Journal of Hospitality and Tourism Technology

Hotel website quality, perceived flow, customer satisfaction and purchase

intention
Faizan Ali
Article information:
To cite this document:
Faizan Ali , (2016),"Hotel website quality, perceived flow, customer satisfaction and purchase
intention", Journal of Hospitality and Tourism Technology, Vol. 7 Iss 2 pp. 213 - 228
Permanent link to this document:
http://dx.doi.org/10.1108/JHTT-02-2016-0010
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

Downloaded on: 21 October 2016, At: 22:53 (PT)

References: this document contains references to 51 other documents.
To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 861 times since 2016*
Users who downloaded this article also downloaded:
(2015),"Brand personality and purchase intention", European Business Review, Vol. 27 Iss 5 pp.
462-476 http://dx.doi.org/10.1108/EBR-03-2013-0046
(2013),"Determinants of customers' online purchase intention: an empirical study in India", Journal of
Indian Business Research, Vol. 5 Iss 1 pp. 17-32 http://dx.doi.org/10.1108/17554191311303367

Access to this document was granted through an Emerald subscription provided by emerald-
srm:394461 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald
for Authors service information about how to choose which publication to write for and submission
guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as
well as providing an extensive range of online products and additional customer resources and
services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the
Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for
digital archive preservation.

*Related content and download information correct at time of download.

 The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1757-9880.htm

Hotel website quality, perceived Hotel website

quality
flow, customer satisfaction and
purchase intention
Faizan Ali 213
College of Hospitality and Tourism Leadership,
Received 25 February 2016
University of South Florida – Sarasota-Manatee, Sarasota, Revised 13 March 2016
Florida, USA Accepted 13 March 2016
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

Abstract
Purpose – This study aims to examine the relationships between hotel website quality, perceived
flow, customer satisfaction and purchase intentions. Furthermore, this study also examines if perceived
flow mediates the relationships between hotel website quality, customer satisfaction and purchase
intentions.
Design/methodology/approach – The stimulus-organism-response framework is used as the
theoretical framework for this study. A total of 441 valid online questionnaires were collected to
empirically test the measurement and structural model using partial least square path modeling
approach. The study sample includes hotel guests who booked their hotels via online travel agencies
and/or hotel websites.
Findings – The findings confirm that hotel website quality influences customers’ perceived flow,
which in turn, influences their satisfaction and purchase intention. Moreover, perceived flow also
mediates the relationships between hotel website quality, customer satisfaction and purchase
intentions.
Originality/value – Hotel website quality, perceived flow, customer satisfaction and purchase
intentions altogether are not well understood in current literature despite the important implication for
managers, academicians and consumers alike. This study contributes to the field of e-commerce
marketing, retailing and e-tourism research.
Keywords Customer satisfaction, PLS-SEM, Purchase intentions, Hotel website quality,
Perceived flow
Paper type Research paper

1. Introduction
Since few decades, information technology is playing a significant role in transforming
and developing the hospitality and tourism industry (Collins et al., 2013; Wang et al.,
2015). Explicitly, as a powerful marketing and operational tool, internet has
revolutionized the business operations by providing extraordinary opportunities for the
service providers and consumers in this industry (Amaro and Duarte, 2015). Hotels have
traditionally been dependent on intermediates (e.g. travel agents) to spread information
and sell their products. However, emergence of e-commerce websites has developed a Journal of Hospitality and
Tourism Technology
new and potentially powerful communication and distribution channel for hotels, Vol. 7 No. 2, 2016
pp. 213-228
decreasing the gap between them and consumers (Ponte et al., 2015). Despite the wide © Emerald Group Publishing Limited
1757-9880
recognition of the compatibility between the internet and the hotel industry, hotels need DOI 10.1108/JHTT-02-2016-0010
 JHTT to understand the importance of website quality and other such variables that may
7,2 shape the behavior of their customers (Hsu et al., 2012).
Numerous scholars have proposed the positive influence of website quality on
customer satisfaction, leading to purchase intentions (Bai et al., 2008; Chen and Cheng,
2009; Wang et al., 2015). Hence, this study focuses on further understanding of the
associations among website quality and other variables that determine customer
214 satisfaction and purchase intentions. In line with this aim, this study introduces
perceived flow as a mediator to check its combined effect on customer satisfaction and
purchase intentions on hotel websites. Taking customer’s perceived flow into account is
important because flow is customers’ consciousness state when they are totally involved
in an activity (Pace, 2004); Web surfing being one of these activities (Hsu et al., 2012).
The concept of flow refers to the experiences where customers are engaged in activity
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

with concertation and develop a feeling of time distortion during their engagement
(Chen et al., 1999). Hence, if using hotel websites can develop a state of flow in customers,
they should be satisfied and inclined to continue visiting these websites. A number of
scholars have discussed the usefulness of flow in predicting human behavior in online
environments (Novak et al., 2003; Thatcher et al., 2008). Therefore, it is assumed that
considering perceived flow along with the website quality can be useful to predict
customer satisfaction and purchase intentions on hotel websites.
Although some scholars have discussed the determinants of customer satisfaction
and purchase intentions in online environments, the interrelationships between a
comprehensive model of website quality, perceived flow, customer satisfaction and
purchase intentions on hotel websites have not yet been investigated. Hence, in line with
the preceding discussion, this study aims to understand the effect of website quality and
perceived flow toward customer satisfaction and purchase intentions on hotel websites,
using stimulus-organism-response (S-O-R) framework as the theoretical base. The
remainder of this paper is structured as follows. The next section presents the review of
the literature and hypotheses. Following that, the methodology used for sample
selection and data collection is discussed. Then, data analysis and results are examined.
Finally, the paper ends with a discussion of research findings, future research and
concluding remarks.

2. Literature review
2.1 Stimulus-organism-response framework
The S-O-R framework proposes that stimulus (s) is a trigger that causes changes to
individuals’ internal/organismic states (O), resulting in their approach or avoidance
responses (R) (Mehrabian and Russell, 1974). As per Donovan and Rossiter (1982, p. 36),
the S-O-R framework is a “parsimonious description of environments, intervening
variables and behaviors” and that is why it has been recently studied in a number of
studies within the hospitality industry (Ali et al., 2015; Hsu et al., 2012). Based on the
S-O-R framework, a research model is developed for this study (Figure 1). As discussed
by Hsu et al. (2012), website quality can be regarded as the stimulus. In the context of
online hotel websites, website quality can be assumed as a stimulus (Bai et al., 2008) that
can influence customers’ internal/psychological states such as perceived flow (Webster
et al., 1993). Hence, as shown in Figure 1, hotel websites (stimulus) can impact
customers’ perceived flow (organism) which can ultimately influence customers’
 Hotel website
quality

215

Figure 1.
Research framework
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

satisfaction and purchase intention customer satisfaction and purchase intentions on

hotel websites (response).

2.2 Hotel website quality

Website quality has gained great attention from academic and practitioners equally
because of its vital role in developing customers’ purchase intentions. Jeong et al. (2003,
p. 162) defined website quality as the “overall excellence or effectiveness of a [website] in
delivering intended messages to its audience and viewers”. However, Chang and Chen
(2008) criticized this definition of overlooking the significance of customer needs and
defined it as, “users’ evaluation of whether a web site’s features meet users’ needs and
reflect the overall excellence of the web site” (p. 821). This study also adopts Chang
and Chen’s (2008) definition and supports the notion of focusing on consumers’ perceptions.
Some of the scholars such as Jarvenpaa et al. (2000) and Wang et al. (2015) compared website
as an online store of the company/service provider where users need to rely on websites’
attributes to reach a purchase decision. Hence, to apply a successful e-strategy and attract
and retain customers, companies need to understand customers’ perceptions of the most
important website attributes (Hernandez et al., 2009; Van Riel et al., 2004).
A number of scholars have proposed different dimensions to measure website
quality (Chang and Chen, 2008; Hernandez et al., 2009; Wang et al., 2015). Moreover, Ahn
et al. (2007) stated that website quality is a complex multi-dimensional construct,
proposed to assess websites’ design. In this regard, Au Yeung and Law (2004) indicated
that website design encompasses to its usability and functionality. This is in line with
the review of website quality-related literature from 1992 to 2007 conducted by
Hernandez et al. (2009), stating that quality of information, system and ease of use are
important aspects of website design. Au Yeung and Law (2004) define functionality as,
“the degree of information pro-vision about the website’s services/products” and
usability as “to what extent a website is efficient and enjoyable for its products/services
being promoted” (p. 309). However, Pavlou et al. (2007) emphasized on the importance of
privacy and security to avoid uncertainty in online transactions. Wang et al., (2015) also
supported this argument and proposed a three-dimensional structure comprising hotel
website usability, hotel website functionality and hotel website security and privacy to
assess Chinese travelers’ perceptions. Hence, emphasizing the increasing importance of
usability, functionality and security/privacy in the context of hotel websites, this study
 JHTT validates the scale proposed by Wang et al. (2015) and considers website quality as a
7,2 multi-dimensional construct comprising three dimensions, i.e. hotel website usability,
hotel website functionality and hotel website security and privacy.

2.3 Perceived flow

The concept of flow was introduced as a cognitive state by Csikszentmihalyi (1975)
216 defining it as, “the holistic experience that people feel when they act with total
involvement” (p. 36). Gao and Bai (2014) stated that people in flow state become entirely
involved in a specific activity, losing their self-consciousness and control of their
environment. Therefore, flow has attained increased attention and has been used as a
base to develop compelling experiences (Ding et al., 2009). Chen et al., (1999) discussed
that the use of internet can facilitate the occurrence of flow, which is a significant
construct to describe and explain human– computer interactions (Gao and Bai, 2014).
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

Specifically, usage of internet facilitates a potential access into the flow state (Hsu et al.,
2012). It has been applied in various online environments such as online banking online
games, mobile instant messaging and online travel agencies (Gao and Bai, 2014), where
consumers are involved in an activity as to develop a pleasurable experience (Wang and
Hsiao, 2012). Nonetheless, Novak et al. (2003) applied the concept of flow to
computer-mediated environments and proposed it as a cognitive state which is an
optimal experience and intrinsically enjoyable. Consequently, success of online
marketers is dependent on their ability to develop experiences for consumers to
experience to flow. Accordingly, Mathwick and Rigdon (2004) stated that a flow
experience positively influences consumers’ attitude and intentions (revisit and
spending more time) towards the website. In the context of hotel websites, where most
customers use these websites to seek information and book/purchase hotel stays, some
of them visit these websites to enjoy and browse through videos and pictures of hotel
establishment and read customers’ feedbacks (Gao and Bai, 2014). Hence, hotel websites
include utilitarian and hedonic attributes. This study adopts Gao and Bai’s (2014)
definition of flow, which is “a temporarily unaware experience, where an individual
engages in an online travel-related activity in a travel website with total concentration,
control, and enjoyment” (p. 655).
While perceived flow and its effects on consumption-related behavior have gained
increased attention of academics, little attention has been paid to its role in the domain
of hotels’ websites. Moreover, the influence of hotel website quality on consumers’
perceived flow has rarely been studied. To the best of our knowledge, there are no
studies that analyze the effect of hotel website quality on the consumers’ perceived flow.

2.4 Satisfaction and purchase intentions

Service providers in every industry strive for customer satisfaction because of its
impact on their performance and profits (Ryu et al., 2012). Consequently, it has
attracted great importance from academicians and practitioners. Oliver (1997, (p. 13)
considered satisfaction as consumer’s fulfillment response and defined it as, “the
summary psychological state resulting when the emotion surrounding disconfirmed
expectations is coupled with a consumer’s prior feelings about the consumer
experience”. In another study, Anderson and Srinivasan (2003, p. 125) postulated
that “satisfaction may be best understood as an ongoing evaluation of the surprise
inherent in a product acquisition and/or consumption experience”. In the same line,
 Oliver (1997, p. 13) also explained customer satisfaction as “a judgment that a Hotel website
product, or service feature, or the product or service itself, provides a pleasurable quality
level of consumption–related fulfillment, including levels of under or over
fulfilment”. In the context of human– computer interactions, satisfaction proved to
be a major determinant of positive behavioral intentions, e.g. repurchase intentions,
eWOM and long-term loyalty (Anderson and Srinivasan, 2003; Hsu et al., 2012).
Hence, customer satisfaction is a well-studied concept, and numerous scholars have 217
emphasized on understanding its determinants and consequences.
In addition to satisfaction, customers’ purchase intentions have also been widely
debated in the literature (Ali et al., 2015; Ryu et al., 2012) because it is a significant
dimension of behavioral intentions (Zeithaml et al., 2006) and is substantial to
understand actual purchase behavior (Hsu et al., 2012; Wang et al., 2015). Moreover,
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

ease in collecting data on purchase intentions as compared to that on actual behavior

is also a reason for its wide application in hospitality and tourism research (Buttle
and Bok, 1996). Moreover, Zeithaml et al. (2006) stated that a large amount of
literature on purchase intentions in offline environments is available. However, the
progress of internet has not only transformed it into an important distribution
channel for selling firms’ products and services, but also changed consumers’
buying behavior and decision-making (Wang et al., 2015). In this regard, Hsu et al.
(2012) stated that frameworks to understand purchase intentions in offline channels
can largely be applied to discussions in online channels. For this study, online
purchase intentions is considered as an important outcome variable and is defined
as consumers’ willingness and intention to participate in an online deal based on
their evaluation of website quality and information.

2.5 Hypotheses development

Website is the main communication channel between service providers and
consumers. A high-quality website can result in satisfied customers and help turn
Web browsers into buyers (Wang et al., 2015). Hence, website quality has become an
important topic within computer– human interaction studies. A number of scholars
have proposed different dimensions to measure website quality including
information quality, system quality, ease of use, privacy, service quality and
responsiveness, etc. (Chang and Chen, 2008; Hernandez et al., 2009; Wang et al.,
2015). However, recently, Wang et al. (2015) proposed website usability, website
functionality and website security and privacy to assess customers’ perceived
website quality. A number of scholars have argued that perceived website quality
can positively influence a consumer’s emotional states such as enjoyment and
anxiety (Forgas et al., 2012). However, there are very few studies focusing on the
relationship between website quality and consumers’ perceived flow. Recently, Hsu
et al. (2012) observed a significant relationship between various components of
website quality (information quality, system quality and service quality) and users’
flow experience. The relationship between these three components of website
quality and consumers’ perceived flow has also been supported by Zhou et al. (2010).
Hence, this study also proposes that consumers’ positive perceptions toward
website quality, as a whole, will result in their involvement in the website.
Consequently, to achieve consumers’ flow experience, hotels should develop
 JHTT customers’ positive perceptions toward their website quality. Based on these
7,2 arguments, the following hypothesis is developed;
H1. Hotel website quality has a significantly positive influence on perceived flow.
As per Gao and Bai (2014), limited attention has been paid to understand the
relationship between perceived flow and satisfaction in the context of online
218 shopping. Some of the recent scholars have looked on to the indirect linkage between
flow experience and customer satisfaction. For instance, flow experience was proved
to improve consumers’ perceptions toward the website leading to consumer
satisfaction (O’Cass and Carlson, 2010). Moreover, numerous studies have focused
on the consequences of perceived flow in computer-mediated environments, i.e.
attracting consumers, mitigating price sensitivity, positively influencing attitudes
of the focal website and the focal firm and intention to revisit and spend more time
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

on the website (Kabadayi and Gupta, 2005; Mathwick and Rigdon, 2004; Novak et al.,
2003). As per Hsu et al. (2012), consumers who perceive to get into flow state during
Web browsing are more likely to be satisfied and generate transaction intentions.
Hence, the following hypotheses are proposed:
H2. Perceived flow has a significantly positive influence on customer satisfaction.
H3. Perceived flow has a significantly positive influence on purchase intentions.
Oliver (1997) considered customer satisfaction as judgment toward a product,
service feature or the product or service itself based on evaluation of their
interaction experiences. Gopalakishna and Mummalaneni (1993) stated that
customer satisfaction is not an end, rather a means to an end, including customer
purchase intentions and loyalty. The relationship between customer satisfaction
and intentions has received considerable attention in various offline context of
hospitality and tourism literature including wine tourism, hotels, restaurants and
cruise ships, etc. (Ali et al., 2015; Ryu et al., 2012) as well as online context (Hsu et al.,
2012; Kabadayi and Gupta, 2005; Mathwick and Rigdon, 2004; Novak et al., 2003;
Wang et al., 2015). Online purchase intention is a consumer’s willingness to perform
specified purchasing behavior via Internet (Hsu et al., 2012). Numerous scholars
have discussed that online consumers who have satisfactory experiences on a
website are more likely to have increased online purchase intentions (Anderson and
Srinivasan, 2003; Bai et al., 2008; Wang et al., 2015). Hence, based on these
arguments, the following hypothesis is developed:
H4. Customer satisfaction has a significantly positive influence on purchase
intentions.

3. Research method
To empirically test the proposed model (Figure 1) and test the hypothesis, a
quantitative research method was adopted. A cross-sectional data collection
approach using online questionnaire was used to empirically test the structural
relationships between reflective latent constructs. To capture the information
regarding hotel website quality, perceived flow, customer satisfaction and purchase
intentions, a questionnaire was designed in three main sections. The first section
involved a screening question to ensure that respondents had experience of booking
 via hotel website during the past three months. Hence, the sample for this study only Hotel website
includes those experienced consumers who had experience with online hotel quality
bookings. The second section of questionnaire was designed to capture information
regarding respondents demographic characteristic such as age, gender, income,
marital status, etc. Table I depicts the demographic profile of respondents. The third
part of questionnaire included questions to assess respondents’ perceptions about
main constructs of this study. Hotel website quality was measured using three 219
dimensions including hotel website usability, hotel website functionality and
security and privacy, operationalized with six, five and three items, respectively
(Wang et al., 2015). Perceived flow was operationalized using three items (Hsu et al.,
2012; Novak et al., 2003), whereas satisfaction and purchase intentions were
operationalized using three items each (Chen and Barnes, 2007). Five-point Likert
scale ranging from strongly disagree (1) to strongly agree (5) was used for all the
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

questions.
Prior to main data collection, a pre-test (N ⫽ 25) and pilot test (N ⫽ 92) were
conducted. Based on the results, only few modifications were made to the original

Demographic
characteristics Percentage (%)

Gender
Male 56
Female 44
Age
18-25 years old 22
26-35 years old 37
36-45 years old 21
Over 45 years old 20
Education
High school or below 5
College 43
Graduate school or above 52
Monthly income (USD - $)
Below 2000 11
2001 – 4000 35
4001 – 6000 41
Over 6000 13
Marital status
Single 39
Married/partnership 56
Widowed/divorced 5
Degree of internet
experience
0-3 years 13 Table I.
4-6 years 35 Demographic profile
More than 6 years 52 of respondents
 JHTT statements used in the questionnaire. Data were collected by conducting a
7,2 Web-based survey during October-November, 2015. Access services to a panel of
general population of hotel guests were taken from a reputable consumer panel
company having a panel size of more than 1 million. An invitation link to the survey
was sent to a total of 3,500 potential respondents, of which 376 followed the
invitation link. Additionally, the message was also subsequently repeatedly posted
220 on various online discussions boards to encourage more responses. From both these
sources, a total of 494 responses were received. On filtering and removing the
records containing systematic missing values, a total of 441 respondents were
retained and used for data analysis.
Once finalized, the data set was subjected to a nonresponse bias analysis using
wave analysis. Responses that were collected in the first two weeks were grouped as
early responses, whereas responses that were collected in the last two weeks were
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

grouped as late responses. An independent t-test was conducted, which revealed no

significant difference between the two groups (i.e. early responses and late
responses). Based on this, it was concluded that the sample did not suffer from
nonresponse bias.

3.1 Missing values treatment

Little (1988, p. 287) stated that “missing data is a pervasive problem in sample surveys”;
hence, it may cause a problem in multivariate analysis. Moreover, effectively treating
the missing value remain a challenge for researchers in social science like marketing,
tourism and hospitality researchers (Rezaei et al., 2016). Among various missing value
remedies, multiple imputation is considered as an effective and reliable method. Hence,
to effectively impute and handle missing values for this study, expectation
maximization algorithm was performed. Little’s missing completely at random (MCAR)
␹2 statistic was attained, indicating that missing data are at random and are not a
serious threat to the dataset (Little’s MCAR test: chi-square ⫽ 458.572, df ⫽ 412,
significance ⫽ 0.329).

3.2 Common method variance

Common method variance (CMV) or common method bias is a common issue in
quantitative research and other self-report surveys. It occurs when the data were
collected from a single source. Following the recommendations by Podsakoff et al.
(2003), this study addressed CMV issue by using Harman’s one-factor test.
Consequently, our statistical results demonstrated that CMV is not an issue in this
study.

3.3 Analytical methods

For this study, statistical analysis and hypotheses were tested using structural
equation modeling by performing partial least squares (PLS) analysis. To conduct
the analysis, SmartPLS software, version 3.0, was used. Despite criticism, PLS is a
well-established technique for estimating path coefficients in structural models, and
it has become increasingly popular in hospitality research recently (Ali and Kim,
2015). This is due to its ability to model latent constructs under conditions of
non-normality and small to medium sample sizes (Hair et al., 2013). PLS algorithms
were run to determine the significance levels of the loadings, weights and path coefficients,
followed by bootstrapping (5000 re-sample), to determine the significance levels of the
 proposed hypotheses. Following the procedure suggested by Anderson and Gerbing (1988), Hotel website
the validity of the measurement model was estimated before testing the structural quality
relationships outlined in the structural model.

4. Findings and analysis

4.1 Measurement model
First, the measurement model was tested for convergent validity. This was assessed 221
through factor loadings, composite reliability (CR) and average variance extracted
(AVE) (Hair et al., 2013). With a few exceptions, all item loadings exceeded the
recommended value of 0.7 as shown in Table II (Hair et al., 2013). However, these
items were retained because of the valid values for CR and AVE. CR values, which
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

Constructs and items Loadings AVE CR

Hotel website usability 0.706 0.935

Clear language 0.737
Easily understandable information 0.865
User-friendly layout 0.819
Well-organized information 0.816
Graphics matched with texts 0.905
Simple website navigations (e.g. menu or site map) 0.887
Hotel website functionality 0.521 0.844
Hotel reservation information 0.769
Hotel facilities information 0.659
Information of promotions/special offers 0.754
Price information of hotel rooms 0.739
Information of destination where hotel is located 0.681
Hotel website security and privacy 0.645 0.845
Privacy policy relating to customers’ personal data 0.783
Information of secured online payment system 0.788
Information of third-party recognition 0.837
Perceived flow 0.806 0.926
I felt totally captivated while browsing hotel’s website 0.915
Time seemed to pass very quickly while navigating hotel’s website 0.938
Nothing seemed to matter to me while browsing hotel’s website 0.837
Customer satisfaction 0.860 0.949
I am very satisfied with the information I receive from hotels’
website 0.923
I have a positive attitude toward hotels’ website surfing. 0.934
My interaction with the hotels’ website is very satisfying. 0.926
Purchase intentions 0.830 0.936
It is likely that I will transact with hotels’ website in the future 0.928
Given the chance, I intend to use hotels’ website. 0.927
Given the chance, I predict that I should use hotels’ website in the Table II.
future 0.877 Validity and
reliability of the
Note: Italic data signify constructs constructs
 JHTT depict the degree to which the construct indicators indicate the latent construct,
7,2 exceeded the recommended value of 0.7 (Hair et al., 2013). AVE, which reflects the
overall amount of variance in the indicators accounted for by the latent construct,
exceeded the recommended value of 0.5 (Hair et al., 2013).
Next, the discriminant validity was assessed. Table III shows that the square root
of each AVE (shown on the diagonal) is greater than the related inter-construct
222 correlations in the construct correlation matrix, indicating adequate discriminant
validity for all of the reflective constructs. In addition, Table III also presents the
recently introduced heterotrait–monotrait (HTMT) ratio of correlations (Henseler
et al., 2015) as a better means to assess the discriminant validity. If the HTMT value
is greater than HTMT0.85 value of 0.85 (Kline, 2011), there is a problem of
discriminant validity. As shown in Table III, all the values passed the HTMT0.85,
indicating that discriminant validity is not an issue.
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

Table IV shows the weights of the first-order constructs on the designated

second-order construct, indicating that hotel website quality is a second-order factor
with three significant first-order dimensions including hotel website usability, hotel
website functionality and hotel website security and privacy.

4.2 Structural model

SmartPLS version 3.0 was used to test the structural model and hypotheses. A
bootstrapping procedure with 5,000 iterations was performed to examine the statistical

PF SP PI SAT HWF HWU

Fornell and Larcker’s (1981)

Procedure
Perceived flow 0.898
Hotel website security and privacy 0.398 0.803
Purchase intentions 0.498 0.371 0.910
Satisfaction 0.407 0.479 0.517 0.927
Hotel website functionality 0.471 0.426 0.453 0.423 0.721
Hotel website usability 0.394 0.499 0.434 0.682 0.381 0.839
Heterotrait-monotrait (HTMT)
Perceived flow
Hotel website security and privacy 0.640
Purchase intentions 0.721 0.839
Satisfaction 0.824 0.548 0.540
Table III. Hotel website functionality 0.616 0.612 0.691 0.681
Discriminant validity Hotel website usability 0.527 0.433 0.501 0.415 0.334

Second-order constructs First-order constructs Weight t-value

Table IV.
Weights of the first Hotel website quality Hotel website usability 0.891 77.170**
order constructs on Hotel website functionality 0.703 21.709**
the designated Hotel website security and privacy 0.732 31.833**
second-order
constructs Note: Critical t-values. **2.58 (P ⬍ 0.01)
 significance of the path coefficients (Chin et al., 2008). As PLS does not generate overall Hotel website
goodness-of-fit indices (GoF), a diagnostic tool, can be applied. The reported cutoff quality
values for assessing the results of the GoF analysis include GoFsmall ⫽ 0.1; GoFmedium ⫽
0.25; and GoFlarge ⫽ 0.36. For the model used in this study, a GoF value of 0.485 was
calculated, indicating a very good model fit. However, it is noteworthy that GoF is not a
validity tool; it is a diagnostic tool to indicate how well the collected data fit the proposed
model (Henseler et al., 2015). Recently, Henseler et al. (2016) recommended to apply the 223
standardized root mean square residual (SRMR) as the only approximate model fit
criterion. A value of 0 for SRMR would indicate a perfect fit and generally, an SRMR
value less than 0.08 is recommended to be adequate for PLS path models. For this study,
the SRMR ⫽ 0.062 was observed, indicating an adequate model fit. Moreover, results of
the hypotheses testing are shown in Figure 2. The corrected R2values refer to the
explanatory power of the predictor variables on the respective construct. Hotel website
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

quality predicts 27.0 per cent of the perceived flow (R2 ⫽ 0.270). Moreover, perceived
flow predicts 16.6 per cent of customer satisfaction (R2 ⫽ 0.166), and both perceived flow
and customer satisfaction predict 36.6 per cent of purchase intentions (R2 ⫽ 0.366). In
regard to model validity, Chin et al. (2008) classify the endogenous latent variables as
substantial, moderate or weak based on the R2 values of 0.67, 0.33 or 0.19, respectively.
Accordingly, perceived flow (R2 ⫽ 0.270), customer satisfaction (R2 ⫽ 0.166) and
purchase intentions (R2 ⫽ 0.366) can be described as substantial, weak and substantial,
respectively.
The complete results of the structural model and hypotheses testing are presented in
Table V. The analytical results indicate that perceptions of website quality (i.e. website

Figure 2.
Structural model

Hypotheses Beta t-value Decision

H1: Hotel website quality ¡ Perceived flow 0.519 14.824* Supported

H2: Perceived flow ¡ Customer satisfaction 0.407 9.584* Supported
H3: Perceived flow ¡ Purchase intentions 0.345 6.256* Supported
H4: Customer satisfaction ¡ Purchase intentions 0.376 7.771* Supported Table V.
Structural estimates
Note: Critical t-values. *2.58 (P ⬍ 0.01) (Hypotheses testing)
 JHTT usability, functionality and privacy and security) influence customers’ perceived flow
7,2 and, in turn, their satisfaction and purchase intentions positively and significantly.
These results help accept all the proposed hypotheses. This study confirms that website
quality contributes customers’ perceived flow and, in turn, influences their satisfaction
and purchase intention. As shown in Table V, the magnitude of effects between all the
variables is very strong. It indicates that hotel website quality exerts a very strong effect
224 on customers’ perceptions, implying that an excellent website quality may demonstrate
to be significant in rousing high perceived flow in customers and increasing their
satisfaction and purchase intentions. For example, the relationships between hotel
website quality, perceived flow, customer satisfaction and purchase intention indicate
that customers who experience excellent website quality are more likely to perceive flow
and in turn more likely to feel satisfied and purchase from that specific hotel website.
Thus, it is essential to provide well-perceived website quality by ensuring website
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

usability, functionality and privacy and security to satisfy their customers and enhance
purchase intention toward a specific hotel.

5. Conclusion and implications

Hawk Partners (2012) interviewed 20 leisure and business travelers and concluded that
hotel websites as the most often cited source among all online channels for travelers
researching and booking rooms. As an increasingly important distribution channel,
effective hotel websites are offering unparalleled benefits to hotels (Hsu et al., 2012).
Hotel websites have shaped into a communication channel that can be conveniently
used by the customers to acquire information and benefit from real-time transactions
(Amaro and Duarte, 2015). Moreover, the two-way communication on the hotel websites
also develops a suitable environment to foster customer relationships management,
resulting in customer satisfaction and positive behavioral intentions (Ponte et al., 2015).
A number of scholars have used these arguments to assess the features and contents of
hotel websites. However, little research has been carried out to assess features of hotel
websites from the perspective of service quality and how it affects customers’
perceptions and behavior. The current study intends to fill this research gap by
conducting an empirical study and examining the interrelationships between hotel
website quality, perceived flow, customer satisfaction and purchase intentions.
Findings from this study explicate a number of significant issues related to website
quality and its effects on customer perceptions and behaviors. Empirical findings of this
study validate that hotel website quality is a second-order complex construct with three
primary dimensions including hotel website usability, hotel website functionality and
hotel website security and privacy. These findings are in line with the studies conducted
by Bai et al. (2008) and Wang et al. (2015) where system quality, information quality and
security and privacy were observed to have significant determinants of customers’
perceptions and behavior. As such this study highlights that in the context of online
hotel websites, system quality, information quality and security and privacy are all
influential factors to develop customers’ perceived flow, resulting in customer
satisfaction and purchase intentions. Hence, hotel managers need to develop better
navigational structure of their websites to ensure better website usability which may
result in customers getting into their state of flow. Moreover, website functionality also
proved to be a significant dimension of hotel website quality. In the context of online
purchasing, these dimensions play an important role where customers do not have a
 levy of physically inspecting the items for sale and they mainly depend on the detail and Hotel website
clarity of the information to make purchase decisions. Hence, hotel managers should quality
devote more resources to provide complete, accurate and up-to-date information on their
official websites to enhance customers’ involvement in the website. Lastly, this study
also validated the significance of privacy and security as a significant dimension of hotel
website quality. This is in line with the recent literature related to the evolution of
website development, where Wang et al. (2015) stated that hotel websites are no more 225
communication channels; rather, these websites offer tools for capturing customers’
data and real-time transactions. Hence, components of privacy and security must be
reinforced by hotel managers.
As consumers become more technologically savvy, they partake more in online
purchase and have higher requirements for hotels’ online presence. Therefore, to capture
the lucrative online business, hotel managers should allocate more resources to develop
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

websites into multifunctional platforms that would meet consumer needs for
information, design and relationship (Hsu et al., 2012). Overall, findings of this study
related to dimensions of hotel website quality are important for hotel managers as they
decide the allocation of resources. Evolution of internet and e-commerce pose distinct
challenges for hotels such as customers’ heavy reliance on online channels and reviews
posted by existing customers, etc. Hence, provision of higher quality can act as a critical
success factor for customers’ purchase intentions. These days having a website is
integral for hotels where quality provided on their websites can be trickled down and
summed up to the overall service quality provided by the hotel. Hence, hotel managers
should leverage the offer of website quality to generate customers’ favorable feeling. It
implies that customers with perceived flow toward a hotel’s website will tend to have
higher satisfaction and positive purchase intentions.
It should be noted that, although the results of the current study shed light on several
important issues, some limitations need to be considered in future research. First, this
study used three dimensions to operationalize the concept of website quality including
hotel website usability, hotel website functionality and hotel website security and
privacy. However, there are a few more important conceptualizations related to website
quality in the literature such as information, system and service quality, etc. Further
studies may incorporate these concepts to operationalize hotel website quality. In
addition, this study used three items to measure the concept of perceived flow, which has
been conceptualized as a multi-dimensional construct in the literature too. This issue
may also be addressed in future studies. Lastly, future studies may include various
emotional components such as perceived excitement, delight or enjoyment in the
proposed model to see their effect on customers’ satisfaction and purchase intentions.

References
Ahn, T., Ryu, S. and Han, I. (2007), “The impact of web quality and playfulness on user acceptance
of online retailing”, Information Management, Vol. 44 No. 3, pp. 263-275.
Ali, F., Amin, M. and Ryu, K. (2015), “The role of physical environment, price perceptions, and
consumption emotions in developing customer satisfaction in Chinese resort hotels”,
Journal of Quality Assurance in Hospitality & Tourism, Vol. 17 No. 1, pp. 45-70.
Ali, F. and Kim, W.G. (2015), “A comparative study of CB-SEM and PLS-SEM for theory
development in hospitality research”, 3rd World Research Summit for Tourism and
Hospitality, Orlando, FL.
 JHTT Amaro, S. and Duarte, P. (2015), “An integrative model of consumers’ intentions to purchase travel
online”, Tourism Management, Vol. 46, pp. 64-79.
7,2
Anderson, J. and Gerbing, D. (1988), “Structural modeling in practice: a review and recommended
two-step approach”, Psychological Bulletin, Vol. 103 No. 3, pp. 411-423.
Anderson, R.E. and Srinivasan, S.S. (2003), “E-satisfaction and e-loyalty: a contingent
framework”, Psychology & Marketing, Vol. 20 No. 2, pp. 123-138.
226 Au Yeung, T. and Law, R. (2004), “Extending the modified heuristic usability evaluationtechnique
to chain and independent hotel websites”, International Journal of Hospitality Management,
Vol. 23 No. 3, pp. 307-313.
Bai, B., Law, R. and Wen, I. (2008), “The impact of website quality on customer satisfaction and
purchase intentions: evidence from Chinese online visitors”, International Journal of
Hospitality Management, Vol. 27 No. 3, pp. 391-402.
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

Buttle, F. and Bok, B. (1996), “Hotel marketing strategy and the theory of reasoned action”,
International Journal of Contemporary Hospitality Management, Vol. 8 No. 3, pp. 5-10.
Chang, H.H. and Chen, S.W. (2008), “The impact of online store environment cues on purchase
intention: trust and perceived risk as a mediator”, Online Information Review, Vol. 32 No. 6,
pp. 818-841.
Chen, C.W.D. and Cheng, C.Y.J. (2009), “Understanding consumer intention in online shopping: a
respecification and validation of the DeLone and McLean model”, Behaviour & Information
Technology, Vol. 28 No. 4, pp. 335-345.
Chen, H., Wigand, R.T. and Nilan, M.S. (1999), “Optimal experience of web activities”, Computers
& Human Behaviour, Vol. 15 No. 5, pp. 585-608.
Chen, Y.H. and Barnes, S. (2007), “Initial trust and online buyer behaviour”, Industrial
Management & Data Systems, Vol. 107 No. 1, pp. 21-36.
Chin, W.W., Peterson, R.A. and Brown, P.S. (2008), “Structural equation modelling in marketing:
some practical reminders”, Journal of Marketing Theory and Practice, Vol. 16 No. 4,
pp. 287-298.
Collins, G., Cobanoglu, C. and Bilgihan, A. (2013), Hospitality Information Technology: Learning
How to Use It, Kendall Hunt Publishing, Dubuque, IA.
Csikszentmihalyi, M. (1975), Beyond Boredom and Anxiety, Jossey-Bass, San Francisco, CA.
Ding, D.X., Hu, P.J., Verma, R. and Wardell, D.G. (2009), “The impact of service design and flow
experience on customer satisfaction in online financial services”, Journal of Service
Research, Vol. 13 No. 1, pp. 96-110.
Donovan, R.J. and Rossiter, J.R. (1982), “Store atmosphere: an environmental psychology
approach”, Journal of Retailing, Vol. 58 No. 1, pp. 34-57.
Forgas, S., Palau, R., Sánchez, J. and Huertas-García, R. (2012), “Online drivers and offline
influences related to loyalty to airline websites”, Journal of Air Transport Management,
Vol. 18 No. 1, pp. 43-46.
Gao, L. and Bai, X. (2014), “An empirical study on continuance intention of mobile social
networking services: integrating the IS success model, network externalities and flow
theory”, Asia Pacific Journal of Marketing and Logistics, Vol. 26 No. 2, pp. 168-189.
Gopalakishna, P. and Mummalaneni, V. (1993), “Influencing satisfaction for dental services”,
Journal of Health Care Marketing, Vol. 13 No. 1, pp. 16-22.
Hair, J.F., Hult, G.T.M., Ringle, C. and Sarstedt, M. (2013), A Primer on Partial Least Squares
Structural Equation Modelling (PLS-SEM), Sage Publications, London.
 Hawk Partners (2012), “Hotel channel usage study”, available at: www.hawkpartners.com/ Hotel website
perspectives/hawkpartners-2012-hotel-channel-usage-study/ (accessed 25 January 2016).
quality
Henseler, J., Hubona, G. and Ray, P.A. (2016), “Using PLS path modeling in new technology
research: updated guidelines”, Industrial Management & Data Systems, Vol. 116 No. 1,
pp. 2-20.
Henseler, J., Ringle, C.M. and Sarstedt, M. (2015), “A new criterion for assessing discriminant
validity in variance-based structural equation modeling”, Journal of the Academy of 227
Marketing Science, Vol. 43 No. 1, pp. 115-135.
Hernandez, B., Jimenez, J. and Martın, M.J. (2009), “Key website factors in e-business strategy”,
International Journal of Information Management, Vol. 29 No. 5, pp. 362-371.
Hsu, C., Chang, K. and Chen, M.C. (2012), “The impact of website quality on customer
satisfaction and purchase intention: perceived playfulness and perceived flow as
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

mediators”, Information Systems and e-Business Management, Vol. 10 No. 4,

pp. 549-570.
Jarvenpaa, S.L., Tractinsky, J. and Vitale, M. (2000), “Consumer trust in an internet store”,
Information Technology Management, Vol. 1 Nos 1/2, pp. 45-71.
Jeong, M., Oh, H. and Gregoire, M. (2003), “Conceptualizing web site quality and its consequences
in the lodging industry”, International Journal of Hospitality Management, Vol. 22 No. 2,
pp. 161-175.
Kabadayi, S. and Gupta, R. (2005), “Web site loyalty: an empirical investigation of its
antecedents”, International Journal of Internet Marketing Advertising, Vol. 2 No. 4,
pp. 321-345.
Kline, R.B. (2011), Principles and Practice of Structural Equation Modeling, Guilford Press, New
York, NY.
Little, R.J.A. (1988), “Missing-data adjustments in large surveys”, Journal of Business & Economic
Statistics, Vol. 6 No. 3, pp. 287-296.
Mathwick, C. and Rigdon, E. (2004), “Play, flow, and the online search experience”, Journal of
Consumer Research, Vol. 31 No. 2, pp. 324-332.
Mehrabian, A. and Russell, J. (1974), An Approach to Environmental Psychology, The MIT
Publisher, Cambridge, MA.
Novak, T.P., Hoffman, D.L. and Duhachek, A. (2003), “The influence of goal-directed and
experiential activities in online flow experiences”, Journal of Consumer Psychology, Vol. 13
No. 1, pp. 3-16.
O’Cass, A. and Carlson, J. (2010), “Examining the effects of website-induced flow in professional
sporting team websites”, Internet Research, Vol. 20 No. 2, pp. 115-134.
Oliver, R.L. (1997), Satisfaction: A Behavioral Perspective on the Consumer, McGraw-Hill, New
York, NY.
Pace, S. (2004), “A grounded theory of the flow experience of web users”, International Journal of
Human-Computer Studies, Vol. 60 No. 3, pp. 327-363.
Pavlou, P.A., Liang, H. and Xue, Y. (2007), “Understanding and mitigate uncertainty in online
exchange relationships: a principal agent perspective”, MIS Quarterly, Vol. 31 No. 1,
pp. 105-136.
Podsakoff, P.M., MacKenzie, S.B., Lee, J.Y. and Podsakoff, N.P. (2003), “Common method biases in
behavioral research: a critical review of the literature and recommended remedies”, Journal
of Applied Psychology, Vol. 88 No. 5, pp. 879-903.
 JHTT Ponte, E.B., Carvajal-Trujilo, E. and Escobar-Rodriguez, T. (2015), “Influence of trust and
perceived value on the intention to purchase travel online: integrating the effects of
7,2 assurance on trust antecedents”, Tourism Management, Vol. 47, pp. 286-302.
Rezaei, S., Ali, F., Amin, M. and Jayashree, S. (2016), “Online impulse buying of tourism products”,
Journal of Hospitality and Tourism Technology, Vol. 7 No. 1, pp. 60-83.
Ryu, K., Lee, H. and Kim, W. (2012), “The influence of the quality of the physical environment,
228 food, and service on restaurant image, customer perceived value, customer satisfaction, and
behavioral intentions”, International Journal of Contemporary Hospitality Management,
Vol. 24 No. 2, pp. 200-223.
Thatcher, A., Wretschko, G. and Fridjhon, P. (2008), “Online flow experiences, problematic
Internet use and Internet procrastination”, Computers in Human Behaviour, Vol. 24 No. 5,
pp. 2236-2254.
Van Riel, A.C.R., Semeijn, J. and Pauwels, P. (2004), “Online travel service quality: the role of
Downloaded by Universiti Putra Malaysia At 22:53 21 October 2016 (PT)

pre-transaction services”, Total Quality Management and Business Excellence, Vol. 15 No. 4,
pp. 475-493.
Wang, L., Law, R., Guillet, B.D., Hung, K. and Fong, D.K.C. (2015), “Impact of hotel website quality
on online booking intentions: eTrustas a mediator”, International Journal of Hospitality
Management, Vol. 47 No. 1, pp. 108-115.
Wang, L.C. and Hsiao, D.F. (2012), “Antecedents of flow in retail store shopping”, Journal of
Retailing and Consumer Services, Vol. 19 No. 4, pp. 381-389.
Webster, J., Trevino, L.K. and Ryan, L. (1993), “The dimensionality and correlates of flow in
human-computer interactions”, Computers in Human Behaviour, Vol. 9 No. 4, pp. 411-426.
Zeithaml, V.A. and Bitner, M.J. and Gremler, D.D. (2006), Service Marketing: Integrating Customer
Focus across the Firm, 4th ed., McGraw-Hill, New York, NY.
Zhou, T., Li, H. and Liu, Y. (2010), “The effect of flow experience on mobile SNS users’ loyalty”,
Industrial Management and Data Systems, Vol. 110 No. 6, pp. 930-946.

Further reading
Moreo, A., Cobanoglu, C. and DeMicco, F. (2007), “A comparative analysis of restaurant websites
and hospitality school restaurant websites”, Journal of Hospitality & Tourism Education,
Vol. 19 No. 3, pp. 40-47.

About the author

Dr Faizan Ali is an Assistant Professor at College of Hospitality & Tourism Leadership at the
University of South Florida Sarasota–Manatee. His research interests include customer
experience and behavior, service quality and business research methods. He is an expert in
the usage of analytical tools such as structural equation modeling and partial least squares.
He has published more than 20 international refereed journal articles and has presented at
various international conferences. He is an assistant editor for International Interdisciplinary
Business Advancement journal and has over two years of experience in working on various
consultancy-related projects. Faizan Ali can be contacted at: faizanali7@hotmail.co.uk

For instructions on how to order reprints of this article, please visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm
Or contact us for further details: permissions@emeraldinsight.com