Determinants of Indonesian Gen Z’s purchase behavior on online travel platforms: Extending UTAUT model
-
DOIhttp://dx.doi.org/10.21511/im.19(4).2023.05
-
Article InfoVolume 19 2023, Issue #4, pp. 54-65
- 538 Views
-
342 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Understanding Gen Z’s purchase behavior in online travel agents is essential to effectively engage and meet the unique preferences of this generation, fostering long-term loyalty and satisfaction. Utilizing the unified theory of acceptance and use of technology (UTAUT) as the theoretical foundation, this study aims to analyze the impact of performance expectancy, effort expectancy, social influence, facilitating condition, and trust on purchase decision of flight tickets through online travel agent platforms. The data were collected through an online survey of 253 Gen Z users of online travel agent applications in Indonesia, such as Traveloka, Tiket.com, Pegipegi.com, Agoda, and Booking.com. The study employed PLS-SEM to test the hypotheses. The results indicate that performance expectancy, effort expectancy, social influence, and facilitating conditions influence trust (t-value 1.645, p-value < 0.05). Further, performance expectancy, effort expectancy, and facilitating conditions influence purchase decisions (t-value 1.645, p-value < 0.05). However, social influence does not significantly affect purchase decisions (t-value 1.041, p-value > 0.05). The analysis also shows that trust fully mediates the relationship between social influence and purchase decisions, while no mediating effect is identified in the relationship between effort expectancy and purchase decisions. By investigating the key factors contributing to Gen Z’s buying behavior in online travel agent platforms, this paper provides valuable insights for online travel businesses to effectively engage and cater to Gen Z’s unique needs and preferences.
- Keywords
-
JEL Classification (Paper profile tab)M30, M31, L93
-
References53
-
Tables8
-
Figures1
-
- Figure 1. Conceptual model with path analysis results
-
- Table 1. Demographic profile of respondents
- Table 2. Common bias method
- Table 3. Measurement analysis
- Table 4. Discriminant validity with HTMT
- Table 5. Structural analysis
- Table 6. Mediation analysis
- Table 7. Summary of hypotheses testing
- Table 8. Structural assessment
-
- Almunawar, M. N., Anshari, M., & Lim, S. A. (2022). Customer acceptance of online travel agents in Indonesia. Journal of Asia-Pacific Business, 23(3), 254-272.
- Alotaibi, T. S., Alkhathlan, A. A., & Alzeer, S. S. (2019). Instagram shopping in Saudi Arabia: What influences consumer trust and purchase decisions? International Journal of Advanced Computer Science and Applications, 10(11).
- Benitez, J., Henseler, J., Castillo, A., & Schuberth, F. (2020). How to perform and report an impactful analysis using partial least squares: Guidelines for confirmatory and explanatory IS research. Information & Management, 57(2), 103168.
- Cai, L., Yuen, K. F., & Wang, X. (2023). Explore public acceptance of autonomous buses: An integrated model of UTAUT, TTF and trust. Travel Behaviour and Society, 31, 120-130.
- Chaouali, W., Yahia, I. B., & Souiden, N. (2016). The interplay of counter-conformity motivation, social influence, and trust in customers’ intention to adopt Internet banking services: The case of an emerging country. Journal of Retailing and Consumer Services, 28, 209-218.
- Chen, L., Rashidin, M. S., Song, F., Wang, Y., Javed, S., & Wang, J. (2021). Determinants of consumer’s purchase intention on fresh e-commerce platform: Perspective of UTAUT model. SAGE Open, 11(2).
- Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295-336). Lawrence Erlbaum Associates Publishers.
- Chin, W., Cheah, J. H., Liu, Y., Ting, H., Lim, X. J., & Cham, T. H. (2020). Demystifying the role of causal-predictive modeling using partial least squares structural equation modeling in information systems research. Industrial Management and Data Systems, 120(12), 2161-2209.
- Comegys, C., Hannula, M., & Váisánen, J. (2009). Effects of consumer trust and risk on online purchase decision-making: A comparison of Finnish and United States students. International Journal of Management, 26(2), 295-308.
- Damanik, J., Priyambodo, T. K., Wibowo, M. E., Pitanatri, P. D. S., & Wachyuni, S. S. (2023). Travel behaviour differences among Indonesian youth in Generations Y and Z: Pre-, during and post-travel. Consumer Behavior in Tourism and Hospitality, 18(1), 35-48.
- Escobar-Rodríguez, T., & Carvajal-Trujillo, E. (2014). Online purchasing tickets for low cost carriers: An application of the unified theory of acceptance and use of technology (UTAUT) model. Tourism Management, 43, 70-88.
- Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.
- Hair, J. F., Astrachan, C. B., Moisescu, O. I., Radomir, L., Sarstedt, M., Vaithilingam, S., & Ringle, C. M. (2021). Executing and interpreting applications of PLS-SEM: Updates for family business researchers. Journal of Family Business Strategy, 12(3), 100392.
- Hair, J. F., Howard, M. C., & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101-110.
- Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications, Inc.
- Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152.
- Hajli, N. (2020). The impact of positive valence and negative valence on social commerce purchase intention. Information Technology & People, 33(2), 774-791.
- Hanaysha, J. R. (2022). Impact of social media marketing features on consumer’s purchase decision in the fast-food industry: Brand trust as a mediator. International Journal of Information Management Data Insights, 2(2), 100102.
- Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115-135.
- Jain, G., Kamble, S. S., Ndubisi, N. O., Shrivastava, A., Belhadi, A., & Venkatesh, M. (2022). Antecedents of blockchain-enabled e-commerce platforms (BEEP) adoption by customers – A study of second-hand small and medium apparel retailers. Journal of Business Research, 149, 576-588.
- Jeon, H.-M., Ali, F., & Lee, S.-W. (2019). Determinants of consumers’ intentions to use smartphones apps for flight ticket bookings. The Service Industries Journal, 39(5-6), 385-402.
- Khan, S., Khan, S. U., Khan, I. U., Khan, S. Z., & Khan, R. U. (2023). Understanding consumer adoption of mobile payment in Pakistan. Journal of Science and Technology Policy Management.
- Kim, H., Xiang, Z., & Fesenmaier, D. R. (2015). Use of the internet for trip planning: A generational analysis. Journal of Travel & Tourism Marketing, 32(3), 276-289.
- Kock, F., Berbekova, A., & Assaf, A. G. (2021). Understanding and managing the threat of common method bias: Detection, prevention and control. Tourism Management, 86, 104330.
- Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of E-Collaboration, 11(4), 1-10.
- Le, L. T., Ly, P. T. M., Nguyen, N. T., & Tran, L. T. T. (2022). Online reviews as a pacifying decision-making assistant. Journal of Retailing and Consumer Services, 64, 102805.
- Lu, B., Fan, W., & Zhou, M. (2016). Social presence, trust, and social commerce purchase intention: An empirical research. Computers in Human Behavior, 56, 225-237.
- Lu, J., Yu, C.-S., & Liu, C. (2005). Facilitating conditions, wireless trust and adoption intention. Journal of Computer Information Systems, 46(1), 17-24.
- Meta Indonesia. (2022). Gen Z Trend Report.
- Mohd Suki, N., & Mohd Suki, N. (2017). Flight ticket booking app on mobile devices: Examining the determinants of individual intention to use. Journal of Air Transport Management, 62, 146-154.
- Namahoot, K. S., & Jantasri, V. (2023). Integration of UTAUT model in Thailand cashless payment system adoption: The mediating role of perceived risk and trust. Journal of Science and Technology Policy Management, 14(4), 634-658.
- Ng, C. S. P. (2013). Intention to purchase on social commerce websites across cultures: A cross-regional study. Information & Management, 50(8), 609-620.
- Nugroho, A. P., & Hati, S. R. H. (2020). Determinants of repurchase intention and switching intention: Analysis of online travel agent, peer-to-peer accommodation, and virtual hotel operator platforms. Market-Tržište, 32(1), 79-96.
- Oliveira, T., Faria, M., Thomas, M. A., & Popovič, A. (2014). Extending the understanding of mobile banking adoption: When UTAUT meets TTF and ITM. International Journal of Information Management, 34(5), 689-703.
- Ratnasingam, P. (2004). The role of facilitating conditions in developing trust for successful electronic marketplace participation. Journal of Internet Commerce, 3(3), 95-110.
- Robinson, V. M., & Schänzel, H. A. (2019). A tourism inflex: Generation Z travel experiences. Journal of Tourism Futures, 5(2), 127-141.
- Shaikh, I. M., & Amin, H. (2023). Consumers’ innovativeness and acceptance towards use of financial technology in Pakistan: Extension of the UTAUT model. Information Discovery and Delivery.
- Sam, M., & Tahir, H. (2009) Website Quality and Consumer Online Purchase Intention of Air Ticket. International Journal of Basic & Applied Sciences IJBAS, 9.
- Sharma, S., Singh, G., Gaur, L., & Afaq, A. (2022). Exploring customer adoption of autonomous shopping systems. Telematics and Informatics, 73, 101861.
- Shmueli, G., Ray, S., Velasquez Estrada, J. M., & Chatla, S. B. (2016). The elephant in the room: Predictive performance of PLS models. Journal of Business Research, 69(10), 4552-4564.
- Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J. H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: Guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322-2347.
- Slade, E. L., Dwivedi, Y. K., Piercy, N. C., & Williams, M. D. (2015). Modeling consumers’ adoption intentions of remote mobile payments in the United Kingdom: Extending UTAUT with innovativeness, risk, and trust. Psychology & Marketing, 32(8), 860-873.
- Smeltzer, L. R. (1997). The Meaning and Origin of Trust in Buyer-Supplier Relationships. International Journal of Purchasing and Materials Management, 33, 40-48.
- Statista. (2023). Online travel market size worldwide 2020–2030.
- Svare, H., Gausdal, A. H., & Möllering, G. (2020). The function of ability, benevolence, and integrity-based trust in innovation networks. Industry and Innovation, 27(6), 585-604.
- Talwar, S., Dhir, A., Kaur, P., & Mäntymäki, M. (2020). Barriers toward purchasing from online travel agencies. International Journal of Hospitality Management, 89, 102593.
- Utomo, W. P., & Heriyanto, D. (2022). Indonesia Gen Z report 2022: Understanding and uncovering the behavior, challenges and opportunities. IDN Research Institute and Populix.
- Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425-478.
- Venkatesh, V., Thong, J. Y. L., & Xu, X. (2012). Consumer acceptance and use of information technology: Extending the unified theory of acceptance and use of technology. MIS Quarterly, 36(1), 157-178.
- Venkatesh, V., Thong, J. Y. L., & Xu, X. (2016). Unified theory of acceptance and use of technology: A synthesis and the road ahead. Journal of Association Information System, 17(5), 328-376.
- Wei, M. F., Luh, Y. H., Huang, Y. H., & Chang, Y. C. (2021). Young generation’s mobile payment adoption behavior: Analysis based on an extended UTAUT model. Journal of Theoretical and Applied Electronic Commerce Research, 16(4), 618-638.
- Williams, M. D., Rana, N. P., & Dwivedi, Y. K. (2015). The unified theory of acceptance and use of technology (UTAUT): A literature review. Journal of Enterprise Information Management, 28(3), 443-448.
- Zhang, M., Hassan, H., & Migin, M. W. (2023). Exploring the consumers’ purchase intention on online community group buying platform during pandemic. Sustainability, 15(3), 2433.