Internet as a Distribution Channel: Empirical Evidence from the Service Sector and Managerial Opportunities

Abstract

This study seeks to explain the intentions to use the Internet to make a hotel reservation by applying the Technology Acceptance Model (TAM). The model is extended with other variables, such as subjective norms, Web site trust, perceived risk, and quality signals. The results obtained using a sample of 795 Internet users demonstrate the influence on purchasing intention of perceived utility, subjective norms, Web site trust, and signalling mechanisms to diminish risk. Firms using e-commerce should consequently design their Web sites with market orientation in mind in order to obtain a competitive advantage that will enhance profit, brand image, and reputation.

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