MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYỄN NGỌC TƯỜNG VI PERCEIVED RISK, ATTITUDE TOWARDS AIRLINE E TICKET PURCHASE INTENTION MASTER THESIS Ho Chi Minh City[.]
MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYỄN NGỌC TƯỜNG VI PERCEIVED RISK, ATTITUDE TOWARDS AIRLINE E-TICKET PURCHASE INTENTION MASTER THESIS Ho Chi Minh City – 2011 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYỄN NGỌC TƯỜNG VI PERCEIVED RISK, ATTITUDE TOWARDS AIRLINE E-TICKET PURCHASE INTENTION MAJOR: BUSINESS ADMINISTRATION MAJOR CODE: 60.34.05 MASTER THESIS INSTRUCTOR: PROF NGUYỄN ĐÌNH THỌ Ho Chi Minh City – 2011 ACKNOWLEDGEMENT I would like to express my deepest gratitude to my research Instructor, Prof Nguyen Dinh Tho for his intensive support, valuable suggestions, guidance and encouragement during the course of my study I would like to express my sincere gratitude to all of my teachers at Faculty of Business Administration and Postgraduate Faculty, University of Economics Ho Chi Minh City for their teaching and guidance during my MBA course I would like to specially express my thanks to all of my classmates, my friends from www.caohockinhte.vn for their support and encouragement I would also like to avail this opportunity to express my appreciation to Prof Nguyen Dinh Tho, UEH Board of Directors for creating MBA program in English and Dr Tran Ha Minh Quan for his support during the course Finally, I heartily dedicate this study to my beloved parents and my husband, Tran Hao Hiep who have always sacrificed to encourage and support me during my study ABSTRACT Nowadays, Internet makes getting a ticket more convenient since the service is available at any geographical location at anytime, any day so that number of consumers who book travel tickets online is growing When airlines shift from paper-based ticket to e-ticket, customers’ acceptance will become important for both sides: companies and buyers A high perceived risk level implies that consumers expect the service purchased online leads to a reduction in perceived benefits Any risk perceptions affect consumers’ willingness to book tickets over the Internet negatively Because the problem discussed above, there was a need for further investigation into the area The target of this research was examining the influence of perceived risk on customer behavior This study analyzed the types of perceived risk when considering buying tickets through Internet The result showed that the perceived risk factors that would affect to the intention to buy tickets online in Ho Chi Minh City is financial risk, psychological risk, time risk and convenience risk TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 Background 1.2 Problem statement 1.3 Research objectives 1.4 Scope and research methodology 1.5 Structure of study CHAPTER 2: LITERATURE REVIEW 2.1 2.2 Perceived risk 2.1.1 Financial risk 2.1.2 Psychological risk 2.1.3 Time risk 2.1.4 Convenience risk Passenger attitude towards e-ticket purchase and purchase intention CHAPTER 3: RESEARCH METHODOLOGY 12 3.1 Research process 12 3.2 Questionnaire and scale design 12 3.3 Sampling method 15 3.4 Data collection and analysis method 15 3.4.1 Data collection method 15 3.4.2 Data analysis method 16 CHAPTER 4: RESEARCH RESULTS 18 4.1 Descriptive statistics 18 4.2 Reliability test 18 4.3 Exploratory Factor Analysis (EFA) 20 4.4 ANOVA test 23 4.4.1 Comparison of different ages 23 4.5 4.4.2 Comparison of different genders 24 4.4.3 Comparison of different levels of education 25 Regression analysis 26 CHAPTER 5: CONCLUSIONS 29 5.1 Conclusions 29 5.2 Managerial implications 31 5.3 Research limitations 33 REFERENCE LIST 35 APENDIX A: OFFICIAL QUESTIONNAIRE (ENGLISH VERSION) 38 APENDIX B: OFFICIAL QUESTIONNAIRE (VIETNAMESE VERSION) 41 APENDIX C: CRONBACH’S ALPHA ANALYSIS 44 APENDIX D: EXPLORATORY FACTOR ANALYSIS 49 APENDIX E: ANOVA TEST 53 APENDIX F: REGRESSION ANALYSIS 56 LIST OF FIGURE Figure 2.1: Research model 10 Figure 4.1: PATH analysis 29 LIST OF TABLE Table 3.1: Measurement scale 13 Table 4.1: Sample Information Resume 18 Table 4.2: Summary of reliability test results 20 Table 4.3: KMO and Bartlett’s Test 21 Table 4.4: Rotated Component Matrix 22 Table 4.5: KMO and Barlett’s Test 23 Table 4.6: Total Variance Explained 23 Table 4.7: Descriptive 24 Table 4.8: Test of Homogeneity of Variances 24 Table 4.9: ANOVA 24 Table 4.10: Group Statistics 25 Table 4.11: Independent Samples Test 25 Table 4.12: Descriptive 26 Table 4.13: Test of Homogeneity of Variances 26 Table 4.14: ANOVA 26 Table 4.15: Model Summary 27 Table 4.16: Coefficients 27 Table 4.17: Model Summary 27 Table 4.18: Coefficients 28 CHAPTER 1: INTRODUCTION 1.1 Background As the rising power of Internet, the new trends to operate business are called ecommerce, e-marketing and e-business Purchasers use the Internet not only to buy the products or services online but also to compare prices, product features and after sale service facilities Companies also use Internet to convey, communicate and disseminate to sell the products or services, to take feedbacks and also to conduct satisfaction surveys with customers The most popular form of trading via the Internet was the sale and purchase of goods and services on e-commerce websites According to Lau (2011), by the end of 2009, trading via e-commerce websites has become popular for several categories of goods and services such as flight tickets, electronics goods, mobile phones, computers, books, tourism tours, hotel reservations… In order to meet consumers’ demand, enterprises also applied flexible delivery and payment methods, from online payment, bank transfer to cash on delivery Besides from professional e-commerce websites, recently, many social networks and forums also appeared and attracted a hundreds of thousand members With big numbers of participants, they are becoming a potential market for businesses In the context of development, online purchase of goods and services is becoming a visible trend and will grow rapidly in the coming time when online payment becomes more popular and familiar with consumers Many industries have been turning trading to the Internet including the airline industry There were more trips being booked over the Internet since online users have become more and more accustomed to this new online reservation system and it is also a cheaper and convenience way Nowadays, the customers are able to check in and choose the seat online At the same time, they can also find other services in the website such as the hotel reservation and car rental (i.e the website of Air Asia and Jetstar, etc) E-commerce in Vietnam also confirmed its important role as the tool to help enterprises reduce operation cost and improve competitiveness in the increasingly competitive global market As a survey by the Ministry of Industry and Trade in 2004 enterprises throughout the country in 2009, it showed that nearly 100% of enterprises implement e-commerce application at different scale and levels The highlight of ecommerce application in 2009 is the increasing rate of enterprises utilizing e-commerce software for production and business activities Most of enterprises have also been aware of and started to use public services provided by state agencies The efficiency of business’ e-commerce application in 2009 has been obvious Only 5% of total cost was spent for e-commerce and information technology investment, on average 33% of business revenue came from orders via electronic means Ticket online reservation can be considered as a typical example of e-commerce in Vietnam in trade integration process Through this service, the tickets can be ordered from anywhere and anytime via Internet system Tickets are located through the airline’s website and customers are provided all information relating to booking services and trading Thus, the application will bring comfort and ease for purchasers while helping for cost savings, enhancing customer satisfactions In recent years, especially since lowcost airlines were applied the transportation market in Vietnam such as Tiger Airways, Air Asia, Jetstar…, there has been begun an e-ticket trade system because this is one of the major factor for cutting the cost, reducing the price, and attracting more customers This service type has met the client’s needs and is a developing trend in Vietnam market The selling of electronic air tickets in Vietnam is in accordance with the International Air Transport Association’s itinerary of implementing e-ticket service worldwide On the Vietnamese front, the concept was first initiated by Jetstar Pacific Airline in March 2006 And nowadays, all activities including booking, purchasing, printing and payment are conducted through Internet According statistical figure of Jetstar in 2009, online purchasers and e-transaction is reached 77% total of clients In December of 2008, Vietnam Airlines also used Internet for selling tickets Compared to other online shopping transactions, e-ticket is gaining popularity vastly as the customers can gain cost-benefits from buying tickets online 1.2 Problem statement ... relationship between convenience risk and passenger’s attitude towards airline e-ticket 2.2 Passenger attitude towards e-ticket purchase and purchase intention Purchase intention can measure the possibility... e-tickets The relationship between attitudes of passengers toward airline e-tickets and etickets purchase intention The intention to purchase airline e-ticket between different groups as... regression analysis to figure out the impact of perceived risks, attitude towards airline e-ticket purchase intention ANOVA test compares the idea of getting e-ticket for the difference target clients