Value co-creation in mobile payment : analysing destination stakeholders through means-end chain approach

Abstract

As Asia and the Pacific's most significant and fastest-growing market, Chinese outbound tourism is challenged by the lack of cashless payment methods at destination countries, given the ubiquity of mobile payment technologies among Chinese tourists. This study investigates how value can be co-created among destination stakeholders. Mobile payment usage behaviours at the in-trip stage reveal 'group harmony' and 'thrift' is among the underpinning key cultural characteristics of Chinese tourists. Arguably, the social construction of 'mobile payment' is crucial in understanding the application of the value co-creation concept within a retail setting at destinations. Therefore, the role of cultural values in decision-making as a central aspect of consumer behaviour should be a core discussion in tourism studies, especially when considering destination marketing and promotions. This study was conducted in Sabah (Malaysian-Borneo), one of the 'Top 10 Islands' most visited by Chinese tourists in 2017 (Ctrip & China Tourism Academy, 2018), from January to August 2020. A qualitative methodology under the social constructionist paradigm was adopted, where data were collected from destination stakeholder categories; 1) Government agencies and tourism associations (GA), 2) Tourism practitioners (TP), 3) Residents (LR), and 4) Chinese tourists (CT). The means-end chain (MEC) approach (laddering technique) formed the analysis of 35 in-depth interviews. The "Mobile Payment Usage Behaviour" (MPUB) framework was developed from groups and individual opinions built on themes and the attributes (characteristics), consequences (benefits) and values (created or achieved) from using mobile devices as a primary payment method during travel. The MPUB framework highlights value co-creation between merchants through technology adoption of mobile payment facilities based on task-fit and Chinese tourists' efficacy and outcome expectations in mobile payments (based on the availability of mobile payment facilities) at the tourism retail setting. Moreover, this study presents six types of Chinese tourist profiles based on MPUB and its associated cultural and consumption values, which can be beneficial for destination stakeholders, especially the TP category, in marketing for Chinese tourists for retail consumption. Overall, value co-creation is subject to the intricate yet symbiotic relationship between destination stakeholders and Chinese tourists through negotiated understandings of mobile payments at destinations.