CUSTOMERS PERCEPTION OF EASE-OF-USE AND INTENTION TO PURCHASE AIRLINE TICKETS ONLINE
- Project Research
- 1-5 Chapters
- Quantitative
- ANOVA
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
Background to the Study
The industry of information technology (IT) is one that is currently undergoing rapid development and transformation. The Internet is one of the most recent innovations that has radically changed our perspective on many forms of media and communication. The Internet has emerged as a significant platform for business-related activities (Hoffman and Novak, 2019). The Internet is a highly effective and comprehensive data communications system that is used all over the world. As a result of the numerous advantages it offers and applications it serves in the modern world, the Internet is widely regarded as the most important scientific development in recent history. Statistics compiled by Miniwatts Marketing Group on internet use indicate that as of June 30, 2012, the total number of internet users around the globe was 2,405,518 and 376. The growth rate in percentage terms between the years 2000 and 2012 is 566.4%. In Nigeria, ever since the country's first Internet Service Provider was established, the number of people making use of the internet has been consistently expanding (Chua, 2016).
In addition to that, the information technology industry has opened up a lot of doors for e-marketers. The marketing of products and services via the use of the internet is an example of an unorthodox type of marketing that many businesses have adapted to. This is due to the fact that e-marketing has made it possible for the company to conduct business in a more productive and cost-effective manner (Mansour and Samadhi, 2019). At the same time, it has made it possible for customers in Nigeria to connect and communicate with sellers of goods and services. For instance, consumers can search for any information and purchase products or services as well as conduct product or service-related research via the internet. Companies and business ventures' approaches to marketing have been significantly altered as a result of the rise of the concept of conducting business over the internet (Nikhashem, Farzana, Ahsanul, and Ali, 2021). This huge shift has had an equal impact on the airline industry as well as the ticketing system used by the industry.
In addition, e-ticketing is a novel approach to the acquisition of admission passes. In the vast majority of the airline industry, traditional paper tickets have been replaced by electronic tickets, which have been steadily gaining popularity due to the amount of time they save when making reservations. E-tickets have been used for a variety of different things, including airline tickets, concert and theater e-ticketing, movie e-ticketing, and e-ticketing for public transportation (Nikhashem et al, 2021).
According to Michael (2019), the findings of the survey indicated that over the last few years, websites for low-cost airlines have witnessed considerable increase in visitors as people continue to hunt for the greatest travel offers online. By providing their services via electronic infrastructures, airline companies hope to attract a larger number of customers, increase their revenue, and establish a trustworthy customer database for use in the development of future customer relationship management customers (Dehbashi and Nahavandi, 2017).
The market environment that airline firms operate in is fraught with anxiety since it is characterized by high operating expenses and intense rivalry. It is difficult to find strategies to earn sufficient money to pay expenditures and create a profit at the same time. In light of these challenges, the use of electronic tickets, also known as e-tickets, has emerged as an efficient way to cut costs (Lubbe, 2017). It all started when electronic ticketing was singled out by the International Air Transport Association (IATA) as having the potential to help reduce the enormous operational costs that are currently being borne by the entire airline industry. As a result, the implementation of electronic tickets became mandatory for all IATA members beginning in June 2008 (SITA, 2009; Bonsón et al. cited in SITA, 2009). (2015). Using this system, it was possible to purchase airline tickets directly online. Through the use of this method, airlines can avoid the high costs associated with traditional travel agents and ticketing offices.
According to research conducted on the global market, the number of airline tickets that have been purchased online has grown steadily since the service was first made available. The majority of tickets purchased online originate from developed countries such as the United States of America, the United Kingdom, and Japan (WNS, 2016). On the other hand, the circumstance is quite different in a few other countries. For instance, a significant portion of customers in Nigeria continue to purchase airline tickets via conventional brick-and-mortar channels, such as travel agencies and airlines' ticketing offices. Continuously intense pressure is placed on the profit margins of Nigeria's airline companies. It is most appropriate to look for ways to cut costs in order to improve the bottom line. One example of this would be encouraging customers to make reservations online. It is essential to investigate the elements that influence Nigerian customers' intentions to make online purchases in order to increase the number of people who book flights over the internet. This research, which is based on the Technology Acceptance Model, explores the consumers' perceptions of how easy it is to use and their intentions to purchase airline tickets online in Nigeria.
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