Consumer Search Behaviour and Adoption of Online Booking of Travel Services in Saudi Arabia

354 Pages·2015·3.26 MB·English

by  De Montfort University

Consumer Search Behaviour and Adoption
of Online Booking of Travel Services in
Saudi Arabia

Khald Alatawy
Supervised by
Dr. Anne Broderick and Dr. Suha Omar

A thesis submitted for the
Degree of Doctor of Philosophy
2015

The Department of Strategic Management and Marketing
De Montfort University
Dedication
This thesis is dedicated to my parents, wife, children, brothers and sisters for all the love,
support and encouragement they have always given me on my journey through life.

I
Acknowledgement
I would like to express my truthful thanks and deep appreciation to my supervisors, Dr Anne
Broderick and Dr. Suha Omar for their guidance, priceless input, assistance, encouragement,
insightful suggestions, and endless patience towards the end. Their brilliant contributions and
effective review of the work are also gratefully acknowledged.

My father gave me the greatest gift anyone could give another person, he believed in me. I
wish to thank him from the bottom of my heart. Mothers are the sweetest gift from God to us.
There is no way I can ever really thank my mother for all she does for me. Thanks for all the
things you have done for me.
To my wife and children, no man succeeds without a good woman behind him, thanks for
being such a wonderful wife to me and also for being the mother of my wonderful children.
To all my brothers and sisters, there is no time like the old times, when you and I were young,
thanks for the warm love you have given me.
Special thanks to all the participants for agreeing to participate in the study and for devoting
so much of their time to answering my questions and completing questionnaires.
Thank you to you all.

II
Abstract
The main aim of this study was to investigate current search behaviour among Saudi
consumers of travel services, to establish their attitudes towards, and adoption of online
search and booking processes. It also aimed to explore current experiences within travel
agencies of the adoption of online booking systems in the Saudi Arabian market. The study
relied on a multi-method research design, with a focus on using both qualitative and
quantitative data across three sequentially organised phases of data collection. Phase one
centred on in-depth interviews with Saudi travel agents; phase two adopted a combined
approach, using observation and semi-structured interviews, with a focus on getting a
comprehensive insight into Saudi consumer search behaviour. In phase three, the researcher
undertook a survey of internet adoption and search behaviour with a cross-section of Saudi
consumers, located in the UK (N=481).

Findings from the first phase demonstrated that Saudi Arabian travel firms continue to rely on
offline booking methods and have been relatively slow to adopt online systems. Key factors
influencing the adoption of online travel booking technology included attitudinal and cultural
factors and an absence of customer trust, security and privacy. The second phase results
indicated that information search and evaluation emerged as a single highly integrated
process, however behavioural elements within the process varied across individuals,
according to their search strategy and level of prior experience. In phase three, the key
relationships in the conceptual model were examined, notably the relationship between search
constructs and purchase intention. Only a few past studies have examined information search
and evaluation in relation to purchase in emerging markets. This study offers a more in-depth
perspective on search intention and information search and evaluation in the pre-purchase
stage for online travel products. Key insights have emerged on the nature of the relationship
between search intention, information search and evaluation and purchase intention through
the development of a more comprehensive conceptual framework than in prior studies. The
qualitative research demonstrated a) how search ability and search strategies were reflective
of confident and well-established search behaviour on the part of Saudi consumers and b)
gender and regional variations c) that the nature of information search and evaluation is
shaped by behavioural differences at an individual consumer level. The study also offers a
deeper understanding of the challenging perceptions that exist with regards to the slow
adoption of online travel processes among Saudi Arabian travel firms.
III
Table of Contents

Chapter One: Introduction

1.0 Introduction..........................................................................................................................2
1.1 Brief Theoretical Overview of Thesis..................................................................................2
1.1.1 Sector Focus of Research.............................................................................................4
1.2 The Significance of Research on Travel in the Saudi Arabian Context..............................4
1.3 Aims and Objectives of the Research..................................................................................7
1.4 Potential Contribution of the Research................................................................................7
1.5 Thesis Outline......................................................................................................................8

Chapter Two: Research Context

2.0 Introduction..................................................................................................................13
2.1 The Internet and the Online Travel Market.........................................................13
2.2 Overview of Tourism in Saudi Arabia................................................................15
2.3 Technology Challenges in the Saudi Arabian Travel Market..............................18
2.3.1 Technology Adoption in Saudi Arabia.........................................................................18
2.3.2 Challenges to technology adoption in Saudi Travel Market........................................19
2.4 Internet Usage for Travel Among Saudi Arabian Consumers.............................23
2.4.1 Focus of this Research..................................................................................................26
2.5 Summary..............................................................................................................26

Chapter Three: Literature Review of Key Theories

3.0 Introduction........................................................................................................................29
3.1 The Theories of Technology Adoption..............................................................................29
3.1.1 Rogers’s Diffusion of Innovations Theory (DOI)........................................................30
3.1.1.1 The Users of Technology Categories..................................................................31
3.1.1.2 Lead Users and Early Adopters..........................................................................31
3.1.1.3 The Early Majority, Late Majority and Laggards...............................................33
3.1.1.4 Gap between Early Adopters and Other Users...................................................34
3.1.2 Diffusion of an Innovation Process..............................................................................34
3.1.2.1.1 Features of the Innovation.......................................................36
3.1.3 Challenges in Aspects of Diffusion of Innovation Theory...........................................37
3.1.4 Technology Acceptance Model (TAM).......................................................................38
3.1.4.1 The Technology Acceptance Theory II (2).........................................................40
3.1.4.2 Unified Theory of Acceptance and Use of Technology.....................................41
3.1.4.3 The Technology Acceptance Theory III (3).......................................................42
3.1.4.4 Evaluation of the TAM model............................................................................43
3.2 Behavioural Perspectives Theories on Customer Adoption of the Internet.......................45
3.2.1 Theory of Reasoned Action (TRA)..............................................................................45
3.2.2 Theory of Planned Behaviour (TPB)............................................................................47
3.2.2.1 Evaluation of the Theory of Planned Behaviour.................................................48
3.2.3 The Extension of Theory of Planned Behaviour..........................................................49
3.2.3.1 Decomposed Theory of Planned Behaviour (DTPB).........................................49
IV
3.2.3.2 Pavlou and Fygenson’s Work on the Theory of Planned Behaviour..................50
3.2.3.3 Chen and Tung’s work on the Theory of Planned Behaviour............................51
3.3 Search Intention and Evaluation........................................................................................52
3.3.1 Search within the Traditional Decision Making Process.............................................52
3.3.2 Definition of Search Intention......................................................................................54
3.3.3 Search Intention in Past Online Studies.......................................................................55
3.3.4 Information Search and Evaluation..............................................................................56
3.3.4.1 The Transition from Traditional/Offline Information Search and Evaluation
Processes to Online Versions.............................................................................56
3.3.4.2 Influence of Information Search and Evaluation on Consumer Purchase
Intention..............................................................................................................59
3.4 Summary............................................................................................................................60

Chapter Four: The Development of a Conceptual Framework

4.0 Introduction.....................................................................................................................63
4.1 Introduction to Preliminary Conceptual Framework ........................................................64
4.1.1 Use of TPB and TAM as integrated behavioural perspective......................................65
4.1.2 Key Constructs in framework......................................................................................66
4.2 Attitude..............................................................................................................................67
4.2.1 Perceived Usefulness (PU) and Perceived Ease of Use (PEOU).................................69
4.3 Subjective Norms...............................................................................................................71
4.4 Perceived Behavioural Control (PBC)...............................................................................73
4.5 Perceived Convenience......................................................................................................75
4.6 Perceived Trust..................................................................................................................77
4.6.1 Perceived Risk..............................................................................................................78
4.6.2 Perceived Security........................................................................................................80
4.6.3 Consumer Privacy........................................................................................................81
4.7 Search Intention.................................................................................................................83
4.8 Information Search and Evaluation....................................................................................85
4.9 Purchase Intention..............................................................................................................87
4.10 Potential Moderating Variables....................................................................................87
4.10.1 Demographic Factors...................................................................................................88
4.10.2 Past Experience............................................................................................................89
4.10.3 Lifestyle: role of internet in daily life..........................................................................90
4.11 Summary......................................................................................................................91

Chapter Five: Research Methodology

5.0 Introduction........................................................................................................................94
5.1 Research Aims and Key Objectives...................................................................................94
5.2 Research Philosophy..........................................................................................................95
5.2.1 Value of Pragmatism in Travel Search Studies: Versatility.............................97
5.3 Nature of Inquiry................................................................................................................99
5.3.1 Inductive and Deductive Reasoning.................................................................99
5.3.2 Qualitative and Quantitative Research...........................................................102
5.1 Research Design and Strategy(Multiple Method Approach).........................104
V
5.3.3 Past Travel Studies used Multiple Research Approach.................................105
5.4 Data Collection Methods, Sampling and Research Instruments....................................107
5.5.1 Secondary Research.......................................................................................107
5.5.2 Phase One: Semi-Structured Interviews with Travel Managers....................108
5.5.2.1 Interview Planning....................................................................................110
5.5.2.2 Respondent Sample and data collection: Phase One................................112
5.5.3 Phase Two: Observation and Interview.........................................................113
5.5.3.1 Online Search Task Followed by Semi-Structured Interview..................114
5.5.3.1.1 Observation Sheet...................................................................115
5.5.3.1.2 Semi-structured Interview Schedule.......................................117
5.5.3.2 Respondent Sample - Phase Two..............................................................119
5.5.4 Phase Three: Survey on Search Behaviour....................................................120
5.5.4.1 Questionnaire Design ...............................................................................122
5.5.4.2 Respondent Sample - Phase Three............................................................133
5.5.5 Pilot Study......................................................................................................134
5.6 Anticipated Ethical Issues of Data Collection.................................................................135
5.7 Data Analysis Procedures................................................................................................137
5.8 Summary..........................................................................................................................138

Chapter Six: Research Findings from Phase One and Phase Two
6.0 Introduction..........................................................................................................141
6.1 Key Research Findings: Phase One.....................................................................141
6.1.1 Level of Internet Technology Adoption...............................................142
6.1.1.1 Perceived Usefulness and Perceived Ease of Use..............................142
6.1.1.2 Contextual Challenges factors...........................................................144
6.1.2 Customer Experience of Booking and Demographic Influences..........146
6.1.3 Summary of Phase One Findings: Implications for later phases of research...149
6.1.3.1 Lack of perceived usefulness..............................................................149
6.1.3.2 Patterns Relating to Privacy and Security of Online
Booking..............................................................................................149
6.1.3.3 Level of Engagement of Saudi Consumers in Online Travel
Activities............................................................................................151
6.1.3.4 Social Pressures (Norms) that Influence Adoption of Internet
Booking..............................................................................................151

6.2 Key Research Findings: Phase Two................................................................................153
6.2.1 Data Collection Process...................................................................................153
6.2.2 Search Strategies determined by search ability...............................................154
6.2.2.1 Search Strategy of Simplification......................................................155
6.2.2.1.1 Impact of Consumer Recommendations.....................157
6.2.2.2 Empowered Consumers: Use of Online and Offline
Channels.............................................................................................159
6.2.2.3 Variation between Travel Process in the KSA and the UK...............160
6.2.2.4 Information search and Evaluation patterns.......................................161
6.2.2.5 Individual Search Variations............................................................162
6.2.2.5.1 Education, Age, Gender and regional
variations......................................................................162
6.2.2.6 Summary of Phase Two Findings : Implications for Phase Three.....164
VI
6.2.2.6.1 Patterns Relating to Respondent Skill Level and
Perceived Behavioral Control......................................165
6.2.2.6.2 Simplification of Search Strategies: Implications for
Search intention construct............................................166
6.2.2.6.3 Implications for Information Search and Evaluation
construct……………………………………...............167
6.2.2.6.4 Potential Moderating Variables of Saudi
Consumers....................................................................169
6.3 Summary..........................................................................................................................170

Chapter Seven: Research Findings from Phase Three

7. Introduction......................................................................................................................173
7.1 Response Rate and Sample Characteristics...............................................................174
7.2 Data Screening...........................................................................................................177
7.3 The Structure of the Research Tool: Principal Component Analysis.......................178
7.4 Scales Reliability Analysis........................................................................................184
7.5 Normality and Intercorrelation in Scales...................................................................185
7.6 Association between Respondent characteristics and research dimensions..............187
7.6.1 Respondent categorical variables and research dimensions..........................187
7.6.1.1 Gender differences...................................................................................188
7.6.1.2 Regional differences................................................................................189
7.6.2 Respondent ordinal variables and research dimensions................................189
7.7 Proposed Research Model.........................................................................................192
7.8 Regression Model Analysis.......................................................................................193
7.8.1 Introduction and method choosing................................................................193
7.8.2 Confirmation of Hypotheses..........................................................................195
7.8.3 Multiple Regression analysis.........................................................................198
7.8.4 Results from Moderating variables................................................................200
7.9 Summary....................................................................................................................204

Chapter Eight: Discussion and Contribution of Study

8.0 Introduction.....................................................................................................................208
8.1 Discussion of Findings....................................................................................................208
8.1.1 Current technology adoption patterns in the Saudi travel context................209
8.1.1.1 Research Objectives of Phase One................................................209
8.1.1.2 Attitudinal and Cultural factors with impact on technology
adoption.........................................................................................209
8.1.2 Issues to Emerge in Relation to Search Behaviour...................................211
8.1.2.1 Research Objectives for Phase Two...............................................211
8.1.2.2 Importance of user skills in online in search patterns of Saudi
consumers......................................................................................212
8.1.2.3 Gender variations in Approach and Opportunities.......................213
8.1.2.4 Contradictory perspectives towards the use of online Technology
between Saudi travel firms and consumers....................................215
VII
8.1.2.5 Information search and evaluation as an interconnected
process..........................................................................................216
8.1.3 Examination of Relationships in the Conceptual Framework.......................217
8.1.3.1 Research Objective for Phase Three.............................................217
8.1.3.2 Relationship between Online Search Intention, Information Search
and Evaluation and Purchase Intention.........................................218
8.1.3.3 The Role of Perceived Convenience.............................................219
8.1.3.4 Perceived Trust..............................................................................220
8.1.3.5 The Role of Attitudes, Perceived Behavioural Controls and
Subjective Norms...........................................................................223
8.1.3.6 The Role and Strength of Independent Factors Contributing to
Search Intention.............................................................................225
8.1.3.7 The Role of Moderating Variables................................................227
8.2 Key Contribution of this Study.......................................................................................227
8.2.1 Theoretical Contribution................................................................................227
8.2.2 Contribution to Practice.................................................................................231

8.3 Managerial Implications for Travel Agents in Saudi Arabia..........................................232
8.4 Research Limitations.......................................................................................................235
8.5 Directions for Future Research........................................................................................236

9.0 References.................................................................................................................238
10.0 Appendices....................................................................................................277

VIII
List of Tables

Table 2.1: Internet Growth and Population Statistics..............................................................22
Table 4.1: The Effect of Moderators........................................................................................91
Table 5.1: Key Research Objectives........................................................................................95
Table 5.2: Strength and weakness of qualitative and quantitative research...........................103
Table 5.3: Interview Questions: Phase One...........................................................................111
Table 5.4: Interview Questions: Phase Two...........................................................................118
Table 5.5: Brief Overview of Key Sources............................................................................123
Table 5.6: Measurement items designed for Attitude............................................................124
Table 5.7: Measurement items designed for Perceived Usefulness.......................................124
Table 5.8: Measurement items designed for Perceived Ease of Use......................................124
Table 5.9: Measurement items designed for Perceived Behavioural Control........................125
Table 5.10: Measurement items designed for Trust...............................................................126
Table 5.11: Measurement items designed for Security..........................................................126
Table 5.12: Measurement Items designed for Privacy..........................................................126
Table 5.13: Measurement items designed for Risk................................................................127
Table 5.14: Measurement items designed for Search Intention.............................................127
Table 5.15: Measurement items designed for Purchase Intention..........................................127
Table 5.16: Measurement items designed for Subjective Norms...........................................128
Table 5.17: Measurement items designed for Perceived Convenience.................................129
Table 5.18: Measurement items designed for Information Search and Evaluation...............130
Table 6.1: The search intention construct’s items..................................................................167
Table 7.1: Sample Characteristics..........................................................................................175
Table 7.2: Internal Consistencies for Key Constructs............................................................182
Table 7.3: Reliabilities (Internal Consistencies) for Key Constructs.....................................185
Table 7.4: Descriptive Statistics for Key Variables...............................................................186
Table 7.5: Scales Correlation Coefficients.............................................................................187
Table 7.6: An Independent-Samples U-Test .........................................................................188
Table 7.7: An Independent-Samples H-Test .........................................................................189
Table 7.8: Kendall's Tau-B Correlation Coefficients for Ordinal Variables .........................191
Table 7.9: Key research hypotheses......................................................................................193
Table 7.10: Predictors for Search Intention............................................................................199
Table 7.11: Potential Moderators used in this study..............................................................201
Table 7.12: Results of Moderation (Age)...............................................................................202
Table 7.13: Results of Moderation (Education).....................................................................203
Table 7.14: Results of Moderation (The level of internet usage experience)......................204
Table 7.15: Results of Moderation (Online Travel Experience)...........................................204

IX