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

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

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Abstract

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.

Item Type:	Article (Journal)
Additional Information:	5056/77912
Uncontrolled Keywords:	Perceived risk, risk-relievers, online, air tickets, flight, information
Subjects:	H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5001 Business. Business Administration H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5428 Retail trade
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User:	Prof. Dr Ahasanul Haque
Date Deposited:	10 Jan 2020 16:03
Last Modified:	07 Jul 2020 16:21
URI:	http://irep.iium.edu.my/id/eprint/77912

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