Social Media Communication & Information Adoption: An Implication of Luxury Accommodation Consumption Behavior Among Consumers

Abstract

Introduction: Tourism plays a huge role in boosting Indonesia’s economy. Bali stands out as an attractive tourist centre. Bali's tourism industry has experienced tremendous development, especially in the consumption of the luxury accommodation market.

Objectives: Therefore, this research is important to find out what factors influence consumer behaviour in the luxury accommodation market.

Methods: Respondents were exclusively selected and after data collection, a total of 457 responses could be used as the research sample. Data were evaluated using Partial Least Squares Structural Equation Modelling to explore the direct impact and moderator impact. This finding shed light on the fact that argument quality and source credibility have a positive effect on luxury accommodation consumption, UGC (User-Generated Content) and FGC (Firm-Generated Content) moderate the association between source credibility, argument quality, and luxury accommodation consumption.

Results: This finding shed light on the fact that argument quality and source credibility have a positive effect on luxury accommodation consumption, UGC (User-Generated Content) and FGC (Firm-Generated Content) moderate the association between source credibility, argument quality, and luxury accommodation consumption.

Conclusions: The providers of luxury accommodations need to enhance the quality of information or arguments they communicate and improve the credibility of their information sources. It is necessary for luxury accommodation providers to increase the likelihood of users providing information to other users, such as by providing a forum platform discussing their stay experiences, thus influencing other consumers and potential consumers.