Consumer Online Search with Partially Revealed Information

Modern-day search platforms generally have two layers of information presentation. The outer layer displays the collection of search results with attributes selected by platforms, and consumers click on a product to reveal all its attributes in the inner layer. The information revealed in the outer layer affects the search costs and the probability of finding a match. To address the managerial question of optimal information layout, we create an information complexity measure of the outer layer, namely orderedness entropy, and study the consumer search process for information at the expense of time and cognitive costs. We first conduct online random experiments to show that consumers respond to and actively reduce cognitive cost for which our information complexity measure provides a representation. Then, using a unique and rich panel tracking consumer search behaviors at a large online travel agency (OTA), we specify a novel sequential search model that jointly describes the refinement search and product clicking decisions. We find that cognitive cost is a major component of search cost, while loading time cost has a much smaller share. By varying the information revealed in the outer layer, we propose information layouts that Pareto-improve both revenue and consumer welfare for our OTA. This paper was accepted by Juanjuan Zhang, marketing.

How do online hotel consumers perceive room rates?

While it has been perceived that hotel consumers using online travel agencies (OTAs) are overall price sensitive, a dominant use of OTAs in hotel booking suggests that there are more diverse consumers in terms of price perception. As such, this study investigates the price sensitivity of the Online Travel Agency (OTA) consumer segments, using price sensitivity measurement (PSM) by using factor analysis and cluster analysis. The results showed four OTA consumer segments, i.e., planned bargain seekers, enthusiastic shoppers, deal hunters, and apathetic shoppers. Differences in price sensitivity was confirmed among these segments. This study uncovers the characteristics of OTA consumers who are more (less) price sensitive. By using PSM, this study presents and compares the optimal pricing points across the customer segments in terms of monetary values. Based on the findings, this study provides theoretical and practical implications.

Research on the Influence of Emotional Intelligence and Emotional Labor on the Service Recovery Effect of Online Travel Agency

At present, online travel agency (OTA) service failure events emerge continually, which makes the OTA service operation mode face new challenges. This study uses the situational experiment method to explore the effects of OTA employees’ emotional intelligence and emotional labor (surface behavior and deep behavior) on the effect of service recovery. The results show that the emotional intelligence of OTA employees has a positive impact on the surface behavior and deep behavior; the emotional intelligence and deep behavior of employees have a significant positive impact on service recovery satisfaction, but the positive impact of employees’ surface behavior on service recovery satisfaction is not statistically significant; finally, service recovery satisfaction has a positive impact on customer loyalty. This study helps to better explain the mechanism of OTA service recovery effect and provides a theoretical reference for improving the service recovery effect of OTA.

WINNING TOURISM DIGITALIZATION OPPORTUNITY IN THE INDONESIA CBT BUSINESS

This research aims to examine the opportunities of Information Communication Technologies (ICT) and its use for the rural tourism businesses. The study used purposive random sampling of presence of tourist villages product in the Online Travel Agency (OTA) application in Indonesia. From the OTA, it can be seen the rural tourism destinations product related offerings suggestion. From the recommended destinations, assessment and comparison is made with the village’s official website and other online resources.Tourism villages and their market need to be met comprehensively understanding with OTA app developers to get better future business results.

The impact of positioning on click-through-rates in hotel metasearch engines

The recent arrival of the metasearch as a distribution channel within the hotel industry has the potential to provide hotels less dependency on online travel agencies. Metasearch engines display different reservation options for the same hotel in the same interface, which might include online travel agencies and the official hotel website, establishing an apparent level playing field. In this context, it remains unclear if there will be a presentation-order effect of the different options when price and cancellation policy are the same due to two reasons. First, hotels compete against popular and trustworthy online travel agencies. Second, the minimalist and functional design of metasearch platforms might help consumers differentiate among the options, possibly impacting the decision-making process. Accordingly, the present study aims at investigating the relationship between a hotel's site position and a higher click-through rate in a metasearch whilst competing directly and on the same page with a well-known online travel agency. To this end, an experiment was conducted in which participants had to finish the booking process for a given hotel on a major metasearch engine, where they could choose between the hotel's official site and a leading online travel agency. The main finding implies that occupying the top position increases the click-through rate for unknown hotels, whilst hotels associated with well-known chains are not subject to this effect.