AN EVALUATION OF THE IMPACT OF AFFILIATE MARKETING ON CONSUMER TRUST AND LOYALTY IN TRAVEL-RELATED AFFILIATE PLATFORMS

CHAPTER ONE INTRODUCTION 1.1 Background of the Study As the global adoption of internet-based media continues to rise, internet marketing has gained increasing significance due to its capacity to directly reach consumers across borders and its vast array of online options. Among the many digital marketing strategies available, affiliate marketing has emerged as one of the most effective tools for generating leads. The concept of affiliate marketing gained traction in 1996 when Amazon pioneered a program that compensated websites for directing traffic to its platform (Dabs & Manaktola, 2019). Before the advent of the internet, companies in the travel industry—including airlines and hotels—utilized global distribution systems (GDS) to broaden their market reach, effectively laying the groundwork for modern affiliate marketing practices (Dale, 2019). The tourism sector was among the earliest industries to realize the transformative potential of information technology, leveraging it to increase visibility, expand market reach with 24/7 accessibility, and address long-standing industry challenges such as seasonality (Inkpen, 2018; Werthner & Klein, 2019). In today’s digital landscape, affiliate marketing is widely embraced by e-commerce platforms (Oberndorf, 2019), with industry analysts predicting its continued expansion as a key driver in customer acquisition (Gregori & Daniele, 2021). Among its advantages are cost-effectiveness and the ability to track consumer behavior and responses to marketing campaigns with precision (Fox & Wareham, 2018). In the travel industry, affiliate marketing typically involves partnerships between travel agencies and third-party promoters—bloggers, website operators, or social media influencers—who promote travel products and services through their digital platforms. These affiliates earn commissions for generating leads or sales for travel agencies. The digital travel market has experienced rapid growth; according to Internet Business Statistics (2022), more than 38% of travel bookings are now made online rather than through traditional travel agencies. Travel companies rely heavily on the credibility and reach of affiliates to enhance brand visibility and foster consumer trust (Evans, 2018). Key factors influencing the success of such partnerships include the affiliate’s reputation, transparency in marketing practices, and the quality of user experience on affiliate platforms. In digital commerce, trust plays an even more critical role than in traditional marketplaces—and is more difficult to establish (Head & Hassanein, 2022). Trust reduces consumer uncertainty and risk, thereby enabling them to engage in three vital behaviors: making purchases, sharing personal data, and acting on vendors’ recommendations. As both researchers and industry professionals have recognized, consumer trust is a vital element in cultivating and maintaining long-term customer relationships (Sisson, 2020; McKnight et al., 2022). Rauyruen et al. (2019) argue that trust is fundamental to building effective service relationships and fostering loyalty. Online loyalty, as defined by Butcher et al. (2021), refers to a customer’s long-term psychological commitment to a particular vendor or service provider on digital platforms. Moreover, trust is essential for creating and maintaining consumer relationships and is often influenced by perceptions of credibility and reliability of the affiliate marketers (Papadopoulou et al., 2021; Chen, 2018). Affiliates who deliver transparent, accurate, and relevant information about travel offerings are more likely to gain the trust of their audiences. Conversely, unethical practices or the promotion of inferior products by affiliates can severely undermine consumer trust—not only in the affiliates themselves but also in the travel brands they represent (Mukherjee & Nath, 2019). Therefore, maintaining transparency, ethical marketing practices, and high-quality content is imperative for sustaining consumer trust and loyalty. This study, therefore, aims to evaluate the extent to which affiliate marketing influences consumer trust and loyalty within the context of travel affiliate websites. 1.2 Statement of the Problem One of the most pressing issues confronting online consumers, particularly in the travel industry, is the challenge of trust when making bookings. Many internet users regard pop-up advertisements and spam as intrusive, raising concerns about data privacy in an increasingly dynamic online environment (Drozdenko & Drake, 2022). Tarasofsky (2019) attributes high failure rates and poor performance among online businesses partly to the underutilization of digital marketing tools. Travel affiliate websites, in particular, encounter a range of challenges that adversely affect consumer trust and loyalty. For instance, inadequate internet infrastructure and the high cost of data limit user access—especially in rural or underserved areas—causing frustration and diminishing the perceived reliability of these platforms. In addition, unresolved issues relating to online security and data privacy further deter users from engaging with travel affiliate websites. Addressing these infrastructural and digital security challenges is critical for fostering and sustaining user trust and brand loyalty in this sector. While numerous studies have explored the determinants and consequences of online trust, there remains a noticeable gap in literature specifically focused on trust within the context of affiliate marketing platforms. This study thus seeks to contribute to the academic discourse on digital marketing by examining how affiliate marketing influences consumer trust and loyalty in the realm of travel affiliate websites. 1.3 Objectives of the Study The main purpose of this study is to evaluate the Impact of Affiliate Marketing on Consumer Trust and Loyalty in Travel-Related Affiliate Platforms. Specifically, the study will; i.Determine the extent to which reviews influence consumers' trust in travel affiliate web sites. ii.Examine how effective affiliate marketing strategies are in fostering consumer loyalty to travel affiliate websites. iii.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: i.What is the extent to which reviews influence consumers' trust in travel affiliate websites? ii.How effective are affiliate marketing strategies in fostering consumer loyalty to travel affiliate websites? iii.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 Impact of Affiliate Marketing on Consumer Trust and Loyalty in Travel-Related Affiliate Platforms. 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.