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Electronic Commerce Research and Applications 35 (2019) 100856

Contents lists available at ScienceDirect

Electronic Commerce Research and Applications


journal homepage: www.elsevier.com/locate/elerap

Hierarchical effects of website aesthetics on customers’ intention to book on T


hospitality sharing economy platforms

Xiaowei Xua, , Thomas Schrierb
a
School of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, China
b
Department of Apparel, Events, and Hospitality Management, Iowa State University, Ames, IA 50011, USA

A R T I C LE I N FO A B S T R A C T

Keywords: The essence of the shared accommodation industry is the easing of market entry with online platforms. Since
AIDA model website design is an important visual component of content strategy, this study aims to understand whether and
Perceived privacy risk to what extent website aesthetics influences booking intentions and how this process is influenced by customers’
Search intention information privacy concerns. The attention-interest-desire-action (AIDA) model is utilized for the theoretical
Sharing economy platform
underpinning of this paper, which describes the cognitive steps that customers undergo when booking an online
Website aesthetics
accommodation. This study analyzes a dataset of 325 hospitality sharing economy platform (HSEP) users via a two-
stage structural equation modeling process. The results indicate that the AIDA model is applicable as a guideline
for uncovering the mechanism through which website aesthetics influences customers’ intention to book through
an HSEP. Practitioners should prioritize website design aesthetics because it activates customers’ booking in-
tents. Potential customers who perceive higher privacy risk overcome their concerns about privacy information
via more search effort on HSEPs.

1. Introduction have emphasized website aesthetics as the starting point for website
evaluation.
A sharing economy platform is part of a peer-to-peer business al- Previous studies have utilized stimulus-organism-response (S-O-R)
lowing customers to share properties or resources through online theory (Mehrabian and Russell, 1974) to examine the impact of website
platforms (Hamari et al., 2015). Morgan Stanley Research estimated aesthetics or other website quality dimensions on customer purchase
that hospitality sharing economy platforms (HSEPs), such as Airbnb and intentions (Chang et al., 2014; Hsu et al., 2012; Kim and Lennon, 2013;
HomeAway, would account for approximately 20% of the global ac- Wang et al., 2011). However, this model restricted researchers to de-
commodations market by 2018 (Skift, 2017). Previous researchers have scribing how customers react to stimuli in an online environment using
agreed that trust is extremely important to the sharing economy mar- three stages. In fact, booking an accommodation online is a complex
ketplace (Zervas et al., 2017). Given that the HSEP is the primary in- process that involves personal trade-offs among amenities, locations
terface between travelers and hosts prior to arrival, the design of an and uncertainties (Mason and Roberts, 2004). Thus, the mechanisms
HSEP matters since it only takes individuals 50 ms to gain a first im- underlying the relationship between website aesthetics and booking
pression of a website page and 3.42 s to evaluate the credibility of the intentions merit a deeper exploration. Additionally, in contrast to
website content (Fogg et al., 2003; Lindgaard et al., 2006). booking through OTAs and hotel branded websites, the booking of
In addition, because customers have already become accustomed to accommodations on HSEPs usually requires additional steps, such as
booking accommodations through online travel agents (OTAs) and hotel- uploading a driver’s license and linking to social network accounts as
branded websites, the aesthetic design of HSEP websites is important parts of an ID verification process, and these requirements could raise
since it could induce customers to remain on websites for more in- customers’ information privacy concerns because they might fear that
formation instead of immediately clicking away. As a result, website their personal information could be disclosed by hosts. Although studies
aesthetics servs as an antecedent of subsequent judgments of websites. have demonstrated that perceived privacy risk has a negative impact on
However, based on Cheng’s (2016) systematic review of the sharing online customers’ behavioral intentions (Kim and Lennon, 2013; Liao
economy, few large-scale empirical studies have focused on the role of et al., 2011), how this negative impact could be attenuated in the
website aesthetics in the current HSEP literature. Moreover, few studies context of HSEPs remains unexplored.


Corresponding author.
E-mail addresses: xiaoweix@swufe.edu.cn (X. Xu), schriert@iastate.edu (T. Schrier).

https://doi.org/10.1016/j.elerap.2019.100856
Received 30 November 2018; Received in revised form 2 May 2019; Accepted 2 May 2019
Available online 03 May 2019
1567-4223/ © 2019 Elsevier B.V. All rights reserved.
X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

Based on the foregoing discussion, this study aims to answer the principles increase customers’ trust level (Hadiyati, 2016). Having a
following research questions. How and to what extent do website aes- website with high-quality aesthetics is the first step in gaining custo-
thetics affect booking intentions? What role does information privacy mers’ attention and building their initial trust in the HSEP: customers
play in this process? In order to answer these questions, this study uses are willing to spend substantial time on a website only if its design
the attention-interest-desire-action (AIDA) model (Strong, 1925) as its caught their eye.
theoretical underpinning, with website aesthetics regarded as an ex- Pradipta and Purwanto (2013) were among the first to use the AIDA
ternal stimulus. The AIDA model originated in conventional marketing model to investigate the impact of website design and structure on
and advertising, mapping out four stages that occur: from the product purchasing decisions. They proposed visual appeal, ease-of-use and
awareness stage to the purchase decision (Cramphorn, 2006; Lavidge interactivity, trustworthiness and convenience, and purchase decision
and Steiner, 1961; Rawal, 2013). It is intuitive that HSEP customers will to represent the parts of the AIDA model. Recently, using decision tree
undergo the steps defined by the AIDA model prior to booking an ac- methods, Sun et al. (2016) identified eight travel website evaluation
commodation. Marketing strategies that use AIDA principles increase attributes based on the AIDA model and found that information quality
customers’ trust level (Hadiyati, 2016), and having a website with high- was the most important attribute influencing customers’ decision-
quality aesthetics is the first step in gaining customers’ attention and making. Unlike previous studies that identify the variables that involve
building their initial trust in the HSEP. However, the principle of this in the decision-making process according to AIDA model separately,
model has not been fully employed to understand the design of websites this paper examines the impact of website aesthetics on booking in-
(Sun et al., 2016). The effectiveness of this model in predicting actual tention based on a four-stage linear sequential process of the AIDA
customer behavior, as well as the existence of an advertising hierarchy, model. Variables in each AIDA stage were identified by considering
has been challenged by earlier researchers (Bendixen, 1993; Vakratsas prior researchers’ concerns regarding the validity of the AIDA model.
and Ambler, 1999). However, Barry (2002) argued that, rather than
discarding the hierarchy-of-effects model, researchers should shift their 2.1.1. Attention and interest
focus from validating the model to more accurately measuring the Website aesthetics constitute the first step of the AIDA model for
complex process by which people process information and form atti- attracting customers’ attention. An unattractive website might cause
tudes. users to leave the site before completing their desired tasks, even if the
The purpose of the current study is threefold: (1) to test the ap- website offers special benefits, such as a lower rate (Wang et al., 2011).
plicability of the AIDA model in relation to the website design since it Based on the definition of website aesthetics provided by Wang et al.
was previously used in the traditional marketing context; (2) to uncover (2011) and the elements of website aesthetics provided by Park et al.
the mechanism underlying website aesthetics and booking intentions (2007), website aesthetics in this study refer to the extent to which the
according to the AIDA model; and (3) to examine the impact of per- proper use of color, fonts, and combinations of various attributes could
ceived privacy risk on the desire and action stages of the AIDA model. yield an impression of beauty, creating a first impression before cus-
Empirical findings from this study are expected to contribute to the tomers further interact with the website. Cunliffe (2000, p. 297) also
emerging literature related to HSEPs and to yield insights into the ap- stated that, “poor web design will result in a loss of 50 percent of po-
plicability of the hierarchy-of-effects model. For practitioners, this tential sales due to users being unable to find what they want, and a loss
study should provide information useful to predicting booking inten- of 40 percent of potential repeat visits due to the initial negative ex-
tions and help them to decide which aspects should be emphasized perience.”
when utilizing a website as a marketing strategy. The best way to keep a customer interested in browsing a website is
to effectively present the benefits and features of products and services
2. Theoretical background and research model (Hadiyati, 2016). According to Hartmans (2017), the total number of
listings on Airbnb is greater than that of the top five major hotel brands
2.1. AIDA model combined. In addition, because all of the accommodation information
on HSEPs is host-generated content, and the amenities and services
Since the late 1990s, the AIDA model has been widely used to provided on different listings vary across different hosts, customers
measure the effectiveness of advertising and to provide guidance on might be required to spend more effort and time to go through the
attracting customers. This model suggests that customers move through accommodation information before finding an accommodation that
four steps when they make purchase decisions, and advertisers could best suits their needs. A large amount of information must be filtered
convert shoppers into purchasers via the following sequences: (1) at- and searched for users to find exactly what they want. Cognitive
tract customers’ attention; (2) obtain interest of customers by helping overload, namely, the amount of mental processing power needed to
them realize the benefits of products or services; (3) create positive book with HSEPs, can cause customers to lose interest in exploring a
belief in customers; and (4) induce customers to perform a purchase. website (Wang et al., 2014). A website with easy navigation and easily
Like all other research models, this model has its limitations. digestible content can keep customers engaged by simplifying the
Weilbacher (2001) argued that the hierarchy model of advertising ef- process by which they find information and understand the presented
fects could be applied only to the field of advertising and not to other information. Therefore, perceived information quality and perceived
marketing communication components. The author further indicated ease of navigation have been proposed as elements that capture Interest
that such models fail to consider customers’ personal experience. This in the AIDA model.
argument is supported by Hall (2002) and Schultz (2002). However, Perceived ease of navigation is derived from Davis’ (1985) tech-
Barry (2002) later defended the hierarchy-of-effects model, suggesting nology acceptance model (TAM). In the 1990s, perceived ease of use was
that it is an appropriate framework for any form of marketing com- defined as the degree to which a person believes that using a technology
munication, as they all share a common goal of persuading customers to will be effortless. With the emergence of Internet-based technologies,
purchase. the concept of ease of use has shifted its focus from ease of reading and
The appropriateness of using the AIDA model in the context of study understanding information to ease of locating information. According
is twofold. First, HSEP serves as a powerful marketing communication to Loiacono et al. (2002), ease of use in the context of a website has two
channel, as it presents customers with each accommodation and host dimensions: ease of understanding and ease of navigation. This study
information by use of texts, icons, graphics, online messages, and a focuses on ease of navigation, which refers to the degree to which a
direct link to request a book or an instant book. Second, HSEP custo- person believes that it is easy to find relevant information on a website
mers will go through the steps defined by the AIDA model prior to (Park et al., 2007).
booking an accommodation. Marketing strategies that use AIDA One reason that customers leave a website is that the information

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X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

was not engaging or was unhelpful to them in achieving a purchase few studies in the HCI field have examined a possible causal relation-
goal. Perceived information quality is especially important in an online ship between these two variables (Hassenzahl and Monk, 2010; Lee and
context since it can reflect or seem to reflect the quality of products or Koubek, 2010), and no consensus has been reached regarding a causal
services (Wang and Strong, 1996). In this study, information quality direction (Tuch et al., 2012). These inconsistent findings suggest that
refers to the extent to which a website is a good source of information the causal relationship between aesthetics and usability might not be
and is helpful in providing a user with accurate and detailed informa- seen in a different domain. It is also noted that the aesthetic-usability
tion (Park et al., 2007; Wen, 2012). relationship has not been linked to behavioral constructs and lacks
application to users of e-commerce websites. To gain further support for
2.1.2. Desire and action a causal relationship between aesthetics and usability, the following is
Desire is the stage during which customers form a favorable attitude proposed.
toward a product or service (Wijaya, 2015). Since HSEPs are char-
acterized by intangible services and unfamiliar hosts, customers tend to • Hypothesis 1 (The Website Aesthetics and Navigation
rely on online review systems to create trust prior to booking an ac- Hypothesis): Perceived website aesthetics significantly influences per-
commodation (Ert et al., 2016). Hawlitschek et al. (2016) also indicated ceived ease of navigation.
that the basic steps for HSEP customers are “search,” “book,” and
“travel.” Therefore, performing an information search is an essential 2.3.2. Website aesthetics and information quality
process for customers who desire to book a specific accommodation. Few studies have examined the impact of perceived website aes-
The results of studies have suggested that customers’ online shopping thetics on information quality. The halo effect, a well-documented so-
behaviors consist of two stages: information searching and purchasing cial-psychology phenomenon, can be observed when individuals who
(Darden and Dorsch, 1990). This process was described by Foss and are physically attractive tend to be rated favorably on other attributes
Bower (1986) as a subgoal-goal hierarchical relationship. Search in- (Asch, 1946). By extension, it could be assumed that websites that are
tention in this study context refers to the extent to which an individual visually appealing could influence customers’ evaluations of other
would like to browse, differentiate, and monitor accommodation in- website attributes. Hence, the following is proposed.
formation (Tuu and Olsen, 2012).
Based on the theory of reasoned action (TRA) (Ajzen, 1991), purchase • Hypothesis 2 (The Website Aesthetics and Information Quality
intention can predict actual purchase behavior. In this study, booking Hypothesis): Perceived website aesthetics significantly influences per-
intention, as proposed in the action stage, refers to the probability that ceived information quality.
the customer will book accommodations on the website (Ponte et al.,
2015). 2.3.3. Perceived ease of navigation, perceived information quality and
search intention
2.2. Familiarity and perceived privacy risk Research has indicated that customers’ intentions to use websites
could be a direct outcome of experiencing website quality (Moon and
Weilbacher (2001) pointed out that the AIDA model ignored the Kim, 2001). In the fields of information systems and retail, both per-
impact of personal experience. To address this concern, perceived fa- ceived information quality and perceived ease of use have been found
miliarity was incorporated into the model. Familiarity was originally to influence technology adoption and online purchases (Belanche et al.,
defined as the amount of direct and indirect knowledge possessed by an 2012; Park and Stoel, 2005). With a particular focus on information
individual (Alba and Hutchinson, 1987), formed through cumulative search behavior, Tuu and Olsen (2012) found that website quality as a
prior interpersonal interaction experiences (Rindfleisch and Inman, whole significantly influenced Internet search behaviors. On this basis,
1998). Based on the definition provided by Casaló et al. (2008), fa- the following is proposed.
miliarity in this study refers to customers’ degree of knowledge about
the website interface and online shopping procedures. • Hypothesis 3 (The Information Quality and Search Intention
Ranzini et al. (2017) indicated that perceived privacy risk serves as Hypothesis): Perceived information quality significantly influences
a major obstacle to using sharing economy services. The reason might search intention.
be that booking accommodations on HSEPs involves the sharing of • Hypothesis 4 (The Navigation and Search Intention): Perceived
personal information because customers are required to verify their IDs, ease of navigation significantly influences search intention.
link their social network site (SNS) accounts, or even upload a personal
photograph to an HSEP account before they can make purchases 2.3.4. Search intention and booking intention
(Fagerstrøm et al., 2017). Based on the definition of perceived privacy The relationship between search intention and purchase intention
risk given in the context of SNS, in this study, the term refers to the was empirically tested by Shim et al. (2001), who showed that custo-
extent to which customers believe that booking on HSEPs has uncertain mers’ intentions to search for product attributes online were a de-
negative consequences related to privacy (Krasnova et al., 2010). Both terminant of customers’ purchase intentions. In the context of tourism,
HSEP customers and hosts tend to evaluate the trustworthiness of each travel information searching and product purchasing were two pre-trip
other from online exchanges or disclosures of information (Ranzini stages (Jun et al., 2007). Lee et al. (2007) examined travelers’ online
et al., 2017). It would be interesting to investigate how customers’ shopping behaviors and extended the theory of reasoned action by in-
perceived privacy risk could be offset in the process of booking ac- cluding both search intention and purchase intention. Although pre-
commodations on HSEPs. vious researchers have emphasized the importance of information
searching as a prerequisite for making travel decisions, the relationship
2.3. Hypotheses between search intention and purchase intention has not been well
studied, especially in the hospitality industry. Hence, the following is
2.3.1. Website aesthetics and perceived ease of navigation posited.
The correlation between aesthetics and usability has been ex-
tensively investigated in the field of Human-Computer Interaction • Hypothesis 5 (The Search Intention and Booking Intention
(HCI), in which usability has been assessed by task completion time or Hypothesis): Search intention significantly influences booking inten-
ease of use (Tractinsky et al., 2000; Hassenzahl, 2004). However, these tion.
investigations have been correlational in nature and yielded incon-
sistent findings (Hassenzahl, 2004; Van Schaik and Ling, 2009). Only a

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X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

2.3.5. Familiarity and behavioral intentions following hypothesis is offered.


Familiarity has been widely examined by marketing researchers
because of its impact on reducing customers’ uncertainty, forming trust • Hypothesis 10 (The Privacy Risk Effect on Search and Booking
perceptions, and making decisions (Bettman and Park, 1980; Intention Moderation Hypothesis): Perceived privacy risk moder-
Bhattacherjee, 2002; Gefen, 2000). With the growth of the Internet, ates the relationship between search intention and booking intention.
Marchionini and White (2007) proposed the concept of familiarity with
systems that help users to search comfortably, as well as familiarity 2.3.7. The mediating effects
with products. Since HSEPs are a relatively new way of booking ac- Since this study aims to uncover the cognitive process between
commodations, it is less easy for new users to make purchase decisions website aesthetics and booking intentions, the mediating roles of in-
using HSEPs. Conversely, experienced users might find the decision- formation quality, ease of navigation, and search intention were also
making process relatively simple since they are less likely to become examined. Thus, the following hypotheses are proposed.
confused or lost while exploring an HSEP (Chen et al., 2011). As a
consequence, the following is assumed. • Hypothesis 11 (The Website Aesthetics Effect on Search
Intentions Moderation Hypothesis): Website aesthetics indirectly
• Hypothesis 6 (The Familiarity and Search Intention influences search intentions via perceived information quality and per-
Hypothesis): Familiarity significantly influences search intention. ceived ease of navigation.
• Hypothesis 7 (The Familiarity and Booking Intention • Hypothesis 12 (The Website Aesthetics Effect on Purchase
Hypothesis): Familiarity significantly influences booking intention. Intentions Moderation Hypothesis): Website aesthetics indirectly
influences purchase intentions via perceived information quality, per-
2.3.6. The role of perceived privacy risk ceived ease of navigation, and search intentions.
Numerous studies have examined the role of perceived risk in a
retail environment (Chang and Tseng, 2013; Nepomuceno et al., 2014). 2.3.8. Control variables
Customers are often hesitant about making purchase decisions since Several control variables were included in the data analysis to en-
they are uncertain about whether the value of the products or services sure that the results are not due to covariance with other variables. The
meets their buying goals (Roselius, 1971), that is, customers undergo a literature suggests that sociodemographic factors, such as gender, age,
certain degree of perceived risk in most purchase decision-making income, and level of education, can affect behavioral intentions
processes (Cox and Rich, 1964). With the rapid growth of e-commerce, (Forsythe and Shi, 2003). Prior experience was not included as a control
perceived risk has become one of the barriers that prevent customers variable since familiarity was conceptualized as an interchangeable
from purchasing online (Forsythe and Shi, 2003). A number of re- term for user experience (Gefen, 2000). Additionally, since Airbnb is
searchers have indicated that customers search for more information the market leader in HSEPs (Oskam and Boswijk, 2016), and brand
when they have greater perceived risk of the travel products or services awareness has a significant impact on customer decision making
that they are considering in their decision-making processes (Fuchs and (Macdonald and Sharp, 2003), this study controlled for whether or not
Reichel, 2006; Gursoy and McCleary, 2004). In the context of HSEPs, customers used Airbnb to book accommodations.
the exchange of data occurs between customers and platforms, as well The proposed model is presented in Fig. 1.
as offline between customers and hosts; as a result, there is a need to
explore whether perceived privacy risk serves as a catalyst for or ob- 3. Methodology
stacle to customers performing searches online, Thus, the following is
proposed. 3.1. Data collection

• Hypothesis 8 (The Privacy Risk and Search Intention Data were collected from April 6, 2016, to May 23, 2016 via the
Hypothesis): Perceived privacy risk significantly influences search in- Amazon Mechanical Turk (MTurk) platform because of its large and
tention. scalable workforce, relatively low cost, high response speed, and re-
• Hypothesis 9 (The Privacy Risk and Booking Intention sponse accuracy (Buhrmester et al., 2011; Dedeke, 2016). Two
Hypothesis): Perceived privacy risk significantly influences booking screening questions were asked to ensure that the participants resided
intention. in the United States and had utilized a hospitality sharing economy
platform to book an overnight accommodation in the previous
Previous studies have examined the moderating effect of perceived 12 months. The participants were asked to identify the sharing
risk in the online context and found that perceived risk could attenuate economy platform that they had used to book an overnight accom-
the effects of perceived usefulness, perceived ease of use, and usability modation within the previous 12 months. Four hundred participants
on behavioral intentions (Belanche et al., 2012; Casidy and Wymer were requested from MTurk. $0.50 was paid to each participant who
2016). Belanche et al. (2012) suggested, as an explanation, that cus- completed the survey.
tomers who perceived a high level of risk would be more likely to at-
tempt to eliminate uncertainties while interacting with a website. 3.2. Survey instrument
In light of the perceived risk perspective introduced by Bauer
(1960), which assumes that customers will undertake action to reduce The questionnaire consisted of two sections. The first section in-
the risk to an acceptable level in a given situation, this study attempts to volved questions designed to measure seven constructs: (1) perceived
examine whether customers who have a high level of perceived risk will website aesthetics; (2) perceived ease of navigation; (3) perceived in-
be more likely to make purchases through a search process that helps formation quality; (4) search intention; (5) perceived privacy risk; (6)
them believe that a negative consequence is unlikely to occur. Thus, familiarity; and (7) booking intention. The second section included
this study posits that, in a perceived high-risk situation, customers will questions about demographic characteristics, along with one question
be more prone to search carefully for information about accommoda- that asked for the name of the HSEP most recently used by respondents
tions before they make actual purchases since they must interact with for booking overnight accommodations.
the website to overcome their fear of inappropriate disclosure of per- Perceived ease of navigation and perceived website aesthetics were
sonal information. In turn, when the perceived privacy risk is low, each measured using four items adapted from Park et al. (2007). Three
customers tend to feel less threatened by uncertain and ambiguous si- items were used to assess information quality, with two items from Wen
tuations and are less likely to search for perfect solutions. Thus, the (2012) and one item from Park et al. (2007). Three items measuring

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X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

Fig. 1. Research model showing the hypothetical relations between the studied variables.

perceived privacy risk and four items measuring booking intention were 4. Results
adopted from Ponte et al. (2015). To assess familiarity, four items were
adapted from Chiu et al. (2012). Finally, search intention was measured 4.1. Characteristics of respondents
by two items adapted from Gefen and Straub (2000) and one newly
added item. After 75 participants who failed to pass at least one of the three
For all of the measures, a five-point Likert scale was utilized, with attention check questions were eliminated, a total of 325 responses
answers ranging from 1 (strongly disagree) to 5 (strongly agree). were retained for further analysis, and no missing values were found. As
Additionally, three attention check questions were randomly dispersed shown in Table 1, the respondents who used HSEPs to book an over-
throughout the questionnaire to identify participants who were not night accommodation over the previous 12 months were predominately
playing attention to the survey content. Each attention check required female (63.4%). Approximately half of them were between 25 and
participants to provide a specific response. 34 years old. Regarding education level, 36.6% of the sample finished
high school, 45.8% acquired a university degree, and remainder ob-
tained an advanced degree. Nearly 74% of the respondents were Cau-
3.3. Data analysis method casian. In terms of income, 62.7% of the respondents had an annual
income of $40,000 or greater. The purpose of their most recent trip was
Descriptive statistics consisting of means, standard deviations, fre- leisure for 67.7% of the respondents, followed by visiting family or
quencies, percentages, and skewness were obtained by using SPSS friends (15.4%). Regarding respondents’ booking experiences, more
software, Version 23.0. After screening for missing data and checking than 70% of the respondents booked their most recent overnight ac-
for common method bias, non-response bias and normality, a two-step commodations on Airbnb.com, followed by VERO.com, HomeAway.
approach recommended by Anderson and Gerbing (1988) was used, com, and CouchSurfing.com.
using Mplus software, Version 7.0, to analyze the data. The first step
involved analysis of the measurement model to validate the factorial 4.2. Checking for non-response bias and common method bias
structure of the proposed model, while the second step tested for a
structural model for examining the causal relationships among the la- In order to test for non-response bias testing, early and late re-
tent variables. Both the measurements and the structural models were spondents were compared using the t-test (Armstrong and Overton,
assessed based on the following indices: the Chi-square (χ2) test, root 1977). The first 75% of returned surveys were compared with the last
mean square error of approximation (RMSEA), the non-normed fit indices 25% on demographics (gender, age, and education), as well as across 25
(NNFI), and the comparative fit index (CFI). Latent moderated structural key measurement items. No significant differences were found for any
equations (LMS) were used to estimate the moderating effect (Klein and of the 28 comparisons. An assessment for common method bias (CMB)
Moosbrugger, 2000). was conducted since this study used self-reported variables. Harman’s
single factor test was performed by running an exploratory factor
analysis using an unrotated solution with all of the variables (Podsakoff
et al., 2003). No single factor emerged, which indicated that CMB was

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X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

Table 1 recommended cutoff of 0.70 (Fornell and Larcker, 1981). The construct
Respondents’ demographic profiles. validity was determined through tests of convergent and discriminant
Demographic Characteristics n % validity. Convergent validity was supported by the finding that the
average variance extracted (AVE) values were greater than 0.50, while
Gender discriminant validity was present because all of the correlations be-
Female 206 63.4
tween each pair of latent constructs were less than the square root of
Male 119 36.6
the AVE for each construct (Fornell and Larcker, 1981) (see Table 3).
Age
18–24 73 22.5
25–34 169 52.0
4.4. Testing the structural model and the mediating effects
35–44 51 15.7
45–54 19 5.9 The goodness-of-fit indices for the hypothesized model without
55 and older 13 4.0 control variables (M0) indicated a reasonable fit to the sample data: S-
Highest Education Bχ2 (263, N = 325) = 459.060, p = .000, CFI = 0.950, NNFI = 0.943,
Some High school 0 0.0 RMSEA = 0.048 (90% CI: 0.041–0.055). Examination of the structural
High School Degree/G.E.D. 17 5.3
parameter estimates for the model indicated that all of the hypothesized
Associates Degree 32 9.9
Some College 69 21.4
causal relationships were supported (see Table 4). Five control vari-
Bachelor’s Degree 148 45.8 ables were then included in the model (M1), resulting in an acceptable
Graduate Degree 57 17.7 model fit: S-Bχ2 (378, N = 325) = 677.238, p = .000, CFI = 0.935,
Ethnicity NNFI = 0.927, RMSEA = 0.050 (90% CI: 0.043–0.055). The results of
Caucasian/White 240 73.8 the structural model remained the same. As illustrated in Table 4,
Asian 24 7.4 perceived aesthetics significantly influenced perceived ease of naviga-
African American/Black 31 9.5
tion (β = 0.71, p < .001) and information quality (β = 0.65,
Hispanic/Latino 22 6.8
Native American/Alaska Native 3 0.9 p < .001). It was revealed that perceived aesthetics accounted for
Other 5 1.5 50.8% and 42.0% of the variance in perceived ease of navigation and
Household Annual Income
information quality, respectively. Both perceived information quality
Less than $19,999 43 13.2 (β = 0.29, p < .001) and perceived ease of navigation (β = 0.20,
$20,000–$39,999 78 24.0 p < .001) had impacts on search intention, in turn leading to booking
$40,000–$59,999 68 20.9 intentions (β = 0.42, p < .001). Therefore, H1-H5 were all supported.
$60,000–$79,999 52 16.0
In addition, perceived privacy positively impacted search intention
$80,000–$99,999 33 10.1
More than $100,000 51 15.7 (β = 0.16, p < .01), while perceived privacy risk negatively influenced
booking intention (β = -0.21, p < .001). Finally, familiarity had a
Primary Purpose of Most Recent Trip
Pleasure 220 67.7 positive effect on both search intention (β = 0.29, p < .001) and
Visiting Family, Relatives, or Friends 50 15.4 booking intention (β = 0.35, p < .001). The explained variances for
Business 32 9.8 search intention and purchase intention were 34.6% and 52.4%, re-
Education 17 5.2 spectively. Hence, H6-H9 were all supported. None of the control
Health 1 0.3
variables (age, gender, income, education, and Airbnb users) had a
Religion 0 0.0
Other 5 1.5 significant effect on search intention (β = 0.03, −0.04, 0.00, 0.02,
−0.01, respectively) or booking intention (β = 0.01, 0.06, −0.06,
Most Recently Used HSEP
Airbnb.com 230 70.8 0.04, −0.03, respectively), indicating that the results were not due to
VBRO.com 28 8.6 covariation with these control variables.
HomeAway.com 26 1.8 One of this study’s purposes is to show how search intention-
CouchSurfing.com 17 5.2 booking intention relations differ according to risk perception. Using
Others 24 7.4
the XWITH command in Mplus, version 7.0, an interaction term was
created by multiplying the perceived privacy risk by search intention.
not present in this study. Since model fit indices have not been developed for the LMS method,
the log-likelihood ratio (LLR) test was used to determine whether the
structural model without the interaction term (M1) showed a significant
4.3. Testing the measurement model loss in fit relative to the structural model with the interaction term (M2)
(Klein and Moosbrugger, 2000). The test statistic for the LLR test is
The descriptive statistics for all of the measurement items are shown often denoted as D, which approximately follows a χ2 distribution. D
in Table 2. An inspection of skewness results indicated that the data was calculated using the formula provided by Maslowsky et al. (2015).
were mildly skewed since several indicators had skewness values ex- The results of the LRT test indicated that M2 was also a well-fitted
ceeding an absolute value of 1 (Hair et al., 1995). In order to deal with model (D = 8.63, Δdf = 1, p < .001). The interaction term was sig-
non-normality, Satorra-Bentler’s (S-Bχ2) scaled test statistics were ap- nificant in predicting booking intention (β = 0.18, p < .01).
plied in SEM to correct the standard errors for parameter estimates To determine the size of the interaction effect, R2 changes resulting
(Satorra and Bentler, 2010). Following this procedure, the internal from the interaction effects were examined by subtracting the R2 of
consistency of each measurement scale was checked by calculating Model 1 from the R2 of Model 2 (Maslowsky et al., 2015). The result
Cronbach’s alpha values. The Cronbach’s alpha scores ranged from 0.78 indicated that an additional 4.4% of variance in booking intention was
to 0.93, exceeding the commonly accepted benchmark of 0.70 explained by the interaction of search intention and perceived privacy
(Nunnally, 1978). risk. This moderating effect is shown in Fig. 2. This plot was obtained
The measurement model was validated by confirmatory factor from the Loop plots option in Mplus and created using R Studio. As
analysis (CFA). The results indicated an acceptable measurement model predicted, at high levels of perceived privacy risk (mean + standard
fit: S-Bχ2 (254, N = 325) = 370.523, p = .000, CFI = 0.971, deviation), booking intention (plotted using latent variable scores with
NNFI = 0.965, RMSEA = 0.038 (90% CI: 0.029–0.046). The internal a mean of zero and a standard deviation of one) increases rapidly when
validity of the items was assessed using composite reliability (CR). The search intention increases. However, at low levels of perceived privacy
CR values ranged from 0.78 to 0.93, which were greater the risk (mean – standard deviation), booking intention increases

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X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

Table 2
Descriptive statistics and reliability analysis of constructs and their measurements.
Variables α Mean S.D. Skewness

Perceived Website Aesthetics (PWA) 0.85


This website looks attractive 4.25 0.68 −0.77
This website looks organized 4.29 0.60 −0.48
This website uses colors properly 4.23 0.70 −0.62
This website uses fonts properly 4.21 0.68 −0.59

Perceived Ease of Navigation (PE) 0.83


I can go to exactly what I want quickly 3.99 0.84 −0.64
The search functions on this website is helpful 4.26 0.65 −0.45
This website has well-arranged categories 4.14 0.73 −0.60
This website does not waste my time 4.08 0.76 −0.43

Perceived Information Quality (PIQ) 0.78


This website provides accurate information about accommodation (e.g., room availability, room pictures) 4.18 0.66 −0.35
This website provides in-depth descriptions of accommodation and their services (e.g., room amenities, facility information, location, 4.16 0.68 −0.62
surrounding area information)
This website is a very good source of information 4.23 0.63 −0.29

Search Intention (SI) 0.84


I would use this website to inquire about accommodation ratings 4.34 0.71 −1.07
I would use this website to check accommodation reviews 4.36 0.71 −1.06
I would use this website to compare similar, competitive accommodations 4.30 0.81 −1.42

Perceived Privacy Risk (PPR) 0.88


I am concerned about the privacy of my personal information during a transaction 2.59 1.16 0.46
I am concerned that unauthorized persons have access to my personal information 2.52 1.13 0.58
I am concerned that this website will use my personal information for other purposes without my authorization 2.42 1.10 0.53

Familiarity (FAM) 0.91


I am familiar with this website 4.45 0.65 −1.12
I am familiar with searching for overnight accommodations on this website 4.48 0.62 −0.99
I am familiar with the purchasing process of this website 4.38 0.65 −0.85
I am familiar with inquiring about accommodation ratings at this website 4.29 0.77 −0.96

Booking Intention (PI) 0.93


The probability I would consider booking an accommodation from this website is high 4.50 0.65 −1.22
If I were to book an accommodation, I would consider booking it from this website 4.47 0.62 −0.99
The likelihood of my booking an accommodation from this website is high 4.37 0.70 −1.14
My willingness to book an accommodation from this website is high 4.38 0.70 −0.94

Table 3 between 0.25 and 0.42, and 0.07 and 0.21, respectively, which ex-
Composite reliability, AVE, correlations between constructs and square root of cluded zero and supported the proposed hypotheses H11 and H12. The
AVE. results of hypothesis testing are summarized in Table 4.
CR AVE PWA PE PIQ SI PPR FAM PI
5. Discussion and implications
PWA 0.92 0.73 0.85
PE 0.83 0.56 0.64 0.75
PIQ 0.78 0.54 0.56 0.37 0.73 Although the focus of this study, the impact of website quality on
SI 0.78 0.54 0.50 0.42 0.48 0.73 customers’ booking intentions on accommodation booking websites, is
PPR 0.89 0.72 −0.25 −0.37 −0.29 −0.05 0.85 not new to the e-commerce and hospitality literature, relevant studies
FAM 0.92 0.73 0.53 0.51 0.53 0.47 −0.27 0.85
PI 0.93 0.76 0.62 0.51 0.48 0.58 −0.32 0.60 0.87
in the context of sharing economy platform features with consumer-to-
consumer (C2C) business models have been rare. This study shows four
Note: Correlations and square roots of AVE (in bold) shown on lower left and sequential stages from website aesthetics to booking intentions, invol-
diagonal, respectively; CR = composite reliability; AVE = averaged variance ving perceived ease of navigation, perceived information quality and
extracted. search intention.

marginally as search intention increases. Therefore, H10 was sup-


5.1. The role of website aesthetics
ported: perceived privacy risk positively moderates the relationship
between search intention and booking intention. Fig. 3 shows the result
The results confirm that a causal relationship exists between website
of structural model (M2) analysis with standardized regression coeffi-
aesthetics and ease of navigation, consistent with the findings of
cients.
Tractinsky (2004) but differing from those of Tuch et al. (2012), who
found no relationship between the two variables. The results also
4.5. Tests for indirect effect complement previous findings revealing the website aesthetic-usability
relationship (Tractinsky et al., 2000) by shedding light on the sig-
In terms of mediating effects, website aesthetics indirectly influ- nificant impact of website aesthetics on perceived information quality.
ences search intentions (β = 0.33, p < .001) and purchase intentions The results indicate that website aesthetics affect perceived information
(β = 0.14, p < .001), thus lending support to H11 and H12. The quality and perceived ease of navigation, implying that aesthetic ele-
mediating effect of search intention was verified using a bootstrapping ments could mitigate the effect of cognitive load. This result provides
method (with N = 5000 bootstrap resamples) outlined by Preacher and more specific evidence for the idea that “what is beautiful is usable” by
Hayes (2008). The 95% confidence intervals for the indirect effect of suggesting that “what is beautiful contains better information.”
website aesthetics on search intention and booking intention were This study also confirmed that website aesthetics could produce a

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X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

Table 4
Results of hypothesis testing.
M0 M1 M2 Test Result
Add Control Variables Add Interaction Term

Direct Effects
H1 Perceived Website Aesthetics → Perceived Ease-of-Navigation 0.71*** 0.71*** 0.71*** Supported
H2 Perceived Website Aesthetics → Perceived Information quality 0.65*** 0.65*** 0.65*** Supported
H3 Perceived Ease-of-Navigation → Search Intention 0.18** 0.20*** 0.18* Supported
H4 Perceived Information Quality → Search Intention 0.30*** 0.29*** 0.31*** Supported
H5 Search Intention → Booking Intention 0.42*** 0.42*** 0.46*** Supported
H6 Familiarity → Search Intention 0.29*** 0.29*** 0.30*** Supported
H7 Familiarity → Booking Intention 0.36*** 0.35*** 0.30*** Supported
H8 Perceived privacy risk → Search Intention 0.17** 0.16** 0.18**
H9 Perceived privacy risk → Booking Intention −0.21*** −0.21*** −0.25*** Supported

Moderating Effect
H10 Perceived privacy risk × Search Intention → Booking Intention 0.18** Supported

Total Indirect Effects


H11 Website aesthetics → Search Intention 0.32*** [0.19 ∼ 0.47] 0.33*** [0.20 ∼ 0.48] Supported
H12 Website aesthetics → Booking Intention 0.14*** [0.01 ∼ 0.27] 0.14*** [0.01 ∼ 0.27] Supported

Note: CI = Confidence interval; *p < .05; **


p < .01; ***
p < .001.

and perceived ease of navigation were effective in determining custo-


mers’ intentions to use a website for information seeking, supporting
previous findings suggesting that the experience of using a website
during the information-search phase was influenced by both informa-
tion quality and system quality factors (Jarvenpaa and Todd, 1996).
This outcome indicates that both extensive information and well-de-
signed navigation are vital for attracting customers.

5.3. The search intention-booking intention relationship

Another key finding of this study is that search intentions lead to


booking intentions, indicating that intention to search could increase
the probability of purchase intent. This finding extends Shim et al.
(2001), whose study was performed in the context of searching for
goods to the context of searching for overnight accommodations. This is
consistent with the previous premise that travel information searches
and product purchases during the pre-trip stage are closely related (Jun
et al., 2007), perhaps for two main reasons.
First, in contrast to OTAs and hotel branded websites that offer
several rooms to travelers, HSEPs provide a market in which hosts
generally offer a single accommodation. If customers start performing
Fig. 2. The moderating effect of perceived privacy risk. Note. The dotted lines searches for a specific accommodation, the likelihood of booking is
show 95% confidence bands. greater because of product scarcity. Second, the products (single ac-
commodations) on HSEPs differ from traditional hotel accommodations
better online experience by enhancing customers’ perceived ease of in that a hotel’s room inventory could be distributed across different
navigation and perceived information quality. When the external in- channels (e.g., OTAs, hotel branded websites, direct sales, etc.).
formation source (website aesthetics) effects and internal information Additionally, since traditional hotels are able to list their available ac-
source (perceived privacy risk and familiarity) effects on two types of commodations on multiple channels, the number of bookings made
behavioral intentions are compared, website aesthetics is found to have through their own websites actually increases, a phenomenon referred
a greater indirect effect on search intention (β = 0.33, p < .001), to as the billboard effect (Anderson, 2009). Since the accommodations
whereas familiarity has a greater effect on purchase intention on HSEPs are usually listed only on the HSEP, the billboard effect does
(β = 0.35, p < .001). These findings could be explained by the ela- not exist for HSEPs. As such, the HSEPs tend to have high booking
boration likelihood model (ELM), which suggests two routes to persua- conversion rates.
sion: central and peripheral (Petty and Cacioppo, 1983). HSEP custo-
mers might tend to rely on website aesthetics when performing online 5.4. The role of perceived privacy risk and familiarity
searches as a process of seeking peripheral information. In contrast,
when making booking decisions, HSEP customers might tend to follow When the impact of familiarity on two behavioral intentions was
a central cognitive process by integrating their existing knowledge to examined, the relationship was the same as that reported by Shim et al.
make reasoned decisions. (2001), implying that familiarity can act as a subjective mechanism that
facilitates both search and purchase behaviors.
In the case of perceived privacy risk, its positive impact on search
5.2. Impact of perceived information quality and perceived ease of intention contrasts with previous findings, which suggested that per-
navigation on search intention ceived privacy risk negatively influences use intention. The privacy
paradox (Barnes, 2006) phenomenon, which surfaced in earlier re-
The results of this study indicate that perceived information quality search on social networking sites (SNS), could be a reason why

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X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

Fig. 3. A structural model (M2) with standardized regression coefficients.

customers often continue to use services or products although they are ease of navigation and search intention on the relationship between
worried about their personal information being collected as a result of website aesthetics and booking intention. By examining the aesthetics-
their use of an online service. Since the booking processes on HSEPs usability effect during the stages of attention and interest, this study
involve posting public profiles and linking social media accounts to also contributes to the literature on information systems by showing
build trust (Edelman and Luca, 2014), customers’ need to socialize with causal effects from website aesthetics to perceived information quality
others through social media information exchange apparently out- and perceived ease of navigation. This result is in line with the argu-
weighs their desire to protect their personal information, while the ment by Hassenzahl and Monk (2010) that website aesthetics serves as
negative impact of perceived risk on purchase intention is consistent starting point for judging other attributes of products or services. It is
with prior research (Forsythe and Shi, 2003). Gutiérrez et al. (2010) also suggested that causal relationships might exist among website
indicated that customers’ perceived privacy risk tends to be lower quality dimensions identified by prior researchers (Bai et al., 2008;
during the alternative evaluation process and higher in the purchase Loiacono et al., 2002). The search-booking intention relationship in-
process, which could explain the opposite effects of perceived risk on dicates that other types of behavioral intentions might occur in se-
search intention and booking intention. quence as well. In addition, this study advances the idea that perceived
Additionally, this study demonstrated that perceived privacy risk privacy risk might not be the main barrier to the use of HSEPs since it
and search intention can interact to produce an additional influence on positively moderates the relationship between search intention and
purchase intention in the HSEP setting. This result is consistent with booking intention. This study adds to the e-commerce literature by
risk theory, indicating that, as privacy risk perception increases, cus- empirically examining the boundary conditions for the relationship
tomers tend to be more engaged in information searches in the purchase between search intention and booking intention.
situation because their need for privacy reassurance tends to be rela- Several managerial implications stem from the results, which sug-
tively greater (Mitra et al., 1999). gest that HSEP marketers and designers could use the AIDA model as a
guideline to attract website users’ attention and eventually convert
them into long-term clients. This study emphasizes website aesthetics
5.5. Theoretical and practical implications
and the power of visual stimulation. It suggests that HSEP practitioners
should prioritize the visual appearance of websites to gain customers’
From the theoretical perspective, this study makes three main
attention and build their trust. The goal of the second step is to increase
contributions. First, it contributes to the HSEP literature by focusing on
customers’ interest and generate customer engagement with the web-
website design, which is regarded as a relatively small theme in the
site; having reliable navigation features and higher-quality content
current sharing economy academic literature (Cheng, 2016). Second, it
could prevent customers from quickly abandoning the page. In the last
successfully extends the applicability of the AIDA model to an online
two stages, pre-purchase online information searching via review sys-
HSEP context and provides evidence to support the viewpoint of Barry
tems becomes an integral part of a customer’s decision-making process.
(2002) that the AIDA model could be implemented as a guideline for
Hosts should encourage customers to post online reviews, and the
understanding and refining the sequential stages that a customer un-
HSEPs should encourage customers to rate their hosts by sending re-
dergoes during the purchase process for a product or service. The sig-
minder emails after checkout. It is also suggested that HSEP practi-
nificant impact of familiarity in the last two stages suggests that further
tioners add some signals of trustworthiness (e.g., credit score ranges,
application of the AIDA model should control for personal experience,
digital badges) for hosts since customers are more willing to disclose
as pointed out by Weilbacher (2001).
their private information to obtain a service if they feel the host has the
The proposed hierarchy of effects model opens the black box of the
ability to protect their data. It is suggested that HSEPs first survey users’
website aesthetics-booking intention relationship by verifying the ex-
risk perceptions with regard to disclosing personal information on
istence of mediating effects of perceived information quality, perceived

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X. Xu and T. Schrier Electronic Commerce Research and Applications 35 (2019) 100856

social media accounts to accommodation hosts; for those who exhibit a interactivity, personalization) to better understand how desire is cre-
higher level of perceived privacy risk, HSEPs should perhaps avoid ated in customers’ minds.
asking customers to connect their social networking accounts to the Finally, it would be interesting to examine more moderating vari-
HSEP for additional verification, while hosts could emphasize how ables (e.g., cancellation policy, trust propensity, task-oriented vs. task-
much they value and how they protect the privacy of customers’ per- free customers) between search intentions and purchase intentions to
sonal data. better understand how within-site search activities increase purchases.
Presenting a privacy policy, such as “We respect your privacy, and
we will never share your personal information with third-parties” could Acknowledgments
lessen customers’ perceived privacy risks (Liao et al., 2011). However,
there is no need for HSEP practitioners who worry extensively about This research was funded by the Fundamental Research Funds for
customers with unusually high perceptions in the desire stage since the Central Universities (Grant No. JBK 1801039).
such customers would perform a risk-benefit analysis (Culnan and Bies,
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