The effects of brand and online reviews on consumer trust and purchase intentions in developing countries: The case of the online travel agencies in Brazil

Abstract

Intensive use of social media has helped online travel agencies (OTAs) to identify what things consumers find more relevant when planning their vacations online. Several online companies have emerged and started competing with well-established players in this market. However, unlike in developed countries, where online tourism seems to have already reached maturity, in emerging countries - such as Brazil - the e-market is still tiny, but with great potential. In this study, we analyze the effects of brand and online reviews on consumer trust and purchase intention for OTAs in Brazil. We conducted a 2 x 2 factorial design experiment comparing well-known and lesser-known brands with the presence (or not) of online reviews. Our results indicate that brand equity is the primary driver of trust, although online reviews are very important to consumers of lesser-known brands. We also confirmed qualified antecedents of trust that drive consumer's purchase intention. The study provides useful information for start-ups, small businesses, and larger and well-known companies to set up their e-commerce strategies.