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A study on the influence of purchase intentions on repurchase decisions: the moderating effects of reference groups and perceived risks

Long‐Yi Lin (Assistant Professor, Graduate School of Management Sciences, Aletheia University, Taipei, Taiwan)
Yeun‐Wen Chen (General Manager, Olé Travel Service Co. Ltd, Taipei, Taiwan)

Tourism Review

ISSN: 1660-5373

Article publication date: 28 August 2009

8275

Abstract

Purpose

The purpose of this paper is to focus on the influence of purchase intentions on repurchase decisions, and also to examine the moderating effects of reference groups and perceived risks.

Design/methodology/approach

The travelers on Taiwan tourist trains were surveyed. Convenience sampling was used to collect primary data. A total of 1,200 questionnaires were distributed and 1,155 effective samples were collected. The effective return rate was 96 percent. Regression analysis was used to test hypotheses.

Findings

The paper finds that; purchase intentions will have a positive effect on repurchase decisions: the higher the informational reference group influence, the greater the positively moderating effect between purchase intentions and repurchase decisions; the higher the value‐expressive reference group influence, the greater the positively moderating effect between purchase intentions and repurchase decisions; and the higher the psychological risk, the greater the negatively moderating effect between purchase intentions and repurchase decisions.

Research limitations/implications

Limitations of the study are: the research targets the travelers on tourist trains. Consequently, it is less efficient in external validity due to the limited scope; the conceptual limitation needs to be elaborated more; and, since the research adopts the cross‐sectional research method without longitudinal section study it may be limited in the generalization. The moderating effects of reference groups and perceived risks have been examined on the inconsistency between purchase intentions and repurchase decisions in the study.

Practical implications

In tourism, reference group influence can provide the opportunity for individuals to communicate with group members in sharing the experiences of a destination and selection of a particular purchasing decision. The sole moderating effect of psychological risk has been verified among three dimensions. Therefore, the measurement and enhancement are critical for marketers to handle future business.

Originality/value

The extra value of the paper is to combine theory and practice together, and verify the moderating effects of reference groups and perceived risks between purchase intentions and repurchase decisions.

Keywords

Citation

Lin, L. and Chen, Y. (2009), "A study on the influence of purchase intentions on repurchase decisions: the moderating effects of reference groups and perceived risks", Tourism Review, Vol. 64 No. 3, pp. 28-48. https://doi.org/10.1108/16605370910988818

Publisher

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Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited

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