AN ASSESSMENT OF THE INFLUENCE OF AFFILIATE MARKETING ON CONSUMER TRUST AND LOYALTY IN TRAVEL AFFILIATE WEB SITES

CHAPTER ONE

INTRODUCTION

Background of the Study

Given its greater ability to directly target customers worldwide and its abundance of online options, internet marketing has become increasingly important as global online media adoption rates rise. One of the most popular promotional methods for lead creation in digital marketing is affiliate marketing. When Amazon began paying websites for referring users to join their website in 1996, affiliate programs first emerged (Dabs & Manaktola, 2019). Prior to the internet, aeroplanes, hotels and other travel companies enhanced the notion of affiliate marketing by using global distribution systems (GDS) to reach a wider audience (Dale, 2019). One of the first industries to recognise that information technology advancements allowed businesses to raise awareness, expand their market share by providing 24 hour online access to both current and potential tourists, and provide solutions to traditional industry issues and seasonality was the tourism sector (Inkpen, 2018; Werthner & Klein, 2019). 

Affiliate marketing is widely used by internet retailers (Oberndorf, 2019), and industry observers anticipate that it will grow to be a significant means of attracting new clients (Gregori & Daniele, 2021). Numerous benefits come with affiliate marketing, such as its affordable price and its capacity to precisely monitor website visitors' behavior and reactions to certain promotional offers (Fox & Wareham, 2018). 

In the travel sector, affiliate marketing refers to collaborations between travel agencies and marketers who use their websites, blogs, or social media accounts to advertise travel-related goods and services. When these affiliates bring in business or make sales for the travel agencies, they get paid commissions. However, the growth rate of the online travel sector is incredible. According to Internet Business Statistics (2022), over 38% of travel arrangements are now made online rather than through a traditional travel agency. Also, with the help of affiliates' audiences' trust and influence, travel companies increase their reach and capitalise on their audiences' trust (Evans, 2018). A number of variables, such as the affiliates' reputation, the affiliate marketers' openness, and the user experience on affiliate websites, affect how well these alliances work to build customer loyalty and trust.

Unarguably, trust is considerably more important for success in an electronic commerce environment than it is in a traditional one, and it is also harder to establish (Head & Hassanein, 2022). By overcoming their feelings of risk and uncertainty, customers who are trusted are able to follow three actions taken by the vendor: paying for products from the vendor's website, providing personal information with the vendor, and taking advise from the vendor. For researchers as well as practitioners, trust is essential (Sisson 2020; Mcknight et al. 2022). According to Rauyruen et al. (2019), trust is thought to be a key component in the growth of fruitful service relationships in marketplaces as well as the accomplishment of customer loyalty. An enduring psychological attachment by a customer to a certain online vendor or service provider has been defined as online loyalty (Butcher et al. 2021).  Furthermore, trust is a necessary precondition for building and preserving connections with customers (Papadopoulou et al. 2021; Chen, 2018). It can be influenced by the perceived credibility and reliability of the affiliate marketers. Affiliates who provide accurate, honest, and relevant information about travel products and services are more likely to gain the trust of their audience.

 Conversely, affiliates who engage in deceptive practices or promote substandard products can damage consumer trust, not only in themselves but also in the travel companies they represent (Mukherjee & Nath, 2019). Therefore, maintaining high ethical standards and transparency in affiliate marketing is essential for building and sustaining consumer trust and loyalty. Therefore, a survey will be conducted in order to the assess the influence of affiliate marketing on consumer trust and loyalty in travel affiliate web sites.

1.2 Statement of the Problem

In recent times, that the biggest obstacle that users face when making bookings online is trust. Since pop-up advertising and spas are viewed as invasions of privacy by the majority of Internet users, information privacy concerns are critical in light of the rapidly changing nature of the internet (Drozdenko & Drake, 2022). Tarasofsky (2019) notes that a high business mortality rate and subpar performance are also caused, among other things, by a lack of use of digital marketing tools. Additionally, travel affiliate websites face challenges that influence consumer trust and loyalty. Poor internet infrastructure and high data costs prevent consumers from accessing these websites, especially in rural areas. This limited access negatively impacts consumer trust and loyalty, as potential customers may experience frustration and inconvenience. 

Furthermore, security and privacy issues on travel affiliate websites can deter consumers from engaging, further affecting their trust and loyalty. Ensuring stable power supply and addressing security and privacy concerns are crucial for building and maintaining consumer trust and loyalty in the travel affiliate marketing sector. Numerous research attempted to investigate and validate the determinants as well as the implications and outcomes of visitors' online trust. The literature on trust in the context of affiliate websites is lacking, nevertheless. This research adds to the body of knowledge regarding affiliate marketing and online trust. Hence, it is in the light of these that the study seeks to assess the influence of affiliate marketing on consumer trust and loyalty in travel affiliate web sites.

1.3 Objectives of the Study

The main purpose of this study is to assess the influence of affiliate marketing on consumer trust and loyalty in travel affiliate web sites. Specifically, the study will;

1.Determine the extent to which reviews influence consumers' trust in travel affiliate web sites.

2.Examine how effective affiliate marketing strategies are in fostering consumer loyalty to travel affiliate websites.

3.Evaluate the affiliate marketing strategies enhancing consumer trust in travel affiliate Web sites.

1.4 Research Questions

The following questions have been prepared for the study:

What is the extent to which reviews influence consumers' trust in travel affiliate websites?

How effective are affiliate marketing strategies in fostering consumer loyalty to travel affiliate websites?

What affiliate marketing strategies enhance consumer trust in travel affiliate websites?

1.5  Research Hypotheses

H0: Affiliate marketing has no significant influence on consumer trust and loyalty in travel affiliate websites.

Ha: Affiliate marketing has a significant influence on consumer trust and loyalty in travel affiliate websites.

1.6  Significance of the Study

The findings of the study will assist companies and marketers in creating marketing plans that are more successful. Customers will also be able to make better decisions since they will be more conscious of the factors influencing their purchasing intentions. Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard the  influence of affiliate marketing on consumer trust and loyalty in travel affiliate web sites.

1.7 Scope of the study

The scope of this study is boarded on the influence of affiliate marketing on consumer trust and loyalty in travel affiliate web sites. Geographically, the study will be delimited to residents of Asaba metropolis.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Affiliate marketing: A marketing strategy where affiliates promote products or services offered by a business through their own marketing efforts.

Marketer:An individual engaged in promoting and selling products or services.

Travel Websites:Online platforms dedicated to providing information, booking services, and reviews related to travel. These websites offer services such as flight and hotel bookings, travel itineraries, destination guides, and travel-related products.