Article Review #9

The review should be one page, double spaced. The review should be a ½ page summary of the article, and a ½ page application of the material to the real world.

Please, see attached the article to review and a document with two samples of two articles review so you can have a better idea how I want the review.

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Anatolia – An International Journal of Tourism and Hospitality Research Vol. 22, No. 1, April 2011, 120–124

RESEARCH NOTE

The impact of channel knowledge on shopping orientations in consumer buying behavior

Bomi Kang*

Department of Management, Marketing, and Resort Tourism Management, E. Craig Wall College of Business Administration, Coastal Carolina University, PO Box 261954, Conway, SC 29528-6054, USA

(Received 27 October 2010; final version received 3 January 2011)

Introduction

Tourism websites are plentiful and sales are increasing. The growth rate of the online travel market is exceeding that of the total travel market. PhoCusWright (2006) projects that internet booking will account for 54% of all US travel bookings in 2007. The internet, indeed, is the fastest growing distribution market.

Responding to such demands, tourism suppliers (e.g. hotels and airlines) have added their direct online channels in fear of losing their business to a new, yet increasingly refined, online business model (web-based travel agents), such as merchant and opaque (Kang, 2005). Channel friction is shaping up to be a huge problem in industry in general (McCune, 1999; Schoenbachler & Gordon, 2002) but particularly in the tourism industry, where traditional tour operators and travel agents are concentrated and control a large percentage of sales (Kang, 2005). Internet-based travel agents have become a substantial threat to traditional intermediaries and also to tourism suppliers, who actually own inventory – rooms, seats, cars, and ships.

Although tourism literature and experts unanimously agree that today’s customers are proficient at using the internet and possess unprecedented power and knowledge about products, inventories, and competitive offerings (Schoenbachler & Gordon, 2002), they ask the same unanswered questions; what are the reasons why internet users buy travel products online. To answer this question, the author investigated factors of internet purchase with a special reference to tourism-related products from both theoretical and practical perspectives. Utilizing well-established shopping orientation theory, the current study examined the convenience and recreational shopping orientation, self-deregulation, and channel knowledge on the purchase of travel products online.

Literature review

Shopping orientations are related to a general predisposition toward acts of shopping, are conceptualized as a specific dimension of lifestyle and are operationalized on the basis of

*Email: bkang@coastal.edu

ISSN 1303-2917 print/ISSN 2156-6909 online q 2011 Taylor & Francis DOI: 10.1080/13032917.2011.556226 http://www.informaworld.com

 

 

Anatolia – An International Journal of Tourism and Hospitality Research 121

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attitudes toward activities, interests, and opinion statements pertaining to acts of shopping (Holbrook, 1986; Kim & LaRose, 2004). This study examined the two most well-studied shopping orientations in the marketing literature; convenience (Bellenger, Robertson, & Greenberg, 1977; Girad, Silverblatt, & Korgaonkar, 2002; Jarvenpaa & Todd, 1997; Li, Kuo, & Russel, 1999) and recreational (Bellenger & Korgaonkar, 1980; Donthu & Garcia, 1999) orientation as well as self-deregulation, which was found to be an important determinant of online shopping behavior (Kim & LaRose, 2004).

Convenience orientation

The convenience maximization orientation (Girad, Silverblatt, & Korgaonkar, 2002; Jarvenpaa & Todd, 1997; Li, Kuo, & Russel, 1999) refers to shoppers’ attitudes (Holbrook, 1986) toward shopping as a procedure to maximize their individual economic efficiencies; specifically, to minimize their search and transaction costs. Convenience orientation stresses the utilitarian value of shopping, as a task-related, rational, deliberate, and efficient activity (Babin, Darden, & Griffin, 1994). Therefore, shoppers with convenience orientations try to minimize their search cost as much as possible to save time or energy for activities other than shopping (Anderson, 1971). These previous studies were tested in a retail-based setting, yet the convenience orientations may perfectly explain the increase of online shopping as it saves the time and effort needed for visits for product or price comparisons (Darian, 1987; Girard, et al., 2002; Jarvenpaa & Todd, 1997; Li et al., 1999).

Recreational orientation

Shoppers with a recreational orientation view shopping as a form of recreation and often make impulse buys (Bellenger & Korgaonkar, 1980; Donthu & Garcia, 1999). The hedonic value of recreational orientation results from enjoyment and playfulness rather than from task completion (Holbrook & Hirschman, 1982). Hedonic value is indicated by increased arousal (e.g. excitement caused by bargains), perceived freedom, fantasy fulfillment, and escapism (Hirschman, 1983). Thus, shoppers who pursue hedonic or recreational outcomes from shopping tend to spend more time on shopping, go shopping without plans or product lists, and continue shopping even after purchasing products they planned to buy. In these situations, purchases may be driven by ‘need to purchase’ rather than ‘need for a product’ (Rook, 1987). Therefore, shopping experiences driven by a recreational orientation lead shoppers to make more unregulated buys (Bellenger & Korgaonkar, 1980).

Self-deregualtion

In Babin et al.’s (1994) study, a website shopper with a specific gift purchase in mind was attracted by an on-site shopping recommendation to buy a fun gift for himself on impulse. More recent marketing studies (Kim & LaRose, 2004) found that online shoppers may exhibit unregulated purchase behavior regardless of shopping orientations under the circumstances of exposed stimuli (solicitation, the interactive features of website). Online shoppers were found to possess multiple shopping orientations (Brown, Pope, & Voges, 2003), combining the pursuit of convenience and recreational outcomes when they were attracted by a nature of impulse buying. This suggests that shopping with a convenience orientation may be accompanied by pleasure or arousal, and does not need to exclude

 

 

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hedonic outcomes. LaRose and Eastin (2002) found that deficient self-regulation was related to the amount of online shopping activity.

Channel knowledge

While there are a plethora of debates on whether customers know who they are paying or who provides products and services, it is interesting that a very limited amount of empirical research has been done on examining the impact of customers’ channel knowledge on the purchasing of travel products online. Because empirical research on channel knowledge, especially online channels, is quite limited, the author had to rely on a restricted number of previous studies of e-commerce. Li, Kuo and Russell (1999) found channel knowledge is the strongest predictor of online buying behavior, suggesting that knowledgeable customers tend to have more positive perceptions of the online channel’s utility and thus are more frequent web buyers.

Methodology

Data were collected at two large state universities in the southeastern region of the United States. Participants were screened if they had made an online reservation (e.g., air travel, lodging, cruise, and rental car) in the past six months, and then asked about their online booking experience. After removing influential points, 87 responses were retained for further analysis.

A battery of 28 items was generated based on the literature, encompassing four domains (convenience, recreational, self-regulation, channel knowledge). Respondents were asked to rate their level of agreement on 28 items in order to measure the perceptions about their online purchase experience. A seven-point Likert scale was used, ranging from strongly disagree (1) to strongly agree (7). The frequency of purchase was measure by a single item on a seven-point scale, ranging from never (1) to very often (7).

A principal component analysis (PCA) with varimax rotation was conducted. The Kalser-Meyer-Olkin (KMO) measure of sampling adequacy of the final model was 0.778, which verifies that factor analysis is appropriate for the data. The PCA generated four factors with an eigenvalue of above 1.0. Four factors accounted for about 66.4% of the total variances. The factors were labeled according to the items with higher loadings and common characteristics in each dimension, namely convenience, recreational, deficient self-regulation, and channel knowledge.

A multiple regression was used to examine the extent to which a factor contributed to the actual purchase of a tourism product. Retained factor scores for four domains were regressed on the frequency of online reservations. From Table 1, three independent variables report statistically significant results on the frequency of online reservation, which include convenience (b ¼ 0.237, p ¼ 0.014), recreational (b ¼ 0.304, p ¼ 0.002), and deficient self-regulation (b ¼ 0.324, p ¼ 0.001). Channel knowledge, however, showed a marginally significant influence on the dependent variable (b ¼ 0.180, p ¼ 0.061).

Conclusion and implications

The results of this study offer very interesting explanations of online booking behavior. First, the two dominant shopping orientation theories hold true in electronic shopping of tourism products. Secondly, the result implies a possible relationship between the customer’s channel knowledge and booking preference on the various booking websites.

 

 

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Anatolia – An International Journal of Tourism and Hospitality Research 123

Table 1. Results of multiple regression of factor scores on online reservation.

Standardized beta p-value

DV ¼ ‘how often did you make online reservation in the past six months?’

Convenience 0.237 0.014** Recreational 0.304 0.002** Deficient Self-regulation 0.324 0.001** Channel Knowledge 0.180 0.061*

R 2 ¼ 29%. * p , 0.10; ** p , 0.05; *** p , 0.001.

Future study should examine a direct linkage between recreational and convenience orientation with deficient self-regulation (Kim & LaRose, 2004), as well as a linkage between customers’ knowledge and perceived utility (conventional orientation). In addition, the result calls for a holistic path model for shopping orientation, self- regulation, channel knowledge, and its outcome of actual purchasing behavior, with consideration of demographic variables, such as income and age (Li et al., 1999).

References Anderson, T.W. (1971). Identifying the convenience-oriented consumer. Journal of Marketing

Research, 8, 179–183. Babin, B.J., Darden, W.R., & Griffin, M. (1994). Work and/or fun: measuring hedonic and utilitarian

shopping value. Journal of Consumer Research, 20, 644–656. Bellenger, D.N., & Korgaonkar, P.K. (1980). Profiling the recreational shopper. Journal of Retailing,

56, 77–92. Bellenger, D.N., Robertson, D.H., & Greenberg, B.A. (1977). Shopping center patronage motives.

Journal of Retailing, 53(Summer), 29–38. Brown, M., Pope, N., & Voges, K. (2003). Buying or browsing? An exploration of shopping

orientations and online purchase intention. European Journal of Marketing, 37, 1666–1684. Darian, J.C. (1987). In-home shopping: Are there consumer segments? Journal of Retailing, 63(3),

163–186. Donthu, N., & Garcia, A. (1999). The Internet shopper. Journal of Advertising Research, 39, 50–58. Girad, T., Silverblatt, R., & Korgaonkar, P. (2002). Influence of product class on preference for

shopping on the Internet. Journal of Computer Mediated Communication, 8(2). Hirschman, E.C. (1983). Predictors of self-projection, fantasy fulfillment and escapism. Journal of

Social Psychology, 120, 63–76. Holbrook, M.B. (1986). Emotion in the consumption experience: toward a new model of the human

consumer. In R.A. Peterson, et al., (Eds.), The role of affect in consumer behavior: Emerging theories and applications (pp. 17–52). Lexington, MA: Heath.

Holbrook, M.B., & Hirschman, E.C. (1982). The experiential aspects of consumption: Consumer fantasies, feelings, and fun. Journal of Consumer Research, 9, 132–140.

Jarvenpaa, S.L., & Todd, P.A. (1997). Consumer reactions to electronic shopping on the World Wide Web. Journal of Electronic Commerce, 1(2), 59–88.

Kang, B. (2005). Antecedents and consequences of electronic distribution channel strategies in the U.S. lodging industry: Operator’s perspectives. Dissertations Abstracts International, 66(11), 4105 A. (UMI No. 3194249).

Kim, J., & LaRose, R. (2004). Interactive e-commerce: promoting consumer efficiency or impulsivity? Journal of Computer Mediated Communication, 10(1). Retrieved October 17, 2006, from http://jcmc.indiana.edu/vol10/issue1/kim_larose.html

LaRose, R., & Eastin, M.S. (2002). Is online buying out of control? Electronic commerce and consumer self-regulation. Journal of Broadcasting and Electronic Media, 45, 549–564.

Li, H., Kuo, C., & Russel, M.G. (1999). The impact of perceived channel utilities, shopping orientations, and demographics one the consumer’s online buying behavior. Journal of

 

 

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Computer Mediated Communication, 5. Retrieved November 3, 2005, from http://jcmc.indiana. edu/vol5/issue2/hairong.html

McCune, J. (1999). Boom or burden? Management Review, 88, 53–57. PhoCusWright (2006). U.S. Online travel overview (6th edn.). Sherman, CT: PhoCusWright Inc. Rook, D.W. (1987). The buying impulse. Journal of Consumer Research, 14, 351–357. Schoenbachler, D.D., & Gordon, G.L. (2002). Multi-channel shopping: understanding what drives

channel choice. Journal of Consumer Marketing, 19(1), 42–53.

 

 

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Substantive Ethics

I found this article by Mark S. Blodgett to be quite refreshing and informative in terms of the new perspectives being presented. In the article, the issue being presented is the differences between ethics and law within corporate programs. It is an interesting issue that not many seem to think about when mentioning business rules and regulations. Moreover, ethics and law are typically viewed as two completely separate things, but the author digresses. Blodgett believes that in order to better integrate ethical codes and legal terms into a corporation, both entities should be viewed as one and the same. This is a fair point because as mentioned in the article, ethical codes are used by more than 90% of companies today, yet law has not really sunken into businesses as much as it should. Also, as mentioned in the text, legal obligations can be easily ignored by business executives simply because they are ignorant of the laws that are proposed. This is another huge factor as to why laws and ethics should be two sides of the same coin and not be viewed as differences.

It must be mentioned that I do agree with the author and what the articles findings suggested. Both legal and ethical approaches should be taken when considering corporations and businesses in order to integrate a more fluent and accommodable environment. Additionally, I can imagine this study was a long and difficult one as over twenty different compliance areas were assessed in order to compile an accurate study. Not only that, the term frequencies needed to be operationally defined correctly which is no easy feat.

Overall, I feel this study is a very helpful and useful one not only for corporate business, but for anyone in the workplace. Legal obligations must be enforced but at the same time ethical codes must be placed so that businesses may prosper in a healthy way.

Justice at the Millennium

This article by Colquitt et al. was very interesting and insightful on the topic of justice and fairness. Before reading this study, I did not even consider what defines justice or how fairness is accounted for. The authors are correct when stating that we only judge something as just based on past research and experiences and I found this quite interesting. Furthermore, the authors found research studies dating back to 1975 up to the date of publication in order to see just how much things have changed in terms of the workplace. When considering this, it was a great choice to conduct this study as a meta-analysis to see the key differences between older definitions of justice, and a modern take on the concept. Between all this time, lots of rules and regulations have been implemented into what defines justice and more specifically, into the workplace. This study mainly focuses on how justice today plays a role in an organizational point of view rather than a courtroom, which can relate to a lot more people. Rightfully so, the researchers proposed three important questions to take into consideration when analyzing all the different types of articles over the years.

Personally, I believe this meta-analysis is very important for anyone in the workplace because the questions posed by the researchers are prominent issues in today’s society. For instance, an employee may have more than one boss and those bosses may define fairness in differing ways. A study like this may help both bosses come to a happy medium and decide on whatever the employee has done as fair or not. Even more so, thousands of new individuals are entering the workforce every month and with increasing demand for jobs comes new accommodations for what defines as just. Again, I cannot stress enough how important this study is to those already in the workplace or to those who are looking to make a change into any work environment.

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