Presentation formats of policy statements on hotel websites and privacy concerns : a multimedia learning theory perspective

Abstract

Information privacy is one of the major reasons that explains why many travelers are hesitant to provide personal information for online reservations. Despite the fact that most hotels provide privacy policy statements on their websites, little research has been done to examine how the format of these privacy statements affects customer trust. Based on the control/restricted theory and cognitive theory of multimedia learning, this study demonstrates how perceived control and learning can affect trust. Participants were shown validated privacy policy statements in a text format or a video format before they rated the trustworthiness of the hotel. The findings from 193 usable samples confirmed that the video was more effective in increasing trust and that it did so by increasing perceived control. The results suggest that hotel companies without a strong brand history can still establish customer trust by providing a well-located, well-executed, and easily understood online video privacy statement. Theoretical and managerial implications are discussed, and future research suggestions are provided.