items and purchase intention
was measured using 3 items. Hence a scale with
(2019) was used. The scale contained 4 constructs validity check undertaken by the author was used
for the study.
namely perceived influence, brand engagement in
Frequency (%)
self-concept, brand expected value and purchase
98(47.8)
intention. The construct perceived influence was 107(52.2)
105(51.2)
measured using 3 items, the construct brand 82(40)
7(3.4)
Table 1 11(5.4)
11(5.4)
Descriptive statistics of the sample 81(39.5)
113(55.1)
Demographics 139(67.8)
50(24.4)
Gender
Male 9(4.4)
Female 7(3.4)
Age
18-23
24-29
30-35
36-41
Qualification
Intermediate
Graduate
Post Graduate
Occupation
Student
Employed
Self-employed
Homemaker
Results
Scale Reliability
The reliability of the scale was tested using Cronbach’s Alpha. The reliability of the various constructs namely
perceived influence, brand engagement in self-concept brand expected value and purchase intention, as shown
in Table 2 are 0.825, 0.880, 0.890 and 0.882 respectively.
288
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Table 2
Scale Reliability
Variables and items Reliability
Perceived Influence(PerInf) 0.825.
My perceptions often change when I receive information from the influencers that I 0.880
follow (PerInf1) 0.890
I value the opinion of the influencers that I follow as if they were someone close 0.882
whom I trust (PerInf2)
The influencers that I follow suggest helpful products or brands to me (PerInf3)
Brand Engagement in Self-Concept (BESC)
I often feel a personal connection between the brands suggested by the influencers
that I follow and myself (BESC1)
Part of me is defined by the brands suggested by the influencers that I follow (BESC2)
I feel as if a have a close personal connection with the brands suggested by the
influencers that I follow (BESC3)
There are links between the brands suggested by the influencers that I follow and how I view
myself (BESC4)
Brand Expected Value (BEV)
I think that the brands suggested by the influencers that I follow have an acceptable
standard of quality (BEV1)
In my opinion, the products of the brands suggested by the influencers that I follow are
well made (BEV2)
The brands suggested by the influencers that I follow seem attractive to me (BEV3)
I positively value the brands suggested by the influencers that I follow (BEV4)
Intention to purchase recommended brands (PurInt)
I would purchase a brand based on the advice I am given by the influencers that
I follow (PurInt1)
I would follow brand recommendations from the influencers that I follow (PurInt2)
In the future, I will purchase the products of brands recommended by the influencers that I follow (PurInt3)
289
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Descriptive Statistics
Table 3
Descriptive statistics
Statistics
Brand Engagement
Perceived Influence in Brand Expected Purchase Intention
self-concept Value 205
0
N Valid 205 205 205 3.21
Missing 0 3.33
3.25 00 .916
Mean 3.33 1
Median .859 2.93 3.37 5
Std. Deviation 1
Minimum 5 3.00 3.50
Maximum
.928 .841
11
55
All variables shown in Table 3 have been measured using a five-point Likert Scale. The mean value of the
variables lies in the range of 2.5 to 3.5 and said to be the in Medium-level. The median lies in 3 to 3.5 range.
290
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
5.3 Hypothesis Testing
The hypothesized results were obtained using the Structural Equation analysis. The goodness-of- fit statistics
showed that the model fit was satisfactory (CMIN/DF = 2.182, GFI = 0.899, RMSEA= 0.076, CFI = 0.959). The
results are shown in Table 4 and Fig:1.
Table 4: Hypothesis Testing
Hypotheses Standardized Unstandardized t-value p- value Results
Parameter Parameter estimates
H1 (PerInf-BESC) Estimates
H2 (PerInf-BEV) 0.805 9.906 0.000 Accepted
H3 (PerInf-PurInt) 0.081 0.521 4.710 0.000 Accepted
H4 (BESC-BEV) 0.557 2.867 0.004 Accepted
H5 (BESC-PurInt) 0.111 0.336 3.096 0.002 Accepted
H6 (BEV-PurInt) 0.067 0.464 0.642 Rejected
0.194 0.356 1.695 0.090 Rejected
0.109
0.145
0.210
The table 4 shows that the relation between perceived influence and brand engagement in self-concept is
significant as the value obtained is 0.000. This means that perceived influence has an influence on brand
engagement in self-concept. Hence, Hypotheses 1 (H1) is true and it is accepted at the 5% level. Similarly, the
relation between perceived influence and brand expected value is also significant as the value obtained is 0.0000.
Perceived Influence has an influence on intention to purchase the brands being recommended as the value
obtained is 0.004. Hence hypotheses 3 is significant. Brand engagement in self-concept also has an impact on
brand expected Value. The followers’ brand Engagement in self-concept has an effect on brand expected value
and it is accepted at the 5% level. However, brand engagement in self-concept does not lead to an intention to
purchase as the value obtained is greater than the value 0.05. Hence hypotheses 5 is rejected at the 5% level.
Similarly, brand expected value does not lead to an Intention to purchase the brands being recommended as the
value obtained is 0.090
291
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Fig:1
Mediation
The mediation analysis was done using SPSS process. The results of mediation analysis are shown in Table 5, 6,7
& 8.
292
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Table 5
OUTCOME VARIABLE: Brandeng
Model Summary MSE F df1 df2 p
R R-sq 0.4180 217.5697 1.0000 203.0000 .0000
0.7193 0.5173
Model coeff se t p LLCI ULCI
constant 0.3987 0.1772 2.2503 0.0255 0.0494 0.7480
PercInfl
0.7774 0.0527 14.7502 0.0000 0.6735 0.8813
Table 5 shows that the first mediation variable Brand engagement in self-concept(Brandeng) is given in terms of
the independent variable perceived influence(PercInfl) as follows
Brandeng = 0.3987 + 0.7774 X PercInfl
Table 6
OUTCOME VARIABLE: Brandexp
Model Summary MSE F df1 df2 p
R R-sq 202.0000 0.0000
0.2417 197.5811 2.0000
0.8135 0.6617
Model coeff se t p LLCI ULCI
constant 0 .8168 0.1364 5.9893 0.0000 0.5479 1.0858
PercInfl 0.4220 0.0577 7.3150 0.0000 0.3082 0.5357
Brandeng 0 .4046 0.0534 7.5803 0.0000 0.2993 0.5098
Table 6 shows that the second mediation variable Brand expected value(Brandexp) is given in terms of the
independent variables Perceived influence(PercInfl) and Brand engagement in self-concept(Brandeng) as follows
Brandexp = 0.8168 + 0.4220 X PercInfl + 0.4046 X Brandeng
293
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Table 7
OUTCOME VARIABLE: Purchint
Model Summary
R R-sq MSE F df1 df2 p
0.3314 105.1294 3.0000 201.0000 0.0000
0 .7815 0.6108
Model se t p LLCI ULCI
coeff 0.2805 0.1733 1.6185 0.1071 -0.0612 0.6222
0.3747 0.0760 4.9322 0.0000 0.2249 0.5245
constant 0.1742 0.0708 2.4598 0.0147 0.0346 0.3139
PercInfl 0.3559 0.0824 4.3199 0.0000 0.1935 0.5184
Brandeng
Brandexp
Table 7 shows that the outcome variable Intention to purchase recommended brands(Purchint) is given in terms
of the independent variables Perceived influence(PercInfl), Brand engagement in self-concept(Brandeng) and
Brand expected value as follows
Purchint = 0.2805 + 0.3747 X PercInfl + 0.1742 X Brandeng + 0.3559 X Brandexp
Table 8
Direct & Indirect Effects of Perceived Influence(X) on Intention to purchase recommended brands (Y)
Direct effect of X on Y
Effect se t p LLCI ULCI
0.3747 0 .0760 4.9322 0.0000
0.2249 0.5245
Indirect effect(s) of X on Y:
Effect BootSE BootLLCI BootULCI
TOTAL 0.3975 0 .0916 0.2326 0 .5905
0.0699 0.0077 0.2802
Ind1 0.1354 0.0527 0.0563 0.2660
0 .0367 0.0414 0.1842
Ind2 0.1502
Ind3 0 .1119
Indirect effect key:
Ind1 PercInfl -> Brandeng -> Purchint
Ind2 PercInfl -> Brandexp -> Purchint
Ind3 PercInfl -> Brandeng -> Brandexp -> Purchint
Table 8 highlights that the direct effect of perceived influence(X) on intention to purchase recommended brands
(Y) is significant at 1% level. The table also shows that the bootstrap confidence intervals for all the 3 indirect
effects do not include 0. Hence all the 3 indirect effects are significant.
Hence, mediation analysis shows that hypotheses 7,8 & 9 are accepted.
294
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Discussion and implications intention (Chen, R. et al., 2020). This also adds to the
result that brand engagement in self-concept
Even though there is a great potential for studies on mediates between value consciousness and loyalty
micro celebrities, very few studies were carried out (Ismail, A.R.et al., 2020). The research also revealed
on the influence of micro celebrities on brand that brand expected value mediates the relationship
experience (Eroğlu, F. et al., 2019) The study reveals between perceived influence of micro celebrity and
that the perceived influence leads to brand purchase intention(H8). The study demonstrated that
engagement in self-concept (H1). This finding adds brand engagement in self-concept and brand
to the previous research that suggests that extrinsic expected value mediates the relationship between
aspiration is related to brand engagement in self- perceived influence of micro celebrity on purchase
concept (Wiktor Razmus et al.,2017). This finding is intention(H9).
also in line with the study undertaken by David
Jiménez-Castillo et al. (2019). The study also Theoretical Contribution
demonstrates that perceived influence of micro The main theoretical contribution of the study is that
celebrities lead to brand expected value(H2). This it proves that brand engagement in self-concept
finding is in line with result that users find the micro mediates the effect of perceived influence of micro
celebrities credible if they follow certain criteria for celebrities on purchase intention. The other major
online behavior and self-presentation (Djafarova, E. contribution of the study is that it proves brand
and Trofimenko, O.et al., 2019). Further this paper expected value mediates the effect of perceived
found that perceived influence of micro celebrity’s influence of micro celebrities on purchase intention.
impacts purchase intention(H3). Also, the result adds Also, brand engagement in self-concept and brand
to the finding that communications made by the expected value mediates the effect of perceived
celebrities on Instagram would influence consumers influence of micro celebrities on purchase intention.
to adopt these platforms (Srivastava, A et al., 2020).
This result also adds to the finding made in the study Practical Implications
by Osei-Frimpong, K. et al. (2019). The study The study shows that the micro celebrities change the
revealed that celebrity endorser with attributes perception & opinion of followers and this in turn
trustworthiness, attractiveness and familiarity has a lead to the personal connection between the brands
positive influence on purchase intention. The paper & the followers. Also, when the personal connection
identified that the impact of brand engagement in changes then the followers purchase the brand
self-concept on brand expected value is positive(H4). suggested by the influencers. The study also reveals
This result is also in line with the result obtained by that when the followers value the opinion of
David Jiménez-Castillo et al. (2019). Also, the influencers then the followers will positively value
research shows that brand engagement in self- the brands suggested by influencers. Also, when the
concept does not influence purchase intention (H5). value of the suggested brand increases then followers
This result is contrary to the earlier studies by David would take the brand recommendations of the
Jiménez-Castillo et al. (2019). But, this result influencers. The study highlights that when micro
substantiates the result that brand engagement in self- celebrities suggest brands to followers then the
concept influences both brand loyalty and positive followers will have a close personal connection with
WOM (Nyadzayo, M.W.,2020). The study showed the brands and this in turn would increase the
that the brand expected value does not lead to attractiveness of the suggested brands which would
purchase intention(H6). This result is contrary to the lead to the purchase of the brand suggested by
result obtained by David Jiménez-Castillo et al. influencers.
(2019). The paper also highlighted the mediating
effect of brand engagement in self-concept between References
perceived influence and purchase intention (H7). This
result adds to the result that brand engagement Abidin, C. (2016). Visibility labour: Engaging with
completely mediates between destination brand Influencers’ fashion brands and #OOTD advertorial
authenticity and revisit intention and the relationship campaigns on Instagram. Media International
between brand self-congruence and recommendation Australia, 161(1), 86–100.
295
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
Casaló, L. V., Flavián, C., & Ibáñez-Sánchez, S. Gnambs, T. (2017). Opinion leadership types or
continuous opinion leadership traits? International
(2018). Influencers on Instagram: Antecedents and Journal of Psychology, 54(1), 88–92.
doi:10.1002/ijop.12442
consequences of opinion leadership. Journal of
Goldsmith, E. B. (2015). Introduction to Social
Business Research. Influence: Why It Matters. International Series on
Consumer Science, 3–22. doi:10.1007/978-3-319-
doi:10.1016/j.jbusres.2018.07.005 20738-4_1
Chen, R., Zhou, Z., Zhan, G. and Zhou, N., 2020. The Hu, H., & Zhu, J. J. H. (2015). Social networks, mass
impact of destination brand authenticity and media and public opinions. Journal of Economic
destination brand self-congruence on tourist loyalty: Interaction and Coordination, 12(2), 393–411.
The mediating role of destination brand doi:10.1007/s11403-015-0170-8
engagement. Journal of Destination Marketing &
Management, 15, p.100402. Huyen, T.T. and Costello, J. 2017. Quality versus
Quantity: An investigation into Electronic Word of
Coates, A. E., Hardman, C. A., Halford, J. C. G., Mouth’s Influence on Consumer Buying Intention,
Christiansen, P., & Boyland, E. J. (2019). Social Journal of Promotional Communications, 5 (2), 137-
Media Influencer Marketing and Children’s Food 155
Intake: A Randomized Trial. Pediatrics, 143(4),
e20182554. doi:10.1542/peds.2018-2554 Ismail, A.R., Nguyen, B., Chen, J., Melewar, T.C.
and Mohamad, B., 2020. Brand engagement in self-
Coates, A. E., Hardman, C. A., Halford, J. C. G., concept (BESC), value consciousness and brand
Christiansen, P., & Boyland, E. J. (2019). Food and loyalty: a study of generation Z consumers in
Beverage Cues Featured in YouTube Videos of Malaysia. Young Consumers.
Social Media Influencers Popular With Children: An
Exploratory Study. Frontiers in Psychology, 10. Jiménez-Castillo, D., & Sánchez-Fernández, R.
doi:10.3389/fpsyg.2019.02142 (2019). The role of digital influencers in brand
recommendation: Examining their impact on
Cotter, K. (2018). Playing the visibility game: How engagement, expected value and purchase intention.
digital influencers and algorithms negotiate influence International Journal of Information Management,
on Instagram. New Media & Society, 21(4), 895– 49, 366–376. doi:10.1016/j.ijinfomgt.2019.07.009
913. doi:10.1177/1461444818815684
Kapitan, S., & Silvera, D. H. (2015). From digital
David Jiménez-Castillo⁎, Raquel Sánchez- media influencers to celebrity endorsers: attributions
Fernández. The role of digital influencers in brand drive endorser effectiveness. Marketing Letters,
recommendation: Examining their impact on 27(3), 553–567. doi:10.1007/s11002-015-9363-0
engagement, expected value and purchase intention,
International Journal of Information Management 49 Knoll, J., & Matthes, J. (2016). The effectiveness of
(2019) 366–376 celebrity endorsements: a meta-analysis. Journal of
the Academy of Marketing Science, 45(1), 55–75.
Djafarova, E. and Trofimenko, O., 2019. doi:10.1007/s11747-016-0503-8
‘Instafamous’–credibility and self-presentation of
micro-celebrities on social media. Information, Kudeshia, C., & Kumar, A. (2017). Social eWOM:
communication & society, 22(10), pp.1432-1446. does it affect the brand attitude and purchase
intention of brands? Management Research Review,
Eroğlu, F. and Bayraktar köse, E., 2019. Utilization 40(3), 310–330. doi:10.1108/mrr-07-2015-0161
of online influencers as an experiential marketing
tool: A case of instagram micro-celebrities. Journal Lutkenhaus, R. O., Jansz, J., & Bouman, M. P.
of International Social Research, 12(63). (2019). Tailoring in the digital era: Stimulating
dialogues on health topics in collaboration with
Franzke, M., Bleicher, J., & Züfle, A. (2016).
Finding Influencers in Temporal Social Networks
Using Intervention Analysis. Databases Theory and
Applications, 3–16. doi:10.1007/978-3-319-46922-
5_1
296
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
social media influencers. DIGITAL HEALTH, 5, Alliances Between Online Influencers and Brands
205520761882152. doi:10.1177/2055207618821521 Impact Consumer Value: An Abstract Perceptions.
McCosker, A. (2018). Engaging mental health Song, S. Y., Cho, E., & Kim, Y.-K. (2017).
online: Insights from beyondblue’s forum Personality factors and flow affecting opinion
influencers. New Media & Society, 20(12), 4748– leadership in social media. Personality and
Individual Differences, 114, 16–23.
4764. doi:10.1177/1461444818784303 doi:10.1016/j.paid.2017.03.058
Nyadzayo, M.W., Johnson, L.W. and Rossi, M., Uzunoğlu, E., & Misci Kip, S. (2014). Brand
2020. Drivers and outcomes of brand engagement in communication through digital influencers:
self-concept for luxury fashion brands. Journal of Leveraging blogger engagement. International
Fashion Marketing and Mana Journal of Information Management, 34(5), 592–
602. doi:10.1016/j.ijinfomgt.2014.04.007
Osei-Frimpong, K., Donkor, G. and Owusu-
Frimpong, N., 2019. The impact of celebrity Walter, S., & Brüggemann, M. (2018). Opportunity
endorsement on consumer purchase intention: An makes opinion leaders: analyzing the role of first-
emerging market perspective. Journal of marketing hand information in opinion leadership in social
theory and practice, 27(1), pp.103-121. media networks. Information, Communication &
Society, 1–21. doi:10.1080/1369118x.2018.1500622
Raghupathi, V., & Fogel, J. (2015). The Impact of
Opinion Leadership on Purchases through Social Wang, Y., Wu, L., Chen, H., & Yeh, M. (2012).
Networking Websites. Journal of Theoretical and Interactivity of Social Media and Online Consumer
Applied Electronic Commerce Research, 10(3), 18– Behavior: the Moderating Effects of Opinion
29. doi:10.4067/s0718-18762015000300003 Leadership. ICIS.
Riefa, Christine and Clausen, Laura, Towards Wiktor Razmus, Małgorzata Jaroszyńska &
Fairness in Digital Influencers' Marketing Practices Magdalena Palęga. Personal aspirations and brand
(April 12, 2019). 8 (2019) Journal of European engagement in self-concept. Personality and
Consumer and Market Law (EuCML) . Available at Individual Differences, Volume 105, 15 January
SSRN: https://ssrn.com/abstract=3364251 2017, Pages 294-299
Schäfer, M., & Taddicken, M. (2015). Xiong, F., & Liu, Y. (2014). Opinion formation on
Mediatized opinion leaders: New patterns of opinion social media: An empirical approach. Chaos: An
leadership in new media environments? Interdisciplinary Journal of Nonlinear Science,
<i>University of Southern California</i>. 24(1), 013130. doi:10.1063/1.4866011
https://doi.org/10.5167/UZH-114938
Yang, L., Ha, L., Wang, F., & Abuljadail, M. (2015).
Schivinski, B., & Dabrowski, D. (2014). The effect Who Pays for Online Content? A Media Dependency
Perspective Comparing Young and Older People.
of social media communication on consumer International Journal on Media Management, 17(4),
277–294. doi:10.1080/14241277.2015.1107567
perceptions of brands. Journal of Marketing
https://www.newindianexpress.com/magazine/2019/
Communications, 22(2), 189–214. oct/13/the-dizzying-world-of-indias-social-media-
influencers-2046471.html
doi:10.1080/13527266.2013.871323
https://www.campaignindia.in/article/majority-of-
Shrivastava, A., Jain, G., Kamble, S.S. and Belhadi, indian-influencers-come-from-mumbai-and-delhi-
A., 2020. Sustainability through online renting report/462322
clothing: Circular fashion fueled by instagram micro-
celebrities. Journal of Cleaner Production, 278,
p.123772.
Singh, J., Quamina, L. T., & Xue, T. (2017). Ten
Million Followers and Counting: How Digital Brand
297
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
The Influence of Family Resource, Family Stress, Money Attitudes, Self-
Control towards Materialism: The Case of Generation Y in Bangkok
Metropolitan
Sararat Thongbaisri
Ekkachai Boonchuaymetta
Graduate School of Business, Assumption University of Thailand, Hua Mak Campus, Ram
Kamhaeng 24, Bangkapi, 10240
*Corresponding author’s e-mail: [email protected]
Abstract
Nowadays, the population of generation Y most likely drives the consumer market. Hence scrutinizing their
behavior’s consumer toward their money attitudes and materialism has become more critical. The researcher
has ultimate purposes of determining and investigating the behavior of generation Y toward money attitudes,
which in turn affect materialism. Research findings show that how family resources received during childhood,
perceived stress from disruptive childhood and self-control are influencing the varied impact on Materialism and
Money Attitude dimensions. This sample surveyed n=412 Thai Generation Y (1980-1997) in Bangkok Metropolis
to examine whether family resources received during childhood, perceived stress from disruptive childhood,
money attitudes and self- control affect Thai Generation Y Bangkok Metropolis’s life-course. This study founds
perceived stress from disruptive childhood family have certain impacts on later-life of money attitudes. Money
attitudes also affect to materialism as well as the current Self-Control behavior has significant effects on
materialism.
Keywords: Materialism, Generation Y, Money Attitudes, Self-Control, Young Adult.
Introduction working aged population, representing more than
30% of the labor force (The National Statistical
In this technologically advanced era, the workplace
will be very soon converged by three of the
generations at the same time, which are Generation Office, 2019; Statista Research Department, 2019).
X, Generation Y and Generation Z. According to As such, many consumers’ products and services
the statistics from Worldometers (2020), there are companies have turned their focuses to the
around 2.34 billion people of the world population. Generation Y as one of the key targets, as a wide
Comparing the number of populations in these three range of studies, had been being conducted to
generations in the workplace, Generation Y seems understand their identity. According to the research
to be the most populated generation in the world. It done by Donnelly and Scaff (n.d.), it supports that
is inevitable to say that generation Y drives the not only are the young adult transforming their own
economic world. This generation was born near the shopping behaviors, but they are also changing those
early of the twenty-first century, which is the of their parents, who are increasingly mimicking the
beginning of the digital era, such as high demands of their children for seamlessness as they
technological and advantage social media. Young climb the digital learning curve. This transformation
adulthood is a district life cycle changing experiences happens, for this generation spends their lives
such as newly entering the job market, independently staying connected to the media environment,
managing money for the first time and qualifying to unnecessary demand and compulsive buying things.
obtain credit cards. These could be the reason why Gen Y always keep following the trends. Whatever
young adults had recently been being captured a lot is the new lunching, they feel like “it must have”, so
of attention nowadays. Economically, Generation Y this behavior ultimately affects how they live, work
are now outnumbered to previous generations in the and spend.
labor force and has become the largest portion of
Focusing on the financial behavior of generation Y,
more than half of them say that debt is their biggest
298
Au Virtual International Conference 2020
Entrepreneurship and Sustainability in the Digital Era
Assumption University of Thailand
October 30, 2020
Co-hosted by
financial concern more so than rent and living more money than the older generations.
expenses. In fact, 64% of generation Y contributed Furthermore, a number of surveys (Thai Military
for college with student loans, while only 29% of Bank, 2019; Narata, 2018) displayed that Gen Y
Baby Boomers did, according to Wells Fargo want to be financially independent and have some
survey (2016). Student loans do not account for all saving after their retirement, yet the lack of long
of those obligations of unnecessary demand. term financial planning and financial attitudes
Therefore, generation Y will likely have more debt prevents them from being there.
in credit card than their parents (those born in Baby
Bloomers era). The cause of those debt burdens, with According to the research of (Noble, Haytko, and
some blaming young people’s poor budgeting and Phillips, 2009), Generation Y are in the marketplace
overspending. Generation Y grew up with online with the numbers and the purchasing power to have
banking and many never learned to balance a an unprecedented impact on the economy. The
chequebook. It is fair to say that generation Y are findings indicate that issues relating to socialization,
another victim of relaxed lending policies even uncertainty reduction, reactance, self-discrepancy,
after the mortgage crisis, like accessible credit cards and feelings of accomplishment and connectedness
and debt, is easier to acquire these days. drive Gen Y consumers' product purchases and retail
Generation Y also invests in capital markets and patronage. One of the changes that affects the
financial products such as Stock and Mutual Fund behavior is up to the expectation of family structure
(Bank of Thailand, 2013; Chen, 2019). On the changes. Twenty-five per cent of Generation Y is
contrary, various National Level survey seemed to being raised in non-intact, divorced or single-parent
indicate troubling debt level (Scheresberg and environment. Therefore, this finding was questioning
Lusardi, 2014; Beattie, 2016; Thai Military Bank, this research to investigate if childhood family
2019), excessive spending (Federal Reserve Bank experiences have influences on later-life
of New York, 2019; Thai Military Bank, 2019; consumption behavior. For a better understanding of
Amornvivat et al., 2014; Beattie, 2016), the consumption outcome of childhood family, this
materialism (Beattie, 2016; Thai Military Bank, research also questions for another object that can
2019; Inseng and Teichert, 2016), and lack of affect Gen Y in later- life. One set of probable
long-term financial planning (Amornvivat et al., psychological reactions, which may mediate in the
2014; Idris, Krishnan, and Azmi, 2013; Mien and relationship childhood family experiences and
Thao, 2015). Generation Y’s identity and materialism are money attitudes, feeling and attitudes
preference align in the same generation, financial toward money (e.g., power/prestige, obsession,
behaviors of GEN Y seem to be contradicted to worry, achievement, retention, security and budget)
each other in the same generation as there have from their past-life experiences, but those are the
been opposing evidence. On the other hands, Gen experiences in the past. Another current behavior of
Y were more risk-taking, comparing to other Gen Y, which would probably be Self-Control
Generations. (Lusardi, 1999). People make poor financial
Turning to Thailand, the household debt increased decisions; they save too little for retirement. They
to 78.7% of gross domestic product (GDP) in overspend and do not pay the bill on time
Q2/2019 from 2017 by 6.3 percent, which is the (Sotiropoulos and Astous, 2013). As the generation
second-highest in Asian countries, and when Y is the successor of the previous generation, This
focusing into Generation Y, half of the generation study aims to investigate how the childhood family
Y have debts and contribute to around 7% of the resource and the perceived stress from family affects
nonperforming loan (NPL) (Thai Military Bank, their money attitudes, self-control towards
2019). There is a fair number of evidence showing materialism.
that Thai young adults are having the problem of Objectives of the study
financial management and seem to lack financial
awareness. The survey conducted by Thai Military This study aims to investigate how the childhood
Bank (2019) concluded that not only do Thai Gen family resource and the perceived stress from family
Y have a tendency to consider material possessions affects their money attitudes, self-control towards
and physical comfort as more important than materialism.
spiritual values, but they can buy anything without Literature Review
any thoughts or hesitation. Also, Narata (2018)
mentioned that the Data Intelligence & Customer Duh (2016) found that later-life money attitudes and
Insight (DICI) showing that Gen Y tends to spend the degrees of the materialism of generation Y in
South Africa are influenced by two childhood family
299
The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.
Proceeding AU ICESDE 2020
Discover the best professional documents and content resources in AnyFlip Document Base.
Search
Proceeding AU ICESDE 2020
- 1 - 50
- 51 - 100
- 101 - 150
- 151 - 200
- 201 - 250
- 251 - 300
- 301 - 350
- 351 - 400
- 401 - 450
- 451 - 500
- 501 - 550
- 551 - 595
Pages: