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William F. Harrah College of Hotel Administration, University of Nevada Las Vegas, 4505 Maryland Parkway, Box 456023, Las Vegas, NV 89154, USA
b
School of Hotel and Tourism Management, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR, China
c
School of Travel Industry Management, University of Hawaii at Manoa, 2560 Campus Road, George Hall, Honolulu, HI 96822, USA
Abstract
With the increasing popularity of online shopping and being the most populated country in the world, China is one of the major online
markets now and is likely to become the largest market in the future. In the academic literature, website quality has generally been
recognized as a critical step to drive business online. As such, numerous studies have been devoted to website quality and evaluations.
Research efforts are, however, in need of understanding the use of websites in regards to online customers behavior, especially Chinese
customers. This study developed and empirically tested a conceptual model of the impact of website quality on customer satisfaction and
purchase intentions. Results indicated that website quality has a direct and positive impact on customer satisfaction, and that customer
satisfaction has a direct and positive impact on purchase intentions. While the inuence of website quality on purchase intentions exists,
customer satisfaction does signicantly mediate this effect. Drawing on the empirical ndings, managerial implications and
recommendations for future research are offered.
r 2007 Elsevier Ltd. All rights reserved.
Keywords: Chinese online visitors; Customer satisfaction; Purchase intentions; Website quality
1. Introduction
At present, online purchases of travel-related products
through web channels have experienced an unprecedented
growth rate. Research by PhoCusWright anticipates that
for the rst time online travel bookings will comprise over
half of all travel transactions in the United States in 2007
(Verikios, 2006). In order to capture this lucrative online business, hospitality and tourism managers have been,
and will continue, enhancing their competitive advantages
by focusing their resources on the virtual business
environment.
In Mainland China (hereafter known as China), the
development of e-commerce has great potential. It has been
reported that there are 94 million Chinese online users, and
this number will reach 140 million by 2007 (iResearch Inc.,
2005). Richardson (2005) stated that China would become
Corresponding author. Tel.: +1 702 895 4844; fax: +1 702 895 4870.
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3. Methodology
3.1. Measurement development
The measurement on website quality was based on the
studies conducted by Au Yeung and Law (2004), Chung
and Law (2003), and Law and Hsu (2005), who empirically
analyzed two major constructs in evaluating websites,
namely functionality and usability. According to these
studies, functionality refers to contents of a website, while
usability relates to issues of design. More specically,
functionality relates to the information richness of a
website, whereas usability refers to the degree of ease with
which users can use a website. The functionality and
usability items were measured in a 7-point Likert type scale
with 7 being Very important and 1 being Not
important at all. In addition, Anderson and Srinivasan
(2003) employed Olivers (1980) multi-item scale to
measure customer satisfaction in an e-retailing context.
This scale was modied to measure online visitors
satisfaction in the current study. These satisfaction items
were also measured in a 7-point Likert type scale ranging
from 7 being Strongly agree to 1 being Strongly
disagree. The variable Purchase intentions was examined in a two-item 7-point Likert type scale ranged from
7 being Very likely to 1 being Very unlikely that
reects online visitors behavioral intentions in the near
future (6 months) and relatively long term (2 years).
Demographic data including gender, age, education, and
annual household income before taxes were also collected
in the study. Altogether there were 11 questions on the
survey.
3.2. A rival model
According to Bollen and Long (1992), not only testing a
proposed model but also comparing rival models has
become an emerging consensus in structural equation
modeling (SEM). Our model posits that functionality and
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Website Quality
Functionality
purchase information (Funct1)
service/products information (Funct2)
destination information (Funct3)
quality of information (Funct4)
contact information (Funct5)
Customer Satisfaction
(Satisfaction)
Purchase Intentions
(PurchaseIn)
Usability
language (Use1)
layout and graphics (Use2)
information architecture (Use3)
user interface and navigation (Use4)
general (Use5)
Fig. 1. A conceptual model of website quality, customer satisfaction, and purchase intentions.
Usability
Purchase
Intentions
Customer
satisfaction
Fig. 2. A rival model of website quality, customer satisfaction, and
purchase intentions.
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Gender
Male
Female
Missing
Total
88
84
8
180
48.9
46.7
4.4
100
Age (yr)
25 or less
2635
3645
4655
5665
66 or above
Missing
Total
74
80
15
4
1
2
4
180
41.1
44.4
8.3
2.2
0.6
1.1
2.3
100
Education
Less than secondary/high school
Secondary/high school
Some college or university
College/university diploma/degree
Postgraduate degree
Missing
Total
5
38
29
77
22
9
180
2.8
21.1
16.1
42.8
12.2
5
100
31
40
21
5
11
6
18
5
16
27
180
17.2
22.2
11.7
2.8
6.1
3.3
10
2.8
8.9
15
100
1 RMB US$0.125.
Table 2
Standardized factor loadings and t-values resulting from conrmatory factor analysisa
Functionality
Funct2
Funct5
Use2
Use5
Sat1
Sat3
Sat5
PurchIn1
PurchIn2
Composite reliability
a 2
Usability
Customer satisfaction
Purchase intentions
0.893 (2.077)
0.408 (2.042)
0.684 (5.828)
0.758 (5.826)
0.687 (7.24)
0.713 (6.944)
0.705 (7.204)
0.534
0.682
0.744
0.804 (5.047)
0.766 (5.044)
0.76
w 30.308, d.f. 21, p40.05, CFI 0.975, GFI 0.965, AGFI 0.925, RMR 0.041, RMSEA 0.050 (condence interval 0.0000.086).
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Table 3
Convergent validity and discriminant validity
Constructs
Convergent validity
Discriminant validity
Functionality
Usability
Customer satisfaction
Purchase intentions
0.4080.893
0.6840.758
0.6870.713
0.7660.804
0.2160.350
0.3500.641
0.3430.641
0.2160.444
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E2
E5
0.38
0.92
Funct2
Funct5
0.93
0.39
Functionality
0.14
D4
D3
0.89
0.75
0.34
Customer satisfaction
0.46
0.71
0.53
E17
PurchIn2
0.69
E18
PurchaseIn
0.73
0.69
PurchIn1
0.85
0.70
0.60*
Sat1
Sat3
0.73
Usability
0.67
E11
Sat5
0.70
0.72
E13
E15
0.77
Use2
Use5
0.74
0.64
E7
E10
Table 4
Analysis of competing model
Proposed model
Rival model
Path
Estimate
Path
Estimate
Direct effect
Satisfaction-purchase intentions
0.209a
Direct effects
Functionality-purchase intentions
0.294c
Indirect effects
Functionality-purchase intentions
0.083b
Usability-purchase intention
0.135b
w2(23) 31.498; GFI 0.964; CFI 0.977; model AIC 14.502
Usability-purchase intention
Customer satisfaction-purchase intentions
0.244c
0.290c
N 180.
a
po0.1.
b
po0.05.
c
p40.1.
has been proved to inuence customers purchase intentions. This effort calls for future studies to enhance the
model by considering more related constructs of interest
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