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|Title: ||The signaling effect of online numerical information on the customers’ reservation decision making|
|Authors: ||Chen, Chih-Chien|
|Issue Date: ||2015-02-05 16:02:01 (UTC+8)|
|Abstract: ||Purpose of the study: Based on Cialdini’s principles of social influence, numerical information like the number of
people viewing the hotel’s website and the number of people who have booked lodging at the hotel, once available to
OTA users, is expected to have an impact on their reservation decisions.
Design/methodology/approach: A 2x2 experimental design is employed. Two independent variables are the number of
people currently viewing and the number of people who booked (in the past 24 hours). These four treatments are
randomly assigned to the participants who log onto a simulation OTA website. Customers’ binomial reservation
decisions (i.e., yes or no) are the dependent variable.
The sample size of 500 was recruited from the Amazon’s Mechanical Turk (MTurk), an integrated participant
compensation system that allows a large participant pool. Findings (Buhrmester, Kwang, & Gosling, 2011) indicate
that MTurk can be used to obtain high-quality data inexpensively and rapidly.
Findings: The study made the following hypotheses: (1) The more people who are viewing the same hotel web page
that the buyer is viewing, the more likely it is that the buyer will make the reservation. (2) The greater the number of
people who have booked the same hotel that the buyer is viewing, the more likely it is that the buyer will make a
reservation. (3) The cross-signaling effect of current event (i.e., the number of people viewing) is bigger than the past
event (i.e., the number of people who have booked).
Originality/value: OTA used to offered information that was not transparent to buyers. Specifically, due to the
practice of dynamic pricing, customers have limited information regarding the price change over time and the
inventory. However, this asymmetric information matrix no longer exists. This study explores the very up-to-date
online reservation mechanism that signals scarcity and social proof to buyers.
Research limitations/implications: With the increasing reservations made through these OTA and the updating features
on these web sites, this study is the first attempt to understand the social proof and scarcity theory applied in the
Practical implications: The most crucial expected empirical implication is that the tourism and hospitality market
practitioners may understand the importance of transparent (yet unintentional) signals in avoiding the market failure.
|Appears in Collections:||[國際觀光管理學系] 會議論文 |
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