Kwee-Fah Lee, University Tunku Abdul Rahman, Selangor, Malaysia

Airlines face stiff competition and high operational costs. To earn profits, reducing cost is crucial. Cost can be reduced effectively by selling air tickets online. However, many travelers in developing countries remain hesitant to book flights online. This study investigates the influence of risk perceptions on consumers' online buying intention of air tickets in Malaysia. PLS-SEM was used to test the research model which treated perceived risk as a multidimensional, higher-order construct reflected by five risk dimensions. The results show that perceived risk has a negative influence on online buying intention of air tickets. It was also confirmed that perceived risk comprise office individual risk dimensions i.e. security, privacy, financial, performance and psychological risks. This study contributes to the perceived risk theory by conceptualizing perceived risk as a higher component model, and linking risk to buying intention in a developing market.

Keywords: perceived risk, air tickets, online, Intention, risk dimension

Suggested citation: Lee, K.F.(2018). The effect of multidimensional perceived risk on intention to buy air tickets online. Skyline Business Journal, Volume 14, No 1,pp 47-57.

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Lee, K.F.(2018). The effect of multidimensional perceived risk on intention to buy air tickets online. Skyline Business Journal, Volume 14, No 1,pp 47-57.