Academic journal article Journal of Theoretical and Applied Electronic Commerce Research

What Factors Influence Online Brand Trust: Evidence from Online Tickets Buyers in Malaysia

Academic journal article Journal of Theoretical and Applied Electronic Commerce Research

What Factors Influence Online Brand Trust: Evidence from Online Tickets Buyers in Malaysia

Article excerpt

Abstract

This study examines online brand trust and its influencing factors in the specific context of online air ticket buyers in Malaysia. Summarizing academic literature on online brand trust drivers, it was found that there is a need to conduct research on online brand trust. Accordingly our hypotheses is that word-of-mouth, online experience, security/privacy, perceived risk, brand reputation and quality information have significant influence on online brand trust. Our hypothesis is being tested in terms of mentioned variables, on online airline ticket buyers in Malaysia. Using survey methodology, data was collected from 289 online air ticket buyers through questionnaire; validity and reliability tests and causality analysis (multiple regression analysis) had been conducted. According to the findings of the study, security/privacy, word-of-mouth, online experience, quality information and brand reputation appear to have a significant and positive relationship with online brand trust. The results are compared with earlier findings and limitation and further research are discussed. This study provides insightful understanding of consumer's online brand trust.

Key words: Online Brand Trust, Security/privacy, Word-of-mouth, Online Experience, Quality Information and Brand Reputation, Malaysian Internet Users

1 Introduction

All around the world we can see consumers turning to the Internet for their shopping needs and concerns. This has opened a window and business opportunity for all businesses. Online shopping has several benefits over traditional shopping. One of the obvious benefits is the global reach of the Internet whereby consumers can buy goods and services with a wide range of categories anywhere and at any location. Besides, online sellers deliver the goods to the buyer's home, and customers can order as many items as they can afford. Moreover, online store is open 24 hours a day, 7 days a week and 365 days a year, so customers who want to purchase online have no need to hurry or worry about searching parking spaces at any shopping mall. Likewise, past researchers who examined online shopping found some of the most common barriers which hinder online shopping. Among these are security, privacy, and trust [1], [36], [55], [3], [41], [26]. Trust is one of the single most important factors influencing online shopping behaviour [30].

The Internet has changed tourism business by offering new distribution channels. More and more people are buying online and many have become addicted to this activity. Some people enjoy shopping to some extent, while on the other hand some people try to make it simple and as short as possible. Online shopping is best for customers who try to keep their shopping simple and short. Now customers can also book air tickets quickly, conveniently and with substantial price savings. It eliminates the barriers to the availability of competitive ticket price information, intensifies market transparency and gives more power to the e-customer. Airline tickets are the most sold product on the Internet in Malaysia, where as much as 43.8% of online shoppers buy tickets online [58]. But despite the continued growth in online airline ticket sales, many Malaysian consumers are still somewhat reluctant to make online reservations or purchases.

The Malaysian online users at the moment are still in the experimental stage in online brand. They are still exploring the brands online and seeing what these brands can offer them. In the tourism industry, previously most of the airline travelers are still buying their tickets from traditional agents. The users are not yet convinced of the benefits of the brands that are available online. However, with the emergence of Air Asia as the first low cost carrier in Malaysia, the purchasing of air tickets online is becoming more popular among Malaysians due to its convenience and cost-savings.

Several studies on brand trust have been carried out in the past few years. …

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