Adviser: Dr. Meng-Jang LinPresenter: Stan ChungDate: March 23, 2010

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I. Introduction

II. Literature Review

III. Methodology

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I. Research Background

III. Research Purpose

II. Statement of problemII. Statement of problem

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Regular Internet user in Taiwan

91% Taiwanese rely on the recommendations from other consumers.

76% Taiwanese thought web-based opinions are trusted.

(Nielsen, 2007)

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Word-of-mouth has been approved by many researchers that it has huge effect on consumer’s purchasing behavior.

(Buttle, 1998; East, Hammond, & Lomax, 2008; Godes & Mayzlin, 2004)

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Word-of-Mouse

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Word-of-Mouse

Word-of-Mouth

=Internet

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Previous WOM researches focused on the study of products.

Few researches were discussing about the field of hotel accommodation, especially for hot spring hotel.

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to explore the relationships between source credibility of word-of-mouse, trust and consumer purchase intention

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1. How does source credibility affects consumer purchase behavior?

2. How does trust affect source credibility on purchase intention?

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I. Word-of-mouse

III. Consumer information seeking

III. Trust

II. Source Credibility

Consumer information seeking behavior

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Attempting to purchase

Perceiving risk, anxious

Minimizing the risk

Seeking information

(Srinivasan & Ratchford, 1991)

Word-of-Mouse

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Direct to multiple individuals

Direct to multiple individuals

No time & geographic restriction

No time & geographic restriction

AnonymityAnonymity

CharacteristicsCharacteristics

(Hennig-Thurau, Gwinner, Walsh & Gremler, 2004)

The need for trust only arises in a risky situation.

(Mayer et al., 1995)14

AnonymityAnonymity

Credibility?Credibility?

Definition of Source CredibilityA communicator’s positive characteristics that affect the receiver’s acceptance of a message.

(Ohanian, 1990)

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Source credibility

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Expertness

Trustworthiness

Attractiveness

the extent to which a communicator is perceived to bea source of valid assertions

refers to the honesty and believability of a communicator.

includes a number of characteristics of a communicator might have(e.g. intellectual skills, personality properties, lifestyles)

(Erdogan, 1999)

Definition of TrustSocial psychologists define trust as an expectation about the behaviour of others in transactions.

(Lewicki & Bunker, 1995)

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Trust DispositionIs not situation specific, inclination to display faith in humanity and to adopt a trusting stance toward others

(McKnight et al., 1998)

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II. Research Structure

IV. Participant

V. Instrument

VI. Data AnalysisVI. Data Analysis

I. Research ProcedureI. Research Procedure

III. Research Hypotheses

Research Procedure

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Questionnaire designQuestionnaire design

Data collectionData collection

Questionnaire revisionQuestionnaire revision

Data analysisData analysis

Pilot studyPilot study

Research Structure

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Source Credibility

Expertness Trustworthiness Attractiveness

Expertness Trustworthiness Attractiveness

Purchase Intention

Trust

Research HypothesesH1. Expertness would have positive effect on purchase intention.H2. Trustworthiness would have positive effect on purchase intention.H3. Attractiveness would have positive effect on purchase intention.H4. Effect of source credibility on purchase intention would be different based on consumers’ trust.

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Participants

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Tourists in Guguan

Time 15 minutes

Quantity 30 (pre-test)300 (formal study)

Age 18-65

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Guguan

Location Heping Township of Taichung County

Altitude 800 meters

Found 1907

Average degree Celsius 48 degrees Celsius

Hotels 13

Instrument

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Questionnaire (31 items)

5 points Likert scale

Part 1 (13)

Source Credibility (Ohanian, 1990; Swartz, 1984; Wu, 2009)

Part 2(4)

Trust (Gefen, 2000)

Part 3(8)

Consumer purchase behavior (Swinyard, 1993)

Part 4 Personal information

1 strongly disagree

5 strongly agree

Part 1. Source Credibility

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Expertness

Trustworthiness

Attractiveness

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Part 2. Trust

Part 3. Consumer purchase behavior

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Part 4. Personal information

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SPSS 13.0 for windows

Descriptive statistics analysis

To know the distribution of participants personal information

Pearson Correlation To examine the relationships between the variables (can not test cause and effect)

Regression Analysis To examine the causal effect between variables

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