Customers’ Perceived Risks And Online Bookings Of Hotels In Umuahia Metropolis, Abia State

ABSTRACT

This research work evaluated customer’s perceived risk and online bookings of hotels in Umuahia metropolis. It was a descriptive survey research in which 4 specific objectives, 4 research questions and 4 research hypotheses guided the study. The researchers purposively use 18 hotels in Umuahia metropolis as its case study and 384 as its sample size. The research instrument used for data collection was a questionnaire on a 5 point rating scale, which was subjected to a reliability test that produce a reliability coefficient of 0.853, descriptive and inferential statistics on SPSS version 20.0 was used to analyze the data generated. Findings revealed that there is no significant relationship between financial risk and online booing of hotels in Umuahia metropolis and there is a significant relationship between financial risk and online booking of hotels in Umuahia metropolis. Secondly, there is no significant relationship between security risk and online booking of hotels in Umuahia metropolis and there is a significant relationship between security risk and online booking of hotels in Umuahia metropolis. Thirdly, there is no significant relationship between social risk and online booking of hotels in Umuahia metropolis and there is a relationship between social risk and online booking of hotels in Umuahia metropolis. Following the positive and insignificant relationship between online booking as a dimension of customer’s perceived risk, the study recommended that in booking of hotels online, customers should look out for secured and registered sites to avoid loss of money and other financial details and hotel owners introducing online platforms should also make sure that their sites are secured from intruders in other to protect their customers.

TABLE OF CONTENTS

Title page                                                                                                                                i

Certification                                                                                                                            ii

Approval page                                                                                                                         iii

Dedication                                                                                                                              iv

Acknowledgments                                                                                                                  v

Table of contents                                                                                                                    vi

List of figures                                                                                                                         ix

List of Tables                                                                                                                          x

Abstract                                                                                                                                  xi

CHAPTER ONE: INTRODUCTION                   

1.1    Background of the Study                                                                                              1

1.2.   Statement of the Problem                                                                                              3

1.3    Objective of the Study                                                                                                  5

1.4    Research Questions                                                                                                        5

1.5    Research Hypotheses                                                                                                     5

1.6    The Significance of the Study                                                                                       6

1.7    Scope of the Study                                                                                                        7

CHAPTER TWO

2.0       Introduction                                                                                                                8

2.1       Conceptual Framework                                                                                               8

2.1.1    Concept of Online Booking                                                                                        8

2.1.2    Benefits of an Online Booking System                                                                      10

2.1.3    Challenges of Online Booking                                                                                    13

2.1.4    Risk                                                                                                                             15

2.1.5    The concept of perceived risk                                                                                     16

2.1.6     Dimensions of perceived risk                                                                                    19

2.1.7    Types of perceived risk                                                                                               19                                                                                            

2.1.8    Factors that Influence Consumer Risk Perception                                                     21

2.2       Theoretical Review                                                                                                     24

2.2.1    Theory of Perceived Risk                                                                                           24

2.2.2    Technology Acceptance Model Technology Acceptance Model                               26

2.3       Review of Empirical Studies                                                                                      31

2.4       Summary of Literature Review                                                                                  37

CHAPTER THREE    

3.1 Introduction                                                                                                                      39

3.2 Research Design                                                                                                               39

3.3 Sources of Data                                                                                                                 39

3.4 Area of the Study                                                                                                                         39

3.5 The Population of the Study                                                                                             40

3.6 Sample Size Determination                                                                                              40

3.7 Data Collection Instrument                                                                                               41

3.8   Validity of the Research Instrument                                                                               41

3.9   Reliability of the Instrument                                                                                           41

3.10 Method of Data Analysis                                                                                                42

CHAPTER FOUR: RESULTS AND DISCUSSION

4.1 Introduction                                                                                                                      43

4.2 Presentation and Interpretation of Data                                                                                       43

4.2.1 Analysis of Study’s Survey Response Rate                                                                  43

4.2.2 Bio Data of the Respondents                                                                                         44

4.2.3 Analysis of Quantitative Data Relating to Financial Risks                                           45

4.3 Testing of Hypotheses                                                                                                      48

4.4 Discussions of Findings and implications                                                             54

CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATIONS

5.1 Introduction                                                                                                                      55

5.2 Summary of Findings                                                                                                       55

5.3 Conclusion                                                                                                                        55

5.4 Recommendation                                                                                                              56

5.5 Contribution to Knowledge                                                                                              56

5.6 Suggestions for Further Studies                                                                                       57

REFERENCES

LIST OF FIGURES

Fig 2.1.            A conceptual framework for perceived risk                                                   17

LIST OF TABLES

Table 4.1:    Questionnaire Distribution/ Return Response Rate                                            43

Table 4.2:    Descriptive Statistics of the Respondents                                                           44

Table 4.3:    Responses on the Influence of Financial Risk on Online Booking of Hotels

in Umuahia Metropolis                                                                                        46

Table 4.4:    Responses on the Influence of Security Risk on Online Bookings of Hotels

in Umuahia Metropolis                                                                                       47

Table 4.5:    Responses on Effect of Wasted time Risk on Online Bookings of Hotels in

Umuahia Metropolis                                                                                            48

Table 4.6:    Responses on Effect of Social Risk and Online Booking of Hotels in

Umuahia Metropolis                                                                                            49

Table 4.7:    Correlations Results between Financial Risk and Online Booking of Hotels

in Umuahia Metropolis                                                                                        50

Table 4.8:    Correlations Results between Security Risk and Online Booking of Hotels

in Umuahia Metropolis                                                                                        51

Table 4.9:    Correlations Results between Wasted Time Risk and Online Booking of

Hotels in Umuahia Metropolis                                                                            52

Table 4.10: Correlation Results between Social Risk and Online Booking of Hotels in

Umuahia Metropolis                                                                                            53