1. Relationship Marketing via online Trust: A look at the Accommodation Industry Kim Shyan Fam, City University of Hong Kong Thomas Foscht, Karl-Franzens University of Graz 31 st EMAC Conference – Braga, Portugal, May 2002

2. Purpose of Study To examine the importance of trust as demanded by a consumer using the internet service as opposed to that provided by the company. How to reduce the number of uncertainties and at the same time establish trust?

3. In the Internet …. We Trust Trust Based Process Web Site Features Adapted from Levy & Lendrevie 1999 Calculation Predictability Intentionality Capability Transference Tangibilisation Interactivity - formal guarantee of service and/or product; - extensive coordinates of the web provider - brand notoriety and reputation; - brand credibility for electronic transactions; - presentations of past activity of the site (revenues, no. of customers served, etc) - policy statement; - reinsurance of respect for privacy - detailed information on operations; - certification - support from well known brand; - security label; - testimonials - design; - navigation (simplicity, clarity, consistency); - technical quality of the site - electronic access to the Web provider (email, feedback & comments); - search & choice features; - feedback & confirmation of orders

4. Research Methodology  consumer = motel user, service provider = motel owner/operator  questionnaire distributed to both consumers and service providers  6 main centers in NZ were surveyed = Auckland, Wellington Christchurch, Dunedin, Queenstown & Wanaka  research instrument:24 items in total to measure the seven trust factors  Scale : 1 = strongly disagree, 5 = strongly agree  Responses : consumers (108), Service Providers (44)

5. Demographic Profile Consumer (n =108) 57% male 47% age 26-45 30% > NZ$70,000 pa 23% professional 16% services/sales 63% use the internet daily 26% have booked accommodation through internet 58% will use in the future Provider (n =44) 100% provided internet booking service 82% of providers were receiving bookings on a daily/weekly basis 50% have been online for between 1 and 3 years 35% viewed the internet as an effective marketing medium for their business

6. Results

7. 2 2.5 3 3.5 4 4.5 5 PrivacyGuaranteeTimeSpeedRefundStatement Coftion mail ConfirmationReputationSecurityRecognitionExperienceFeedbackOperationTestimonialsUsersVisualCustomer Factors Importance Consumer Provider Consumer vs Provider’s views of the importance of the various trust factors

8. Consumers’ Most Important Trust Factors (mean > 4)

9. Service Providers’ Most Important Trust Factors (mean > 4)