THE INFLUENCE OF E-SERVICE QUALITY AND E-WOM TOWARDS PERCEIVED VALUE AND ITS IMPLICATION ON REPURCHASE INTENTION ( A CASE STUDY OF AIRBNB IN BALI, INDONESIA)

Abstract

The rise of technologies affects the development of hospitality and tourism industry. As one of the industry which influences the economy, Indonesia needs to be aware, adapt and improve Indonesia’s hospitality and tourism industry. Airbnb is one of the example of innovation in hospitality and tourism industry, as Airbnb.com has become one of the leading e-commerce website for travelers following TripAdvisor and Booking.com. Therefore, this research is done over Airbnb.com, as many Indonesians have joined the Airbnb community to welcome tourists to stay over their local homes and offer a local experience with reasonable price compare to hotel. EService Quality and E-WoM of Airbnb.com’s influence towards customers’ Perceived Value and Repurchase Intention is tested in this research, which is done in Airbnb Bali, Indonesia with sample size of 221 respondents who are at least 18 years old. Based on the validity result, there are new hypotheses are formulated, and based on the SEM result, from E-Service Quality, System Availability has no influence on both Perceived Value and Repurchase Intention. On the contrary, Information Quality does influence both Perceived Value and Repurchase Intention. E-WoM itself has no influence over Perceived Value, but has direct influence towards Repurchase Intention, while on the contrary, Privacy influences Perceived Value but not Repurchase Intention. And lastly, Perceived Value is found to be influencing Repurchase Intention.