Predicting Online Travel Adoption Intention of an Indian Consumer: A SEM-Neural Network Approach

Chakravarthi Koundinya
2019 Theoretical Economics Letters  
Online channel has redefined the way businesses were conducted and many e-travel firms were the first to exemplify. The purpose of this paper is to determine the key factors that influence consumers' intention to adopt online channel for train travel. The extended model incorporates the basic ingredients of TAM, TPB and Shim's model along with several external variables such as trust, convenience and involvement. Data were collected from 514 online travel customers. In the first phase,
more » ... l equation modeling was employed to determine the significant variables and in the second phase, the neural network model was used to rank the relative importance of the significant predictors identified by SEM. The results indicated that Trust, Perceived Usefulness, Convenience and Website as significant factors. Among significant ones, neural networks suggested "convenience" as the highest importance. The study indicates few marketing approaches that can help travel service providers to formulate optimal marketing strategies. internet usage, higher the online shopping adoption [3] . With the changing dynamics among consumers turning more tech and internet-savvy, they have chance to experience better solutions [4] . Along with better experience, Consumer beliefs, opinions, perceptions, attitudes, trust, approach in embracing technology, value for convenience and one's risk taking ability all of these have made the situation more complex [5] . Internet usage in India has increased tremendously during the last decade with numbers soaring at 462 million by Jan 2018 [6] . Online Adoption intention is referred as the strength of the consumer's intention to perform specified purhasing behaviour over the online channel [7] . While consumer usage of the Internet for shopping is increasing, fewer people than anticipated actually purchase through the Internet [8]. As per [9], the online travel industry accounted for 54 percent share (Rs 1.10 lakh crore) of the digital commerce market, of which, domestic air ticket and railways booking continued to be among top contributors. Despite Indian railways adopting innovative means of promoting online ticketing, adoption is still not great and it's just around 58% and the effort is now to increase purchase of e-tickets [10] . Therefore, with untiring attempts of IRCTC to shift all the consumers to online channel, it's important to explore the factors that influence the online ticketing adoption, as it would help travel service providers to create appropriate marketing strategies, leading to higher online adoption rates [11] . The present study addresses the existing research gap by developing new research model used to predict consumers' behavior. To make the study more comprehensive and unique, along with well-known predictors like perceived
doi:10.4236/tel.2019.92026 fatcat:54rbg6hyavavvfjjpgwnq6t3qe