Applied mathematics in Engineering, Management and Technology 3(1) 2015:

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1 Technology Acceptance Model and Theory of Planned Behavior Functions in Electronic Ticket Sales Strategy of Iranian Airlines (Case study; Kish Airline) 1 Younos Vakilalroaia, 2 Amir H. Fatorehchi 1 Assistant Prof. and Chairman, Department of Management, Semnan Branch, Islamic Azad University, Semnan, Iran, P.O.B: , Phone: ; younos.vakil@gmail.com 2 Master Student, Semnan Science and Research Branch, Islamic Azad University, Semnan, Iran Younos Vakil Alroaia <younos.vakil@gmail.com> Abstract The aim of the study to understand their willingness and tendencies to buy tickets electronically, through combining technology acceptance model and planned behavior theory so as to develop and expand electronic ticketing of air travel agencies by aligning sales strategies and marketing with customer demands. One of the key advantages of competitiveness for air travel companies today is utilizing the Internet and information technology in ticket sales. (Hanke and Teo 2003). In this regard, most airlines have allocated websites to provide their potential clients with services, and thus they need to compile sales strategies, or change or amend the existing ones so that they can attract more clients and can electronically influence their willingness to buy. Theories such as Technology Acceptance Model and Theory of Planned Behavior can be very useful tools to be utilized for a successful electronic ticket sales strategy. In this research, the execution of electronic ticketing strategy in Kish Airlines has been investigated using both models. in order to change ticketing strategies of airlines, it is necessary to study the clients attitudes first, so that through sales strategies and appropriate marketing compatible with customer demand and taste, favorable results and expectations will be acquired from this change of strategy. This study is an applied research utilizing correlation method. The information required for the research has been collected using a questionnaire and at the end, the data has been analyzed by Lisrel software. Attitude, controlling perceived behavior and subjective norms of the customers directly affect their willingness to buy tickets electronically. Perceived usefulness, perceived ease of use and security and respect for privacy with a positive effect on attitude, and self efficacy, technological support and the government s support with positive effect on perceived behavior, have a positive influence on intentions to buy tickets electronically. Therefore, by improving these factors, airlines can increase their clients intentions to buy tickets electronically. Key terms: E-commerce, customer behavior, planned behavior, technology acceptance model 1 Introduction The genesis of the Internet and its applications in business have had a significant influence on how jobs are done and on the functions of the members of the society, such that the Internet has become a vital tool in businesses and through opportunities it offers, it causes the traditional business to be forgotten. On one hand, the third millennium human is trying to distance from the traditional patterns by accelerating development and application of information technology in different sectors of the social system and to create new patterns fitting the new age essentials. With the help of these tools, organizations are also trying to focus more deeply and more specifically on their activities in areas of operation and competitive disciplines. In this regard, in recent decades, airlines have quickly turned to investing on new technologies to provide services to customers and passengers. One of these electronic services is electronic ticketing which can affect sales strategies and can provide companies with some competitive benefits. Today, markets called internet markets and virtual markets, which have a nature completely different from that of physical markets, have been taken into consideration. Customer behavior on the Internet markets is different from that in physical markets, and thus, it requires knowledge of e- markets and their nature, so that better strategies for competitive advantages can be compiled in these markets (Stewart et al., 2002). Using digital media including the web, , wireless and also digital customer data management and customer relationship management are included in this area (McDonald & Wilson, 1999). 656

2 Theory of Planned Behavior states that real behavior and behavioral tendencies are not only influenced by attitude and subjective norms, they are also affected by perceived behavior control (Ajzen, 1985). By considering perceived controls on performance as an additional prediction, this theory tries to predict the unintentional behaviors as well. This theory focuses on the determiners of perceived behavior. Therefore, in this theory, behavioral intentions are determined by three factors: attitude, subjective norms and perceived behavioral control. Each of these factors has been formed through some beliefs and related evaluations. In the theory of planned behavior, the behavior itself is a function of behavioral intention and perceived behavioral control. The theory mentioned is shown in figure 1: (Husi-fen 2011) Attitudinal beliefs attitude towards behavior or action Normative beliefs internal norms intention to perform Actual attitude the behavior Control beliefs perceived behavior control Figure 1: theory of planned behavior Technology Acceptance Model is one of the frameworks of the theory which predicts acceptance and usage of new information technology in organizations. The main purpose of technology acceptance model is to offer a basis to follow up the influence of external factors on internal beliefs, attitudes and intention of use (Davis 1989). In addition to predictive aspect, this model has a descriptive approach as well, therefore, managers can recognize why a particular system may not be accepted and they can take appropriate corrective steps on the basis of the knowledge acquired. The principles of this model consist of two factors: "subjective perception of usefulness and subjective perception of ease of use. These two factors influence one s attitude towards utilizing a technology and lead to the decision to use the technology and finally, utilization takes place. Moreover, subjective perception of ease of use affects subjective perception of usefulness (Davis, Bagozzi, Warshaw 1989). Ajzen and Fish bein tried to find ways to predict consumers behavior and its consequences. They assumed people as generally being completely logical and that they use the available information systematically, and before they decide to take or not to take an action they consider every related aspect. After considering all studies they proposed a theory which could interpret and predict consumers behavior and attitude. This theory was named Logical Action Theory which seems to predict the behavioral intention toward the attitude. Technology acceptance model is one the most effective approaches for accepting new information technologies by consumers (Baire & Stuber, 2010). us Usefulness Ease of use Attitude Intention Figure 2: Technology Acceptance In order to measure the acceptance and application of electronic ticketing system, customer behavior prediction model is used and among the available models, the Technology Acceptance and Theory of Planned Behavior are used to measure success in executing this strategy. The model summarized from studying related literature has been tested by the data collected through questionnaire and lisrel software. 2 Review of the literature 657

3 In order for the consistency of models related to dissemination of information technology which are rooted in developed countries with the conditions of developing countries in particular, Rose and Straub (1998) tried to investigate the application of technology acceptance model in the Arab world. The results of the study show that the technology acceptance model in the Arab world is also valid as it is in developed countries. In fact, in the Arab world too, emphasizing on logical factors like usefulness and ease-of-use of a new system leads to its acceptance and better application. Whittaker (1999) stated that three key factors including weak planning, incompatibility of the project with the needs of the organization and the head managers support are influential in the failure of information technology projects. Studying the available researches Kunda & Brooks (2000) introduced four main obstacles to the application of information technology in developing countries. These four factors are: lack of skilled human resources, economic limitations, flaws in infrastructures and wrong or inappropriate application. Aiming to investigate the capability of technology acceptance model in cultures other than American culture and to analyze effective factors on information technology acceptance using this model, Al-Gahtani conducted a research. His findings prove the applicability of the model in some other countries and show that personal attitudes, subjective perception of ease-of-use and subjective perception of usefulness have been the most important factors in accepting information technology. Schepers & Wetzels (2007), studied the technology acceptance model. In this quantitative analysis of previous studies about technology acceptance model, they tried to establish appropriate findings concerning personal norms and moderating effects. Their findings showed meaningful effects of personal norms on usefulness and intentions of technology acceptance. Stowart et al (2009), studied information technology effects and its development in the organization on performance. 2-1 The conceptual model of the research Research model is equal to figure number 3: Self efficacy has a positive effect on the perceived behavior control of Kish airline customers concerning their intentions to buy tickets electronically. 3 Methodologies This study is an applied research and the method used therein is the one of correlation. The research has been conducted in three phases. In the first phase, related theoretical sources were collected using library methods. In the second phase, the required data for the research was collected through field method (questionnaire) and ultimately, data analysis was conducted using Lisrel software. In order to evaluate the assumptions of this research and to compile the questionnaire, previous studies were used. To design the questionnaire in the technology usefulness component, the studies of Cheng, Lama and Yeung were taken into consideration. To study the technology use security component, the researches of Pikkarainen, Kajaluoto and Pahnila (2004) were utilized. Concerning perceived behavior component and subjective norms the indices designed by Wu & Chen (2005) were used. The questions to evaluate the component of computer use self efficacy were also extracted from the researches of Compeau & Higgins (1995). Using the studies of Goh (1995), Ko (1990) and Leong (1997) the components of government s technological support were also evaluated. 3-1 Hypotheses of the research 1 The attitudes of Kish airline customers have direct influence on their intention to buy tickets electronically. 2 Controlling perceived behavior of the customers of Kish airline has a direct influence on their intentions to buy tickets electronically. 3 Subjective norms of Kish airline customers have a direct effect on their intention to buy tickets electronically. 3-2 Questioners 658

4 The questions regarding the demographics section were also extracted from Yeung s research (2005). The evaluation of all components was carried out using Likret scale. In order to measure the validity of the questionnaire, the questions were given to the experts in the field. Some of the senior managers of the aviation industry as well as university professors studied the questionnaire. Finally, after receiving experts opinions, corrections were made and the validity was approved by the specialists. Questionnaires were given to 30 of Kish airline customers and after checking the normality, the data was entered in lisrel software. Cronbach s Alpha resulting from the data analysis showed the questionnaire was reliable by 0.73 alpha coefficients. The categorizations of the questions were done as described in table 1: Table 1: categorizing the questions on factors affecting the acceptance of electronic ticket purchase study questionnaire I think buying tickets online gives me the possibility to do it faster. Perceived usefulness I think buying tickets online simplifies the process for me. I think buying tickets online is useful. I think buying tickets online has some advantages. I think learning the process to buy tickets online is easy. Ease of use I think the process of buying tickets online does not require much effort. I think the process of buying tickets online is easy. I trust the technology of online ticket purchase. Security and privacy Self efficacy The privacy of my information in online ticket purchase is trustworthy. It is financially safe to buy tickets online. I do not have concerns about the security of information in the process of online ticket purchase. I can buy tickets online without anybody s directions. I have no problem buying tickets online for the first time. With a little help I can handle the process of online ticket purchase on my own. I can handle the process of online ticket purchase by watching someone doing it. Government s support Technological support Perceived behavior control Attitude The government supports online shopping in Iran. The government provides the necessary facilities for online shopping. The Internet use in business is developed by the government. Technological advances in the Internet security, facilitates online shopping services. High Internet speed is a necessity for online shopping. I can well use the online ticket purchase services. I think the process of online ticket purchase is under my control. I think I have the knowledge, resources and ability to buy tickets online. I think using online ticket purchase services is a good idea. I think using online ticket purchase services is interesting. 659

5 I think using online ticket purchase services is favorable. People who are important to me believe that I should use online ticket services. Subjective norm Intention to buy People who influence me believe that I should use online ticket services. People whose ideas are important to me believe that I should use online ticket services. In case of being offered such services, I will use online ticket services. 3-3 Population and sampling: the population of this research is the passengers of Kish airline. The number of passengers using the services of this airline is 4000 a day on average. The number of the sample considered is 500. In order to collect data from these passengers, the questionnaires were distributed in six flights. The total questionnaires returned by the passengers were 480. Thirty more questionnaires, which were used for the reliability test, were also added to the total number. 4 Empirical Results In order to investigate the assumptions of the research Chi-Square test and factor analysis methods were used. In order to perform confirmatory factor analysis and route analysis the Lisrel software was used. In the confirmatory factor analysis, through data collection concerning revealed variables and the calculation of covariance for the sample population by estimating the model parameters, the researcher decides to estimate the implied covariance matrix in such a way that these two matrices are the closest to each other. The RMR index is described as the root mean square or the reported mean residuals in the model. In a model with a fine goodness of fit, the residuals are very small. In short, the smaller this criterion (i.e. closer to zero), the better the fitting of the model. In this research, the RMR index is which shows the goodness of fit in this model is acceptable. Concerning their utility, the AGFI and GFI indices are similar to correlation coefficient. Both of the criteria vary between zero and one. The closer these indices are to one, the higher the goodness of fit of the model with observed data will be. In this research, the number for these two indices is 0.91 and 0.92 showing a high fitting of the model. The RMSEA index is the root mean square approximation. This criterion has been defined as the size of the discrepancy for every degree of freedom. The RMSEA, which in fact is the same deviation test of every degree of freedom, is less than 0.05 in models with high goodness of fit. In this analysis, the desired index is 0.64 which is acceptable. The NFI index, which is also called Bentler and Bonnet, shows goodness of fit if it is equal or bigger than 0.9. CFI is similar in meaning to NFI, with the exception that it is penalized for the sample population capacity. This index in this model, exceeds 0.9, indicating that the model has a high fitting. The indices of fitting resulted from the model are shown in table 2. Table 2: the indices of goodness of fit for the model obtained by the data Fitness Index Main criterion Acceptance Criterion index No. RMR Residuals variance & covariance Closer to zero GFI Assessing relative value of variance & covariance Between 0-1, over AGFI Mean squares instead of total squares Between 0-1, over RMSEA Room mean square error of approximation Less than NFI Comparing the model with uncorrelated models Over CFI Comparing the model with uncorrelated models Over As seen, the obtained model is favorably compatible with the data, or in other words, the implied model of research is confirmed. 660

6 Figure 4: Figure of confirmatory factor analysis 661

7 Figure 5:T- VALUE Applied mathematics in Engineering, Management and Technology 3(1) 2015: Table 3: results of confirmatory factor analysis Structures Indicators Factor load T-value Perceived usefulness Perceived ease of use Safety and privacy Self efficacy MOF MOF MOF MOF SOH SOH SOH AMN AMN AMN AMN KHO KHO KHO KHO KHO

8 Technological support Government s support Subjective norms Attitude Perceived behavior control Intentions to buy POS POS HEM HEM HEM HAN HAN HAN NEG NEG NEG CON CON CON GHAD Testing the hypotheses: in order to study the significance of the relationship between the variances, t-value test is used. Investigating the relationship between the observed factor load with the T-value test in 0.05 error level, the hypotheses can be confirmed or rejected. The results from the investigation of the hypotheses of this research have been dissected in table 4 below: Table 4: results of hypotheses test The relationship in the model Factor load t-value Result Customers attitudes intention to buy tickets online Perceived usefulness- customers attitude in their intention to buy tickets online Perceived ease-of-use - customers attitude in their intention to buy tickets online Safety and privacy - customers attitude in their intention to buy tickets online Perceived behavior control of customers intention to buy tickets online Self efficacy - Perceived behavior control of customers in their intention to buy tickets online Technological support - Perceived behavior control of customers in their intention to buy tickets online Government support - Perceived behavior control of customers in their intention to buy tickets online Customers subjective norms - intentions to buy tickets online Confirmed Confirmed Confirmed Confirmed Confirmed Confirmed Confirmed Confirmed Confirmed 663

9 5 Discussion and conclusion Today, with the growing global development of e-commerce, businesses, more than ever, try to interact with their customers using this type of commerce and to obtain competitive advantages of their own. Therefore, the competition among online sellers increases every second and this fact results in customers better knowledge of optimal prices while searching products and services. With regards to the importance of information technology and the remarkable effects it has had on businesses, most companies align their grand strategies with these changes so as to create competitive advantages for themselves and to be able to appropriate a bigger part of the market. Airlines are no exception. In Iran, most airlines have changed their means of marketing, sales and services. In order to maintain the present market and to improve present business situation, Kish airline has decided to change their strategy of sales and is moving towards Internet based sales from the traditional method. In this research, using the technology acceptance model and theory of planned behavior, the online ticketing acceptance levels of Kish airline customers have been investigated. The results showed that perceived usefulness should be taken into consideration as a very important index in predicting intentions to buy tickets electronically, thus, the results obtained through this research are in line with those of Chiu, Lin & Tang (2005) and Cheung &ark (2005). Chiu & partners and Cheung & Park (2005) discovered that perceived usefulness has a direct relationship with intentions to shop online.on the other hand, Cheung & Park (2005) concluded that perceived usefulness has a positive effect on Internet shopping. The results of this very research also showed that attitude has a positive effect on intentions to shop online. The results of this research are in line with the results of researches concerning the technology acceptance model and other models of technology acceptance. The findings of this research have shown that perceived ease of use has a significant effect on attitudes toward buying tickets online. These results are confirmed through the original technology acceptance model. In the original technology acceptance model, it has been noted that perceived usefulness directly influences the intentions to shop online, while perceived ease of use has an indirect effect on attitude and intentions of shopping. In addition, the results of this research have shown that subjective norms have a direct influence on intentions to shop online. The results of this study are in line with those of Taylor & Todd (1995), Amin, Baba & Muhammad (2007) and Venkatesh & Morris s (2000). They showed in their research that subjective norm is an important factor in accepting a new product or service. Another finding of this research is that perceived behavior control has a direct effect on the intentions to buy tickets online. This finding is in line with the results of Tan & Teo (2000)and Shih & Fang s (2004) researches. Moreover, the results of this study show that security and privacy have positive effect on intentions of online ticket purchase. This result is in line with the research results of Sathye (1999), Mukti (2000), Chung & Paynter (2001), Sohail & Shanmugham (2007), Gerrad & Cunningham (2003, 2006), Sayar & Wolfe (2007), Sohail & Shaikh (2007). The results show that self efficacy has a positive influence on perceived behavior control of passengers in their intention to buy tickets online. This result is in line with previous findings (Tan & Teo, 2000). Nor & Pearson (2008) discovered that self efficacy and perceived behavior control have positive and significant relationship with one another. In this research, the government s support was found out to have a positive effect on perceived behavior control, which was in line with previous research (Tan & Teo, 2000). Finally, it was discovered that technological support has positive effect on perceived behavior control and this was compatible with the findings of Fink et al (2005) who found in their research that no appropriate technological support and improving it, can affect online ticket sales services. The findings of this research showed that in online shopping and generally in e-commerce, customers are sensitive about their personal and confidential information and are concerned with their being revealed and thus, this is where trust and security reach significance. Managers of organizations need to realize that in order to create a stronger relationship with their clients; the position of their organization must be stabilized and fixed in their customers minds with a higher security and trust. It may be admitted that perceiving security is the most influential factor in creating a positive attitude towards electronic shopping among customers. Therefore, the higher the perceived security of electronic shopping among customers, the higher the probability of their utilizing this method will be. After security, it can be noted that ease of use is another effective factor in using Internet shopping method, which means that by increasing the perceived ease of technology use, the positive attitude towards it is also promoted. Finally, it can be concluded that in order to predict intention and acceptance of technology by users, one need to have a multidimensional view and must avoid superficial approaches toward related choices and plans. Through information technology, economic and financial exchanges and transactions are developed and it results in 664

10 saving a lot of time and expenses. The information indicates that online shopping is developing with continuous trend shown by predictions. Thus, Iranian air travel companies are suggestion to: 1. To inform their customers, through appropriate advertisement, about advantages and the ease of purchasing tickets online and the possibility for them to enjoy such benefits. 2. Through modern marketing methods, to encourage and promote such means of shopping by granting concessions and special incentives for online shopping such as discounts in the case of online ticket purchase, membership in loyal customers club with priority to online passengers, allowing high quality seats to passengers who buy tickets online, upgrading the ticket class for passengers who buy online in case of vacant seats in higher class sections and any other kind of facilities for online customers. 3. To make arrangements for passengers to consider and get accustomed to using the website as a center for various types of facilities related to travel affairs like taxi reservation possibility for transportation to the airport from home and vice versa, granting prepaid ticket cards with the cooperation of operating banks, travel facilities, etc. References Davis, F.D., Bagozzi, R.P., & Warshaw, P.R. (1989). User acceptance ofcomputertechnology: A comparison of tow theoretical models.management Science, 35(8), Davis, F.D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13( 3), Taylor, S.,& Todd, P. (1995). Understanding information technology usage: A test of competing models. Information systems research, 6( 2), Ajzen,I. (1996).TheTheory of Planned Behavior:A Bibliography. [Internet](Receive in 2006/15/6) Ajzen, I. (1987). Attitudes, traits, and actions: Dispositional prediction of behavior in personality and social psychology. In L. Berkowitz (Ed.), Advances in experimental social psychology (Vol. 20, pp. 1-63). New York: Academic Press Fishbein, M. (1996). Behavioral science and public health: A necessarypartnership for HIV prevention. Public Health Reports, 111 (Supl 1) Ajzen, I. and M. Fishbein (1972). Attitudes and normative beliefs as factors influencing behavioral intention.journal of Personality and Social Psychology Ajzen, I. (1998). Attitudes, Personality and Behavior. Chicago, IllinoisAjzen, I. (1996). The Theory of Planned Behavior: A Bibliography. [Internet] Husi-Fen Lin (2011), An empirical investigation of mobile bankingadoption: The effect of innovation ttributes and knowledge-based trust, International Journal of Information Management,pp Baier, D. & Stuber, E. (2010). Acceptance of Recommendations to Buy in Online Retailing, Journal of Retailing and Consumer Services,vol. 17, pp Davis F. D Bagozzi R. P. & Warshaw P. R. (1989). User acceptance of computer technology: a comparison of two theoretical models, Management Science, vol. 35,No. 8, pp Amoako-Gyampah, K., & Salam, A. F (2003).An extension of the technology acceptance model in an ERP implementation environment.information & Management, 41(6), Al-gahtani, Said S Computer technology adoption in Saudi Arabia: Correlates of perceived innovation attributes. Information Technology for Development 10: Kunda, Douglas, and Laurence Brooks Assessing important factors that support component-based development in developing countries. Information Technology for development 9: Rose, G., & D, Straub Predicating General IT use: Applying TAM to the Arabic world. Journal of Global Information Management, 6(3), Schepers, J., M, Wetzels A meta-analysis of the technology acceptance model: Investigating subjective norm and moderation effects. Information & Management 44: Whittaker, Brenda What went wrong? Unsuccessful information technology projects. Information Management & Computer Security 7 (1):