Researchbackground
Duringtheselastfew years,information and communication t ech no lo gy substantiallyincreasedthepossibilitiesofplaying,communicatingandmakingtransaction s,etc.
The Internet has transformed from a mere networking platform into a global transaction medium, significantly altering traditional purchasing methods Consumers are no longer bound by time or geography, allowing them to buy products anytime and anywhere This shift has led to the rise of electronic commerce (E-commerce), which encompasses the buying and selling of goods and services through electronic systems, particularly the Internet E-commerce has spurred innovations in areas such as electronic funds transfer, supply chain management, and online transaction processing Modern E-commerce often utilizes the World Wide Web, although it can also include other technologies like email It is categorized into business-to-business (B2B) transactions, which can be open to all interested parties or limited to specific participants, and business-to-consumer (B2C) transactions, exemplified by companies like Amazon.com A critical aspect of e-retail is its direct interactive channel, enabling seamless communication between people and businesses without time constraints.
Onlines h o p p i n g is thep r o c e s s wherebyc o n s u m e r s d i r e c t l y buyg o o d s orservicesfromasell erinreal- time,withoutanintermediaryservice,overtheInternet.O n l i n e shoppingisatypeofE- commerceusedforbusiness-to-business(B2B)andb u s i n e s s - t o - c o n s u m e r ( B 2 C ) t r a n s a c t i o n s S h o p p i n g o n I n t e r n e t becomesa n alt ernativeforconsumerssinceitismorecomfortablethanconventionalshoppingw h i c h usuallyattributedwithanxious,crowded,trafficjam,limitedtime,parki ngspaceandetc…(Yulihasrietal.2011).
The internet has become a crucial element in business strategies for purchasing goods, facilitating transactions among consumers, businesses, and between them However, the most significant success has been observed in the business-to-business (B2B) sector, while the business-to-consumer (B2C) domain has seen development focused on niche markets Many B2C sites have struggled financially, with some even shutting down, particularly in the sale of food and daily use products online, where few have achieved notable success According to the U.S Department of Commerce, total retail e-commerce sales reached significant figures in 2007, highlighting the evolving landscape of online shopping.
$136billion,anincrease of25.6%fromthep r e v i o us yearandanamazing207%i ncreasecomparedto2002.E- commercesalesasapercentageoftotalretailsalesalsocontinuedtoincreaseand,for2007,wer eat3.3%oftotalretailsales.Despitethecontinuedgrowthine- commerceandthepotentialforfuturegrowthinE- commerce,companieshavereportedproblemsinattractingnewcustomersandretainingexistingo n e s (Devaraj,Fan&Kohli2002)andfacechallengesinconvertingonlinevisitorstorealp urchasers(Chen2003).
Purchasingintentionisapsychologicalprocessofdecision- making(Engeletal.1990).Consumersaremotivatedbythefulfillment ofdemand stosearchrelevant i n f o r m a t i o n accordingtopersonalexperience andthee xternalenvironment Theybegintoevaluateandconsiderafteraccumulatingace rtainamountofinformation.Finally,theymakethedecisiononcertainproductsafterco mparisonandjudgment.
Thisi s k n o w n a s t h e “ p u r c h a s i n g decisionp r o c e s s ” o f c o n s u m e r s P u r c h a s i n g intentionistheprobabilityofcustomer’swillingnesstopurchase(Dod dsetal.1991).A n d thehigherperceivedvalue,themorepurchasingintention.Becauseofthe rapidg r o w t h oftheInternetanditsuseasachannelforshopping,today’sconsumersar ea b l e toshopfromanywhereatanytimewithjustafewclicksoftheirfingers.
Vietnam's e-commerce and IT industry are receiving significant attention and support from the government, highlighted by initiatives such as the establishment of the E-commerce Board, a new Internet management decree, participation in the E-ASEAN Framework Agreement, and reduced Internet access charges According to a report by VietnamNetCitizens (Cimigo 2011), Internet users in Vietnam represented 31% of the population in 2010, a figure comparable to countries like China, the Philippines, and Thailand In recent years, Vietnam has experienced rapid Internet development, positioning itself as a leader in the region and ranking among the top countries globally for Internet advancement.
Over 50% of the urban population in Vietnam had Internet connections in urban areas, according to a 2011 report by Cimigo The Vietnam E-commerce Report 2011, published by the Ministry of Industry and Commerce, revealed that 100% of surveyed enterprises were equipped with computers, with 98% connected to the Internet, primarily through broadband technology (ADSL) Notably, over 81% of businesses utilized emails for their operations, with this figure rising to 96% for large enterprises and 80% for small and medium-sized enterprises The survey indicated that 52% of enterprises accepted bookings via email, while 15% utilized website-based bookings Furthermore, businesses recognized the importance of online presence and actively promoted their brands through their websites, e-commerce portals, social networks, and advertising on popular search engines like Google and Yahoo.
S t a t i s t i c s showedthat38%ofenterprisesdevelopedtheirownwebsites,14%p ar ti ci p ated ine-commerceportals.
Vietnameseusersarebecomingmorefamiliarwithonlineshoppingactivitie sp r o v i d e d bydomesticandoverseawebsites.Overthepastfewyears,onlineshoppingenjoysst rongestgrowthrateincomparisonwithotherbusinesses.AccordingtotheV i e t n a m N etCitizensreportcarriedoutbyCimigo(2011),onlineshoppingvolumew a s doubleds ince2007.
Vietnamesecustomersarealsomorefamiliarwithelectronicpaymentsystems,w h i c h i s averyi m p o r t a n t f a c t o r ofonlineshopping.At thepresentmoment,customershavemanyoptionstochoosetheelectronicpaymentgatewa yswhentheyp u r c h a s e online.Somepaymentgatewaysarehighlytrustedbecomingpopul ar,sucha s NganLuong,BaoKim,VNPay,Payoo,OnePay…
Thankstothedevelopmentoft h e s e e l e c t r o n i c p a y m e n t gateways,V i e t n a m e s e i n d i v i d u a l s a n d e n t e r p r i s e s c o u l d e a s i l y developInternet- basedwebsitessellingandbuyingproductsandservices.Thesellingprocessisautomatedina hig herlevelastransactionscouldbetotallycompletedonline,replacingthepreviousmethodinwhicht heproductsareintroducedintheInternetandthecashiscollectedafterthedeliveryofproduct. Manybigf o r e i g n c o m p a n i e s a r e l o o k i n g f o r b u s i n e s s o p p o r t u n i t i e s i n t h e e- commercemarketofVietnam.Someofthebignamesintheworld,suchasGoogle,A l i b a b a , R a k u t e n , eBaya n d A m a z o n , q u i c k l y p r o m o t e t h e i r a p p e a r a n c e i n t h e market.InJune2012,GooglebecamememberofVietnamE- commerceAssociationa n d hadtheirplanstodeveloponlineshoppingactivitieswithothe rmembers.Theye x p e c t e d thattheycouldearn30millionUSDperyearinVietnammarket ,inwhichtheirpotentialcustomersaresmallandmedium-sizedenterprises.
TheofficialrepresentativeofAlibabawasannouncedwhileeBayjustbou ght2 0 % ofPeacesoftSolution’sshares,whoistheownerofthewebsitechodientu.com.Ama zonalreadyapproacheddomestice-commerceserviceproviderstoexplorethe opportunitiestobuythesharesorbecometheirpartners.Thiswouldbethecatalystf o r the developmentofVietname-commerce.
AlthoughthenumberofInternetusers is hugeandeverincreasing,the majorityo fthemonlyuseInternettolookforinformationandcommunications(Cimigo2011).I n t e r n e t playsanimportantroleinchoosingandbuyingtheproducts,butthetrustiss t i l l l o w f o r o n l i n e p a y m e n t methods.B u y i n g I n t e r n e t - b a s e d p r o d u c t s i s s t i l l n o t p o p u l a r inVietnam.
TheotherobstacleislowawarenessofVietnamesepeopleandtheunfriendlinesso fthesocialenv ironmentandbusinesspractices.Althoughenterprisesareveryactivei n applyinginformationtechnolo gyande- commerce,moretimespansandnecessarystepsareneededtoachieveadvancedbusinessandco nsumptionenvironment.
Problemstatement
The rise of e-commerce has led to a significant increase in the variety of products available for online purchase, including books, electronics, clothing, and even food items Despite the convenience and competitive pricing of online shopping, many consumers remain hesitant to make purchases, prompting an exploration into the factors influencing their decisions This study aims to understand the reasons behind the reluctance of Vietnamese consumers to embrace online shopping and identify the key factors that encourage or deter them from making purchases online By reviewing existing literature, particularly the work of Yulihasri et al (2011), which focuses on the factors affecting customers' buying intentions in the online shopping environment, this research seeks to provide insights into the online purchasing behavior of Vietnamese consumers.
Vijayasarathy(2003)toinvestigateinMalaysia.IntheoreticalframeworkofVijay asarathy(2003),factorsaffectingcustomer’sonlinebuyingintentionareusefuln ess,easeofuse,compatibility,p r i v a c y , security,n o r m a t i v e b e l i e f s , s e l f - e f f i c a c y , a n d a t t i t u d e H o w e v e r , i n V i e t n a m , w h a t a r e f a c t o r s t h a t a f f e c t c u s t omer’so n l i n e p u r c h a s i n g intention,thosearealsosimilarlyornot.Witht histhesis,authorwouldliketoclarifytheseissues.
Researchquestions andresearchobjectives
Inthisstudy,authorexaminesthefactorsaffectonlineshoppinginVietnam.Thes t u d y aimsa tansweringthebelow2researchquestions:
Theresearchobjectivesofthisstudyisconductedtoidentifyfactorsinfluencingattitudean dintentionofcustomerstowardsonlineshoppinginVietnam.Itseekstoexaminea n d u n d e r s t a n d w h e t h e r f a c t o r s s u c h asu s e f u l n e s s , e a s e o f u s e , c o m p a t i b i l i t y , privacy,security,n o r m a t i v e b e l i e f s , s e l f - e f f i c a c y , a t t i t u d e i n f l u e n t customers’purchaseonlineintention.Thespecificobjec tivesare:
Toexaminetherelationshipbetweenself- efficacyandcustomer’sonlinep u r c h a si n g intention.
Significancesoftheresearch
Theresults ofthestudy arepracticallymeaningful for e- commerceinVietnam.A s s i s t managersandtradersofInternet-basedproducts/ servicestomasterthemainf a c t o r s influencingonlineshoppingintentionofVietn amesecustomers.Thisstudyh el p s eretailersadjusttheire- retailingstrategiesbylearningthisresearchresults.Theexpectationo f t h i s s t u d y is top r o v i d e r e l e v a n t r e s u l t s t o t h e e- retailc o m p a n y toe n g a g e t h e c us t o m e r s t o sh o p o n l i n e a n d t o h e l p t h e s e l l e r s t o k e e p t h e i r c u r r e n t customersandattractnewpotentialones.
Thisstudywillalsoprovidecompulsoryknowledgeforpeoplewhoaredoing t h e i r e- commercebusinessinVietnam,whichisnewandlackofofficialstudiesont h is fieldinVi etnam.
Researchscope
Second,toensurethatthesurveyedcustomerscouldbeabletoprovideadequatei n f o r m a t i o n forthestudy,onlycustomerswhoeducatedfromhighschool,university,c o l l e g e waschosent oparticipateinthesurvey.Thischoiceofpopulationandsampleframemakesthestudyfeasible( giventimeandresourcelimitation)byfacilitatingo n l i n e surveymethod.
Researchstructure
Chapter5: Conclusion;a u t h o r providesp r a c t i c a l implication,a n d p o s s i b l e d i r e c t i o n s forfutureresearch.
Thischapterpresentsthetheoriesbehindcustomerintention.Itwillalsodiscusso n l in e p urchasingintentionofcustomer inordertoidentifyinfluencingfactors.Ther e s e a r c h frameworkandhypotheseswillalsobe proposedinthischapter.
E-commerce
The Internet has significantly transformed our lives, with electronic commerce (e-commerce) being one of its most impactful innovations (Yu and Abdulai, 2000) E-commerce refers to transactions conducted online, where buyers visit sellers' websites to order products, make payments, and receive goods physically (Anil, 2000) This digital marketplace is crucial for the growth of the Internet, as it enhances consumer access to information on product attributes, comparative pricing, availability, and overall value (Brown, Pope, and Voges, 2003) Furthermore, e-retailing is expanding globally, including in developing countries, driven by the technological advancements offered by the Internet, which may soon dominate shopping practices (Oinas, 2002).
TheoryofReasonedAction(TRA)
TheTheoryofReasonedAction(TRA)isamodelthatfindsitsoriginsinthef i el d o f s o c i a l p s y c h o l o g y T h i s m o d e l d e v e l o p e d byF i s h b e i n a n d A j z e n
( 1 9 7 5 ) definest h e l i n k s b e t w e e n b e l i e f s , a t t i t u d e s , norms,i n t e n t i o n s , a n d b e h a v i o r s o f individuals.Accordingt o t h i s model,a p e r s o n ’ s b e h a v i o r i s d e t e r m i n e d byi t s b e h a v i o r a l intentiontoperformit.Thisintentionisit selfdeterminedbytheperson’sattitudesandhissubjectivenormstowardsthebehavior.Fis hbeinandAjzen(1975, p.302)definethesubjectivenormsas“theperson’sperceptionthatmostpeoplewho areimportanttohimthinkheshouldorshouldnotperformthebehaviorinquestion”( F i s h b e i n
Thistheorycanbesummarizedbythefollowingequation:BehavioralInten tion=Attitude+Subjectivenorms AccordingtoTRA,theattitudeofapersontowardsabehaviorisdeterminedbyhisbelief sontheconsequencesofthisbehavior,multipliedbyhisevaluationofthesec o n s e q u e n c e s Beliefsaredefinedbytheperson’ssubjectiveprobabilitythatperformingapartic ularbehaviorwillproducespecificresults.Thismodelthereforesuggeststhatexternalsti muliinfluenceattitudesbymodifyingthestructureofthep e r s o n ’ s beliefs.Moreover,beh avioralintentionisalsodeterminedbythesubjectivenormsthatarethemselvesdeterminedby thenormativebeliefsofan individualandbyhismotivationtocomplytothenorms.
TRAalsoclaimsthatall otherfactorswhichinfluence thebehavioronlydosoinanindirectwaybyinfluencingtheattitudeorsubjectivenorms.Fish beinandAjzen( 1 9 7 5 ) refertothesefactorsasbeingexternalvariables.Thesevaria blescanbeforexample,thecharacteristicsofthetasks,oftheinterfaceoroftheuser,t hetypeofd e v e l o p m e n t implementation,thepoliticalinfluences,theorganiz ationalstructure,etc (Davis,Bagozzi&Warshaw1989).Ameta- analysisontheapplicationofthetheoryofreasonedactionshowedthatthemode lcanproducegoodpredictionsof choicesmadebyanindividualwhenfacingseveralalternatives(Sheppard,Hartwick
TheoryofPlannedBehavior(TPB)
The Theory of Planned Behavior (TPB), developed by Ajzen (1985, 1991), posits that individual intention is a key determinant of behavior execution This theory extends the earlier Theory of Reasoned Action by incorporating perceived behavioral control, which reflects an individual's assessment of available resources, skills, and opportunities, as well as their perception of the importance of achieving specific outcomes Perceived behavioral control is closely related to Bandura's concept of self-efficacy, influencing an individual's choice of activities, preparation, and effort exerted Research by Ajzen and Madden (1985) indicates that perceptions of control, along with attitudes and subjective norms, significantly impact behavioral motivation The TPB suggests that intentions, combined with perceived control, jointly influence behavior, with stronger intentions correlating with a higher likelihood of performing the behavior Ultimately, the central factor in TPB is the individual's intention to act, which serves as a motivational indicator of their commitment to the behavior.
TechnologyAcceptanceModel(TAM)
BasedonthetheoryofreasonedAction,Davis(1989)developedtheTechnologyAccep tan c eModelwhichdeals morespecifically withthepredictionof theaccept abi li ty ofaninformationsystem.Thepurposeofthismodelistopredictthea cc ep t ab il i t y ofatoolandtoidentifythemodificationswhichmustbebroughttothes y s t e m inordertomak eitacceptabletousers.AkeypurposeofTAMistoprovidea b a s i s f o r t r a c i n g t h e i m p a c t o f e x t e r n a l f a c t o r s o n i n t e r n a l b e l i e f s , a t t i t u d e a n d intention,moreTA Mconsistthattwoparticularbeliefs,perceivedusefulness andp e r c e i v e d e a s e o f u s e a r e p r i m a r y r e l e v a n c e f o r computera c c e p t a n c e b e h a v i o r s ,
( D a v i s , Bagozzi&Warshaw1989).Usefulness,easeofuseisexpectedthattheycanb einflu enceindividual’sattitudeatusingthatsystem;theyalsoexplaindifferenceintention tousethatsystem.
Perceivedusefulnessisdefinedasbeingthedegreetowhichapersonbelievestha ttheuseofasystemwillimprovehisperformance.Perceivedeaseofusereferstothedegree t o w h i c h ap e r s o n b e l ie v e s th at t h e use o f a systemwillbe ef fo rt le ss Severalfacto rialanalysesdemonstratedthatperceivedusefulnessandperceivedease ofu s e c a n b e c o n s i d e r e d a s t w o d i f f e r e n t dimensions( H a u s e r & S h u g a n 1 9 8 0 ; L a r c k e r &Lessig1980).
The Technology Acceptance Model, rooted in the Theory of Reasoned Action, asserts that an individual's intention to use an information system is influenced by their attitude towards the system and their perception of its utility According to Davis, while an individual's attitude plays a significant role, it is also shaped by the perceived impact of the system on their performance Consequently, even if an employee is initially resistant to a new information system, they are likely to adopt it if they believe it will enhance their work performance Furthermore, the model emphasizes a harmonious relationship between ease of use and perceived usefulness, suggesting that how easy or difficult a system is to use directly affects users' perceptions of its utility.
Vijayasarathy(2003)furthermorementionedasetofvariablesinTAMpossiblef o r expl ainingtechnologyadoptionatwork,whereusageatthetimeoftechnologyinmostcases,compulsor yitsuser,otherwisewascompelled.Ingoodarrangement,feltu s e f u l n e s s andeaseofusearego odforpossibledominantpredictor.
Figure2.3.Technologyacceptancemodel(adoptedfromDavis,Bagozzi&Wa rsh aw1989)
SalientBeliefsof UsefulnessandEaseofUse
According to Davis (1989), perceived ease of use significantly influences an individual's attitude through two main mechanisms: self-efficacy and instrumentality Self-efficacy, a concept developed by Bandura (1982), suggests that the easier a system is to use, the greater the user's sense of efficacy An easy-to-use tool empowers users, giving them a sense of control over their actions (Lepper, 1982) This sense of efficacy is a key factor in intrinsic motivation and illustrates the direct link between perceived ease of use and attitude Additionally, perceived ease of use can enhance a person's performance instrumentally, as users expend less effort with user-friendly tools, allowing them to allocate energy to other tasks (Davis, 1989).
ItishoweverinterestingtonotethattheresearchpresentedbyDavis(1989)tov al i dat e h i s model,d e m o n s t r a t e s t h a t t h e l i n k b e t w e e n t h e i n t e n t i o n t o u s e a n i n f o r m a t i o n systemandperceivedusefulnessisstrongerthanperceivede aseofuse.In otherhand,usefulnesswassignificantlymorestronglyassociatedto usagethanw a s easeofuse.
Ramayah,AafaqiandJantan(2003)foundperceivedusefulnessandperceivede a s e ofusehavesignificantimpactsstudent’sacceptanceandusageofcourseonlineamongh i g h e r e d u c a t i o n i n s t i t u t i o n s t u d e n t a n d w h e n p e r c e i v e d e a s e o f u s e a n d perceivedusefulnessarecombinedtogetherwasfoundthatperceivedusefulnessactsa s part ialmediator.
SalientBeliefsofCompatibility,PrivacyandSecurity
ChauandHwa(2001)identifiedcompatibilityasanecessaryfactorforinn ovationadoptionalsoincludedinthedecomposedmodel.Thee f f e c t ofc o m p a t i b i l i t y onusertechnologyacceptancedecisionshasbeenreportedbymanyp r e v i o u s studiesreportedastrongrelationshipbetweencompatibility andrelative a d v a n t a g e K a r y a n n i ( 2 0 0 3 ) f o u n d a l s o t h a t c o m p a t i b i l i t y was s u c c e s s f u l i n d ist in g u i sh i n g betweenWebshopperandnon- shopper.Anil(2000)explainedthat
Internet shopping activities often involve various methods of processing personal data, making the protection of privacy crucial Personal data must be handled with care and used only for legitimate purposes, ensuring it is not disclosed to unauthorized individuals or processed without the consent of the individual concerned According to Fatimah (2000), the processing of personal data should adhere to specific conditions Ramayah, Dahlan, Teck, and Aafaqi (2003) highlighted that the primary barrier to the adoption of e-retail is rooted in security and privacy concerns Additionally, technological advancements are necessary to reassure users about their security and privacy, which is essential for the growth of internet shopping.
Security concerns are a primary reason why web users hesitate to make online purchases Udo (2001) highlights the close relationship between security and privacy, noting that while privacy pertains to how companies handle consumer data, security addresses the risk of accidental data breaches by third parties, such as hackers Salim (2000) emphasizes that future threats may come from external sources that are difficult to identify Consumer privacy issues are longstanding, with individuals increasingly worried about how their personal data is utilized by both governments and businesses Internet users seek assurance that their privacy is safeguarded, and it is crucial for the government to protect consumer privacy and security to foster the growth of online shopping, as noted by Yu and Abdulai (2000).
SalientBeliefsNormative-BeliefsandSelf-Efficacy
Ajzen(1991)mentionednormative- beliefsincludethreekindsofsalientbeliefsaredistinguished:behavioralbeliefwhichareas sumedtoinfluenceattitudestowardb e h a v i o r , n o r m a t i v e b e l i e f s w h i c h c o n s t i t u t e t h e u n d e r l y i n g d e t e r m i n a n t s o f subjectiven o r m s a n d controlbeliefswh ichprovidethebasisf o r perceptionsofb e h a v i o r a l c o n t r o l B u d d ( 1 9 8 5 ) f o u n d a l s o p e r s o n a l n o r m a t i v e - b e l i e f s si g n i f i c a n t l y contributetothetheory ofreason’spredictivepower,avariablewhichmediatesther e l a t i o n s h i p betweenattit udes,subjectivenormandintention.
Psychologist Albert Bandura (1982) defined self-efficacy as an individual's belief in their ability to succeed in specific situations, significantly influencing how they approach goals, tasks, and challenges According to Bandura's theory, individuals with high self-efficacy perceive difficult tasks as challenges to master rather than obstacles to avoid The Theory of Planned Behavior integrates self-efficacy beliefs with perceived behavioral control within a broader framework that connects beliefs, attitudes, intentions, and behaviors (Ajzen, 1991) Self-efficacy is linked to various beliefs and behaviors (Bandura, 1986) and is considered a crucial motivational factor that affects individual emotions, effort, persistence, and overall motivation (Gist, 1989) Furthermore, self-efficacy plays a significant role in decision-making related to computer usage and adoption (Davis, 1989).
Researchmodel
Secondly,inthismodelanintegratedmodelofthreemodelssuch as:TAM,t h e o r y ofreasonedaction(TRA)andTPB.Itindicatesthatinadditiontoth etwosalientbeliefsthatcomprisethecoreTAM(usefulnessandeaseofuse),t h r e e o t h e r b e l i e f s s h o u l d b e r e l e v a n t t o s h o p o n i n t e r n e t ( c o m p a t i b i l i t y , p r iv a cy a n d s e c u r i t y ) F u r t h e r m o r e , n o r m a t i v e - b e l i e f s , a keyv a r i a b l e o f T R A , a n d self- efficacy,w h i c h i s a n i m p o r t a n t c o m p o n e n t o f T P B , a r e com binedtoprovideamorecompletesetoffactorsthatcouldshowsignificantrol einpredictingcustomer’sintentiontoshoponline.
Thisthesis isare pl ica ti on re sear ch A u t h o r u s e d rese ar ch m o d e l ofp r e v i o us study,Vijayasarathy(2003)toinvestigateinVietnam.Theoreticalframeworkofthisr e s e a r c h isasfollows:
Usefulness:Inthecontextofon- lineshopping,usefulnessistheextenttowhicha consumerbelievesthaton- lineshoppingwillprovideaccesstousefulinformation,f a c i l i t a t e comparisonshopping,a ndenablequickershopping.
Compatibility:c o m p a t i b i l i t yi s d e f i n e d a s t h e e x t e n t tow h i c h a c o n s u m e r b eli ev es t h a t s h o p p i n g o n l i n e f i t s / m a t c h e s h i s / h e r l i f e s t y l e , n e e d s , a n d s h o p p i n g p r ef er en ce.
Security:Aconsumer’sbeliefaboutsecurityaffordedontheInternetisco n si d er ed salient,s i n c e h i s / h e r c o m f o r t l e v e l w i t h t r a n s m i t t i n g c r e d i t - c a r d i n f o r m a t i o n iscrucialfortheconsummationofanonlineretailtransaction.Fo rthisstudy,securityisdefinedastheextenttowhichaconsumerbelievesthatm akingpaymentsonlineissecure.
NormativeBeliefs:Inthisstudy,normativebeliefsisdefinedastheextenttow h i c h aconsumerbelievesthatpeoplewhoareimportanttohim/ herwouldrecommendthattheconsumerengageinonlineshopping.
Self–Efficacy:Inthisresearchmodel,self–efficacyisdefinedasaconsumers’s e l f – assessmentofhis/hercapabilitiestoshoponline.
Thisc h a p t e r o u t l i n e s t h e r e s e a r c h m e t h o d o l o g y u s e d t o t e s t t h e hypothesesd e v e l o p e d inchaptertwo.Thecontentofthischapterincludes:researchdesign,pilotstudy,measurement,researchsampling,collectingdata,datacleaning,met hodsofd a t a analysisandsummary.
Researchdesign
Firstly,inordertoanalyzeconsumers’purchaseintentioninVietnam.Step1ofp i l o t te stwascarriedoutbytranslatingthequestionnairefromthepreviousstudyintoVietnamese.Th e p r e v i o us studywasperformedin M a la y s i a T h e t r a n s l a t i o n was performedindepe ndentlyby2people.Thepurposeofthisstepistocheckthecontenta n d meaningofwordswhich wereusedinthemeasurementscales.Basedonther esu lts, thedraftquestionnair ewouldbeadjustedtoprepareforthenextstepofpilottest.
Step2isconductedusingonlinesurveymethodtotesttheclarity ofthesurveyq u e s t i o n s Thissurveywithasmallsampleofabout20intervieweesto ensurethatthecontentofthequestionstobeunderstoodliterally,thecontentsofthestudy.T hef eed b a ck a n d r e s p o n s e s h a v e b e e n u s e d t o a d j u s t a g a i n Based o n t h e r e s u l t s , n e c e ss a r y adjustmentsweremadeandthefinalquestionnairecouldbe completedfort h e mainstudyinnextstep.
Afterthepilotstudy,themainstudywasconductedusingonlinesurveymethodsupported byGoogleDocs(onlinew e b - b a s e d s u r v e y a t d o c s g o o g l e c o m ) T h e p u r p o s e s o f thisstudywereto assessthemeasurement scales,totestthehypothesesandtoconfirmtheproposedresearchmodel.
Withonline sur ve y, t h e respondent c o m p l e t e d th e q u e s t i o n n a i r e wi th ou tassistanceo f a n i n t e r v i e w e r O n l i n e s u r v e y w a s s e l e c t e d a s i t p r o v e d t o b e a n appropriateresearchmethodforthisstudy.Ithasseveraladvantagesovertra ditionalsurveys:n o t r e s t r i c t e d t o a p a r t i c u l a r g e o g r a p h i c a l l o c a t i o n , l o w e r c o s t s , f a s t e r responses( S h a n k a r eta l 2 0 0 3 ) , moree ff ect iv e ini d e n t i f y i n g ands ee k i n g o n l i n e shoppers(Szymanski&Hise2000),andmoreinteresting(Edmonson1997).
Pilotstudy
Whenthetranslationofthequestionnairewascompleted,thepretestorcalled a l p h a testwouldbecarriedoutwiththeparticipationof2peoplestudyinginthesameMBAcourse whoareexperiencedinonlineshopping.Thecommentsrelatedtothetranslationofthequ estionnairew e r e m a i n l y s u g g e s t i o n s c o n c e r n i n g w o r d s a n d p h r a s e s thatmakethetranslationsbetterandthequestionsmoreunderstandableforVietnames erespondents,e.g.“Internetlàmchotôimuahàngnhanhchóng”revisedt o “Internetgiúptô ihoànthànhviệcmuahàngnhanhchóng”,“HọcsửdụngInternetc h o việcmuasắmrấtdễđốiv ớitôi”revisedto“TôicảmthấyhọcsửdụngInternetchoviệcmuasắmrấtdễ”,“Sửdụnginte rnetmuahàngrấtbựcmình.”revisedto“Tôic ảmthấykhóchịukhisửdụngInternetđểmuahàng
Aftertherevisionfinished,theauthorhadthefinaldraftquestionnaire.Authorc o l l e c t e d pilotdata fr om 20r esp on den ts viaG o o g l e Docs T he respondents wereen couraged tomakecommentsonanyquestionsthattheythoughtwereambiguo uso runclear.Someminorwordingmodificationsandmeasurementscalesadjustmentsw e r e madeas a r e s u l t o f t h i s p r o c e s s A f i n a l v e r s i o n o f t h e q u e s t i o n n a i r e s i s i nAppendix1ofthisstudy.
Measurement
In a study by Vijayasarathy (2003), adjustments were made to align with the research environment in Vietnam The questionnaire comprised three sections: the first included 22 items categorized into nine groups—Usefulness, Ease of Use, Compatibility, Privacy, Security, Self-Efficacy, Attitude, Intention, and Normative Beliefs—where respondents rated their agreement on a seven-point Likert scale from "strongly disagree" to "strongly agree." The second section examined respondents' Internet usage, including usage time and online purchases, while the third section gathered demographic information such as gender, age, marital status, income, and education level Measurement scales are detailed in Table 3.1.
Use1 TheInternetenables(willenable)metocompletes h o p p i n g quickly.
Use3 TheInternetgives(willgive)meaccessto usefulsho pp in g information.
Ease1 Learningt o u s e t h e Internetf o r s h o p p i n g w as(wouldbe)easyforme.
Ease2 Ib el ie ve t h a t Internets h o p p i n g i s (willbe)cumb ersome/not veryefficient.
Ease3 UsingtheInternetf o r s h o p p i n g is ( w i l l be)frustr ating.
UsingtheInternettoshopforproduct/ servicesiscompatible(willbec o m p a t i b l e ) w i t h t h e wayI liketo shop.
Comp2 UsingtheInternettoshopfits(willfit)withmylifes tyle.
Self1 Iam(expecttobecome)proficient/ beablei n u s i n g theInternetforshopping.
Self2 Ifell(wouldfeel)confidentt h a t I canu s e t h e Intern etforshopping.
7 Attitude Att1 UsingtheInternetf o r sh op pi ng is (wouldb e ) a g oodidea.
Int1 Iuse(intendtouse)theInternetfrequentlytodomys hopping.
Int2 Iu s e (intendt o use)t h e Internetw h e n e v e r appro priateto doshopping.
Pleaseindicatetheprobabilitythatyouwillshopus i n g theInternetinthenearfuture.(Anchoredby1 - v e r y improbableand7-veryprobable)
Researchsampling
Targetpopulation
Thetargetpopulationofthisresearchisthecustomerswhoareusedonlineac countstoshoponline,takeonlineservices,peoplewhohaveknowledgeaboute- commerceorshoppingonlineandwilluseditinthefutureandhaveeducationl e v e l fr omHighSchooltoDoctorofPhilosophy.
Samplesize
AdatasetisconsideredtobesuitableforExploratoryFactorAnalysiswhent h e sa mplesizeshouldbeatleast50,atbest100andtheobservations:itemsrate shouldbe5:1(Hairetal.2006).Itmeansthateachitemwouldrequireatleast5o bserv atio ns. n>100samplesandn=5k(withk=thenumberofvariables).
Inaddition,forstandardmultipleregressionanalysis,therequiredsampleisr e c o m m e n d e d byGreen(1991)is: n>50+8m(withm=numberofindependentvariables) Thereare7independentvariablesinthisresearch.Sotheminimumsamplere q uiredtorunmultipleregressioninthisstudyis:106
Collectingdata
AsmentionedinthemethodologysectionoftheChapter1,theauthorusedonlines u r v e y t o o l o f G o o g l e D o c s ( d o c s g o o g l e c o m ) i n o r d e r t o s u r v e y t h e r e s e a r c h subjects.TheGoogleonlinesurveyallowsrespondentsansweringthequestionnaire o v e r theInternet.TherearesomeadvantagesofcollectingdatafromGoogleDocs:
Thea n s w e r s o f t h e q u e s t i o n n a i r e w o u l d b e a u t o m a t i c a l l y u p d a t e d i n t h e spreadsheet applicationofGoogleDocs in theformofencoded data,so thattheerrorsofdatainputtingcouldbeminimized.
Googleonline su rv ey alsoen ab les interviewers to download t he res ul tof surveysintheExcelformatting(.xls,.xlsx),sothatthedataanalysissoftwarec o u l d beeasilyused(e.g.SPSS).
Incasetheoption“required”wasformedinthequestionsraisedbyGoogleo n l in esurvey,respondentswouldbeaskedifanyanswerwasmissed,sothatt h e missingofq uestionswouldbeavoidedinthestepofdatacleaning.
DataCleaning
ThankstoonlinesurveytoolofGoogleDocsforcollectingdataofthisstudy,thef r e q u e n t err orsofdatacleaningcouldbeavoided(e.g.missingdata,invalidinputting data…).Web-basedsurveys requirethe leastamountofdata cleaning (Sue
&Ritter2007).A l l o f q u e s t i o n s w e r e p r e - d e f i n e d multiplec h o i c e s q u e s t i o n s , w h e r e t h e r e s p o n d e n t s hadtos electthepredefinedanswers.Thus,datacleaningwasmainlydonef o r a l l q u e s t i o n s T h e a u t h o r a l s o r e v i e w e d t h e r e v e r s e - s c o r e d q u e s t i o n s t o d o u b l e checkiftheywerelogicallyanswered.Basedonthee valuationcriteria,thea u t h o r e l i m i n a t e d 1 i r r e l e v a n t r e c e i v e d q u e s t i o n n a i r e s , b e c a u s e t h e a n s w e r s onlyresp on ded withonesinglevalueforallquestions. Becausetheauthorput“required”o pt io n forallquestions,therespondentcouldnotsub mitthesurveyifallquestionsh a d notbeenfullya n s w e r e d , meaningtherewerenop ossiblemissing- answerr e s p o n s e Finally,304usableresponsesweredrawnfromthetotalof305re ceivedresponses.
Methodsofdataanalysis
Reliabilityassessmentofmeasurementscales(Cronbach alpha)
Reliability refers to the consistency of results obtained from repeated measurements (Malhotra, 1996) A common approach to assessing reliability is through internal consistency, which evaluates the homogeneity among items (Cooper & Schindler, 2006) The Cronbach alpha coefficient is a widely used statistic for measuring internal consistency across a set of items (Schumacher & Lomax, 2004) This method helps analysts eliminate irrelevant variables and focus on significant ones Items with item-total correlations of 0.30 or higher are considered qualified (Nunnally & Bernstein, 1994) According to Nunnally and Bernstein, a Cronbach alpha of 0.60 or above indicates acceptable reliability, while coefficients ranging from 0.70 to 0.90 are deemed good.
ExploreFactorAnalysis(EFA)
Contentvalidityisusedtoassessthecorrespondencebetweenindividualitemsa n d theconcep t(Hairetal.2006).Theobjectiveistoensuretheselectionofscaleitemsincludetheoreticaland practicalconsiderations.
Factor analysis is a multivariate statistical method aimed at identifying the structure within a set of observed variables It is an interdependence technique that considers all variables simultaneously (Hair et al., 2006) According to Hair et al (2006), factor analysis can be approached from either an exploratory or confirmatory perspective Exploratory factor analysis (EFA) is typically used when the underlying dimensions of a dataset are unknown, while confirmatory factor analysis is suitable for testing hypotheses about a pre-established dataset structure After evaluating the reliability of the scale using Cronbach's alpha, the author employed EFA to assess scale validity, as well as to downsize and summarize the data This method aids in identifying the necessary collection of variables for the study and uncovering relationships between them.
MultiLinearRegression(MLR)
MultipleLinearRegressionanalysiswillbeusedtotestthehypothesesinthisstudy.M u l t i p l e r e g r e s s i o n s w i l l d e t e r m i n e t h e s i g n i f i c a n t r e l a t i o n s h i p b e t w e e n d e p e n d e n t andindependentvariables,thedirectionoftherelationship,thedegree o ftherelationshipandstrengthoftherelationship(Sekaran2006).Inthisstudy,itw as e m p l o y e d w i t h E N T E R m e t h o d t o e x a m i n e t h e i n f l u e n c e o f i n d e p e n d e n t f acto r sonspecificdependentfactorbycarefullyconsideringtheweightofeac h respondentvariable.Regressioninputswerethescoresofeachscale,thescorewascomputedbyth emeanvalueofobservedvariablesineachscale.
Summary
Thischaptershowstheresearchmethodologyu s e d totestthehypothesesd e v e l o p e d inchaptertwo.Theresearchwasconductedintwomainstages:pilotstudyandmainstudy.Thep ilotstudyusedqualitativemethodtoadjustthequestionnairef r o m previousstudyinor dertoappropriatewithresearchenvironment.Mainstudyw a s a c c o m p l i s h e d by q u a n t i t a t i v e methodu s i n g o n l i n e q u e s t i o n n a i r e T h e q u e s t i o n n a i r e s weredistributed viaGoogleDocs totheresearch’s subjects.Therew er e t o t a l o f 3 0 4 r e s p o n s e s s u i t a b l e f o r t h e r e s e a r c h T h e a u t h o r u s e d C r o n b a c h alpha’scoefficientsandEFAtoverifythereliabilityandvalidityofthemeasurementsc ales.Inaddition,multiplelinearregressionanalysiswasthemethodusingtotestt h e propo sedmodelandhypothesesoftheresearch.Alldataanalyzingtechniqueswerepr ocessedbySPSSsoftware(version20.0)
Chapter4givesanoverviewoftheresultsfromdataprocessing.Thischapter w i l l discussabouttheanalysisofdatarelatedtotheevaluationofmeasurementscales,r e s e a r c h mo dela n d h y p o t h e s e s D a t a d e s c r i p t i o n p r e s e n t s ano v e r v i e w o f r e sp on dent’s socio- demographicinthissurvey.Next,authorassessthereliabilityandv a l i d i t y ofscalethroughCr onbachalphacoefficientsandEFA(ExploratoryFactorAnalysis)method,testingther esearchmodelandhypotheseswithcorrelationanalysisandmultilinearregressionanalysis.SPSSsoftwareversion20.0wasthetoolu s i n g forthisdataanalyzingprocess.
Descriptionsofsample
ThesubjectofthisresearchareVietnamesepeoplewhoareusedonlineaccountst o shoponline,t akeonlineservicesregardlessoftheiragesandgeographicallocationsor people who haveknowledgeabout e-commerceor shopping online and will useditinthefuture.TherespondentshaveeducationlevelfromHighSchooltoDoctorofPhilos ophy.
Out of 304 qualified respondents, 51.6% were male and 48.4% were female, with the majority (52%) aged between 25 to 34 years The age group of 45 to 54 had the fewest respondents, accounting for only 0.3% Regarding educational qualifications, 54.9% of respondents held a university degree, while 18.4% had a master's degree, and 1% had a Doctor of Philosophy Additionally, 25.7% had education levels below a university graduation In terms of monthly income, 45.1% of respondents earned less than 5 million VND, and 25.7% fell within the 5 to 10 million VND income bracket, with the remaining groups making up 29.2% Detailed characteristics of the qualified samples are further outlined in Table 4-1.
Reliabilityandvalidityofthemeasurementscale
Reliabilitytesting(CronbachAlpha)
TheCronbachalphawasusedtomeasureinternalreliabilitybyunitweightingitemswithsa lientloadingsinafactor.Thecoefficienthelpstoeliminated i s q u a l i f i e d ob served v a r i a b l e s w i t h regards t o th e r e l i a b i l i t y oft h e scale T h e m e a s u r e m e n t scalesrequiredtheuseofCronbachalphacoefficient,inwhichjunkv a r i a b l e s coul dbedismissedbeforeEFAmethodcouldbeapplied.Ifthisorderisnotrespected,thejunk variablescouldcreatefakefactors.Forvariablesthattheitem- totalcorrelationvalueislessthan.30,theywouldbeexpelled.Furthermore,a measuremen tscaleisconsideredgoodiftheCronbachalphacoefficientvariesf r o m 70to.80.If theCronbachalphaisbiggerorequivalentto.60,thescaleisacceptablyreliable(Nun nally&Bernstein1994).
2( s e e d e t a i l s i n A p p e n d i x 2)s h o w s thatmeasurementscalesarereliableexceptc ompatibilityvariable(shortedComp)wasmeasuredby2items(Comp1,Comp2)hadaCron bachAlphaof0.59.A u t h o re l i m i n a t e s “ Compatibility”v ar i a b l ebe c a us e i t
’ s C r o n b a c h A l p ha c o e f f i c i e n t s islow(lessthan0.6),whichhadnosufficientrelia ble.Thecorrecteditem-totalcorrelationvaluesaresatisfied(correcteditem– totalcorrelationvalueso f allitems≥.30).
The study assessed various variables influencing online purchasing intention, with the intention variable measured by three items (Int1 to Int3) and yielding a Cronbach alpha of 913, indicating high reliability The usefulness variable, evaluated through three items (Use1 to Use3), showed a Cronbach alpha of 822, also reflecting good reliability The ease of use variable, measured by three items (Ease1 to Ease3), achieved a Cronbach alpha of 762 Compatibility was assessed with two items (Comp1 and Comp2), resulting in a lower Cronbach alpha of 590 Privacy, measured by two items (Pri1 and Pri2), had a Cronbach alpha of 650, while security, evaluated through two items (Sec1 and Sec2), showed a Cronbach alpha of 779 Lastly, the normative beliefs variable, assessed by three items (Norm1 to Norm3), achieved a Cronbach alpha of 875, indicating strong reliability.
Efficacyvariablewasmeasuredby2items(Self1andSelf2)and hadaCronbachalphaof.729. Attitudevariablewasmeasuredby2items(Att1a n d Att2)andhadaCronbachalphaof.848.
Items ScaleM eanifIt em Deleted
ScaleVar ianceif It em Deleted
A lph a ifIt em Deleted Usefulness: 822
BasedontheCronbachalphacoefficientscalculated,themeasurementscalescompri sedofall20observedvariablessatisfiedthereliabilityandcouldbeusedf orexplorat oryfactoranalysisinthenextsteptoevaluatethevalidityofscale.
ExploratoryFactorAnalysis
SinceC r o n b a c h a l p h a c o e f f i c i e n t s c o u l d onlyv a l u e t h e r e l i a b i l i t y o f t h e measurementscales,it’salsorequiredtoassessthevalidityofthescale.Theau thoru s e s E F A methodt o e v a l u a t e t h e v a l i d i t y o f t h e s c a l e , i n c l u d i n g c o n v e r g e n t validity anddiscriminantvalidity.
EFAmethodbelongstothegroupofinterdependence techniques,meani ngt h a t t h e r e a r e n o d e p e n d e n t o r i n d e p e n d e n t v a r i a b l e s ; a n d i t d e p e n d s o n t h e interrelationshipbetweenthevariables.Inadditiontothat,EFAisa lsoatechniquet o downsizeandsummarizethedata.TheEFAmethodwouldhelptoidentif ytheg r o u p s o f v a r i a b l e s n e c e s s a r y fort h e r e s e a r c h p r o b l e m a n d f i n d o u t t h e interrelationshipbetweenvariables.IntheimplementationofExploratoryFactor Analysis(EFA),researchersusuallypayattentiontosomecriteriaasfollows:
Olkin(KMO)andBertlett’sTest:KMOisanindicatorusedto evaluate t h e appropr iatenessof E F A methodwithth e data If th e KMOindicatorrunsfrom.50to 1,EFAwouldbeapplicable(Kaiser1974).F u r t h e r m o r e , Bartlett'stestofSpheri cityisusedtotestthenullhypothesisthatt h e v a r i a b l e s i n t h e p o p u l a t i o n c o r r e l a t i o n matrixa r e u n c o r r e l a t e d I f t h e o b s e r v e d significancelevelis