Risk reduction in online flight reservation: the role of information search

The air industry is very competitive. Operating costs are high. To survive and earn profits, it is imperative for airlines to save substantial costs. This can come from selling tickets online. However, in many developing countries including Malaysia, a lot of consumers still refuse to buy flights on...

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Main Authors: Lee, Kwee-Fah, Haque, A. K. M. Ahasanul, Maulan, Suharni, Abdullah, Kalthom, Tarofder, Arun Kumar
Format: Article
Language:English
Published: Lifescience Global 2019
Subjects:
Online Access:http://irep.iium.edu.my/77912/
http://irep.iium.edu.my/77912/1/JRGEV8A76-Haque.pdf
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author Lee, Kwee-Fah
Haque, A. K. M. Ahasanul
Maulan, Suharni
Abdullah, Kalthom
Tarofder, Arun Kumar
author_facet Lee, Kwee-Fah
Haque, A. K. M. Ahasanul
Maulan, Suharni
Abdullah, Kalthom
Tarofder, Arun Kumar
author_sort Lee, Kwee-Fah
building IIUM Repository
collection Online Access
description The air industry is very competitive. Operating costs are high. To survive and earn profits, it is imperative for airlines to save substantial costs. This can come from selling tickets online. However, in many developing countries including Malaysia, a lot of consumers still refuse to buy flights online. Perceived risk of the internet is a key likely reason. To overcome this resistance, reducing perceived risk is crucial. This study examines the influence of perceived risk and risk-relievers on intention to reserve flight online. The two risk-relievers investigated are information type and personal sources of information. Using data collected online, PLS-SEM analysis was conducted to examine the relationship between type of information, personal sources of information, perceived risk, and intention to reserve flight online. Information type is found to relieve perceived risk and increases online reserve intention. Surprisingly, the results for personal sources of information show otherwise. In addition, perceived risk is empirically supported as being multidimensional. The findings suggest the importance of managing information to relieve risk perceptions so that airlines can stimulate higher online reservations. Thus, better profits can be made in spite of a competitive business environment.
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institution International Islamic University Malaysia
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spelling iium-779122020-07-07T08:21:04Z http://irep.iium.edu.my/77912/ Risk reduction in online flight reservation: the role of information search Lee, Kwee-Fah Haque, A. K. M. Ahasanul Maulan, Suharni Abdullah, Kalthom Tarofder, Arun Kumar HF Commerce HF5001 Business. Business Administration HF5428 Retail trade The air industry is very competitive. Operating costs are high. To survive and earn profits, it is imperative for airlines to save substantial costs. This can come from selling tickets online. However, in many developing countries including Malaysia, a lot of consumers still refuse to buy flights online. Perceived risk of the internet is a key likely reason. To overcome this resistance, reducing perceived risk is crucial. This study examines the influence of perceived risk and risk-relievers on intention to reserve flight online. The two risk-relievers investigated are information type and personal sources of information. Using data collected online, PLS-SEM analysis was conducted to examine the relationship between type of information, personal sources of information, perceived risk, and intention to reserve flight online. Information type is found to relieve perceived risk and increases online reserve intention. Surprisingly, the results for personal sources of information show otherwise. In addition, perceived risk is empirically supported as being multidimensional. The findings suggest the importance of managing information to relieve risk perceptions so that airlines can stimulate higher online reservations. Thus, better profits can be made in spite of a competitive business environment. Lifescience Global 2019-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/77912/1/JRGEV8A76-Haque.pdf Lee, Kwee-Fah and Haque, A. K. M. Ahasanul and Maulan, Suharni and Abdullah, Kalthom and Tarofder, Arun Kumar (2019) Risk reduction in online flight reservation: the role of information search. Journal of Reviews on Global Economics, 8. pp. 886-899. E-ISSN 1929-7092 https://www.lifescienceglobal.com
spellingShingle HF Commerce
HF5001 Business. Business Administration
HF5428 Retail trade
Lee, Kwee-Fah
Haque, A. K. M. Ahasanul
Maulan, Suharni
Abdullah, Kalthom
Tarofder, Arun Kumar
Risk reduction in online flight reservation: the role of information search
title Risk reduction in online flight reservation: the role of information search
title_full Risk reduction in online flight reservation: the role of information search
title_fullStr Risk reduction in online flight reservation: the role of information search
title_full_unstemmed Risk reduction in online flight reservation: the role of information search
title_short Risk reduction in online flight reservation: the role of information search
title_sort risk reduction in online flight reservation: the role of information search
topic HF Commerce
HF5001 Business. Business Administration
HF5428 Retail trade
url http://irep.iium.edu.my/77912/
http://irep.iium.edu.my/77912/
http://irep.iium.edu.my/77912/1/JRGEV8A76-Haque.pdf