Telematics and Informatics: Namho Chung, Chulmo Koo
Telematics and Informatics: Namho Chung, Chulmo Koo
Telematics and Informatics: Namho Chung, Chulmo Koo
a r t i c l e i n f o a b s t r a c t
Article history: When faced with new technology for tourism purposes, travelers often use information
Received 27 September 2013 searches in the Internet and, in addition, gain valuable travel information from various
Received in revised form 22 August 2014 sources. This paper examines the travel information searches using social media as a
Accepted 25 August 2014
new search behavior from a value perspective. By adopting the value-based adoption
Available online 4 September 2014
model (VAM) based on the prospect theory and mental accounting theory from the
perspectives of value maximization of benefits versus sacrifices for a new technology,
Keywords:
our findings revealed that the traveler’s perception of the value of social media is a primary
Social media
Smart tourism
determinant of the traveler’s social media usage. We test our research model using empir-
Travel information search ical data collected (n = 695) in a survey and run a structural equation modeling. These
Value-based adoption model results are mediated by perceived value. Thus, the users of new social media, especially
Prospect theory for travel information searches, are influenced by both benefits (information reliability,
Mental accounting theory enjoyment) and sacrifices (complexity, perceived effort). However, only enjoyment makes
an impact directly on social media usage. Thus, this paper discusses both the theoretical
and practical implications of VAM in the context of social media on the subject of tourism.
Ó 2014 Elsevier Ltd. All rights reserved.
1. Introduction
Social media sites are currently accessed by 4.2 billion people via their mobile device. Facebook user’s check their account
more than 5 times a day and 74% of marketers believe that social media including Facebook, Google+, Twitter, etc., are vitally
important for their corporate and product strategy (Infographic: Social Media Stats 2013: Digitalbuzzblog.com). These effects
make a huge impact on travel industry as well. Social media are fundamentally changing the way travelers and tourists
search for, find, and read information regarding tourist suppliers and tourist destinations, and travelers can share their travel
experiences through Facebook, Twitter, and YouTube (Sigala et al., 2012). People throughout the world have Internet access,
consult blogs, and read or post information using some form of social media. Today, ‘connecting’ and ‘exchanging’ have
replaced the keywords ‘selling’ or ‘searching’ in various industries. For this reason, information technology (IT) enhanced
social media (Choi, 2013; Chung et al., 2012; Koo et al., 2011) in the hospitality and tourism industry has also become an
essential tool for accessing various sources of tourist information (Law et al., 2009; Sigala et al., 2012).
One area in which social media can exert a strong impact is travel occurring as a result of an information-intensive
industry (Sheldon, 1997; Werthner and Klein, 1999). Social media have become essential for restructuring the tourism
industry, and this need for social media could have significant effects on tourism in general (Xiang et al., 2008). Because tra-
vel products are not easily verified and controlled in advance, it may be more cost effective to build online communities of
people who share interests and engage in activities in other business areas, such as social commerce or entertainment. Travel
⇑ Corresponding author.
E-mail addresses: [email protected] (N. Chung), [email protected] (C. Koo).
http://dx.doi.org/10.1016/j.tele.2014.08.005
0736-5853/Ó 2014 Elsevier Ltd. All rights reserved.
216 N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229
information searches in contemporary web technologies can provide rich destination features, activities and appropriate
price information to identify the needs, wants, and demands of tourists and travelers. Recently, social media, which include
text messages, pictures, or videos in real-time and word-of-mouth, enable travelers to pay more attention, become inter-
ested in, desire, and interact more effectively within a variety of travel-related experiences with each other and tend to
believe and rely on each other’s information.
Travel information that is conveyed using blogs, tweets, and word-of-mouth comments from socially connected people
(Jang et al., 2013) leads to a greater consumption of information (watchers, 79.8%; sharers, 61.2%) rather than generation of
information (commenters, 36. 2%; producers 24.2%) because of the cost of posting or fear of offering information (Sigala et al.,
2012). The Travel Industry Association of America noted that about two-thirds (79 million; 64%) of travelers (102 million)
use search engines for travel planning (TIA, 2005). Another recent study showed that a search engine is a useful online infor-
mation source for American families in the context of vacation planning (eMarketer, 2008; Fesenmaier et al., 2010). Further-
more, Compete Inc. found that user generated content (UGC) generates about US $10 billion a year in online travel bookings;
thus, more than 20% of travelers rely on UGC when booking their trips (Schmallegger and Carson, 2008). Travelers using
social media to search for a travel destination can turn to destination websites to locate destination information. That is,
social media can be used during all stages of the travelers’ decision-making process, and travelers realize that they have a
need for social media in the tourism industry (Sigala et al., 2012).
Despite the phenomenal growth, there is a lack of empirical data describing the role of social media in the context of
online travel information searches (Xiang and Gretzel, 2010). One of the major questions is why are people willing to use
travel information search processing on social media websites (Fesenmaier et al., 2010). Travelers’ choice and decision mak-
ing could be studied from the value maximization perspective (Kahneman and Tversky, 1979) and mental accounting theory
(Thaler, 1980). That is, travelers also tend to maximize value on their choices for travel information search comparing with
customers’ decision making based on the compounding factors (Gupta and Kim, 2010). Zeithaml (1988) proposed the con-
cepts of perceived value which took place in a comparison context such as perceived quality vs. perceived sacrifice for a con-
ventional product context. Chen and Dubinsky (2003) extended the perceived customer value in an electronic commerce
setting. Perceived value is known to be a key predictor of customer purchase decision making (Gupta and Kim, 2010). In
terms of the delivery of information service study, we need to explore why travelers use social media and seek out travel
information searches and the factors that influence information search in social media. There are many studies that adopt
value as a key predictor of IT user’s decision to adopt a mobile services (Pihlström and Brush, 2008; Pura, 2005), Internet
shopping behavior in a consumer use context (Venkatesh et al., 2012), customer purchase decision making on Internet shop-
ping context (Chen and Dubinsky, 2003; Gupta and Kim, 2010; Kim et al., 2007). However, most of them are set in the Inter-
net customer shopping context and do not consider the role of value affected by the trade-off effects such as benefits and
risks (Gupta and Kim, 2010) or risk and uncertainty (Chen and Dubinsky, 2003) in the tourism and hospitality research
(Al-Sabbahy et al., 2004). In general, Information Systems (IS) have little adopted to examine both the benefit and sacrifice
aspects of innovation compared to scholars in other disciplines (Bolton and Drew, 1991; Chang and Wildt, 1994; Chen and
Dubinsky, 2003), rather IS scholars have focused on the comparison between extrinsic motivation (i.e., perceived usefulness,
perceived ease of use) and intrinsic motivation (i.e., perceived enjoyment) (Davis et al., 1992; Lee et al., 2005; Teo et al.,
1999).
The most well-known model explaining the adoption and usage of technology by individuals in an organization is the
Technology Adoption Model (TAM) introduced by Davis (1989). Kim et al. (2007) argued that TAM is limited, however, in
explaining the adoption of new ITs or behaviors, such as mobile commerce. Instead, they proposed the value-based adoption
model (VAM), which is more suitable for explaining the dual role of technology users and service consumers. Most consum-
ers adopt and use it for personal purposes, and the cost of voluntary adoption and usage is borne by the individuals. In the
context of tourism information search, however, a great portion of issues to consider would be either benefits or sacrifices in
pursuing innovative approaches to achieve valuable tourism information. For example, using social media for travel infor-
mation searches not only have benefits (i.e., acquisition utility), such as enjoying online networking, but also have costs
(i.e., transaction utility), such as inconvenience or not producing reliable travel information (Thaler, 1980; Thaler, 1985;
Thaler, 2008). In the end, people may be more perceive either benefit or sacrifice, which may have any value regarding
new technologies (Sheth, 1981). If people do not properly understand new technological innovations because of the com-
plexity of using these technologies, they may begin to feel a ‘‘psychology of reactance’’, which influences attempt to bring
about felt pressure toward change (Clee and Wicklund, 1980).
Our study focuses on travel information to examine the phenomenon of travel information searches in social media web-
sites, focusing on the mental accounting theory (Thaler, 1980; Thaler, 1985; Thaler, 2008), which explains travelers’ decision
making. Mental accounting theory is helpful in examining travel information search theoretically, especially in the context of
social media use, rather than from a technology user’s perspective (Kim et al., 2007, 2012). Travel information searches are
defined as ‘‘the bulk of technology use by traveler 2.0 is related to searches for information on the different products and
services to be used during a trip’’ (Sigala et al., 2012, p. 172). In previous literature, the VAM based on the mental accounting
theory thoroughly explains the costs and benefits associated with choices made by users. According to this theory, the value
function can be applied by the concept of gains and losses relative to a reference point for the traveler. Therefore, the VAM
enables us to consider the benefits or costs related to the use of information searching via social media used by travelers. By
investigating influential factors involved in travelers’ use in the context of social media, we propose that travelers’ use of
travel information searches can be explained in a search behavior. Through this study, we can contribute some practical
N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229 217
implications what kinds of aspects make travelers use social media. Further, tourism industry, agents, and marketers may
find the specific factors that enhance their value from both benefit and sacrifice perspectives.
The following section is a review of the general literature addressing theories such as perceived value theory, prospect
theory and mental accounting theory, and social media characteristics in tourism IS research. We describe our research
model in Section 3, and our research methodology in Section 4. We present a discussion of our findings in Section 5 and
conclude the study, addressing limitations and implications for practice and theory, in Section 6.
2. Research background
There are several value theories, such as consumption value, service value, consumer value, and perceived value (Han
et al., 2013; Kim et al., 2007, 2012; Gupta and Kim, 2010). Consumption activities are mainly classified as having utilitarian
and hedonic outcomes. Aspects of the utilitarian value theory include instrumental, task-related, rational, functional, cogni-
tive, and a means to an end activities, whereas the hedonic value theory includes the reflection of entertainment and the
emotional worth of shopping, which is more experiential and affective (Sánchez-Fernández and Iniesta-Bonillo, 2007). In
terms of perceived value, Kim et al. (2007) introduced Zeithaml’s (1988) perceived value for information systems, which
is generally referred to as a consumer’s perception of what is received and the price and quality of a product they evaluate
according to cost and benefit factors. Perceptions of customer value are formed using the formula of acquisition value and
the transaction value of a product (Kim et al., 2007, 2012; Gupta and Kim, 2010). Thus, to determine the value of a product,
consumers should first weigh the costs and then the benefits.
The perceived value is determined by estimating the costs and benefits. For example, Zeithaml (1988) and Dodds et al.
(1991) classified perceived quality versus perceived monetary price, and Chen and Dubinsky (2003) divided perceived prod-
uct quality and perceived risks and prices in the context of electronic commerce. Moreover, Kim et al. (2007, 2012) and Gupta
and Kim (2010) explained the role of perceived value in the context of technology adoption. They found that mobile Internet is
adopted on the basis of the dual points of perceived cost and usage, which is a formula for value maximization. In terms of IS
users perceive value, the cost-benefit relationship in the behavioral decision-making theory represents the cognitive trade-off
between the perceived effort (i.e., ease of use and complexity) and the perceived quality (i.e., usefulness and reliability of the
information). Kuo et al. (2009) found that service quality positively influences perceived value, and the perceived value pos-
itively influences both customer satisfaction and post-purchase intent in mobile value-added services. Table 1 summarizes
previous research on value, which are studied on investigating the antecedents and consequences of value in different con-
text. Many benefit (e.g., quality) and cost (e.g., price) factors have been identified as the antecedents of value. However, empir-
ical studies based on the benefit and sacrifice aspects are relatively rare. Table 1 presents the selected previous studies on
perceived value, with the antecedents and consequences of value components over diverse contexts.
Hospitality & tourism studies have also adopted the perceived value theory. The value of a travel destination strongly
influences the future intention of travelers to return to the same destination or engage in a similar travel experience (Lo
and Lee, 2011). Chen and Hu (2010) found that relational benefits have a direct effect on the perceived value of coffee outlet
operators and customer loyalty. Duman and Mattila (2005) indicated that affective factors are important determinants of the
perceived value of cruise services. For example, hedonics or pleasure is strongly influential in a cruise vacationer’s value per-
ceptions and behavioral intentions. In other words, travelers will estimate the value of the social media travel information
search based on their perceptions of what is achieved and what is sacrificed. Typically, when a traveler perceives a sacrifice
related to the new IS usage, he/she may perceive the value of the new IS. There have been research based on the value theory,
we judge that there has been a lack of studies on value in the context of social media, especially information searching
behavior in a tourism context. Therefore, this study turns to a fundamental theory that can explain user value-driven behav-
ior under conditions of benefit and sacrifice, as this theory can bring out of the customer-perceived value on the context of
Internet shopping (Gupta and Kim, 2010). Gupta and Kim (2010) explained that two theories can combine the customer
value-driven behavior under conditions of risk and uncertainty from a prospect theory (Kahneman and Tversky, 1979)
and mental accounting theory (Thaler, 1985). However, empirical studies based on the value theory, there lack theoretical
basis of value. We reviewed the tourism and hospitality discipline and found most studies fall short of theoretical basis
of value, even further, there have been a lack of studies on value in the context of social media usage for travel information
search. Therefore, this study brought the value theory into our research model that can explain travelers value-driven
behavior under conditions of benefit and sacrifice. Table 2 presents the selected previous studies on perceived value within
hospitality & tourism contexts. We take a look again the fundamental two theories in short.
Prospect theory was a behavioral economic theory which was developed by Kahneman and Tversky (1979) to choose
between probabilistic alternatives under risk. It explains human decisions under conditions of uncertainty from a value max-
imization perspective. Kahneman and Tversky (1979) found that people make decision based on the potential value of losses
and gains function rather than the final outcome. Each decision are combined to present an overall evaluation of whether a
218 N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229
Table 1
Previous research on perceived value.
Table 2
Previous research on perceived value over hospitality & tourism contexts.
decision is desirable. Human decisions don’t actually process information in such a rational way. Kahneman and Tversky
(1979) contends that people value gains and losses differently, that is, decision base is put more interest on perceived gains
rather than perceived losses. For example, when people were given to equal choices, one explained as possible gains and the
other as possible losses, people responds to the former even though the result is same in the end. Losses have more
emotional impact that an equivalent amount of gains. Rather, value should be treated as a function in two arguments: this
function is a representation of the difference in utility (amount of value or sacrifice) that is achieved as a result of a certain
amount of gain or loss. Interesting is that everyone would have a different value function that serves as a reference point and
the magnitude of the change (positive or negative) from that reference point (Kahneman and Tversky, 1979; Gupta and Kim,
2010).
According to prospect theory, customers maximize the value of the choice and decision making under conditions of
uncertainty. Furthermore, people put more favorable efforts on positive outcomes under a condition of certain than positive
outcomes under a condition of probable. This effect can be explained as people tend to choose smaller but certain gains
rather than larger but probable gains (Gupta and Kim, 2012).
Mental accounting theory contends that individuals divide their current and future assets (e.g., stock, options, and real
estate) into separate, and which generate a disposition effect (Thaler, 1980). The importance of this theory can help why
investors choose their money as ‘safety (risk-averse)’, or ‘high-risk (risk-loving)’ in investing into separate accounts. Mental
accounting theory considers compound outcomes, in contrast prospect theory is defined over single, unidimensional out-
come. Since social media usage decisions could be affected by more than one decision factor (such as relations, risk, conve-
nience), mental accounting theory seems better fit for social media usage decision making, individuals evaluate, first,
potential transactions, second, approve and disapprove of each potential transaction. The first stage is a judgment process
while the second is a decision process (Thaler, 2008). For evaluating potential transactions, Thaler (2008) proposed two types
of utility: acquisition utility and transactions utility. Acquisition utility is the value of the goods received compared to the
spending, the latter relies on solely on the perceived merits of the ‘‘deal’’ (Thaler, 2008). For making usage decisions, users
make decisions to maximize their total utility with reference to the mental account. In social media information searching,
the ultimate use of social media information searching behavior would be same. Acquisition utility may, however, be
N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229 219
different as cost may vary between different online search channels, therefore, this study identifies only transaction utility
and total utility, not acquisition utility.
Social media can generally be regarded as Internet-based applications that carry consumer-generated content encom-
passing media impressions created by consumers, typically informed by relevant experience, and archived or shared online
for easy access by other impressionable consumers’’ (Xiang and Gretzel, 2010, p. 180). In our study, social media may be
explained as a group of Internet-based applications that exist on the Web 2.0 platform and enable Internet users from all
over the world to share ideas, thoughts, experiences, perspectives, information, and forge relationships (Chan and Guillet,
2011; Sigala et al., 2012). Furthermore, we classify social media use in this study as a combination of self-presentation
(self-disclosure) and social presence (media richness) dimensions, as represented in Table 3.
Social media provide an environment that facilitates users’ interaction and their search for services. Hence, the number of
people who perceive that they are benefiting from social media is increasing dramatically. We, therefore, studied the role of
search engines in travelers’ of the Internet and adapted the online travel information search behavior from Xiang and Gretzel
(2010)’s study. The key components of social media usage for travel information search are categorized as followings: (1) the
online traveler who is engaged in personal and trip-related needs; (2) the online tourism domain that is providing
informational entities among individual consumers through means of social media rather than the hypertextual nature of
the Internet search; (3) the search engine that determines the representation of the tourism domain which are related to
the design of interface features, search result rankings, metadata, and paid links that influences the travelers’ perception
and decision making (Xiang and Gretzel, 2010).
Traditionally, tourists have consulted travel magazines, newspapers, and books to retrieve the information they need.
Over the last 15 years, however, these traditional media sources have been replaced by Internet websites that provide travel
information and allow users to share their experiences. During the pre-travel phase, travelers typically perform extensive
travel information searches and make online bookings, and during the post-travel phase, they share their experiences of their
travel activities, services, and products (Jeng and Fesenmaier, 2002; Vogt and Fesenmaier, 1998). Here we need to define
information search that can explain information on various products and services sought by a traveler during a trip, vs.
‘information posting,’ which is defined as a simple rating, comments, photos, or videos of a product or service during the trip
found in social media (Sigala et al., 2012). Web 2.0 allows the tourism industry to change the ways in which they tradition-
ally conduct their internal and external business operations, with travelers as more proactive information providers who
relay their travel experiences (e.g., travelers as co-creators; travelers as co-distributors) beyond just information processing
(Sigala et al., 2012).
Many travel-related firms have started to integrate the growing number of social media available through smart devices,
which provide an increasing diversity of travel-related services, such as looking up destination for tourist activities through
travel information searches. Therefore, it is critical to understand changes in technologies and travelers’ behaviors that
impact the creation, distribution, and accessibility of travel information (Werthner and Klein, 1999; Xiang and Gretzel,
2010).
Today, social media has evolved into a multitude of different social network services (e.g., Instagram.com, Four-
square.com) that allow people from various locations to form relationships or share their travel-related experiences by post-
ing photos and videos (Parra-López et al., 2011). This information can be very useful to potential travelers and can be
searched at their convenience. Tourism related social media applications on smart-devices can serve as tools for finding
more travel information, with search engines providing direct access to information (Xiang and Gretzel, 2010). If a traveler
wants to read about someone else’s experiences in and around a certain destination, the traveler will attempt to search for
information and interact with other social media users. Therefore, travelers can find real-time information among network
members, and the providers of that information receive gratitude from users all over the world. Although their importance
and value have been noted, there has yet to be a study conducted on empirical social media usage for travel information
search. While the perceived value theory can explain a traveler’s evaluation of a new IS for searching travel information,
our study extends the concept to understand travelers’ use behavior regarding this new technology.
Table 3
Classification of social media.
Based on the theory we provided in the previous section, we frame the research model presented in Fig. 1. We selected
perceived value as the main theory in the context of social media usage on the subject of tourism and developed our research
model. In this context, ‘‘perceived value’’ is defined in terms of performance (quality) and price, that is, a cognitive trade-off
between costs and benefits (Kim et al., 2007, 2012; Sánchez-Fernández and Iniesta-Bonillo, 2007). This study proposes the
research model, which show two stages in transaction analysis as proposed by Thaler (1985) and tested by Kim et al. (2007,
2012) and Gupta and Kim (2010). The judgment stage consists of the four components of transaction utility: information
reliability, enjoyment, complexity, and effort. The overall evaluation of social media transaction with a few social media sites
(e.g., Cyworld, Facebook, Twitter, etc.,) represents perceived value as total utility. Based on the prospect and mental account-
ing theory (Kahneman and Tversky, 1979; Thaler, 1985; Zeithaml, 1988), and previous empirical studies (Kim et al., 2007,
2012; Gupta and Kim, 2010), we define perceived value as the net benefits (perceived benefits vs. perceived sacrifices) of
a transaction with social media usage. The decision-making stage consists of making usage decision based on the total utility,
subject to the non-budget constraints allocated to a specific mental account. This study includes the influence of individual
components of transaction utility on usage intention, as travelers might make decision based on segregated evaluation,
when all the attributes are in the frame of gain. In such cases, travelers assessment of individual components would lead
directly to decision making. In this way, we extend previous research on travelers’ social media usage of innovation and
enhance one’s understanding of how travelers choose social media during their travel information search. The benefit vari-
ables are categorized as information reliability and enjoyment, and the cost variables are identified as complexity and per-
ceived effort. Both dimensions are hypothesized as antecedents of perceived value. Furthermore, perceived value leads to
social media usage for travel information search as consequences of perceived value. The hypotheses are discussed in detail
below.
3.1. Perceived value and use of social media in travel information search
Perceived value implies a ‘‘trade-off’’ between costs and benefits; moreover, perceived value implies an interaction
between a customer and a product or service (Payne and Holt, 2001). Davis (1989) explained that the cost-benefit theory
could be applied to understand the distinction between perceived usefulness and perceived ease of use, similar to making
the distinction between product performance and the effort exerted to use the product. We provide a few empirical studies
with a usage perspective. End users who perceived utilitarian values (accessibility, convenience, ease of use, and costs) used
a tech-enabled change in form. Use of technologically facilitated services is influenced by personal capacity and willingness.
Overall, if the perceived value of social media is high (i.e., the benefits are perceived to outweigh the sacrifices), then
travelers are likely to use a travel information search using social media; in contrast, if the perceived value is low
(i.e., the sacrifices are perceived to outweigh the benefits), travelers are likely to show greater resistance toward social media
use in travel information searches. Travelers may be likely to select or reject an information search based on an implicit psy-
chological trade-off between perceived benefits and the associated sacrifices of use, as suggested by Davis (1989). Travelers
tend to maximize value during their decision making process and are reluctant to use something of a lower perceived value,
which results in the traveler’s usage of social media. In our study, we target travelers to understand how the individual
perceives change regarding the IS and its effect on his/her goals and whether the social media information search is posi-
tively perceived. We assume that travelers’ usage of social media may include perceived value. Hence, we hypothesize
the following:
Hypothesis 1. Perceived value has a positive effect on the travel information searches in social media usage.
3.2. Benefits
The value theory classifies utilitarian and hedonic value subsystems. Utilitarian motivation causes an individual to search
for information and gain information to increase his/her involvement in an activity to achieve a specific goal; in contrast,
hedonic motivation includes entertainment, visual stimulation, escape, and participation in an activity that is motivated
by the emotional appreciation of the consumption. Both utilitarian and hedonic values are described in terms of extrinsic
and intrinsic values (Sánchez-Fernández and Iniesta-Bonillo, 2007). Davis et al. (1992) examined extrinsic and intrinsic moti-
vation to use a computer and found that usefulness and enjoyment both influenced usage behavior. In addition, Kim et al.
(2007) and Gupta and Kim (2010) examined the influence of perceived value and behavioral intention. Our study posits that
travelers include both cognitive and affective elements in their search behaviors, and that searching for travel information in
social media is also closely related to the travelers’ utilitarian and hedonic values. For this reason, we propose information
reliability and perceived enjoyment as the benefit determinants of perceived value.
Hypothesis 3. Information reliability has a positive effect on the travel information searches in social media usage.
3.2.2. Enjoyment
Enjoyment has a significant effect on technology acceptance that extends beyond usefulness (Davis, 1989). Davis et al.
(1992) stressed that intrinsic motivations compel the individual to use a computer because it offers enjoyment. These
authors referred to enjoyment as ‘‘the extent to which the activity of using the computer is perceived to be enjoyable in
its own right’’ (p. 1113). When people use technology, such as a computer, and feel pleasure or joy, whereby they perceive
the technology to be enjoyable and to be of instrumental value, they are more likely to use it extensively (Davis et al., 1992).
Sánchez-Fernández and Iniesta-Bonillo (2007) stated that the concept of perceived value incorporates dichotomous values
(utilitarian value vs. hedonic value). Hedonic value can be explained as a reflection of the entertainment and emotional
worth of shopping, which is experiential and affective. Researchers have demonstrated that enjoyment or pleasure positively
affects perceived value (Kim et al., 2007; Gupta and Kim, 2010) and usage intention in the context of hedonic information
(Van der Heijden, 2004). Enjoyable use of social media devices emotionally forces travelers not only to search information for
222 N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229
assisting travel decisions but also to interact with others. Travelers engage in online social relationships, enjoy materials
posted by other people or create their own materials (Sigala et al., 2012). We therefore hypothesize the following:
Hypothesis 5. Enjoyment has a positive effect on the travel information searches in social media usage.
3.3. Sacrifices
In previous studies, the quality and price relationship reflects value, that is, what is sacrificed versus what is received in
an exchange (Sánchez-Fernández and Iniesta-Bonillo, 2007). Perceived sacrifices include both monetary and non-monetary
sacrifices (Kim et al., 2007). The monetary aspect includes the actual price of the product, and customers generally evaluate it
based on the perceived price. The non-monetary aspect refers to the time and effort spent on buying and consuming the
product. Kim et al. (2007) proposed that perceived sacrifice, including technicality, which is about being technically excellent
in the process of providing a service, and perceived fee, which is explained as the perception of the fee compared to the price,
have technical factors that positively impact the perceived value; in contrast, the price factor has been found to negatively
impact the perceived value. Gupta and Kim (2010) found that perceived price and risks negatively affect the perceived value.
In addition, perceived price negatively influences one’s purchase intention as well. Social media currently offers users free
usage; thus, we only consider the complexity and the time and effort (i.e., perceived ease of use) (Davis, 1989) involved
in the traveler’s search process. Non-monetary sacrifice only determined for perceived value and user attraction. For this rea-
son, we propose complexity and perceived effort as the sacrifice components of perceived value and as the positive driving
forces behind user’s perception.
3.3.1. Complexity
Davis (1989) defined complexity as ‘‘the degree to which an innovation is perceived as relatively difficult to understand
and use.’’ More specifically, Rogers (1995) found that the complexity of the innovation has a significant negative relationship
with the adoption of the new application. Thus, individuals have not sufficiently perceived the breadth and depth of knowl-
edge to grasp the overall performance of new technologies (Reed and DeFillippi, 1990). A product’s technological complexity
is found to have a negative effect on time and cost development, which leads to a greater disadvantage for the manufacturing
company (Sánchez and Pérez, 2003). On the other hand, a complex transaction is a multidimensional variable that includes
technological complexity, and it is interrelated with factors that affect the purchase decision. Therefore, Kotteaku et al.
(1995) have attempted to establish a causal relationship between the technical difficulty of products and the consumer’s
selection decision. Product complexity not only creates stress for the buyer but also affects the structure of the buying center.
Kim and Kankanhalli (2009) argued that changing to a new IS and a new way of working with the new system could affect
the users’ reactions to the new IS-related changes and have a significant impact on user resistance. In value base theory,
Gupta and Kim (2010) found that perceived risk has a negative effect on perceived value but not significant to directly pur-
chase intention in Internet shopping. Then, travelers are less willing to make actual use under conditions of high complexity
in the social media usage context. We therefore hypothesize the following:
Hypothesis 7. Complexity has a negative effect on the travel information searches in social media usage.
Hypothesis 9. Perceived effort has a negative effect on the travel information searches in social media usage.
4. Research methodology
In this study, the measurements were derived from previous literature pertaining to the six constructs known as infor-
mation reliability, enjoyment, complexity, perceived effort, perceived value, social media usage for travel information search.
Four information reliability items were adapted from a study conducted by Ha and Ahn (2011), four enjoyment items were
adapted from a study performed by Wu and Chang (2005), three complexity and four perceived effort items were drawn
from the research of Kim et al. (2007), four perceived value items were adapted from Kim et al. (2007, 2012), three social
media usage for travel information search items were adapted from the research of Vogt and Fesenmaier (1998). We adopted
multi-measurement items for each construct to overcome the limitations of a single item because a single item is usually too
specific to capture all the attributes of a construct and is likely to have a high rate of measurement error. Each item was mea-
sured using a 7-point Likert scale ranging from strongly disagree (1) to strongly agree (7).
This study employed a top-ranking Korean Internet survey firm to collect the data. The Internet survey firm has a nation-
wide panel of 650,000 online respondents, from which representative samples are selected. Their standard procedures use
Korean resident registration numbers matched against personal passwords to verify the identity of the panelists included in
each sample. They are selected as best-fit participants by their responses to a sampling questionnaire and rejected during the
survey if they complete their questionnaires too quickly. The Internet survey was collected in May 2012. The Internet survey
firm distributed questionnaires to 2013 potential customers, who were chosen randomly. By using a screening question, we
selected those who were experienced with travel information searches using social media. Following this procedure, we col-
lected 695 questionnaires (with a response rate of 34.5%), and after checking for outliers, all 695 questionnaires were coded
for analysis. The characteristics of the respondents are presented in Fig. 2 and Table 4.
This study employed a structural equation modeling (SEM) approach to test the hypotheses. SEM is designed to evaluate
how well a proposed model or hypothetical construct explains the collected data (Hair et al., 2006). It employs a two-step
hybrid method by specifying a measurement model in the confirmatory factor analysis (CFA) and tests a latent structural
model developed from the measurement model (Kline, 2010).
We assessed the constructs for convergent validity and discriminant validity via CFA using AMOS 18.0. CFA involves the
revision of the measurement model by dropping items that share a high degree of residual variance with other items. We
159
Shopping place
Transportation 332
401
Tourism destination
Accomodation 310
Fig. 2. Tourism information searching items. Note. The tourism information searching items in the figure are selected multiply by the participants (n = 695).
224 N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229
Table 4
Demographic Characteristics of Respondents.
Demographics n = 695 %
Gender Male 340 48.9
Female 355 51.1
Age Less than 30 210 30.2
30 – less than39 202 29.1
40 – less than49 189 27.2
More than 50 94 13.5
Education High school 101 14.5
(2 year) College 107 15.4
Bachelor’s degree 427 61.4
Master’s degree 60 8.6
Occupation Student 97 14.0
Office worker/Manager 264 38.0
Sales/Services 32 4.6
Technical 61 8.8
Professional 66 9.5
Public servant 15 2.2
Housewife 87 12.5
Other 73 10.5
Monthly income Less than $1,000 97 14.0
$1,000 to $1,999 122 17.6
$2,000 to $2,999 142 20.4
$3,000 to $3,999 129 18.6
$4,000 to $4,999 102 14.7
More than $5,000 103 14.8
Social Media Facebook 163 23.5
Type Twitter 92 13.2
(Multiple choice) Cyworld 148 21.3
Blog 489 70.4
Café 446 64.2
Smartphone app 176 25.3
dropped a total of two items that shared a high degree of residual variance. The v2 fit statistic was 331.605, with 155 degrees
of freedom (v2/d.f. = 2.139) (p < 0.001). The goodness-of-fit index (GFI) was 0.954, the adjusted goodness-of-fit index (AGFI)
was 0.938, the normed fit index (NFI) was 0.970, the comparative fit index (CFI) was 0.984, and the root mean square error of
approximation (RMSEA) was 0.041. All statistics supported the overall measurement quality given the number of indicators
(Anderson and Gerbing, 1992).
We checked the convergent validity using three other criteria. First, the standardized path loading of each item must be
statistically significant and greater than 0.7 (Gefen et al., 2000). Second, the composite reliability (CR) and Cronbach’s a for
each construct must be larger than 0.7. Third, the average variance extracted (AVE) for each construct must exceed 0.5
(Fornell and Larcker, 1981). As shown in Table 5, the standardized path loadings were all significant and greater than 0.7.
The CR and Cronbach’s a for all constructs also exceeded 0.7. The AVE for each construct was greater than 0.5. Therefore,
the convergent validity for the constructs was supported (Bagozzi and Yi, 1988; Bhattacherjee and Sanford, 2006, p. 815).
We checked the discriminant validity of the measurement model by comparing the square root of the AVE for each con-
struct with the correlations between that construct and other constructs. If the square root of the AVE is greater than the
correlations between that construct and other constructs, then this value indicates discriminant validity (Fornell and
Larcker, 1981). As shown in Table 6, the square root of the AVE for each construct exceeded the correlations between that
construct and the other constructs. Therefore, discriminant validity was established.
Table 7 presents the maximum-likelihood estimates for the various overall fit parameters. The v2 statistic fit was 331.605,
with 155 degrees of freedom (p < 0.000, v2/d.f. = 2.139). The GFI was 0.954, the AGFI was 0.938, the NFI was 0.970, the CFI
was 0.984, and the RMSEA was 0.041. These multiple indicators suggested that the model had a good fit, justifying further
interpretation.
The squared multiple correlations (SMCs; R2) for the structural equations for perceived value, social media usage for tra-
vel information search was relatively high, as shown in Table 7 and Fig. 3. For perceived value, SMC = 0.559 and 31.5% of the
variance (SMC = 0.315) in social media usage for travel information search was explained by the direct effects of complexity,
perceived effort, and perceived value. Table 7 presents the standardized parameter estimates.
N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229 225
Table 5
Measurement model resulting from confirmatory factor analysis.a
Hypotheses 1 address the structural relationships between perceived value and social media usage for travel information
search. Perceived value has a positive effect on social media usage for travel information search (b = 0.188, t-value = 2.696)
and was statistically significant at p < 0.01, supporting Hypothesis 1.
Hypotheses 2 and 3 address the structural relationships between information reliability, perceived value and social
media usage for travel information search. Information reliability has a positive effect on perceived value (b = 0.331,
t-value = 8.896, p < 0.001) and information reliability has a negative, insignificant effect on media usage for travel
information search (b = 0.024, t = 0.477, n.s); therefore, Hypothesis 3 was supported, whereas Hypothesis 4 was
not supported.
Hypotheses 4 and 5 suggest that positive relationships exist between enjoyment, perceived value and social media usage
for travel information search. Enjoyment has a positive significant effect on perceived value (b = 0.437, t = 11.558, p < 0.001),
and enjoyment also has a positive significant effect on social media usage for travel information search (b = 0.449, t = 7.016,
p < 0.001). Thus, Hypotheses 4 and 5 were confirmed by the data.
Hypotheses 6 and 7 address the structural negative relationships between complexity, perceived value and social media
usage for travel information search. Complexity has a negative effect on perceived value (b = 0.115, t-value = 2.517,
p < 0.05), but complexity has a negative insignificant effect on social media usage for travel information search (b = 0.088,
t = 1.399, n.s); therefore, Hypotheses 6 was supported, whereas Hypothesis 7 was not supported.
Finally, Hypotheses 8 and 9 address the structural negative relationships between perceived effort, perceived value and
social media usage for travel information search. Hypothesis 8 was supported by the significant negative impact of per-
ceived value (b = 0.167, t = 3.638, p < 0.001), but Hypothesis 9 was not supported by the significant negative impact
of perceived effort on social media usage for travel information search (b = 0.035, t = 0.559, n.s). The results are shown
in Fig. 3.
226 N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229
Table 6
Correlation between constructs.
1 2 3 4 5 7 Mean S.D.
1. Information reliability 0.822 4.493 0.911
2. Enjoyment 0.317** 0.889 5.478 0.899
3. Complexity 0.063 0.338** 0.908 3.114 1.269
4. Effort 0.021 0.337** 0.673** 0.900 2.963 1.278
5. Perceived value 0.447** 0.596** 0.378** 0.374** 0.854 5.177 0.878
6. Social media usage 0.176** 0.447** 0.130** 0.142** 0.346** 0.712 5.276 0.983
Note. The diagonal elements in boldface in the ‘‘correlation of constructs’’ matrix are the square root of the average variance extracted (AVE).
**
p < 0.01.
Table 7
Standardized structural estimates and tests of the main hypotheses.
This study has revealed the following important findings. As indicated previously, we examined the travel information
search in social media usage using mental accounting theory and found some interesting results. First, the traveler’s per-
ceived value of social media had a positive significant influence on travel information searches (social media usage), the
result shows that apart from positive and negative effect, benefit factors (e.g., information reliability, enjoyment) and sacri-
fice factors (e.g., complexity, effort) had a significant influence on travel information searches. Furthermore, the results indi-
cate that information reliability, complexity, and effort factors except enjoyment factor were mediated by travelers’ value
perception to lead the social media usage, however, only enjoyment motivated travelers to use social media both directly
and indirectly. Our findings are consistent with pleasure from previous transactions influences customers’ value perceptions,
as consumers often are motivated to make purchase decisions based on intrinsic factors (Gupta and Kim, 2010). These
findings are the main interest of this study. These findings indicate that, depending on whether travelers perceive value
in a travel information search, they resulted in usage outcome.
N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229 227
Second, information reliability and enjoyment were found to be important benefits of social media usage for travel infor-
mation search and both factors revealed a significant influence on the perceived value of social media as well. This finding is
consistent with the findings of Kim et al. (2007). Gupta and Kim (2010) also found that both direct and indirect effects exist
together in purchase intention. H3, which declared that information reliability would not exert a large influence on social
media usage for travel information search, was not supported. Information reliability was revealed to mediate perceived
value, thereby indirectly influencing social media usage for travel information search. This result indicated that information
reliability plays the role of a full mediator.
Third, complexity and perceived effort in using social media, which are sacrifice factors, exhibited a statistically signifi-
cant negative influence on perceived value. This finding is also consistent with the findings of Kim et al. (2007) and Gupta
and Kim (2010). On the other hand, complexity and perceived effort did not have significant influence on social media usage
for travel information search. This result showed that sacrifice factors influence through only perceived value. The results of
this study are apparently showed that perceived sacrifices are major barriers to social media use transactions. Many of trav-
elers in this study have also made a decision to use from the Internet search, which would give a switching cost to travelers
about novelty. Considering the role of Internet search experience, the results of this study reveal that the effect of perceived
sacrifice on social media could be a major barrier to switch social media usage, however, only insignificant because of the
mediating role of perceived value. In summation, we explain how the identified factors affect travelers’ decisions about tra-
vel information searches using social media directly and indirectly through perceived value.
The theoretical implication in this study is that travelers’ travel information search behaviors were explained using the
mental accounting theory as the basis for studying travelers behavior. Although the concept of value is complex and multi-
dimensional, and varies from context to context as well as discipline to discipline, it is fundamentally seen as net value (total
benefits vs. total costs) in a transaction (Gupta and Kim, 2010; Zeithaml, 1988). While many studies in the marketing have
applied to the concept of value (price vs. quality or benefit vs. cost) for studying consumer behavior, recent studies using the
concept of value do not consider the benefit and sacrifice that influence travelers’ judgment and decision making in social
media usage. The adoption of mental accounting theory has therefore resulted in a severe understanding of social media
usage behavior. Therefore, we affirm the value-based model using mental accounting theory in our study. This study found
that value is a key determinant of travelers’ decision making using social media. Innovation adoption and diffusion theories
have focused mostly on the adoption process. Travelers had a high exposure to perceived benefits and a preference for using
social media and vice versa; they tended to perceive sacrifices and resist using social media, which can explain ‘two-sided’
forms of travelers’ behaviors. Travelers could be driven by the level of benefits and sacrifices of social media.
Our study contributes to the existing literature on adoption using mental accounting theory, which identified factors
other than extrinsic (e.g., perceived usefulness, perceived ease of use) and intrinsic factors (e.g., perceived enjoyment, plea-
sure, playfulness) that influence to use innovative IT. This study reveals that using benefit and sacrifice together can give a
deeper understanding of an end-user usage decision making. Also, factors other than perceived usefulness and perceived
ease of use (Davis, 1989) may also influence travelers’ transaction utility, as users do not always use new thing with the fac-
tors provided by extrinsic and intrinsic factor (Davis et al., 1992) or TPB (Taylor and Todd, 1995) theories. Until now, few
studies have analyzed travelers’ attitudes toward social media empirically through mental accounting theory, especially,
travelers’ transaction utility. Using social media as the subject, which has recently appeared in terms of travel information
searches, this study analyzed the travel information search behaviors of social media users empirically via several factors
(information reliability, enjoyment, complexity, and effort) that could influence travelers’ value perception, and found all
of them to be significant predictors of perceived value in travel information search in social media. According to the results
of our analysis, the traveler’s perceived value are mentally accounted by the trade-off between perceived benefits and per-
ceived sacrifices in travel information searches. Importantly, mental accounting theory helps deepen our understanding on
this issue. It is because the perceived merits of the deal or the transaction utility of social media would be major motivators
to switch off from Internet search into social media information across search behaviors. This study found empirical support
for the influence of components of transaction utility on perceived value of social media usage. Most previous studies focus
on the role of value in consumer choice and decision making (e.g., Chen and Dubinsky, 2003; Gupta and Kim, 2010; Kim et al.,
2007). Our study makes an important contribution to the research on user behaviors using mental accounting theory with
the role of transaction utility in traveler’s usage context with regard to social media.
Some practical implications of this study include determining what makes travelers use social media. The tourism indus-
try, agents, and marketers can enhance their value from both benefit and sacrifice perspectives. Regarding the benefit per-
spective, the tourism industry and associated agencies should aim to enhance information reliability and enjoyment and
lower the perception of sacrifice. To increase enjoyment, travel information should be provided as enjoyable, pleasurable
and fun. Indeed, travel experiences are very emotional. To reduce complexity, tourism companies and marketers could offer
easy searches and transactions, speedy delivery of information, contact information, and round-the-clock availability of tra-
vel information through social media. Even if a company offers valuable information, friends or peers could also provide this
type of information, and users may not willingly use these websites to search for tourism information. Therefore, the use of
social media may continue to decrease.
Furthermore, travel agents may pursue a number of options and should make great efforts to maximize the value of social
media. For example, Tnooz (www.tnooz.com) has a special feature allowing daily travel tech news to find up-to-date tech
travel information via Facebook and Twitter. To lower sacrifices, travel agents, marketers, and organizations should invest
in efforts that can enhance their cognitive contents, information reliability, and valuable service as perceived by travelers.
228 N. Chung, C. Koo / Telematics and Informatics 32 (2015) 215–229
Examples of such efforts include sharing travelers’ experiences, deploying reliable destination information, offering special
events, and providing interesting after-traveling stories through social media. If the offline brand is not yet well known, the
vendor can leverage its travel information using social media.
The results of this study have some limitations. First, the data for this study were collected from Korean travelers. It would
be useful to replicate this study using other countries’ travelers in different travel categories so that the robustness of the
results can be more attainable. Second, this study considered only benefits and sacrifices in decision making for travel infor-
mation searches. There are other variables in the context of travel information in social media, however, which influence
perceived value differently. Future studies may extend our research model by including components of cognitive and affec-
tive factors to examine decision making for travel information searches.
Acknowledgement
This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-
2013S1A3A2043345).
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