UNIVERSITY OF HUDDERSFIELD

The Effect of Online

Trust on E-Travel
Agents & High Street
Travel Agents
Undergraduate Dissertation
Usaamah Mansur
BA (Hons) Business Studies (Full-Time) 2010
Contents
ACKNOWLEDGEMENTS................................................................................................................4
ABSTRACT.....................................................................................................................................5
1. Introduction.............................................................................................................................6
2. Literature Review.....................................................................................................................8
2.1 Early Days of E-Commerce..................................................................................................8
2.2 Why Shop Online................................................................................................................9
2.3 The Role of Online Trust...................................................................................................11
2.4 Factors affecting E-Travel shopping..................................................................................17
3. Methodology..........................................................................................................................22
3.1 Secondary Research.........................................................................................................22
3.2 Primary Research..............................................................................................................23
3.2.1 Choice of Questionnaire............................................................................................24
3.2.2 Sample.......................................................................................................................26
3.2.3 Pilot Questionnaire....................................................................................................27
3.2.4 Questionnaire Creation & Distribution......................................................................28
3.2.5 Questionnaire Design................................................................................................30
3.2.6 Questionnaire Ethics..................................................................................................31
3.2.7 Questionnaire............................................................................................................32
3.2.8 Analysing Data...........................................................................................................34
4.0 Research Results & Analysis.................................................................................................35
4.1 Results from Questionnaire..............................................................................................35
4.1.1 Genders & Age Ranges of Respondents....................................................................35
4.1.2 Analysis of Marital Status..........................................................................................36
4.1.3 Analysis of Income Levels..........................................................................................37
4.1.4 Analysis of Internet Usage.........................................................................................39
4.1.5 Views of Online Travel Agent Trust...........................................................................39
4.1.6 Medium of Previous Purchase...................................................................................40
4.1.7 Travel Purchase Trends.............................................................................................40
4.1.8 Online Purchase Trends.............................................................................................41
4.1.9 Checking for Security and Reviews............................................................................42
4.1.10 Factors Influencing Purchases.................................................................................43

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 4.1.11 High Street or Online...............................................................................................44
5.0 Discussion & Recommendations..........................................................................................45
6.0 Conclusions..........................................................................................................................48
REFERENCES...............................................................................................................................49
APPENDIX A – QUESTIONNAIRE DESIGN....................................................................................51
APPENDIX B – RESPONSE DATA..................................................................................................58
APPENDIX C – RESPONSE SUMMARY.........................................................................................65

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ACKNOWLEDGEMENTS

I would like to take this opportunity to express my gratitude and appreciation of all my
friends and family who gave me immense motivation, support and encouragement
throughout the length of this project.

I would also like to thank the people and organisations involved in helping me gain
respondents for my questionnaire for the immensely valuable data that was required
for the study.

Thank You

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ABSTRACT

This study is looks at the online travel industry and how it is affecting the traditional
high street travel agents. Primarily I look at how trust is affecting the online travel
agents against the high street agents. Previous research into consumer buying
behaviour and trust is looked into as well as how the online environment is forcing
changes to the offline presence of such industries. Primary research is carried out to
assess the buying habits of consumers and what makes them purchase travel online or
from the high street. The findings of both researches are discussed and
recommendations are made. Conclusions are finally drawn up to evaluate how trust is
affecting the online travel industry against traditional high street travel agents.

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1. Introduction

In this Dissertation I will be looking at the online travel industry. More specifically I will
look at the trust consumers place in making their travel arrangements in an online
environment and how it affects traditional high street travel agents.

It can be argued that the more trust people have in the online environment the more
likely they are to buy online whilst there can be people that don’t want to change from
what medium they use to buy their travel and would prefer to staying loyal to their
high street travel agents.

I have thus designed the following hypothesis;

H1 - “Increased consumer trust to the online environment positively affects online

travel purchases against high street travel purchases.”

The following is a null hypothesis;

nH - “Increased consumer trust to the online environment has NO affect on online

travel purchases against high street travel purchases”

In order to prove either of these hypotheses it is important to strictly assess the

relevant factors. As a basis I will start by looking at the history of the travel industry
and how the online environment has affected it over the years.

The history of online purchases will also be looked at to give me a foundation of how
this method of sales begun and to what extent it is successful and what the future
holds for it. This background information will be analysed in the literature review
which will also give the whole research project credibility and would link it in with
research carried out by others in this area.

In order to fully meet my aims it is important that I fully explain my results that I gather
from my research. The research gathered will be analysed in a number of ways,

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specifically the primary research will be analysed using statistical analysis such as cross
tabulation, comparing responses of one question to another.

The entire analysis will lead onto discussion highlighting the entire procedure and
would help make changes in future research. Finally after analysis and discussion a
conclusion will emerge answering the proposed question ‘Does online consumer trust
affect E-Travel agents against high street travel providers.

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2. Literature Review

2.1 Early Days of E-Commerce

Roos,D (2008) from “How stuff works” in his article “The history of e-Commerce”
explains how internet shopping started. Ross explains how in 1990 a researcher named
“Tim Berners-Lee” invented the World Wide Web with the development of hypertext
based information that could be accessed by users using a browser. In 1994
“Netscape” launched a browser that included a security protocol which is still in use
today to securely encrypt personal details over the internet, known as Secure Socket
Layer (SSL). Around the same time in 1994 and 1995 third party services to process
credit card services started to appear as Keith Lamond (1996) describes in his article
“Credit Card Transactions – Real World & Online”. Roos, D goes onto further describe
how in July 1995 Jeff Bezos founder of Amazon.com dispatched his first ever order. The
Amazon website states how within 30 days of dispatching the first book they were
selling to consumers in all 50 US states and 45 countries around the world. Since then
Amazon has been expanding very rapidly and the days of operating from his garden
shed are long gone for Jeff Bezos.

Around the same time in 1995, Pierre Omidyar coded a simple website which he called
Auction Web (known today as eBay). According to eBay the first item that he listed was
a broken laser pointer, and within a day it had reached $14.83. EBay meant that you
didn’t have to be an entrepreneur or an existing business to sell things online. In 1996
eBay had two full time employees and sold $7.2 million worth of goods and within ten
years by 2007 eBay had 13,000 employees and sold goods worth over $52 billion in
auctions. (Ross, D 2008)

The introduction of the internet and the start of the e-commerce concept became
popular over the years with different industries buying into the concept including,
transport industries and major travel and tour operators.

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2.2 Why Shop Online

Bosnjak et al (2007) discuss in their study, “Personality determinants of online

shopping: Explaining online purchase intentions using a hierarchical approach” how
there are a number of ways in which purchasing intentions are determined in the
online environment. They look at the study carried out by Pachauri (2002), who
broadly categorises four approaches to the task of identifying determinants of online
shopping behaviour. One of the main reasons that we use the internet as a mode of
shopping as it allows us to make our purchases quickly and efficiently without the
hassle of physically going out to the high street and looking for the best deal, this is
reinforced in Pachauri’s first category, the economics of information approach, this
category looks at the efficiency of buying online. Specifically this category looks at the
value of time, the time it takes one to find what they are looking for at the lowest
possible price.

The cognitive costs approach looks at how consumers categorise their decisions in
relation to price and quality of products whilst also looking at the reliability and
credibility of the online merchant. This approach is particularly important to my study
as it touches on what induces trust of an online merchant onto a consumer. Because
the internet is an open medium, it allows people to express their views on levels of
service and satisfaction from different product providers.

The next approach, lifestyle approach looks at the way of life, and in general socio-
demographic characteristics of potential customers. Finally Pachauri looks at the
contextual influence approach; this is where a consumer is recommended to a product
or merchant and those consumers that have not been recommended. Again this could
be an influencing factor in the trust that people put into buying online.

A study by Farag et al (2007) talks about how the internet has become an indispensible
tool in the western society and how many people use it as a tool in their working and
private lives. The authors mention how the popularity search for product information
and buy goods online is increasing. The internet is seen as a quick and easy method to
compare different types of products. The authors in this study talk about the

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relationships between e-shopping and in-store shopping. They mention the work of
Ward and Morganosky (2002) who find in their research that people use the internet
as a means to start their shopping process. They search the internet for information
about the product and then go into a store to buy it. Other relationships between the
two modes of shopping are that as before the consumer gets information about the
product and then goes in to a store to have a physical look at it but then finally comes
back to the internet to buy it online. Farag et al (2007) carry out a study to find out
what makes people shop online and what makes them shop in store. They find that
those people with a positive e-shopping attitude would tend to buy online whilst those
with a high speed internet connection and negative e-shopping attitude would search
online but go into a store to buy the product. These findings were somewhat
consistent with Ward and Morganosky (2002).

Monsuwe et al (2004) carry out a literature review assessing what drives consumers to
shop online. They mention how over the years the use of the internet to shop for
consumer goods and services is steadily growing. The authors talk about how research
has put consumer online shopping motivations in two dimensions. These are either
utilitarian or hedonic dimensions. Usefulness and ease of use reflect utilitarian aspects
of online shopping whilst enjoyment is seen as a hedonic aspect.

Monsuwe et al (2004) cite the work of Davis (1989, 1993) who defines usefulness as an
individual’s perception that advancement in technologies will enhance or improve
their individual performance. Ease of use is described as a perception that the internet
is a medium which involves minimum effort. Focusing on the hedonic dimension of
online shopping motivation, enjoyment is seen as the fun and playfulness of the
shopping experience differing to the shopping task itself. There are also other external
factors that influence why people shop online. These include situational factors,
product characteristics, previous online experiences and the overall trust in online
shopping.

The authors touch on the topic of why people don’t shop online by mentioning lack of
trust in the medium. They describe this mode of shopping as a challenge for many

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people, as the internet is a relatively new shopping medium and most consumers don’t
have much experience and thus there is the lack of trust.

2.3 The Role of Online Trust

Trust is a factor that a consumer places into someone before parting with any of their
own personal details or belongings. With trust being present an element of association
is built up between two parties.

Mayer et al, (1995) give a very good definition of trust as;

... the willingness of a party to be vulnerable to the actions of another party based on the expectation
that the other will perform a particular action important to the trustor, irrespective of the ability to
monitor or control that other party (Mayer et al., 1995, p. 712).

In a study by Wen (2009), the author cites a definition of trust by Schurr & Ozanne,
(1985) who explain it as;

... the belief that a party’s word or promise is reliable and that the party will fulfil his/her obligation in
an exchange relationship (Schurr & Ozanne., 1985)

It is important to know what influence trust has on consumers when making a decision
to buy online. In a study by Ferrin, D et al (2008), the authors’ look at how trust and
risk affect a consumers buying decision, to do this they develop a theoretical
framework that describes the trust based decision making process a consumer uses
when making a purchase online. This framework is then tested by collecting data via a
web survey. The results they gather show a strong impact of trust and risk on
purchasing decisions. The results show that consumers trust directly and indirectly
affect their purchasing intention. Ferrin et al talk about how “past research has
recognised the fact that electronic purchase decisions are inherently risky.”
Martin. SS, and Camarero. C (2008) describe consumer trust in the online environment
as the willingness of the consumer to be exposed to a particular company and believe
that the firm would fulfil their promises without using the exposure of the client for
their own benefit. This supports the definitions above of what trust is in general.
Martin and Camarero talk about how there are a number of factors that contribute to
reducing perceived risk, creating consumer trust and helping the consumer evaluation

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of products. The authors in their research suggest a model that reflects the role played
by website characteristics and the previous level of satisfaction as determinant factors
of trust in any website. They further go on to explore the moderating effects of
consumers’ motives and inhibitors to purchase online. In their findings from a
questionnaire that was distributed amongst online shoppers and internet users, the
authors find that there a number of factors that have a direct influence on trust such
as security and privacy policies, service quality and warranties. At the same time the
quality of a website may have an indirect influence on consumer satisfaction. The
more outstanding factor of building trust for an online firm is the fact that consumers
have been satisfied with previous purchases. The authors conclude in agreement that
even though satisfaction from previous purchases is the main antecedent of online
trust, web firms can still generate trust by offering good service, fulfilling their security
and privacy promises and selling through a well designed and good looking website.

Wen. I (2009) in his work “Factors affecting the online travel buying decision” reviews
different literature about theories that affect online consumer purchase intention of
travel products. Wen describes how in many studies it has been shown that trust is the
most “effective uncertainty reduction method in e-commerce” playing a critical role in
areas where consumers are buying and looking for high quality goods or services. Wen
further goes onto explore literature by Fam et al (2004) regarding trust in online travel
purchasing, describing basic factors including, “calculation, predictability,
intentionality, capability, transference, tangibilization and interactivity”. Wen also
describes how Fam et al mention how industry operators and customers show
significant discrepancies on these criteria of trust.  Wen suggests future research
should identify a more complete list of building trust in e-commerce. Wen similar to
Martin and Camarero (2008) also talks about other factors that influence consumers,
including quality of web site design, quality of systems as well as information quality.
In an IT paper titled “Designs for effective implementation of trust assurances in
Internet Stores” the authors Kim. D and Benbasat. I (2010) describe how assurances
can be given in different ways, examples include third party credentialing, merchant
guarantees, and security features. One way that the authors feel trustworthiness as

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part of online stores can be “established is to provide trusts assurances on a store’s
web site”. Trust assurances can be given by the online store itself via a statement or by
a third party assurance. The authors describe how in many previous studies it has been
reported that the display of trust assurances increases the trustworthiness of an
internet store. Amongst third party assurances there are a number of trust marks such
as TRUSTe and BBBOnLine seals, and positively influence the favourableness of a
stores privacy policy. Other factors such as security features were deemed more
important than third party assurances for consumer decisions to buy on the internet.
Kim and Benbasat conclude recommending that internet stores should provide
assurances to consumers about their key potential concerns.

Chen and Barnes (2007) study how consumers develop their initial trust and what
influences purchase intentions in the online environment. The authors look at the
work of Gefen, (2000) who suggests people don’t buy through the internet because of
online security and policy doubts. This is an indication that consumers don’t trust the
security of their personal information when shopping online. Chen and Barnes (2007)
mention how a high element of trust doesn’t just help stimulate and meet a
customer’s “high expectations of satisfying transactions but also diminishes
uncertainty, perceived risks and interdependencies in most online transactions”
(McKnight and Chervany, 2001; Pavlou, 2003 cited by Chen and Barnes, 2007). It is
therefore very important for companies to gain increased trust from their customers
to make sure they easily retain them.

Hoffman et al (1999) describe how consumers don’t trust web providers enough to
participate in “relationship exchanges” involving money and personal information. This
lack of trust is derived from the limited control consumers have over access of their
personal information by online companies. Hoffman et al find that consumers want
total control over demographic information that web sites gather. This study is over 10
years old now and recently there have been dramatic changes in the amount of
information people leave online without giving second thoughts. Social networking
sites have become ever increasingly popular and the personal information contained

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on them can be more at risk of being used by some individuals for unlawful reasons.
The amount of information held by search engines helps them build up profiles of
users and thus making it very valuable to many institutions.

Lin and Sun (2009) talk about factors that influence satisfaction and loyalty in online
shopping. They carry out a study and find that there is a strong influence on customer
e-satisfaction and e-loyalty from technology acceptance factors. Again similar to the
studies mentioned before the Lin and Sun (2009) suggest that to gain customer
satisfaction and loyalty it is necessary to give consumers the power to save time and
effort and by making their shopping experience more efficient. By offering different
features such as order tracking systems customers should get a positive perception of
usefulness and not be irritated. The authors put emphasis on the fact that the site
should be designed in a way it is understandable to the consumer and easy to navigate
through. These are just a few factors that the author describes that induce consumer
satisfaction and loyalty to an online business. It is therefore important companies
design their sites in such a manner that customers sense a feel of belonging and
eventually are satisfied and become loyal to the company.

Grabna (2002) also talks about the importance of consumer trust in online shopping.
The author mentions how due to the immense amount of competition I the online
environment consumers are overhauled with similar products and services, making it
ever more difficult to make a decision. Grabna describes trust as a mental shortcut that
consumers take to reduce the “complexity of human conduct in situations where
people have to cope with uncertainty” (Luhmann, 1989. Cited by Grabna, 2002).

Grabna also talks about strategies that companies can use to obtain and maintain
consumer trust in the online environment. They mention how an effective online
navigation system with a well-known brand is enough to gain consumer trust. The
presentation of a site and the sophistication of technology also contribute to gaining
consumer trust. Other methods to gain trust include guarantee policies which give the
consumer a sense of safety in case of problems that could be due to damage or faulty
products or service.

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Grabna concludes her study by stressing the importance of trust in the online
environment and how it will always remain the decisive factor for the success or failure
of an internet business. It is therefore recommended that companies work in ways
that achieve and maintain consumer trust.

The risk of shopping online is a common factor that affects consumers and thus it is
important to ask weather or nor the building of trust can overcome this perception of
risk. In a study by Harridge-March (2006) this is looked into in detail. The author
mentions how Cases (2002) argues the fact that perceived risk prevents consumers
from purchasing online. The author mentions how negative effects of risk can be
reduced by the positive effect built up by consumer trust. Risk can be seen as the level
of uncertainty one may have when making a decision. The greater level of uncertainty
the more risky it is and the less likely one is to take up the risk. Harridge supports this
by saying “risk implies that there is some degree of uncertainty about the outcome of
an action which carries the possibility of physical harm or some other damage”. By
other damage, in the online environment this could mean the theft of a consumer’s
identity if personal details were to end up in the wrong place. Some people may see
risk as greater in some situations than in others and levels also vary for each individual.
Harridge cites Stone and Gronhaug (1993) who put risk in a simple way “a very
personal thing, related to specific circumstances”

As mentioned before there is a lack of control for consumers when giving out their
personal information, Harridge (2006) mentions how data is passed onto unknown
trading partners and has the potential for opportunism. Those customers that feel that
their information will be used by companies for their own benefit would refrain from
making online purchases at all. Normal online transaction would require consumers to
give personal information such as address, telephone numbers and payment details;
this can cause concern to consumer fearing the risk of losing money or being prone to
fraud.

The study further discusses how the levels of perceived risk vary and if a consumer
does not see any risk in shopping online but does have variances in trust from

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company to company then it is easy for them to change loyalty to those companies
that they trust.

A study by Jarvenpaa (2000) looks at the role of consumer trust in an Internet store.
The authors give emphasis on the importance of trust and how it is a critical factor in
any relationship where a consumer doesn’t have any control over the actions of a
merchant or online store. For a consumer the decision could be very important but the
environment could be vague. The authors argue how security has been the biggest
barrier to a mass consumer market on the internet. This study is nearly 10 years old
and over the years there has been a very big uptake of online shopping and what we
see today is that there are people that have overcome this security barrier and feel
safe to shop online. The study does however try to answer what influences consumer
trust to online stores, the authors mention the notion of giving consumers a perceived
size of the store as well as giving a positive perception of reputation.

In another study by Tang et al (2008) the authors mention the importance of trust in
the online marketplace as it helps to transfer sensitive customer information to the
online retailers. The authors explain how the increases in technology allow companies
to track site browsing behaviour, purchase history and other consumer information.
Most online retailers are seen as risky and thus not trusted because there is
uncertainty about the actions a retailer would take with customer information. The
authors give the example that security breaches occur due to inadequate data
protection or internal controls. Companies may be using the data that they collect for
uses other than the purpose it was collected for. This leads to consumers being
concerned about their privacy and having less trust in companies. These concerns can
be overcome by companies by being affiliated with seal-of-approval programs. By
joining a seal-of-approval program companies can display the logo of the trusted third
party on their sites and hope that it would generate increased trust to the company.

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The authors above all prove the importance of trust between consumers and the e-
shop and how trust makes consumers feel that they are at no risk of any opportunistic
behaviour from the organisation they are dealing with. Online trust is a key factor to
influencing whether or not somebody buys from a particular online store.

2.4 Factors affecting E-Travel shopping

There can be a number of factors that influence consumers to buy online. More
specific to my research it is necessary to look at factors that affect consumers when
shopping for travel online.

There is evidence that the online travel industry is growing as mentioned by Nuttall
(2003) in his Financial Times article. The author mentions how results show the online
travel agents are doing better than their high street rivals. The author quotes the chief-
executive of lastminute.com, Brent Hoberman, who sees the internet as the future of
travel purchasing. He mentions how online agents will make consumers happy as well
as making better margins by decommoditising their products.

Beldona et al (2004) have carried out an analysis on “online shopping motivation and
pleasure travel products”. They look at the motivations of pleasure travel components
of low and high complexity in the online environment. They cite from Starkov and Price
(2003) who state that convenience ability to compare prices and lower prices were
three main reasons why Internet users buy travel products online. Beldona et al
describe how flights, accommodation and car rentals can be classified as low
complexity products. They describe the higher complexity products as tour packages,
cruises and land-based vacations. The motivation to shop online for travel products
has increased over the years as technologies have allowed consumers to book at a
convenient time to themselves with minimal wastage of time along with rich amounts
of information about the product. For example there are specialist websites that allow
consumers to make all their travel purchases from one site, companies such as Expedia
and Travelocity offer a one-stop shop for accommodation, flights and car hire.

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Beldona et al conclude their analysis by stating that there are distinct differences in
shopping motivations between travel products of low and high complexity. They also
conclude that there is a variation of online shopping motivation depending on the user
skill levels. From their findings the authors state how flights and car rentals had greater
transactional qualities and the key drivers being low prices and familiarity. However
consumers gave importance to the informational aspects in high complex products
such as tours, activities and events. The ease of use and the detail of information was a
key driver for purchase for consumers in these types of products. Wu and Chang,
(2005) support this argument by saying “online tourism is an information intensive
industry”. They argue that the internet provides consumers with convenience as well
as efficiency allowing them to obtain flexible rates and save time. The online
environment also gives consumers the advantage of not having to be involved in
awkward negotiations when making fight or accommodation arrangements.

Wu and Chang, (2005) also mention the importance of trust in online companies for
consumers; they state that the lack of trust is the main reason why consumers don’t
shop online.

We see from this study that trust is not always the most obvious factor that influences
a consumer’s decision to buy. The study mentions the importance of the quality of
information and how it influences consumer buying decision. Similarly in a study by
Smith (2004) the author cites the work of Evans and Wurster (1997) who reinforces
Beldona et al (2004) findings by arguing that there is a great influence on purchasing
decisions at all levels due to the availability of information. They further go onto
mention as the information becomes more and more universal change of strategic
plans is necessary for businesses. This shows that as more and more people are using
the same information to gain customers, it increasingly becomes necessary for
companies to implement new strategies to gain a competitive advantage.
The increase in online travel sites can also be seen as risky to consumers, with so many
sites offering similar offers and services it can be difficult for consumers to choose
which ones are genuine and which aren’t.

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Smith (2004) describes in his study how consumers are inundated with information
about tailored deals in different forms such as pop-up advertisements, banner
advertisements and even general searching of the web. These promises of rock bottom
fares are offered by travel web-sites who are mostly third-party brokers dealing with
cheap airline fares and providing minimum levels of service and minimal value-added
activities. Sites such as these are continually growing but as mentioned by Smith,
consumers still demand answers as to how these companies survive by providing
discounted rates in the long term whilst travel agents simply cannot afford to do so. I
feel that this is a very common question that needs to be addressed by online travel
providers, by this I mean placing trust between the online company and its consumers
by ensuring trust through other means. Smith (2004), mentions how consumers
question whether these online companies are in the industry to stay or will abscond
after a while.

Traditionally people would consult their requirements with high street travel agents
who would take into consideration all requirements and recommend a package or
solution. This process can take a number of days and can be very inconvenient for the
consumer. However now people can log onto the internet at their own convenience
and look for deals that are suited to them and at the same time compare and find the
best possible deal. This new environment gives the consumer power over traditional
agents by being able to access information they previously were not able to do so.
Smith, (2004) describes how this advancement in technologies for the e-commerce
environment has led to traditional travel agents having to change their strategies or
even resorting to just simply closing down. Web oriented users continually see
advertisements for these online travel providers in the form of internet advertising
whereas non-internet users are aware of them through TV and radio advertisements
(Smith, 2004). Over the years a number of third-party travel websites have started and
then either folded or merged with the few major key players in the online travel
industry. Smith concludes in his study by mentioning how the web gives consumers
total control, and that the web travel sites are offering significant savings over
traditional travel agents and even airlines. These travel sites are seen as more

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convenient as most of them offer a one-stop shop for the consumer, one place to
arrange flights, accommodation and car hire. The information contained on the sites is
very rich and provided in a clear logical manner.
Overall this study reinforces my view that most traditional travel agents services are
being duplicated online, but into a more accessible and convenient medium for
consumers.

The internet is becoming a key medium for travel purchases; I think it is necessary that
traditional agents offer services to their consumers online in an effort to changing their
strategies to stay in business. Kamarulzaman (2007) carries out a study on the
“adoption of travel e-shopping in the UK”, he describes how the internet has made a
significant impact on the industry, making it one of the largest and fastest growing
online industries in the world with flight and accommodation bookings accounting for
31% of most popular online purchases (National Statistics, 2001; European Travel
Commission, 2005). Kamarulzaman describes the great opportunity for travel retailers
for the use of the internet as a medium to sell their products and services supporting
my argument above.

The author further goes onto explaining how Fesenmaier and Jeng, (2000) describe
why retailers in the online environment need a clear understanding of those
purchasing online and the influences that help them make a decision, they describe
this process as a “complex multi stage process over a hierarchical set of activities”.
Kamarulzaman describes in his findings the profile of travel e-shoppers,
demographically they are described as middle aged between 25 and 44 and mostly
female with a higher education level and are married or living with a partner. This
profile suggests that most of their time is spent at the workplace and thus can use e-
shopping as a medium to shop 24/7 in a convenient manner from anywhere. The
author also mentions how in many studies the role of trust has been highlighted as a
critical area in the e-shopping environment. He mentions how an increase in trust of e-
shoppers will lower their risk perception. Similarly if consumers were to perceive the
online environment as low risk they would have greater trust and would easily adopt

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travel e-shopping. Kamarulzaman proposes a possible solution to reducing perceived
consumer risk and attaining trust by encouraging credit card companies to make
assurances of consumer protection. This recommendation is tied into the study of Kim
and Benbasat (2010) who recommend the positive influence of consumer buying
behaviour with third party trust assurances.

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3. Methodology

In this chapter I will highlight the methods I will use to successfully gather enough
primary and secondary data to carry out a good thorough analysis of the topic and in
turn come to suitable conclusions.

3.1 Secondary Research

Malhotra & Birks, (1999) Identify secondary research as data collected to provide
further knowledge of a topic area and gain sufficient background information. This
research allows researchers to gain knowledge as to what extent their research
question has been answered. There can be problems in gaining knowledge from such
research as the resource credibility cannot always be guaranteed. In my research I will
limit this by using published journal articles.

Sauders et al (2003) talk about the advantages and disadvantages of secondary data,
they mention how secondary research is very beneficial as it involves the enormous
savings of resources. Secondary research also saves the researcher money and time in
going out to collect data themselves when it is already available at a fraction of the
cost. This type of research also allows researchers to carry out a comparative study;
this is where the researcher compares data that they collect on their own with data
from secondary sources. A very important advantage of this type of research which is
quite relevant to my study is that it allows me to explore as to what extent the subject
area has been already been researched and what discoveries have been made.

There are as with any type of research limitations to this method. Saunders et al (2003)
mention how data from secondary research may not always be specific to a
researchers own objectives. This can lead to the data being irrelevant and useless for
the researcher. Another disadvantage is that data can be difficult to get hold of or even
be very costly. Finally Saunders et al mention that there is no control over the quality
of the data obtained. In the case of my study I hope to minimise the risk of these

Page | 22
limitations by obtaining data that in some way is relevant to my study and helps me
gather the background information to get a basis to answer my research question.

According to Malhotra & Birks, (1999) there are two ways in which secondary data can
be classified. The authors mention how data from within a particular organisation such
as company accounts and other such documents can be classified as internal data. This
type of data needs to be interpreted and analysed by the researcher and can take up
valuable time however it can also be very valuable to the researcher.

The authors then talk about how data from outside an organisation can be classified as
external data. This data is usually available from government statistics, academic
journals, newspaper articles and many other external sources. This type of research
provides a lot more detailed information and analysis but there is always the risk of the
data not being credible. Thus it is necessary for the researcher to diminish this issue; in
this study I will be using published articles from credible journals. To gather and
analyse my secondary research I will use the University of Huddersfield “Metalib”
service, this will allow me to search for and obtain relevant published articles to my
topic area.

3.2 Primary Research

To accurately gather information from a variety of audiences I will compile and

distribute a questionnaire. This questionnaire will be designed as such that it would
gather information regarding the participant, their age range, gender, use of internet,
and other relevant questions to the research.

Malhotra & Birks, (1999) describe how primary research is the original procedure
conducted by a researcher to understand a research problem. One of the main
advantages of using primary research is the fact that one can gather up to date data
regarding any research area. Primary data can be customized to gather well focussed
information Malhotra & Birks, (1999). However, disadvantages are also part of this
method, for example the extreme costs to gather data and the amount of time
required to analyse the returned data. Primary research can be divided into two areas,

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quantitative data and qualitative data. Quantitative data comprises of numerical data
which is easier to statistically analyse. Crimp & Wright, (1995) explain how qualitative
data is data extracted from the target audience, this data is generally based on the
respondents own views and past experience. It is clear that both types of data have
distinct differences.

For this piece of research I will be conducting my primary research with the aid of a
semi-structured questionnaire. This questionnaire will be uploaded to the internet and
will allow the respondents to access it as an online survey this would eliminate the
need to physically distribute it. Crimp & Wright, (1995) mention how questionnaires
are designed to extract the attitudes of the general public, this is exactly what I
require, I need to know the feelings of consumers, when they are shopping online and
what influences their trust and in the end what persuades them to make a decision
whether to buy online or from the high street. Crimp & Wright, (1995) talk how
questionnaires can be of different types, either structured or non-structured or in my
case semi-structured. Structured questionnaires contain closed-ended questions, these
are questions that for example may offer a multiple choice or ask the respondent to
choose from a selection of set answers. These types of questions make it easier for the
researcher to analyse the results using statistical formulas and the data can also be
input into graphical form making it easier to analyse and evaluate. Non-structured
questionnaires are where the questions asked are open-ended, i.e. respondents give
answers based on their personal opinions and views, these are not used much use in
questionnaires on their own as respondents would tend to ignore such questionnaires.
Open-ended questions are best suited in interviews or focus groups where the
researcher can find in depth views of the respondents. In my case I hope to carry out a
semi-structured questionnaire, this is where there is a mix of both structured and non-
structured questions allowing a mix of qualitative and quantitative data.

3.2.1 Choice of Questionnaire

Saunders et al (2003) mention the different types of questionnaires. They describe

how they differ according to how they are administered and the amount of time

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researcher has with their respondents. Self administrated questionnaires, these are
where the questionnaires are delivered through different means, such as e-mail,
posted or distributed by hand and later collected. Each of these modes of delivery
means that the questionnaires are either on-line questionnaires, mail questionnaires
or delivery & collection questionnaires.

Another type of questionnaire mentioned by Saunders et al is interviewed

administered questionnaires, in this the interviewer records responses from the
respondents based on their answers. The authors mention how a growing number of
interviews are conducted where researchers contact and administer the
questionnaires usually over the phone i.e. telephone interviews. Finally the authors
talk about structured interviews; these are described as where researchers physically
meet their respondents asking questions face to face.

The choice of questionnaire that a researcher chooses needs to be well thought out
and is influenced by a variety of factors. It is important in the case of my research to
relate these factors to the objectives of the research. Saunders et al as mentioned
above outline a these factors. They mention that characteristics of respondents of
whom one wants to collect data need to be considered, in my research I require
respondents that have access to the internet and use it to some extent or the other. I
also require my respondents to be somehow associated with purchasing travel
weather it is in the online or offline environment. This relates to the importance of
reaching particular persons as respondents. The next factor mentioned is the
importance of responses not being contaminated or distorted. If respondents are put
into any situation that forces them to give dishonest answers then this would affect
the credibility of results. The size of sample required will also help choosing type of
questionnaire. The types and number of questions to ask also affects the choice.

Any type of questionnaire has its limitations; the most common is that there is not
always an inducement on the respondent to give answers that are true to their
preferences. Another limitation is that in questionnaires where the researcher isn’t
present respondents may not have anyone to ask what the true meaning of a question

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is if they don’t fully understand it. Finally another limitation is the fact that due to time
constraints the number of respondents could be limited, it is therefore necessary to
send out as many questionnaires as possible and hope to achieve a response that
would allow the researcher to analyse the results properly and with credibility.

For my research after taking into consideration all these factors I have chosen to
conduct a self administered on-line questionnaire. This allows me to gain responses
from respondents that use the internet to a greater or lesser extent. The on-line
questionnaire would also allow me to ask any type of question I want and will also
allow me to distribute it amongst a large audience and hopefully get a positive
response rate and achieve responses from at least 100 people.

3.2.2 Sample

I will now highlight where I would gain my data, i.e. what is my sample. Crimp &
Wright (1995) discuss that there are many types of samples such as random sampling
which is when the researcher randomly selects an amount of a population. This is a
good method as the participants are unaware of the research so therefore don’t give
pre thought responses, which could cause invalid data. Another mentioned type of
sample is stratified sampling which is when the population is divided into sub groups
determined by factors such as age and gender.

As mentioned earlier it is important for this research that the sample chosen is
relevant to the research, it will be important to ask those that use the internet as a
mode of shopping to take part in the questionnaire as those people that do not use the
internet will not effectively benefit the research.

For my research the questionnaire will be available online thus it is easier for me to
distribute it to a large variety of potential respondents. As the questionnaire will not
involve any questions that may cause any ethical concern to anyone taking part it is
possible that I can distribute it amongst a random sample of working adults. Links to
the online questionnaire will be sent to a number of travel and tour operators who will
be requested to pass these onto their customers.

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As I work part-time in a travel agency I have contact with a number of travel & tour
operators and have discussed this proposal with them and have received positive
feedback. In return for the tour operators they have been promised the results will to
help them identify what persuades their customers to buy through the high street
versus the online environment and what improvements they can make through the
two mediums of sale.

As with any method there are a number of limitations in the chosen method of
sampling, primarily consumers carrying out the questionnaire at the tour operators
may well be forced to give answers that are biased towards the tour operator. Also
some tour operators may not take the research so seriously and could mean that it
takes time for the results to come through. Respondents could also be forced to
choose answers that may not always fully justify their personal views, this could be
down to giving responses in a rush or not honestly without thinking about the
importance the research holds for the researcher. These limitations could be only
eliminated if sufficient trust is gained from the respondents by offering rewarding
incentives to gain honest and reliable answers. In this research project it is not feasible
to offer any such incentive and thus the results will be taken on purely mutual trust.

3.2.3 Pilot Questionnaire

A draft questionnaire was designed to make sure that it was clear, easy and suitable
for the respondents. It is essential that the questionnaire was easy to follow and that
the answers given reflected true opinions. I conducted the pilot study with customers
in the travel agency I currently work in, I got feedback from 15 respondents and I feel it
was adequate to adjust the questionnaire in accordance to the comments received.

In the pilot study I realised that some questions needed adjusting to prevent the
questionnaire being too long or complicated. Below are the questions and reasons that
I decided to change.

 Please State your Age.

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 o This question raised many issues with people, especially those that didn’t
want to disclose their exact age. Thus it was decided that the actual
questionnaire would ask the respondent to select their age from a age
ranges such as “18-25, 26-35, 36-45, 45+”
 What of the following price ranges do you feel is high range.
o This question was followed by a range of choices, these choices started
from £50-£100, then to £101-£200, £201-£300 and so on until £600+. I felt
that many holidays are priced over the £600 range and respondents were
choosing this in some cases thus it was necessary to find out what was the
value that made them think again and check out the company before
parting with their money.

Other questions in the pilot questionnaire did not seem to pose many problems apart
from the odd question requiring extra explanation. Thus it was decided that extra help
text will be written with any such question to help the respondent fully understand
and give a credible answer.

3.2.4 Questionnaire Creation & Distribution

To create my questionnaire and distribute it there are a number of options I have. I can
create a questionnaire that will be printed and distributed amongst a sample that
would fill it out manually. After receiving back the results it would mean that I would
manually have to enter the responses into a suitable format that would allow me to
analyse the results. This method also has the disadvantage that a lot of printing is
required and distributing such a large number of questionnaires to receive so many
responses is not practically feasible. There is also the possibility that the questionnaire
could be emailed to the sample, which will be able to fill it out and email it back, this
again requires the researcher to enter the data into a suitable format for analysis. I
have decided that I need to eliminate the complexity when taking part in the research
for the respondents and not give them the hassle of returning the questionnaire. If I
ask the respondents to return the questionnaire then they may not be motivated to
take part and will make it harder to gather results. In this case I have decided to use a

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system that will allow me to create, distribute and collect the data making it easier and
efficient for me and the respondents. I have decided to carry out my questionnaire on-
line and being self-administered by the respondents, this gives me the advantage that
the majority of respondents are likely to be users of the internet to a greater or lesser
extent.

After searching the internet for a way to create a questionnaire distribute and gather
the data all from one application I found that Google Docs offered the best solution.

Google have for sometime been offering online office applications (Google Docs)
including a spreadsheet application that are available free of charge and allow users to
create and edit documents online. The application also allows users to easily share the
files they create with friends and colleagues. Recently Google Docs introduced a new
feature to their spreadsheet application that allows users to create forms, these forms
can be modified and designed to suit any user. Google Docs has a number of themes
that can suit any topic. The forms allow the user to create different types of questions.
The forms can be set up so responses are;

 Entered as text
 Selected from multiple choice
 Selected from a range of checkboxes
 Chosen from a list
 Selected from a scale
 Input into a grid

Google Docs allows the user to create the questionnaire with any amount of questions
with the different types of responses.

Once the form is fully completed and tested the user can easily distribute amongst
there sample by simply forwarding the unique link that is generated by Google Docs.

As each individual from the sample fills out the form, responses are automatically
saved into the online spreadsheet. After distributing the link for the questionnaire
there is no need for the researcher to go back and collect the results nor is there any

Page | 29
need for respondents to hand in or return the questionnaire back to the researcher.
The data is automatically updated into the spreadsheet allowing the researcher to
constantly monitor the amount of responses.

I will therefore be using Google Docs to compile and collect data from my
questionnaire.

3.2.5 Questionnaire Design

It is important that the questionnaire is solid and unbiased. A guide by “Survey

Monkey” provides information on writing successful and effective survey questions. It
talks about creating the perfect flow and layout in a survey and how response rates
can be calculated with tips on increasing them. The guide also talks about the pros and
cons of online surveys/questionnaires.

The authors of the guide talk about the importance of creating well structured and
simply written questions that are easy for the participants to understand. Relevancy
and accuracy are seen as the two ideal that encompass the main outcome of creating
reliable surveys/questionnaires. It is necessary that the questions are based on the
objectives of the research and information that is to be collected. The guide mentions
how the wording style, type and sequence of the question should be considered to
enhance the accuracy of response and attain increased credibility. It is also important
that the questionnaire is not too long and keeps the respondent focussed and
interested to giving honest answers. The guide cites Moser and Kalton (1971) who
mentions that the researcher should put them self in the position of the least educated
respondent. I think this is a valid point as making the questionnaire easy to follow and
understand would yield the most honest answers and give credibility to the study.

It is important that the questions are legible, relevant and painless. They should be
easy for the respondents to understand as well as requiring less effort to answer. The
guide mentions Brace (2004) who suggest that if the survey takes too long or becomes
tiresome for the respondent then strategies will adapted by them to complete the
questionnaire by entering responses in rating scale type questions that does not truly

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reflect their actual thoughts. By using this strategy they will quickly finish the
questionnaire and would make the results less reliable for the researcher.

It is very important that the questions are brief, objective, simple and brief. If
questions meet these criteria then they will yield accurate responses from the
respondents. In my questionnaire as mentioned earlier there will be a mix of open and
closed-ended questions. This mix will allow me to gather specific information to the
topic as well as gain personal views via some of the open-ended questions.

The open-ended questions that I will ask will range from rating scales to options to
choose from a list. A likert scale is used to weigh up the agreement of the respondent
to a specific statement. The choices for the question rate levels of agreement or
disagreement.

The guide by Survey Monkey also explains how response rate can be calculated by
using the following equation;

Number of responses
Number of participants contacted X 100

The calculation will show the percentage of people who completed the survey from
the total number requested to take part.

3.2.6 Questionnaire Ethics

In order to ensure the privacy and anonymously of respondents it is essential that all
responses are treated with utmost confidentiality. The questionnaire has been
designed to remain confidential and will in no way allow the researcher to be able to
trace back any individual respondent. As seen below there will be no questions asked
that will be able to in any way locate or identify any individual respondent. All
respondents are to be briefed in the introduction about the purpose of the study and
ensured that the questionnaire is “voluntary and completely anonymous”. The

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introduction also stresses that the data will be used strictly for “academic purposes
only”.

3.2.7 Questionnaire

A printout of the actual final questionnaire can be seen in Appendix A. As the

questionnaire is designed online using “Google Docs” the printout gives a good visual
presentation of how it looks. The final questionnaire contains a total of 15 questions,
the first five questions are to categorise the type of respondent, they organise the
respondents into different demographics whilst the remaining questions are aimed to
get a point of view regarding shopping online in general and what factors affect
consumers in purchasing travel online.

The following is an overview of what questions will be asked with a brief justification
for each question.

Justification
Question

1. Gender To find the percentage of both, male and

female those take part in questionnaire.
2. Age To discover the age range/s of those that
take answer the questionnaire.
3. Marital Status To discover the marital status of each
respondent.
4. Yearly Income To discover the income of each
respondent.
5. Internet Usage This will help categorise the results into
those that use the internet more
frequently than those that don’t.
6. Do you trust internet travel This will be an open ended question
agents, please justify. allowing respondents to give views about
what they think of online travel agents.
7. How did you make your last This question will help in seeing what
holiday arrangement? method each respondent uses to make
their travel/holiday arrangement.

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 8. In the past 12 months which of the
following have you bought online?
Train tickets, airline tickets, hotel
booking, full holiday
9. How often do you make any online
purchase?
10. What price range would you
consider high value?
11. Do you check for visual cues?
12. How important are the following
when buying travel online?
Reputation, value for money, third
party endorsement, advertising,
recommendation
13. Do you read online reviews about
travel companies before buying?
14. Where would you buy your next
holiday, if you were offered similar
deals online and offline?
15. Please justify your answer to the
above question
3.2.8 Analysing Data
The data that will be generated by the questionnaire will be mostly qualitative data
and thus needs to be correctly analysed to make conclusions. It is important to analyse
This question will help in giving an idea of
what type of holiday arrangement the
respondents have bought online.
This would help in the frequency the
respondents use the internet as a means
of shopping.
This question will have options, so the
respondent can choose. The responses
would help in seeing what price ranges
distract people from buying online.
This is to see how many respondents
check before they buy
This question would allow the respondent
to choose an option for each factor
ranging from not important to very
important. This would allow me to analyse
how different factors affect buying travel
online.
This question would help in analysing
whether or not consumers check out the
reputation of travel companies before
buying.
These two questions would allow me to
analyse where and why people are likely
to buy their travel arrangements and if
there is an overall effect on high street
travel agents because of the online
environment.
Page | 33
the data so we get a good understanding of the respondents’ views and be able to
discover regularities in responses and reflect on the findings. Saunders et al (2003)
mention how the first step to analyse quantitative data is to categorise the results into
relevant sections. These categories need to be meaningful, allowing the researcher to
organise and analyse the data further. The next step is to unitise the data into “bits” or
“chunks”; these allow the researcher to attach the data to relevant categories using
specialist software. In the case of my study I will split my results into different sections
regarding internet usage and relate them to amount of trust using cross-tabulation
techniques.

There questionnaire also includes open-ended questions that will generate qualitative
data, this will mean that the data will have to be analysed in a different way. To
analyse this data it is necessary to read through the responses and look for patterns.
These patterns can then be related back to the findings of the secondary research from
the literature review.

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4.0 Research Results & Analysis

This section of the study will outline the results from the primary research carried out
through the questionnaires that were completed by customers of travel agents to
whom the questionnaire link was forwarded.

4.1 Results from Questionnaire

After requesting the travel and tour operators to distribute the questionnaire amongst
their customers I received a total of 103 complete responses. The responses of the
questionnaire are detailed and analysed below. The first five questions as mentioned
before were aimed to get a demographic of the consumers that were surveyed. The
questions after them were all aimed at getting views regarding the study and
eventually meeting objectives of my study. A printout of the spreadsheet containing
the primary data can be seen in Appendix B. I will now analyse the results by looking at
the data generated from the online questionnaire. The graphs below are taken from
the summary of responses which was generated by the “Google Docs” spreadsheet
application. A printout of the summary is also available in Appendix C.

4.1.1 Genders & Age Ranges of Respondents

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The data that was generated shows that the number of respondents varied between
genders. The respondents give a fair representation of each gender; however there
were nearly two times more males than females who took part in the questionnaire.
As regards to the age range of the respondents we again can see that responses
represented a fair amount of each age group however again we can see that the 18-25
age group was the more dominant in taking part in this questionnaire.

The dominance of the younger age group could be because this age group is more
computer/internet literate than the others.

4.1.2 Analysis of Marital Status

We can see from the responses of this question that the results show an equal
representation of single respondents and respondents who are either married or living
with a partner. This gives credibility to the results as it gives an equal representation of
the demographics of the different marital status.

18-25 25-35 35-45 45+   total

males
married 2 12 6 4   24
single 32 6 0 1   39
with partner 1 3 2 1   7
             
total 35 21 8 6   70
females 18-25 25-35 35-45 45+   total
married 3 4 4 1   12
single 7 6 1 0   14
with partner 3 5 1 1   10
             
total 13 15 6 2   36

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The cross tabulation tables above were generated by inputting the data into MS Excel.
The tables show the differences of the amount of each respondent in their age groups
compared to their marital status. Separate tables have been created for both male and
female respondents.

4.1.3 Analysis of Income Levels

This question was asked to get a view of the amount of income the respondents
earned and how likely they were to spend on travel. The results show a somewhat
equal representation across the different income ranges. We can see that the majority
of respondents earn between £20,000 and £29,999 however there is still a fair
representation of the other income ranges.

£10,00 £20,00 £30,00

0- 0- 0- £40,00
  total
  £19,99 £29,99 £39,99 0+
9 9 9
100
male 43% 33% 10% 14%  
%
100
female 13% 51% 22% 14%  
%
             
total   106

This cross tabulation table compares income levels amongst the two genders. As there
was not an equal amount of males to females the figures have been changed to
percentages. We can see here that the majority of males earned between £10,000 and
£19,999 whilst the majority of females earned between £20,000 and £29,999.

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It must be noted here that this chart has no relevance to age range. To compare
income levels with age ranges the tables below have been created.

18- 25- 35-

males 45+   total
25 35 45
23 0 1
£10,000 - 6
(33 (0% (1% 30
£19,999 (9%)
%) ) )
9 11 3 0
£20,000 -
(13 (16 (4% (0% 23
£29,999
%) %) ) )
2 2
£30,000 - 0 3
(3% (3% 7
£39,999 (0%) (4%)
) )
3 3
3 1
£40,000 + (4% (4% 10
(4%) (1%)
) )
             
70
total 35 21 8 6   (100
%)

18- 25- 35-

females 45+   total
25 35 45
5 0 0
£10,000 - 0
(14 (0% (0%   5
£19,999 (0%)
%) ) )
5 11 2 0
£20,000 -
(14 (31 (6% (0%   18
£29,999
%) %) ) )
2 2
£30,000 - 1 3
(6% (6%   8
£39,999 (3%) (8%)
) )
2 0
2 1
£40,000 + (6% (0%   5
(6%) (3%)
) )

36
total 13 15 6 2   (100
%)

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We can see from these tables the differences in income levels against age ranges
between males and females. As mentioned before the results did not gather equal
response between males and females thus it can be difficult to interpret the data
unless it is converted into percentages as I have done so in the tables. We can see by
looking at the percentages that the majority of 18-25 year olds being either male or
female earn between £10,000 and £19,999 however there is a trend in females earning
more in the higher salary ranges. This result cannot be taken as fact as the sample was
not large enough and the amount of female respondents do not truly reflect what the
data from the male respondents does.

4.1.4 Analysis of Internet Usage

This question was very important to my study as it shows how much internet the
respondents use. Even though the questionnaire was presented on the internet for
completion it was important to know how much internet the respondents use. The
results show that a large proportion of the respondents use the internet on a very
regular basis, with 69% using it every day. This stresses the fact that the majority of
respondents have some kind of association to the internet and can give credible of
views of how much they trust the internet.

4.1.5 Views of Online Travel Agent Trust

This question was asked in an open-ended manner and generated many interesting
and diverse views. This question was aimed to getting the views of the participants
about how much they trust online travel agents. The responses for this question were
either yes from people who explained they trusted the online travel agents if they
were well known and reputable or even direct from the websites of the airlines. There

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were however responses that explained how they just didn’t trust the online
environment either because they had bad experiences in the past or just didn’t trust
the internet at all. There were some interesting views in which some respondents
pointed out the fact that they were more likely to buy from an online travel agent if
the agent had an offline presence so they could easily contact them face to face if any
problems were to arise. Most of the people that responded no to this question
explained that the lack of face to face contact made them uneasy in buying online and
parting with so much money.

4.1.6 Medium of Previous Purchase

This question was aimed at getting a view of what medium the respondents used to
buy their travel. The responses to this question show how consumers use a range of
different methods in making their online purchases. Many of the respondents did
make their last travel arrangement through the internet but the majority of
respondents used other offline methods such as the high street retailers and over the
phone. These responses again show how not all users of the internet use the online
medium to make their travel arrangements.

4.1.7 Travel Purchase Trends

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This question was aimed to gather information about how much of online spending
was spent on different travel aspects. I wanted to gather information weather the
respondents were buying full travel packages online or using the internet to buy
separate individual components of their travel needs. The results show that the
majority of people bought individual components whilst only a few were confident
enough to buy a full holiday package online.

4.1.8 Online Purchase Trends

This next question was aimed to get a visualisation of how much of the internet the
respondents use as a medium of buying anything. The results showed that the
respondents used the internet to a greater or lesser extent. Most of the respondents
did use the internet to make purchases and were making these purchases fairly
regularly. The next question was aimed at looking at how much money the
respondents were careful with. Meaning what amount of purchase would make them
feel uneasy and make them double check the supplier before completing the purchase.

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The results show us here how many people felt uneasy about making purchases
between £50 and £200 online. I feel that the majority of people that were making
purchases online were purchasing goods or services below this range.

£50 - £100 - £200 - £400 - £600

  total
  £100 £200 £400 £600 +
1-2 times per week 3 4 5 2 2   16
every 2 weeks 2 7 2 1 1   13
1-2 times p month 14 15 5 1 1   36
1-2 times every 6 months 15 11 4 2 3   35
               
total 34 37 16 6 7   100

We can see from the cross tabulation table above how those people that don’t buy
online very often see the lower price ranges as riskier. Whilst those that are buying
online more often tend to vary across the range of price ranges on what they see as
high value.

4.1.9 Checking for Security and Reviews

These questions were asked to get a view of what consumers do before making any
kind of online purchase. The first question was asked to check if consumers look for
third party visual cues that may make it easier for them to make a decision. The
majority of respondents did look for visual cues and thus we can imply that they do
increase the trust of consumers. The next question was more related to the online
travel industry itself, it looked at whether or not consumers used the internet to find
out more about a particular travel agent. This allows us to see if consumers use the
internet as a basis of gathering information before they make any kind of travel
purchase.

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The answers to this question show the significance of the internet as a means to
obtaining information about whether to buy from a particular company or not. Most of
the respondents often read reviews about travel companies before buying from them,
this shows that consumers need to know about reputation of a company before they
can trust and buy from them.

4.1.10 Factors Influencing Purchases

This question was aimed at getting a view of what influence different factors had on
the respondents buying intentions. The participants were asked to rate what extent
the factors were important to them when making travel purchases online.

60

50

40
reputation
30 value for money
third pary endorsement
advertising
20
recommendations

10

0
not im portant at all not im portant neither som ewhat very m uch
im portant im portant

The chart above has been generated by inputting the data into MS Excel; it shows how
greater importance is given to most of the factors. We can see that reputation and
value for money are seen as very important when making an online purchase.

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Consumers don’t just go for value for money; it has to be coupled with a company that
has a strong reputation.

4.1.11 High Street or Online

This question was asked and justifications were also requested in relation to this
answer. The majority of consumers chose to buy from a high street travel agent even if
they were offered the same deal online. Many respondents explained how the face to
face dealing with a high street agent would make them feel more confident and help
them in eliminating any doubts. The respondents also pointed out the fact that they
can always go into the high street agent if any problems were to arise rather than
relying on a website or a helpline. The people that chose to rather buy online
mentioned how the online environment offered them convenience and overall is a
much easier experience.

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5.0 Discussion & Recommendations

This chapter will take into consideration all the findings from both the primary
research and the secondary research (literature review) and will allow me to discuss
my findings and make any relevant discussions.

In the literature review I successfully explained how previous studies mention different
ways why people tend to shop online, if we look at the four determinants of online
shopping behaviour that are talked about by Pachauri (2002), and compare them to
the views of shopping online from our respondents we can relate them together in
some ways. Pachauri stresses in his first category of the economics of information
approach, this approach is where consumers shop online because of the efficiency of
the internet allowing them to find the best deal without physically shopping around on
the high street. The respondents to my research pointed out that one of the main
reasons they use the internet to shop is because it gives them the convenience and
rich amount of information whenever they need. Many respondents stress how the
internet saves them time in looking for what they need. The next approach in
Pachauri’s study is the cognitive costs approach, this looks at how consumers
categorise their decisions in relation to price and quality compared to the reliability
credibility of the online merchant. In my research we see how a strong importance is
given to value for money and the reputation of the online travel agent, this shows a
general agreement with Pachauri’s cognitive costs approach.

The next two approaches, lifestyle and contextual influence also play a significant part
in online buying behaviour as we can see in my research. My research shows how
there is an influence on buying behaviour depending on the socio demographic
characteristics of each particular consumer. The results show how the older people
were less likely to buy online and more likely and actually preferred going to the high
street and talking to someone face to face before making any kind of travel purchase.
Also the results from the primary research show the effect of recommendations from
family or friends on buyer behaviour. There was a strong importance given by the

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respondents to the recommendations from their family and friends when making
travel purchases online.

The studies by Ward and Morganosky (2002) and Farag et al (2007) can also be verified
by the findings of my research. My research shows how those people with a positive e-
shopping attitude are more likely to make their travel purchases online and those that
don’t have a positive attitude ten to use the internet to obtain their information but
would rather still go into a high street agent and negotiate a good deal even if they are
getting something similar on the internet. Similarly the findings of Monsuwe et al
(2004) are also verified by my study, the results show how advancements in
technologies make an individual perceive an enhancement in their individual online
performance. In simpler terms, the more a person uses the internet the more likely
they are to shop online. This derives from the utilitarian dimension mentioned by
Monsuwe et al. The consumers see the internet as a useful tool that allows them to
shop online in an easy and convenient manner. Monsuwe et al also talk about how
external factors influence why people shop online, in my study we can see how
recommendations from family and friends’ affects consumers and other factors such as
previous experiences play an essential part in choosing whether to buy online or from
the high street.

Those respondents that didn’t like to shop online can be explained by the lack of
overall trust they have in the internet as a medium to shop. Monsuwe et al describe
these people as seeing the internet as a challenge.

To encourage better trust from consumers Kim and Benbasat (2010) suggest
assurances can be given to consumers in different ways such as third party credentials
and security features. My research shows how many people who do use the internet
as a medium to shop prefer to buy from a retailer that has third party assurances and
also look for security features when completing their purchases.

In the study of Chen and Barnes (2007) the authors suggest how people don’t buy
online because of online security and policy doubts, in our research this was one of the

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concerns many consumers had and is backed up by many respondents who supported
high street travel agents because this was one of the mediums that ensured security
and reliability.

In my research the respondents to my questionnaire were asked to justify which

medium of shopping for travel they preferred, from those that chose the internet we
see many giving reasons that relate to the works of Beldona et al (2004) who cite the
works of Starkov and Price (2003) who mention how the convenience and ability to
compare prices quickly were major reasons why people tend to buy online. We can
also see from our results how the respondents were using the internet to mostly buy
low complexity travel components, and for higher complexity components such as full
holiday packages they would tend to use a high street travel agent to gain detailed
information direct from the agent face to face.

Throughout this study we can see the importance of online trust and how it affects
buyer behaviour when buying online. Both the secondary and primary researches have
shown this and show how online travel agents can benefit by gaining increased trust
from their consumers.

Any research has its limitations as it is not always possible to cover everything,
especially in such a topic as trust where there are a number of factors that influence
trust and also a number of factors that influence buyer behaviour. In this study I have
tried to cover as much as possible in terms of trust and how it is affecting travel agents
on and off the internet. It is recommended that future research looks more into the
depth of travel agents and compare the amount of sales between different agents. The
comparison could take place between e-travel agents and traditional high street
agents as well as thorough analysis between different e-travel agents looking into why
people buy from particular agents and don’t trust others.

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6.0 Conclusions

This study covers the importance of trust for consumers when buying online and how
it affects their buying habits in purchasing from an e-travel agent against a traditional
high street travel agent. The study first analysed previous research carried out by
others, this gave a good background to the topic and allowed me to focus my primary
research on specifically the travel industry.

The results that were gathered were thoroughly analysed using cross tabulation to
compare differences between responses.

The results were then discussed comparing them to the previous research studies
carried out by others. After analysing the findings I came to the conclusion that the
hypothesis that was created in the introduction is correct; “Increased consumer trust
to the online environment positively affects online travel purchases against high street
travel purchases”. Even though trust is not the main factor which influences
consumers to shop for their travel on the high street rather than online there is still a
trend that shows if there is increased trust in the online environment this is likely to
positively affect the level of e-travel agents sales compared to traditional high street
travel agents.

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APPENDIX A – QUESTIONNAIRE DESIGN

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APPENDIX B – RESPONSE DATA

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APPENDIX C – RESPONSE SUMMARY

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