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Factors Affect Vietnamese’s Repurchase Intention To Choose Airbnb: Relationship Between Past Experience And The Impact Of Covid-19 A dissertation submitted by Ngoc Thi Tran in partial completion of the award of MSc International Hospitality and Tourism Management 'I hereby declare that the dissertation submitted is wholly the work of Ngoc Thi Tran Any other contributors or sources have either been referenced in the prescribed manner or are listed in the acknowledgements together with the nature and scope of their contribution.' Faculty of Management Bournemouth University 2020 DECLARATION I confirm that this dissertation contains information of a commercial or confidential nature or includes personal information other than that which would normally be in the public domain and that it must not be made available for public access Ethical and Health & Safety issues I confirm that the on-line ethics checklist was completed and that any ethical considerations associated with the proposed research were discussed with my supervisor and an appropriate research strategy was developed which would take them into account I also confirm that any potential health & safety risks associated with the proposed research were discussed with my supervisor and where necessary, appropriate precautions were documented, including an appropriate risk assessment Copyright The copyright for this dissertation remains with me Requests for Information I agree that this dissertation may be made available as the result of a request for information under the Freedom of Information Act Signed: Name: Ngoc Thi Tran Date: 11/9/2020 Programme: MSc International Hospitality and Tourism Management ii Abstract Airbnb, which considered as a part of sharing economy system, is a quickly expanding industry and has brought people’s attention in various ways In Vietnam, Airbnb appears from 2015 and since then attracting millions of both customers and hosts whose renting their own property to tourists every day Living in and homestay such as Airbnb is a way to create a novel experience and it shows an increase in demand in recent years While this phenomenon showing remarkable growth in term of the number Airbnb around Viet Nam There is a lack of academic literature related to motivations and factors that affect tourist repurchase intention when choosing Airbnb as accommodation for their next trips Furthermore, over the last few months, the breaks out of the pandemic (Covid-19) has led to a significant impact on the tourism industry Airbnb also has a serious influence on the revenue due to countries lockdown and transportation have stopped around the world During this unstable period, there is a need to examine how the current situation affects customer behaviour and how their previous experience secures their perceived value of Airbnb Accordingly, the aim of this study is to examine the relationship between past experience and perceived value, to evaluate the impact of COVID-19 on customer risk perception and to see the relationship between value and risk perception on repurchase intention A quantitative method is used in order to test the hypothesis proposed by the researcher, an online survey was conducted and then using the SPSS software to analyze the data collected The finding of this research indicated that while economic benefit, usefulness website, home benefit, host-guest relationship and authenticity have an impact on customer perceived value, Covid-19 increase risk perception of tourist, therefore, decrease Airbnb repurchase intention Host-Guest relationship contributes a considerable impact on perceived value and overall perceived value largely decide customer repurchase intention In contract, perceived risk indicates a little impact on repurchase intention even in this unstable period At the end of the research, suggestions for developers is mentioned for future improvement Word count: 14.172 Table of Contents Abstract Chapter Introduction 1.1 Background to the topic 1.2 Reasons for choosing the topic 1.2.1 Academic rationale 1.3 Industry rationale 1.4 Research aim and objectives 1.5 Structure of the dissertation Chapter Literature review 2.1 Introduction 2.2 Airbnb 2.2.1 Airbnb phenomenon 2.2.2 Studies on Airbnb 10 2.3 Repuchase intention in Airbnb 11 2.4 Perceived value 12 2.4.1 Perceived usefulness 13 2.4.2 Economic benefits 13 2.4.3 Household benefits 13 2.4.4 Host guest relationship 14 2.4.5 Perceived Authenticity 15 2.5 Perceived risk 15 2.5.1 Perceived risk in a crisis (Covid-19 pandemic) 17 2.6 Hypothesis 18 2.7 Research gaps 19 Chapter Methodology 20 3.1 Introduction 20 3.2 Research Philosophies 20 3.3 Research Approach 21 3.4 Secondary research 21 3.5 Primary research 22 3.5.1 Quantitative analysis 23 3.6 Questionnaire design 23 3.7 Sampling and sample size 26 3.7.1 Sampling 27 3.7.2 Sample size 27 3.8 Pilot test 28 3.9 Data analysis 29 3.10 Conclusion 29 Chapter Finding and Analysis 30 4.1 Introduction 30 4.2 Descriptive Analysis 30 4.2.1 Demographic characteristic 30 4.2.2 General data analysis 31 4.3 Reliability Analysis 33 4.4 Validity Analysis 34 4.5 Research Variable Descriptive Analysis 37 4.6 Correlation Analysis 38 4.6.1 Correlation Analysis between PV and other Research Variables 38 4.6.2 Correlation Analysis between PR and Covid-19 39 4.6.3 Correlation Analysis between RI, PV and PR 39 4.6.4 Conclusion 40 4.7 Regression Analysis 40 4.7.1 Regression Analysis for PV and Other Research Variables 41 4.7.2 Regression Analysis for COVID 19 and PR 43 4.7.3 Regression Analysis for RI, PV and PR 44 4.7.4 Conclusion 46 4.8 Hypothesis test 46 Chapter Conclusions and Recommendations 47 5.1 General conclution 47 5.2 Academic contribution 48 5.3 Recommendations for industry 49 5.4 Limitation and implications for future research 49 References 51 Appendices 60 LIST OF TABLES Table 3.1: Questionnaire design 26 Table 4.1: Demographic characteristic analysis 31 Table 4.2: The number of Airbnb stay 31 Table 4.3: Airbnb stay purpose 32 Table 4.4: House type 32 Table 4.5: Geographic choice 33 Table 4.6: Reliability Analysis value 34 Table 4.7: KMO and Bartlett's Test value 35 Table 4.8: Factor Loading value 37 Table 4.9: Research Variable Descriptive Analysis value 37 Table 4.10: Correlation Analysis between PV and other research variables 39 Table 4.11: Correlation Analysis between PR and Covid-19 39 Table 4.12: Correlation Analysis between RI, PV and PR 40 Table 4.13: Model Summary for PV and Other Research Variables 41 Table 14: ANOVA of PV and PE 41 Table 15: Coefficients of PV and PE 42 Table 4.16: Model Summary of Covid-19 and PR 43 Table 4.17: ANOVA of Covid-19 and PR 44 Table 4.18: Coefficients analysis of Covid-19 and PR 44 Table 4.19: Model Summary of RI, PV, and PR 44 Table 4.20: ANOVA of RI, PV, PR 45 Table 4.21: Coefficients of RI, PV, PR 46 Table 4.22: Hypothesis test 47 LIST OF FIGURES Figure 2.1: Model conceptual 18 Figure 3.1: The Comparison between Positivistic Philosophy and Phenomenology (Amended from Collis and Hussey (2003) 21 Figure 3.2: Sampling technique (Israel 1992) 27 Figure 3.3: Sample size equation (Israel 1992) 28 Figure 4.1: Cronbach’s apha value (Tolmie et al 2011) 33 LIST OF ABBREVIATIONS SE: Sharing Economy PV: Perceived value PR: Perceived risk RI: Repurchase intention EFA: exploratory factor analysis KMO: Kaiser-Meyer-Olkin Chapter Introduction 1.1 Background to the topic The sharing economy (SE) is considered as a disruptive business model that commenced in the evolution of Internet technologies and specifically Web 2.0 (Guttentag and Smith 2017; Hall and Williams 2020) Sharing is an old concept, however, the sharing of products and services between strangers for-profit are emerging in recent decades as the emerge of digital technologies (Belk 2010; Frenken and Schor 2017) There are a range of diference terms are used interchangeably with SE such as collaborative economy or peer to peer economy (Guttentag et al 2017) In 2015, the definition of SE officially introduced from the Oxford Dictionaries as: “An economic system in which assets/services are shared between private individuals, either for free or for a fee, typically by means of the Internet” This share model is bringing change in term of shared resource, business model and customer behavior in several industries including Tourism (Pusshmann) Generally, notions of the SE in tourism can be divided into four groups, namely: transportation (e.g Uber, Grab), dining (e.g Eatwith), tour guide services (e.g Vayable), and accommodation (e.g Airbnb, Homeaway, Couchsurfing) (Ert et al., 2016) Organizations such as Airbnb position themselves as part of the sharing economy In Vietnam, Airbnb appears from 2015 and since then attracting millions of both customers and hosts whose renting their own property to tourists every day After just four year, there are more than 50.000 Airbnb listing around the country Living in and homestay such as Airbnb is a new way to create a unique experience and it is showing a sharply increase in the demand There are a number of studies have been conducted to investigate subject related to Airbnb since it is established in 2007 The common studies must be mentioned such as satisfaction experience about the Airbnb (Bai et al 2008; Fang et al 2014; Möhlmann 2015), customer motivations (Johnson 2013; Guttentag et al 2017; Tran and Filimonau 2020), some research compares Airbnb with the hotel industry (Tussyadiah and Zach 2015; McGowan and Mahon 2018; Li et al 2020) At the same time, more and more researchers interested in determining factors that could affect the repurchase intention (RI) in recent year (Matute et al 2016; Liang et al 2017; Amaro et al 2018) According to Liang et al (2017), RI can determine by comparing perceived value (PV) and perceived risk (PR) that the customer receives when booking Airbnb The researcher explores that price, unique experience and good e-word of mouth are significantly crucial to RI This result is also support for Matute et al (2016) finding regarding e-word of mouth influence toward purchase intention Meanwhile, two research of Amaro et al (2017) and Amaro et al (2018) try to build an integrated model in order to examine the interactions between multiple factors and determine how customer RI is affected 1.2 Reasons for choosing the topic 1.2.1 Academic rationale The existing literature recognises that maintaining repeat customers is especially critical for the sharing economy which also understands that important for Airbnb as these customers can effortlessly change back to the traditional business such as hotels or resorts Studying the determinants that affect the Airbnb RI is likely to help the business development in a sustainable way (Tussyadiah, 2016) Consequently, there is a necessary need to find out antecedents of the RI toward Airbnb The importance of RI has been demonstrated by many studies However, there are a few literature resources regarding the RI in Airbnb context, especially in developing countries such as Viet Nam Moreover, this study intends to investigate the RI in an unstable period which is the pandemic happened in this recent time There is some risk assessment research from An et al (2010), Chiu et al (2014) and Jun (2020) related to tourism that the researcher believes could apply and adapt to build a new model for this study Hopefully, this study can fulfil the gaps in the literature, as well as the results of the research, can help to gain a better comprehension about this area and motivate further research on this topic in future 1.3 Industry rationale Despite the outstanding reputation of Airbnb in the tourism and hospitality industry globally, the research of Airbnb RI until now has been barely measured and its investigation is limited to a few popular urban centres (Bong and Seo 2018) In the current intensely emulous digital economy context, consumer's repurchase intention has emerged as a highly crucial component among online vendors and firms (Jun 2020) For example, from a marketing point of view, the cost of retaining an old customer is equal five times the cost of attracting a new one, therefore, the main task of eCommerce businesses today has shifted from attracting new customers to increasing loyalty to drive repeat buying intentions Likewise, some research shows that when customer loyalty increases 5%, profits of business can increase from 25% to 75% (Amanda 2014), thus it is important to find the factors that affect the RI of online shopping consumers 1.4 Research aim and objectives The main purpose of this study is to “explore and identify the factors that influence Vietnamese travellers’ Airbnb repurchase intention in the post-pandemic (COVID-19) context.” Hence, the following objectives need to be achieved: Following the order as in chapter 4, the analyzes process is conducted three separately analysis includes: Firstly, the relationship between PV and factors including economic, usefulness, home benefit, host-guest relationship and authenticity was studied The results from correlation analysis and regression analysis showed that all variables were confirmed to have a positive impact on PV These conclusions are consistent with the result with the previous studies (Wu and Chang 2007; An et al 2010; Chiu et al 2012; Fang et al 2014; Matute et al 2016; TalónBallestero et al 2019) On top of that, the host-guest relationship surprisingly shows the greatest impact Secondly, the analysis of Covid-19's impact on PR was examined, indicating support assumption that this pandemic increase customer PR This finding consistent with recent studies about the impact of the pandemic to customer behaviour of Wen et al (2020) and UNWTO (2020) Thirdly, in order to check the relationship between PV, PR and RI, factor analysis was made separately for each variable The results explained that only PV positively related to RI while PR negatively related to RI Meanwhile, the impact of PR on RI is relatively low according to the ratio Therefore, the Airbnb organisers may see obviously impact from the pandemic to customer behaviour Following, the recommendations will be provided in the next section 5.2 Academic contribution The review of the literature indicates there are many studies that examine on RI, how the experience of customer influences the customers perceived and leads to purchases intention Liang et al (2017) study posited that e-word of mouth and perceived authenticity have a notable influence on PV and price-sensitive affect PR, which is both directly impact RI In addition, numerous studies examined the RI base on customer satisfaction (Bai et al 2008; An et al 2010; Fang et al 2014; Möhlmann 2015; Liang et al 2018) With it not being common to focus on the PV and PR relationships with RI While particular with the new market such as homesharing sector, the Host of Airbnb have only got a little direction from utilising hotel strategies into their business strategies since there are several studies related to hotel industry (Guttentag 2019) Therefore, this study focuses on the particular factors which are assumed that may affect RI during literature research Additionally, there are only a few studies on RI as they are related to Airbnb market in developing countries such as Vietnam Thus, this study has explored the Airbnb market in Vietnam Apart from that, Covid-19 pandemic happening around the world also need to be examined since it directly associated with tourism and hospitality 48 5.3 Recommendations for industry This study sheds lights on the understanding of existing user behaviour and improving Airbnb competition by giving insights to both the Airbnb developers and Airbnb hosts Airbnb website developers should enhance users’ attitudes toward the usefulness regarding the website Most customers think the website useful if it is understandable, convenient to use search engine to look for a suitable accommodation Hence, the website should be displayed with a user-friendly interface, effective and smoothy booking method (Wang and Jeong 2018) Multi-device accessible (such as Laptop, PC and mobile app) are also recommended as one of customer preference when shopping online nowadays (White et al 2019) Providing updated information, trustworthy, and reliable information about the property can increase customers’ perception toward the Airbnb website (Wang and Jeong 2018) Several useful implications for Airbnb hosts who are fascinated in improving the value of their property is shown in the study First, tourists tend to seek an authentic experience in which they can connect to the local They value the lifestyle into the house and local community contributed by the Host, which is proved that significantly impact their PV and PR for the future repurchasing behaviour Airbnb administrators can try to adapt the authenticity elements in their marketing strategy as a unique feature that offer by the local host (Liang et al 2017) At the same time, amenities and utilize belong to the property also consider as an important factor to increase customer PV and leading to buying intention The unlike-hotel facilities bring a unique experience to tourist that should also advertise widely Second, consumer’s perceived to price play a principal reason to choose to stay at Airbnb according to the findings This can be valuable for industry specialists when building a competitive price strategy (Amaro et al 2018; Tran and Filimonau 2020) Last but not least, due to the critical impact caused by the Covid-19 pandemic The Airbnb developer should respond in a timely and positive manner for cleanliness safety standards, reservation and cancellation policies in response to the rapid change of the current pandemic situation (Dolnicar and Zare 2020; Watson 2020) 5.4 Limitation and implications for future research The sample size is limited to users that are Vietnamese and have previous stayed with Airbnb People who have not experient with Airbnb may have different perceptions, either with the website or with the hosts Consequently, the results only revealing the majority of Airbnb users rather than all population 49 Besides, the outcomes may have been shaped by method bias Although examinations were carried to test for this bias, inherent bias from the writer in developing the survey still exists Furthermore, future studies should try to measure different factor and compare the differences with this model as well as other geographical areas to extend the generalizability of the model Additionally, the survey was only carried out online through social media, so there is a limitation that only users which were using social media in the period from 22nd of August until 3rd of September were reached, which neglected the opinions of people who have stayed at Airbnb but not use the internet regularly Different survey approaches will avoid this issue and give a more comprehensive outcome Finally, the study only proves that pandemics have an influence on intentions to stay at Airbnb again, however, it has not explored in-depth the influence of pandemic-related factors which could affect the Vietnamese decision to choose Airbnb Moreover, the pandemic is still happening globally and there are no signs of ending, so the effects and the extent of the impacts are not really clear The later studies can wait until the end of the pandemic to assess the changes in consumer behaviour, particularly in the homesharing sector 50 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