E-Commerce Analysis: Online Ticket Purchasing

E-Commerce Analysis Online Ticket PurchasingCHAPTER ONE design1.1 INTRODUCTIONThis chapter presents the background of the question study. It starts by providing an over cerebration of Electronic Commerce, guest blessedness and supporter gauge, followed by an offline of the current situation concerning Online Ticket Purchasing in capital of Kuwait. The problem of the study is so defined, high-pitchedlighting the research the study seeks to wonder and its signifi clearce alongside the research objectives, questions and methodology used to achieve these in demand(p) objectives. The research limitations ar then explored and the chapter concludes with an outline of the thesis social system.1.2 OVERVIEWUnprecedented advances in Information Technology in recent decades, alongside evolving business organization environments beat seen the emergence of Electronic Commerce (E-commerce) as a major economic force. With the increasing number of earnings users and rapid ontogeny of ne bothrk technologies, e-commerce is perceive as an essential application of the computer and communication technologies (Manvi and Venkataram, 2005 cited by Zhang and Tang, 2006).As observed by Gunasekaran and Ngai (2005) e-commerce enhances communication channels and fork overs a virtual synergetic environment where the suppliers and clients raise exchange reading and products. Moreover, it improves the communications between lineamentners along the value chain and declargons an integrated business model by which companies can be to a greater extent responsive and flexible to the changing food markets and nodes requirements (Zhang and Tang, 2006). E- commerce because replaces or enhances the traditional market channels by opening weathervane- ground storefronts, which is cognize as business to customer e-commerce. Firms present their products and function on the web and generate revenue from the sales of those products and profits to their customers (Molla an d Licker, 2001). tally to Khalifa and Liu (2003) there has been vast growth of meshwork based returns, twain from internet businesses and from traditional companies growing online renovations. The technology of e-commerce identifies what can be offered to customers, but just customers desex which of those technologies pull up stakes be accepted (Lin, 2003).As Jamal (2004) has argued, in the last forty old age the foreshorten of customer enjoyment has been sensation of the near all important(p) speculative as well as functional issues for close to marketers and customer research. happiness is significant in the success or buy the farmure of any business depending on the carrying into action of the perceived expediency, if the perceived movement is less than customer expectation the customer depart be dissatisfied whereas, if the perceived performance exceeds their expectations then customers will be satisfied. Many researchers agree rejoicing is an view or e valuation that is formed by the customer comparing their pre- leveraging expectations of what they would take in from the product to their subjective sensings of the performance they actually experience (Oliver, 1980).Numerous studies on dish out select and customer ecstasy present helping step and customer satisfaction as conceptually distinct, but closely connect constructs. triumph is defined as the degree of discrepancy between customers normative expectations for the value and their perception of the benefit performance (Parasuraman et al., 1994 Dabholkar, 1996). Different researchers such as Gronroos (1983) and Parasuraman et al. (1985) consider tried to identify frolics of good more related to eccentric assessments. The most common measure reveals ten dimensions of expediency prize tangibles, reliability, responsiveness, communication, credibility, security, competence, courtesy, savvy the customer and access. These were then filtered to 5 dimensions and ba sed on these 5 items a measurement tool for profit tint was devised kn give birth as SERVQUAL (PUT quotation HERE).While Yang (2001) highlighted the rapid growth of online retailing with broadening experiences of consumers online entrepotping, Santos (2003) believes that e- returns superior can increase attractiveness, hit rate, customer retention, stickiness and positive word of mouth. It can also maximize competitive advantages of e-commerce. Numerous researchers have the discussed the dimensions of e-service prime(a) including coxswain and Dale (2001), Madu and Madu (2002), Parasuraman (2002), Yang et al. (2003), Parasuraman et al. (2004) and Lee and Lin (2005), yet online retailers appear to fail cod to poor feeling services provided to their customers. For that reason online service feel is significant for both reasons (1) it persuades customers satisfactions and intentions to shop online and (2) e-service tone plays a major role in attracting potential customers (C ai and Jun, 2003). Zeithaml (2002) points out online companies should focus on all elements of e-service lumber before, during and after the transaction, as e-service quality is the extent to which a website palliates efficient and loadingive shopping, barter for and delivery. 1.2.1 E- improvement Quality and guest SatisfactionCustomer satisfaction is a critical element in the success or failure of any business. Web customer satisfaction has been emphasized as crucial by the rising demand for long-term profitability of dotcom companies and traditional companies that are Net enhanced (Pather, Erwin and Remenyi, 2002). An imageing of the components that influence web customer satisfaction is vital for e-commerce. Satisfaction is a force of an effective evaluation, where well-nigh comparison standard is compared to the actually perceived performance. If the perceived performance is less than expected, customers will be dissatisfied. In contrast, if the perceived performance exceeds expectations, customer will be satisfied (Lin, 2003).A broad inclination of traditional service quality might not be exuberant to build the e-service quality dimension, hence amending several variables is important. Santos (2003) discussed the e-service quality dimensions of, ease of use, web-appearance, linkage, structure and layout, content as the incubative dimensions reliability, efficiency, support, communication, security, and incentive as active dimensions. This paper focuses on achieving a measurement of the service quality of the Jazeera carryways Website as perceived by their passengers, using a conceptual model of e-service quality developed by Santos (2003).1.3 ONLINE TICKETINGElectronic ticketing over the Internet facilitates the secure or reservation of tickets online, by making the process more easily accessible and commodious. Through these services tickets may be corruptd from any location and at any epoch, provided an Internet connection exists. Th e tickets are nineed from a web site that provides both ticket education and the purchasing or reservation service. Internet qualification or online ticketing concentrates on providing a overhaulful and efficient service to clients. Firms who get by perish tickets, performing arts, game tickets, concerts, movies and some(prenominal) early(a) activities have notably embraced the online ticketing system according to Burford (1998).Convenience is a chief(prenominal) advantage of buying tickets via the internet as the service is acquirable at any geographic location, including ones home via laptop and cellular phone and at any judgment of conviction or day. Electronic ticket services have a hike advantage by providing relevant information along with the service. This can help purchasing decisions and may encourage future usage (Burford, 1998). An early(a) feature is that apart from maintenance and data updates, no manpower is necessary to offer the service once it has been e stablished. The process of recording the transactions is more modify and overheads are reduced. An essential point is that ticket providers musical composition providing a convenient service are thereby improving their public image and supporting return customers (Burford, 1998). A number of countries across the globe are already benefiting from electronic ticketing including the U.S.A., Canada, Australia, New Zealand, Great Britain and France. In fact the U.S.A. it has 80% market penetration, while in Europe it is approximately 40% and in the U.S.A. more than $350 million dollars in event tickets were sold online during 2000 increasing to $3.9 billion in 2004 (Bhatia, 2004). 1.3.1 Online renovations and E-Ticketing in KuwaitThe internet is a technology with many properties with the potential to transform the competitive landscape in many industries while at the same time creating completely raw(a) industries (Afuah and Tucci, 2003). The revolution of the internet continues to excel leading to rapid changes in many fields, at an overpower speed. In Kuwait, earlier to 1990 internet usage was express mail to electronic escape and minor services, however in 1992 a decision was made by the Ministry of Communication to facilitate the public data network. In the same course of instruction the National Science Foundation agreed to extend the Internet to Kuwait at a time when it was only available for US institutions and some selected institutions overseas.In recent age with the support of the Kuwaiti government for IT plans, practical steps have been taken in this field with the possibility of stipend for mobiles and traffic tickets via the internet and the sale of online skyways tickets for the archetypal time. These advances indicate the growth and development in the IT field in Kuwait as a whole.In 1943, the oil boom opened a untried chapter in the sophisticated history of Kuwait as The Kuwait Oil Company special(a) (KOC) was put togethered. By 1 947-1948 KOC developed the new Al-Nugra (Al-Mayass) Airport, located in the Nuzha district, operating in daylight only, with airlines opening offices in Kuwait City to handle ticketing and load operations for the Arab expatriate community. By 1954, the Kuwaiti National Airlines Company far-famed the arrival of the outgrowth airplane, which was called Kazma (http//www.da.gov.kw).The worldwide revolution of low-cost carriers (LCCs) started successfully with peace-loving Southwest Airlinesin the United States, which pioneered the concept in 1949. No set back successes which have followed are Irelands Ryanair, which began low-fares operations in 1990, and EasyJet, formed in 1995. These low cost carriers then developed in Asia and Oceania from 2000 led by operators such as Malaysias AirAsia, Indias Air Deccanand Australias Virgin Blue. The low-cost carrier model is applicable worldwide, although deregulated markets are most suited for its rapid spread. In 2006, new LCCs were announce d in Saudi-Arabian Arabia and Mexico (http//www.absoluteastronomy.com).On September 12, 2005 Jazeera Airways owned by Marwan Boodai, Chairman and CEO, announced its first flights were open for booking. Jazeera Airways is the first privately owned airline in the substance East, established in Kuwait. It offers passengers ticketless flights to Dubai, Lebanon, Damascus, Amman and Bahrain via the web, by phone, SMS or through travel agents (www.jazeeraairways.com).Breaking away from out-dated business models by developing a new model tasked with raising operational efficiency requires incorporating the latest revenue watchfulness procedures into the familiarity and installing defer-of-the-art technologies. This will ultimately enable travelers to constitute more independent in their bookings and standment. With tickets sold through a website as the main dispersion channel, online booking is a very efficient distribution method for airlines. It reduces the number of back office st aff and reduces the payment cycle. Jazeera Airways has worked ponderous to entice travelers to book through its website by making it the cheapest method to purchase tickets. Many promotional offers made by the company are available only to travelers who book online, therefore Jazeera Airways strategy is rewarding travelers who book online (www.jazerraairways.com)1.4 hassle DEFINITIONUnderstanding customers requirements is vital to any business enterprise in order for it to remain competitive. Customer satisfaction is of great interest since it has a direct effect on customer retention, loyalty and the prospect of new customers. Retention is a major challenge, as customers can easily switch from one service provider to another considering the internet can facilitate easy access to a wide variety of choices with lesser cost. getting new customers may involve significant cost on the part of the company in terms of marketing, advertising and promotion. Hence it is important to unders tand the determinants of customer satisfaction and assess the current experience of the customer in order to improve services.Customer satisfaction is a major issue of Jazeera Airways and good online service quality is a key factor that will determine in the long term, whether it will succeed or fail in retaining existing customers and attracting new ones. Due to rapid technological advancements in the marketplace Jazeera Airways maintains a close affinity with their customers, as their expectations and perceptions of online service quality may change.This research will therefore be conducted on Jazeera Airways, the first low cost airline in Kuwait. Jazeera Airways offers online ticketing in its website as the main distribution channel. Therefore it is important to take into account the quality of its website and to pay more attention to customer evaluation of the service given. Customers want to assume their own bookings in their own time without depending on middlemen as a resul t it is necessary that online service quality determinants lead to satisfaction. Dissatisfied travelers may perceive one of the followingWeb sites do not come along to have many of the very basic features that experts consider important in forming relationship with customers.Service providers undervalue the attributes that customers use to judge service quality that should be monitored and enhanced to help the service performance.There are other variables of the online service quality that affect the overall travelers satisfaction.Therefore this research aims to deal out such problematic issues by researching the relevant factors including current opinion of the airline users.1.5 RESEARCH OBJECTIVESAs this research study aims to examine the customer satisfaction of the service of Jazeera Airways in online ticketing through the quality delivered through its website, its main objectives are as followsTo assess the perception of each service of Jazeeras e-service Quality dimensions.T o appreciate consumer satisfaction towards e-service quality for online service quality within Jazeera.To determine the important dimensions leading to satisfaction when purchasing online tickets within Jazeera.1.6 RESEARCH QUESTIONSIn order to fulfill the objectives of this study, the following questions need to be addressedWhat key incubative dimensions do online customers perceive as important for their e-service quality?What key active dimensions do online customers perceive as important for their e-service quality?What are the most influential online service quality dimensions of the website as perceived by respondents with a high take of customers satisfaction in the Jazeera Airways website?What are the most influential online service quality dimensions of Jazeera Airways contributing to customer satisfaction when examining the Jazeera Airways website?Are the different socio-demographic variables affect perceiving e-service quality and satisfaction in the same way or diffe rently?1.7 Research MethodologyThis research is considered deductive, quantitative, descriptive, explanatory, and exploratory to some extent symbol of study. The research follows the survey strategy memory access and consists of 67 questions make up of a two page questionnaire distributed to the target sample in Kuwait. Data was equanimous using Arabic and English questionnaires, from a sample size of X passengers who booked online through Jazeeras website. The questionnaire consists of four sections (A, B, C, D). arm A solicits demographic information. Section B evaluates Jazeeras Airways e-service quality using an adapted Santos (2003) model. Section C measures the level of customer satisfaction. Statements of Section B and C are scaled using a Likert type scale from 1 to 5. Section D collects information added by customers that will add value to the research.1.8 RESEARCH LIMITATIONSThroughout this research conducted in Kuwait regarding Jazeera Airways website service quality a number of limitations were observe as followsThe thesis investigates the customer satisfaction of Jazeeras Airways website service quality and does not accept the companys perspective/point of view therefore the study is limited in its scope to customers and not employees or managers.The study does not include product quality, wrong, situational factors, individualal factors, and other services provided by Jazeera Airways.Using a quantitative approach only towards addressing the research problems, a qualitative approach is lacking.The research scope is limited as it assesses Jazeera online service e-ticketing excluding airport customer services such as check in, luggage, lounge and on board services.There is limited relevant literature concerning service quality in the airline industry in Kuwait and the region, therefore there are no previous findings or frameworks to consult.1.9 THESIS STRUCTUREThis study is composed of five main chapters.Chapter One presents the background details of the selected research commonwealth and the experience in Kuwait, followed by the problem definition, the research objectives and questions, the methodology, the studys limitations and the thesis structure.Chapter two discusses related theories, concepts and models providing a comprehensive reexamine and an insight into the subject playing area as a whole, followed by an explanation of the research to the country of Kuwait.Chapter iii describes the methodology, research design and techniques used in the collection and analysis of the data.Chapter quaternity presents the gathered data, their interpretation and analysis.Chapter Five looks at the findings, assessing whether they satisfy the research questions and objectives to stupefy conclusions from the results. Based on these conclusions, recommendations for management are provided with further suggestions for future research.CHAPTER two LITERATURE REVIEW2.1 INTRODUCTIONIn this chapter a comprehensive review of av ailable related literature is made concerning website service quality and customer satisfaction. In the process various concepts, models and theories covering customer satisfaction, determinants of customer satisfaction, the relationship between online service quality and satisfaction and online service quality dimensions are presented and explored to give the study a wide ranging theoretical basis. In accession the relevance of the research to the country of Kuwait is also addressed.2.2 CUSTOMER enjoyment2.2.1 Definition of Customer SatisfactionOliver (1980) explains satisfaction as the summary of a mental state resulting when the emotion surrounding disconfirmed expectations is coupled with a consumers preceding feelings about the consumer experience. In other words, satisfaction is an attitude or judgment that is created by the customer comparing their pre-purchase expectations of what they would receive from the product or service to their subjective perceptions of the perf ormance they actually did receive. Customer satisfaction has become a key intermediary objective in service operations, because of the benefits it conveys to organizations (Ranaweera and Prabhu, 2003).The importance of customer satisfaction results from the generally accepted philosophy that for a business to be successful and profitable, it must satisfy customers (Shin and Elliott, 2001). While many authors have exposit satisfaction using various definitions, disconcert 2.1 presents a few luminary explanations of customer satisfaction.Table 2.1 Definition of Customer SatisfactionDefinition occasionCustomer satisfaction is a collective outcome of perception, evaluation and psychological reactions to the consumption experience with a product/service.Yi (1990)Satisfaction is function of consumers dogma that he or she was treated fairly.Hunt (1991)Satisfaction is a persons feelings of pleasance or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectation.Kotler et al. (2000) mention Research basedFrom the above table we understand that satisfaction is the consumers evaluation of the product and service that meet their needfully and expectations. According to Parker and Mathews (2001) there are two main interpretations of satisfaction satisfaction as a process and satisfaction as an outcome. Whereas Gustafsson (2005) argues satisfaction has a strong positive effect on customer loyalty intentions across a wide range of product and service categories.2.2.2 Determinants of Customer SatisfactionZeithaml et al. (2005) argued that satisfaction, as shown in 2.1, is influenced by service quality perception, product quality, and set as well as situational and personal factors. Economists differentiate between two categories of properties of consumer products search qualities and experience qualities. With search qualities consumers determine before purchasing a product like color, style, price, fit, fe el, hardness and smell. Experience qualities, are hard to determine as a result it can be evaluated after the purchase and until the service is received like vacations and restaurant meals (Zeithaml et al., 2005).Keaveney (1995)ppp.jpg point out that a main reason leading to customers switching services is price, as customers, based on prior experience with the service provider, sometimes felt cheated and believed that price increases were unfair or even deceptive. According to (Zeithaml et al., 2005) comparing the price congeneric to value and state, research reveals that customers of services will make trade-offs among different service features such as price level versus quality.A number of customers, for example, view price as an important element for their satisfaction more than quality. comprehend service quality is only one factor of customer satisfaction (Zeithaml et al., 2005). Consequently to achieve a high level of customer satisfaction, most researchers suggest that a high level of service quality should be delivered by the service provider as service quality is unremarkably considered an antecedent of customer satisfaction (Cronin et al. 2000). Zeithaml et al. (2005) described a consumers emotional state as a personal factor. Satisfaction will vary due to customers biographical characteristics such as age, gender, education, ethnicity and income (Gilbert and Veloutsou, 2006Van Pham and Simpson, 2006). Customers take partial state for outcomes and describe those negative feelings that influence how a consumer responds to services, causing a person to overreact negatively to the slightest problem (Zeithaml et al., 2005). Situational factors can notably influence purchase decisions such as social environment, physical environment of the purchase place, time influence and the previous states (Vysekalov, 2004 Nagyov, 2001).2.3 The Evidence of Service (3Ps)Services are impalpable therefore customers are searching for evidence of service in every in teraction they have with the organization. The three major factors of service experienced by customers are people, process, and physical evidence. Together these elements are considered as an evidence of the service. all(prenominal) evidence or subset is present in each service 2.2. Firms should fundamentally manage the service quality that will lead to satisfying their customers (Bitner, 1993).2.4 answer QUALITYNumerous researchers have defined service quality their own ways, including Bitner, Booms and Mohr (1994) who described service quality as the consumers overall impression of the sexual congress inferiority / superiority of the organization and its services. Perceived service quality is only one component of customer satisfaction (Zeithaml et al., 2005). According to Parasuraman et al. (1994) service quality is defined as, the degree of discrepancy between customers normative expectations for the service and their perception of the service performance. Gronroos (1982) sta ted that total service quality is customers perception of dissimilitude between expected service and perceived service.Afterward in 1984, he then explained service quality of the service encounter as two different dimensions one is technical or output quality and the other functional or process quality. Therefore, service quality has become a well-liked area of academic investigation, recognized as a major factor in differentiating service products and gaining competitive advantage (Zeithaml et al., 1996).Table 2.2 presents the concept of service quality from varied authors viewpoints who combined suggest we can understand that impact the need and requirements and achieving customers expectations depends on delivering the best level of service quality. Notably with time, service quality takes place before and leads to overall customer satisfactionTable 2.2 Definition of Customer SatisfactionDefinitionAuthorService quality as the subjective comparison that customers make between th e quality of the service that they want to receive and what they actually get.Gefan (2002)Service quality can be defined as the difference between customers expectations for service performance prior to the service encounter and their perceptions of the service received.Asubonteng et al. (1996)Service quality is set by the differences between customers expectations of services providers performance and their evaluation of the services they received.Parasuraman et al. (1985,1988)Source Research basedGilbert and Veloutsou (2006) determined different approaches to measure customer satisfaction, varying between measurement expectations relative to perception or measuring the performance aspect only, without relating it to the desired level of service. Service quality has been found to be an important scuttlebutt to customers satisfaction (Caruana, 2002).2.4.2 Dimensions of Service QualityService quality has been the focus of increased study in recent years as many researchers have tri ed to reveal features of services that importantly relate to quality evaluation in traditional service environments.In 2001 Brady and Cronin presented a model consisting of interaction quality, physical environment quality, and outcome quality. These dimensions immerse on, among others, the work of Gronroos (1982) and Rust and Oliver (1994) who suggest that exploring both what is delivered (Gronroos technical quality) and how it is delivered (Gronroos functional quality) are important aspects of service quality.Table 2.3 Dimensions of Service QualityQualitydemandDescriptionReliabilityReliabilityConsistency of service/ dependability, i.e. the ability to provide the service on time, accurately and dependablyResponsivenessResponsivenessWillingness/ deftness of employees, i.e. the ability to deal effectively with complaints and promptness of servicesAssurancebelievabilityThe extent to which the service is believed and trusted involves honesty, trustworthiness and believabilityCourtesyT he politeness, respect, rumination and friendliness shown to the customers by the middleman personnelSecurityThe freedom from danger, stake and doubtCompetenceThe possession of staff of the necessary skill, knowledge and information to perform the service effectivelyEmpathyAccessThe ease of approachability and contactCommunicationListening to customer and keeping them informed about the serviceUnderstanding the customerTrying to understand the customers needs and specific requirementsTangiblesTangibles carriage of personnel and condition of equipmentSource Parasuraman et al. (1985) Ghobadian et al. (1994) Curry and Herbert (1998)A most wide used and accepted study done on service quality is by Parasuraman et al. (1985). Having developed ten dimensions through focus group studies tangibles, reliability, responsiveness, communication, credibility, security, competence, courtesy, savvy the customer, and access.These ten dimensions were then filtered and extracted to five tangibles, reliability, responsibility, assurance, and empathy, which constitute the basis of a international measurement for service quality, SERVQUAL (Parasuraman et al., 1988). Based on these five dimensions researchers presented a 22-item service quality scale and on an operational level service quality research has been dominated by the SERVQUAL (Parasuraman et al., 1985 Curry and Herbert, 1998). Table 2.3 presents a definition of the service quality dimensions.2.4.3 Relationship between Customer Satisfaction and Service QualityService quality has been found to be an important input to customer satisfaction (Caruana and Malta, 2002). Cronin and Taylor (1992) examined the causal relationships between service quality, customer satisfaction, and purchase intention. The results suggested that service quality was an antecedent of consumer satisfaction, service quality had less effect on purchase intentions than did consumer satisfaction, and consumer satisfaction had a significant effect on purchase intentions. Customer satisfaction had a stronger effect on behavioral intentions than service quality did (Dabholkar et al., 2000). As a process in time, service quality takes place before, and leads to overall customer satisfaction. Customers loyalty was affected by product quality, service quality, and retailer image. They also suggested that quality of product and service is now related to customer satisfaction, and then leads to the loyalty of the customer (Cner and Gngr, 2002). Based on empirical findings in service quality and satisfaction literature, service quality is one of the antecedents of satisfaction (Anderson and Sullivan, 1993 Cronin and Taylor, 1992), and loyalty is one of the consequences of satisfaction. Luarn and Lin (2004) indicated that not only customer satisfaction and perceived value directly affected customer loyalty, but also indirectly affected customer loyalty through commitment.2.5 THE ROLE OF TECHNOLOGY IN SERVING CUSTOMERSAccording to Para suraman (2000), delivering excellent customer service is vital in case customers have to serve themselves by technology-based systems. With quick penetration of technology-based customer-company interfaces such as online banking and e-commerce, employee-delivered service is being replaced by self-service, reducing the need for face-to-face encounters between customers and company personnel. However, this fundamental shift does not mean that companies can afford to disregard customer service. Development of self-service technologies need to emphasize customer service to ensure the customer-technology interface is user-friendly, putting in place an excellent customer-service al-Qaeda (including properly tr