The impact of purchase channel knowledge on perceived transaction value: an analysis of online hospitality reservation services

Abstract

This study explores the impact of consumer knowledge of online reservation channels on perceived transaction value within the hospitality sector, revealing a U-shaped relationship for flights and hotels, but not for travel activities. Survey data from 437 flight, 327 hotel, and 153 activity reservations via a major Korean travel agency were analyzed using ordinal logistic regression, with controls for demographics, travel characteristics, and past experience. Results suggest that limited channel knowledge increases price satisfaction due to overconfidence, while extensive knowledge boosts satisfaction through effective price comparisons. The absence of a clear relationship in travel activities indicates that experiential factors may outweigh price considerations. By applying insights from behavioral economics, such as the Dunning-Kruger effect, this study extends the understanding of consumer search behavior and offers practical implications for market segmentation and pricing strategies in the hospitality industry.