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European Journal of Marketing

The impact of representation media on customer engagement in tourism


marketing among millennials
Kim Willems, Malaika Brengman, Helena Van Kerrebroeck,
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Kim Willems, Malaika Brengman, Helena Van Kerrebroeck, (2019) "The impact of representation
media on customer engagement in tourism marketing among millennials", European Journal of
Marketing, https://doi.org/10.1108/EJM-10-2017-0793
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Impact of
The impact of representation representation
media on customer engagement media

in tourism marketing
among millennials
Kim Willems Received 31 October 2017
Revised 8 August 2018
Faculty of Social Sciences and Solvay Business School, Department of Business, 15 November 2018
Vrije Universiteit Brussel, Brussels, Belgium and Faculty of Business Economics, Accepted 16 January 2019

Department of Marketing and Strategy, Hasselt University, Diepenbeek, Belgium, and


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Malaika Brengman and Helena Van Kerrebroeck


Faculty of Social Sciences and Solvay Business School, Department of Business,
Vrije Universiteit Brussel, Brussels, Belgium

Abstract
Purpose – As online travel marketing is evermore gaining importance, in particular regarding the pre-
purchase presentation of travel destinations, it is imperative to examine how various media can engage
consumers. The purpose of this paper is to identify how three prominent virtual representation media in tourism
marketing differ regarding their potential in engaging customers. In particular, the authors examine whether
they differ in the levels of interactivity, vividness and telepresence they elicit; and the impact of these dimensions
on flow, enjoyment and online purchase intentions. The authors hereby focus specifically on millennials, who
represent an important target market for the travel industry and are hard to reach via traditional media.
Design/methodology/approach – This study presents a between-subjects experimental design
comparing three virtual representation media portraying New York City, namely, photographs, 360° video
and virtual reality (VR). The findings are analysed with ANCOVA analysis and PLS path modelling.
Findings – The findings reveal that various media indeed generate different levels of customer engagement.
In particular, VR scores the highest on all dimensions, with interactivity having the largest effect on
consumers’ perception of telepresence. Such higher levels of telepresence in turn positively affect purchase
intentions via mediation through flow and enjoyment.
Research limitations/implications – Future research should examine whether these findings are
impacted by moderators, like consumer characteristics (e.g. socio-demographics, personality traits) and
destination types.
Practical implications – This study provides guidelines for tourism providers seeking to promote their
sites in innovative and effective ways, in the anticipatory stage of the customer journey.
Originality/value – This study identifies interactivity as the most important driver for consumers’
perception of telepresence in the context of pre-travel tourism information. Moreover, the findings also reveal
the mechanisms behind enhanced customer engagement via various media.
Keywords Telepresence, Virtual reality, Flow, Customer engagement, Enjoyment,
Online travel purchase
Paper type Research paper

1. Introduction European Journal of Marketing


The tourism sector is one where the experience is truly important (Williams, 2006). Due to © Emerald Publishing Limited
0309-0566
this experiential nature, consumers not only wish to gather information on the physical DOI 10.1108/EJM-10-2017-0793
EJM destination characteristics and inspiration for their next travels but also wish to get a
preview of the look and feel of the destination (Cho et al., 2002) and as such engage more
strongly with a particular destination. The inability to discover the “experience attributes”
(Nelson, 1970) of travel due to the intangibility of tourism as a service makes evaluation of a
destination before consumption without an actual visit rather difficult (Gartner, 1994;
Ye et al., 2011). Moreover, it is important to generate strong customer engagement (i.e. the
psychological state of the consumer as a result of interacting with a service; Brodie et al.,
2011), as customer engagement (CE) is key to creating a good customer experience.
Consequently, consumers may experience uncertainties regarding their travel purchase
decisions and seek as much information as possible about the destination to reduce their
perceived risk (Cho et al., 2002).
Before online travel shopping became available, consumers resorted to travel agencies,
brochures or travel suppliers that were contacted by phone or fax (Amaro and Duarte, 2015),
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but nowadays, consumers primarily resort to the internet for travel information (Guttentag,
2010). The internet provides consumers with written and visual information, such as
pictures and at times even a 360° picture. However, given the development of technology, for
instance, augmented and virtual reality (VR), there is a call for the provision and
examination of technologies that can add value for consumers by offering more dynamic,
interactive and entertaining interfaces (García-Crespo et al., 2009; Kounavis et al., 2012) that
are moreover more suited to aid consumers in the organization of their holidays by
supplying them with vivid information (Pantano and Servidio, 2011) and enhancing their
level of engagement (Wei et al., 2013). Recent studies have, for instance, described possible
applications of augmented reality (AR) for the tourism sector (e.g. personalized content and
the adding of layers to reality by providing images or information to historical artefacts or
buildings; Kounavis et al., 2012), Huang et al. (2016) studied the technology acceptance of a
virtual worlds (VW) representation of a travel destination and Yeh et al. (2017) examined
emotional consumer responses as a result of a photographic versus a three-dimensional
destination representation. While such VR-related representations (i.e. AR, VW, 3D
photographic media) can be classified as virtual environments, the full potential of the
newest generation VR representations in a strict sense is still to be uncovered.
Various scholars have acknowledged the potential and power of VR particularly as a
marketing tool (Van Kerrebroeck et al., 2017; Guttentag, 2010; Pantano and Servidio, 2011).
VR can offer more compelling experiences of tourism destinations and has the potential to
elicit perceptions of telepresence. The feeling of “being there” (Steuer, 1992) can allow
consumers to “try before they buy”. Previous research has found that particularly vividness
and interactivity of the representation medium are essential drivers in creating such
compelling experiences for consumers. Depending on the medium, levels of vividness and
interactivity can differ (Klein, 2003).
VR technology also offers considerable advantages for the travel sector, as it allows
consumers to experience and engage with the destination (Hyun and O’Keefe, 2012), thus
influencing the destination image in tourists’ minds and captivating their interest (Pantano
and Servidio, 2011). Some travel agencies and hotels have embraced VR as a potential path
to provide innovative experiences to consumers. For instance, Marriott International,
Thomas Cook and Neckermann are using VR to showcase destinations and hotels by
allowing consumers to virtually visit them, thus decreasing the level of uncertainty
regarding booking decisions (Jung et al., 2016; Mandelbaum, 2015). The present study
focuses on the role of destination representation media in creating an engaging experience
and persuading consumers to book a trip online. The focus will in particular be on
Millennials, as they travel a lot and represent an important target market for the travel
sector which is hard to be reached via traditional media (Li et al., 2013). Moreover, these Impact of
“travellers of the future” tend to be most “online” and least technology-averse, and as such representation
most prone to use technologies like VR.
This paper is structured as follows: first, we provide information on the concept of VR
media
and particularly distinguish between various types of virtual environments that are used in
tourism marketing. Next, we describe the relevance of VR for travel specifically, and further
detail our research objectives and hypotheses. Our method is described, and our results are
presented, followed by a discussion, limitations of the study, suggestions for further
research and the implications of the research findings.

2. Theoretical background
2.1 Virtual reality in travel
Virtual environments have been employed in the travel sector as they offer considerable
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advantages to the customers. A virtual tour of a specific destination can offer a pre-trial
opportunity to consumers, making them more confident regarding their decision (Biocca,
1997) as they receive information regarding the spatial, factual and experiential aspects of a
potential destination (Cho et al., 2002; Berger et al., 2007).
As such, consumers who are more informed about a destination due to a virtual visit that
allows them to explore the place in depth are more likely to have an increased desire to
actually visit it and are less likely to be unsatisfied by their vacation choice (Cheong, 1995).
Consequently, the travel industry has increasingly presented consumers with virtual
scenarios where tourists are, for instance, represented by avatars who can explore a 3D
representation of the destination through their computer-mediated interface (Pantano and
Servidio, 2011). Furthermore, research has found evidence for the beneficial effect of virtual
environments in travel marketing specifically on attitudes, brand image and purchase
intentions when comparing a virtual experience with a paper travel brochure (Wan et al.,
2007), but also regarding AIDA (awareness, interest, desire action) responses as mediated by
arousal (Yeh et al., 2017). As such, VR provides a multitude of benefits in tourism contexts,
for both customers and businesses or destinations (Tussyadiah et al., 2018 for a recent
overview).
With regards to the travel sector and VR, concerns have been raised in the past, as some
claimed that the technology could replace actual tourism. However, researchers are not in
agreement regarding this issue, as VR can indeed replace significant parts of the experience,
but to date cannot recreate the social and cultural experience one has when actually visiting
a destination (Cheong, 1995). Moreover, it was noted by Paquet and Viktor (2005, p. 1) that
“Most people want to see reality and not only virtuality”. In fact, researchers believe that VR
may even increase the demand to actually go visit a real destination and increase tourism
demand (Refsland et al., 2000).

2.2 Virtual reality definition


VR is a computer-based technology that enables the simulation of a real environment where
users can perceive the feeling of presence (Serrano et al., 2016). Steuer (1992, pp. 76-77)
defines VR as “a simulated environment in which a perceiver experiences telepresence”. The
more vivid and interactive the medium, the more a user is likely to experience a feeling of
telepresence in the depicted location (Steuer, 1992). Interactivity is “the extent to which users
can participate in modifying form and content of a mediated environment in real time”
(Steuer, 1992, p. 84) and vividness refers to “the representational richness of a mediated
environment” (Steuer, 1992, p. 81).
EJM 2.3 Types of virtual environments
In the literature, the concept of VR is used in various contexts. Authors in general refer to a
virtual environment (VE), which can take several forms. “Virtual environment” is a term
that is used to denote a number of virtual representations that can include stitched 360°
pictures that provide a panoramic view of a destination (Yeh et al., 2017), interactive 360°
video that allows users to navigate through the video by choosing which angles they wish to
view, web-based virtual tours (Cho et al., 2002), virtual world environments (e.g. Second Life;
Huang et al., 2016), or the newest generation of mass market VR with a headset
(smartphone-enabled or fixed headsets such as Oculus Rift). The latter evolved from a
device for applications in gaming, healthcare and education to a rising medium in tourism
and hospitality marketing as well. The availability of low cost VR viewers like Google
Cardboard and the abundance of tourism-related VR content make the experience of virtual
tours of cities, musea or tourism destination more accessible to the mass of consumers
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(Tussyadiah et al., 2018). Thus, it is important to note that not all virtual representations that
are examined in academic empirical research involve “VR” in a stricter sense of the
definition. For instance, studies may refer to virtual tours or VR when using panoramic or
stitched photographs in which navigation is not possible (Yeh et al., 2017), although this is
not genuine VR (Guttentag, 2010).
VR systems with a mobile, or untethered head-mounted device (HMD), as compared to
those using desktop displays, result in more natural interaction and superior space
orientation (Ruddle et al., 1999), but also provide kinaesthetic (Slater and Usoh, 1993) and
sensory input regarding depth perceptions due to the visual input to each eye separately
(Vince, 2004). Due to the sensorially rich character of VR, which distinguishes it further from
other virtual environments, users can experience sensory and motor input (e.g. walking,
moving the head around to change perspective, [. . .]) which provides more compelling
imagery of tourism destinations and vivid mental representations of the computer-mediated
environments (Tussyadiah et al., 2017, 2018). Thus, VR has a higher potential for
telepresence (Cho et al., 2002) due to which a more realistic representation of the
environment can be perceived by the user (Tussyadiah et al., 2017, 2018).
Web-based virtual environments such as a series of “stitched” pictures or a video provide
a relatively lower potential for “telepresence” (Cho et al., 2002). The higher the levels of
vividness and interactivity of the medium, the more the user evolves from being a “watcher”
to being a “player” (Cho et al., 2002). When for example viewing a movie, the user is an
observer. VR technology, however, allows one to be inside the experience and be a
participant that has a direct relationship with the surroundings (Williams and Hobson,
1995). The advantage of a virtual environment in which users are “players” who can
experience their virtual destination in their own way, is that they can identify and examine
exactly those aspects of their surroundings that they personally find important (Cho et al.,
2002). As such, consumers are no longer passive receptors of information but become co-
creators of value for themselves (Bendapudi and Leone, 2003). Interaction is also
quintessential in CE strategies (Brodie et al., 2011).
Distinguishing between the various types of virtual representations can generally be
done by considering the level of perceived immersion users experience. The concept of
telepresence, or presence, is strongly related to the concept of “immersion” (Mikropoulos,
2006), which implies both a sense of physical immersion in a virtual location as well as a
psychological presence (Guttentag, 2010). According to Williams and Hobson (1995, p. 424):
[. . .] immersion is the degree of suspension of disbelief by the VR participant and is created
through a field of view, panorama surrounding the participant, viewer-centred perspective (where
images react to the head and body movements), and a body or physical representation of objects.
Related to immersion, users can also experience “flow”, which is also often considered as a Impact of
concept strongly associated with telepresence as they both relate to the level of involvement representation
in the activity (Cho et al., 2002; Nah et al., 2011). Flow in online experiences was initially
defined by Hoffman and Novak (1996, p. 57) as “the state occurring during network
media
navigation” in which one concentrates on the virtual activity to such an extent that one is no
longer aware of external stimuli and the passage of time (Cho et al., 2002), which has been
found to impact consumer behavioural outcomes, such as attitudes, enjoyment, brand
equity, consumer learning, purchase intentions and repatronage intentions (Nah et al., 2011).
It is a state of optimal experience characterized by focussed attention and effortless
concentration (Csikszentmihalyi, 1990). According to Novak et al. (2000, p. 22), flow is a
“cognitive state experienced during navigation that is determined by high levels of skill and
control, high levels of challenge, focussed attention and is enhanced by interactivity and
telepresence”. While flow is considered a potential antecedent of CE, involvement is a
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required antecedent of CE (Brodie et al., 2011).


Involvement can be defined as the perceived relevance of the object based on inherent
needs, values, and interests” (Zaichkowsky, 1985, p. 342). Almost two decades ago, Havitz
and Dimanche (1999) already summarized the vast empirical support in the leisure
marketing literature, for the role of involvement in driving frequency with which consumers
participate, travel or purchase. More recently, empirical studies by Harrigan et al. (2017,
2018) have demonstrated the role of involvement particularly as an antecedent of CE with
tourism social media brands. More specifically, in line with social exchange theory (Thibaut
and Kelley, 1959), they found that highly involved consumers are more likely to invest
thoughts, emotions and behaviours into their preferred brands. This conclusion is in
agreement with earlier findings that greater consumers’ involvement with an advertisement,
the more attention they pay to the advertisement (MacKenzie et al., 1986).
Attention also plays a key role in the flow model, albeit to a different extent. According to
Csikszentmihalyi (1990), to enter and stay in a flow state, attention becomes completely
absorbed into the stimulus field defined by the activity. As such, the concept of flow closely
relates to the cognitive absorption dimension of CE (Patterson et al., 2006), as distinguished
by, for example, So et al. (2014) and Dwivedi (2015) who define absorption as a pleasant state
wherein the customer is fully concentrated and deeply engrossed in brand interactions. A
key characteristic of the flow model moreover is its interactionist nature, focussing rather on
the dynamic person-environment interactions than on the person, abstracted from context
(e.g. traits, stable dispositions). In CE, involvement is a necessary precursor while flow can –
potentially – be a predictor of CE, but not necessarily. Think for example about writing a
hotel review, as an example of a behavioural manifestation of CE. Involvement is required to
take the effort and engage in a tourist site sharing one’s experience on the World Wide Web,
while a state of flow is not necessarily applicable in doing so.
Note that the concept of CE extends beyond the cognitive component of involvement, in
that it also implies a proactive, interactive customer relationship with a specific engagement
object, and “unlike involvement, [it] requires the satisfying of experiential value, as well as
instrumental value” (Mollen and Wilson, 2010, p. 5). Interaction is therefore fundamental to
CE and one of the core dimensions in, for example, So et al.’s (2014) conceptualization of CE,
referring to both interactions between customers and the focal engagement object as well as
interactions with other customers. The present study focuses on interactions of customers
and destinations represented via diverse media and how the interactivity of these media
(among others) drive user experiences and responses toward the medium and the depicted
destination. Interactivity corresponds to the notion of facilitating two-way communication
necessary to have interaction between the focal engagement subject and object (Patterson
EJM et al., 2006) and characterized by the participant’s sense of control in modifying the form and
content of the mediated environment in real-time (Wu, 2006; Mollen and Wilson, 2010;
Steuer, 1992).

2.4 Customer engagement in tourism and hospitality


Since its first conception about a decade ago, CE has steadily evolved into becoming a
cornerstone concept in marketing. Drawing on relationship marketing theory and service-
dominant (SD) logic, Brodie et al. (2011, p. 260) define CE as ‘a psychological state that
occurs by virtue of interactive, cocreative customer experiences with a focal agent/object
(e.g. a brand) in focal service relationships. Most conceptualizations in the academic and
business practice literature define CE as a multi-dimensional phenomenon, consisting of a
combination of cognitive aspects (e.g. being interested in a company’s activities), emotional
aspects (e.g. feeling positive about a company’s activities) and/or behavioural aspects
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(e.g. intentions to purchase) (Brodie et al., 2011; Dijkmans et al., 2015). CE as such goes
beyond pure transactions, and incorporates both psychological and behavioural dimensions
(Patterson et al., 2006; Brodie et al., 2011; Vivek et al., 2012; So et al., 2014). According to the
Marketing Science Institute (MSI, 2010), firms increasingly consider nontransactional
activities as a route for creating, building and enhancing customer–firm relationships.
Engaged customers play a vital role in viral marketing activity (Brodie et al., 2011), new
product/service development (Hoyer et al., 2010) and in cocreating experience and value
(Brakus et al., 2009). CE behaviours as such go beyond transactions, but still represent a
strategic imperative for enhancing corporate performance, as reflected in parameters such
as sales growth (Neff, 2007), superior competitive advantage (Sedley, 2008), profitability
(Voyles, 2007), and consumer-related (relational) outcomes such as purchase decisions
(Patterson et al., 2006), company reputation (Dijkmans et al., 2015), brand loyalty (Bowden,
2009; van Doorn et al., 2010; Hollebeek, 2011; So et al., 2016), commitment, trust and
consumers’ emotional brand attachment (Brodie et al., 2013; So et al., 2016) and self-brand
connection (Moliner et al., 2018).
Within interactive, dynamic business environments, and particularly in highly
competitive markets, like the tourism and travel industry (So et al., 2016), CE can act as a
counterweight to competition on price only and help in attracting and retaining customers
(Bowden, 2009; Dijkmans et al., 2015). In tourism and hospitality, both scholars and
practitioners, have therefore started to examine CE strategies for managing customer–brand
relationships (So et al., 2016; Romero, 2017). An important evolution driving this stream of
research is the fact that the internet ever more serves as a platform for customer(-firm)
interactions, leading to a range of new media channels that enable tourism and hospitality
firms to connect with customers beyond the service encounter (So et al., 2014). Destination
marketing organizations (DMOs) nowadays have to manage user-generated content
(reviews, referrals etc.; cf. e.g. Wei et al., 2013) and connect with (potential) customers
whenever and wherever they like, via mobile, online and social media as engagement
channels (So et al., 2016).
Most empirical research on CE in tourism so far focussed on analysing online brand
engagement behaviours on social media like Facebook and Twitter, and their effect on
strategically relevant outcome variables. Dijkmans et al. (2015) for example demonstrated a
positive effect of consumers’ engagement level (i.e. passive or active engagement with an
airline brand on Facebook) and perception of the airline’s corporate reputation.
Cabiddu et al. (2014) applied an inducive multiple-case study approach to identify three
social media affordances (i.e. “opportunities for action”; Gibson, 1979) that can be leveraged
by tourism service providers to engage customers. Harrigan et al. (2017, 2018) rely on social
exchange theory to examine the role of consumer involvement with social media such as Impact of
TripAdvisor in driving CE with such tourist sites and ultimately also loyalty toward these representation
brands.
Besides social media, there are other fruitful ways of connecting with customers beyond
media
purchase. Mobile applications and AR have been studied in relation to CE in tourism and
hospitality by for example He et al. (2018), Jung and tom Dieck (2017), Tussyadiah et al.
(2017) and Fang et al. (2017), primarily focussing on factors encouraging adoption of mobile
technology among tourists. With respect to VR, it is long clear from a conceptual point of
view that the medium entails rich opportunities for engaging customers (Williams and
Hobson, 1995), but only very recently empirical studies are being set-up testifying of this
notion. As discussed above, most of these existing empirical validations tend to focus on
VR-related environments in tourism marketing, as opposed to genuine VR as facilitated by
the newest generation of headmounted devices. Moreover, most studies focus on either
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cognitive, affective or behavioural effects of VR, and as such examine only part of the rich
multi-dimensional nature of the CE concept. Table I provides an overview of VR studies in
tourism and hospitality.

3. Research objectives
Inducing high levels of telepresence via a virtual environment is expected to have a positive
effect in travel marketing (Cheong, 1995; Guttentag, 2010). Nevertheless, besides conceptual
studies on the power of VR as a marketing tool, theory-driven and evidence-based empirical
research on the mechanisms that determine the effectiveness of various VEs is scant
(Tussyadiah et al., 2018). For example, while researchers have examined the impact of a
single type of virtual environment (cf. Table I), such as Huang et al.’s (2016) examination of
user acceptance of tourism in virtual worlds, there is a call for research to compare different
types of representation media in a tourism context (Huang et al., 2016). Yeh et al. (2017)
recently compared two types of VEs: pictures and stitched 360° images and found that 360°
stitched pictures (i.e. the medium that has a higher potential in terms of eliciting
telepresence) evoke stronger AIDA responses, especially for consumers experiencing high
arousal. As outlined in Section 2.3, several types of virtual environments exist. While Yeh
et al. provided evidence for the superiority of a medium that has more potential regarding
the elicitation of telepresence, the present study further extends this knowledge by
examining pictures vs two other media that are expected to have an even stronger ability to
elicit telepresence, namely 360° video and genuine, newest generation HMD VR. As such,
the first objective of this study is to examine whether and to what extent the three tourist
destination representation media differ in terms of perceived levels of vividness and
interactivity and their ability to induce telepresence in the context of destination marketing.
Besides identifying key innovative characteristics of VR in tourism, the second objective of
this study is to explain potential differences in consumer behavioural outcomes as a result of
these drivers for travel marketing. In particular, the impact of perceived telepresence on
flow, enjoyment and online purchase intentions, and how these CE antecedents and
components interrelate, is examined.
In examining above constructs and objectives, this study also reveals the impact of
representation media on CE perceived by the user. Several fundamental propositions
regarding CE (Brodie et al., 2011) are addressed in this research set-up. The study examines
interactions with three different media, thus examining the psychological state of the
consumer as a result of this interaction with each medium. As various media are examined,
several situations are considered that may generate different levels of CE. The constructs
measured, namely, flow and enjoyment, are antecedents of relational customer enagement.
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EJM

Table I.

of virtual

hospitality
tourism and
representation

CE dimensions in
medium effects on
Literature overview
Representation
Type of virtual environment media comparison CE dimension effect measurement
Virtual 360° stitched HMD Virtual
Source world photos/-video Reality Y/N Cognitive Affective Behavioural (intentions)

1. Cho et al. (2002) x N Destination image, Overall evaluation (valence), /


telepresence confidence
2. Wan et al. (2007) x Y (brochures) Attitude, brand image / Purchase intentions
3. Sylaiou et al. (2010) x N Telepresence, / Goal-related task
intuitiveness and accomplishment
naturalness of the
medium, control,
interaction
4. Hyun and O'Keefe (2012) x Y (offline Virtual cognitive Virtual affective destination Purchase intentions,
information) destination image, image website revisit intentions
telepresence
5. Mascho and Singh (2014) x Y (quali- / / Visit intentions
exploratory study)
6. Pantano and Corvello x N Ease of use, usefulness / Usage intention
(2014)
7. Huang et al. (2016) x N Ease of use, usefulness Enjoyment Visit intentions
8. Tussyadiah et al. (2016) x N (quali – Presence, attitude / Visit intentions
exploratory study)
9. Griffin et al. (2017) x Y (2D video, Destination image, / Visit intentions, word-of-
website) attitude, quality of mouth intentions, further
mental images information search
intentions
10. Moura et al. (2017) x Y (website, Ease of use, usefulness, / Travel intentions
brochure trustworthiness,
exploratory study) telepresence
11. Yeh et al. (2017) x Y (pictures) Attention, interest Arousal, pleasure Visit desire, visit
intentions
12. Marasco et al. (2018) x N Perceived visual appeal Emotional involvement Visit intentions
13. Tussyadiah et al. (2018) x N Spatial presence, attitude Enjoyment Visit intention
change
14. Gibson and O’Rawe (2018) x N Ease of use, usefulness / Visit intentions, VR re-
usage intentions
Moreover, we address the cognitive (i.e. flow), emotional (i.e. enjoyment) and behavioural Impact of
effects (i.e. purchase intentions) of different media, and unravel how these interrelate in the representation
context of pre-purchase online travel information search.
We concentrate in this study specifically on Millennials, one of the largest groups to be
media
targeted by tourism companies as they rather spend their money on travelling than on
buying a house (Rita et al., 2018). Yet, while they represent an important target market for
the tourism industry, travel companies worldwide face the challenge of winning their hearts
as they are less interested than older generations in professional advice (Li et al., 2013). On
the other hand they tend to be more open for new media and technologies. Across different
nations Millennials also appear to be triggered by similar travel motivations, among which
“sightseeing” has been identified as one of the most attractive destination activities
(Rita et al., 2018).
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4. Research hypotheses
Depending on the type of virtual representation, levels of interactivity, vividness and as a
result telepresence, may differ. A medium can be ranked in terms of interactivity and
vividness. For instance, Klein (2003) found that video with audio (vs with textual
information) is perceived as more vivid and inducing a higher level of telepresence. Similarly,
two-dimensional static photographs of products are found to be less interactive and vivid
than pictures which a user can zoom in on or rotate (Li et al., 2002; Debbabi et al., 2010), while
traditional video is also perceived as less vivid than VR (Van Kerrebroeck et al., 2017).
Generally, three-dimensional and immersive VEs result in users perceiving more
telepresence, interactivity and vividness when using the medium (Steuer, 1992; Yeh et al.,
2017; Hyun and O’Keefe, 2012).
Drawing on Steuer’s (1992)’s theory and other studies’ findings on virtual representation
media, it can be expected in this study that photographs will be the least interactive and
vivid, followed by 360° video, while VR representation using a head-mounted device will
provide superior levels of vividness, interactivity and thus telepresence (Coyle and Thorson,
2001). As such, by means of manipulation check, we hypothesize the following:

H1. The level of interactivity is the highest in case of VR, followed by 360°
representation, and the lowest for photographs.
H2. The level of vividness is the highest in case of VR, followed by 360° representation,
and the lowest for photographs.
H3. The level of telepresence is the highest in case of VR, followed by 360°
representation, and the lowest for photographs.
The relationship between interactivity, vividness and telepresence has been confirmed in
several studies (Li et al., 2002; Hyun and O’Keefe, 2012; Van Kerrebroeck et al., 2017;
Vonkeman et al., 2017). Higher levels of interactivity result in higher perceptions of
telepresence: the more one is able to interact with a (virtual) environment, the more one will
perceive the illusion of being present (Vonkeman et al., 2017) and the more a customer is
likely to perceive engagement (Brodie et al., 2011). Similarly, higher levels of vividness and
thus richer, more vivid and sensory representations are expected to result in higher
perceptions of telepresence (Klein, 2003; Van Kerrebroeck et al., 2017). Previous research
pointed out that to enhance the persuasiveness of VR, it is imperative to heighten the sense
of presence (Tussyadiah et al., 2016). This study inspects the relative importance of two key
innovative features of VR, namely, interactivity and vividness, in generating telepresence in
EJM a tourism context. We particularly include the following hypotheses to validate findings
from previous research in a travel marketing context:

H4. Interactivity positively affects the perception of telepresence.


H5. Vividness positively affects the perception of telepresence.
When regarding telepresence, the concept of flow should also be taken into
consideration, as both constructs have been found to be related in previous research
(Faiola et al., 2013). Flow is an antecedent of customer enagement (Brodie et al., 2011)
that can be described as the state of mind in which one is no longer aware of one’s real
surroundings, which is a consequence of the perception of telepresence (Cho et al., 2002;
Nah et al., 2011). It can thus be expected that telepresence will positively affect the flow
experience, thus positively impacting the user’s engagement (Calvo-Porral et al., 2017).
Furthermore, telepresence has also been found to positively affect users’ enjoyment of
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the digital experience (Nah et al., 2011; Sylaiou et al., 2010). Therefore, we present
following hypotheses:

H6. Telepresence positively affects flow perceptions.


H7. Telepresence positively affects enjoyment.
The sensation of presence positively affects consumer interest and destination liking
(Tussyadiah et al., 2017) and the more immersive an environment is, the greater the
capability of the system to induce the desire to visit the destination (Pantano and Servidio,
2011). We thus expect the following:

H8. Telepresence positively affects travel purchase intentions.


Flow experienced in virtual environments has been found to positively affect consumer
behavioural outcomes, such as purchase intentions (Novak et al., 2000; Huang et al., 2013).
More specifically, flow has been found to induce increased learning effects about a tourist
destination, leading to higher intentions to book the trip (Skadberg and Kimmel, 2004).
Furthermore, previous research has established the relationship between enjoyment and
consumer behavioural outcomes related to purchase intentions (Guo and Barnes, 2011).
Moreover, a positive relationship between flow and enjoyment has also been found to exist
(Nah et al., 2011; Lee and Chen, 2010; Shin, 2009). As telepresence positively affects flow and
enjoyment, which are expected to positively affect purchase intentions, we expect that the
relationship between telepresence and online purchase intentions will be mediated by flow
and enjoyment (Weibel et al., 2008), two relational antecedents to CE (Brodie et al., 2011).
Marasco et al.’s (2018, p. 146) very recently called for empirical studies on this matter in the
context of VR for tourism marketing:
Future research should explore the influence of emotional involvement of virtual visitors on
behavioural intentions. In this regard, attention should be directed toward the identification of the
mediating effect of other experiential variables on destination visit intentions, including, for
example, enjoyment and flow.
We thus present the following hypothesis:

H9. The positive relationship between telepresence and purchase intentions is mediated
by (a) flow, (b) enjoyment and (c) enjoyment via flow.
The resulting conceptual model, consisting of these nine research hypotheses, is presented Impact of
in Figure 1. representation
media
5. Research methodology
5.1 Procedure
This study used an experimental between-subjects design to empirically test the research
model (Figure 1). The manipulation involves three types of representations of the travel
destination New York City (NYC). NYC was selected as a destination, as it is popular among
Millennials but a remote destination for the sample respondents and thus not yet visited by
a large proportion of the study participants. To control for pre-existing impressions of the
city, those respondents who had previously visited New York were excluded from the study.
The first group was exposed to a multiple-picture interface displaying a total of eleven
static images of New York City between which the participants could navigate on a laptop.
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The second group was exposed to a 360° video of the city in which users could determine
their view by dragging the video around using the computer mouse on a laptop. The third
group was offered a virtual visit to NYC via an immersive VR tour, using a smartphone-
enabled VR headset with which they could look and move around their virtual
surroundings. The digital material was sourced from the virtual travel destination website
YouVisit.com, which offers both 360° tours and VR, and the pictures were eleven
screenshots of the virtual tour to provide consistent stimuli. The experiment took place in a
classroom setting with a student sample.

5.2 Measures
Participants completed a pre- and post-questionnaire. The pre-questionnaire pertained to
destination attitude (adapted from Jalilvand et al., 2012; 3 items; a = 0.849; e.g. “very
unpleasant/very pleasant”) and travel intentions (adapted from Jalilvand et al., 2012; 3 items;
a = 0.836; e.g. “I predict I will visit New York City in the future”) to control for potentially
existing predispositions toward the destination.
In addition, the following constructs were measured in the post-test: vividness (adapted
from Keller and Block, 1997; two items; r = 0.508, p < 0.001; e.g. “not easy to picture/easy to
picture”), interactivity (adapted from Liu, 2003; 2 items; r = 0.532, p < 0.001; e.g. “I felt that I
had a lot of control over my VR experience”), telepresence (adapted from Coyle and Thorson,
2001; six items; a = 0.851; e.g. “After looking at the pictures, I felt like I came back to the
“real world” after a journey”), flow (adapted from Huang et al., 2013; three items; a = 0.829;
e.g. “Experiencing New York City via pictures excites my curiosity”), enjoyment (adapted
from Huang et al., 2013; 4 items; a = 0.880; e.g. “The experience with the pictures was fun”)

Figure 1.
Conceptual model
EJM and online purchase intentions (adapted from Amaro and Duarte, 2015; two items; r = 0.378,
p < 0.001; e.g. “I expect I will book a trip to New York City online in the future”). Apart from
the items measuring “vividness”, which were semantic scale items, all items in the
questionnaire were measured by seven-point Likert scales (with anchor points 1 = strongly
disagree and 7 = strongly agree). For each of the measured constructs, summated scale
means are calculated for further analyses.

5.3 Sampling and participant information


A total of 182 responses was collected from a pool of students studying the undergraduate
programme “Tourism and Recreation Management” at a Belgian college. Of the
respondents, 62 participated in the photo condition, 55 in the 360° video condition and 65 in
the VR condition. The average age of the respondents is 21.3 (SD = 2.05; range: 18-32 years
old) and overall 78 males and 102 females participated.
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Based on the responses on the pre-test, we controlled for differences in destination


attitude and prior travel intentions to ascertain that outcomes are not coincidentally affected
by predispositions regarding New York City. Analysis of variance (ANOVA) reveals that no
significant difference in destination attitude can be discerned between the different
experimental conditions (F(2,179) = 1.921; p = 0.149), but that a significant difference in prior
travel intentions to NYC between the conditions appears to exist (F(2,179) = 3.260; p =
0.041). As such, we include travel intentions as a covariate in our further ANOVA analyses
to control for this difference.

6. Analyses and results


6.1 Effect of user interface on telepresence (ANCOVA results)
To test our research model, we conducted an Analysis of Covariance (ANCOVA) to analyse
the effect of user interface on the extent to which interactivity, vividness and telepresence is
induced (H1 through H3). Table II summarizes mean scores and standard deviations
(between brackets) for each target variable in each of the three experimental conditions, and
Table III reports the ANCOVA results.
As the results in table III demonstrate, the representation medium significantly affects
interactivity (F = 36.83; p < 0.001), vividness (F = 15.60; p < 0.001) and telepresence (F =
31.90; p < 0.001). Post hoc multiple pairwise comparisons revealed that the photos vs. 360°
video groups did not differ significantly in terms of vividness (mphotos = 4.68, SD = 1.07 vs
m360 video = 4.74, SD = 1.14 vs mVR = 5.70, SD = 0.93; p = 0.257 > 0.05), but that all other
individual differences were significant and in the expected direction (Table II). Thus, H1
(regarding interactivity) and H3 (regarding telepresence) are supported, and H2 (regarding
vividness) is partially supported, with the destination represented in VR indeed being

Representation medium
Target variable (1) Photo (2) 360° video (3) Virtual reality
2,3 1,3
Interactivity 4.32 (1.19) 5.06 (1.23) 6.02 (0.82)1,2
Vividness 4.68 (1.07)3 4.74 (1.14)3 5.70 (0.93)1,2
Telepresence 3.43 (1.12)2,3 3.78 (1.15)1,3 4.91 (1.00)1,2
Table II. Note: superscript numbers indicate for each experimental condition for which of both other conditions a
Descriptive statistics statistically significant difference on the target dependent variable under study was found
Target variable SS df MS F (at a = 5%) Sig.
Impact of
representation
Interactivity media
Dependent variable 85.40 2 42.70 36.83 <0.001
Covariate 5.91 1 1.19 0.025
Vividness
Dependent variable 27.20 2 13.60 13.44 <0.001
Covariate 15.32 1 15.32 15.14 <0.001
Telepresence
Dependent variable 68.28 2 34.14 29.56 <0.001 Table III.
Covariate 7.46 1 7.46 6.46 0.012 ANCOVA results
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perceived as the most vivid of all three. Note that for the three variables under study, VR
consistently outperforms 360° video, which in turn outperforms photographs.

6.2 The role of telepresence, flow and enjoyment on online purchase intentions (PLS)
To test the remainder of our research model (i.e. H4-H9), we conducted partial least squares
path modelling (PLS-PM) to analyse the relationships between the constructs in the
conceptual model.
6.2.1 Analysis of the measurement model. First, the measurement model was evaluated.
All latent constructs in this model contain reflective items, for which unidimensionality is
tested according to Karlis et al.’s (2003) procedure and confirmed. Furthermore, the
psychometric properties of the model are examined, including item validity and
discriminant validity.
The PLS analyses indicated high factor loading for most items (Table IV), namely, above
the 0.70 level. Although the scores for two items (PI1 and T1) were below the threshold of
0.70, being between 0.60 and 0.70, we chose to retain these items as it is considered
appropriate to keep the items to avoid losing relevant content (Barclay et al., 1995).
Discriminant validity was assessed first by comparing the square root of the average
variance extracted (AVE) with the correlations between the constructs (i.e. the Fornell–
Larcker criterion). Every diagonal value in Table V is found to be higher than the off-
diagonal values in its column, thus indicating that discriminant validity is established (Hair
et al., 2017). Further screening of the Heterotrait–monotrait ratio (HTMT) of the correlations
however pointed at possible issues with discriminant validity of the concept flow. In
particular, HTMT values exceeded the threshold value of 0.90 (Henseler et al., 2015) for the
discriminant validity check between flow – enjoyment (HTMT = 0.93) and flow –
interactivity (HTMT = 1.01), an inspection of the operationalization of the construct flow
hinted at deleting one item (i.e. item F3 – “When experiencing New York City via pictures, I
have the feeling to have control over the situation”). Following Hair et al. s’(2017) guidelines,
this item was deleted on the basis of an examination of cross-construct item correlations. A
follow-up HTMT check of the trimmed model assured discriminant validity, with HTMT
values ranging from 0.271 (i.e. online purchase intentions - telepresence) to 0.893 (i.e. flow –
enjoyment, and vividness – interactivity). The Fornell–Larcker criterion approach of the
resulting model confirmed this conclusion.
Common method bias was controlled for in this study design by using both
procedural and statistical methods. Common method bias is a phenomenon that occurs
when items are artificially correlated with each other, with variance being attributable
EJM Construct Item Loading p-value

Interactivity I1 0.92 <0.001


I2 0.82 <0.001
Vividness V1 0.91 <0.001
V2 0.82 <0.001
Telepresence T1 0.69 <0.001
T2 0.89 <0.001
T3 0.91 <0.001
T4 0.89 <0.001
T5 0.78 <0.001
Flow F1 0.86 <0.001
F2 0.88 <0.001
F3 0.85 <0.001
Enjoyment E1 0.75 <0.001
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E2 0.90 <0.001
E3 0.91 <0.001
E4 0.90 <0.001
Online Purchase Intentions PI1 0.96 <0.001
PI2 0.60 0.003
Table IV.
Item loadings Note: Item F3 in italics was deleted after discriminant validity tests

Construct Interactivity Vividness Telepresence Flow Enjoyment Online PI

Interactivity 0.87*
Vividness 0.60 0.87*
Telepresence 0.68 0.54 0.84*
Flow 0.81 0.55 0.75 0.86*
Enjoyment 0.70 0.54 0.73 0.80 0.87*
Online PI 0.27 0.18 0.22 0.27 0.25 0.80*
Table V. Notes: Diagonal values are the AVE; other values are the correlations between the constructs. The *
Discriminant validity indicates that discriminant validity has been established

to the measurement method (Podsakoff et al., 2003). First, the following procedural
measures were taken in the study design to overcome common method bias. We
collected responses from multiple participants, to eliminate (or at least attenuate)
systematic, person-specific effects, in line with Hulland et al.’s (2018) suggestions. We
also assured the anonymity of the respondents, and asked them to answer as honestly
as possible, using a paper and pen questionnaire. Our questionnaire moreover included
a brief cover story to conceal the true purpose of the study:
The city NYC is launching an information campaign and has developed the following
promotional material. This gives you a global impression of New York City. We would like to
know your opinion on the destination on the basis of this information material.
In addition, besides seven-point Likert scale type items, also semantic differential scales
were used, to operationalize the concept vividness. The outcome measure of online travel
purchase intentions is moreover physically separated from the predictor measures within Impact of
the questionnaire (Hulland et al., 2018). representation
Furthermore, in terms of statistical, post hoc methods for dealing with common method
bias, three tests are conducted. First a Harman’s single-factor test is performed to detect
media
potential common method bias statistically. An exploratory factor analysis extracts more
than one dimension in the pool of items and reveals that no single factor accounts for more
than 50 per cent of the total variance. Second, a “marker” variable approach in line with
Lindell and Whitney’s (2001) procedure is used, whereby partial correlations between the
single items in the latent constructs’ measurement model and a theoretically unrelated
marker variable are inspected. We used a personality trait measure that was incorporated in
the questionnaire, namely the item “I consider myself to be a person that is social, outgoing”.
This item was measured on a seven-point Likert scale with the same anchor points and
verbal labels as most items in our conceptual model under study. The average correlation
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was 0.05 and none of the bivariate correlations reached statistical significance, which gives
an additional indication of the fact that there seems to be no systematic method variance at
play. Third, we check the model for collinearity issues by examining the VIF values of all
sets of predictor constructs. The VIF values of all combinations of endogenous constructs
and corresponding exogenous constructs (i.e. predictors) are all clearly below the threshold
of 5 (Hair et al., 2011, 2017) and even below the more conservative cut-off value of 3.3
proposed by Kock (2015). Therefore, collinearity among the predictor constructs appears not
to be a critical issue in the structural model, and there is no direct indication of the model
being contaminated by common method bias. While each of these statistical post hoc
measures (i.e. Harman’s single factor test, Lindell and Whitney’s marker approach and
Kock’s full collinearity test) have advantages but for sure also limitations, combined they
provide support for having confidence in the fact that CMB is not likely to have distorted the
validity of the findings drawn from our analyses.
6.2.2 Analysis of the hypothesized structural relationships in the model. PLS-PM and a
5000-resample bootstrap was applied to analyse the relationships indicated in the
conceptual model and to evaluate its statistical significance. PLS is a variance-based
estimation technique which is not restrictive in terms of dataset distribution and can handle
more complex models (Hair et al., 2017).
First, regarding the antecedents of telepresence, the analyses reveal that both interactivity
and vividness positively affect telepresence (confirming H4 and H5; cf. Table VI), with the
impact of interactivity on telepresence ( b = 0.55; p < 0.001) being much higher than that of
vividness on telepresence ( b = 0.21; p = 0.003).
Next, regarding the direct consequences of telepresence, we find that telepresence
positively affects flow ( b = 0.69; p < 0.001), enjoyment ( b = 0.42; p < 0.001), and online
purchase intentions ( b = 0.23, p = 0.003) (affirming H6, H7 and H8; Table VI).
Furthermore, mediation analysis is conducted to further explain the impact of
telepresence on online purchase intentions via the intermediate constructs of flow and
enjoyment (H9). According to the procedure for mediation analysis outlined by Zhao et al.
(2010), we first determine whether the indirect effect is significant. Based on the path
coefficients generated by the PLS analysis, we find that the total indirect effect path
coefficient, aggregated over the different mediating paths equals 0.22. We determine the
significance of the effect via confidence intervals based on the aforementioned 5,000-
resample bootstrapping procedure (Nitzl et al., 2016) and find that the confidence interval at
the 5 per cent level [0.04; 0.417] does not include zero. Thus, it can be assumed that there is a
significant indirect effect (Nitzl et al., 2016). Second, we determine the significance of the
direct effect when the mediators are included in the structural model and find that, in this
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EJM

Table VI.

relationships
Summary of PLS
analyses of direct
Total (original) Photo 360° VR
Path Beta 95% BCCI p Beta 95% BCCI p Beta 95% BCCI p Beta 95% BCCI p

H4: Interactivity ! Telepresence 0.55 [0.408; 0.661] < 0.001 0.43 [0.167; 0.674] 0.001 0.41 [0.140; 0.593] <0.001 0.55 [0.225; 0.711] <0.001
H5: Vividness ! Telepresence 0.21 [0.077; 0.342] 0.003 0.08 [-0.383; 0.313] 0.6 0.34 [0.128; 0.565] 0.002 0.25 [-0.007; 0.483] 0.053
H6: Telepresence ! Flow 0.69 [0.601; 0.756] < 0.001 0.58 [0.343; 0.729] <0.001 0.70 [0.560; 0.780] <0.001 0.57 [0.351; 0.718] <0.001
H7: Telepresence ! Enjoyment 0.42 [0.282; 0.554] < 0.001 0.36 [0.060; 0.595] 0.008 0.255 [0.051; 0.449] 0.012 0.59 [0.406; 0.753] <0.001
H8: Telepresence ! Online PI 0.018 [-0.281; 0.267] 0.898 0.307 [-0.606; 0.060] 0.067 0.199 [-0.457; 0.691] 0.506 0.173 [-0.607; 0.363] 0.483

Notes: All beta values reported are standardized values; As only partial measurement invariance has been established, pooling of the three groups into an
aggregate complete sample is in sensu stricto not allowed. The reported results for the complete dataset (i.e. column “Total”) are as such included merely for
indicative purposes
case, the direct effect of telepresence on purchase intentions equals 0.018, which is not Impact of
significant (p > 0.05). An assessment of the variance accounted for (VAF; i.e. the size of the representation
indirect effect in relation to the total effect), reveals that with a direct effect path coefficient
of 0.018 and an indirect effect path coefficient of 0.22, the VAF score amounts to 92.42 per
media
cent, indicating full mediation between telepresence and online purchase intentions via flow
and enjoyment (Hair et al., 2017).
6.2.3 Multi-group analyses on the research hypotheses. The analyses reported in the
preceding Section 6.2.2 are based on the model estimation for the complete data set. For
robustness sake, we conduct PLS-MGA (multi-group analyses; Sarstedt et al., 2011) to
explore potential differences in parameter estimates across the three experimental
conditions (i.e. photo, 360° and VR).
To be able to compare these groups, measurement invariance needs to be established
first, to be confident that group differences in model estimates do not result from distinctive
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content and/or meanings of the latent variables across groups (Hair et al., 2018). By means of
Henseler et al.’s (2016) MICOM (i.e. measurement invariance of composite models) approach,
three steps are taken with this objective, namely a check of configural invariance,
compositional invariance and equality of composite means and variance. The first check is
non-statistical and involves examining whether there are identical indicators per
measurement model (cf. face and/or expert validity), identical treatment of indicator data
(e.g. coding, standardization, missing values treatment), and identical algorithm settings or
optimization criteria, across the three groups. This test allowed us to establish configural
invariance across the Photo-, 360°- and VR condition.
Second, compositional invariance is required to ensure that differences in structural
coefficients, when comparing groups, do not result from differences in the way the
composite or latent construct under study is formed (Henseler et al., 2016). To test whether
the composite scores are the same across the groups, despite possible differences in the
group-specific weights used to compute the scores, a permutation test of correlations
between composite scores is conducted. Similar to bootstrapping, this implies that a
reference distribution is generated from the actual data (Hair et al., 2018). Contrary to
bootstrapping, permutation tests randomly sample observations from the original data
without replacement. It is an efficient approach to nonparametric testing, also when the
sample size is small (Ernst, 2004). The results from Step 2 allow us to also establish
compositional invariance. For none of the latent variables is the composite score
significantly different at the 1 per cent level of significance, across the groups. These results
provide support for partial measurement invariance, allowing for a comparison of the
standardized path coefficients across the groups, by means of a multigroup analysis.
Besides configural and compositional invariance, which are necessary conditions to
allow for PLS-MGA, a third step in testing measurement invariance consists of establishing
equality of the composites’ mean values and variances. Applying Henseler et al.’s (2016)
guidelines, we fail to find support for this third step. Combined, this implies that although
multi-group analyses are allowed and make sense, statistically speaking, it is more correct to
report structural path model results for each group separately, than reporting analysis
results on the pooled data-level (Henseler et al., 2016).
Therefore, in Table VI, the results for all four samples are presented: the Photographs
condition, the 360° condition, The VR condition and merely for indicative purposes, the
complete sample. Note that the inferences that can be drawn from the analyses are largely in
line, across all settings, and in agreement with what was reported for the total sample in
Section 6.2.2. The only difference that arises, pertains to H5 on the link between vividness
and telepresence. While in group 1 (i.e. Photo condition; b = 0.08, p > 0.05) and group 3 (VR;
EJM b = 0.25, p = 0.053), this relationship is not statistically significant, it does reach
significance in group 2 (i.e. 360° condition; b = 0.34, p < 0.01) and in the complete sample
( b = 0.21, p < 0.01). Apart from this difference in statistical significance, the coefficient is in
all four cases positive. Moreover, in all four samples, the vividness coefficients do not reach
the value of the interactivity coefficients as second driver under study for the core construct
telepresence, leaving the earlier drawn conclusion on relative importance of both drivers
intact.
Moreover, multi-group analyses are conducted based on the bootstrapping approach
developed by Henseler et al. (2009) to further investigate such differences in parameter
estimates across all three experimental conditions (i.e. photo, 360° and VR). The results of
these PLS-MGA (Sarstedt et al., 2011; Hair et al., 2018) formally confirm that the model
estimation results are comparable across these three subsamples. Of the total of eight
structural relations to be estimated in our model, which are compared across three groups,
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only one difference was revealed as statistically significant in the PLS-MGA. It pertains to
the relationship between flow and enjoyment, which is identified as significantly different,
at the 1 per cent significance level, between group 2 (i.e. 360° condition; b = 0.648, p < 0.01)
and group 3 (VR condition; b = 0.264, p < 0.05). Both path coefficients are however positive
and significant, as was the case in estimating the model for the complete data set ( b = 0.463,
p < 0.01). As such, conceptually, no different conclusions result for the different types of
representation media for which we estimated our model, as compared to the complete
dataset model estimation. The overall results can as such be considered robust and stable.
Besides examining multi-group differences in parameter estimates of direct effects that
were hypothesized in the model, we also inspect the mediating effect of flow and enjoyment
in the relationship between telepresence and online travel purchase intentions, across the
three subsamples. The VAF in purchase intentions, by the total indirect effect of
telepresence, resulting from the mediation analyses, ranges from 40.85 per cent in the 360°
condition, over 42.42 per cent in the photographs condition, to 51.68 per cent in the VR
condition. As such, the results reveal, for each of the three conditions, that the effect of
telepresence on online travel purchase intentions is partially mediated (with VAF values
exceeding 0.20 but remaining below 0.80; Hair et al., 2017), by flow and enjoyment. While
these findings allow to confirm the key role that flow and enjoyment play in the relationship
between telepresence and intentions to book a trip to that destination, identifying partial
mediation can also hint at the possibility of an omitted additional mediator (Zhao et al.,
2010). In Section 8, suggestions for further research are provided to guide future inquiries in
this regard.
So far, we have estimated separate models, whereby we account for observed
heterogeneity in the data due the three distinct experimental conditions in our research
design. Besides such observed heterogeneity, we have also controlled whether unobserved
heterogeneity may play a critical role in our data set. Doing so, adds to the validity of the
PLS path modelling results (Hair et al., 2018). We apply one of the currently most prominent
latent class techniques, called finite mixture partial least squares (FIMIX-PLS) to ascertain
that unobserved heterogeneity does not influence the results. Given the sample size and
model complexity, we run the FIMIX procedure for 1, 2 and 3 latent cluster solutions, with
5,000 iterations (maximum), and optimization criterion value 1 * 105. We applied 10
repetitions for each FIMIX run to avoid identifying local rather than global optima by means
of the underlying estimation-maximation algorithm on the likelihood function. Based on
several of the proposed information criteria in FIMIX-PLS (cf. Sarstedt et al., 2011), such as
AIC3, AIC4, BIC and CAIC, the conclusion is uniform and in favour of the single latent
segment solution (of which the value of these information criteria is consistently the lowest).
Thus, besides disentangling the aggregate dataset into three subsamples on the basis of the Impact of
observed experimental group variable, further segmentation based on potential latent representation
sources of heterogeneity seems not beneficial.
media
7. Discussion
The objectives of this study were first to examine the extent to which the media differ in
terms of perceived levels of interactivity, vividness and telepresence, and second to explain
the differences in consumer behavioural outcomes as a result of these mechanisms.
Regarding the first objective, we found that significant differences between the different
media with respect to interactivity, vividness and telepresence exist, with the level of these
constructs being highest for VR, followed by 360° video representation and lowest for the
series of photographs. The findings also reveal that both interactivity and vividness
contribute significantly to the perception of telepresence, with the impact of interactivity on
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perceived telepresence being higher than the impact of vividness. As such, it appears that
especially interactivity is of great importance in travel applications. This finding is in line
with the findings of Pantano and Servidio (2011) in their study on stereoscopic 3D
representations of historical objects (e.g. statues and vases) and buildings in a museum,
which revealed that it is especially the level of interactivity that interests consumers when
regarding innovative methods to deliver touristic information.
Furthermore, the findings reveal that telepresence positively impacts flow, enjoyment
and online purchase intentions, in line with Nah et al. (2011). Therefore, this research also
demonstrates that the medium via which pre-purchase travel information is communicated
can impact antecedents of CE, with greater levels of presence generating more CE. As such,
it can be concluded that the sensation of being present in a virtual environment and
forgetting about one’s surroundings are key elements in eliciting positive consumer
behavioural outcomes.
Further analysis reveals that the relationship between telepresence and online purchase
intentions is fully mediated by the mediators flow and enjoyment. These findings confirm
our expectations regarding the role of enjoyment (via flow) as a mediator (Huang et al., 2013)
on consumer behavioural outcomes. Overall, the use of a more vivid and especially
interactive medium for travel destination representation can induce flow and enjoyment to
consumers and indirectly lead to enhanced behavioural intentions. As such, the present
experimental study confirms the pivotal role of CE in generating conversion based on
interactive and vivid media for marketing communications. It is not so much telepresence
perceptions in se that will translate automatically into purchase behaviour, but rather the
cognitive and emotionally engaging states evoked by this telepresence that explain
increased purchase intentions.

8. Limitations and suggestions for further research


Although this research contributes to the knowledge on the application of VR in tourism
retail services, there are some limitations that must be taken into account. The first
limitation of this study is related to the fact that we focussed on Millennials and thus used a
student sample. While some studies suggest that this may not significantly affect validity
when the research involves individual decision-making (McKnight et al., 2002) and effects of
advertising (Singh et al., 2000; Wan et al., 2007), it should be acknowledged that the findings
of the study may not be generalizable to other generations of travellers (Mazaheri et al., 2012;
Peterson and Merunka, 2014). While we do find some initial support by Gibson and O’Rawe
(2018, p. 102) for the absence of a relationship between VR usage/response and age, we
acknowledge that further research to confirm this preliminary finding is recommendable as
EJM their study was based on only 129 consumers, aged 18-65þ. Further research should
examine how an older sample group reacts to the various media, as younger people are, for
instance, often more likely to seek sensation (Xu et al., 2016) and are more open to new
technologies (Venkatesh et al., 2003). A study considering a more diverse respondent
sample, considering all age groups could allow for the comparison between age groups,
possibly identifying age as a moderator. Upon examining broader groups in the population
and/or longer term effectiveness of the VR medium in tourism marketing, close attention
needs to be paid in designing the study so as to minimize non-response bias (cf. e.g.
guidelines in Groves and Peytcheva, 2008).
Next, the current study presented only one holiday destination to the experiment
participants. As New York City is a well-known city trip location, results may differ for
virtual representations of different types of travel destinations (e.g. beach holidays, active
holidays, [. . .]) or of less well-known destinations (Wan et al., 2007). Thus, the findings may
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not be generalizable to all tourist destinations, as a vivid representation may be more suited
for a dynamic travel destination, whereas a less dynamic representation could be more
appropriate for more calm environments such as beaches (Daniel and Meitner, 2001), and the
effect may be even stronger for lesser-known travel destinations.
Additionally, further research avenues could consider tourist typologies or personality
traits. Various traveller typologies exist (Decrop and Snelders, 2005; Gretzel et al., 2004).
Tourists may be looking for culture, shopping pleasure, activity or relaxation at the beach
and such travel motivations could be used as a moderator when examining the effects of
various media. This kind of segmentation could moreover provide valuable information for
the targeting of destination representation via particular media to specific consumer
segments as the travel motivation and the destination representation medium should be
congruent. Moreover, the travel motivation (e.g. adventure) may also provide an indication
as to the openness towards a more novel medium such as VR. Furthermore, personality
traits, sensation seeking behaviour (Xu et al., 2016; Pizam et al., 2004) or technology
readiness (Parasuraman and Colby, 2015) may also be considered to provide further insights
into the effectiveness of diverse representation media for different consumer segments, as it
can be expected that sensation seekers and consumers who are more open toward new
technologies will report more positive perceptions towards VR than those who are not.
Besides examining boundary conditions to the generalizability of the present study’s
findings, by conducting further research on potential moderators in this context, future
studies should also consider additional mediators. The mediation analysis for all three
samples (i.e. Photo, 360° and VR) reveal partial mediation of the relationship between
telepresence and travel purchase intentions by the concepts of flow and enjoyment. It would
be enlightening to investigate potentially other mediating factors to deepen our
understanding of the process underlying the effects of telepresence on travel purchase
intentions. While flow and enjoyment are rather abstract or respectively affective consumer
states, it could be valuable to include in particular cognitive evaluations as additional
mediators. For example, does telepresence lead to increased self-confidence or reassurance in
being able to make the right decision, in consumers using a particular travel destination
representation medium? If VR allows them to feel better informed a priori, in the orientation
stage of their customer journey, this could have a positive effect on travel purchase
intentions as well. Further investigation is needed to examine whether these (and/or other)
mediating factors, besides flow and enjoyment, can further add to the explanation of online
travel purchase intentions.
Finally, we encourage future studies to include multiple information sources to draw
inferences from. The present study relied on self-reported measures, based on a consumer
survey. Researchers might also consider the use of secondary data sources (e.g. objective Impact of
performance data, such as actual sales records) as outcome measures (Hulland et al., 2018). representation
Pursuing this approach in further research would be beneficial in two ways. On the one
hand, until present only a minority of survey research in marketing has included data from
media
such sources (i.e. 6.4 per cent of all survey-research based marketing publications in JAMS,
JM and JMR, as evidenced in a recent review study of the period 2006-2015, by Hulland et al.,
2018). There is as such still much to be uncovered, in this regard. On the other hand,
measuring performance by means of objective performance data or real consumer
behaviour, can help to eliminate (or at least attenuate) potential bias arising from common
method usage in the model estimation. In this same vein, indirect methods for measuring
consumer reactions are worthwhile to consider. Techniques such as Implicit Association
Testing (IAT; e.g. Greenwald, McGhee, and Schwartz, 1998; Dimofte, 2010; Goodall, 2011) or
even neurophysiological techniques (e.g. pupil dilatation or galvanic skin response analysis;
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Ramsøy et al., 2017) could provide fruitful avenues to base further research on, as they
respectively allow for examining the affective valence and intensity aroused by
representation media in tourism marketing on customer reactions. Furthermore, field
studies whereby destination marketing by real DMOs through various representation media
is related to performance measures are also particularly called for to examine the external
validity of our findings. To this end, (probably at least partly) survey-based research
designs addressing strategic management decisions are advisable. A priori reflection on
potential sources of endogeneity and inclusion of theoretically grounded control variables is
herein strongly recommended (Hamilton and Nickerson, 2003; Hult et al., 2018). For example,
technology readiness of the DMO or marketing budget could be such factors that can entail
endogeneity problems.

9. Implications
The findings of our study provide contributions both to the academic literature, and to the
travel retail sector. The theoretical novelty of the results is in essence fourfold. First, the
main originality in this research resides in the fact that it studies a novel medium of tourist
destination marketing, namely VR, and in particular the newest generation of mobile HMD
VR devices. While existing research in tourism marketing already demonstrated the
effectiveness of VR-related representation media, such as virtual worlds (e.g. Second Life) or
360 virtual tours (without interaction/navigation options controlled by the user), the full
potential of the newest generation VR using HMD such as untethered mobile Google
Cardboards, is still to be uncovered. There is an urging call for particularly empirical
support for previous conceptual research insights (Tussyadiah et al., 2018).
Second, while representation medium effects (including effects of VR-related media) in
destination marketing have received substantial academic attention (cf. Table I for an
overview), most existing studies entail effect measures pertaining to only either emotional,
cognitive or behavioural (intentions) of consumers (tourists). Our study is unique in
examining the effect of VR tourism marketing on the cornerstone concept “Customer
Engagement” in its full dimensionality (i.e. cognition, affect and behavioural intentions) by
examining constructs of flow, enjoyment and purchase intentions, while minding
interrelations between these concepts. Both direct and mediating effects are integrated in the
estimated model, to unravel the mechanisms at play. As such, our study for instance
responds to Marasco et al.’s (2018) call for mediation analyses to add to the comprehension
of the role of flow and enjoyment in explaining VR telepresence effects on behavioural
intentions.
EJM Third, despite the importance of the CE concept in a tourist context, and the resulting rise
in academic attention among hospitality marketing scholars for this topic, until present,
these studies predominantly examined the potential of social media strategies. Hotels,
airlines and other DMOs however increasingly also adopt new media channels like VR and
AR to manage customer relationships beyond purchase. As such, the integration of core CE
components into a unified model is necessary for creating a comprehensive understanding
of effective VR-based CE strategies in a tourism context.
Fourth, the comparative design of our study, examining traditional versus innovative
representation media (i.e. pictures, 360° video and VR), allows for identifying the key
innovative features that drive the engaging potential of the VR medium. The findings in
particular show that the interactive nature of the VR medium, more so than its vividness, is
the main driver of user perceptions of telepresence which in turn leads to increased levels of
CE. While some relationships hypothesized within the proposed model (e.g. the linkage
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between interactivity, vividness and telepresence) have been previously investigated (Hyun
and O’Keefe, 2012), “it is important, theoretically and managerially, that CE is not treated as
an outcome but rather a process” (Harrigan et al., 2017, p. 6000). Doing so, this study offers
some empirical indication of how CE is situated within a comprehensive nomological
network. The conceptualization and formal testing of the linkages between different CE
components in this integrated model provide nomological validity for the CE concept (cf. e.g.
also So et al., 2016) and, more importantly, also illustrate its position in the wider
nomological network in a destination marketing context.
The findings of our study moreover entail managerial implications for DMOs on a non-
negligible technological trend in tourism and hospitality marketing. A new stream of
wearable VR devices, including HMDs such as Oculus Rift and Google Cardboard, is
becoming ever more accessible to the consumer market (Van Kerrebroeck et al., 2017). The
latter can be purchased at prices in the range of US$10-20 (Alford, 2018), which obviously
encourages consumer adoption. Moreover, VR content to run on apps in such HMDs,
providing compelling imagery of diverse tourist destinations, museums and cultural
heritage are readily available at platforms like for instance YouVisit. This evolution has
become one of the major drivers of transformation of tourists’ behaviour and tourism
experiences (Marasco et al., 2018). These new media channels are, as such, ever more
adopted in tourism and hospitality marketing, to manage customer relationships beyond
purchase (So et al., 2016). The findings of the present study reveal that a strongly engaging
technology such as VR may indeed be a useful tool for the travel retail sector, even more so
than less advanced virtual environments. Undeniably, marketing in the tourism industry
can be more effective when consumers can access information anywhere and anytime
(Werthner and Klein, 2000), and this as realistically as possible (Tussyadiah et al., 2017). Our
study focussed on NYC as a tourist destination. Previous research demonstrated however,
that the superiority of virtual experiences over more traditional media is contingent upon
the type of destination (Wan et al., 2007). DMOs should consequently mind the particular
destination they are promoting upon considering using VR as a medium.
The focus of the present research on technology-enhanced CE in the pre-visit phase is
particularly relevant for managerial purposes, as this stage is crucial in the overall
experience process, as tourists at that point develop their expectations about the visit and
activate their decision-making process (Neuhofer et al., 2012, 2014; Marasco et al., 2018). In
line with expectation-disconfirmation theory (Oliver, 1977), it is essential to shape
consumers’ pre-purchase expectations in line with reality, for the service encounter to meet
expectations, resulting in satisfied customers and a basis for customer relationship
management. New technologies such as VR have an important role to play for tourism
providers and destination organizations seeking to promote their products and sites in Impact of
innovative and more effective ways, in this anticipatory phase (Marasco et al., 2018). representation
The findings of our study moreover provide specific guidelines on which are the key
buttons for tourism marketers to push to effectively engage Millennials with VR. In
media
particular, we revealed that interactivity of the medium (cf. Liu, 2003), more so than its
vividness, is of great importance in contributing to the perception of presence for this
particular application. It is that perception that in turn leads to enjoyment and feelings of
flow, which in turn mediate consumers’ behavioural intentions. As such, travel retailers and
VR developers should take this into consideration to develop successful and particularly
engaging applications.
For DMOs, it is moreover necessary to envision how to fit such pre-purchase stage VR
interactions with (potential) customers into the encompassing customer journey and in longer
term customer relationship management. Starting from the notion that CE goes beyond the
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purchase transaction, VR could also facilitate customer–firm interactions in the post-purchase


stage. As discussed in Section 2.4, most of the fairly limited literature on CE in tourism so far
focussed on the role of social media and user-generated content (e.g. referrals, hotel reviews etc.;
cf. Wei et al., 2013, for example). While tourists nowadays sometimes already take the effort to
upload pictures of their (hotel) experience, they could share their experiences in a more
comprehensive manner by sharing VR (or for starters 360° video or panoramic picture) content
in social media as well. Panoramic pictures can readily be taken with most recently available
smartphones. 360° Video- and VR content creation is (so far) not yet possible with regular
consumer smartphones, but DMOs could assume their role as resource integrator, providing
consumers with the right technological equipment, to elicit such diverse tourist experiences.
These VR-elicited experiences would provide the DMO with rich insights on the subjective,
interactive tourist experience, allowing for service encounter and CE optimization. Further
research both in terms of practicality as well as from a theoretical perspective is needed.

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Further reading
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pp. 184-198.

Corresponding author
Kim Willems can be contacted at: kim.willems@vub.be

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