Understanding Repurchase Intention of Airbnb Consumers: Perceived Authenticity, EWoM and Price Sensitivity
The main purpose of this paper is to extend the research on consumer repurchase intention, perceived value and perceived risk into the realm of the peer-to-peer economy, specifically in the context of Airbnb. Building on the prospect theory and means-end chain theory, we present a series of research propositions to explore the relationships among perceived risk, perceived value and repurchase intentions. Furthermore, this study identified three antecedents: perceived authenticity, electronic word-of-mouth and price sensitivity through a content analysis, producing an extended model. 395 surveys were collected via a panel based in Canada and the United States. The results showed that perceived risk negatively impacts Airbnb consumers’ perceived value and repurchase intention while perceived value positively enhances their repurchase intention. Interestingly, price sensitivity was found not to reduce customers’ perceived risk but it can improve their perceived value and positively influence them to repurchase the Airbnb products. Perceived authenticity was found to have a significant effect in reducing Airbnb consumers’ perceived risk and positively influences their perceived value. Electronic word-of-mouth has a positive effect on repurchase intention as well as perceived value whereas negatively affect perceived risk. Theoretical and managerial implications are discussed and future study direction was offered.