2007:047

MASTER'S THESIS

Factors Affecting on Iranian Customers

Acceptance Towards E-Ticketing Provided
by Airlines

Shima Dehbashi

Lule University of Technology

Master Thesis, Continuation Courses

Marketing and e-commerce
Department of Business Administration and Social Sciences
Division of Industrial marketing and e-commerce

2007:047 - ISSN: 1653-0187 - ISRN: LTU-PB-EX--07/047--SE

 Factors affecting on Iranian customers'
acceptance towards E-Ticketing provided
by airlines

Supervisors:
Dr.Nahavandi
Dr.Khalifa

Referee:

Prepared by:
Shima Dehbashi
Tarbiat Modares University Faculty of Engineering
Department Industrial Engineering Lule University of Technology

Department of Business Administration and Social Sciences

Division of Industrial Marketing and E-Commerce

Joint MSc PROGRAM IN MARKETING AND ELECTRONIC COMMERCE

2006
Abstract
Using internet as a new channel for providing different services is growing
rapidly, but its clear that focusing only on technology cant lead the business to be
successful. The key point of success business is still focusing on the customers and
using new opportunities of rapid technological changes. Since the anxiety of
customers' adoption / rejection of offering old services based on new technology is
considerable, understanding what factors are important for customers to adopt these
new services is the challenge for researchers and service providers. The objective of
this research is to gain better understanding of the factors affecting on e-ticketing
adoption of Iranian customers. Since the adoption of e-ticketing can be explained with
an intention based model, we developed the model based on Theory of Planned
Behavior to explain the effect of different factors on e-ticketing intention. Then the
model tested with two surveys. Data collected from 132 passengers indicates that
Attitude, Subjective norms and perceived usefulness significantly affect on Iranian
customers intention to purchase e-ticket and Perceived risk has negative significant
effect on intention to use e-ticketing. Also the result provides support for the effect of
Trust, Perceived risk and perceived usefulness on attitude toward using e-ticketing.
Data collected from 120 IT professionals show that attitude and perceived usefulness
has significantly effect on intention to use e-ticketing and perceived usefulness has
effect on IT professionals attitude to use e-ticket. The implications are noteworthy for
both researchers and practitioners.

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Acknowledgement
This master thesis has been written in marketing and electronic commerce program at
the Department of Industrial Engineering, Tarbiat Modares University and division of
Industrial Marketing and e-commerce, Lule University of Technology.

First of all I would like to thank my supervisor Dr.Nahavandi of Tarbiat modares

university, for her unfailing support , in whole process of writing thesis. Her support
encouraged me to find new ways for challenging with problems.

I also would like to thank Dr.Khalifa my supervisor of Lule University of

Technology, who without his guidelines and comments, passing this way could be
more difficult.

I would like to express my gratitude to Professor Wynne Chin for providing valuable
references for PLS. Appreciations is also due to my MSc colleagues, specially,
Firouze Afrouz for discussions and comments and Bahador Jamshidi for helping me
in data gathering. And many thanks to my colleagues in Radcom Ltd. for their
supports and patience and kind help.

And finally, I would like to thank deeply my dear parents and sister who understood
and supported me in the most difficult moments.

--Shima Dehbashi
February 2007

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Table of Content
Abstract................................................................................................................................. 2
Acknowledgement ................................................................................................................ 3
Table of Content................................................................................................................... 4
List of Tables ........................................................................................................................ 7
List of Figures....................................................................................................................... 9
Chapter one ........................................................................................................................ 10
1 Introduction and research problem .............................................................................. 10
1.1 Introduction......................................................................................................... 10
1.2 Background ......................................................................................................... 12
1.2.1 e-Service .................................................................................................12
1.2.2 E-ticketing...............................................................................................15
1.3 E-ticket in Iran .................................................................................................... 16
1.4 Factors affecting on airlines customers adoption .............................................. 18
1.4.1 Common factors affecting on internet adoption .....................................18
1.5 Problem discussion ............................................................................................. 21
1.6 Purpose of research ............................................................................................. 22
1.7 Research outline.................................................................................................. 22
Chapter Two....................................................................................................................... 24
2 Literature review ............................................................................................................ 24
2.1 E-services and Service ........................................................................................ 25
2.1.1 Service.....................................................................................................25
2.1.2 e-Service and business environment.......................................................26
2.1.3 Customers and e-Service.........................................................................31
2.1.4 E-service Orientation ..............................................................................33
2.1.5 Challenges for e-Service .........................................................................34
2.2 Adoption ............................................................................................................. 36
2.2.1 Definition ................................................................................................36
2.2.2 Stages of adoption process......................................................................36
2.2.3 Adoption categories ................................................................................37
2.2.4 Models.....................................................................................................39
2.2.4.1 TRA...................................................................................................40
2.2.4.2 TPB (Theory of planned behavior) ...................................................41
2.2.4.3 TAM (Technology Acceptance Model)............................................44
2.2.4.4 Triandis Model..................................................................................45

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 2.2.5 Comparison of the theories .....................................................................46
2.3 E-Services and adoption ..................................................................................... 47
2.3.1 Common factors......................................................................................47
2.3.2 E-service adoption ..................................................................................49
2.3.2.1 Risk- related factors ..........................................................................49
2.3.3 Trust Related Factors ..............................................................................52
2.4 Airline Industry and using Internet ..................................................................... 53
2.4.1 Effect of Internet on airlines ...................................................................54
2.5 Expected Contribution ........................................................................................ 57
2.6 Methodology ....................................................................................................... 57
2.7 Conclusion .......................................................................................................... 58
Chapter three ..................................................................................................................... 59
3 Research Methodology ................................................................................................... 59
3.1 Research question ............................................................................................... 60
3.2 Research Model .................................................................................................. 60
3.2.1 Conceptual model and hypotheses..........................................................60
3.2.2 Description of Hypotheses......................................................................60
3.2.2.1 Attitude .............................................................................................60
3.2.2.2 Subjective norm ................................................................................62
3.2.2.3 Perceived Behavioral Control ...........................................................62
3.2.2.4 Trust ..................................................................................................63
3.2.2.5 Perceived Risk ..................................................................................65
3.2.2.6 Perceived Usefulness ........................................................................66
3.2.2.7 E-ticketing adoption intention...........................................................67
3.3 Research purpose ................................................................................................ 69
3.4 Research approach .............................................................................................. 70
3.5 Research strategy ................................................................................................ 71
3.6 Sample selection: research object ....................................................................... 72
3.6.1 Presentation of chosen research object ...................................................72
3.6.2 Sample selection .....................................................................................73
3.6.2.1 Sample size .......................................................................................73
3.6.2.2 Criteria in Customer selection ..........................................................74
3.7 Data collection methods...................................................................................... 74
3.7.1 General concepts of data collection methods..........................................74

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 3.7.2 Questionnaire Design..............................................................................77
3.8 Data collection issues in pilot study ................................................................... 80
3.8.1 Survey Data Collection Procedure..........................................................80
3.8.1.1 Web Survey.......................................................................................81
3.8.1.2 Survey #1 ..........................................................................................81
3.8.1.3 Survey #2 ..........................................................................................82
3.8.2 Data presentation and analyzing .............................................................82
3.9 Chapter summary ................................................................................................ 83
Chapter Four...................................................................................................................... 85
4 Data Analysis................................................................................................................... 85
4.1 Survey #1 (Inexperienced Passengers) .............................................................. 86
4.1.1 Survey Response.....................................................................................86
4.1.1.1 Survey response rate and missing value ...........................................86
4.1.2 Descriptive Analysis ...............................................................................87
4.1.3 Model evaluation ....................................................................................88
4.1.3.1 Measurement (Outer) Model.............................................................89
4.1.3.2 Structural (inner) Model ...................................................................94
4.1.4 Summary of survey #1 .........................................................................102
4.2 Survey #2 ......................................................................................................... 105
4.2.1 Survey Response...................................................................................105
4.2.1.1 Survey response rate and missing value .........................................105
4.2.2 Descriptive Analysis .............................................................................106
4.2.3 Model evaluation ..................................................................................107
4.2.3.1 Measurement (Outer) Model...........................................................107
4.2.3.2 Structural (inner) Model .................................................................111
4.2.4 Summary of survey #2 .........................................................................118
Chapter 5 .......................................................................................................................... 121
5 Discussion and Conclusions ......................................................................................... 121
5.1 Findings ............................................................................................................ 121
5.2 Managerial implications ................................................................................... 124
5.3 Implication for future research ......................................................................... 126
Reference .......................................................................................................................... 128
6 Appendix........................................................................................................................ 134
6.1 Questionnaire .................................................................................................... 134
6.1.1 Persian version ......................................................................................134
6.1.2 English Version.....................................................................................136

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List of Tables
Table 2-1 - Some important word in TRA and TPB (Jillian J Francis, Martin P Eccles
et al. 2004) ............................................................................................................................40
Table 2-2 - Perceived risk .....................................................................................................52
Table 2-3 - Impact of Internet technologies on the value of the air transport offering.........56
Table 3-1-Attitude indicators................................................................................................61
Table 3-2-Subjective Norm indicators..................................................................................62
Table 3-3-Indicators of Perceived Behavioral Control .........................................................63
Table 3-4 - Indicators of Trust on brand...............................................................................64
Table 3-5 - Indicators of Trust on website............................................................................65
Table 3-6- Perceived risk indicators .....................................................................................66
Table 3-7-Perceived consequences indicators ......................................................................67
Table 3-8 -overall intention indicators..................................................................................67
Table 3-9 - constructs' definitions.........................................................................................68
Table 3-10- Research Hypotheses ........................................................................................69
Table 3-11 -Relevant Situations for different Research strategies (Yin 1994).....................71
Table 3-12-Criteria of customer selection ............................................................................74
Table 3-13-Advantages of different data collection methods of survey...............................76
Table 3-14 - Disadvantages of different data collection methods of survey .......................77
Table 3-15 - Questionnaire Items ........................................................................................79
Table 4-1 - sample #1 overview............................................................................................86
Table 4-2 -Responders Demographic results for survey #1 ................................................88
Table 4-3- Loading, weight for Survey #1............................................................................90
Table 4-4-Composite Reliability, AVE and Cronbach Alpha ..............................................91
Table 4-5-Factor Structure Matrix of Loadings and Cross-Loadings...................................92
Table 4-6-Correlations between latent constructs and square root of AVE .........................93
Table 4-7-Measure model for result for fotmatives ..............................................................94
Table 4-8- (R) for each endogenous construct.....................................................................95
Table 4-9-Structural model results........................................................................................96
Table 4-10 - Summary ........................................................................................................103
Table 4-11 - sample #2 overview........................................................................................105
Table 4-12 -Responders Demographic results for survey #2 ............................................107
Table 4-13- Loadings and weights for Survey #2...............................................................108

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Table 4-14-Composite Reliability, AVE and Cronbach Alpha ..........................................109
Table 4-15-Factor Structure Matrix of Loadings and Cross-Loadings...............................109
Table 4-16-Correlations between latent constructs and square root of AVE .....................110
Table 4-17-Measure model for result for fotmatives ..........................................................111
Table 4-18- (R) for each endogenous construct ................................................................112
Table 4-19- Proposed hypothesis........................................................................................113
Table 4-20 Summary of the result of second survey .......................................................119

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List of Figures
Figure 1-1- The Scope of e-Service(Roland T Rust and Kannan 2002)...............................14
Figure 1-2-e-Readiness (eiu.com).........................................................................................17
Figure 1-3-Middle east internet usage ..................................................................................18
Figure 1-4- Research Structure .............................................................................................23
Figure 2-1 - A paradigm shift from traditional e-commerce to e-service (Rust and
Kannan june 2003)................................................................................................................26
Figure 2-2 Transformation to e-Service(Roland T Rust and Kannan 2002) ........................28
Figure 2-3 - E-commerce paths to profitability (Rust and Kannan june 2003) ....................30
Figure 2-4 - e-Service Orientation(Rust and Kannan june 2003) .........................................33
Figure 2-5 -Stages of Adoption process(M.Rogers 1995) ....................................................37
Figure 2-6 -Time of Adoption of innovation (Rogers 1983) ................................................37
Figure 2-7 - Theory of reasoned action(Fishbein and Ajzen 1975)......................................41
Figure 2-8-Theory of planned behavior and reasoned action(Ajzen and Fishbein) .............43
Figure 2-9 -TAM (Davis 1989).............................................................................................44
Figure 2-10 - Triandis Model................................................................................................46
Figure 2-11 - Influencing factors of consumer information search and buying behavior
through the internet (Moon 2004).........................................................................................48
Figure 2-12-e-Ticket penetration in the world (IATA 2006)................................................54
Figure 3-1 Research Model................................................................................................62
Figure 3-2-Research Design .................................................................................................84
Figure 4-1-Estimated result for proposed model - Survey #1...............................................94
Figure 4-2- The result for proposed model - Survey #1 .....................................................104
Figure 4-3-Estimated result for proposed model - Survey #2...............................................94
Figure 4-4- The result for proposed model - Survey #2 .....................................................104

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Chapter one

1 Introduction and research problem

In this chapter, an introduction a background of this research will be presented.

Subsequently research problem and disposition of the research structure are reported.

1.1 Introduction

A recent reports show in 20th century, the basis of economic successfulness is

introduction of self service which affected all area of our lives. (Butler Group

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www.iwks.com) Technology-based-self-service as a part of e-service now play
important role in changing the way that firms, manufacturers and customers interact.
In fact Traditional e-commerce is giving way to a new paradigm known as e-
service. This emerging paradigm represents a coherent point of view that challenges
many of the traditional assumptions about how to use the online environment to raise
profits(Rust and Lemon Spring 2001). This idea is mainly based on expanding
revenues through increasing the value of service and building profitable customer
relationships and dont focus totally on reducing costs through automation and
increased efficiency. This suggests an outward-looking view of e-commerce (focusing
on understanding the customer) to complement the inward-looking view (focusing on
technology and systems)(Rust and Kannan june 2003).

One of the most rapidly growth services which has been provided in internet is
what we call it travel related services (Such as online ticketing or e-ticket). Online
airline ticket sales reached approximately $14.2 billion in 2002 (Foss, 2003). Travel
business on the internet accounts for about 15 percent of overall travel sales; about
one half of that is spent on airline ticket sales. Compared to e-retail sales, which
accounts for only 1.5 percent of all retail sales (US Census Bureau, 2003), the growth
of internet airline services has proved astounding. A survey of 1,501 people from
March 2000 to 2001 (Pew 2002) shows that the share of internet users who had
purchased travel services had grown from 34 to 42 percent. The researches for other
countries such as Canada shows that Canadian Internet users are using the Internet to
research travel, but they are not so quick to make online travel purchases, according to
a survey of Canadian Internet users who had traveled in 2004 or were planning to
travel in 2005 by TNS. Findings suggest that online Canadians are more likely to use
the Internet in their planning and more likely to find this stage important. Six in ten
online Canadians (59%) say the Internet is very or extremely important for making
travel plans, which is up from only one in three (34%) in 2002 (TNS 2006). Travel
market report for Korea shows that travel and other reservation services marked the
largest growth with 43.3% to record 751 billion won in 2004 . (EyeForTravel, April
2005). Since 2000 Internet travel bookings have increased 300% according to the
Bundesverband Informationswirtschaft, Telekommunikation und neue Medien
(BITKOM) as well as the Verband Internet Reisevertrieb (VIR). 17% of all Germans
have used the Internet to book their hotels, flights and theatre tickets. They further

11
predict that in the year 2015 50% of all Germans will book online. 38% go online to
research information. (de.internet.com, July 2006) Although the growth of internet
based airline reservation services has been rapid, internet sales have generally
experienced slow growth because of barriers related to the customers adoption of
these online services.

On the other hand, airline industry is facing with the IATA (international air
transportation association) deadline about 100% e-ticket at the end of 2007. It means
that not only airlines must be ready for this new concept but also customers have to
accept this new technology with all its advantage and disadvantages. When airlines
shift from paper-based ticket to e-ticket, customers acceptance will become important
for both sides. Airlines try to offer services through electronic infrastructures,
especially through the web, to decrease their costs, expand revenue, creating reliable
database of customers for future customer relationship management plans. The
expectable result is that all customers will accept new service and will use because of
advantages for both sides, what wont occur for all cases.
Finding the factors affecting on customers adoption is possible and will be
beneficial for airlines to work on customers priorities to increasing e-services
adoption and for customers to be more satisfy about using new e-service.

1.2 Background

In this section e-service, e-ticketing and e-ticketing in Iran, and e-ticketing

adoption will be reviewed.

1.2.1 e-Service
Era of e-service can be defined by ending of traditional e-commerce which
was based on e-tailing and e-retailing and many successful e-tailers such as
Amazon.com has been highest-profit pioneer of web-space. These businesses, as
goods marketers, dont take advantage of true strengths and breakthrough innovation
of the Internet. Such businesses are nothing more than catalog sellers in electronic
clothing. Unfortunately , because good sellers dominate the web , people (wrongly)
think of e-service as no more than access to goods and order fulfillment (Rust and
Lemon Spring 2001). Although these elements are important for e-tailers, they do not

12
represent the true nature of e-service, but the current state of e-distribution.(Alsop
1998; Rust and Lemon Spring 2001)

Much of what has been written to date about e-service focuses on traditional
customer service-call center response, weekly e-mail discount reminders, speed of
response, order-status updates, site effectiveness. And because of the nature of e-
service which is new concept there is no agreement about its definition. (Rust and
Kannan 2002) defined e-Service as a provision of service over electronic networks
such as the Internet. This notion includes services provided by a typical service
organization as well as the services provided by goods manufacturers where the
quality of customer care plays an important role.(Rust and Kannan june 2003).

(Rowley 2005) defined: e-Service is deeds, efforts or performances whose

delivery is mediated by information technology (including the Web, information
kiosks and mobile devices). Such e-service includes the service element of e-tailing,
customer support and service, and service delivery. According to the de Reuter e-
Service is an interactive, content-centered and Internet-based customer service, driven
by the customer and integrated with related organizational customer support processes
and technologies with the goal of strengthening the customer-service provider
relationship (Reuter, Wetzel et al.)

These Ideas were acceptable for traditional e-commerce too and its only
coverage part of e-service, Rust believes that E-service is more than order fulfillment,
more than responsiveness to inquiries, e-mail, and status requests. The true nature of
e-Service is providing consumers with a superior experience with respect to the
interactive flow of information(Rust and Lemon 2001),negotiation interaction ,
promotion flows, title exchanges and product/service flows(Roland T Rust and
Kannan 2002) in down stream and upstream channel. In downstream channel , e-
Service is about CRM and e-CRM, customer care, one-to-one marketing and so on
and in upstream channel it is about just in time inventory , e-procurement, supply
chain management. The important thing about e-Service in upstream channel is the
way that e-Service provider look at it. In fact e-Service in upstream will provide all
necessary requisites need for providing better Services for downstream channel.

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 The scope of e-service is all domains of business such as B2B, B2C, G2P and
any others but its also an intra-organizational context which subsumes intra-
organizational interaction. Figure 1-1 shows the scope of e-service.

Figure 1-1- The Scope of e-Service (Roland T Rust and Kannan 2002)

The concept of e-service has been used in the last three years to describe
revenue-generating, efficiency- increasing assets in the Net (Hewlett- Packard) to
information and Web services (IBM and Scient). Our view of e-service is much
broader than the concepts of IT services, Web services, or infrastructure services.
While e-service includes all these services, it also encompasses the service product,
service environment and service delivery that comprise any business model, whether
it belongs to a goods manufacturer or a pure service provider (Roland T Rust and
Kannan 2002). This new idea can be used in different industries, for example Using e-
service in airline industry as a e-ticket (using internet) or self check-in (using ATM)
changed the airline industry and behavior of consumers.

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1.2.2 E-ticketing
An electronic ticket (E-ticket) is simply a record of a reservation made using
a valid credit card number stored in the computer database of the airline company
(McCuhbrey 1999). This reliable, useable, efficient service provided by airlines to
make the process of booking and purchasing ticket easier. While internet is one sale
and distribution channel, the e-ticket purchase can be done by phone or at a ticket
office and the document scan be mailed, sent by fax or email, or picked up at a
ticketing location.

The use of internet or other technologies such as using call centers will affect
on airline and customers. Using paperless ticket will be cost effective for airline,
create new market for airline sales, new channel for delivering service, reducing
human recourse in sales force, increasing the reliability of transaction and as an
important point e-ticket change the image of the company. At the same time,
combination of benefits of internet and consequences of purchasing ticket directly
from airline will give many opportunities to the customers such as 24 hours available
service in any geographical location which liberates customers and airlines branches
from being restricted in special place, the ability of comparison different airlines
services and prices, information symmetry and reducing time loss in queues to
received paper-based ticket.

First e-ticketing introduced by an American airline named ValuJet in August

1993. E-tickets have been widely accepted in US. with a usage rate over 70% for the
domestic flight (McCuhbrey 1999). Many other airlines in the world such Delta,
KLM, Northwest airline, Icelander airline have the experience of providing e-ticket in
the world. As a first Asian country, Malaysia Airlines developed its own e-ticket
solution called MASET in June of 1997, deploying it on a limited scale within
Malaysia and on flights to Singapore. (Airlines international 2005). In fact based on
IATA report after 10 years of first Asian e-ticketing service, e-ticketing has not
penetrated enough in Asian nations, especially middle-eastern. (IATA 2006)

15
 Although the e-ticketing is growing fast, but only 10% of total number of
tickets in world are sold online. IATA has developed programs in order to increase
the penetration of e-ticketing in the world.

1.3 E-ticket in Iran

A country's "e-readiness" is a measure of its e-business environment, a

collection of factors that indicate how amenable a market is to Internet-based
opportunities. This factor consists of all Internet enabler workings such as technology
infrastructure, favorable policy, business and social environments of a country.

Looking at current e-readiness ranking (2004) published by eiu.com, (figure1-

2) show our situation between the world's 60 largest economies. Although Iran is not
in a good position, but suitable activities have been done in order to penetrate e-
commerce in Iran and also increase e-readiness in our society.

Internet penetration as a first condition of developing e-business has e good

situation in Iran (www.internworldstats.com). Statistics shows that Iran has the
highest level of using internet in Middle Eastern country since 2000 (Figure1-3)

In recent years, supporting IT plans by Government of Iran and private

sections bring about new era for Iranians with new services such as Internet banking
provided by banks, e-cards for online shopping from Iranian online shops which
directly affect on arranging suitable infrastructure for other Iranian industries to use
internet as a new distribution channel.

Mainly, private banks (Saman Bank and Parsian Bank) have started their
online services for persons who want to purchase online by using Internet purchasing
card. Many Iranian companies accept these cards for purchasing online.

In travel related industries there are two main companies who established their
website for e-booking and e-ticketing. The pioneer of this field is Raja Company who
sells its trains ticket online since 2004.

16
Figure 1-2-e-Readiness (eiu.com)

17
 Figure 1-3-Middle east internet usage

Another company who uses internet for selling tickets is IranAir airline. This
company first introduced e-booking system in a way that people could visit Iranair
website (Iranair.com) and reserve a ticket. Now new service is available for domestic
flights for Tehran, Mashhad and Kish Island. With this new service passengers with
buying Saman Bank prepaid card, not only can book a ticket, but also they could buy
it and receive a digital reference number.

Unfortunately Iran air is the only e-ticket provider in our country and it means
without any competitors they will advance so slowly. This advancement will also
affect by e-banking adoption and e-ticketing adoption in Iran too. Its important to try
to use experience of other countries and localize it for Iranian companies and
customers.

1.4 Factors affecting on airlines customers adoption

1.4.1 Common factors affecting on internet adoption

Adoption of e-services which has been offered by manufacturers or service
providers is not easy. In fact adoption of e-services is based on the rate of customer
internet adoption instead of traditional channels which is mainly based on customer
personal characteristics, website properties and service properties. It means that basic
factors which affect on e-service adoption will be the same as internet adoption and

18
also e-commerce adoption which focuses on the customers willingness to use internet
instead of traditional channels in order to purchase a product, searching for
information and using a service.

(Sohn and Ahn 1999) showed that consumers knowledge affects their
adoption of e-commerce.(Liang and Huang 1998) Found that customers experience as
an important factors in online purchasing. (Kim and Kwon 1999) contended that a
consumer whose lifestyle is more progressive and assertive in leisure activities uses
the internet more frequently and searches information through the internet more often.
(Limayem, Khalifa et al. 2003) added personal innovativeness as another personal
characteristic in order to online shopping.(Yang and Cho 1999) examined the impact
of consumers need for cognition, and search objectives on consumer information
search through the internet.

Another group of factors that seems to be important for adoption is website

related factors. The KNP Report on the Internet User (Research 1999) published by
IMResearch showed that user satisfaction with the website is decided by information
quantity, design, transmission speed, user-friendliness of search structure, and update
pace. It suggests that website characteristics are likely to influence consumer
information search through the internet.
Besides there are several academic studies working on perceived risk.
According to Koller (Koller 1988), the degree of importance of the situation
determines the potential effect of risk. Customers unwillingness toward to complete
online Consumers have shown reluctance to complete online transactions (Hoffman,
Novak et al. 1999), primarily due to risk concerns. Therefore, perceived risk is posited
as a prominent barrier of consumer acceptance of e-Services in an e-commerce
environment. Consumer perceptions of risks inherent in product adoption and usage
have been studied for many years (Bauer and Cox 1967; Dowling and Staelin 1994).
This immense literature on perceived risk however has not been applied to the
relatively new e-services context in an attempt to better predict evaluation and
adoption.

Recent research explores the issue of perceived risk in the context of the
unfairness of price (Wirtz, Kimes et al. 2003) . They found perceived unfairness of

19
pricing generates perceptions of financial risk. Other researchers (Kolsaker, Kelley et
al. 2004) found that perceptions of risk and convenience are strongly associated with a
reluctant to purchase airline services online . Also the authenticity of the company or
product is not under question; therefore, it is likely that risk assessments of the
medium rather than the product are under evaluation. Of course this research shows
that cultural factors are important to using e-ticket too.

(F.Cunningham, H.Gerlach et al. 2005) found perceived risk is present at each

stage of the consumer buying process. Their findings show the introduction of
financial risk and the continued significance of performance risk at purchase stage.
Previous analyses of risk types suggest that financial risk is the most important
contributor to perceived risk. However, performance risk seems more important in the
case of internet airline reservation services.

Although sometimes factors affecting on risk are the same as trust with
negative affect on customer adoption, but there are different researches worked in
trust as independent factors affecting on customer to use an online store(Lee, J.Kim et
al. 2000; Ceaparu, Demner et al. 2002) as a part of third step of adoption .Some of
these factors found by J.Lee et al shows that comprehensive information about
products, values shared with other customers and divers means of communication can
effectively increase trust, which in turn can increase customers loyalty(Lee, J.Kim et
al. 2000). These factors will be important even for post-purchase adoption or at the
first stages of adoption for customers who receive information about launching new
service or product and step of interest which customer try to find more information
about .

Moreover Eggers research (Egger 1999; Egger and Groot 2000) shows that
trustworthiness often depends on strength of brand name which is its reputation ,
customer awareness of firms privacy policy which ensure him/her about what firm is
going to do with private information. Also there are factors that affect customers
judgments about trustworthiness such as website certificates provided by third parties
or legal framework that support transaction in the website. (Cheksin 1999) found six
fundamental forms for communicating trust are: brand, navigation, fulfillment,
presentation, up-to-date technology and seals of approval. And also there is a research

20
which (Ceaparu, Demner et al. 2002) shows that there are three important features for
customers in order to trust a website which are customer service (Contact number
available, clearly state return policy, possibility of returning a purchase at the nearby
store) , testimonial and security feature representation such as text and graphic.

Based on (McIvor, OReilly et al. 2003) research, its possible to find

important factors which affect on customers in order to use airlines website for
buying e-ticket . These factors can be clustered as bellow:

o Real-time decision-making mechanisms (Reduction of information

asymmetry helps customer to make a decision)

o Up-to-date information for customers (All the websites evaluated contained

up-to date information on flights, schedules, promotions and complementary
services. This will help the customer to make a best decision by comparison
different website. Also this way is better than old brochure which airlines
provide in order to provide information for their customers)

o Reductions in customers search and transaction costs (On-line buyers

benefit from better selection in terms of choice (of airlines, flights, schedules,
destinations, levels of service and complementary services); speed (time,
convenience of access capabilities on the Internet);and reduced transaction
costs (monetary, effort, mistakes))(McIvor, OReilly et al. 2003)
o Bundling products and services
o Offering additional services not directly related to the core travel offering
o Receiving low(er) prices/discounted fares
o Customizing offerings to suit individual customer needs
o New transaction structures play integral role in lowering transaction costs
for customers

1.5 Problem discussion

E-services as interactive software received via internet are considered as a new

revenue stream and creating efficiency (Featherman et al 2002) Examples of e-
services include integrated trip planning, on-line banking and financial portfolio

21
management. Many companies are adopting Internet-based e-services for conducting
business transactions and sharing information with their consumers and business
partners (Torre and Moxon 2001). Each service has particular characteristics based on
its industry and consumers who use the service. On the other hand when a company
wants to use new channel for providing service, such as internet, ATM must be aware
of the rate of acceptance of the new service in new channel, because it directly affects
on the perceived revenue of new channel.

In a case of e-service consumers not only must accept new service, but also
they should be satisfied with using new channel. Previous studies shows many
different factors directly affecting on rejecting e-services such as perceived risk
(Featherman et al 2003) which related to the media that service is provided by means
of it. There are many other factors affecting on adoption/ rejection an e-service that
related to the persons abilities and perceptions which help us to predict their behavior
in a case of facing with new phenomena. (Aizen 1975) On the other hand there many
other researches work on e-ticket and online reservation in particular industry which
in our case is airlines.( LAW et al 2000) (Lawrence 2005) focused on companies point
of view not passengers. Now we are interested in working on Iranians e-service
adoption which consists of studying Iranians personality and characteristics and their
ability to use internet, their perceived usefulness of using e-service provided by
airlines, level of trust and their uncertainties when want to use e-ticketing.

1.6 Purpose of research

Based on the reasoned above, the purpose of this study is working and
understanding dimensions influence on Iranians decision to adopt / reject an e-service
and specially the e-ticketing as only e-service provided by airlines in Iran.

1.7 Research outline

This study is divided to five chapters, the content of first chapter has already
presented, and now the outline of the study will be illustrated in figure 1-4. Chapter
two provides overview of related topics and studies (i.e. previous researches in e-
service and e-ticketing) Chapter three describes research methodology has been used
in this research. Chapter four provides information about the result of analyzing data

22
which has been gathered from different samples explained in chapter three. Chapter
five conclude this paper by discussion about the finding, implications for researchers
and implications, providing suggestion for future researches and explaining
limitations of current study.

Figure 1-4- Research Structure

23
Chapter Two

2 Literature review
This chapter provides a review of the literature necessary to build the theoretical
foundation for this research.

24
2.1 E-services and Service

2.1.1 Service
Without understanding service and its role in economic changes, its not
possible to fully appreciate the importance of e-service.

A service is any act or performance that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its production
may or may not be tied to a physical product.(Kotler 2003) Advancing technology has
resulted in a shift, in advanced economies, from goods to service. Consider any key
growth indicatornew jobs created, new businesses created, growth in Gross
Domestic Product. In every case, service has been the major source of growth(Shugan
1993) By growing services, manufacturers find it suitable way to differentiate their
products. In fact, for many goods producers, service is becoming a key revenue
(Kotler 2003). There are four main characteristics for service :

Intangibility
Services are intangible. Unlike physical products, they cannot be seen, tasted,
felt, heard, or smelled before they are bought. The person who is getting a face lift
cannot see the exact results before the purchase, just as the patient in the psychiatrists
office cannot know the exact outcome before treatment. To reduce uncertainty, buyers
will look for signs or evidence of the service quality.
They will draw inferences about quality from the place, people, equipment,
communication material, symbols, and price that they see.

Inseparability
Services are typically produced and consumed simultaneously, unlike physical
goods, which are manufactured, put into inventory, distributed through resellers, and
consumed later.

Variability
Because services depend on who provides them and when and where they are
provided, they are highly variable.

25
 Perishability
Services cannot be stored; once an airplane takes off or a movie starts, any
unsold seats cannot be held for future sale. Perishability is not a problem when
demand for a service is steady, but fluctuating demand can cause problems. (Kotler
2003)
The service revolution has increasingly been an information revolution,
because information service is the highest growth area in service. Information service
is that aspect of service in concept of information service. By its very nature, the
Internet is a network that permits the interchange of information. The purest
commercial utilization of the special characteristics of this environment is interactive
information service, with consumer wants and needs going in one direction, and
highly customized information going in the other direction. This interactive
information service is the critical backbone of the new e-economy, and is critical to
understanding the role of e-service in this new domain.(Rust and Lemon 2001)

2.1.2 e-Service and business environment

In era of e-service defining new element will be necessary; figure 2 will show
some of the element of new paradigm shift.

Figure 2-1 - A paradigm shift from traditional e-commerce to e-service (Rust and
Kannan june 2003)

From Service to e-Service

26
 Weather a company is a manufacture or service provider, intangible
components of its offering play a pivotal role in winning and maintaining a satisfied
customers(Roland T Rust and Kannan 2002) . In order to show the importance of this
statement figure 3 shows that a company is broken down to four main components:
o Physical product
o Service product
o Service environment
o Service delivery(R.T. Rust and Oliver 1994)

By using Internet as a alternative marketing channel, many service

components have been transferred to the e-service (e.g. e-learning, online shopping,
etc.) ,Its possible that many businesses operate in both the traditional channel and e-
channel, and thus have traditional service components alongside e-Service
components. Also Technology advancement, as a factor which accelerates this new
paradigm shift, affect on transformation to e-Service in three ways which affect on
cost and efficiency :
o Transformation of the Physical Product (Form Product to Service)
o Creation of Service Intermediation
o Creating of New Market

27
 Figure 2-2 Transformation to e-Service(Roland T Rust and Kannan 2002)

Transformation of the Physical Product

The advance of electronic networks and channels a means of distribution has
had a significant impact on digital and information based products.(Rust and Kannan
2002) Now , some physical product can be replaced by services offered by service
providers or new concepts(answering machine, books, tickets).This transformation
has significant implications for building customer relationships and exploring new
opportunities and market , specially in domain of network-based, digital, and
information-based product.(Roland T Rust and Kannan 2002) As the nature of market
offerings changes from the physical product to the service product, the structure of
markets changes to accommodate intermediaries who are service providers. We argue
that organizations across many industries will have to embrace such transformation to
remain competitive. This is especially true of firms in the information products realm.
Software producers such as Microsoft are viewing software as a service to which
customers can subscribe.
The contracts for software purchase are looking very similar to service
contracts. The music recording industry is being forced to offer subscription-based

28
music service over the e-channel in reaction to peer-to-peer media sharing,
transforming their product offering to a service offering. But this necessity is not
limited to information products. Grocery chains are looking to use loyalty cards and
electronic purchase tracking to use service as a differentiator to ease price
competition. Focused one-to-one promotion and marketing efforts based on
information gathered using these cards allow the grocery chains to develop
relationships with their customers. They provide value to customers through focused
information provision, reduced search time, increased convenience, and a perception
of control in their transactions, as much as music subscribers could one day derive in
their Internet transactions with music service providers. They sell a grocery service
with value derived from service components rather than commodity-like products. In
transforming product to service, organizations are forced to be customer-centric. A
one-time transaction becomes a longer-term relationship providing opportunities for
focused selling of products/services that increase customers value. Firms must
understand the customer better as the focus changes from brand equity to customer
equity. (Roland T Rust and Kannan 2002)

Creation of Service Intermediaries

The transformation of physical product to service products has also led to
creation of service intermediaries(Roland T Rust and Kannan 2002) The rapid
development of technologies and their complexity, made it very difficult for firms
(producers) to be service providers for their products. It means that firms need to
outsource their technology-based services, including e-Services- to outsourcers. This
outsourcing made service providers stronger and capable.

From cost reduction to revenue expansion

Profitability is based on revenue expansion more than cost reduction, with
revenues driven by enhanced service and higher levels of customer satisfaction
(Figure 2-3)

29
 Figure 2-3 - E-commerce paths to profitability (Rust and Kannan june 2003)

Improved customer satisfaction and also retention, will increase the revenue
and it means that by using advance technology and offering services which are
important for customer, its possible to have more profit without reducing cost.

From Brand Equity to Customer Equity

The concept of customer equity, unifies customer value management, brand
management, and relationship/retention management, it's the basis for a new strategic
framework from which to build more powerful, customer-centered marketing
programs that are financially accountable and measurable.

Quantitatively speaking, a firm's customer equity is the total of the discounted

lifetime value of all of its customers which is there are three main driver for it:
o Value equity
o Brand equity
o Retention (Relationship) equity (Rust and Lemon Spring 2001)

Value equity is defined as the customer's objective assessment of the utility of

a brand, based on the perceptions of what firm offered. Using e-Service within Value
equity ,affects on quality sub drivers which are result of element of quality in
customer service, such as response time to email inquiries, customization of product
,etc.

Brand equity is defined as the customer's subjective and intangible assessment

of the brand, above and value equity. E-service capabilities in this field affect on
customer's attitude toward using a brand for example because of using secure

30
channels for placing an order in the website or having clear strategies about
customers' privacy which is important factors for e-customers(Ceaparu, Demner et al.)
And also successful e-Service have potential to create significant word-of-the mouth
for a firm's website(Rust and Lemon Spring 2001)

Relationship equity is defined as the tendency of the customer to stick with the
brand, over and above the value and brand. This relationship helps the company to
learn about individual customer or customer segment expectations, needs and
demands, and thereby increasing their likelihood of contribution the relationship with
firm.

Each of the strategies noted above can be utilized to engage the consumer in
distinct forms of interaction and dialog with the firm. Objective value is created for
the consumer through Value Equity, the customer's subjective value of the firm's
offerings is enhanced through Brand Equity, and the customer's bond with the firm is
strengthened through Relationship Equity. The cumulative effect grows the firm's
overall Customer Equity.(Rust and Lemon Spring 2001)

2.1.3 Customers and e-Service

The historic development in the service economy and the ongoing emergence
of the e-economy have been accompanied by shifts in consumer expectations in three
specific areas:
o The importance of the buying experience,
o The importance of control
o The role of personalization(Rust and Lemon Spring 2001)

The Buying Experience

Pine and Gilmore suggest that providing a unique buying experience is the key
to winning the hearts and minds of consumers in the new millennium (Pine and
Gilmore 1999).In fact when a customer has a good or bad experience about offered
service or product, he/she is on the first step of becoming a loyal customer. Their
work indicates that consumers value the experience of a good or service more than its
actual tangible valuein fact, the experience becomes a key element of the overall
"product" being purchased and consumed. Other researchers have begun to examine

31
the consumer's experience via the Web with the flow construct, suggesting that it is
possible to measure the extent and intensity of the consumer's experience on the Web
(Novak, Hoffman et al. 2000). The importance of experience to the consumer
underscore the importance of getting e-service right.

Customer Control
New advances in technology have made it possible for customers to take
greater control of the purchase and consumption experience than ever before. The
customer has always had the power to choose to purchase or not. Now, however, not
only do customers choose whether or not to purchase the product,they choose the
channel through which to acquire the product, the channel through which the product
will be delivered, the extent of personalization of the product, and the extent to which
they would like to be involved in or responsible for the development or delivery of the
product. This shift toward greater consumer control leads to higher consumer
expectations of ease and convenience throughout the entire purchase, consumption,
and post-purchase sales-support process. These expectations continue to escalate.
Consumers may have forgiven unresponsiveness to e-mail queries a few years ago,
but now it is as critical as responding to an incoming phone call (Roth 2000).

Personalization
Finally, the new technologies that together represent the e-experience for
consumers have created exciting opportunities for the personalization of
communications, product offerings, delivery options, and post-purchase support.
Customers' expectations of personalization will escalate with the continued
enhancement of technological capabilities. However, it is not sufficient just to utilize
past purchase patterns to develop customized interfaces for customers. Solutions such
as collaborative filtering will not be sufficient, because they are not personalized
enough. Customers expect to be truly "known" by the firm. Consider the underlying
assumptions in collaborative filtering. Collaborative filtering assumes that the
customer's needs are static and can be matched with an exemplar customer with
similar static needs. Why will this not be sufficient? If a customer has different needs
in different situations, then the assumptions of collaborative filtering will not hold.
The approach will be ineffective and may even lead to confused, disgruntled
consumers. Consider the consumer who purchases a size 4 blouse (for her daughter)

32
and a size 12 shirt for herself. This individual should not be "averaged" to predict
future purchases of size 8.

2.1.4 E-service Orientation

E-service is a customer-centric concept, and thus, the strategic and tactical
components of an e-service orientation focus on increasing value defined at the
customer level. At the strategic level, an e-service orientation calls for moving the
emphasis from products and transactions to service and relationships, and building
customer equity. These are supported at the tactical level by personalization and
customization, self-service strategies, privacy and security risk management, and e-
service measurement.(Roland T Rust and Kannan 2003)

Figure 2-4 - e-Service Orientation(Rust and Kannan june 2003)

33
2.1.5 Challenges for e-Service
E-service orientation calls for designs of systems and processes that minimize
the feeling of discomfort with technology in general and the degree of insecurity
regarding electronic transactions. In an electronic environment the consumers need
for control and protection of privacy is quite intense. This implies organizations
should resist using the customer information they have to take advantage of customers
through indiscriminate cross-selling and up-selling; focus instead on providing value
to customers. Security and privacy concerns have a critical impact on the consumers
perceived control in online situations, which in turn determines the consumers
perceived e-service quality. In the era of e-service, a firm effectively managing these
concerns builds the trust of its customers and contributes to their lifetime value. The
desire for privacy also makes viable a market for the maintenance of e-privacyitself
an e-service.

The risk associated with e-commerce and also e-Service classified in the
following categories:
o Business practices
o Information protection
o Transaction integrity (Ceaparu, Demner et al. 2002)

Business practices refer to whether a company will carry out its orders for
products and services as it claims and whether there are product guarantees.

Information protections refer to the website(company) willingness to protect

customer private information. Transaction integrity means that the company has a
history of processing transactions accurately, completely and appropriately billing its
customers.The first type of risk which has mentioned above might be possible to
reduce by setting appropriate strategies by firm. But in as much as the e-service
orientation rests on the benefits derived from personalization and customization, it
also requires that customer privacy and security risks be effectively minimized.(Rust
and Kannan june 2003)

34
 E-channels lack the human touch to build the relationship with the customers,
but with e-Service, offline channels have been replaced by e-channels. It's important
to understand that the successful e-Service strategy, mainly, is based on accurate
information provided by customers who are likely to provide information when they
are not identified.(Labs 1999) or the customers who provides accurate information
when they are using reputed firms website(Frels and Kannan 2001). This concern is
defined as a "Privacy Risk" formally is a consumer's concern about misusing his/her
private information by the firm. Another challenge that e-Service faced with is
"Security Risk" which is refer to consumer's concern that an unknown third party will
obtain the consumer's personal or financial information without his/her knowledge
while he/she is transacting business online or the third party will disrupt his/her
transaction online(Frels and Kannan 2001).If these factors are not properly managed ,
they influence not only the acceptance of e-service by customers, but also the design
of e-service by firms.

35
2.2 Adoption

2.2.1 Definition
When new product or service is offered by a company, it is necessary to
convince customer to buy new product or service. Motivating customers by
manufactures or service providers is complicated process which part of it is based on
customer characteristics and behaviors. This mental process through -which an
individual passes from first hearing about an innovation to, final adoption is called
Adoption Process.(Kotler 1999) (Adoption is an individuals decision to become a
regular user of a product.(Kotler 2003)) .

2.2.2 Stages of adoption process

An Innovation is any good, service or idea that Is perceived by someone as
new (Kotler 2003) If an Idea didnt spread through customers , it wont be accepted.
Rogers (M.Rogers 1995) defined innovation diffusion process as the spread of a new
idea from its source of invention or creation to its ultimate users or adopters. In
order to adopt new product or service, customers go through five steps of Adoption
process which listed as bellow:

1. Awareness. The consumer becomes aware of the new product, but lacks
information about it.

2. Interest. The consumer seeks information about the new product.

3. Evaluation. The consumer considers whether trying the new product

makes sense.

4. Trial. The consumer tries the new product on a small scale to improve his
or her estimate of its value.

5. Adoption. The consumer decides to make full and regular use of the new
product.(Kotler 1999)

36
 If companies want customers to consent their new services or products, they
have to work on strategies helping customers to go through these steps. Fiure 2-5
shows adoption steps:

Figure 2-5 -Stages of Adoption process(M.Rogers 1995)

2.2.3 Adoption categories

The time element of the diffusion process allows us to generate diffusion
curves and to classify adopters into categories. Because individuals in a social system
do not adopt an innovation at the same time, innovativeness is the degree to which an
individual is relatively earlier or later in adopting new ideas than other members of a
social system(M.Rogers 1995).
People differ in their attitude to use new product or service, some people are
always consumption pioneer and customers that we call them early adopters. Some
people are not interested to use services before majority of people accept using the
product. Figure 2-6 shows the adopter categorization on the basis of Relative Time of
Adoption of Innovation.

Figure 2-6 -Time of Adoption of innovation (Rogers 1983)

37
 Figure shows that diffusion of innovation follows a normal-bell shaped curve
when we draw the adoption over time. After slow start which has been began with
innovators and people who are always enjoy using new products and services ,an
increasing number adopt new Idea and number reach the peak and at the end small
part of society who are not interested in adopting to new Idea remain. Bases on this
curve we can categorize adopters:

o Innovators are technology enthusiast and enjoy tinkering with new product.
They are always member of Alpha and beta test group and report early
weakness. In fact they are the gate way of new idea to the other part of society.
If we look at this network of interpersonal , innovators are starting point of
information exchange. Prerequisites for being an innovators are having
knowledge in order to use new technology , substantial financial resources in
order to deal with possible loss from an unprofitable innovation

o Early adopters are visionaries who search for new technologies that might
give them a dramatic competitive advantages. This group of people are
powerful enough to buy a product or use a service with high price. They adopt
new Idea before average number of people. This group decrease uncertainty
about new Idea by adopting it.

o Early majority pragmatist who adopt the new technology when its benefit are
proven and a lot of adoption has already taken place
o Late majority are conservatives who are risk averse, technology shy and price
sensitive. This group accepts new ideas after the average number of system,
and they need to be sure that uncertainties have been removed and there is no
risk in adopting new Idea.
o Laggards are skeptics who resist the innovation until they find that the status
quo is no longer defensible. They are the last group of society that adopt to the
innovation

38
 Rogers sees the five adopter groups as differing in their value orientations.
Innovators Rogers (M.Rogers 1995) suggests that the adoption of a new idea results
from information exchange through interpersonal networks. The first adopter of an
innovation discusses it with other members of the system, and each of these adopters
pass the new idea along to other peers. The diffusion curve begins to level off after
half of the individuals in a social system have adopted, because each new adopter
finds it increasingly difficult to tell the new idea to a peer who has not yet adopted, for
such non-knowers become increasingly scarce. The segment of the diffusion curve
between 10 to 20 percent adoption is critical mass or the heart of the diffusion
process (M.Rogers 1995) and represents the transition from the early adopter level
of innovativeness to the early majority. (Jacobsen 1998)

Besides, we categorize non adopters as bellow:

o The unaware group: Those consumers who are not aware of the new product
o Symbolic rejecters: Who, though aware of the product, have decided against
buying it.
o Symbolic adopters: Who know the product will be useful for them but have
not tried it.
o Trial adopters: Who have tried the product and also rejected the same.
o Trial rejecters

2.2.4 Models
Adoption is a matter of subject which is not predictable. Its based on
unpredictable persons behavior; individual behavior that can be explained by
behavioral theories such as the theory of reasoned action (TRA) (Fishbein and Ajzen
1975) and the theory of planned behavior (TPB) (Ajzen 1991) , Information system
theories such as Technology acceptance model (TAM) Fred Davis and Richard
Bagozzi (Bagozzi et al., 1992; Davis et al., 1989). These two formers are based on
TRA in literature. In fact TPB has been developed by Ajzen in order to complete TRA
and TAM replaced behavioral element of TRA with two important Technology
acceptance measures, ease of use and usefulness.

39
 In these theories and model some words are specially used in order to focus on
special meanings and each of them has been used accurately, in order to have a better
understanding some of them has been explained in table 2 -1.
A psychological tendency that is expressed by evaluating a Particular
Attitude
behavior with some degree of favor or disfavor

An action that is carried out at a specified time and is described in terms

Behavior
of the action itself, its target and the context

Behavioral beliefs The perceived consequences of an action

Beliefs about the likelihood that one possesses the resources and
Control beliefs
opportunities thought necessary to execute the behavior
A persons motivation in the senses of his or her conscious plan to exert
Intention
effort to carry out a behavior
-descriptive Perceptions about what important people actually do
-injunctive Perceptions about what important people think a person
Norms
should do
-subjective Perceived social pressure to perform a behavior
Perceptions of significant others preferences about whether one should
Normative beliefs
perform a behavior

Outcome evaluation Evaluation of the perceived consequences of an action

Perceived
Perceptions about how easy or difficult it is to perform the Behavior
behavioral control

Self-efficacy The conviction that one can successfully execute a given behavior

Table 2-1 - Some important word in TRA and TPB (Jillian J Francis, Martin P Eccles et al.
2004)

2.2.4.1 TRA
Theory of Reasoned Action suggests that a persons behavior is determined by
his/her intention to perform the behavior and that this intention is a function of his/her
attitude toward the behavior and his/her subjective norm s (i.e., social influence). This
theory assumed that most human social behavior is under volitional control and can be
predicted from intentions (Ajzen 1975)

40
 Figure 2-7 - Theory of reasoned action(Fishbein and Ajzen 1975)

Attitude toward the behavior is defined as the individuals positive or

negative feelings about performing a behavior . It is determined through an
assessment of ones beliefs regarding the consequences arising from a behavior and
an evaluation of the desirability of these consequences. Formally, overall attitude can
be assessed as the sum of the individual consequence x desirability assessments for all
expected consequences of the behavior.

Subjective norm is defined as an individuals perception of whether people

important to the individual think the behavior should be performed. The contribution
of the opinion of any given referent is weighted by the motivation that an individual
has to comply with the wishes of that referent. Hence, overall subjective norm can be
expressed as the sum of the individual perception x motivation assessments for all
relevant referents.

The best predictor of behavior is intention. Intention is assumed to capture

the motivational factors that influence a behavior (Ajzen 1991) it shows how hard
people want to try in order to perform a behavior. Generally how much the intension
is stronger, the performance of behavior is higher (Figure 2-7).

2.2.4.2 TPB (Theory of planned behavior)

This theory is easier to perform and also has been tested in different situations.
Its clear that basically, TPB has not been designed for working on IS usage and aims
to predict different behaviors. According to the TPB (Ajzen 1991) intention is
determined by three things: attitude toward the specific behavior, subjective norms
and perceived behavioral control. After defining two main predictors of TRA, now we

41
can easily present easy definition for TPB predicators and intention: To predict
whether a person intends to do something, we need to know:

o Whether the person is in favor of doing it (attitude)

o How much the person feels social pressure to do it (subjective norm)
o Whether the person feels in control of the action in question (perceived
behavioral control)(Jillian J Francis and Jeremy Grimshaw 2004)

The theory of planned behavior holds that only specific attitudes toward the
behavior in question can be expected to predict that behavior. In addition to
measuring attitudes toward the behavior, we also need to measure peoples subjective
norms their beliefs about how people they care about will view the behavior in
question. To predict someones intentions, knowing these beliefs can be as important
as knowing the persons attitudes. Finally, perceived behavioral control influences
intentions. The construct of perceived behavioral control was added in an attempt to
deal with situations in which people may lack complete volitional control over the
behavior of interest. For example, consider a college graduate who intends to secure
an advertised position in a high-tech company. It is immediately apparent that
carrying out this intention is not completely under the persons control. Although she
may do everything in her power to obtain the positionsending in her resume with a
persuasive accompanying letter, calling the companys personnel department, and
establishing contacts with current employeesshe will be disappointed if the
employer decides to hire a different applicant who is perhaps more qualified or who
has connections inside the company. The lack of control in this case resides in the fact
that getting an advertised position requires action not only on the part of the applicant
but is also dependent on the actions of one or more other individuals. In fact, for this
reason, getting a job would usually be classified as a goal, not a behavior, whereas
applying for the job might be considered a behavior performed to attain the goal.
These predictors lead to intention. A general rule, the more favorable the
attitude and the subjective norm, and the greater the perceived control the stronger
should the persons intention to perform the behavior in question. (Ajzen 2002) Figure
2-8

42
Figure 2-8-Theory of planned behavior and reasoned action(Ajzen and Fishbein)

It is important to realize that the behavioral, normative, and control beliefs

people hold about performance of a given behavior are influenced by a wide variety
of cultural, personal, and situational factors. Thus, we may find differences in beliefs
between men and women, young and old, Black and White, educated and uneducated,
rich and poor, dominant and submissive, shy and outgoing, and between individuals
who have an individualistic and those who have a collectivistic orientation. In
addition, they may be affected by the physical environment, the social environment,
exposure to information, as well as such broad dispositions as values and
prejudices.(Fishbein and Ajzen 1975)
This theory is easy to operationalize and has received substantial empirical
support in information systems and other domains as well such as:
o Intention to Commit Driving Violations: An Application of the Theory of
Planned Behavior (D. Parker, A. S. R. Manstead et al. 1992)
o Investment Decisions and the Theory of Planning Behavior (East 1993)
o Why Students Take Elective Business Ethics Courses: Applying the Theory of
Planned Behavior (Randall 1994)
o Evaluating and Extending the Theory of Planned Behavior (Randall 1994)

43
 o Understanding Information Technology Usage: A Test of Competing Models
(Taylor and Todd 1995)

2.2.4.3 TAM (Technology Acceptance Model)

TAM was derived from the theory of reasoned action (TRA) (Fishbein and
Ajzen 1975) While TRA is a general theory of human behavior, TAM is specific to IS
usage. Figure 2-9 shows TAM.

Figure 2-9 -TAM (Davis 1989)

Davis asserted that perceived usefulness and ease of use represent the beliefs
that lead to such acceptance. Perceived usefulness is the degree to which a person
believes that a particular system would enhance his or her job performance (i.e., by
reducing the time to accomplish a task or providing timely information). Perceived
ease of use is the degree to which a person believes that using a particular system
would be free of effort.(Davis 1989)

Two other constructs in TAM are attitude towards use and behavioral intention
to use. Attitude towards use is the users evaluation of the desirability of employing a
particular information systems application. Behavioral intention to use is a measure of
the likelihood a person will employ the application (Ajzen and Fishbein 1980)

Empirical tests suggest that TAM predicts intention and use. (Davis 1989)
found that TAM successfully predicted use of a word processing package. He reports
that EOU (Ease of use) and U (usefulness) were significantly correlated with use of an
office automation package, a text editor, and two graphics packages.

44
 A limitation of TAM is that it assumes usage is volitional, that is, there are no
barriers that would prevent an individual from using an IS if he or she chose to do so,
Although there many factors preventing a person from using an application such as
perceived user resources(Kieran Mathieson, Eileen Peacock et al. 2001) and perceived
behavior control (Ajzen 2002)

2.2.4.4 Triandis Model

Similar to TRA, TPB and TAM, Triandis model assumes an attitude-intention-
behavior relationship. Triandis model (Triandis 1980), however, includes a number of
relevant variables. The model, as presented in Figure 11, takes into account the
important constructs such as habit, social factors and facilitating conditions. It
postulates that the probability of performing an act is a function of (1) habits; (2)
intention to perform the act; and (3) facilitating conditions. The intention of
performing a particular behavior is a function of the (a) perceived consequences; (b)
social factors (including norms, roles and the self-concept); (c) Affect. Facilitating
conditions refer to the necessary resources and supports to perform a behavior, for
example, time, money, expertise, hardware, software, network connection, etc.
(Figure 2-10)

The inclusion of this construct has made up the deficiency of TAM, which
assumes that usage is volitional and that no barriers would prevent an individual from
using an IS . (Chang & Cheung, 2003)

45
 Figure 2-10 - Triandis Model

Triandis model has been widely adopted in the studies of social and health
behavior, and consumer behavior. In recent studies, the Triandis model has been
applied to technology adoption researches including the adoption of personal
computer, internet/WWW and Executive Information System (EIS)(Cheung, Chang &
Lai, 2000). For example, Triandis model and its extensions were used to understand
the determinants of users intention for using the internet/WWW in working
environments and for shopping (Cheung, Chang & Lai, 2000).

2.2.5 Comparison of the theories

Although the TAM, TRA, TPB and Triandis focus on different determinants to
explain the consumer behavior in technology adoption, these theories share some
similarities. Firstly, TRA, TPB, TAM and Triandis model assume an attitude-
intention-behavior relationship, that is, cognitive and normative or affective beliefs
form attitude, which, in turn, has influence on behavioral intention and actual usage of
behavior. Secondly, the perceived usefulness (PU) in TAM is similar to the perceived
consequences in Triandis model. These constructs are cognitive component of
individuals attitude. The constructs of PU, relative advantage and perceived
consequences in various models further justify the rationale in TRA that the beliefs
about the consequences of the behavior are keys to the formulation of attitude towards
the behavior. Thirdly,perceived behavioral control in TPB efers to ones perception of

46
whether a behavior is under his control and whether he has access to resources and
opportunities required to facilitate a behavior (Ajzen, 1991). In this connection,
facilitating conditions in Triandis model is related to the perceived behavioral controls
in TPB. However, Triandis model posits that facilitating conditions only affect the
actual behavior while the perceived behavioral controls in TPB affect both the
behavioral intention and actual usage (Chang & Cheung, 2003).

2.3 E-Services and adoption

2.3.1 Common factors

Adoption of e-services which has been offered by manufacturers or service
providers is not easy. In fact adoption of e-services is based on the rate of customer
internet adoption instead of traditional channels. It means that basic factors which
affect on e-service adoption will be the same as internet adoption and also e-
commerce adoption which focuses on the customers willingness to use internet
instead of traditional channels in order to purchase a product, searching for
information and using a service.

With respect to the research on consumer information search through the

internet,(Han and S-R. 1996) examined the influence of consumer characteristics such
as the internet usage skill on the playfulness in the internet setting. They contended
that the higher a consumers internet usage skill, information search performance, and
search proficiency, the higher his or her playfulness in using the internet. (Sohn and
Ahn 1999) showed that consumers knowledge affects their adoption of e-
commerce.(Liang and Huang 1998) Found that customers experience as an important
factors in online purchasing. (Kim and Kwon 1999) contended that a consumer whose
lifestyle is more progressive and assertive in leisure activities uses the internet more
frequently and searches information through the internet more often. (Limayem,
Khalifa et al. 2003) added personal innovativeness as another personal characteristic
in order to online shopping.(Yang and Cho 1999) examined the impact of consumers
need for cognition, and search objectives on consumer information search through the
internet. These factors are likely to influence a consumers decision regarding whether
they will use offline channels or online channels for their information searching.

47
 The KNP Report on the Internet User (Research 1999) published by
IMResearch showed that user satisfaction with the website is decided by information
quantity, design, transmission speed, user-friendliness of search structure, and update
pace. It suggests that website characteristics are likely to influence consumer
information search through the internet.

(Moon 2004) clustered factors which influence customer adoption of the

internet as the media for searching information and purchasing products instead of
traditional offline channels in figure 2-11.

Figure 2-11 - Influencing factors of consumer information search and buying behavior through
the internet (Moon 2004)

48
2.3.2 E-service adoption
Internet-delivered e-service are increasingly being made available to the
consumer, however there are not enough research in order to evaluate customer
potential adoption.

It is important to distinguish the difference between conducting basic purchase

transactions and adopting e-services. The e-service adoption decision is essentially
different from most typical e-commerce purchases, as they create a longer-term
relationship between the consumer and service provider. There is more at stake for the
consumer as the importance of the interaction is more
prominent; hence, the adoption decision is more complex., as they initiate a
long term relationship between the consumer and service provider .Additionally ,
unlike product purchases where consumer receive tangible good, when consumers
purchase an e-Service they receive only access to the functionality provided by a
web-portal.(Featherman and Pavlou 2003). Based on literature, researchers found
different factors which affect on e-Service adoption.

Although e-Commerce adoption and e-Service adoption are different but the
important fact is that there are some factors which are the same for both. For example
customer attitude toward using a web is a factor which is important when user wants
to use e-Service or e-Commerce. Therefore some of the factors which has been
mentioned could be the same as e-commerce adoption or web adoption.

2.3.2.1 Risk- related factors

According to Koller (Koller 1988), the degree of importance of the situation
determines the potential effect of risk. Customers unwillingness toward to complete
online Consumers have shown reluctance to complete online transactions (Hoffman,
Novak et al. 1999), primarily due to risk concerns. Therefore, perceived risk is posited
as a prominent barrier of consumer acceptance of e-Services in an e-commerce
environment. Consumer perceptions of risks inherent in product adoption and usage
have been studied for many years (Bauer and Cox 1967; Dowling and Staelin 1994).
This immense literature on perceived risk however has not been applied to the
relatively new e-services context in an attempt to better predict evaluation and
adoption.

49
 Perceived Risk
Perceived risk is commonly defined as an uncertainty regarding possible
negative outcomes of using a product or service. It has formally been defined as a
combination of uncertainty plus seriousness of outcome involved.(Bauer and Cox
1967) and the expectation of losses associated with purchase and act as an inhibitor
purchase to purchase behavior (Peter and Ryan may 1976)
Perceived Risk enters the information systems adoption decision when
circumstances of the decision create

o Feelings of uncertainty,
o Discomfort and/or anxiety (Dowling and Staelin 1994)
o Conflict aroused in the consumer (Bettman 1973)
o Concern,
o Psychological discomfort (Zaltman and Wallendorf 1983)
o Making the consumer feel uncertain (Engel, Blackwell et al. 1986.)
o Pain due to anxiety (Taylor April 1974)
o Cognitive dissonance (Festinger 1957.), (Germunden 1985).Tthis situation
happens when a person try to evaluate a service or product and find it ,
beneficial and also risky .(Featherman and Pavlou 2003) used this factor for
the situations that by using the product or service, the potential task
performance will increase but at the same there are problems related to the
task performance and the uncertainties of the Internet as a unsecured
communication medium which activities occur over it.

Facets of Perceived Risk

(Bauer and Cox 1967) identified two major categories of perceived risk,
(a) performance which it has three types as listed bellow
o Economic
o Temporal
o Effort

(b) psychosocial with two category as

o Psychological

50
 o Social

Cunningham (1967) further clustered perceived risk to six dimensions

o Performance,
o Financial,
o Opportunity/time,
o Safety,
o Social,
o Psychological loss.

According to the e-service condition which is not harmful for human health
the safety can be replaced by privacy (Featherman and Pavlou 2003) .Besides found
that time is also important factors for using internet and e-Service for Time oriented
persons who are concern about the risk of wasting time(Featherman and Pavlou
2003). It means that this group of people prefers to adopt e-services in order to save
time and increase perceived time risk. Table 2-2 shows the facet of Perceived Risk.

Perceived Risk Facet Description Definition

The possibility of the product malfunctioning and not performing as it
Performance Risk was designed and advertised and therefore failing to deliver the
desired benefits.
"The potential monetary outlay associated with the initial purchase
price as well as the subsequent maintenance cost of the product.
Financial Risk
(ibid). The current financial services research context expands this
facet to include the recurring potential for financial loss due to fraud.
Consumers may lose time when making a bad purchasing decision
by wasting time researching and making the purchase, learning how to
Time Risk use a product or service only to have to replace it if it does not perform
to expectations.

Potential loss of self-esteem (ego loss) and ego frustration based on

Psychological feelings about oneself. Consumers feel unwise if they experience a
Risk non-performing product and may experience feelings of harm to their
self-image from the frustration of not achieving their buying goals.
Potential loss of status in ones social group as a result of adopting a
Social Risk
product or service, looking foolish .
Privacy Risk Potential loss of control over personal information, such as when

51
 information about you is used without your knowledge or permission.
The extreme case is where a consumer is spoofed. Meaning a criminal
uses their identity to perform fraudulent transactions.
Overall Risk A measure of perceived risk when all criteria are evaluated together.
Table 2-2 - Perceived risk

In addition , (Ceaparu, Demner et al. 2002) classified risk associated with e-

commerce in factors a which In my opinion this classification is based on service
provider risk related, although the former was consumer perceived risk which was
more psychological. This new type of classification will help service provider in order
to decrease the risk and increase the trust :

o Business practices: is company able to fulfill its claim about products or

service?
o Information protection: does company have any customer privacy strategy in
order to convince them that their private information will be secure?
o Transaction integrity: Has company effective, accurate and appropriate
transaction control?

Numerous studies have suggested that the most appropriate and effective way
of minimizing online risk is through establishing trust.(Klang 2001) (Turban, Lee et
al. 2002) have emphasized the importance of establishing a high level of trust with
both current and potential customers in order to diminish perceptions of risk.

2.3.3 Trust Related Factors

Although sometimes factors affecting on risk is the same as trust with negative
affect on customer adoption, but there are different researches worked in trust as
independent factors affecting on customer to use an online store(Lee, J.Kim et al.
2000; Ceaparu, Demner et al. 2002) as a part of third step of adoption .Some of these
factors found by J.Lee et al shows that comprehensive information about products,
values shared with other customers and divers means of communication can
effectively increase trust, which in turn can increase customers loyalty(Lee, J.Kim et
al. 2000).In my opinion these factors will be important even for post-purchase
adoption or at the first stages of adoption for customers who receive information

52
about launching new service or product and step of interest which customer try to
find more information about .

Moreover Eggers researches (Egger 1999; Egger and Groot 2000) shows that
trustworthiness often depends on strength of brand name which is its reputation ,
customer awareness of firms privacy policy which ensure him/her about what firm is
going to do with private information. Also there are factors that affect customers
judgments about trustworthiness such as website certificates provided by third parties
or legal framework that support transaction in the website. (Cheksin 1999) found six
fundamental forms for communicating trust are : brand ,navigation, fulfillment,
presentation, up-to-date technology and seals of approval. And also there is a research
which (Ceaparu, Demner et al. 2002) shows that there are three important features for
customers in order to trust a website which are customer service (Contact number
available, clearly state return policy, possibility of returning a purchase at the nearby
store) , testimonial and security feature representation such as text and graphic.

2.4 Airline Industry and using Internet

The airline industry is an area where the adoption of the Internet has been
growing rapidly. This growth has major implications not only for the customer
interface but also on the structure of the industry itself. There is a growing
dependence on the Internet for the promotion and sales of travel services.

Making a profit from the Internet is a major goal of many companies today.
Statistics have shown that there are increasing figures in either sales volume or
revenues made through the Internet. Online airline ticket sales reached approximately
$14.2 billion in 2002 (Foss 2003 ). Travel business on the internet accounts for about
15 percent of overall travel sales; about one half of that is spent on airline ticket sales.
Compared to e-retail sales, which accounts for only 1.5 percent of all retail sales
(Bureau 2003), the growth of internet airline services has proved astounding. E-ticket
penetration chart (figure2-12) (IATA 2006) shows the airlines willingness to use e-
ticket in order to reduce their cost and using its advantages.

53
 Figure 2-12-e-Ticket penetration in the world (IATA 2006)

Airlines companies that uses internet as interface with their customers are
focusing on changing value chain and adding new value added stages as a form of
corporate strategy.

2.4.1 Effect of Internet on airlines

The emergence of the Internet in the mid-1990s as well as the development of
Intranets and Extranets forced airlines to refocus their strategy on technological
innovations in order to enhance their competitiveness. Airlines identified the Internet
as a major opportunity to tackle distribution costs and to reengineer the structure of
the industry. Besides using ICT tools made the industry reengineer itself as it
introduced a number of ICT-enabled innovations including:

o Electronic/paperless tickets,
o Transparent and clear pricing led by proactive and
o reactive yield management,
o Single fare tickets with no restrictions on staying or Saturday nights rules,
o Commission capping and publication of net fares,
o Financial incentives for self-booking online,
o Auctions and online promotions,
o Powerful Customer Relationship Management Systems,
o Online and context-relevant advertising.(Buhalis 2003)

54
 (McIvor, OReilly et al. 2003) used this model in order to show the effect of
Internet on airline industry and the advantages for both industry and customers. (Table
2-3) Although the growth of internet based airline reservation services has been rapid,
internet sales have generally experienced slow growth because of barriers.

What are the factors affecting on airlines customers adoption?

Based on (McIvor, OReilly et al. 2003) research, its possible to find
important factors which affect on customers in order to use airlines website for
buying e-ticket . These factor can be clustered as bellow:

o Real-time decision-making mechanisms (Reduction of information

asymmetry helps customer to make a decision)
o Up-to-date information for customers (All the websites evaluated contained
up-to date information on flights, schedules, promotions and complementary
services. This will help the customer to make a best decision by comparison
different website. Also this way is better than old brochure which airlines
provide in order to provide information for their customers)
o Reductions in customers search and transaction costs (On-line buyers
benefit from better selection in terms of choice (of airlines, flights, schedules,
destinations, levels of service and complementary services); speed (time,
convenience of access capabilities on the Internet);and reduced transaction
costs (monetary, effort, mistakes))(McIvor, OReilly et al. 2003)
o Bundling products and services
o Offering additional services not directly related to the core travel offering
o Receiving low(er) prices/discounted fares
o Customizing offerings to suit individual customer needs
o New transaction structures play integral role in lowering transaction costs
for customers

55
 Table 2-3 - Impact of Internet technologies on the value of the air transport offering

Besides there several academic studies working on perceived risk. Recent

research explores the issue of perceived risk in the context of the unfairness of price
(Wirtz, Kimes et al. 2003) . They found perceived unfairness of pricing generates
perceptions of financial risk. Other researchers (Kolsaker, Kelley et al. 2004) found
that perceptions of risk and convenience are strongly associated with a reluctant to
purchase airline services online . Also the authenticity of the company or product is
not under question; therefore, it is likely that risk assessments of the medium rather
than the product are under evaluation. Of course this research shows that cultural
factors are important to using e-ticket too. (F.Cunningham, H.Gerlach et al. 2005)
found perceived risk is present at each stage of the consumer buying process. Their
findings show the introduction of financial risk and the continued significance of
performance risk at stage 4 (purchase stage). The presence of financial risk at the
point of purchase is easily explained, but the explanation for why performance risk

56
continues through the purchase and post-purchase stages is likely to be more complex.
Previous analyses of risk types suggest that financial risk is the most important
contributor to perceived risk. However, performance risk seems more important in the
case of internet airline reservation services. They key question is whether internet
airline reservation services are an anomaly or are representative of other internet
services.

2.5 Expected Contribution

The number of internet users in Iran is increasing steadily. According to the

current condition and with IATA aiming to achieve 100% e-ticketing around the
world by the end of 2007(2004), its necessary to work on this issue before the end of
the deadline, in order to help customers, to work with this new system and our
national airline industry in order to offer better services for their customers.

These issues are not possible without studying and understanding Iranian
customers behaviors and making services compatible with their needs. In fact,
running a website in order to provide e-services is prosperous when the target markets
accept it as a new channel for receiving services or information. Therefore I want to
find the factors important for Iranian customers in order to use online ticket and buy
their travel ticket from airline website directly.

These factors will help web designers to create attractive and user-friendly
airline websites and web developer to create online applications based on Iranian
characteristics and priorities. And also managers can make a better decision about
what they really want to provide for their customers in their website and how they
have to customize it in order to be suitable for Iranian customers.

2.6 Methodology

In order to work on this research we need to find the factors which will be
retrieved from previous researches that have been mentioned. Based on these factors
the questionnaire will be developed and distributed. According to the target of the
research which is finding the factors that impact on pre-purchased adoption of e-

57
service in a case of e-ticketing offered by airline companies, we decided to distribute
questionnaire to three groups:
o Online questionnaire for Iranian IT professionals.
o Iran air customers (As the only Iranian e-ticket provider)
o Customers of Iranian banks that they provide electronic cards and they have
contract with Iran air.
Note: All persons must be familiar enough with web and internet and didnt
buy any online ticket ( enough : Sufficient ability to use and surf the web and
navigate websites)

2.7 Conclusion

The purpose of this study is identifying the factors affecting e-services

adoption of Iranian customers. Theory of planned behavior models this adoption well.
Required parameters for TPB have been retrieved from previous studies which have
been mentioned. These basic factors which has been tested before will help managers
in order to understand their Iranian customer more by receiving information about
critical drivers of behavioral control, subjective norms and perceived behavioral
control of their Iranian customers and also this research will help web designers and
web developers in order to try to be close to Iranians not only for running airlines
website but also all websites for Iranians.

There are three factors which will be added in order to compatible TPB with
Iranian culture which has directly effect on the result. First based on literature new
link will be added to TPB which is Perceived risk, another one will be trust and at the
end perceived consequences which have been mentioned in literature review.

58
Chapter three

3 Research Methodology
In this chapter, we have formulated our research question based on theories
considered within the literature review in preceding chapter. In addition chapter
deals with the theoretical basis behind the chosen methods in research process,
research design and the method used to test relationships implied by research model
and research hypotheses. This chapter includes different steps i.e. 1)Research
Question 2)Research Purpose, 3) Research Approach, 4) Research Strategy, 5)
Sample Selection, 6) Data Collection and 7) Brief summary on Data Analysis.
Chapter will be used to develop questionnaire and conduct research.

59
3.1 Research question

The emerged research question is: What are the factors affecting on Iranian
customers adoption / rejection toward using e-ticketing through the web
In order to answer this question, we propose hypothesis based on literature
review and tried to find the answer for them based on research model. Although there
are many factors in literature, but we are interested in those differences related to their
difference adoption behaviors.

3.2 Research Model

3.2.1 Conceptual model and hypotheses

We found out that the combination of TPB and new links is suitable to identify
factors drives Iranians to buy thicket online. This model was developed specifically to
be applicable to the adoption decision for all groups of people, and it is therefore
intended to be a general model. Figure 3-1

3.2.2 Description of Hypotheses

After reviewing adoptions model, we developed out research model which has
been shown in figure 3-1. In this section we try to describe the reason of existence of
hypothesized link between different constructs in the context of e-ticketing.

3.2.2.1 Attitude
Attitude refers to the degree to which a person has a favorable or unfavorable
evaluation or appraisal of the behavior in question. As a general rule, the more
favorable the attitude and subjective norm with respect to a behavior, and the greater
the perceived behavioral control, the stronger should be an individuals intention to
perform the behavior under consideration. The relative importance of attitude,
subjective norm, and perceived behavioral control in the prediction of intention is
expected to vary across behaviors and situations (Ajzen 1991). Therefore attitude can
be considered as an important part of predicting and describing human behavior.
(Ajzen 1988)

60
 In this study, attitude represents the degree to which a passenger has a
favorable or unfavorable evaluation of purchasing e-ticket, for this context we
propose:
H1: Attitude toward using e-ticket will increase intention of purchasing ticket
online.
In table 3-1, Indicators of attitude has been presented:

Indicators
1. My decision to buy ticket online is a good idea.
2. I like to buy ticket through the Web.
3. Purchasing through the Web is enjoyable.
4. My feeling with using the e-ticket service is better than manual ticket buying.

Table 3-1-Attitude indicators

TrustW = Trust on Website, TrustB : Trust on Brand or organization, PBC : Perceived behavioral
Control, ATT: Attitude INT: Intention, SN : Subjective Norm ; PR : Perceived Risk, PC: Perceived
usefulness

61
Figure 3-1 Research Model

3.2.2.2 Subjective norm

The second predicator is a social factor termed subjective norm; it refers to the
perceived social pressure to perform or not to perform the behavior. Although there
are many cases show subjective norms impact on intention (Ajzen 1991), but in some
case subjective didnt have impact on intention to perform behavior (Watters (1989)
Participate in election voting choice). Subjective norms are assumed to have two
components which work in interaction: beliefs about how other people, who may be
in some way important to the person, would like them to behave (normative beliefs)
and the positive or negative judgments about each belief (outcome evaluations)
(Francis et al 2004).

In this study, subjective norm is the perceived social pressure that influences
on passengers decision to purchase e-ticket, for this context we propose:
H2: Subjective norm have positive impact on passengers intention to use e-
ticket.
In table 3-2, Indicators of subjective norm has been presented:
Indicators
1. My family would think that I should use e-ticket.
2. Mass media reports convinced me to use e-ticket.
3. I read / saw reports show that using the e-ticketing service is a good way of
purchasing ticket

Table 3-2-Subjective Norm indicators

3.2.2.3 Perceived Behavioral Control

Perceived behavioral control is the extent to which a person feels able to enact
the behavior(Ajzen 1991). It has two aspects: how much a person has control over the
behavior; and how confident a person feels about being able to perform or not
perform the behavior. It is determined by control beliefs about the power of both
situational and internal factors to facilitate the performing of the behavior. In this

62
study, perceived behavioral control is the ability of using internet and website in order
to buy ticket online. For this context we propose:
H3: There is a positive link between Perceived behavioral control and
intention to use e-ticket.

In table3-3, Indicators of Perceived Behavioral Control has been presented:

Indicators
1. I am able to navigate on the Web without any help. (Self-efficacy)
2. The loading speed of the pages of the website where I purchase a ticket
(or will purchase) is (will be) important.(facilitating conditions)
3. The Web site where I usually buy a ticket (will buy) are (will be) easily
accessible, e.g., through search engines, and Web ads. (facilitating
conditions)
4. A ticket I usually want to buy (will buy) is (will be) well described in ,
e.g., appropriate information, legal issues, return policy,... (facilitating
conditions)
5. The Web site where I usually buy a ticket (will buy) is (will be) easy to
navigate. (facilitating conditions)
Table 3-3-Indicators of Perceived Behavioral Control

3.2.2.4 Trust
Trust is necessary part of a relationship and since the objective of e-service is
creating long term relationship with customers, we included trust as a construct of our
research model .Trust, defined as the willingness to rely on an exchanging partner in
whom one has confidence (Moorman, 1993) and considered as one of the most
important variables in the relations between human and computer (Fogg et al 1999).
The importance of trust has been especially emphasized in the context of electronic
commerce (Handy 1995), and is basically seen as a common mechanism for reducing
social complexity and perceived risk of transaction through increasing the expectation
of a positive outcome and perceived certainty regarding the expected behavior of trust
(Gefen 2004).
Researches show that trust on e-vendors can be viewed as an important belief
that directly affect on customers attitude toward using e-vendors services. Because
trust is a complex and abstract concept, it is difficult to define trust and to identify the

63
elements that construct it (Wang & Emurian, 2005). (Warkentin et al. 2002) found
that trust in the organization using the technology and trust in government (in case of
e-government) as responsible for the introduction of electronic services are important
determinants of the adoption of the service. In this study we tried to show the affect of
trust on both attitude and intention. (Gefen et al., 2003) proposed model for online
shopping and found the relationship between trust and intention to purchase online.
Generally, (Karami 2006) research shows that trust has positive impact on attitude
toward buying ticket online. In this study, Trust to the organization is the passengers
willingness to rely on a trust to the brand name or organization image and Trust to the
e-service provider website is the passengers willingness to rely on a trust to the
website who offers e-service; for this context we propose
H4: Trust to the organization will increase customers willingness in order to
trust website (e-service provider)
H5: Trust to the website will increase attitude toward buying ticket online.
H6: Trust to the website will increase intention to buying ticket online.

In table 3-4, Indicators of Trust to the brand has been presented:

Indicators
1. Speaking with previous purchasers helps me to make a decision about using e-
ticketing.
2. Customer service provided by provider is important in trusting the provider.
3. I usually use e-services based on their providers' reputation.
4. I usually preferred e-ticketing provided by local airlines.

Table 3-4 - Indicators of Trust on brand

In table 3-5, Indicators of Trust to the website has been presented:

Indicators
1. Providing sufficient information about e-ticketing decrease
uncertainties.
2. Certificates provided by third parties in e-ticket provider's Website
affect on my trust.
3. I'll trust the website which uses latest technology.

64
 4. I use e-service when the website clarifies it's Privacy policy about my
private information

Table 3-5 - Indicators of Trust on website

3.2.2.5 Perceived Risk

Despite many researches worked on constructs which have positive effect on
adoption of e-service, we decided to add perceived risk to the model in order to study
the negative factors that can reduce e-ticketing adoption. Perceived risk (PR) is
commonly defined as uncertainties of possible negative consequences of using a
product or service.(Featherman et al 2002) , there are many researches worked on
trust and perceived risk and their relationship. When the customers find the e-vendors
trustworthy they will be more interested in adoption of using e-vendors services. It
possibly increase the risk of adoption (McKnight and Chervany 2002; Pavlou, 2003).
The level of risk perception decreases when the individual trusts others that are
involved in the transaction (Featherman & Pavlou, 2002; Gefen et al., 2002). Kim and
Prabhakar (2000) ignore the relationship between the two constructs, while Jarvenpaa
et al (1999; 2000) suggest that risk mediates the role between trust and the willingness
to buy.(Featherman et al 2002) shows the affect of perceived risk on behavioral
intention.

In this study, Perceived risk is the uncertainties regarding possible negative

consequences of using e-ticketing. These uncertainties consist of risk of e-payment,
website malfunctions, privacy and policy. For this context we propose two hypotheses
about direct effect of perceived risk on intention and direct effect of Perceived Risk
on attitude and the same time we tried to find the effect of perceived risk on trust on
e-ticketing website:

H7: Perceived Risk has negative impact on intention to purchase ticket online.
H8: Perceived Risk has negative impact on trust in the e-ticket provider
website.
H9 : Perceived Risk decreases attitude toward purchasing e-ticket.

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 In table 3-6, Indicators of Perceived Risk has been presented:
Indicators
1. The possible time loss from having to set-up and learn how to use e-
ticketing is risky.
2. Servers may not perform well and It's possible that I lose my ticket.
3. Using e-ticket would add great uncertainty to my travel plan.
4. My signing up for using e-ticketing would lead to a loss of privacy for me
because my personal information would be used without my knowledge.
5. Internet hackers (criminals) may take control of my account if I use e-
ticketing.
6. Using e-ticketing will cause me to lose control over the privacy of my
payment information.

Table 3-6- Perceived risk indicators

3.2.2.6 Perceived Usefulness

Based on TAM model, potential utilities of a service can explain as perceived
usefulness (PU). An individuals choice of behavior is based on the probability that an
action will provoke a specific consequence. (Limayem et al 2002). We decided to add
this new construct to the model because we are interested in finding positive factors
that motivate people to use online ticketing. TAM modeled perceived usefulness as
direct antecedent of intention and attitude.

In this study, Perceived usefulness is the positive outcomes for passengers

when they purchase ticket online e-ticketing, for this context we propose:

H10: Perceived usefulness have positive impact on intention to purchase ticket

online.
H11: Perceived usefulness have positive impact on attitude toward purchasing
ticket online.
In table 3-7, Indicators of Perceived Usefulness have been presented:
Indicators
1. Purchasing e-ticket allows me to have up-to-date information about e-e-

66
 ticket provided by airline.
2. Purchasing ticket through the web helps me to have real-time decision-
making with comparison all e-ticket providers.
3. I'll use e-ticketing because of packed (bundling) products and services.
4. I use e-ticketing because it reduces my search and transaction costs.
5. I'll use e-ticket because it will be customized based on my needs.
6. I'll use e-ticketing because it's always available.
7. I'll use e-ticketing because I'll save more time.

Table 3-7-Perceived consequences indicators

3.2.2.7 E-ticketing adoption intention

E-ticketing adoption intention refers to a customers perceived intention to use
e-ticketing. Factors mentioned above will impact customers intention to adopt e-
ticketing. In addition, three other questions using likert-scale were also adopted to
assess the overall intention to adopt e-ticketing, regarding general intention.

In table 3-8, Indicators of Perceived Consequences have been presented:

Indicators
1. I intend to buy ticket through the Web in the near future
2. It is likely that I will purchase through the Web in the near future.
3. I expect to purchase ticket through the Web in the near future

Table 3-8 -overall intention indicators

The operational definitions of the factors and key literature used to develop the
model presented here are summarized in Table 3-9.

Constructs Definition Source

A psychological tendency that
is expressed by evaluating a
Attitude (Limayem et al 2000)
particular behavior with some
degree of favor or disfavor
Subjective norm Perceptions about what (Limayem et al 2000)

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 important people actually do
Perceptions about how easy or
Perceived behavioral
difficult it is to perform the (Limayem et al 2000)
control
behavior
A persons motivation in the
senses of his or her conscious
Intention (Limayem et al 2000)
plan to exert effort to carry out
a behavior
the willingness to rely on an
(Egger 1999) , (Lee
Trust exchanging partner in whom
etal 2000)
one has confidence
(Davis 1989)
Perceived usefulness User perceptions of service use (McIvor et al, 2003).

Perceived risk An uncertainty regarding Featherman, M. S. and

possible negative P. A. Pavlou (2003).

consequences of using a
product or service.
Table 3-9 - constructs' definitions
In this section, specific hypotheses are formulated in order to test the research
model. A total of 11 hypotheses were derived above, assuming intention to e-
ticketing adoption as the dependent variable. These hypotheses need to be tested
among inexperience users. They are summarized in Table (3-10)

Hypotheses Description
Attitude toward using e-ticket will increase intention of purchasing
H1
ticket online.
Subjective norm has positive impact on passengers intention to use e-
H2
ticket.
Perceived behavioral control has positive impact on passengers
H3
intention to use e-ticket.
Trust to the organization will increase customers willingness in order
H4
to trust website (e-service provider)

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 H5 Trust to the website will increase attitude toward buying ticket online.
H6 Trust to the website will increase intention to buying ticket online.
Perceived Risk has negative impact on intention to purchase ticket
H7
online.
H8 Perceived Risk decreases attitude toward purchasing e-ticket.
Perceived Risk has negative impact on trust to the e-ticket provider
H9
website.
Perceived usefulness have positive impact on intention to purchase
H10
ticket online
Perceived usefulness have positive impact on attitude toward
H11
purchasing ticket online
Table 3-10- Research Hypotheses

3.3 Research purpose

The purpose of academic research can be explorative, descriptive, or

explanatory. This classification is based on the objective of the research. In some
cases the research will fall into one of these categories, but in other cases different
phases of the same research project will fall into different categories. Exploratory
studies are valuable means to find out what is happening, seek new insights, ask
questions and assess phenomena in a new light (Saunders et al.,2000) and help the
researcher to find as much information as possible about the research subject (Yin
2003) with searching and analyzing primary and secondary data, deep interview with
experts, case study and focus groups. The goal of exploratory research is to formulate
problems and develop hypotheses, but it does not work for testing them. Descriptive
research is mainly used when the problem fully structured and there is no intention to
investigate cause-effect relationship and when the researcher wants to know the
characteristics of certain group. Descriptive research is more rigid than exploratory
research. Researcher should define questions, people surveyed, and the method of
analysis prior to beginning data collection before costly data collection phase. In other
words, the who, what, where, when, why, and how aspects of the research should be
defined. There are two basic types of descriptive research: longitudinal studies and
cross-sectional studies. Longitudinal studies are time series analyses that make
repeated measurements of the same individuals, thus allowing one to monitor

69
behavior. However, longitudinal studies are not necessarily representative since many
people may refuse to participate because of the commitment required. Cross-sectional
studies sample the population to make measurements at a specific point in time. And
if the researcher wants to explain how one variable changes another one or want to
focus on cause effect relationship the study can be Explanatory. (Yin 1994)

The starting point of our research was the research problem, which is what are
the factors affecting on customers to accept or reject e-services. Based on research
problem, literature review has been conduced in order to clarify research questions.
Depending on research questions and also previous literatures descriptive research
could be considered for our research. However, since e-service providing is new in
Iran pilot testing could be considered as an exploratory research because of finding
new factors and customizing existing factors which have been mentioned in
Literature. In summary, the research purpose is determined as a mainly descriptive,
yet as an exploratory in pilot test.

3.4 Research approach

There are two research approaches available for researchers when we want to
conduct a research: Qualitative and Quantitative research approach. Qualitative
provides a better understanding of the subject of research and it is characterized by
opportunity to explore subject as real as possible. (Saunders et.al, 2000) Quantitative
which usually is used in explanatory explains the casual relationship it always
involves numerical data and statistics. Main differences between these two approaches
are: Qualitative research investigates the why and how of decision making, as
compared to what, where, and when of quantitative research. Hence, the need is for
smaller but focused samples rather than large and random sample, qualitative research
uses communication and observation whereas quantitative research uses instruments
and qualitative research and qualitative research develops theories whereas
quantitative tests theories as well as develops them

Based on the purpose and research questions, quantitative approach is suitable

for this research, because the main objective for this research is testing a model for e-
service adoption in Iran. However as mentioned before, a qualitative research will be

70
necessary in pilot test in order to find additional factors for Iranians and customize
existing factors affecting on e-service adoption in Iran.

3.5 Research strategy

The research strategy shows the researcher how to use the research approach,
depending on type of research questions asked, the extent of control an investigator
has over actual behavioral events and the degree of focus on contemporary events.
According to the (Yin 1994) there are five research strategies available that
researchers can use one of them based on characteristics of research approach .i.e.
survey for descriptive research (what).Table -3-11 shows the relevant situations for
different research strategies.

Required controls
Form of research over behavioral Focus on
Strategy question events contemporary events
Experiment How, Why Yes Yes

Survey Who, What, where, No Yes

How, How much
Archival analysis Who, What, where, No Yes / No
How, How much
History How ,Why No No

Case study How, Why No Yes

Table 3-11 -Relevant Situations for different Research strategies (Yin 1994)

According to (Yin 1994) , experiment divorces a phenomenon from its context

, so that attention can be focused on only few variables , typically , the context is
controlled by the laboratory environment , this type is not suitable for our research
because the environment controls and the number of variable should be studied. And
we are interested in finding factors affecting on humans behavior in current real life
not in artificial. And about history, according to the history definition which clarify
that it deals with no contemporary events, it will be excluded from options available
for our research because we are working on new phenomenon.

71
 Therefore because of the research question starts with what and focuses on
contemporary event, survey would be more suitable for our research.

3.6 Sample selection: research object

Working on e-service as a new technology in Iran and new technology for

Iranians is useful when its limited to a single technology and single industry. Finding
a condition where customers directly face with new technology, all uncertainties,
advantages and disadvantages and have opportunity to adopt or reject the service was
not possible without comparing e-service available in Iran. The numbers of provided
e-services in Iran are so limited; therefore the scope of the field study is limited to the
number of technologies such as ATMs or e-services which have been provided
through the web. On the other hand, where the customer interacts with the e-service is
the most interesting step and also suitable opportunity for direct research at service
site (Interviewing with customers who use ATM) or at customers site (sending
questionnaire to the customers who use technology from home/work to perform
service) (Wang et al,2004). In this research we selected customers who are using
services at Customers site.

3.6.1 Presentation of chosen research object

E-ticking of airlines was chosen as a research object of our research. Web is an
environment available for all people with different level of skills of using internet,
motivation to use e-service, attitude and characteristics. E-ticketing website can be
consider as a recent technology for Iranians (IranAir introduced this service beside e-
booking ) and customers adoption can be different.

E-ticketing service has getting attention in airline industry not only because of
reducing cost (Estimated savings $3 Billion per year) and world-wide accessibility
(IATA 2006) but also because of the deadline of IATA for 100% e-ticket by end 2007
with intermediary target of 70% end 2006. Although there are differences between
services provided by different companies, but we are interested in understanding
underlying factors drive Iranian consumers adoption / rejection regardless of airlines.

72
Then we select Internet and Mehrabad airport (Tehran, Terminal No 6 and for
domestic flights) for research and we didnt need to differentiate between airlines.

3.6.2 Sample selection

When researcher conducts a research, it would be expensive to interview with
each person of target population or send them questionnaire. The technique by which
survey researchers choose respondents is sampling (Weisberg et.al., 1996). The first
step in sample selection is defining relevant population. After selecting population of
interest, determining sampling frame or the list of units from which the sample will
draw will be the next step. In order to reduce the amount of data, the sampling
techniques are avail :1) nonprobability sampling 2) probability sampling. (Weisberg
et.al., 1996). In nonprobability sampling, we seek people who are typical of our
population. There is no guarantee that with this procedure we find the representative
sample. In probability sampling we select a group that is similar to our target
population. The member of this group will be randomly selected and each of them has
an equal chance to be selected in final sample. Another nonprobability sampling
procedure is purposive sample where some cases are chosen to be studied
purposively.

In this research our population of interest and sampling frame will be all
people who potentially are traveler and at least have minimum required skills for
using internet. Two samples have been chosen to be studied which has been
summarized in Table 3-12. To choose the element of first group we use probability
sampling, in a way that we select a person who satisfies our criteria which was
minimum skills of using internet. For second groups elements has been selected by
using probability sampling among persons who their job is directly related to the
internet. (IT Professionals)

3.6.2.1 Sample size

(Francis et al 2004) in constructing questionnaire for TPB mentioned that
required sample size is determined by statistical power analysis. Generally, a sample
size of 80 would be acceptable. The response rates are often around 50%, so the
researchers need to send out 160 questionnaires to achieve this sample size. We use
PLS analysis for analyzing data; there the sample size has been calculated based on

73
PLS analysis suggestions. Using PLS approach was suitable for our research because
sample size can be smaller, with a standard rule of thumb suggesting that it be equal
to the larger of the following: (1) ten times the number of indicators for the scale with
the largest number of formative (i.e., causal) indicators (note that scales for constructs
designated with reflective indicators as specified in this study can be ignored), or (2)
ten times the largest number of structural paths directed at a particular construct in the
structural model. A weak rule of thumb, similar to the heuristic for multiple regression
(Tabachnik and Fidell, 1989, p. 129)(Chin 1998). According these three rules, we
could calculate sample size bases on first rule that sample size can be ten times the
number of indictors for the scale with the largest number of formative indicators. In
our research the largest number of formative indicators was 7, therefore our sample
size at least can be 70. Based on the response rate of online questionnaire we decided
to keep sample size on at least 120.

3.6.2.2 Criteria in Customer selection

There are two groups of responders included in two different samples in order
two compare the factors affecting different groups of Iranians. First group is travelers
in Mehrabad airport (Domestic flights) who never used e-ticketing service provided
by Iranair. The respondents throughout the airport firstly questioned about the ability
of using internet and then the questionnaire has given in order to be answered. The
second group is potential passengers who never used e-ticketing before and all of
them are persons with high ability of using internet who works in IT related jobs.
In the summary, the respondents we have selected for each sample must
satisfy criteria of its sample which has been summarized in Table 3-12.
Sample Condition Internet skills e-ticketing experience Sampling
1 Travelers in airport At least minimum No Probability
2 IT Professionals At least minimum No Probability
Table 3-12-Criteria of customer selection

3.7 Data collection methods

3.7.1 General concepts of data collection methods

Once the researcher has determined that the surveying is the appropriate data
collection approach, can conduct a survey by personal interview, telephone, mail,
computer or a combination of these. In Personal interview people are selected to be

74
part of the sample are interviewed in person by a trained interviewer. In Telephone
interview People selected to be part of the sample are interviewed on the telephone by
a trained interviewer. And in self-administrated survey, a short questionnaire will be
left with product or will be delivered to the customer. It has three different types: 1)
Mail survey 2) Computer-delivered 3) Intercept studies. In mail survey, the
questionnaire will be faxed or posted. In computer delivered self-administrated
questionnaire researcher uses intranets, internet, or online services to reach their
participants. Participants could be targeted or self-selective. And in intercept studies, a
research uses a traditional paper questionnaire or computer-delivered questionnaire.
(Cooper 2003) In table 3-13, advantages of different methods have been summarized,
and in table 3-14, disadvantages of each method have been clarified.

Method Advantages
Prescreen Good cooperation from respondents.
Interviewer can answer questions about survey,
probe for answers, use follow-up questions, and
Gather information by observation. .
Special visual aids and scoring devices can be used. .
Illiterate and functionally illiterate respondents can be reached.
Personal interviews
Interviewer can respondent to ensure .He/she fits the
population profile. .
CAPI-computer-assisted personal interviewing: Responses can
be entered into a portable microcomputer to reduce error
and cost.

Lower costs than personal interview.

Expanded geographic coverage without dramatic increase in
costs.
Uses fewer, more highly skilled interviewers.
Reduced interviewer bias.
Fastest completion time.
Telephone interview
Better access to hard-to-reach respondents through repeated
callbacks.
Can use computerized random-digit dialing.
CATI Computer-assisted telephone interviewing: Responses
can be entered directly into a computer file to reduce error
and cost.

75
 Allows contact with otherwise inaccessible respondents (e.g.,
CEOs).
Incentives may be used to increase response rate.
Often lowest-cost option.
Expanded geographic coverage without increase in costs
Requires minimal staff
Perceived as more anonymous
Allows respondents time to think about questions
Self-administrated survey More complex instruments can be used
Fast access to the computer-literate
Rapid data collection
Respondent who cannot be reached by phone (voice) may be
accessible
Sample frame lists viable locations rather than prospective
respondents
Visuals may be used (Images, Movies,)

Table 3-13-Advantages of different data collection methods of survey

Method Disadvantages
High costs. .
Need for highly trained interviewers. .
Longer period needed in the field collecting data.
May be wide geographic dispersion. .
Follow-up is labor intensive. .
Not all respondents are available or accessible.
Personal interviews
Some respondents are unwilling to talk to strangers , in
their homes. ,
Some neighborhoods are difficult to visit.
Questions may be altered or respondent coached by
interviewers.

Response rate is lower than for personal interview.

Higher costs if interviewing geographically dispersed
sample.
Telephone interview
Interview length must be limited.
Many phone numbers are unlisted or not working, making
directory listings unreliable.

76
 Some target groups are not available by phone.
Responses may be less complete.
Illustrations cannot be used.

Low response rate in some modes.

No interviewer intervention available for probing or
explanation
Cannot be long or complex
Accurate mailing lists needed
Often respondents returning survey represent extremes of
Self-administrated survey
the population-skewed responses.
Anxiety among some respondents.
Directions/software instruction needed for progression
through the instrument.
Computer security

Table 3-14 - Disadvantages of different data collection methods of survey

In our research we based data collection mainly on self-administrative survey.

Because two samples and the criteria of consumers, we had to use different types of
data collection methods for different samples. For first sample we distribute a paper
questionnaire in Mehrabad airport, and we answered the questions of respondents if
they have problem with understanding questions. And for second group because of the
criteria of elements we published the link of survey in computer related weblog, two
yahoo groups belonging to the computer engineers students of Tehran Jonoub
University , three IT related Companies, and Students of e-commerce and marketing
of Tarbiat modares University. At the same time because our main questionnaire has
been developed based on literature review we send an open ended questionnaire to the
50 persons and ask them to answer questions. (This part will be explained in details in
Questionnaire design section). After it two versions of questionnaire had been
developed and translated to Persian in order to be compatible with Iranians.

3.7.2 Questionnaire Design

The main measure instrument used in this research is questionnaire. This
questionnaire has been developed based on research problem about the reason that

77
people adopt/reject an e-service. As described in Chapter two we found factors
affecting on e-service adoption based on literature. At the same time, theoretically we
used TPB questionnaire development process (Francis et al 2004). In Manual of
TPB Questionnaire development, 9 phases have been proceeded in order to measure
the variable of a model. These nine phases are (a) Defining the population of interest
(b) Carefully define the behavior under study (c) Deciding how best to measure
intentions (d) Determine the most frequently perceived advantages and disadvantages
of performing the behavior (e) Determine the most important people or groups of
people who would approve or disapprove of the behavior (f) Determining the
perceived barriers or facilitating factors which could make it easier or more difficult
to adopt the behavior (g) For a standard TPB-based study, include items to measure
ALL of these constructs in the first draft of the questionnaire (h) Pilot test the draft
and reword items if necessary. (i) Assess the test-retest reliability of the indirect
measures by administering the questionnaire twice to the same group of people, with
an interval of at least two weeks.

Although in pure TPB questionnaire we have to develop 40 questions

questionnaire, but the count of these items could be different based on the goal of
research. If the goal of the research is simply to do an analysis to predict variance in
behavioral intentions, it would be sufficient to measure intentions (3 generalized
intention items) and the three predictor variables using direct measures (3 items x 3
variables), resulting in a 12-item questionnaire. We used this rule for our research and
at least 12 of questions belong to TPB.

After retrieving factors, we design the first version of questionnaire.

Questionnaire starts with a set of demographic questions which will provide
information about the sample, these demographic items which were measured in this
study are gender, income, education level, age which mostly adopted from previous
studies and type of credit card the respondent used to purchase thicket through the
web. According to the importance of measuring all the constructs that are represented
in the TPB model, all three predictors (attitude, subjective norm and perceived
behavioral control) have been included and each construct has at least 3 items as
indicator. The measures for subjective norm, Attitude, control behavioral control and
intention were adapted from (Davis et al 1989). The indicators of perceived

78
Usefulness have been adopted from different literature in airline industry (McIvor et
al, 2003). Other constructs indicators (Trust, Perceived behavioral control, perceived
consequences added to the questionnaire in order of priority and complexity of
questions. All 37 questions were 5 Likert-scale questions (5=strongly agree, 1=
Strongly Disagree). After that the questionnaire was translated to Persian. After pilot-
study and receiving respondents comments, the questionnaire has published in
internet. All constructs have been shown in table 3-15.

Constructs Definition Source

A psychological tendency that is (Limayem et al 2000)
expressed by evaluating a particular
Attitude
behavior with some degree of favor
or disfavor
Perceptions about what important (Limayem et al 2000)
Subjective norm people actually do

Perceptions about how easy or (Limayem et al 2000)

Perceived behavioral control difficult it is to perform the behavior

A persons motivation in the senses (Limayem et al 2000)

of his or her conscious plan to exert
Intention
effort to carry out a behavior

The degree of a clients belief that an (Egger 1999) ,

ASP has the benevolence and (Lee etal 2000)
Trust
capability to provide its promised
services.
each act or behavior is perceived (McIvor et al, 2003)
as having a potential outcome that
Perceived consequence can be either positive or
negative

an uncertainty regarding possible Featherman, M. S. and P.

negative consequences of using a A. Pavlou (2003).
Perceived risk
product or service.

Table 3-15 - Questionnaire Items

79
3.8 Data collection issues in pilot study

(Francis et al) suggested at least five respondents to complete the questionnaire and
comment on the items. It would be useful if they could comment on the following:
Are any items ambiguous or difficult to answer?
Does the questionnaire feel too repetitive?
Does it feel too long?
Does it feel too superficial?
Are there any annoying features of the wording or formatting?
Are there inconsistent responses that might indicate that changes in response
endpoints are problematic for respondents who complete the questionnaire quickly?
In pilot test, we send our questionnaire to 30 persons and asked them to answer the
questions and leave the comment about the questionnaire. The main problems with
the questionnaire have been raised when the respondents have to answer the
questions which were completely based on literature and maybe were compatible
with foreigners needs. We didnt faced with this issue in pre-test phase when we
sent online questionnaire to users in nonprobability way. In order to change the
questionnaire without making any changes in structure of questionnaire, we
distributed open-ended questionnaire and asked the respondents to fill out the form
with considering their priorities about 1) e-ticketing, advantages and disadvantages,
2) main reason of trust to e-ticketing providers, 3) their concern about using e-
ticketing 4) social factors influencing on making decision to use e-ticketing 5) and
possible perceived outcomes of using e-ticketing service. In this step we tried to
clarify the reason behind using e-ticketing by Iranians and comparing the current
factors had been found in literatures and what affect on Iranians. (Appndix B ). The
results used to complete the formative items of questionnaire perceived usefulness,
perceived risk, trust on website, trust on organization, subjective norm and
perceived behavioral control. The items have been collected and final version of
questionnaire had been developed based on new findings.

3.8.1 Survey Data Collection Procedure

After development of questionnaire, surveys were conducted among target
samples. Web survey and distributing questionnaire were used as the principal
methods, respectively, according to the available contact information in samples.

80
Although in Web based survey we must follow different steps such as using
reminders, sending thank you messages, but because of the anonymous type of
questionnaire we just could send the customers the link of questionnaire and ask them
to answer it. In this section, web survey will be introduced.

3.8.1.1 Web Survey

The web survey method has many advantages for both researchers and
participants over other general methods (Medlin, et al., 1999). The most important
and direct benefits of the web survey method are saving time on coding and data
reentry for researchers, and increasing the accuracy of data entry (Dillman, 2000). For
researchers, since all surveys and answers are designed in a machine-readable format,
an electronic data file containing all the records will be ready for analysis immediately
following data collection. Without any manual manipulation, data entry errors can be
reduced to a minimum. Moreover, participants enter answers on the website and their
answers are transferred into a central database immediately. Participants do not need
to print anything out or send the survey questions back. Another benefit is that
researchers can significantly save time and money in survey preparation as well as in
survey response delivery.(Yao 2004)
In a large sample mail survey, researchers spend significant time preparing
hundreds and thousands of mail questionnaires with a personal identification on each.
Also, the postal expense for a large number of questionnaires is high. The web survey
method can nearly eliminate this cost and enable a quick response. Finally, computer
systems can help researchers to check for completion of responses as well as remind
participants to answer the critical questions that they might otherwise miss.

We used different methods to collect data from two different samples these
methods are as listed bellow:

3.8.1.2 Survey #1
First data gathering has been started at 27th of august 2006 with distributing
questionnaire among passengers who wanted to buy their ticket in travel agencies.
After three weeks, and very low response (12%) we gave up distributing questionnaire
in travel agencies. We found out distributing questionnaire among passengers who

81
waits on airport is the only possible way of collecting data. Mehrabad airport (Tehran,
Terminal No 6 which is for domestic flights) was selected, because e-ticketing is
available just for three cities in Iran (Tehran Kish - Mashahd). When new traveler
came to airport, we as researchers determine that is this new passenger suitable for our
sample or not. After selecting respondents, we asked if they would willing answer a
questionnaire, for the respondent who was interested in participating in survey, we
asked do they use internet or not -because of the content of questionnaire which force
the respondent to be familiar with basic concepts of using internet, if they didnt
qualified, they excluded from sample. The researchers answered respondents
questions and tried to clarify all questions. There was a note in a questionnaire that
mentioned if the respondent has already used e-ticketing service, she/he must return
the questionnaire to the researcher, therefore none of the elements of sample #1 had
used e-ticketing before.

3.8.1.3 Survey #2
Based on these advantages, the web survey method was adopted in this study
for survey #2 where we have access to the contact information of potential customers
of e-ticketing who were IT professionals. For designing and sending questionnaire
and fetching data, Quask FormArtist v3.7 has been used. The website was set up and
maintained. The WebPages were designed in a way that it would be compatible with
different browsers and computer operating systems. The subject and sufficient note
about the survey and estimated time was written in first page.

3.8.2 Data presentation and analyzing

After data collection, data must be analyzed and presented. The critical point
in this section was selecting the method for analyzing data.

Due to the complexity of research model, the Structural Equation Modeling

(SEM) approach was used to evaluate the model. Among the SEM techniques, by far
the most well known are covariance-based methods as exemplified by software such
as LISREL, EQS,AMOS. Although PLS can be used for theory confirmation, it can
also be used to suggest where relationships might or might not exist and to suggest
propositions for later testing (Chin 1998)

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 Sample size can be smaller, with a strong rule of thumb suggesting that it be
equal to the larger of the following: (1) ten times the scale with the largest number of
formative (i.e., causal) indicators (note that scales for constructs designated with
reflective indicators can be ignored), or (2) ten times the largest number of structural
paths directed at a particular construct in the structural model (Chin 1998)

The statistical power (i.e., the ability to detect and reject a poor model) is
especially critical in SEM analysis. In contrast to the traditional hypothesis testing, the
goal in SEM analysis is to produce a non-significant result. The reason is that the
researcher is attempting to develop a theoretical model that accounts for all the co
variances among the measured items.(Chin 1998)

3.9 Chapter summary

In this chapter the theoretical basis behind the chosen methods in research
process, research design and the method used to test relationships implied by research
model and research hypotheses has been discussed. This chapter included different
steps i.e. 1) Research Purpose, 2) Research Approach, 3) Research Strategy, 4)
Sample Selection, 5) Data Collection and 6) Brief summary on Data Analysis.

The research design of our research has been illustrate in figure 3-3. It shows
the brief blueprint of whole process about what we did in order to conduct this
research. During this process, two samples were selected in order to compare the
result of factors affecting on the element of each sample. Sample size and sample
selection has been done base on literature and finally questionnaire was distributed
and respondents answered the questionnaire. The conditions have been explained in
previous sections. After data gathering and data filtering, SEM was selected in order
to analyzing data. Based on sample size and required analysis we selected PLS
method in order to presenting and analyzing data.

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Figure 3-2-Research Design

84
Chapter Four

4 Data Analysis
In this chapter, finding will be presented. It begins with describing methods and the
result, descriptive statistical result, and then moves to discuss the statistical result.

Two surveys were conducted to investigate the factors affecting on adoption

decision of purchasing ticket online. The first group was made up of passengers
without any experience with using e-ticket. The other group was potential passengers
who never bought ticket online but their job is related to internet and they work with

85
internet (IT Professionals). For each survey study, first, the analysis of missing data is
discussed. Second, sample characteristics are reported. Third, the measurement model
in PLS and statistical tests to establish the validity and reliability of the survey
instrument are shown. Fourth, the structural model in PLS is analyzed to test the
hypothesized relationship among decision factors presented in the research model.

4.1 Survey #1 (Inexperienced Passengers)

4.1.1 Survey Response

In this section, survey response rate and missing data analysis are discussed.

4.1.1.1 Survey response rate and missing value

The total sample size was 164. 104 completed and 28 not completed
questionnaires were returned.(Table 4-1)

Total 164
Received 144
Not completed 20 ( 3.7 missing value)
9 ( 7.4 %missing value)
2 (11.1 % missing value)
2 ( 14.8 % missing value)
1 (18.5% missing value)
1 (25.9 % missing value)
5 (more than 50 % missing value )
Completed 104
Acceptable 133
Response rate 81.1
Start date 7th of September 2006
End date 9th of September 2006
Table 4-1 - Sample #1 overview

After data entry we found out that 20 cases had a missing value less than 4
percent on construct measuring variables and 9 cases with less than 10% missing
value. Hair, et al., (1998) stated that variables with a missing value ratio less than 10%
can be retained in the dataset without missing value pattern assessment. Therefore we

86
exclude 11 cases from dataset. Since PLS Analysis usually works better on a data set
with no missing values; the missing values in these 11 cases were replaced with the
mean, which is the most common solution to replacing missing values (Hair, et al.,
1989). After removing all missing values and potentially problematic questionnaire
the sample size was 133 with 81.1 response rate.

4.1.2 Descriptive Analysis

E-ticketing is available for many groups of people in society. Survey #1
consisted of 63.16% men and 36.84% women. It some how shows the index of
penetration of using internet between women in Iran. Among this sample, 9.02 of
people were less than 20 years old., 58.65% between 21 to 30 years old , 25.56%
between 31 to 40 years old and 9 % were older than 40. It shows not only young
people (21-30) were interested in participating in our survey, but also they are more
familiar with internet. In survey #1 56.39% have bachelor, 11.28% master, 10.53%
PhD, and 21.8 were student, or have diploma. It suggested that the respondents likely
have good level of knowledge to answer the question. All descriptive analysis has
been shown in table 4-2

Category Description Number Percentage

Men 84 63.16
Gender Women 49 36.84
Missing Value 0 0

Less than 20 years 12 9.02

21-30 years 78 58.65
Age 31-40 years 34 25.56
More than 40 years 9 6.77
Missing value 0 0

Bachelor 75
Master 15 56.39
Education Level PhD 14 11.28
Other 29 10.53
Missing value 0 21.8

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 0

12.03
Less than 100,000 16
6.02
100,000-150,000 8
9.02
Monthly Incoming 150,000-200,000 12
12.03
(Tomans) 200,000-250,000 16
60.9
More than 250,000 81
0
Missing Value 0

Parsian Bank 21 15.79

Saman Bank 8 6.02
Prepaid Card
No card 104 78.2
Missing Value 0 0
Total 133 100%
Table 4-2 -Responders Demographic results for survey #1

4.1.3 Model evaluation

In this survey we used a two-step model testing approach. The advantages of two-step
model are that the testing theoretical model will be based on constructs that are
meaningful and suitable for estimating study. Reliability and validity are two criteria
to assess measurement. A reliable measurement refers to the instrument that can
report the same results repeatedly. If an instrument does not have the required
reliability, it is hard to tell whether the findings drawn from the data are due to the
actual effect under study or to the measurement error. Validity assessment is also
important, as valid measurements can ensure that indicators measure what they are
supposed to measure. Thus, the findings from the analyzed results can confidently
reflect the conceptual model in actual situations (Yao 2004).
The PLS measurement (outer) model for reflective measure is evaluated by examining
the convergent and discriminant validity of the indicators, and the composite
reliability of a block of indicators. On the other hand, the formative measures are
evaluated on their substantive content, by comparing the relative size of their
estimated weights, and by examining the statistical significance of their measure
weight (Chin 1998). The weights are regression beta coefficients of each item on their
specified latent construct. Weights are used to calculate latent variable scores for each
latent construct. Especially in formative measures, the weights reflect the contribution

88
of each item to its latent construct. Weights are useful to assess the reliability of the
formative indicators (Yao 2004) and must be significant. The structural (inner) model
is evaluated by assessing the percentage variance explained, that is, R-square for the
dependent latent construct by the size of the structural path coefficients. Finally the
stability of the estimates is examined by using the t-statistics obtained from the
bootstrap resampling procedure.

4.1.3.1 Measurement (Outer) Model

4.1.3.1.1 Assessment of Convergent validity

The convergent validity of the measurement model of reflective measure is
assed by the examining the correlation between the component/item measure scores
and their construct scores in PLS. The loadings in the measurement model are used to
test the reliability of each item. High loadings ensure that all items are measuring the
same construct. Chin (1998). Acceptable loading is 0.707 for reflective construct.
First of all in order to check the validity and reliability of our reflective
constructs, we used weight and loadings which has presented in table 4-3. The table
shows that all of reflective measurements met the requirements for reliability which is
0.70.

Construct Indicator Loading Weight ICR

Attitude 0.870406

ABetter 0.796471

AEnjoy 0.704988

AGood 0.846305

Alike 0.814540
Subjective
Norm
SNFamily 0.544548
SNMass 0.468452
SNRep 0.293625
Behavioral
Control
PBCHelp 0.078216
PBCAcce 0.019604

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 PBCSpeed 0.733788
PBCDesc 0.489599
PBCNav -0.0258
Trust to website
TInfor 0.04212
TTech 0.32764
TPriva 0.41046
TCert 0.61328
Trust to
Organization
TForum 0.082946
TCrm 0.137116
TBrand 0.59338
TLocal 0.564722
Perceived Risk
PRTime 0.408610
PRServ -0.027327
PRPlan 0.343630
PRLose 0.887755
PRHack -0.11827
PRInfo -0.197654
Perceived
Usefulness
PUSave 0.406537
PUReal 0.193731
PUPacked -0.06198
PUCost 0.456483
PUCust 0.168426
PUAvail 0.322217
PUUp 0.054381
Intention 0.874735
int1 0.830443
int2 0.806809
int3 0.870937

Table 4-3- Loading, weight for Survey #1

The above measurement model indicated that the instrument used was adequate for
measuring attitude and intention constructs individually. Moreover, as another
indicator, the internal composite reliability (ICR) score is recommended to assess the

90
reliability of the reflective measurement (Chin, 1998). ICR is different from
Cronbachs Alpha, which weighs all of the items equally without loading
considerations. The value of 0.6 or higher is recommended for a composite reliability
score (Fornell and Larcker, 1981). In the measurement model for this study,
composite reliability of every reflective construct was 0.7 or above .ICR is not
necessary for formative measures. Table 4-4

Average variance extracted (AVE) is another item to check reliability of a

reflective measure and is average of the squared loading of each item on a construct.
It is used to assess how well a theoretical latent construct explains the variance of a
set of items that are supposed to measure this construct. In other words, AVE is used
to measure the amount of variance captured by the indicators of a construct versus the
amount of variance caused by the measurement error. (Yao 2004) AVE must be
higher than 0.5 for all reflective measures. (Table 4-4) In this study all reflective
measures have AVE higher than 0.5 which was recommended by Fornell and Larcker
(1981) it means at least 50 percent of measurement variance is captured by the
construct.

Composite Cronbach
Construct AVE
Reliability Alpha
Attitude 0.870406 0.627770 0.802125
Subjective norm
Perceived behavioral Control
Trust to Brand
Trust to Website
Perceived Risk
Perceived consequences
Intention 0.874735 0.699702 0.784701

Table 4-4-Composite Reliability, AVE and Cronbach Alpha

4.1.3.1.2 Assessment of Discriminant Validity

There are two steps for discriminate validity of reflective measurements (chin
1998)

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 1) Items should have a higher correlation with the construct that they are
supposed to measure than with any other constructs in the model.
2) The square root of AVE of each construct should be larger than the correlation
of the two constructs (Staples, et al., 1999).

Cross-loading checked was performed by using SmartPLS and the latent

variable scores item for each item on all latent variables generated. The result has
been presented in table 4-5. In the table, all items loaded higher on the construct that
they were supposed to measure than on any other constructs. No items loaded at more
than 0.707 on any other construct that they were not theoretically specified to
measure. This cross-loading check indicated that all 2 items loaded uniquely on the
specified constructs.(Table 4-5)

Second, besides the cross-loading check, the AVE and PHI Matrix also were
used for discriminant validity assessment. PHI matrix is a set of correlations between
the latent factors that are specified in the model.(Yao 2004) (Table 4-6)
ATT INT
ABetter 0.796471 0.461287
AEnjoy 0.704988 0.331596
AGood 0.846305 0.420729
ALike 0.814540 0.439266
int1 0.461741 0.830443
int2 0.435567 0.806809
int3 0.418881 0.870937
Table 4-5-Factor Structure Matrix of Loadings and Cross-Loadings
Another test is to compare the correlation between any two constructs with the
average squared root of AVEs of these two constructs. The test requires that the
correlation be smaller than the average of the two root-squared AVEs. Stricter
requirements of this test even ask that the correlations be smaller than both the
squared roots of AVE (Staples et al, 1999).

The results of the discriminant validity analysis are displayed in Table 4-6
Diagonal elements, which should be larger than any other corresponding row or
column elements, show the square root of the AVE, whereas the off-diagonal
elements show the latent construct correlations. In this study, there was no correlation
between any two latent constructs larger than or even equal to the square root AVEs
of these two constructs. Most of the correlations were far below the square root of

92
AVEs. Consequently, the results demonstrated that all constructs in the model were
indeed different from each other. Discriminant validity was supported in this
measurement.
After all these reliability and validity checks, the instruments presented a
satisfactory measurement model.
ATT INT AVE
ATT 0.792 0.627770
INT 0.524628 0.836 0.699702
PBC 0.419842 0.297754 0.000
PR -0.261490 -0.279347 0.000
PU 0.472247 0.461768 0.000
SN 0.241706 0.392288 0.000
TrustB 0.226061 0.253423 0.000
TrustW 0.365207 0.287341 0.000

Table 4-6-Correlations between latent constructs and square root of AVE

Since the loadings and cross-loadings cannot be used to assess the reliability
and validity of the formative indicators, these majors are evaluated on the basis of
their substantive content, and by comparing relative size and statistical significance of
their estimated weights (Chin 1998). The results is presented in Table 4-7 . All
formative measures, significant and non-significant, will remain in model for
estimating model. On the other hand the reliability of formative measures can not be
examined before using the measures in PLS.

NS: Not significant, P-values : * <0.50 , **<0.01 , ***<0.001

Weight T Statistics
PBCAcce 0.019604 0.080 NS
PBCDesc 0.489599 1.574 NS
PBCHelp 0.078216 0.345 NS
PBCNav -0.025859 0.119 NS
PBCSpee 0.733788 2.855 **
PUAvail 0.322217 1.766 *
PUCost 0.456483 2.760 **
PUCust 0.168426 1.112 NS
PUPack -0.061979 -0.491 NS
PUReal 0.193731 1.151 NS
PUSave 0.406537 2.220 **
PUUp 0.054381 0.420 NS
PRHack -0.118279 -0.374 NS
PRInf -0.197654 -0.740 NS
PRLose 0.887755 2.813 **
PRPlan 0.343630 1.695 *
PRServ -0.027327 -0.135 NS
PRTime 0.408610 1.946 *
SNFamil 0.544548 2.552 **
SNMass 0.293625 1.313 NS

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 SNRep 0.468452 1.876 *
TBrand 0.593386 2.479 **
TCert 0.613286 2.848 **
TCrm 0.137116 0.813 NS
TForum 0.082946 0.558 NS
TInfor 0.042126 0.253 NS
TLocal 0.564722 2.773 **
TPriva 0.410459 1.806 *
TTech 0.327637 1.804 *
Table 4-7- Measure model - result formative measures
The PLS measurement Model for both reflective and formative indicators is
satisfactory, now the next step is in to evaluate Structural model.

4.1.3.2 Structural (inner) Model

The structural model is evaluated by using the R-square for dependent
constructs, the size and t-statistics and significant level of structural path coefficient.
The t-statistics are estimated using the bootstrap resampling procedure. The structural
model result are summarized in figure 4-1 And table 4-9 .Table 4-9 shows the
proposed hypotheses, the path coefficient, the observed t-statistics and significant
level based on 1-tail test.

Figure 4-1-Estimated result for proposed model

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4.1.3.2.1 R-square
We used SmartPLS to test hypotheses. SmartPLS(Ringle, et al 2005) provides
the squared multiple correlation (R) for each endogenous construct. This number is
used to measure the percentage of construct variation that the model explained
(Wixom and Watson, 2001).
In our study, all the exogenous factors in the model explained 43.5 percent of
intention to e-ticketing adoption. Perceived risk and trust to the organization
explained 24.5 percent of Trust to the website and Trust to the website, perceived
usefulness and Perceived risk explained 30.4 percent of Attitude. Table 4-8 shows the
summery.

Construct R
Intention 0.435
TrustW 0.245
Attitude 0.304

Table 4-8- (R) for each endogenous construct

4.1.3.2.2 Structural Path

The next step is to evaluate the proposed hypotheses by using significant level
of the estimated structural paths. SmartPLS provides path Coefficients that indicates
the strength of the relationship between the two constructs (Wixom and Watson,
2001). The bootstrap procedure with 300 resample was used to calculate the
significance of these coefficients. Figure 4-1 presents the structural path diagram with
the coefficients of paths. All of the paths were statistically significant, except for the
relationship between Trust to the website and Intention, Trust and Perceived Risk,
Perceived behavioral control and intention. The result are summarize in table 4-9.

NS: Not supported,S:Supported P-values : * <0.50 , **<0.01 , ***<0.001

Path T-
H Description coeficient statistics

Attitude toward using e-ticket will increase intention of

H1 0.255 **2.391 S
purchasing ticket online.
Subjective norm has positive impact on passengers
H2 0.288 **2.910 S
intention to use e-ticket.

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 Perceived behavioral control has positive impact on
H3 0.090 1.099 NS
passengers intention to use e-ticket.
Trust to the organization will increase customers
H4 0.488 ***4.567 S
willingness in order to trust website (e-service provider)
H5 Trust to the website will increase attitude toward buying
0.231 *2.140 S
ticket online.
H6 Trust to the website will increase intention to buying
0.020 0.335 NS
ticket online.
Perceived Risk has negative impact on intention to
H7 -0.153 *-1.656 S
purchase ticket online.
Perceived Risk decreases attitude toward purchasing e-
H8 -0.237 **-2.418 S
ticket.
Perceived Risk has negative impact on trust to the e-
H9 0.072 0.660 NS
ticket provider website.
Perceived usefulness has positive impact on intention to
H10 0.245 *2.231 S
purchase ticket online
Perceived usefulness have positive impact on attitude
H11 0.333 **2.738 S
toward purchasing ticket online
Table 4-9-Structural model results

Effects on Intention
Intention to use e-ticket in this research is jointly predicted by Attitude (t-
value=2.391, p<0.01) perceived behavior control (t-value=1.099, p>0.1) , subjective
norm (t-value=2.910,p<0.01) ,Trust on website(t-value=-0.412,p>0.1) ,Perceived
risk(t-value=-1.656,p<0.05) and Perceived usefulness (t-value=2.231,p<0.05) and
these variables explain 43% of the variance on intention to use (R2=0.435, Coefficient
of determination). While comparing the presented results with previous TPB-based
studies in IS acceptance, it has a good explanatory power of the current research
model for behavioral intention to use. Among the relationships, Perceived usefulness
and attitude toward the behavior are two major influencers on individuals behavioral
intention to use e-ticket. Moreover, Subjective Norm indicates more importance than
attitude in determining behavioral intention to adopt or reject e-ticket.

Attitude significantly impact customers intention to use e-ticket (path

coefficient=0.255, p<0.05) and attitude toward using an e-service which is e-ticket in

96
this case will increase intention of using e-service, thereby supporting hypothesis 1.
This finding is consistent with the findings of Karami (2006) who found positive
significant existence relationship between attitude and intention toward using e-ticket
in Iran and (Yu et al 2004) who verified existence of positive significant relationship
between attitude and intention for inexperienced IT users and (Wan et al 2004)
findings about the relationship between attitude toward using electronic ticket and
intention in china. While attitude could be considered as a significant factor, we
decided to work on factors which are important in attitude formation. This factors will
be discussed further.

Subjective norm as social effect on adoption has significant impact on

intention of using e-ticket (path coefficient= 0.288, p<0.01) and supports hypothesis
2. This link has the most important influence on intention therefore its necessary to
find the factors affecting on subjective norm formation. This result shows that
important persons and reports can be considered as suitable ways in order to develop a
new idea in society. In this case, this idea is using e-ticket. Result consistent with the
finding of (Karami 2006), (Yu et al 2004) and (Wan et al). The influence of
Subjective norms on intention is positive and because of formative measures of this
construct, we will study the effect of the measures of Subjective Norms on intention
which all of them are not significantly positive. The SNFAMIL or the effect of family
in adoption of e-ticketing is significant (p<0.01). SNREP or reports and news about e-
ticketing has significant positive effect on adoption of e-ticketing (p<0.05), and
SNMASS or the effect of programs in mass media doesnt make difference.

Perceived Behavioral Control (e.g. Self-efficacy and facilitating conditions)

has not significant impact on intention of using e-ticket among inexperienced users.
(Path coefficient= 0.099, p>0.1) and doesnt supports Hypothesis 3. This result shows
that perceived behavioral control doesnt play an important role on adoption of e-
service for inexperienced Iranian customers. Maybe these users believes that the
ability of controlling behavior is not matter of case or they believe that they would be
able to manage e-ticketing procedure without considering about their weaknesses on
using internet. Result consistent with the finding of Horst (2006) who didnt found
significant relationship between Perceived behavioral control and intention, but it
inconsistent with the finding of Karami (2006), Wan et al (2004) who found

97
significant relationship between perceived behavioral control and intention of using
service. Not only Perceived behavioral control doesnt have significant effect on
intention but also its formative measures have not positive effect on intention.
Self-efficacy has been assessed by a formative measure PBCHELP which indicates
the ability to use intent without help and has not significant effect on intention to use
e-ticket (path coefficient=0.078216, p>0.1). Facilitating conditions have 4 formative
measures: PBCACCE or the accessibility of website through the links in other
websites or in search engines such as google has not significant effect on intention
(path-coefficient =0.019604, p>0.1), PBCDESC or description of product or service
has not significant effect on intention although its positive (path-
coefficient=0.489599, p>0.1). PBCSPEE or the speed of website has significant effect
on intention (path-coefficient=0.733788,p<0.01). This results confirmed the findings
of (Limayem and Khalifa 2003) about the effect of loading speed of website in online
shopping. At the same time PBCNAV or the ease of navigation in website doesnt
have significant effect on intention.

Two type of trust has been considered in the model. Trust on website and trust
on organization (Brand). There is no significant relationship between Trust on website
and intention to use e-ticket (path coefficient =-0.020 and p>0.1). It shows although
providing privacy and policy issues, certificates, latest technology in a website can be
important tools for companies to pursued people to purchase their product and
services through the companies website, but it doesnt play an important role in
customers acceptance of e-ticketing. Therefore Hypothesis 6 has not been supported.
Although trust has not significant effect on intention, its formative measures has
positive and non-significant effect on intention. TCERT or the certificate of important
organization in the website will increase trust to the website and intention to use
website for purchasing e-ticket (path-coefficient=0.613286, p<0.01) TINFOR or the
sufficient information about the e-ticketing service has not significant effect on
intention to purchase ticket online (path-coefficient=-0.042126, p>0.1). TPRIVA or
privacy policy issues in website about the customers private information have
significant effect on trust to the website and intention to purchase ticket online (path-
coefficient= 0.410459, p<0.01) and TTECH or the technology which has been used to
create the website has significant effect on using the website (path-
coefficient=0.327637, p<0.01)

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 Perceived Risk has a significant negative impact on intention of using e-ticket
(path coefficient= - 0.153, p<0.05) and support Hypothesis 7. This results that consists
with the finding of (Pavlou 2001), (Ajzen 1991) and (Ruyter 2000) indicates
customers will be adopted generally e-service and in this study, e-ticketing, if they
dont find it risky. Although perceived risk construct has significant negative effect on
intention, but its formatives measures have non-significant and positive and negative
effect on intention. PRHACK or the feeling about controlling of accounts by hackers
has not significant effect on intention (path-coefficient=-0.118279, p>0.15) although
this effect is negative. PRINF or using the provided information by customers for
advertising purpose (without customers knowledge) has negative effect on intention
to use e-ticketing but Its not significant (path-coefficient=-0.197654p>0.1). PRLOSE
or losing privacy with using e-ticketing has significant effect on intention (path-
coefficient=0.887755, p<0.01) but its not negative. The possible reason is that
passengers dont agree with it and trust on privacy policies that website mentioned in
their privacy policy sections. PRPLAN or losing travel plan because of the
malfunctions in the e-ticketing services has significant and positive effect on
intention. The possible reason is that passengers dont use e-ticket as a first option and
agencies are still first option of purchasing ticket. PRTIME or the time that the
passenger must spend to learn working with e-ticketing have significant effect on
intention (path-coefficient=0.408610, p<0.05) but this effects is not negative and is
not supported our perceived results. The possible reason is that passengers believes
that they could manage everything without problem with this new service and
learning time will not effect on their ability to use e-ticketing. Its possible that
passengers believe that although these factors existed in using e-ticketing websites but
they want to use the system because of its positive usefulness. PRSER or the
probability of server fails during purchasing online doesnt have significant effect on
perceived risk about e-ticketing although its negative(path-coefficient=-0.027327,
p>0.1).

Perceived usefulness has a significant impact on intention of using e-ticket

(path coefficient= 0.245, p<0.05) and support Hypothesis 10. This result shows that
customers will be adopted generally e-service and in this study e-ticketing if they find

99
it beneficial and the service provides them positive consequences that impact on their
quality of the service that they want to use. This result consistent with the finding of
Limayem (2000) who verified the existence of significant relation between Perceived
consequences and Intention to use e-shopping and inconsistent with the (Geffen 2003)
findings about the perceived usefulness and intention.
Although perceived usefulness has positive effect on intention but the
formative indicators has positive, negative and non-significant effect on intention.
PUAVAIL or the availability of the website (7*24*365) to buy ticket online,
PUCOST or the reducing of searching cost with using e-ticketing , PUSAVE or
saving time by using e-ticket have significant effect on intention to use e-ticket (path-
coefficient=0.322217, p<0.05), (path-coefficient=0.456483, p<0.01),(path-
coefficient=0.406537, p<0.01). At the same time PUPACK or having the ability of
using packed (bundling) products and services has significant negative on intention to
use e-ticketing(path-coefficient=-0.061979, p>0.1). PUREAL or real time decision
making by comparing all e-ticketing provider websites, PUUP or having update
information about tickets and flights by using e-ticketing services and PUCUST or
customizable website based on the passengers need have not significant effect on
intention to use e-ticketing,(path-coefficient= 0.193731, p>0.1), (path-
coefficient=0.054381, p>0.1), (path-coefficient=0.168426, p>0.1). Reducing
searching cost is the most important factors that affect on Perceived usefulness
construct, the cost can be explained as money or time that they should pay for finding
suitable ticket. The second factor that has significant effect on Perceived usefulness is
saving time. People can save time in two steps of their travel: buying ticket which is
always time consuming process and using ticket in airport. The third significant factor
in perceived usefulness is the availability of e-ticketing service in 24 hours a day and
seven days a week. In comparison with travel agencies that are only available 7 or 8
hours in working days, e-ticketing service will help customers to have more time to
make a decision for purchasing ticket or changing their ticket.

Antecedents of Attitude
As presented in model Figure 4-1 trust on website (path coefficient=0.231
,p<0.05) has significant positive impact on attitude toward using e-ticket. This results
shows that trust on website will increase the attitude toward using e-ticket and the
results support hypothesis 5, therefore working on making website trustworthy will

100
increase the possibility of customers attitude toward using e-ticketing service.
Perceived risk is another construct that has negative influence on attitude (path
coefficient=-0.237, p<0.01). This study shows that perceived risk reduces attitude
toward using e-ticket. The result supports hypothesis 8. This result consistent with the
finding of Ruyter et. al(2000) about the effect of risk on e-service adoption and its
effect on attitude and Changa et. al (2004) found that risk perception had a
significantly negative influence on the attitude towards online shopping. At the same
time result has been supported by the finding of Kolsaker (2004) who worked on
purchasing ticket online and found that risk negatively affect on willingness to buy
ticket online. Perceived usefulness has significant effect on attitude toward using e-
ticketing (path coefficient=0.333 and p<0.01) it means that any positive outcomes of a
service will increase the attitude toward accepting the service. The result supports
hypothesis 11.

Perceived risk, trust to the website and perceived usefulness as three

antecedents of attitude account for over 30.4 percent of the variance in this variable.
The result shows that perceived usefulness not only has significant effect on intention
but also has the strongest effect on attitude toward purchasing ticket online.

Antecedent of trust on website

As suggested by t-statistics and path coefficient values, Trust on organization
(brand) has positive significant effect on trust to the website. Trust to the organization
can provide sufficient image for the website. Trust to the brand has significant impact
on customers trust on to the website who provides e-service (path coefficient=0.488
,p<0.001), The result is consists with the finding of (Horst et al 2006) . This result
support hypothesis 5 and suggests that click-and-mortar companies would be
successful in the world of e-service providers because of the effect of their image on
customers. In the other words, how much a brand has better image, people will trust
its website more. There is relationship between Perceived risk and Trust on website.
Based on t-value which is 0.072 and p>0.1 we can conclude that hypothesis 9 is not
supported and perceived risk doesnt have significant negative effect on trust on e-
service providers website. This result inconsistent with the Geffen findings about the
relationship between perceived risk and trust.

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 The effect of these two antecedents on trust to the website (Trust on brand and
Perceived risk) accounted for over 24.5 percent of variance of Trust on website
variable. Trust to the organization has the strongest positive effect on Trust on website
with the path coefficient of 0.488. Not only Trust to the organization has significant
positive effect on trust to the website , its formative measures have positive significant
effect on trust to the brand too. TBRAND or trust to the famous brand name will
increase the trust to its website (path-coefficient=0.593386, p<0.001).TCRM or
customer services provided by the company has positive effect on trust to its website
and the company (path-coefficient=0.137116, p<0.05). Talking with previous
customers of company has positive effect on trust to the organization or company and
website. And people trust the local companies and their website and the result shows
that this effect is positive and significant. (path-coefficient= 0.564722 ,p<0.001)

4.1.4 Summary of survey #1

In a sum, subjective norms, perceived usefulness and attitude toward purchasing
online play important role on passengers acceptance of e-ticketing in Iran. Perceived
risk related to the e-ticketing has significant negative effect on intention. Trust on
website an perceived behavioral control have not significant effect on passengers
intention to accept e-ticketing service. Perceived usefulness and trust on website
increase attitude toward using e-ticketing and perceived risk increases attitude toward
purchasing ticket online. Trust on website is affected by trust on organization and
perceived risk doesnt have positive effect on trust on website.
NS: Not supported,S:Supported P-values : * <0.50 , **<0.01 , ***<0.001
Path T-
H Description coefficient statistics

Effects on Intention (R-Square : 0.435)

Attitude toward using e-ticket will increase intention of
H1 0.255 **2.391 S
purchasing ticket online.
Subjective norm has positive impact on passengers
H2 0.288 **2.910 S
intention to use e-ticket.
Perceived behavioral control has positive impact on
H3 0.090 1.099 NS
passengers intention to use e-ticket.
H6 Trust on the website will increase intention to buying
0.020 0.335 NS
ticket online.

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 Perceived Risk has negative impact on intention to
H7 -0.153 *-1.656 S
purchase ticket online.
Perceived usefulness has positive impact on intention to
H10 0.245 *2.231 S
purchase ticket online
Effect on Attitude (R-Square: 0.304)
H5 Trust to the website will increase attitude toward buying
0.231 *2.140 S
ticket online.
Perceived Risk decreases attitude toward purchasing e-
H8 -0.237 **-2.42 S
ticket.
Perceived usefulness have positive impact on attitude
H11 0.333 **2.738 S
toward purchasing ticket online
Effects on Trust on website (R-Square)
Perceived Risk has negative impact on trust to the e-
H9 0.072 0.660 NS
ticket provider website.
Trust to the organization will increase customers
H4 0.488 ***4.567 S
willingness in order to trust website (e-service provider)

Table 4-10 - Summary

103
Figure 4-2- The result for proposed model Survey #1

104
4.2 Survey #2

4.2.1 Survey Response

In this section, survey response rate and missing data analysis are discussed.
The second survey consists of IT professionals persons who worked on internet
related fields.

4.2.1.1 Survey response rate and missing value

The total sample size was 157. 99 completed and 58 uncompleted
questionnaires were returned (Table 4-11). Whereas the survey was web-based and
the missing values were more than predication we checked the questionnaire and
found that one the reason for missing values is the problem of designing of the
questionnaire and responders didnt differentiate between the Normal and No
answer. Changing the result in future research is expectable.

Total 399
Received 157
Uncompleted 15 ( 3.7 missing value)
6 ( 7.4 %missing value)
3 (11.1 % missing value)
2 ( 14.8 % missing value)
3 (18.5% missing value)
6 (25.9 % missing value)
23 (more than 50 % missing value )
Completed 99
Acceptable 120
Response rate 30%
Start date 23rd of July 2006
End date 27th of August 2006
Table 4-11 - sample #2 overview

After data entry we found out that 15 cases had missing value less than 4
percent on measuring variables and 21 cases with less than 10% missing value. We

105
exclude 37 cases from dataset based on Hair, et al., (1998) suggestion. Remained
missing values were replaced with the mean, which is the most common solution to
replacing missing values (Hair, et al., 1989) since PLS Analysis usually works better
on a data set with no missing values After removing all missing values and potentially
problematic responses the sample size was 120 with 30.0% response rate.

4.2.2 Descriptive Analysis

E-ticketing is available for many groups of people in society. Survey #2
consisted of 70.84% men and 29.16% women. We can consider this result as a rate of
Iranian women who her job related to internet. Among this sample, 1.67 of people
were less than 20 years old., 75.83% between 21 to 30 years old , 15.0% between 31
to 40 years old and 7.50 % were older than 40. It shows not only young people (21-
30) were interested in participating in our survey, but also they are working with
internet more than other groups. In survey #2, 40.0% have bachelor, 49.17% master,
5.83% PhD, and 5% were student, or have diploma. All descriptive analysis has been
shown in table 4-12

Category Description Number Percentage

Men 85 70.84
Gender Women 35 29.16
Missing Value 0 0

Less than 20 years 2 1.67

21-30 years 91 75.83
Age 31-40 years 18 15
More than 40 years 9 7.50
Missing value 0 0

Bachelor 48
40.00
Master 59
49.17
Education Level PhD 7
5.83
Other 6
5.0
Missing value 0
0

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 10.83
Less than 100,000 13
5.0
100,000-150,000 6
7.5
Monthly Incoming 150,000-200,000 9
5.0
(Tomans) 200,000-250,000 6
71.67
More than 250,000 86
0
Missing Value 0

Parsian Bank 17 14.17

Saman Bank 18 15
Prepaid Card
No card 85 70.83
Missing Value 0 0
Total 120 100%
Table 4-12 -Responders Demographic results for survey #2

4.2.3 Model evaluation

As discussed earlier, in this survey we used a two-step model testing approach.

4.2.3.1 Measurement (Outer) Model

4.2.3.1.1 Assessment of Convergent validity

The convergent validity of the measurement model of reflective measure is
assed by the examining the correlation between the measure scores and their construct
scores in PLS. The loadings in the measurement model are used to test the reliability
of each item. High loadings ensure that all items are measuring the same construct.
Chin (1998). Acceptable loading is 0.7 for reflective construct.
First of all in order to check the validity and reliability of our reflective
constructs, we used weight and loadings which has presented in table 4-13. The table
shows that all of reflective measurements met the requirements for reliability which is
0.70 except AGOOD which is related to the idea of buying ticket online. This
measure will be removed from PLS analysis in next steps.

Construct Indicator Loading ICR

Attitude 0.7928

ABetter 0.7024

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 AEnjoy 0.8456

AGood 0.4409

Alike 0.7767
Intention 0.9017
int1 0.8951
int2 0.7857
int3 0.9191

Table 4-13- Loadings and weights for Survey #2

The above measurement model indicates that the instrument used was not
adequate for measuring attitude although it was suitable for intention constructs.
Moreover, as another indicator, the internal composite reliability (ICR) score is
recommended to assess the reliability of the reflective measurement (Chin, 1998). In
the measurement model for this study, composite reliability of every reflective
construct was 0.7 or above .ICR is not necessary for formative measures. Table 4-13

Average variance extracted (AVE) is another item to check reliability of a

reflective measure and is average of the squared loading of each item on a construct.
It is used to assess how well a theoretical latent construct explains the variance of a
set of items that are supposed to measure this construct. In other words, AVE is used
to measure the amount of variance captured by the indicators of a construct versus the
amount of variance caused by the measurement error. (Yao 2004) AVE must be
higher than 0.5 for all reflective measures. (Table 4-14) In this study all reflective
measures have AVE higher than 0.5 which was recommended by Fornell and Larcker
(1981) it means at least 50 percent of measurement variance is captured by the
construct. Table 4-14 presents ICR, AVE and Cronbach alpha after removing
measures which didnt meet required loadings.

Composite Cronbach
Construct AVE
Reliability Alpha
Attitude 0.7546 0.6372 0.7197
Subjective norm
Perceived behavioral Control

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 Trust to Brand
Trust to Website
Perceived Risk
Perceived consequences
Intention 0.9017 0.7544 0.8363

Table 4-14-Composite Reliability, AVE and Cronbach Alpha

4.2.3.1.2 Assessment of Discriminant Validity

There are two steps for discriminate validity of reflective measurements (chin
1998)
1) Items should have a higher correlation with the construct that they are supposed
to measure than with any other constructs in the model.
2) The square root of AVE of each construct should be larger than the correlation
of the two constructs (Staples, et al., 1999).

Cross-loading checked was performed by using SmartPLS and the latent

variable scores item for each item on all latent variables generated. The result has
been presented in table 4-15. In the table, all items loaded higher on the construct that
they were supposed to measure than on any other constructs. No items loaded at more
than 0.707 on any other construct that they were not theoretically specified to
measure. This cross-loading check indicated that 2 reflective items loaded uniquely on
the specified constructs.(Table 4-15)
Att INT
Abetter 0.7234 0.1791
Aenjoy 0.8618 0.3014
Alike 0.8036 0.3050
int1 0.3247 0.8934
int2 0.2652 0.7889
int3 0.2866 0.9184

Table 4-15-Factor Structure Matrix of Loadings and Cross-Loadings

Another test is to compare the correlation between any two constructs with the
average squared root of AVEs of these two constructs. The test requires that the
correlation be smaller than the average of the two root-squared AVEs. Stricter

109
requirements of this test even ask that the correlations be smaller than both the
squared roots of AVE (Staples et al, 1999).

The results of the discriminant validity analysis are displayed in Table 4-16
Diagonal elements, which should be larger than any other corresponding row or
column elements, show the square root of the AVE, whereas the off-diagonal
elements show the latent construct correlations. In this study, there was no correlation
between any two latent constructs larger than or even equal to the square root AVEs
of these two constructs. Most of the correlations were far below the square root of
AVEs. Consequently, the results demonstrated that all constructs in the model were
indeed different from each other. Discriminant validity was supported in this
measurement.
After all these reliability and validity checks, the instruments presented a
satisfactory measurement model.
ATT INT AVE
ATT 0.820 0.6372
INT 0.3367 0.868 0.7546
PBC 0.3383 0.2421 0.000
PR 0.0146 -0.1464 0.000
PU 0.2583 0.4010 0.000
SN 0.2336 0.1769 0.000
TrustB 0.1005 0.0110 0.000
TrustW 0.0.769 0.0902 0.000

Table 4-16-Correlations between latent constructs and square root of AVE

Since the loadings and cross-loadings cannot be used to assess the reliability
and validity of the formative indicators, these measures are evaluated on the basis of
their substantive content, and by comparing relative size and statistical significance of
their estimated weights (Chin 1998). The results are presented in Table 4-17. All
formative measures, significant and non-significant, will remain in model for
estimating model. On the other hand the reliability of formative measures can not be
examined before using the measures in PLS.

NS: Not significant, P-values: * <0.50, **<0.01, ***<0.001

Weight T Statistics Proposed
effect
PBCAcce -0.2910 -1.2193 + NS
PBCDesc 0.2180 0.997 + NS

110
 PBCHelp 0.1803 0.9750 + NS
PBCNav 0.1957 0.9105 + NS
PBCSpee 0.6753 3.4938 + ***
PUAvail 6003 2.49787 + **
PUCost 0.2335 1.0822 + NS
PUCust 0.1225 0.8899 + NS
PUPack 0.0498 .3334 + NS
PUReal 0.1492 1.0905 + NS
PUSave 0.0651 0.4013 + NS
PUUp 0.3045 1.4754 + NS
PRHack 0.0079 0.0275 - NS
PRInf -0.1334 -0.5238 - NS
PRLose 0.6018 2.1660 - *
PRPlan 0.7164 2.4980 - **
PRServ 0.1104 0.3677 - NS
PRTime -0.2225 -0.10357 - NS
SNFamil 0.1015 0.3494 + NS
SNMass -0.2802 -0.9410 + NS
SNRep 0.8047 2.381 + **
TBrand 0.2225 1.0444 + NS
TCert 0.6197 2.2438 + **
TCrm 0.4939 1.8063 + *
TForum 0.6010 2.4626 + **
TInfor 0.4194 1.7452 + *
TLocal 0.1514 0.8462 + NS
TPriva 0.3014 1.3253 + NS
TTech 0.1849 0.7694 + NS
Table 4-17- Measure model - result formative measures
The PLS measurement Model for both reflective and formative indicators is
satisfactory, now the next step is in to evaluate Structural model.

4.2.3.2 Structural (inner) Model

The structural model is evaluated by using the R-square for dependent
constructs, The size and t-statistics and significant level of structural path coefficient.
The t-statistics are estimated using the bootstrap resampling procedure. The structural
model result are summarized in figure 4-3 And table 4-19 .Table 4-19 shows the
proposed hypotheses, the path coefficient, the observed t-statistics and significant
level based on 1-tail test.

111
 Figure 4-3 Estimated result for proposed model Survey #2

4.2.3.2.1 R-square
We used SmartPLS to test hypotheses. SmartPLS provides the squared
multiple correlation (R) for each endogenous construct. This number is used to
measure the percentage of construct variation that the model explained (Wixom and
Watson, 2001).In our study, all the exogenous factors in the model explained 27.1
percent of intention to e-ticketing adoption. Perceived risk and trust to the
organization explained 27.5 percent of Trust to the website and Trust to the website
,perceived usefulness and Perceived risk explained 0.068 percent of Attitude. Table 4-
18 shows the summery.
Construct R
Intention 0.271
TrustW 0.275
Attitude 0.068

Table 4-18- (R) for each endogenous construct

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4.2.3.2.2 Structural Path
The next step is to evaluate the proposed hypotheses by using significant level
of the estimated structural paths. SmartPLS provides path Coefficients that indicates
the strength of the relationship between the two constructs (Wixom and Watson,
2001). The bootstrap procedure with 300 resample was used to calculate the
significance of these coefficients. Figure 4-3 presents the structural path diagram with
the coefficients of paths. The result are summarize in table 4-19.

NS: Not significant, P-values : * <0.50 , **<0.01 , ***<0.001

Path T-
H Description coefficient statistics

Attitude toward using e-ticket will increase intention of

H1 0.1094 *1.7939 S
purchasing ticket online.
Subjective norm has positive impact on passengers
H2 0.0979 1.229 NS
intention to use e-ticket.
Perceived behavioral control has positive impact on
H3 0.1203 1.4047 NS
passengers intention to use e-ticket.
Trust to the organization will increase customers
H4 0.3815 **3.1116 S
willingness in order to trust website (e-service provider)
H5 Trust to the website will increase attitude toward buying
0.0225 0.2920 NS
ticket online.
H6 Trust to the website will increase intention to buying
0.0418 0.4662 NS
ticket online.
Perceived Risk has negative impact on intention to
H7 -0.1988 *-1.8678 S
purchase ticket online.
Perceived Risk decreases attitude toward purchasing e-
H8 -0.0016 -0.0145 NS
ticket.
Perceived Risk has negative impact on trust to the e-
H9 0.2740 *2.0976 NS
ticket provider website.
Perceived usefulness has positive impact on intention to
H10 0.3188 **3.129 S
purchase ticket online
Perceived usefulness have positive impact on attitude
H11 0.2534 **2.4687 S
toward purchasing ticket online
Table 4-19- Proposed hypothesis

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Effects on Intention
Intention to use e-ticket in this research is jointly predicted by Attitude (t-
value=1.7939, p<0.05) perceived behavior control (t-value=1.4047, p>0.1) ,
subjective norm (t-value=1.2293,p>0.1) ,Trust on website(t-value=-0.4662,p>0.1)
,Perceived risk(t-value=-1.8678,p<0.05) and Perceived usefulness (t-
value=3.1259,p<0.01) and these variables explain 27% of the variance on intention to
use (R2=0.271, Coefficient of determination). Among the relationships, Perceived
usefulness is a major influencer on individuals behavioral intention to use e-ticket.
Moreover, Subjective Norm and perceived behavioral control dont have significant
impact on intention to use e-ticketing. It shows that for professional persons who
work with internet and who are involved in developing internet, perceived usefulness
and the advantages of using e-ticketing is the most important factor for accepting the
service.

Attitude significantly impact customers intention to use e-ticket and attitude

toward using an e-service which is e-ticket in this case will increase intention of using
e-service, thereby supporting hypothesis 1 and approved the original TPB path
between attitude and intention.

Subjective norm as social effect on adoption has not significant impact on

intention of using e-ticket doesnt support hypothesis 2. This result shows that
important persons and the programs in mass media such as advertisement dont have
significant effect on internet professionals e-ticketing acceptance. The influence of
Subjective norms on intention is not significant but because of formative measures of
this construct we will study the effect of the measures of SN on intention. The
SNFAMIL or the effect of family in adoption of e-ticketing is not significant and
family member cant play an important role for professionals to adopt or reject e-
ticketing. SNREP has significant positive effect on adoption of e-ticketing, it means
that one the best way for extending usage of e-ticketing among professionals is
publishing scientific reports. Another factor ( SNMASS ) or the effect of using mass
media on adoption is not significant (-0.2802) but surprisingly it has negative impact
on intention and this group of people believe that mass media will reduce their
intention to use e-ticketing.

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 Perceived Behavioral Control has not significant impact on intention of using
e-ticket among this group of people. (Path coefficient= 0.1203, p>0.1) and doesnt
supports Hypothesis 3. This result shows that perceived behavioral control doesnt
play an important role on adoption of e-service for professionals Iranian customers.
These users believe that they would be able to use e-ticketing based on their abilities.
Not only Perceived behavioral control doesnt have significant effect on intention but
also its formative measures have not positive effect on intention. PBCACCE or the
accessibility of website has not significant effect on intention to use e-tickting(t-
value=-1.2193) , PBCDESC or description of product has not significant effect on
intention although its positive (t-value=0.997) . PBCHELP or ability to use internet
without help has not significant effect on intention to use e-ticket (t-value=.9750) and
PBCSPEE or the speed of website has significant effect on intention (t-value=3.4938)
at the same time PBCNAV or the ease of navigation in website doesnt have
significant effect on intention (t-value=09105).

Two type of trust has been considered in the model. Trust on website and trust
on organization (Brand). There is no significant relationship between Trust on website
and intention to use e-ticket (t-value=0.4662). It shows although providing privacy
and policy issues, certificates, latest technology in a website can be important
methods for companies to pursued people to use their services through the companies
website, but it doesnt play an important role in customers acceptance to be a
customer. Therefore Hypothesis 6 has not been supported. Although truest has not
significant effect on intention, its formative measures have positive and non-
significant effect on intention. TCERT or the certificate of important organization will
increase trust to the website and intention to use website for purchasing e-ticket (t-
value=2.2438, p<0.01) TINFOR or the sufficient information about the e-ticketing
service has significant effect on intention to purchase ticket online.( t-
value=1.7452,p<0.05). TPRIVA or privacy policy issues in website about the
customers private information have not significant effect on trust to the website and
intention to purchase ticket online (t-value=1.3253) and TTECH or the technology
which has been used to create the website has not significant effect on trust to the
website to use its service (t-value=0.7694). The result shows that professionals have

115
different opinion about trustworthy websites and if they trust on the website, it doesnt
have influence on their decision to reject or adopt e-ticketing.

Perceived Risk has a significant negative impact on intention of using e-ticket

(path coefficient= -1.8678) and support Hypothesis 7. This result shows that
customers will be adopted generally e-service and in this study, e-ticketing, if they
dont find it risky. Although perceived risk construct has significant negative effect on
intention, but its formatives measures have non-significant and positive and negative
effect on intention. PRHACK or the feeling about controlling of accounts by hackers
has not significant effect on intention (t-value=0.0275). It could be resulted of the
professionals experiences or their knowledge about internet and its security issues.
PRINF or using the provided information by customers for advertising purpose
(without customers knowledge) has not significant effect on intention to use e-
ticketing although this impact is negative (t-value=-0.5238). PRLOSE or losing
privacy with using e-ticketing has significant effect on intention (t-value=2.1660) but
its not negative. The possible reason is that this group of people doesnt agree with it
and trust on privacy policies that website mentioned in their privacy policy sections.
PRPLAN or losing travel plan because of the malfunctions in the e-ticketing services
has significant and positive effect on intention. The possible reason is that
professionals dont use e-ticket as a first option and agencies are still first option of
purchasing ticket. PRTIME or the time that the passenger must spend to learn
working with e-ticketing has not significant effect on intention (t-value=-0.10357)
although this effects is not negative and does not support our perceived results. The
possible reason is that this group believes that although learning time can be
negatively effective on their intention to use e-ticketing but they could manage
everything without problem with this new service. PRSER or the probability of server
fails during purchasing online doesnt have significant effect on perceived risk about
e-ticketing although its positive (t-value=0.3677).

Perceived usefulness has a significant impact on intention of using e-ticket (t-

value=3.1259) and support Hypothesis 10. This result shows that customers will be
adopted generally e-service and in this study e-ticketing if they find it beneficial and
the service provides them positive consequences that impact on their quality of the
service that they want to use. Although perceived usefulness has positive effect on

116
intention but the formative indicators has positive, negative and non-significant effect
on intention. PUAVAIL or the availability of the website (7*24*365) to buy ticket
online has significant positive impact on intention to purchase ticket online(t-
value=2.49787, p<0.01), PUCOST or the reducing of searching cost with using e-
ticketing, PUSAVE or saving time by using e-ticket have not significant effect on
intention to use e-ticket.(t-value=1.0822), (t-value=0.4013). At the same time
PUPACK or having the ability of using packed (bundling) products and services has
not significant positive on intention to use e-ticketing. PUREAL or real time decision
making, PUUP or having update information about tickets and flights by using e-
ticketing services and PUCUST or customizable website based on the passengers
need have not significant effect on intention to use e-ticketing.

Antecedents of Attitude
As presented in model Figure 4-3 trust on website (t-value=0.2920 p>0.1) has
not significant positive impact on attitude toward using e-ticket. This results shows
that trust on website doesnt increase the attitude toward using e-ticket. Therefore the
results doesnt support hypothesis 5. Perceived risk is another construct that has
negative influence on attitude (t-value=-1.8678, p<0.01). This study shows that
perceived risk reduces attitude toward using e-ticket. The result supports hypothesis 8.
Perceived usefulness has significant effect on attitude toward using e-ticketing.(t-
value=2.4678 and p<0.01) it means that any positive outcomes of a service will
increase the attitude toward accepting of the service. The result support hypothesis 11.

Perceived risk, trust to the website and perceived usefulness as three

antecedents of attitude account for over 0.067 percent of the variance in this variable.
The result shows that perceived usefulness not only has significant effect on intention
but also has the strongest effect on attitude toward purchasing ticket online.

Antecedent of trust on website

As suggested by t-statistics and path coefficient values, Trust on
organization(brand) has positive significant effect on trust to the website. Trust to the
organization can provide sufficient image for the website. Trust to the brand has
significant impact on customers trust on to the website who provides e-service (path
t-value=3.1116, p<0.01). This result support hypothesis 5 and suggests that brick and

117
click companies would be successful in the world of e-service providers because of
the effect of their image on customers. In the other words, how much a brand has
better image, people will trust its website more. There is relationship between
Perceived risk and Trust on website. Based on t-value which is 2.0976 we can
conclude that hypothesis 9 is not supported and perceived risk doesnt have
significant negative effect on trust on e-service providers website.
The effect of these two antecedents on trust to the website (Trust on brand and
Perceived risk) accounted for over 27.3 percent of variance of Trust on website
variable. Trust to the organization has the strongest positive effect on Trust on website
with the path coefficient of 0.3815. Trust to the organization has significant positive
effect on trust to the website . Its formative measures have positive significant effect
or non-significant effect on trust to the brand. TBRAND or trust to the famous brand
name doesnt have significant effect on trust on its website (t-value=1.0444) .TCRM
or customer services provided by the company has positive effect on trust to its
website and the company (t-value=1.8063) . Talking with previous customers of
company has positive effect on trust to the website and trust to the organization or
company (t-value=2.4626). Trust to the Local companies doesnt have significant
positive effect on trust to their website and the result shows that this effect is positive
and but non-significant. (t-value=0.8462)

4.2.4 Summary of survey #2

In a sum, perceived usefulness and attitude toward purchasing online play important
role on passengers acceptance of e-ticketing in Iran. Perceived risk related to the e-
ticketing has significant negative effect on intention. Trust on website and perceived
behavioral control and subjective norm have not significant effect on passengers
intention to accept e-ticketing service. While Perceived usefulness increases attitude
toward using e-ticketing, perceived risk and trust on website dont make difference.
Trust on website is affected by trust on organization and perceived risk doesnt have
positive effect on trust on website. In fact professionals who their job is related to the
internet has different pattern of adoption and the most important factors affecting on
their e-ticketing adoption is perceived usefulness of the service.
The proposed model and hypothesis are in table 4-20 and figure 4-4

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 NS: Not supported,S:Supported P-values : * <0.50 , **<0.01 , ***<0.001
Path T-
H Description coefficient statistics

Effects on Intention (R-Square : 0.271)

Attitude toward using e-ticket will increase intention of
H1 01904 *1.7939 S
purchasing ticket online.
Subjective norm has positive impact on passengers
H2 0.0979 1.229 NS
intention to use e-ticket.
Perceived behavioral control has positive impact on
H3 0.1203 1.4047 NS
passengers intention to use e-ticket.
H6 Trust to the website will increase intention to buying
0.0418 0.4662 NS
ticket online.
Perceived Risk has negative impact on intention to
H7 -0.1988 *-1.8678 S
purchase ticket online.
Perceived usefulness has positive impact on intention to
H10 0.3188 **3.1259 S
purchase ticket online
Effect on Attitude (R-Square: 0.273)
H5 Trust to the website will increase attitude toward buying
0.0225 0.2920 NS
ticket online.
Perceived Risk decreases attitude toward purchasing e-
H8 -0.0016 0.0145 NS
ticket.
Perceived usefulness have positive impact on attitude
H11 0.2534 *2.4687 S
toward purchasing ticket online
Effects on Trust on website (R-Square)
Perceived Risk has negative impact on trust to the e-
H9 0.2740 *2.0976 NS
ticket provider website.
Trust to the organization will increase customers
H4 0.03815 **3.1116 S
willingness in order to trust website (e-service provider)
Table 4-20 Summary of the result of second survey

119
Figure 4-4-Summary of results for proposed model

120
Chapter 5

5 Discussion and Conclusions

This chapter discusses the key findings, the limitations and directions for future
research and the final conclusion of this research.

5.1 Findings

The purpose of this research was finding the factors affecting e-ticketing adoption in
Iran. Two different surveys have been conducted to test the model which was mainly
based on Theory of planned behavior. For the first survey group of passengers with at
least minimum ability to use internet who didnt use e-ticketing before was selected
and for the second survey the group of IT professionals who their job directly related
to the internet was selected.

Because of the main reason of this research which was finding the factors we decided
to work on factors which form our abstract constructs, to make them more
understandable and make the research practical for using in real cases. Although
finding and evaluating main constructs such as trust, perceived risk, perceived
usefulness and subjective norms are not difficult, but our purpose was to find the
factors that create and form the main constructs to help web designers and developers,
marketers and at the same time managers to realize what is important for customers

121
and visitors and what make their service beneficial for both groups of buyer and
provider.

The overall result for the first survey shows that Theory of planned behavior provides
good understanding of these factors. The results show the strong support for the
positive effect of subjective norm and attitude on intention to use e-ticket and negative
effect of perceived risk. These factors explain 43.5% of the variance of intention to
use e-ticketing.

We found that positive effect of Perceived usefulness and trust on website explain and
negative effect on perceived risk explain 30% of the variance of attitude toward using
e-ticketing and trust on website is mainly effected by trust on the organization who
owned the website. Beside all these, we found the factors that create the trust on
websites, perceived usefulness, perceived risk, perceived behavioral control, trust on
organization or company and subjective norms.

In the case of trust on website we tested 4 factors and we found three of them
significant. Certificates of important companies, Banks and websites that show the
reliability and quality of services, accuracy and security of transactions increase trust
to the website and attitude toward using website. In addition, providing privacy policy
of website and using latest technology to develop the website is an effective factor to
make the website trustworthy and increase customers attitude toward using e-ticket.

In the case of perceived usefulness we found out that reducing searching cost for
finding suitable ticket, availability of website for 24 hours a day, 7 days a week and
saving time with buying ticket online are important factors which pursued people to
buy ticket online.

In the case of subjective norms, the result shows that family member and related news
and reports have significant effect on intention to use e-ticketing. In fact if the
member of family who works with internet and the articles in related topics are
important factors for inexperienced passengers, the government, e-ticketing providers
and at the same time computer related and transportation industrys magazines can
play an important role in adoption of e-ticketing with providing related papers.

122
 1- Working on Perceived behavioral controls measures indicates although
this research shows that the speed of loading website is the only important
facilitating condition for inexperienced passengers in order to use e-
ticketing system.

For the last factors which it was trust on organization we found out that Iranians trust
on local companies and websites and prefer websites belong to the famous local brand
or organization. This result is a good opportunity for Iranians airlines; although
internet is available for all countries and Iranians can purchase requested ticket for
abroad- from any airline, they prefer Iranians first.

For the second survey we found predictable results that dont match theoretical
concepts of TPB and could be explained by TAM where the adoption occurred when
person believes that a particular system would enhance his or her performance. In
second survey we worked on IT professionals who are working in internet related
fields. The result shows significant support for impact of perceived usefulness,
attitude and perceived risk on intention to use e-ticketing; and perceived usefulness
was the only factors impact on attitude toward using e-ticketing. It seems that the
second group will accept the system just if found it useful. The possible result is that
this group has different tools and pattern to evaluate service and website in order to
use the service and trust on website. The factors that have significant effect on its
correspondent construct are speed of website, the availability of the e-ticketing,
Certificates in website, customer services provided by the company, information
about service and product and talking with previous customers of who used service
already. It means that customers need a place to share their experience. Its possible to
create an open forum in website which increases the chance of direct contact.

The last important factors for second group were reports and news about the service.
We assume that the members of second group are capable to write technical papers
about e-services or even e-ticketing and accept that this feature help them to adopt or
reject service just based on its effect on their performance (service possible
usefulness). we believe that we have new way to extend the idea of using new e-
service in this case e-ticketing in society. This group can write papers based on

123
advantages and disadvantages of e-ticketing in related magazines. In fact we can use
this group as a gateway of new technology for society and let them write the possible
opportunities for people if they want to use e-ticketing. We think this part is a missed
part of puzzle in out related magazines that always focus on technical side of systems
instead of functions of new system, effectiveness and advantages or disadvantages for
end users. And based on the result of the first group ordinary people will read related
papers and reports and found them effecting on their intention to adopt or reject the e-
service. In fact we think, we should look forward and try to help our people to
improve their ability to use internet and understand the key points in websites and e-
services that made the, capable to recognize trustworthy or risky websites, reliable or
unreliable e-services based on knowledge (not just psychological points or feelings),
instead of reducing websites quality or service functionality which just keep people
in low level of knowledge and ability.

5.2 Managerial implications

We hope this research can answer some industry-specific problems. Although

e-ticketing in Iran is successful now, we should work on any opportunity to increase
the rate of e-ticketing adoption in Iran. Based on what we found there are some
solution for increasing customers adoption.

First of all the managers and IT staff of airlines should work on the structure of their
website, using the latest technology to create website can be considered as a first step,
the second step should be increasing the level of security and reliability of service in
order to receive related certificates and then providing separated section about
customers privacy policy when they purchase ticket online are important factors that
increase trust on website and could be considered as important parameters for attitude
toward buying ticket online.

The results show that an organizational reputation has an important influence on the
customers' attitude toward using e-ticketing (indirectly) and customers trust to the
website. This implies that companies should communicate a strong ``e-mage'' to its
customers, using various communication channels. . For this purpose, companies also

124
should try to leverage existing brand equity. Furthermore, they can link their sites to
credible reference sites to back up their good reputation or publish best practice cases
and offer a clear and comprehensive site that highlights the company's mission and
identity (Ruyter et. al 2000). At the same time the effect of perceived usefulness on
intention and attitude warn a critical point: when customers want to purchase online,
they are able to compare all offerings, prices, privacy polices, advantages and
disadvantages of provided services by different websites. Technologies and ideas can
easily copied by competitors and they can grab all potential customers or even
currents. The only way is to add special features to the service and use brand
reputation.

We found that reducing search cost is an important factor for customers to adopt e-
ticketing. It shows that both web developers and service providers should design the
process of finding tickets and purchasing it simple and easy as possible in order to be
acceptable by customers and made them satisfy to use the e-ticketing system.

The result shows that Iranian customers will use the website that has better loading
speed therefore:
1- Web designers should work on simple graphical interface (GUI). The surveys
conducted by the Graphics, Visualization & Usability (GVU) Center at Georgia
Tech which have consistently shown that slow loading speed is one of the major
complaints of web shoppers (GVU 1991). (Gehrke and Turban 1999) suggested
that designers use simple graphic and minimize the multimedia plug-in
requirement and animation.
2- The result possibly shows that Iranian internet users are facing with the problem of
the internet connection with poor quality. The managers of e-ticketing providers
websites can make a decision about this case. In fact if Iranian customers wouldnt be
able to use e-ticketing services because of the low speed websites, all Iranian e-
service providers can be transferred to the local servers in Iran (As a part of Iran
Nation Internet plan). Although some of e-service providers such as Iran air have
foreign customers, they can save their current website in foreign countries too and
conduct none-Iranians visitors to that website to save the suitable speed of loading.

125
It should to be a successful promotion program that airlines employees in branches
invite people to use e-ticket instead of waiting at counters to receive a paper-based
ticket. It would not possible without providing essential equipments such as PCs or
laptops for customers, internet connection and employees to help people to use e-
ticketing. We should remember that when a passenger want to purchase ticket in
branches, he has not enough of time to spend on using Test account or participating
in educational courses; therefore employees can help the customers through the
process of buying e-ticket in branches with answering the questions or offering
special brochure about e-ticketing or the course of actions should be taken as next
steps in airport to ensure them that at the end they will be satisfy with the result.

5.3 Implication for future research

Direction for future research is mainly based on current limitations. First of all
although the sample 130 size is adequate and theoretically acceptable, but the result
shows that more responders would increase the accuracy of current result.
Furthermore the research has been restricted to the single location. Although this
research has focused on all passengers on Mehrabad airport, but we could have
chosen some other airports to have more representative sample. There are some
reasons for this decision:

1- Since airports are military related sections, some governmental

approval are needed for distributing questionnaires in these places and
receiving such a kind of approval for different cities was not possible
because of timeframe.
2- Mehrabad airport is the most important airport in Iran with more
that 9 millions passengers per year for domestic flights (CAO 2006).
3- Researcher location
Other limitations were passengers time and level of knowledge to use internet
prevented us from asking more questions in questionnaire to obtain more detailed
information. It was possible to do survey on airplane where people have more time to
answer the questions, but we didnt use it because of the possibility of limited number
of suitable passengers for our survey on airplane (specially when the responder should
be a passengers of domestic flights)

126
Theoretically, the results show that the researchers should work on finding factors that
are more significant on perceived risk. Although we found that perceived risk has
significant negative effect on intention and attitude toward using e-ticket, but its
related factors didnt convince us and more exploratory researches are needed to find
specific risk-related factors affecting on e-ticketing adoption in Iran.

Generally there are some additional concepts that are suitable to be added to the
current model. Since there is an only one year remains of IATA deadline for replacing
paper-based ticket with e-tickets and people must be ready for using e-ticket in 2008,
it seems that we should work on finding website and e-ticketing related factors deeply
to attract customers instead of only working on factors which are directly related to
psychological characteristics of customers such as innovativeness or habit.
In addition there are two subjects for future research:
1- Working on models and factors affecting on repurchasing and being
repetitive customer of e-ticketing
2- Working on the future of Travel agencies in Iran. Since Irans
regulations dont let travel agencies provide e-ticketing system on their
own website (they just can purchase ticket online for their customer by
using airlines website), customers e-ticketing adoption will cause
some major problems for travel agencies such as loosing customers.
The question is what are the possible ways to help travel agencies after customers e-
ticketing adoption? Possible answers are providing specific pricing strategy for selling
e-ticket to the travel agencies or integrating with them to provide better services.

127
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6 Appendix
6.1 Questionnaire

Two types of questionnaire has been distributed. Web-based questionnaire is available

on http://dehbashi.com/questionnaire/e-servive-fa.html. Persian version of
questionnaire is as follows:

6.1.1 Persian version

) (

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6.1.2 English Version

Gender : Male Female

136
Age : Less than 20 20-30 30-40 More than 40

Income (Tomans):
Less than 100,0000- 150,000- 200,000- More than
100,000 150,000 200,000 250,000 250,000

Education Level :
Bsc Msc PhD Other
Are you using Internet Purchasing Card?
No Saman Bank Parsian Bank

Please answer the questions:

Note
1- Strongly Agree , 2- Agree , 3- Normal ,4- Disagree, 5-Strongly disagree

1- My decision to buy ticket online is a good idea.

2- I like to buy ticket through the Web.

3- Purchasing through the Web is enjoyable.

4- My feeling with using the e-ticket service is better

than buying normal ticket.

5- My family would think that I should use e-ticket.

6- Mass media (advertisement,) convinced me to use e-

ticket.

7- I read / saw reports show that using the e-ticketing

service is a good way of purchasing ticket

8- I am able to navigate on the Web without any help.

9 - The loading speed of the pages of the website where I

purchase a ticket (or will purchase) is (will be) important.
10 - The Web site where I usually buy a ticket (will buy) are
(will be) easily accessible, e.g., through search engines, and
Web ads.
11- A ticket I usually want to buy (will buy) is (will be) well
described in, e.g., appropriate information, legal issues,
return policy,...

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12 - The Web site where I usually buy a ticket (will buy) is

(will be) easy to navigate.

1- Providing sufficient information about e-ticketing

decrease uncertainties.

1 - Talking with previous purchasers helps me to make a

decision about using e-ticketing.

1 - Customer service provided by e-ticketing provider is an

important in trusting the provider.

1 - I usually use e-ticketing based on their providers'

reputation.

1 - Certificates provided by third parties in e-ticket

provider's Website affect on my trust.

1 - I'll trust the website which uses latest technology.

- I usually prefer e-ticketing provided by local airlines.

2 - I use e-ticketing when the website clarifies it's Privacy

policy about my private information

2 - The possible time loss from having to set-up and learn

how to use e-ticketing is risky.

2 - Servers may not perform well and It's possible that I

lose my ticket.

2 - Using e-ticket would add great uncertainty to my travel

plan.
2 - My signing up for using e-ticketing would lead to a loss
of privacy for me because my personal information would
be used without my knowledge.
2 - Internet hackers (criminals) may take control of my

account if I use e-ticketing.

2 - Using e-ticketing will cause me to lose control over the

privacy of my payment information.

2 - Purchasing e-ticket allows me to have up-to-date

information about e-services provided by airline.

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2 - Purchasing ticket through the web helps me to have
real-time decision-making with comparison all e-ticket
providers.
- I'll use e-ticketing because of packed (bundling)

products and services.

3 - I use e-ticketing because it reduces my search costs.

3 - I'll use e-ticket because it will be customized based on

my needs.

3 - I'll use e-ticketing because it's always available.

3 - I'll use e-ticketing because I'll save more time.

3 - I intend to buy ticket through the Web in the near

future.

3 - It is likely that I will purchase through the Web in the

near future.

3 - I expect to purchase ticket through the Web in the near

future (i.e., next three months).

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