Researchbackground
Vietnam‟seconomyhasbeenconvertingfromacentrallyplannedeconomytoa market- o r i e n t e d e c o n o m y a s f r o m t h e D o i M o i p o l i c y b e i n g i n i t i a t e d i n t h e l a t e 1 9 8 0 s T h e p o l i c y r e s u l t e d i n a s t e a d y a n n u a l l y e c o n o m i c g r o w t h o f 4 6 % i n t h e 1 9 8 0 s , 7.6%inthe1990sand7%in2008(Duy,D‟Haese,Lemba,H au&D‟Haese,2 0 1 2 ) Forinstance,thecontributionofagriculturetototalgrossdomest icproductiono n averageat3.68%perannumfortheperiodof1986to2014,ofwhichgro wthrateo f farming,forestryandfisheryproductionstablyincreaseby5.5%perannumwit hint h e samep e r i o d ( M i n i s t r y ofF o r e i g n A f f a i r s , 2 0 1 6 ) A f t e r 20yearssin ce
Since the implementation of the Doi Moi policy, agricultural production has steadily increased, leading to a significant rise in food production since 1989 However, poverty levels in rural areas remain relatively high, highlighting the persistent inequality in development between rural and urban regions.
There is a significant wealth gap between affluent and impoverished households in Vietnam, highlighting the need for greater attention and support for rural economies to combat rural poverty (Scott & Brassard, 2005) With 66.9% of peasant households residing in rural areas primarily engaged in farming (General Statistics Office of Vietnam, 2014), these households often operate without proper guidance and face financial shortages (Phan Huy Duong, Bui Duc Tung & Phan Anh, 2010) Access to credit is essential for improving the welfare and production capabilities of farming households To address this, the government has implemented credit programs aimed at providing the rural poor with affordable credit, thereby enhancing productivity and living standards Formal credit access is recognized as a vital tool for promoting both agricultural production and overall quality of life (Duy et al., 2012).
Formalcredit,whichisalso widely namedasagricultural c re d i t , ruralcredit ,isg e n e r a t e d fromformallenders(i.e.commercialbanks,cooperativebanks)beinginsti tutionsregulatedbytheg o v e r n m e n t a n d o p e r a t e d w i t h i n t h e r e g u l a t o r y frameworkofthefinancialsystemswhileinformalsourcesaremoneylenders, pawnshopsa n d f a m i l y o r f r i e n d s ( C a m p e r o &K a i s e r , 2 0 1 3 ) I t i s b e l i e v e d t h a t informalcreditiseasytoaccessduetoitsconvenience,quickness, widespreadp r e s e n c e ( i e market,n e i g h b o r i n g p l a c e s )
H o w e v e r , t h e g o v e r n m e n t ‟ s f a i l u r e t o interveneagriculturecreditledtoth eexistenceofinformallendingactivitiesinVietnam,w h i c h i s s i m i l a r t o m a n y d e v e l o p i n g c o u n t r i e s I n f o r m a l c r e d i t e x p o s e s somefeaturessuchasbyfar higherrateofinterestthanformalonewhichisusuallyv e r b a l l y agreed, s h o r t l e n d i n g p e r i o d w h i c h i s c o m m o n l y ag re ed onm o n t h l y basis, anda t t h e d u e d a t e v i o l e n c e mightb e a p p l i e d i f t h e b o r r o w e r f a i l s t o r e p a y ( S t a t e Bank ofVietn am[SBV],2016).Lackofcollateral,weakcreditcontractenforcementa n d u n d e r d e v e l o p m e n t o f i n s u r a n c e s e r v i c e d i s c o u r a g e b a n k c r e d i t o r s t o s e r v e t h i s market(Ghosh,Mookherjee,&Ray,2000).Itisasymmetryinformationthatforma lf i n a n c i a l institutionsruledpeasanthouseholdouttheaccessofformalcredit(Hoff
Agriculturalc r e d i t i n v o l v e s g i v i n g o u t o f c r e d i t t o s m a l l s c a l e f a r m e r s f o r thepu r p o se o f f a r m i n g ( O l a d e e b o & O l a d e e b o , 2 0 0 8 ) T h i s w a s a l s o a r g u e d byMuh ong ay ir e, H i t a y e z u , M b a t i a a n d M u k o y a -
W a n g i a ( 2 0 1 3 ) t h a t f a r m c r e d i t enhancesproductivityandpromotesstan dardof living bybreakingvicious cycleofp o v er ty ofsmallscalefarmers.Itisus uallyalsoconsideredasanessentialinputforincreasingagriculturallanda n d laborpr oductivity,boostingf o o d productiona n d incomelevels,encouragingemploymentandallevi atingruralpoverty.
Generally,farmcreditisprovidedforreliefofdistressandforpurchasingp r o d u c t i v i t y - e n h a n c i n g i n p u t s s u c h a s s e e d s , f e r t i l i z e r s , a n d f a r m i m p l e m e n t s T h e importanceofcreditforruraldevelopmentisevenmorepronouncedfordevelopingc o u n t r i e s w i t h largelysubsistencefarmingsystems.AccordingtoWorldBank(2014),numbero f a d u l t s i n V i e t n a m o w n i n g b a n k a c c o u n t a n d u s i n g f i n a n c i a l s e r v i c e s i s r a t h e r moderate,a p p r o x i m a t e l y 31%c o m p a r e d t o w o r l d a v e r a g e numbera t
6 2 % Whilea g r i c u l t u r e c o n t r i b u t e s s i g n i f i c a n t l y tot h e country‟seco nomicgrowth,t h e s e c t o r c o n t i n u e s t o b e c h a r a c t e r i z e d byv e r y l o w l e v e l s o fi n p u t u s e C u r r e n t l y t h e s u p p l y offormalcredittoagriculturesectorissharplyincr easingofthatmanyinstitutionsgetinvolvedinprovidingformalcreditothercommercialbank s,andtheagriculturalcreditbalancehasbeengrowingdramatically(Nguyen&Nguyen,2011).
Further,KPMG(2013)indicatedthatcorporatelendingisthemainactivityofthebank sinVietnamand itaccountsforalmosthalfoftotalloanswhileonly28%areloa nst o i n d i v i d u a l s Byc o n t r a s t , i n f o r m a l c r e d i t i n V i e t n a m h a s b e e n i n c r e a s i n g l y g r o w i n g , andreachedanamountofUS$50billionequivalentto30%oftotallendi ngb a l a n c e p r o v i d e d bycommercialb a n k s (SBV,2 0 1 3 ) T h i s i m p l i e s t h a t v e r y f e w farmersi n V i e t n a m i n g e n e r a l a n d i n M e k o n g D e l t a i n p a r t i c u l a r a c t u a l l y a c c e s s e s formalc re d i t f r o m commercial ba n k s T h u s, e x p l o r a t i o n o f m o t i v a t i o n f o r farmer‟su s a g e offormalcreditinsteadof“blackcredit”,“cut- throatsloans”(Lainez,2014)isincreasinglycarriedoutbyresearchersandpractioners.
Itischallengingforfarmerstogrowoutofpovertywithoutbeingprovidedwitha d e q u a t e a n d a f f o r d a b l e f i n a n c i a l s e r v i c e s ( P a p i a s & G a n e s a n , 2 0 1 0 ) C r e d i t accomplishesthisdevelopmentaltaskbyenablingrisk- aversesmallholderfarmerstoovercometheirliquidityproblemandtomakefarminvest ments,particularlyinimprovedfarmtechnologyandinputsthatcouldleadtoincreasedagri culturalp r o d u c t i o n ( F u e n t e s , 1 9 9 6 ) T h u s , a g r i c u l t u r a l c r e d i t i s v e r y e s s e n t i a l i f e c o n o m i c g ro wt h istobeachievedindevelopingcountriesandemerging markets.
Researchproblem
CanThocityistheprimarily ricegrowing region ofVietnam.In 2 0 1 5, Can thoC i t y transformedapproximately12,000haofrice- growinglandintoaquacultureland,whi chincreasedaveragevalueofproductionper1h aat153millionVNDperannummuchgreaterthanotherregionsinMekongDelta(Minis tryofAgricultureandRuralD e v e l o p m e n t , 2016).Yet,mostofVietnam‟scommer cialbanksseemtobenotpaidmuchattentiontolendthissegmentofcustomers(VietnamFarmer
Astheresult,thereisnoaspecificallydesignedlendingproductforthefarmers, a n d t h e e x i s t i n g l e n d i n g p r o c e d u r e s a n d p r o c e s s e s f a i l e d t o meett h e r e a l d e m a n d , ev enrestraintthefarmersfromaccessingthelending.Allofcommerci albankswiththeinterventionfromtheGovernmentarecarryingoutlendingpackaget othissegmentofcustomers,butthepracticaleffectivenessofthesecreditpromotingp rogramsisstillverylimited.
Consequently,62.1%usersof informalcredit inMekongDeltaare farmersan dfamily-sizedbusinesses(Bui, 2016),therehavebeenmanycreditdelinquentsresulted fromi n f o r m a l c r e d i t o c c u r r e d o v e r V i e t n a m i n g e n e r a l a n d i n
M e k o n g D e l t a inp a r t i c u l a r Inotherwords,thequestionsonrationalesoffarmerswilli ngorreluctanttouseformalcreditandfac to rs influencingtheirbehavioral intent iontoaccessformalc r ed i t inVietnamhavereceivedincreasingconcernsofresearchers. Manypriorstudiesonagriculturallendinghavebeenconductedwithregard tot h e banklending f or farmers F o r example, B e t u b i z a an dLeatham (1 99 5) i ndicatedfactors a f f e c t i n g c o m m e r c i a l b a n k l e n d i n g t o a g r i c u l t u r e ,
O l a d e e b o a n d O l a d e e b o (2008)c o n d u c t e d s t u d y o n f a r m e r s ‟ l o anr e p a y m e n t , a n d F r a n g o s , F r a g k o s , S o t i r o p o u l o s , ManolopoulosandV alvi(2012)indicatedfactorsaffectingcustomer‟sdecisionfortakingoutbankloans InVietnam,mostofthestudieswereconductedtoinvestigatefarmers‟accesstobankcred itinHaiDuongprovince(Chauetal.,2012),ruralcreditmarketinthe Mekong RiverDelta
Several studies have explored the accessibility of formal and informal credit among households in Vietnam, including research on rural borrowing behavior and credit use in farming households However, these studies, such as those conducted in Hanoi, Nam Dinh, and An Giang provinces, lack empirical analysis specific to Can Tho City and do not adequately address the reasons behind farmers' decisions to utilize formal credit This study aims to fill this gap by investigating the factors that influence Vietnamese farmers' behavioral intentions to access formal credit from commercial banks in Can Tho City, where the demand for financing agricultural activities is increasingly significant.
Thiss t u d y i s a b o u t toa d a p t t h e modifiedT R A ( t h e o r y o f r e a s o n e d a c t i o n ) model,whichincludestwooriginalconstructs(i.e.attitude,subjectivenorm)a ndtwon e w l y addedconstructs (i e perceived s e r v i c e quality,pe r c e i v e d value ),t of i n d the p o s i t i v e e f f e c t s o n b e h a v i o r a l i n t e n t i o n I n l i t e r a t u r e , T R
A m o d e l h a s b e e n w i d e l y employedintesting(behavioral)intentiontoaccept/ useinternet/mobilebanking,f i n a n c i a l s e r v i c e / p r o d u c t (Ismail,Azmin& Thurasamy,2 0 1 4 ; A m i n , 2 0 1 2 ; Amin,
Ghazali&Supinah,2010;Nor,Shanab&Pearson,2008).Additionally,forthesake ofmanagerialandmarketingstrategies,perceivedservicequalityandperceivedvalueh a v e b e e n w i d e l y u s e d t o t e s t t h e a c c e p t a n c e o f , t o t e s t t h e p r e f e r e n c e o f c u st o m e r / co n s um e r i n s e l e c t i n g a c e r t a i n s e r v i c e / p r o d u c t , a n d t o t e s t t h e customerloyalty( L i e n , W e n , H u a n g & Wu,2 0 1 5 ;
Z a m e e r , T a r a , K a u s a r & M o h s i n , 2 0 1 4 ; A k d a g &Zineldin,2011;Yang&P eterson,2004).Researchonmanyserviceindustriesalsosuggeststhatperceivedvaluepl aysamoreimportantrolethanp e r c e i v e d qualityininfluencingcustomersatisfact ionandloyalty(Shamdasani,Mukherjee&Malhotra,2008)whichdrivetocusto mer‟sbehavioralintention.P r e v i o u s s t u d i e s s u g g e s t t h a t customers‟p o s i t i v e b e h a v i o r a l i n t e n t i o n s comef r o m t h e i r satisfaction,whilesatisfactio nistheresultofgoodservicequality(Ali,Le if u, Y a s i r R a f i q & H a s s a n , 2 0 1 5 ;
A l q a s a & B a l h a r e t h , 2 0 1 5 ; L a d h a r i & L a d h a r i , 2 0 1 1 ; Abedniya&Zaeim,201 1).Thus,theconceptofperceivedvaluehasbeenalsop r o p o s e d , w h i c h s i m u l t a n e o u s l y c o m b i n e s t h e b e n e f i t a n d c o s t a s p e c t s t o e x p l a i n customerbehavio ralintentions(Monroe,1991;Zeithaml,1988).
Researchobjectives
Theoverallobjectiveofthisstudyistoexaminefactorsinfluencingthefarmer‟sb e h a v i o r a l intentiontouseformalcredit.Specifically,fourfactorsareconsideringinth i s s t u d y i n c l u d e s A t t i t u d e , S u b j e c t i v e norm,P e r c e i v e d S e r v i c e q u a l i t y , a n d P e r c e i v e d ValueaffectingBehavioralIntentionoffarmersinCanThocity,Vietnam. Specifically,fourquestionsaregivenasfollow:
Question1:whetherdoesattitudeaffectthefarmer‟sintentiontouseinCanThocity? Ifyes,howistheeffect?
Question2:whetherdoessubjectivenormaffectthefarmer‟sintentiontouseinCanT hocity?Ifyes,howistheeffect?
Question3:whetherdoesPerceivedServicequality affectthefarmer‟sintentiontouseinCanThocity? Ifyes,howistheeffect?
Results fromthe studyareexpectedto show thesubsidized creditthatpenetratesruralf a r m h o u s e h o l d s i n C a n T h o City,w h i c h i s c o n s i d e r e d t o beo n e o f t h e keyagriculturalregionsinVietnam.
Researchscope
CanThoCity,locatedintheCentreoftheMekongDelta,isacitydirectlyundert h e C entralauthorities.Itisknownas“thecapitalcityoftheSouthwesternVietnam”moretha nonehundredyearsago(VietnamTradePromotionAgency,2015).CanThoci ty hasadvant agesconcerningagricultureandaquaticproducts,aswellasing e og r a p h ic a l posi tionthathelpsthecitydevelopinareassuchasurbaninfrastructure,trafficinfrastructure,hi- techagriculture,agricultural– aquaticproductsandtheseafoodp r o c e s s i n g , tourismandsupportiveindustries.
Theformalcreditprovidedbyformalfinancialinstitutionsmentionedinthisstudyi s within theextentoflicensedbanks(i.e.bothstate- ownedbanksandprivatecommercialbanks,cooperativebank) Assuch, forthepu rposeofconvenient sampling,this studyfocusesonthefarmers w ho liveinCan ThoCity andw ho are bo rr owers a n d ( w o u l d - b e ) b o r r o w e r s o f b a n k s ( i e V i e t c o m b a n k , B I D V , A g r i b a n k , MBBan k,S a c o m b a n k , A g r i b a n k , K i e n l o n g B a n k , P V C o m b a n k , M a r t i m e b a n k , Eximbank)areselectedforthisstudy.
Researchcontribution
Sincethestudyistofillthegapinliteratureassociatedwithfarmer‟sbehavioralintentio ntousef o r m a l c r e d i t i n t h e s e t t i n g o f V i e t n a m i n w h i c h f e w empiri calresearchonthesamefieldwereconducted.Thefindingsofthisstudy,therefore,makeafe wfollowingcontributions.
The Theory of Reasoned Action (TRA) has demonstrated its applicability in predicting intentions globally; however, limited research has applied TRA within the context of formal credit in Can Tho, Vietnam This study constructs a model that integrates two TRA constructs with two new ones—perceived service quality and perceived value—to assess farmers' behavioral intentions regarding formal credit acceptance, a topic previously unexplored Based on feedback from respondents in Vietnam, the empirical evidence suggests that consumer intentions can be significantly explained by this modified TRA model Consequently, this research validates and generalizes the TRA framework in the context of formal credit usage in Can Tho, enriching existing literature and contributing to ongoing studies on TRA.
Secondly,whileprevious studieswereconducted inCan th o CityandbyViet nameseresearchersassociatedwiththemicrofinanceand/ orruralcredit,butexploringfarmer‟sbehavioralintentiontouseformalcreditbyusi ngempiricaldataw a s justafew.
Researchstructure
Thefirstchapterintroducesaboutbackground,researchproblems,researcho b j ec t i v e s , scopeofresearchandresearchstructures.
Thet h i r d c h a p t e r p r e s e n t s t h e r e s e a r c h p r o c e s s , samplings i z e , m e a s u r e m e n t scale,mainsurvey,anddataanalysismethod.
Thefifthchapterpointsout c o n c l u s i o n , i m p l i c a t i o n s , and directions f o r future r e s e a r ch
Chapter1introducedoverviewofresearchincludingresearchbackground,statemen tofproblem,r e s e a r c h o b j e c t i v e s , rese ar ch sc o p e, r e se a r c h c o n t r i b u t i o n , an d r es e a r c h structure.Thechapter2presentstheTRAtheoryassociatedwithfarmer‟sbe havioralintentiontouseformal credit,andthemodelstestingthefarmer‟sbehavioralintentiont o a c c e p t a certainfinancial productsovertheworld.
Moreover,aconceptualmodelisbuiltresultingfromthehypothesesgeneratingfromex tantliterature,simultaneously,itsconstructsandrelationshiphypothesizedamongthesec onstructsarealsodiscussed.
Foundationaltheory
Extensive studies have been conducted on credit borrowers' acceptance and usage, highlighting the widespread use of bank credit Various models from disciplines such as psychology, sociology, and information systems have been developed to explain this phenomenon A significant body of literature supports the application of the Theory of Reasoned Action (TRA) within the banking marketing context, particularly in finance The TRA is chosen as the foundational theory for this study due to its strong empirical support in behavioral intention, making it a parsimonious and predictive framework suitable for various contexts, including banking services, banking technology, and online purchases.
Introduced by Fishbein and Ajzen in 1975, the Theory of Reasoned Action (TRA) explores the relationship between beliefs, attitudes, intentions, and behavior According to TRA, attitudes towards formal credit and subjective norms are key antecedents of behavior To gain a deeper understanding of behavioral influences, it is essential to examine the beliefs individuals hold about themselves and their environment These beliefs serve as the foundation for a person's attitudes and subjective norms, ultimately shaping their intentions and behaviors TRA also informs marketing strategies, emphasizing that an individual's attitude and social influences significantly impact their approach to formal credit This highlights that a positive attitude acts as an intrinsic motivator for adoption, while favorable subjective norms create a supportive environment for individuals.
Attitude toward behavior Behavioral beliefs and evaluation of outcomes
Normative beliefs and motivation to complySubjective norm choosef o r m a l c r e d i t T h e s e b e h a v i o r a l p s y c h o l o g y c o m p o n e n t s h a v e t e n d e n c y toe x p l a i n one‟sconsumptionforaparticularproductislargelysourcedfr omhisattitudea n d otherpeopleinfluencearoundhim.TheresearchmodelstemsfromFi shbeinandA j z e n (1975)modelofTRAandisshowninFigure2.1.
Tob e t t e r d e s c r i b e t h e intentiontousef i n a n c i a l s e r v i c e s a n d / o r p r o d u c t s i n b ank i n g s e c t o r , n u m b e r o f s t u d i e s o f w h i c h theT R A w a s m o d i f i e d t o f i t w i t h t h e researchc o n t e x t h a v e b e e n c o n d u c t e d byZ a m e e r e t a l ( 2 0 1 5 ) , T a i b e t a l ,
( 2 0 0 8 ) , RamayahandSuki(2006),TarkiainenandSundqvist(2005),Yuserrie,Noresm a,andRamayah( 2 0 0 4 ) T h e modificatione f f o r t s t e m s f r o m t h e f a c t t h a t T R A p r o v i d e s a g e n e r a l j u s t i f i c a t i o n o n l y o f t h e d e t e r m i n a n t s o f n o n - i n f o r m a t i o n s y s t e m ( I S ) acceptance.
RAmodeli s employedt op r e d i c t i nt en ti on to us e ba nk cr ed it be c a us e ofit s i n c r e a s i n g a p p l i c a b i l i t y t o marketingc o n t e x t i n b a n k i n g i n d u s t r y a n d r i c h e m p i r i c a l s u p p o r t s (Amin,2 0 1 3 ) T h e u s a g e intentionisthemaindependentvariab leofthemodel,d e r i v e d fromtheTRAwhich posits thatbehavioralintentions, ratherthanattitudes, are themainpredictorsofactualusageofbankcreditamongstfarmers
Vietnam‟sb a n k i n g marketf a c e d i n c r e a s i n g l yf i e r c e c o m p e t i t i o n a m o n g s t commercialb a n k s c o m p r i s i n g o f l o c a l a n d i n t e r n a t i o n a l b a n k s
T h i s c o m p e t i t i o n , c o u p l e d withmarketsaturationandlow.Emergingmarketsin generalandparticularlyV i e t n a m o f f e r s greatergrowthpotentialandhavethusattracte dtheattentionofinternationalizingbanks(Diallo,2012).Historically,emergingmarketswere highlyfragmentedb a n k i n g marketsc h a r a c t e r i z e d byl i m i t e d i n f r a s t r u c t u r e o f i n f o r m a t i o n technology,security,dichotomousconsumersocietiesandalackofregulation ( S t e r n q u i s t , 2007ascitedinDiallo,2015).
However,asthesecountrieshavedeveloped,localbanksbegantorealizeeconom iesofs ca l e in p u r c ha s i n g andope ra ti on s, andmodernba nk in g systemsand stra tegicapproacheshav e emerged.Asthecompetitionis becomingmoreintensive a m o n g thebankoperators,itisbecomingmandatoryforthemtomonitorthea w a r e n e s s o f c u s t o m e r s b a s e d u p o n q u a l i t y o f s e r v i c e s , a n d v a l u e s r e c e i v e d byi t s customerinreturn.
This research integrates new independent variables, specifically "perceived value" and "perceived service quality," alongside "attitude" and "subjective norm," to explain "behavioral intention," similar to studies conducted in surrounding countries However, this study omits "actual behavior" and two original external constructs of the Theory of Reasoned Action (TRA), focusing instead on the key factors influencing farmers' intentions to use bank credit Consequently, the behavioral intention within the TRA model is redefined as "intention to use bank credit," aligning with the approach of Chiu, Lin, and Tang (2005).
ReviewonBehavioralintention
Behavioralintentionisdefinedas“thedegreetowhichapersonhasformulatedco nsciousplanstoperformornotperformsomespecified futurebehavior” (Warshaw
Parasuraman,Z e i t h a m l , a n d Berry( 1 9 9 4 ) andi d e n t i f i e d f i v e d i m e n s i o n s o f b e h a v i o r a l intentions:loyaltytothecompany,propensitytoswitch,willingnesstopaym ore,externalresponse toproblem,andinternalresponse toproblem.Studying the r e l a t i v e influenceofservicequalityonthefivebehavioralintentiondimensions,the yf o u n d positiveeffectswithloyaltytocompanyandwillingnesstopaymore,negativee f f e c t s withpropensity toswitchandexternalresponse toproblem, andnon- significanteffectswithinternalresponsetoproblem(Parasuramanetal.,1994).
Bloemer,D e R u y t e r , a n d Wetzels( 1 9 9 9 ) f o u n d d i f f e r e n t d i m e n s i o n s f o r b e h a v i o r a l i n t e n t i o n s : r e p u r c h a s e i n t e n t i o n s , w o r d - o f - m o u t h c o m m u n i c a t i o n , p r i c e sensitivity,andcomplainingb e h a v i o r The ya l s o f o u n d t h a t r e l a t i o n s h i p s b e t w e e n servicequalityandbehavioralintentio nshadnotabledifferencesacrossindustries.
Behavioralintentionm a y changeowingtou n f o r e s e e a b l e e v e n t s o r timeinterv als.High serviceq u a l i t y a n d a p o s i t i v e e x p e r i e n c e o f t e n l e a d t o f a v o r a b l e b e h a v i o r a l i n t e n t i o n toward the service provider, andto thecustomerwillinglypayinga higherprice(Hoch&Deighton,1989).Furthermore,loyalcusto mersaremorelikelytorecommendfriends,relativesorotherpotentialcustomersto aproduct/servicebya c t i n g asfreeword-of- mouthadvertisingagents(Shoemaker&Lewis,1999).
Lada etal.(2009) Halalproduct TRA Malaysia
Liu,Furrer,andSudharsh an(2001) studyingtherelationshi pbetweenculture andbehavioralintentio nsin aserviceq u a l i t y conte
Jen, Tu,andLu(2011) Transportationmana gement integratedframeworkf romtheattitudinalpers pective
Luarn andLin(2005) Mobilebanking TPBandTAM Taiwan
Low- carboneconomics Quadrifidgraphmodel China Agudo-
Choi,andLee (2014) Telemedicine TAM Korea
HypothesesDevelopment
Perceivedvalue
Studiesindicatethatperceivedvaluemay eitherleaddirectlytotheformationoff e el in g s o f o v e r a l l s a t i s f a c t i o n o r m a y r es u lt i n t h e f o r m a t i o n o f p e r c e p t i o n s t h a t a prod ucto r s e r v i c e ‟ s performance i s d i f f e r e n t t h a n e x p e c t e d , w h i c h c a n i n f l u e n c e o v e r a l l satisfaction feelings(McDougall&Levesque,2000;Swait&Sweeney,2000;C a r u a n a & F e n e c h , 2 0 0 5 ) R e s e a r c h o n m a n y s e r v i c e i n d u s t r i e s a l s o s u g g e s t s t h a t percei v ed v a l u e p l a y s a morei m p o r t a n t rolet h a n p e r c e i v e d q u a l i t y i n i n f l u e n c i n g customersatisfactionandloyalty(Shamdasanietal.,2008).
Numerous studies have examined perceived value, overall satisfaction, and customer intention, with Zeithaml (1988) defining perceived value as the comparison between perceived benefits and sacrifices made by customers Buzzell and Gale (1987) further explain this concept as a ratio of total benefits received to total sacrifices, considering available offerings and perceived costs Additionally, perceived value significantly influences customer behavioral intentions, as indicated by research from Choi et al (2004), Cronin, Brady & Hult (2000), Lapierre, Filiatrault & Chebat (1999), and Liu, Leach & Bernhardt (2005) These studies suggest that perceived value integrates customers' perceptions of both benefits and costs, unlike satisfaction research, which primarily focuses on benefits Consequently, the following hypothesis will be explored for each corporate association identified in the field study.
Hypothesis4 :Farmer‟sperceivedvaluepositivelyassociatesfarmers‟behavioralinte ntiontouseformalcredit.
Conceptualmodel
Theforegoingofliteraturereviewinthisstudyisdiscussedasabasisford e v el o p i n g aconceptualframework.Consistentwiththeconceptualization,thisstudyu s e d t h e T h e o r y o f R e a s o n e d A c t i o n ( T R A ) S p e c i f i c a l l y , a m o d e l i s d e v e l o p e d tos t u d y t h e r e l a t i o n s h i p b e t w e e n a t t i t u d e , s u b j e c t i v e norm,p e r c e i v e d servicequ ality,
Perceived Value perceivedv a l u e , a n d b e h a v i o r a l i n t e n t i o n F i g u r e 1 b e l o w s h o w s a modelo f t h e hypothesizedrelationshipsinvestigatedinthisstudy.
Chaptersummary
Thischapterpresentstheoreticalbackgroundofeachconceptinthemodel.Basedond is cu s si o n ofliteraturereview, farmer‟s behavioralintentiontouse formalcr ed it isaffectedbyf o u r f a c t o r s , t h e s e a r e : a t t i t u d e , subjectiven o r m , p e r c e i v e d q u a l i t y o f service,a n d p e r c e i v e d v a l u e S u c h f a c t o r s a r e s e l e c t e d t o b u i l d themodelb e c a u s e t h e i r relationshiphasalreadyt e s t e d bymanypreviousre searchersthroughtheirstudies.Hence,therearefourhypothesesproposedforthisresearch. Thenextchapterw i l l d i s c u s s m e t h o d o l o g y t h a t u s e d t o a n a l y z e t h e d a t a a n d t e s t hypotheseso f t h e r e s e a r c h model.
Chapter2 r e v i e w e d e x t a n t literaturet o drawo u t hypothesesa n d c o n c e p t u a l model.
T h i s chapterpresentsadetailedaccountofaresearchmethodologyofthisstudy.First,its t a r t s w i t h s a m p l e d e s c r i p t i o n , f o l l o w e d byd a t a c o l l e c t i o n m e t h o d a n d r e s e a r c h p r o c es s Then,measurementscalesarepresentedtodevelopquestionnaire.Afte rthat,in- depthi n t e r v i e w isc o n d u c t e d t o helpm e a s u r e m e n t s c a l e s c l e a r e r a n d und erstandable.B e s i d e , t h i s c h a p t e r a l s o aimsa t e x p l i c a t i n g t h e r e s e a r c h a p p r o a c h c h o i c e andpresentingthepurposesofusingthatmethod.
Researchprocess
(1)qualitativeand(2)quantitative.Infirstp h a s e s , in- depthinterviewwasusedtorefineandfinalizethequestionnaireitemsandthequantitative surveywasusedinthemainsurvey.Themainrespondentscompriseb a n k ‟ s c u s t o m ersa n d w o u l d - b e b o r r o w e r s i n C a n t h o Citya n d s u r r o u n d i n g a r e a s Afterconductingm ainsurvey,theSPSS22isusedtotest(i)reliabilitybyCronbachAlpha,
( i i ) c o n v e r g e n t a n d discriminantv a l i d i t y oft h e d a t a byExploratory F act or s A nalysis.Thehypothesesdevelopedbasingontheoreticalbackground,then,aree v a l u a t e d bymultipleregressions.TheresearchprogressisdepictedatFigure3.
Literature Review In-depth Interviews Main Survey
Eliminate corrected item - total correlation < 0.4 Evaluate Cronbach‟s Alpha > 0.6
Composite reliability, extracted variances, uni-dimensionality test, convergent validity and discriminant validity
Theoretical model test Model fit, Component fit
Questionnairedesign
BasedonthepreviousresearchandtheVietnamesecontext,thedraftq u e s t i o n n a i r e c o n s i s t e d o f f i v e ( 5 ) measurements c a l e s , w h i c h w e r e a t t i t u d e , subjecti venorm,perceivedservicequality,perceivedvalue,andbehavioralintention.T h e n , thed raftquestionnairewastranslatedfromEnglishintoVietnamese.Thesourceofquestionnaireitem sisinTable3.1below.
,andensureobviousnessofVietnamesewordingspriortoconductcollectionofdataona large cover,anin- depthwascarriedoutwithsixpeasanthouseholdswhohaveeverb e e n u s i n g b a n k ‟ s l o a n s t o c r e a t e p r o d u c e s a n d / o r w h o a r e a g r i c u l t u r a l materialsmerchants.Theyareusedtodeal withandarefamiliarwiththeprocessandprocedureo f a g r i c u l t u r a l c r e d i t A l l o f t h e m h a v e muchk n o w l e d g e a n d m a n y e x p e r i e n c e i n farmingcreditinCanthoCity
Firstly,theaimofthein- depthinterviewistoexplaintoallofthem;moreover,t h e questionnairesandrelatived ocumentsweresenttothem.Afterthat,adiscussion witheachofthemwasconductedtodefinewhichitemswouldbeeliminatedorwhichitemsw o u l d b e a d d e d u p o r b e r e v i s e d tob e s u i t a b l e t o V i e t n a m c o n t e x t A f t e r adjustingt h e f i r s t questionnairet a b l e , t h e q u e s t i o n n a i r e w a s d e l i v e r e d t o a s m a l l samplesizeoffifteenconvenientcolleaguesandclientstorecognizewhethera nyitemi s s t i l l u n c l e a r t o u n d e r s t a n d , o r i s s u s c e p t i b l e t o m i s u n d e r s t a n d A f t e r g e t t i n g a l l f eed b a c k s, thefinalversionofquestionnairesisavailableforthe mainsurvey.
ListofparticipantsisdepictedinAppendixA.Allthecommentsaretakennoteinth eAppendixB.ChangesoftheVietnameseversionweremadeforthepurposeofaccurac y andclarity.Al th ou gh most ofthescaleswereusedwidelyinthepreviousr e s e a r c h , thisstudywasimportantbeforelaunchingthequantitativesurveyduetothedi ff ere n ces intheresearchsetting:applyingintheVietnamesecontext.Intheendofth is stu dy,themodificationandrevisionofquestionnairesurveyarenoticedinAppendixB.The officialquestionnairesurveysareshowninAppendixCforEnglishv e r s i o n andAppendixDforVietnameseversion.
No Numberofi tems Content Code Source
Surroundingp e o p l e e n c o u r a g e s m e u s i n g b a n k l o a n fromc o m m e r c i a l b a n k s (i n s te ad ofinformalcredit,borrowingfromrelatives/friends) SJN1
Membersoflocalassociationsinmycommunitylikefarmer‟sunion,women‟su n i o n , youth‟sunion, encouragemetouseformalcreditforfarmingactivities SJN2 Peoplehavinginfluenceonmydecisionrecommendmeborrowbank‟sloans SJN3
Bankstaffoffersmoredetailedinformation/ knowledgeofcustomers‟accounts,p o r t f o l i o andservices PSQ2
Comparedtoinformalcredit,thebankchargesmefairlyforsimilarloans PVL2 Comparedtoinformalcredit,thebankprovidesmorefreeservices PVL3 ComparingwhatIpaytowhatImightgetfromotherinformalsources,Ithinkthebank providedmewithgoodvalue PVL4
Samplingmethod
Aftergettingallfeedbacks,thefinalversionofquestionnairesisavailableforthemainsurv ey.T h e q u a n t i t a t i v e i n - d e p t h i n t e r v i e w w a s u s e d t o e v a l u a t e t h e itemsr e s u l t e d fromin- depthdiscussionspriortoconductmainsurvey.Themainsurveywasc o n d u c t e d inCanThof romMaytoJuneof2016.Withthepriornotice,theq uest ion naire whichisformattedin GoogleDocswasemailedtobothborrowersandwould- beborrowers, afterthattheyfilledouttheanswersthroughInternetplatform( t o t a l numberofquestionnairewere118)while300questionnaireswereputata f o r em en t i o n e d banks‟transactionoffices.Further,at-siteinterviewswithparticipants
(82)w e r e a l s o c o n d u c t e d byretailb a n k e r s m o s t l y being staffsofMB B a n k C a n t h o City.Duetolimitedtime,theconveniencesamplingapproachwasconducted.
ThereliableandvalidityofvariableswillbetestedbyusingCronbach‟sAlphaa n d EFA,afterthatthemultipleregressionwasappliedtotestmodelandhypotheses.F i r s t ofall,thesamplesizewasrequiredtohave enoughquantityfortheanalysis.Them i n i m u m sample sizewas 100andnotlessthan fivetimesofitems(Hairetal 2010),thus:n>100andn=5k(wherekisthenumberofitems). Withexpectationtoobtainasamplesizeofabout300,about500questionnaires w e r e deliveredtoparticipants.
Researchmethod
Reliabilitymeasure(Cronbach‟sAlpha)
Inordertoassessreliabilityofeachofscaleswithparticularsample,aswellasconsid ertheinternalconsistencyofthescales,itisnecessarytouseCronbach‟sAlphacoefficientwhic hshouldbeabove0.7(Devellis,2003).Also,thecorrecteditem- totalcorrelationvaluesshould be atleast 0 4 toens ure eachofitemswa s measuringt he samefromthescaleasawhole(GliemandGliem,2003;Hairetal.,2006).
Inordertoevaluatethevalidityandthecorrelationamongvariablestoidentifyunderl yingfactorsordefinenumberofextractedfactors, EFAwasappliedwiththe o b l i q u e a p p r o a c h u s i n g t h e P r o m a x method.H o w e v e r , s o m e r e q u i r e m e n t s ofE F A shouldbesatisfied(Pallant,2011):
- Theminimum ofsamplesizeshouldbeatleast100andrate ofobservationsp eritemsofmodelsshouldbefivecasesforeachoftheitems.
MultipleRegressions
Toe x p l o r e t h e r e l a t i o n s h i p b e t w e e n i n d e p e n d e n t v a r i a b l e s ( i e b e h a v i o r a l intention)anddependentvariable(i.e.attitude,subjectivenorm,p e r c e i v e d s e r v i c e quality,perceivedvalue),aswellastoevaluatetheimportanceofthoseindepe ndentv a r i a b l e s intheframeworkmodel,themultipleregressionanalysiswillbecondu cted.T h e multipleregression analysisre qu ir ed thatsomefollowingconditions s hould bes a t i s f i e d :
P)wasrequiredwithmostofthescoresco n ce n t r a t ed inthecentre(alongthe0point).
Themultipler e g r e s s i o n s t h e n i s u s e d t o t e s t h y p o t h e s e s , t o e x p l o r e t h e relationshipbetweenfiveindependent variables(i.e.attitude;subjectivenorm;servicequality;p r i c i n g a n d r e p u t a t i o n a n d image)a n d u s a g e i n t e n t i o n o f b a n k c r e d i t T h e g e n e r a l i z e d equation(DonaldandPamela,2006)isasfollo w:
Xi= i thi n d e p e n d e n t variable (i.e.attitude;subjective norm;servicequality;p r i c i n g andreputationandimage)thatisexplainingthevariancei nY β0=aconstant,thevalueofYwhenallXvaluesarezero β1=t h e s l o p e o f t h e r e g r e s s i o n s u r f a c e ( t h e β r e p r e s e n t s t h e r e g r e s s i o n coef f ici ent associatedwitheachXi) ε= anerrorterm,normallydistributedaboutameanof0
Chaptersummary
Ins u m m a r y t h e s u r v e y w a s d e s i g n e d b a s e d o n p r e v i o u s m e a s u r e m e n t s c a l e s Specifically,scalesofattitudeandsubjectivenormconsistthreeitemsforeac ha d o p t e d fromr e l a t e d p r i o r s t u d i e s M o d i f i c a t i o n s f o r t h e V i e t n a m e s e v e r s i o n a n d E n g l is h version ofquestionnairewereconducted due tothe necessaryofaccuracyandclarity.Therespondentsareselectedwithasampleof500.SPSS22i susedtotestthemeasurementandtheoreticalmodel.
Chapter3 p r es e n t e d r es e a rc h m e t h o d o l o g y toexaminescale v a l i d a t i o n a n d a n a l y ze t h e collecteddata.Inchapter4,resultsofstudywouldbeshownandanalyz edwithsamplen%0.First,respondents‟demographicswereanalyzedbyusingtheS PSS–
S t a t i s t i c a l softwarepackage.Secondly,resultsofscalevalidationwerepresen ted.Inthissection, thedata oft h i s research wa s e va l u a t e d through t w o ste ps.Step1 u s e d Cr o n b a c h ‟ sAlphaandExploratoryFactorAnalysis(EFA)toexaminer eliabilityandv a l i d i t y ofthescalemeasurement.Instep2,multipleregressionswer eemployedtotestfourhypotheses.Finally,resultsofhypothesestestingwerediscussed.
Respondent‟sdemographics
Afterdatacollection,total287responseswerecollected;theresponseratewa sa p p r o x i m a t e l y 5 7 4 % p e r c e n t T h e n , t o t a l 37q u e s t i o n n a i r e w a s e l i m i n a t e d b e c a u s e theywereinvalid(respondents just choseoneoption for allquestionsor theiranswersw er eimplausible).Finally,250questionnaireswereusedasvaliddataf orthisr esear ch Incomparisonwithminimumsamplesize,thisnumberofdataw assatisfactory.
Statisticalsoftwarepackage.T h i s partaimedtoprovidethegeneralinformationofres pondents.Theresultsofthed em o g r a p h i cs analysiswere summarizedin table4.1. Initialanalysisofdata indicatedthatgenderwasnotequallybetweenfemaleandmale.Malewasdominantwith67.2%o f respondentsandfemaleonlyseized32.8%ofrespondents.Majorityofrespondentswh ot ookpartinthisstudy(74%)wereinemploymentage(26-
45)whileagegreatert h an 55accountedfor11.6%,agerangedfrom46to55was8.4%,anda gefrom 18to
Remarkably,mosto f r e s p o n d e n t s w e r e h i g h - s c h o o l g r a d u a t e s ( 6 5 6 % ) , t h o s e h a v e vocationalleveloccupied23.6%andc ollegiatelevelwas10.8%.Morethanhalfo frespondents(54.8%)haveeverborrowedbank‟sl oan,and76.4%outofthoseloanswer eusedforthepurposeofagriculturalproduction.
Demographic ProfileCategory Male Female Total
>55 Total Collegiate level Vocational level
No Total Yes No Total
Ever borrowed loan Ever borrowed loan for farming business
ReliabilityAnalysis
Toe n s u r e t h e r e l i a b i l i t y o f t h e i n s t r u m e n t d e v e l o p e d f o r thisr e s e a r c h , Cronbach ‟sA l p h a hadb e e n c o n d u c t e d a s anindicatorf o r internalc o n s i s t e n c y o f scales.B e s i d e C r o n b a c h ‟ sA l p h a , t h e C o r r e c t e d I t e m –
T o t a l C o r r e l a t i o n w a s a l s o veryi m p o r t a n t N o r m a l l y , i f t h e c o r r e l a t i o n o f e a c h s p e c i f i c i t e m w i t h t o t a l o f t h e otheritemsinthescalewasquitehigh or higherthan0 4(GliemandGliem,2003;H a i r e t a l , 2 0 0 6 ) , s u c h i t e m w as a s s u m e d t h a t mostl i k e l y correlated w i t h mosto f o t h e r scaleitemsandwouldbecomeagoo dpartofthistotalratingrate.
T o t a l c o r r e l a t i o n o f a n y itemw a s negativeortoo low(lessthan0.4),itwas necessaryto re-considertheiteminterms ofw o r d i n g problemsandconceptualappropriateness(Leechetal.,2005).A modificationo r d e l e t i o n f o r s u c h itemsi n t h i s c a s e w a s e s s e n t i a l T h e r e s u l t s o f r el i ab i l i t y testf o r eac hc o n s t r u c t i n t he modelwer e s u m m a r i ze d in t h e t ab le b e l o w ( T a b l e 4.2).
Attitude–ATT(ATT1–ATT3) Cronbach’sAlpha =0.785
Subjective Norm-SJN (SJN1–SJN3) Cronbach’sAlpha =0.769
PerceivedServiceQuality-SEQ(PSQ1–PSQ6) Cronbach’sAlpha =0.738
PerceivedValue–PVL(PVL1–PVL4) Cronbach’sAlpha =0.926
BehavioralIntention–BEH(BEH1-BEH4) Cronbach’sAlpha =0.891
Ass h o w n i n T a b l e 4 2 , t h e r e s u l t s i n d i c a t e d s i g n i f i c a n t l y h i g h orveryh i g h internalreliabilityf o r mosttesteditems c a l e s i n c l u d i n g a t t i t u d e , s u b j e c t i v e n o r m , p e r c e i v e d s e r v i c e quality,p e r c e i v e d v a l u e , a n d b e h a v i o r a l i n t e n t i o n t o w a r d u s i n g formalcredit withthe val ue ofC ro nb ac h‟ sAlphagreater than0 7 CorrectedItem-
Remarkably,a m o n g s t s i x i t e m s o f p e r c e i v e d s e r v i c e q u a l i t y ( P S Q ) , c o r r e c t e d item- totalofPSQ4(i.e.Bankoffersspeedofservicesanddecisionprocess)andPSQ6( i e c o r r e c t i n g m i s t a k e s i n b a n k i s efficient)w e r e 0 3 2 a n d 0 3 5 l o w e r t h a n 0 4 , respectively,sothesetwoitemwereeliminated.
Insummary,all fivemeasurementscaleswerereliableinmeasuringthe researchc o n c e p t s becausetheyhadtheCronbach‟sAlphagreaterthan0.7.TheCorrectedite m-
T ot al correlationofseventeenoutofnineteenscaleitems(excludedPSQ4andPSQ6)w a s a lsosatisfiedthestandard(greaterthan0.4),thisindicatedthatseventeenscalesfitt h e requirementsf o r reliability.A s a r e s u l t , t h e s e m e a s u r e s w e r e u s e d i n e s t a b l i s h i n g t h e m a i n s u r v e y to t e s t t h e r e s e a r c h h y p o t h e s e s F o r t h e n e x t s t e p , t h e authorc o n d u c t e d t h e e x p l o r a t o r y f a c t o r a n a l y s i s ( E F A ) toc l a r i f y t h e v a l i d i t y o f m e a s u r e m e n t scales.
Exploratoryfactoranalysis (EFA)
EFAforIndependentconstructs
EFAh a d b e e n e m p l o y e d f o r confirmingt h e c o n s t r u c t validity.E F A c o u l d b e d e s c r i b e d aso r d e r l y s i m p l i f i c a t i o n o f i n t e r r e l a t e d measures.T h e m a i n a i m o f E F A w a s toinvestigatealargenumberofrelationshipsamongintervalvariables (Leechetal.,2 0 0 5 ) Byp e r f o r m i n g E F A , t h e r e s e a r c h e r c o u l d s e e h o w a l a r g e s e t o f itemsg r o up t o g e t h e r u n d e r a c l u s t e r ( L e e c h e t a l , 2 0 0 5 ) F o r t h i s study,E F A w o u l d b e c o n d u c t e d withPromaxrotationwasemployedinordertot akeouttheitemsonthesamescalebutexposedlowloadingsontheconstruct.Thisresea rchfollowedastrictc r i t e r i o n todeletefactorsthattheirloadingswerelowerthan0.4a ndthecomponentswithEigenvaluehigherthan1wereretained.
Bartlett'sTestof Sphericity Approx.Chi-Square 1.999E3
29 Ass h o w n i n T a b l e 4 3 , KM O v a l u e w a s 0 8 2 9 g r e a t e r t h a n 0 7 ( L e ec h e t a l , 2005)indicatedthatsufficientitemstomeasureeachconstruct.TheBartlett‟stestwas
29 alsosignificant(significancevaluewaslessthan5%)indicatedthatthevariableswereco r r el a t ed highlyenoughtobecomeagoodbasisforfactoranalysis.Insummary,botha c c e p t a n c e s f o r diagnostict e s t s e m p h a s i z e d t h a t t h e d a t a w e r e suitablef o r f a c t o r an alysis.
Allf a c t o r s h a v e e i g e n v a l u e s g r e a t e r t h a n 1,a n d thatt h e r e a r e f o u r factorse x t r a c t e d a n d t o t a l v a r i a n c e e x t r a c t e d w e r e 6 6 0 9 0 % ( g r e a t e r t h a n r e q u i r e m e n t o f 50%).T h u s, i t m e a n t t h a t moret h a n a h a l f o f v a r i a n c e c o u l d b e ex p l a i n e d byfourinitialfactors(seeTable4.4).
InitialEigenvalues ExtractionSumsofSquaredLoadings RotationSumsofS quared Loadings a Total % ofVarianc e
Cumulative% Total % ofVariance Cumulative% Total
TheP a t t e r n M a t r i x p r e s e n t e d t h e itemsa n d f a c t o r l o a d i n g s f o r f a c t o r s a f t e r r o t a t i o n , withtheacceptablestandardoffactorloadingswasmorethan 0.4(seeTable4.5).Thetotalseventeenitemsoffourindependentvariablesgroupedin tothesefourc o m p o n e n t s definedbyhighloadings.Theitems inthesameconstr uctafterrotatedal so a s s e m b l e d i n o n l y o ne c o m p o n e n t w i t h s t r o n g l o a d i n g s a n d n o t r e l a t e d toanyotherc o m p o n e n t s T h i s s h o w e d t h a t t h e itemso f e a c h c o n s t r u c t w e r e w e l l conceptualized.
ExtractionMethod:PrincipalAxisFactoring.R o t a t i o n Method:PromaxwithKaiser Normalization. a Rotationconvergedin5iterations.
EFAforDependent variable
BehavioralIntention,thefactorloadingsofa l l t h r e e itemsw e r e g r e a t e r t h a n 0 8 w h i c h m e t f a c t o r l o a d i n g s requirement(greaterthan0.5)asdepictedatTable4.7,and 73.163%ofdatavarianceisexplainedbyBEH(seeTable 4.8).Further, Table4.6 presented t ha tKMOvalue was0.749whichwasgreaterthan0.7.Thus,therewereenoug hitemstomeasureeachconstruct.TheBartlet‟stestwasalsosignificant(significancevalue waslessthan5%)showingt h a t thevariableswerewellcorrelated.
Kaiser-Meyer- OlkinMeasureofSamplingAdequacy 0.749 Bartlett'sTestofS p h e r i c i t y
Factor Total Variance % Total Variance %
MultipleRegressions
Resultsoftesting assumptions
Wastonwasbetween0and4,thebestwasaround2, itcould beconcludedthatthe residualswereindependent.Aspresentedi n A p p e n d i x H ( t a b l e M o d e l S u m m a r y ) , t h e v a l u e o f D u r b i n - W a s t o n w a s 1 4 5 7 soa ss u m p t i on 1wassatisfactory.
Withr e g a r d t o a s s u m p t i o n 2 o n l i n e a r r e l a t i o n s h i p b e t w e e n i n d e p e n d e n t variablesanddependentvariable,theshapeofoverallregressionplotcould helptotestthisassumption.Iftheoverallregressionplotmadeacurvilinearshape,it indicatedthatpredictorsdidnotlinearrelatetod e p e n d e n t v a r i a b l e Witht h e p l o t sh owninAppendixH,thisassumptionwaswellsupported.
Thisassumptiononnormallydistributedresidualscouldbeconfirmedbyd r a wi n g theresidualscatterplotchart.Ifthedotsinchartwerescattered,itmeantthatthedata mettheassumptionofresidualsbeingnormallydistributed.Inthisresearch,thisassu mptionwasconfirmed(seeAppendixH).
Multicollinearity is a critical assumption that must be met before conducting multiple regression analyses, as it can significantly affect the validity of data analysis results This issue arises when there are high intercorrelations among independent variables, leading to overlapping information between two or more predictors To assess the presence of multicollinearity, utilizing a correlation matrix can be an effective approach.
ATT SJN PSQ PVL BEH
AccordingtotheCorrelationsmatrix,thePearsontestindicatedthevaluelowertha n0.8andhadsignificant value(Sig
