Factors Affecting Customers’ Online Purchasing Decision A Study on Five-Star Hotels of Addis Ababa
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Date
2019-05
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Addis Ababa University
Abstract
Online shopping has increased significantly worldwide. Ethiopia has also experienced an increase in online shopping however, it seems to lag behind the rest of the world where this development is concerned. Research into the factors which affect customers’ online purchasing decision is thus imperative in order for Ethiopian hotels to develop the correct marketing strategies for online sales of their accommodation products and services. This research investigates the factors that affect customers’ online purchasing decision in the case of five-star hotels of Addis Ababa, Ethiopia. A sample of 350 online accommodation purchasers were used and quantitative research was conducted by means of a structured questionnaire. It was found that online customers’ review, online price, and website quality, were viewed by customers as the most important reasons for online purchasing decision, while e-payment, and trust and security were viewed as the least important factor for customers’ online purchasing decision in five -star hotels of Addis Ababa, Ethiopia. The research results partially confirmed the model developed by the researcher. Results of the study, as well as recommendations for future research, are presented.
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Keywords
e-payment, customers’ review, booking