Customer's adoption intention of Hotel X's Mobile Reservation Application

Abstract

Diffusion process is how an innovation is adopted and communicated within a social society. Hotel Mobile Reservation Application is a necessary step for a brand to establish connection with customers, develop brand attachment and brand identity. Hotel X's newly introduced its own branded mobile application targeted exclusively to their Loyalty Program’s members. As a significant innovation, researchers chose Hotel X as the targeted subject for this re-search. The aim of the research is to study Hotel X’s customers attitude toward adopting mobile app and identify attributes that influent this attitude. Since the loyalty program targets directly to Finnish business travellers, the research is conducted to Finnish customers solely. In order to measure customers’ attitude, the research uses quantitative research and Likert-scale questions regarding 6 characteristics of an innovation and attitude. In addition, there are multiple choice questions to distinguish demographics and specify mobile app usage behaviour. Among 6 characteristics, Compatibility, Perceived Usefulness, Risk, Perceived Ease of Use and Observability are found to have significant relationship with customers’ attitude toward using mobile app. Meanwhile Image is the only attribute with no significant relationship. The research also analyses customer’s decision based on 3 categories: adopter, postponer and rejecter. Demographics also able to justify the difference in decision regarding mobile app’s usage. A few suggestions are also made on communication channels of the mobile apps, pull and push effect and improving the perceived value of the mobile apps