Table of Contents

1.1 Background of Study

1.2 Problem Identification

1.3 Research Objective

1.3.2 Research Question

1.4 Hypothesis of Study

1.5 Significance of study

1.5.1 Theoretical perspective

1.5.2 Management perspective

1.5.3 Academic perspective

1.6 Limitations of the Study

1.7 Terminology Definition

1.8 Research Framework

1.9 Deliverables (Scope of Study)

CHAPTER 2

LITERATURE REVIEW

2.1 Electronic ticketing

2.2 Drivers of Trust  and Individual Variances in Airline Electronic Ticketing

2.2.1 Perceived Security and Perceived Privacy

2.2.2 Familiarity with Online Purchase

2.2.3 Personal Trust Disposition

2.2.4 Airline E-ticketing Experience

2.3 Models and Theories

2.3.1 Theory of Reasoned Action (TRA)

2.3.2 Triandis Model

2.3.3 Technology Acceptance Model

CHAPTER 3

METHODOLOGY

3.1 Research Design

3.2 Sampling Population

3.3 Questionnaire Development and Design

3.3 Data Analysis

3.4 Ethical Considerations

3.5 Summary of Research Methodology

4.0 References

Appendix 1: Survey Questionnaire

Appendix 2: PSF Form

List of Figures

Figure 1: The Determinants of adopting airline e-ticketing among Malaysian Internet Users.

Figure 2: The Theroy of Reasoned Action (TRA)

Figure 3: Triandis Model

Figure 4: Technology Acceptance Model

Figure 5: Seven Point Likert Scale

List of Tables

Table 1: Internet Usage in correlation with population growth in Malaysia

Table 2: Hypothesis

Table 3: Key term definitions

Table 4: Definitions of Factors in the Theory of Reasoned Actions

Table 5: Definitions of Variables in Triandis Model

List of Appendices

Appendix 1: Survey Questionnaire

Appendix 2: PSF Form

Appendix 3: Ethics Form

Appendix 4: Log Sheets

CHAPTER 1

INTRODUCTION

1.1 Background of Study

E-tickets are increasingly becoming popular given that airline companies are anticipating enhancing their revenue, expansion of market, enhancement in customer service as well as communication, including the reduction of a company’s expenses over the execution of e-commerce (Benjamin.F, Yoke.C, Dammon.Y, 2013). On the contrary, travel agents also acquire their share of benefits by saving on the overhead expense with regards to delivering tickets to their customers (Ronnie.C, Pamela.L, 2009). An airline ticket enables the passenger to engage in online/telephone/self-service kiosk check-in, printing boarding passes at home or at airport kiosks.

Commercial airline companies have endeavored to enhance business values as well as diminishing losses by executing all forms of business strategies such as reducing jobs, eradicating routes, minimizing infrastructure, streamlining production costs, strengthening customer services, and developing a profitable market (Brain.M, June.W, 2005). With that said, essentially the most effective solution for enhancing business values, attracting more customers, and enhancing customer satisfaction is to render the use of internet-based low-fare E-tickets (Brain.M, June.W, 2005). Numerous airline carriers are applying their own web sites to market and sell their products to existing and potential customer. Certain airline carriers also offer discounts to customers who acquire their ticket(s) online (Tsai.h, Leu.D, Chou.C, 2009).

Due to the diversified use of online-based ticketing, airlines are competent to minimize labor costs and in some cases eradicate or commission entirely in an effort to improve profit margins (Mustafa Oz, 2012).Airline E-ticketing is utilized to signify the purchase of a seat on a commercial airline, typically through a website or by telephone. An airline e-ticketing incorporates the issues and delivery of the ticket into a single operation (Tee P.K, Benjamin C.Y.F, Behrooz G. and Lim M. K, 2014) which is a more practical and faster alternative to conventional airline ticketing, effecting substantial cost reductions for both airlines and travel agents This method of airline ticketing is exponentially replacing the conventional paper-based tickets as airline companies commonly impose surplus charges for issuing them (Anyasi.I, Obiazi.O, Evbogbai.E, Akpaida.A, Onianwa.U, Ebegba.D, 2012).

Dating from the year of 2013, “The Malaysian Communications and Multimedia Commission” (MCMC) documented the number of internet users in Malaysia, providing an estimate of 17,723,000 people. This statistical figure represents about 60.7 percent of the total Malaysian population (Internet World Stats, 2014). Malaysia has experienced a significant increase of internet users over a twelve year gap from 3,700,000 users in the year 2000 to 17,723,000 users in the year 2012 (please refer to table 1). The accelerated expansion of internet users has provided countless online-based applications as an alternative method for organizations in Malaysia to sustain customers together with providing them with new services and/or products.

Table 1: Internet Usage in correlation with population growth in Malaysia

Source: (Internet World Stats, 2014)

1.2 Problem Identification

E-ticketing by definition is a combination of issue and delivering the ticket from a single operation (Tee P.K, Benjamin C.Y.F, Behrooz G. and Lim M. K, 2014). Nevertheless, there are certainly numerous parameters that persuade the intention, tendencies and attitudes to make purchases online or adopting to airline e-ticketing. These parameters incorporate attitude, perceived risk, perceived usefulness, perceived ease of use, perceived enjoyment, perceived privacy, perceived security, perceived security and privacy, personal trust disposition, internet usage, and experience (Syed Shah A. and Morjaya.Y, 2010).

Despite the increasing numbers of online users, products offered, and e-trailers trading, it has been extensively reported that there is considerable resistance amongst many internet users to engage in online business to consumer transaction primarily due to concerns about privacy, security and the trustworthiness of the internet (George N. Lodorfos, Tom A. Trosterud, Chris Whitworth, 2006). Thus perceived security as well as perceived privacy is positioned as a prominent barrier to consumer acceptance of electronic ticketing (E-ticketing). Therefore, in order to understand why numerous internet users are still hesitant to adopt E-ticketing, it is imperative to understand their perception or individual differences towards e-ticketing.

In Malaysia, airline e-ticketing is considered the most active online purchasing activity among travelers. The two primary airline companies that utilize this system are AirAsia Berhad and Malaysia Airline System Berhad (MAS). E-ticketing is adopted by AirAsia in which, approximately 60 percent of users used e-ticketing services to buy airline tickets (Ainin S, Josephine. N and Suhana M., 2008). On the other hand, desired travel agents, AirAsia airport stations, together with sales offices process the outstanding forty percent of bookings (Suhaiza, Lee, Yudi, 2008).

Consequently, MAS commenced to propose e-tickets in May 2007, thereafter, the Malaysian air carrier became e-ticketing capable in September 2007. This successfully moved MAS to 100 percent (with assistance from Sita Air Transport Industry Solutions) E-ticketing within the IATA (International Air Transportation Association) deadline which formulated into 19 ringgit reduction per ticket sold. With the assistance from SITA, the finalized transformation for paper ticket to e-ticket took merely 11 months (Sabry Tahir, 2007).

1.3 Research Objective

To study the perception of Malaysian towards the adoption of airline E-ticketing

1. To examine the relationship between perceived security as a salient factor of trust in e-commerce toward the intention to adopt airline e-ticketing among internet user in Malaysia.
2. To identify the relationship between perceived privacy as a salient factor of trust in e-commerce towards the intention to adopt airline e-ticketing among internet users in Malaysia.
3. To analyze the relationship between familiarity with online purchases as a salient factor of individual differences toward the intention to adopt airline e-ticketing among internet users in Malaysia.
4. To explore the relationship between personal trust disposition as a salient factor of individual variances towards the intention to adopt airline e-ticketing among internet users in Malaysia.
5. To investigate the relationship between airline e-ticketing experience as a salient factor of individual differences towards the intention to adopt airline e-ticketing among internet users in Malaysia.

1.3.2 Research Question

This study will focus exclusively on electronic commerce trust environment, individual variances and the intention to purchase airline electronic ticketing in Malaysia. The 3 main research questions for this study are as follows:

What is the level of awareness and acceptance among Malaysia Internet users toward airline electronic ticketing?

What are the significant factors that influence the trustworthiness of individuals towards the adoption of airline electronic ticketing?

Which airline electronic ticketing company website is most popular among internet users in Malaysia?

1.4 Hypothesis of Study

The Hypothesis of this study is demonstrated in Table 2.

Table 2: Hypothesis

1.5 Significance of study

The fundamental dilemma of this study is to analyze the public usage among Malaysia internet users in relation towards airline electronic ticketing. In addition to that, this study is designed to cultivate an understanding of trust in Electronic commerce (e-commerce) transactions towards adoption of airline electronic ticketing among internet users in Malaysia Aside from this, this investigation also hopes to develop an understanding of level of trust among Malaysian’s towards airline electronic ticketing. With understanding the adoption purpose of airline electronic ticketing among internet users in Malaysia, the airline companies ought to be able to cultivate as well as implement adequate marketing strategies which can further enhance the trust among internet users in Malaysia, as a result, an increase of online air ticketing sales.

To be able to realize the aims as previously stated, this study will evaluate the internet user’s online trust by capitalizing on the five primary categories of determinants, which are: perceived security, perceived privacy, familiarity with online transaction, personal trust disposition, and airline electronic ticketing experience. The importance of why this research needs to be conducted is as follows. The researcher hopes that this study will contribute to numerous benefits in terms of theoretical, management as well as academic perspectives.

1.5.1 Theoretical perspective

This research will assist in providing a clearer framework for airlines/organizations as well as customers on what kind of factors influence the intention to buy product online and therefore, organizations such as airlines are able to create a more secure online purchasing environment as well as a more customer centric approach to serve their customers well online.

1.5.2 Management perspective

This research will assist airlines/organizations to know the factors that influence the intention of customers to purchase online, and thus, could help the management to increase the number of airline e-tickets sold, as well as increasing the number of customers to adopt airline e-ticketing.

1.5.3 Academic perspective

This research will benefit other students to understand the benefits of online-based e-ticketing and could be referenced or served as a guideline for other researchers who are interested to study Malaysian perception towards e-ticketing in another organization.

1.6 Limitations of the Study

Due to resource constraints, this survey will be conducted in Kuala Lumpur, and will be targeted at APU (Asian Pacific University) students. The reliability of this study depends on the honest and memory of the respondents in giving the information needed. The findings from this study should not be generalized as whole as it is only restricted to a small number of students in Malaysia and the results obtained from this study could be unique to this particular sample. Time constraints are also regarded as a limitation of this study.

1.7 Terminology Definition

The conceptual and operation definition of key terms in this study are as follows in Table 3.

Table 3: Key term definitions