A STUDY OF PERCEIVED RISK AND RISK REDUCTION OF PURCHASING AIR‐TICKETS ONLINE

Lisa Hyunjung Kim · Hailin Qu · Dong Jin Kim

130 citations0/0 files storedJournal of Travel & Tourism Marketing

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Technology Adoption and User Behaviour Customer Service Quality and Loyalty Consumer Behavior and Marketing Influence

Abstract

The concept of perceived risk explains consumers' purchasing behavior that involves risk with unanticipated or uncertain consequences. Using perceived risk theory, this study explored customers' risk perceptions regarding online air‐ticket purchases. This study discovered that security risk was the most important predictor to overall risk regarding online air‐ticket purchases. In addition, nonpurchasers perceived a higher risk than online purchasers, in terms of performance, security, financial, psychological, and time risks. Regarding risk‐reduction strategies, shopping around over the web was more important to online purchasers than to non‐purchasers. In addition, reputation of web vendor, well‐known brand, symbol of security approval, and recommendation of family and friends were perceived as preferred risk‐reduction strategies when making online air‐ticket purchases. Further, this study's results revealed that respondents' perceived risks of online air‐ticket purchases differed according to demographic characteristics. The implications of the research findings for online marketing activities are discussed.

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1985Problems and Strategies in Services Marketing 2004Management International Review 1994A Model of Perceived Risk and Intended Risk-Handling Activity 1991A Test of Services Marketing Theory: Consumer Information Acquisition Activities 1971Consumer Rankings of Risk Reduction Methods 1969Risk Taking and Information Handling in Consumer Behavior 1981Consumer behavior and marketing action 1993Perceived Risk: Further Considerations for the Marketing Discipline

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