The Effect of Social Media on Customer Trust and Decision-Making Behavior in the Hotel Industry

Abstract

This study intended to investigate the effect of social media on customer trust and decision-making behavior in the hotel industry. Methodologically, the study employed a descriptive and explanatory research design with a quantitative research approach. The data were collected from 295 samples drawn based on available sampling techniques. SEM was used to test the hypothesized relationships, causations, and interdependence. The findings revealed that social networking, microblogging, content communities, and customer review and rating sites significantly affect customer trust and decision-making behavior. Similarly, customer trust significantly affects customer decision-making behavior. It has been recommended that improving reputation and website quality especially information may increase customers’ trust and eventually lead to decisions.