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International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume: 3 | Issue: 4 | May-Jun 2019 Available Online: www.ijtsrd.com e-ISSN: 2456 - 6470
@ IJTSRD | Unique Paper ID - IJTSRD23813 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 700
A Study of Online Market in Airline: A Case Study in Mongolia
Bayanmunkh Nandinchimeg1, Ganzorig Munkhjin1, Tsevegdorj Battsetseg2
1Master of Business Administration, College of Management, Da-Yeh University, Taiwan
2School of Public Affairs and Management, National academy of governance, Mongolia
How to cite this paper: Bayanmunkh
Nandinchimeg | Ganzorig Munkhjin |
Tsevegdorj Battsetseg "A Study of
Online Market in Airline:ACaseStudyin
Mongolia" Published in International
Journal of Trend in Scientific Research
and Development
(ijtsrd), ISSN: 2456-
6470, Volume-3 |
Issue-4, June 2019,
pp.700-701, URL:
https://www.ijtsrd.c
om/papers/ijtsrd23
813.pdf
Copyright © 2019 by author(s) and
International Journal of Trend in
Scientific Research and Development
Journal. This is an Open Access article
distributed under
the terms of the
Creative Commons
Attribution License (CC BY 4.0)
(http://creativecommons.org/licenses/
by/4.0)
ABSTRACT
This study defines customer satisfaction (CS) of Mongolia with the experienceof
the online market (OM) by technology acceptance (AT).ThefactorsofCSinclude
ease of use, payment security, interactivity, and the quality of theinformation on
the website. The goal of this study is to examine to what extent these 4 factors
affect the satisfaction of passengers in Mongolian Airlines (MA). The surveywas
based on 2 airlines: the airline Hunnu, the airline MIAT and the data collected
from 98 passengers of those airlines. The results show that there are three
essential factors: interactivity, the security of payment and ease of use, which
affects satisfaction with OM's experience in CS in Mongolia.
Keywords: customer satisfaction, online market, airlines, Mongolia
I. INTRODUCTION
The airline market (OM) is one of the fastest growing industries in the world.The
airline industry's ticket distribution channel is changed to OM. This distribution
channel allows customers to buy OM quickly and has cost savings for both the
company and customers [1]. Even virtual distributors on the Internet can be
unsafe and reliable, but even so, one of the mostimportantchannelsforairlines to
sell tickets [2]. This study used the AT model and can be explained by two
prominent beliefs: perceived utility and perceived ease of use. This study
examines OM's CS about ease of use, quality of information,paymentsecurity and
interactivity that affect passenger satisfaction levels of Mongolian airlines.
The purpose of the research is to show what influence
factors affect the level of CS in the airline industry and what
are the main factors that affect the intention of the
Mongolian passenger to buy OM through satisfaction. This
study proposes hypothesis testing when trying to find
answers to research questions and also identifies the
demographic characteristicsoftheclientand could influence
consumer decisions to buy OM and CS. An OM is a paperless
electronic document, especially in the airline industry [3].
Today, all major airlines use the electronic ticket sales
method. When a customer buys or book a plane ticket over
the phone or OM, the details of the reservation are saved on
the computer. The benefit of OM is that it reduces the cost of
buying a plane ticket by eliminating the need to print and
send paper documents [1]. Another advantage is that
consumers can easily compare ticket costs online without a
transaction fee.
CS can be a basic standard of service performance and a
possible fault-free standard for any business organization
[4]. Satisfaction is a response to a perceived discrepancy
between earlier expectations and perceived performance
after consumption [5-7]. CS is defined by satisfaction with
the product/service. Therefore, satisfaction is extremely
important for OMs of products and services because a
satisfied customer has a positive buying intention, such as
repurchase, a positive word of mouth and long-term loyalty.
For example: [8] found that between 35 and 40% of sales
revenue from the OM comes from frequent visitors.
Therefore, CS leads to customer loyalty and has a growth in
market share and predicts greater penetration in the Airline
Company market [9].
1. Research Framework
According to models and studies of OM satisfaction, several
factors have been proposed to affect to OM satisfaction [2,5-
7, 10]. The 4 factors in this study have been explored
including: the information quality, payment security,
interactivity and ease of use shown in Fig-1.
Fig-1: Research framework
H1: Ease of use has a positive effect on CS towards the
purchase of OM.
H2: The quality of the website information has a positive
effect on CS towards the purchase of OM.
H3: Payment security has a positive effect on CS towards
the purchase of OM.
H4: Interactivity has a positive effect on CS towards the
purchase of OM.
IJTSRD23813
Ease of use
Information
Payment security
Interactivity
CS level
International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID - IJTSRD23813 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 701
METHOD & RESULTS
1.1 Measurement
This study is measured by 4 variables that affect the
satisfaction levels of airline passengers in Mongolia. The
dependent variable in this study is CS and the independent
variables are ease of use, qualityof information,interactivity,
and payment security.
The questionnaire has two parts; the firstpartisdesigned by
the questions of the Likert scale, which consists in that the
items are based on the research variables and the
measurement of each element in the Likertrangeof 5 points.
1.2 Data collection
Before developing a formal questionnaire, a pilot test was
conducted. The subjects for the pilot testwereamongairline
employees and customers who were known to have used an
airline's website, which includedHunnuand MIATtoreserve
their ticket. The pilot questionnaire had 44 items that were
reduced to 24 for the final survey. There were 22 invalid
responses out of a total of 98 completed responses. One
hundred thirty-eight valid questionnaires were used to
prove they are adequate to test our hypotheses.
1.3 Data analysis
Demographic characteristics includeage,gender,status, and
income level. The statistics of the respondents show that
most respondents are students(62.2%)and non-managerial
employees (18.4%). Many of the respondents are between
21 and 35 years old (84.7%) because most of the
respondents are students and buy OM to study. Some
demographiccharacteristicsoftherespondentsareshown in
Tab-1.
Measure Item Frequency Percentage
Age
Less than 21 7 7.1%
21-35 83 84.7%
36-50 7 7.1%
51 and over 1 1%
Gender
Male 42 42.9%
Female 56 57.1%
Current
status
Managerial
level
Non-
managerial
level
13
18
13.2%
18.4%
Student 61 62.2%
Unemployed 6 6.1%
Tab 1: Statistics of respondents' profiles
The hypotheses of the research model were tested using
ANOVA and multiple regression equations provided by the
SPSS computer program. Tab-2 showsthatthe correlation of
the relationships between the study variables that are the 4
independent variables positively influence CS.
IQ PS I PEOU SF
IQ 1
PS .658** 1
I .380** .360** 1
EOU .775** .593** .280** 1
SF .622** .718** .746** .616** 1
Tab-2: Correlation matrix of variables
CONCLUSION
This study tried to examine the determinants of OM CS in
Mongolia. The result of the investigation was supported by
three factors and rejected two factors, the hypotheses are
shown in Tab-4. In Mongolia's customers, the ease of use,
interactivity and payment security of OM services are
important determinants of OM CS.
Hypotheses Result
H1 Supported
H2 Not Supported
H3 Supported
H4 Supported
Tab-4: Result of Research Hypotheses
Customers of the Mongolian airline focus more on the
interactivity and security of OM buys due to the lack of
experience in the use of OM of the airline and feel more
comfortable with the face-to-face interaction with the
personnel of the airline. the airline and the more traditional
payment system. It is also one of the reasons for the use of
the Internet and OM is not common in Mongolia.
Reference
[1] Chen, C. F. (2007). Passenger use intentions for
electronic tickets on international flights. Journalof Air
Transport Management, 13(2), 110-115.
[2] Motlaq S.V., F. G., M. Kazemi, T.V. Motlaq, M.V. Motlaq.
(2012). The Estimation of Customer’s Electronic Trust
(E-Trust) Toward Airline E-Ticketing in Iran using the
Technology Acceptance Model(TAM). Midle Eastern
Finance and Economics(16).
[3] Kurniawan, B. (2010). Factors affecting customer
satisfaction in purchase decision on ticket online: a
case study in air asia.
[4] Gerson, R. (1993). Measuring customer satisfaction:
Crisp Learning.
[5] Eid, M. I. (2011). Determinants of e-commerce
customer satisfaction, trust, and loyalty in Saudi
Arabia. Journal of Electronic Commerce Research,
12(1), 78-93.
[6] Lau T.C, h.-L. K. a. H.-P. T. (2011). Airline e-Ticketing
Service:How e-Service Quality and Customer
Satisfaction Impacted Purchase Intention Medwell
Journals, 5 (4), 200-2008.
[7] Merwe V.D, S. (2010). THE IMPACT OF ELECTRONIC
SERVICE QUALITY DIMENSIONS ON CUSTOMER
SATISFACTION.
[8] Rosen, S. (2001). Sticky website is key to success.
Communication World, 18(3), 36.
[9] Yeoh, E., & Chan, J. K. L. (2011). Malaysian Low Cost
Airlines: Key Influencing FactorsonCustomers'Repeat
Purchase Intention.
[10] Szymanski, D. M., & Hise, R. T. (2000). E-satisfaction:an
initial examination.Journalof retailing,76(3),309-322.

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A Study of Online Market in Airline A Case Study in Mongolia

  • 1. International Journal of Trend in Scientific Research and Development (IJTSRD) Volume: 3 | Issue: 4 | May-Jun 2019 Available Online: www.ijtsrd.com e-ISSN: 2456 - 6470 @ IJTSRD | Unique Paper ID - IJTSRD23813 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 700 A Study of Online Market in Airline: A Case Study in Mongolia Bayanmunkh Nandinchimeg1, Ganzorig Munkhjin1, Tsevegdorj Battsetseg2 1Master of Business Administration, College of Management, Da-Yeh University, Taiwan 2School of Public Affairs and Management, National academy of governance, Mongolia How to cite this paper: Bayanmunkh Nandinchimeg | Ganzorig Munkhjin | Tsevegdorj Battsetseg "A Study of Online Market in Airline:ACaseStudyin Mongolia" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456- 6470, Volume-3 | Issue-4, June 2019, pp.700-701, URL: https://www.ijtsrd.c om/papers/ijtsrd23 813.pdf Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/ by/4.0) ABSTRACT This study defines customer satisfaction (CS) of Mongolia with the experienceof the online market (OM) by technology acceptance (AT).ThefactorsofCSinclude ease of use, payment security, interactivity, and the quality of theinformation on the website. The goal of this study is to examine to what extent these 4 factors affect the satisfaction of passengers in Mongolian Airlines (MA). The surveywas based on 2 airlines: the airline Hunnu, the airline MIAT and the data collected from 98 passengers of those airlines. The results show that there are three essential factors: interactivity, the security of payment and ease of use, which affects satisfaction with OM's experience in CS in Mongolia. Keywords: customer satisfaction, online market, airlines, Mongolia I. INTRODUCTION The airline market (OM) is one of the fastest growing industries in the world.The airline industry's ticket distribution channel is changed to OM. This distribution channel allows customers to buy OM quickly and has cost savings for both the company and customers [1]. Even virtual distributors on the Internet can be unsafe and reliable, but even so, one of the mostimportantchannelsforairlines to sell tickets [2]. This study used the AT model and can be explained by two prominent beliefs: perceived utility and perceived ease of use. This study examines OM's CS about ease of use, quality of information,paymentsecurity and interactivity that affect passenger satisfaction levels of Mongolian airlines. The purpose of the research is to show what influence factors affect the level of CS in the airline industry and what are the main factors that affect the intention of the Mongolian passenger to buy OM through satisfaction. This study proposes hypothesis testing when trying to find answers to research questions and also identifies the demographic characteristicsoftheclientand could influence consumer decisions to buy OM and CS. An OM is a paperless electronic document, especially in the airline industry [3]. Today, all major airlines use the electronic ticket sales method. When a customer buys or book a plane ticket over the phone or OM, the details of the reservation are saved on the computer. The benefit of OM is that it reduces the cost of buying a plane ticket by eliminating the need to print and send paper documents [1]. Another advantage is that consumers can easily compare ticket costs online without a transaction fee. CS can be a basic standard of service performance and a possible fault-free standard for any business organization [4]. Satisfaction is a response to a perceived discrepancy between earlier expectations and perceived performance after consumption [5-7]. CS is defined by satisfaction with the product/service. Therefore, satisfaction is extremely important for OMs of products and services because a satisfied customer has a positive buying intention, such as repurchase, a positive word of mouth and long-term loyalty. For example: [8] found that between 35 and 40% of sales revenue from the OM comes from frequent visitors. Therefore, CS leads to customer loyalty and has a growth in market share and predicts greater penetration in the Airline Company market [9]. 1. Research Framework According to models and studies of OM satisfaction, several factors have been proposed to affect to OM satisfaction [2,5- 7, 10]. The 4 factors in this study have been explored including: the information quality, payment security, interactivity and ease of use shown in Fig-1. Fig-1: Research framework H1: Ease of use has a positive effect on CS towards the purchase of OM. H2: The quality of the website information has a positive effect on CS towards the purchase of OM. H3: Payment security has a positive effect on CS towards the purchase of OM. H4: Interactivity has a positive effect on CS towards the purchase of OM. IJTSRD23813 Ease of use Information Payment security Interactivity CS level
  • 2. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID - IJTSRD23813 | Volume – 3 | Issue – 4 | May-Jun 2019 Page: 701 METHOD & RESULTS 1.1 Measurement This study is measured by 4 variables that affect the satisfaction levels of airline passengers in Mongolia. The dependent variable in this study is CS and the independent variables are ease of use, qualityof information,interactivity, and payment security. The questionnaire has two parts; the firstpartisdesigned by the questions of the Likert scale, which consists in that the items are based on the research variables and the measurement of each element in the Likertrangeof 5 points. 1.2 Data collection Before developing a formal questionnaire, a pilot test was conducted. The subjects for the pilot testwereamongairline employees and customers who were known to have used an airline's website, which includedHunnuand MIATtoreserve their ticket. The pilot questionnaire had 44 items that were reduced to 24 for the final survey. There were 22 invalid responses out of a total of 98 completed responses. One hundred thirty-eight valid questionnaires were used to prove they are adequate to test our hypotheses. 1.3 Data analysis Demographic characteristics includeage,gender,status, and income level. The statistics of the respondents show that most respondents are students(62.2%)and non-managerial employees (18.4%). Many of the respondents are between 21 and 35 years old (84.7%) because most of the respondents are students and buy OM to study. Some demographiccharacteristicsoftherespondentsareshown in Tab-1. Measure Item Frequency Percentage Age Less than 21 7 7.1% 21-35 83 84.7% 36-50 7 7.1% 51 and over 1 1% Gender Male 42 42.9% Female 56 57.1% Current status Managerial level Non- managerial level 13 18 13.2% 18.4% Student 61 62.2% Unemployed 6 6.1% Tab 1: Statistics of respondents' profiles The hypotheses of the research model were tested using ANOVA and multiple regression equations provided by the SPSS computer program. Tab-2 showsthatthe correlation of the relationships between the study variables that are the 4 independent variables positively influence CS. IQ PS I PEOU SF IQ 1 PS .658** 1 I .380** .360** 1 EOU .775** .593** .280** 1 SF .622** .718** .746** .616** 1 Tab-2: Correlation matrix of variables CONCLUSION This study tried to examine the determinants of OM CS in Mongolia. The result of the investigation was supported by three factors and rejected two factors, the hypotheses are shown in Tab-4. In Mongolia's customers, the ease of use, interactivity and payment security of OM services are important determinants of OM CS. Hypotheses Result H1 Supported H2 Not Supported H3 Supported H4 Supported Tab-4: Result of Research Hypotheses Customers of the Mongolian airline focus more on the interactivity and security of OM buys due to the lack of experience in the use of OM of the airline and feel more comfortable with the face-to-face interaction with the personnel of the airline. the airline and the more traditional payment system. It is also one of the reasons for the use of the Internet and OM is not common in Mongolia. Reference [1] Chen, C. F. (2007). Passenger use intentions for electronic tickets on international flights. Journalof Air Transport Management, 13(2), 110-115. [2] Motlaq S.V., F. G., M. Kazemi, T.V. Motlaq, M.V. Motlaq. (2012). The Estimation of Customer’s Electronic Trust (E-Trust) Toward Airline E-Ticketing in Iran using the Technology Acceptance Model(TAM). Midle Eastern Finance and Economics(16). [3] Kurniawan, B. (2010). Factors affecting customer satisfaction in purchase decision on ticket online: a case study in air asia. [4] Gerson, R. (1993). Measuring customer satisfaction: Crisp Learning. [5] Eid, M. I. (2011). Determinants of e-commerce customer satisfaction, trust, and loyalty in Saudi Arabia. Journal of Electronic Commerce Research, 12(1), 78-93. [6] Lau T.C, h.-L. K. a. H.-P. T. (2011). Airline e-Ticketing Service:How e-Service Quality and Customer Satisfaction Impacted Purchase Intention Medwell Journals, 5 (4), 200-2008. [7] Merwe V.D, S. (2010). THE IMPACT OF ELECTRONIC SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION. [8] Rosen, S. (2001). Sticky website is key to success. Communication World, 18(3), 36. [9] Yeoh, E., & Chan, J. K. L. (2011). Malaysian Low Cost Airlines: Key Influencing FactorsonCustomers'Repeat Purchase Intention. [10] Szymanski, D. M., & Hise, R. T. (2000). E-satisfaction:an initial examination.Journalof retailing,76(3),309-322.