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VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY DINH TIEN DUNG FACTORS AFFECTING CUSTOMERS’ USAGE INTENTION OF ONLINE FOOD ORDERING SERVICES IN VIETNAM MASTER’S THESIS BUSINESS ADMINISTRATION Hanoi, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY DINH TIEN DUNG FACTORS AFFECTING CUSTOMERS’ USAGE INTENTION OF ONLINE FOOD ORDERING SERVICES IN VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 60340102 RESEARCH SUPERVISORS: DR TRAN BICH HANH PROF DR MOTONARI TANABU Hanoi, 2019 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT First and foremost, I would like to express my sincere gratitude towards my thesis advisors Dr Tran Bich Hanh of the Department of Business Administration at Vietnam Japan University and Prof Dr Motonari Tanabu of the Department of Business Administration at Yokohama National University Every journey start with a single step, without your guidance and support, I would not imagine that I could go that far on academic research Without their assistance and dedicated involvement throughout the process, this paper would have never been accomplished Secondly, I want to express my deep gratitude to my family, my company’s colleagues and my fellow classmates for holding me with countless supports and encouragements during my master study Two years of studying and working at the same time was not easy for me, but all obstacles and constrains have been left behind thanks to their understandings and supports Finally, I also would like to send to all the professors and faculty members in Vietnam Japan University, Yokohama National University and all supporting organizations for the past two years and especially the wonderful four-month internship in Japan This accomplishment would not have been possible without them Thank you Author Dinh Tien Dung LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF ABBREVIATIONS CHAPTER 1: INTRODUCTION 1.1 Research Background 1.2 Research objectives 1.3 Research Scope 1.4 Research Structure CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT 2.1 Review of conceptual framework and literature background 2.2 Review of relevant theoretical models 2.3 Hypotheses development and conceptual model 10 2.1.1 Performance Expectancy (PE) 12 2.1.2 Effort Expectancy (EE) 12 2.1.3 Social Influence (SI) 13 2.1.4 Facilitating Conditions (FC) 14 2.1.5 Hedonic Motivation (HM) 14 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2.1.6 Price Value (PV) 15 2.1.7 Habit (HB) 15 2.1.8 Trust 16 2.1.9 Consumer Innovativeness 17 2.4 Research conceptual model 19 CHAPTER 3: METHODOLOGY 20 3.1 Research Design 20 3.2 Research Procedures 21 3.3 Sample Population 22 3.4 Variables and Measuring Instruments 22 3.5 Analysis Method 23 3.5.1 Descriptive Analysis 24 3.5.2 Inferential Analysis 24 CHAPTER 4: ANALYSIS RESULTS 25 4.1 Demographic Analysis 25 4.2 Scale Measurement of Constructs 28 4.2.1 Reliability Test 29 4.2.2 Validity Test 29 4.3 Inferential Analysis 31 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 5: DISCUSSION AND CONCLUSION 40 5.1 Discussion 40 5.2 Theoretical implications 44 5.3 Practical implications 44 5.4 Limitations and future research directions 45 REFERRENCES 47 APPENDIX 51 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Page Table 2.1 Models and Constructs Summary Table 2.2 Definition of research constructs 11 Table 4.1 Frequency of demographic information of participants 25 Table 4.2 Respondents’ Frequency of Using Online Food Ordering Services 27 Table 4.3 Respondents’ post-experience of online food ordering services 27 Table 4.4 Coding of variables 28 Table 4.5 Cronbach’s Alpha coefficient value of all variables 29 Table 4.6 KMO and Bartlett’s Test results 30 Table 4.7 Rotated Component Matrix 30 Table 4.8 Pearson Correlation Coefficient Matrix 32 Table 4.9 Model Summary 33 Table 4.10 Linear Regression Results and Extractions 34 Table 4.11 Structural relationships and hypotheses testing 35 Table 4.12 Moderator Testing Results 36 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Page Figure 2.1 The UTAUT2 Model Figure 2.2 Conceptual Model 19 Figure 4.1 Statistical Moderating Model 36 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF ABBREVIATIONS Df: Degree of freedom DOI: Diffusion of Innovation EE: Effort Expectancy EFA: Exploratory Factor Analysis FC: Facilitating Condition HB: Habit HM: Hedonic Motivation IFI: Incremental fit index PE: Performance Expectancy PV: Price Value SCT: Social Cognitive Theory SI: Social Influence TAM: Technology Acceptance Model TPB: Theory of Planned Behavior TRA: Theory of Reasoned Action UTAUT: Unified Theory of Acceptance and Use of Technology UTAUT2: Extended Unified Theory of Acceptance and Use of Technology LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: INTRODUCTION 1.1 Research Background The market for online products and services has been increasing rapidly as most daily activities nowadays involve the use of internet and mobile applications In Internet of Things era, this is not only potential but also essential for organization to work on online mode as it is gradually changing the traditional business model With more users worldwide, organizations will be able to engage and interact with consumers through online marketplace as promoting their products and services via website and mobile applications It has embarked many scholars studying on topic of online products and services for the past decade Notably, online shopping emerged as one of the most popular topic thanks to its practical implications on marketing and business strategy According to Internet World Stats (2018), Vietnam has an Internet penetration rate roughly 65.7% which shows that Vietnamese people are actively involved in online activities Notably, Singh & Matsui, 2017 found that the increasing in Internet penetration rate positively attribute to the growth of online shopping because Internet users perceived many benefits through online shopping Even though Vietnam is relatively behind in Internet universalization in comparison with more developing countries in South East Asia like Malaysia (77.3%), Thailand (82.2%), Singapore (82.5%), Vietnam is emerging as very promising market for e-commerce and online services development In today fast-paced lifestyle, many people pursuing productive and time saving orientation by reducing the time for personal need activities Instead of waiting for a meal in restaurant or going out to buy food and drink, a part of our citizen intends to enjoy online services’ advantages Online food ordering services are gradually showing their efficiency by matching with marketplace need In general, food industry is arguably a LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com online food ordering services Social influence, facilitating conditions and habit are the insignificant factors influencing customer adoption of online food ordering services in Vietnam Those three factors have been assessed as inconsistent predictors of customer behavior intention in some UTAUT2 adoption studies (Tandon & Kiran, 2018; Singh & Matsui, 2017) It can be explained that online food ordering service is relatively new industry in Vietnam, thus, habit certainly has low impact on people behavioral intention Traditionally, majority of Vietnamese people enjoyed their own food preparation Nonetheless, American or Western people preferred fast food and restaurant meals outside This different in behavior likelihood leads to insignificant adoption of habit toward online food ordering services in context of this study On the other hand, social influence, facilitating conditions slightly failed to influence usage intention of Vietnamese customer Even though it is in line with many previous researches, this study found the customer with high novelty-seeking tendency will associate social influence and facilitating condition with their usage intention of online food ordering services Finally, consumer innovativeness is an additional contribution to this research Its moderating effect has been studied in many pieces of researches on domain specific of online shopping and technology adoption Several researchers found positive enhancement of consumer innovativeness to moderate the effect of performance expectancy, price value or hedonic motivation to behavioral intention (Alagoz & Hekimoglu, 2012; Escobar-Rodríguez & Carvajal-Trujillo, 2014; Fowler & Bridges, 2010; Leicht et al., 2018; Natarajan, Balasubramanian, & Kasilingam, 2017) However, this study challenges those results by insignificant statistic result in online food ordering context It could be reconsidered in large sample size study but also describe a different perspective for consumer innovativeness on food and edible product and service-related study 43 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 5.2 Theoretical implications As online food ordering services is emerging industry in Vietnam, this study successfully proposes an early research on new section of online services and e-commerce in local area By using one of the latest models of technology adoption, this research provides an theoretical basement for assessing driven factors affecting customer behavior intention to use online food ordering services in Vietnam On the other hand, by adding trust as an additional construct to original UTAUT2 model, this study contributes to enrich knowledge and utilization of UTAUT2 model in every aspect related to technology adoption The analysis results also challenge several previous conclusions on impact of UTAUT2 constructs to behavioral intention and use intention Thus, it embarked future researchers to find a concrete result It also marked author effort to examine the moderator effect of consumer innovativeness in research model This paper is an early research on assessing the effects of consumer innovativeness reflected on overall UATUT2 constructs Even though the effects are not widely supported for majority of research variables It is considerable as a theoretical contribution and reference for future research 5.3 Practical implications From the standpoint of practical implications, understanding influential factors to online food ordering service will return in benefit for marketing activity of services provider Indeed, since performance expectancy and effort expectancy show significant impact on customer behavior intention, raising awareness of being useful and ease of use will match online food ordering services with potential customers’ attention Besides that, customer perceived of joyfulness, fun and excitement when using service product is precious notation for service provider Thus, providing quality services but also entertain procedures will accelerate the customer usage time and quick adoption The typical price sensitive of Vietnam consumer also give a competitive advantage for a service supplier 44 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com who can offer good promotion and better price value campaign Thus, this study is a valuable reference for manager and marketer prior to conducting market penetration research and releasing their products and services that footprints their brand awareness and effectiveness in customer mind 5.4 Limitations and future research directions Firstly, the sample size of the study is small and limited of 224 respondents In addition, the sampling method is purposive sampling Therefore, it might not duly represent the population of this research Purposive sampling also gives lack of population characteristics since many potential customers opinion might not appeared in the research Moreover, because of time and cost constrains, the questionnaire was mainly distributed online, so that time and interaction is uncontrollable criteria, that may lead to respondent bias and incorrect data in subsequence For more accuracy in data analysis, a more appropriate data collection method and a larger sample size must be considered Secondly, in the data analysis section, the author used two approaches toward evaluate the effect of independent variables on the research outcome The regression model brings overview of customer behaviors when all research elements were tested simultaneously Thus, its result reflected different direction in compared with moderating model which applied for isolate consideration the influence of individual predictor on the usage intention Nonetheless, as mentioned discussion, those hypotheses are reasonable in context of beginning stage of online food ordering service in Vietnam In conclusion, the future research is in needed to both clarify the consistency of hypothesis testing and find out the consensus of research model analysis approach Since one of the profound contributions of this paper is testing on an additional independent variable and a moderator, future research could investigate and establish research model based on their own viewpoint of study objectives Because even if UTAUT2 widely accepted in technology adoption or online shopping, there are many 45 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com domain specific objectives require a further development of research constructs Thus, follow-up studies should incorporate more dimensions and variables on existing model to provide more comprehensive and accurate results for study of technology adoption Finally, this research explains the time frame of technology adoption relatively related to effect of driven factors toward research outcome At beginning stage of online food ordering services in Vietnam, price value might be the most significant, but future studies can observe the adoption intention in the middle and post adoption stages 46 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com REFERRENCES Alagoz, S M., & Hekimoglu, H (2012) A Study on Tam: Analysis of Customer Attitudes in Online Food Ordering System Procedia - Social and Behavioral Sciences, 62, 1138– 1143 https://doi.org/10.1016/j.sbspro.2012.09.195 Alalwan, A A., Dwivedi, Y K., & Rana, N P (2017) Factors influencing adoption of mobile banking by Jordanian bank customers: Extending UTAUT2 with trust International Journal of Information Management, 37(3), 99–110 https://doi.org/10.1016/j.ijinfomgt.2017.01.002 Amoh, S (2016) Mobile Money Services Adoption and Customer Behavioural Intentions in Ghana., 37, 426–447 Aswani, R., Ilavarasan, P V., Kar, A K., & Vijayan, S (2018) Adoption of public WiFi using UTAUT2: An exploration in an emerging economy Procedia Computer Science, 132, 297–306 https://doi.org/10.1016/j.procs.2018.05.180 Dellaert, B G C., & Ruyter, K De (2004) What drives consumers to shop online? A literature reviews https://doi.org/10.1108/09564230410523358 Dodds, W B., Monroe, K B., & Grewal, D (1991) Effects of Price, Brand, and Store Information on Buyers’ Product Evaluations Journal of Marketing Research, 28(3), 307 https://doi.org/10.2307/3172866 Escobar-Rodríguez, T., & Carvajal-Trujillo, E (2014) Online purchasing tickets for low cost carriers: An application of the unified theory of acceptance and use of technology (UTAUT) model Tourism Management, 43, 70–88 https://doi.org/10.1016/j.tourman.2014.01.017 Harris, M A., Brookshire, R., & Chin, A G (2016) Identifying factors influencing consumers’ intent to install mobile applications International Journal of 47 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Information Management, 36(3), 441–450 https://doi.org/10.1016/j.ijinfomgt.2016.02.004 Hayes, A F (2017) Introduction to mediation, moderation, and conditional process analysis: A regression-based approach Guilford Publications Kang, H., & Fortin, D R (n.d.) Effects of Perceived Behavioral Control on the Consumer Usage Intention of E-coupons, 23(October 2006), 841–864 http://doi.wiley.com/10.1002/mar.20136 Khalilzadeh, J., Ozturk, A B., & Bilgihan, A (2017) Security-related factors in extended UTAUT model for NFC based mobile payment in the restaurant industry Computers in Human Behavior, 70, 460–474 https://doi.org/10.1016/j.chb.2017.01.001 Lee, E Y., Lee, S B., & Jeon, Y J (2017) Factors Influencing the Behavioral Intention To Use Food Delivery Apps Social Behavior & Personality: An International Journal, 45(9), 1461–1473 https://doi.org/10.2224/sbp.6185 Leicht, T., Chtourou, A., & Ben Youssef, K (2018) Consumer innovativeness and intentioned autonomous car adoption Journal of High Technology Management Research, 29(1), 1– 11 https://doi.org/10.1016/j.hitech.2018.04.001 Limayem, M., Khalifa, M., & Frini, A (2000) What makes consumers buy from Internet? A longitudinal study of online shopping IEEE Transactions on Systems, Man, and Cybernetics Part A: Systems and Humans., 30(4), 421–432 https://doi.org/10.1109/3468.852436 Lin, C (2014) Factors affecting online repurchase intention, 114(4), 597–611 https://doi.org/10.1108/IMDS-10-2013-0432 Madigan, R., Louw, T., Wilbrink, M., Schieben, A., & Merat, N (2017) What influences 48 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com the decision to use automated public transport? Using UTAUT to understand public acceptance of automated road transport systems Transportation Research Part F: Traffic Psychology and Behaviour, 50, 55–64 https://doi.org/10.1016/j.trf.2017.07.007 Narteh, B., Mahmoud, M A., & Amoh, S (2017) Customer behavioral intentions towards mobile money services adoption in Ghana Service Industries Journal, 37(7–8), 426–447 https://doi.org/10.1080/02642069.2017.1331435 Natarajan, T., Balasubramanian, S A., & Kasilingam, D L (2017) Understanding the intention to use mobile shopping applications and its influence on price sensitivity Journal of Retailing and Consumer Services, 37(January), 8–22 https://doi.org/10.1016/j.jretconser.2017.02.010 Ryu, E., Couper, M P., & Marans, R W (2006) Survey incentives: Cash vs in-kind; Face- to-face vs mail; Response rate vs nonresponse error International Journal of Public Opinion Research, 18(1), 89–106 https://doi.org/10.1093/ijpor/edh089 Singh, M., & Matsui, Y (2017) How Long Tail and Trust Affect Online Shopping Behavior: An Extension to UTAUT2 Framework Pacific Asia Journal of the Association for Information Systems, 9(4), 1–24 Tam, C., Santos, D., & Oliveira, T (2018) Exploring the influential factors of continuance intention to use mobile Apps: Extending the expectation confirmation model Information Systems Frontiers https://doi.org/10.1007/s10796-018-9864-5 Tandon, U., Kiran, R., & Sah, A N (2018) The influence of website functionality, drivers and perceived risk on customer satisfaction in online shopping: an emerging economy case Information Systems and E-Business Management, 16(1), 57–91 https://doi.org/10.1007/s10257-017-0341-3 49 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Venkatesh, V (2012) Consumer acceptance and use of information technology: Extending the unified theory, 36(1), 157–178 Yeo, V C S., Goh, S K., & Rezaei, S (2017) Consumer experiences, attitude and behavioral intention toward online food delivery (OFD) services Journal of Retailing and Consumer Services, 35(July 2016), 150–162 https://doi.org/10.1016/j.jretconser.2016.12.013 Yu, V F., & Ting, H I (2011) Identifying key factors affecting consumers’ choice of wealth management services: An AHP approach Service Industries Journal, 31(6), 929–939 https://doi.org/10.1080/02642060903078750 50 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com APPENDIX Questionnaires Hi everyone, I am Dinh Tien Dung - a graduate student from Vietnam Japan University (VJU), Master Business Administration (MBA) I am conducting marketing research on "Factors affecting customers' usage intention of online food ordering services in Vietnam" Online food ordering services are hereby understood as directly online ordering food via website or mobile application of a restaurant (eg Pizza Hut, KFC, Lotteria and so on), or you can simply search for your meals via a third-party mobile applications whose service act as mediator between customer and restaurant (such as Grab Foods, Go Food, Now (Foody), Vietnammm and so on) Online food ordering, have you ever tried? If YES, congratulations! I hope you have been enjoying it If NO, this survey is more than a curiosity waiting for you to explore the momentum of using this special online service Your response is always highly appreciated There is no right, no wrong and I hereby assure you that your opinions are for research purposes only and are strictly confidential Sincere thanks! P/s: Gift4U - If you are looking for a business/personal development/foreign language learning e-book or research paper, I'm more than pleased to find it for you Don't forget to leave your request at the end of this survey 51 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Section 1: Personal Information Your gender Male Your age Under 18 Female From 18 to 25 From 26 to 35 From 35 to 50 Over 50 Education High School Graduate Intermediate College Bachelor's Degree Master's Degree or Higher Marriage Status Single Occupation Student Married Office Staff Manager 52 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Other Monthly income Below million – 10 million 11 – 20 million More than 20 million Section 2: What kind of online food ordering services which you have already used? Direct online service from the restaurants, food stores (KFC/Lotteria/Pizza Hut/ ) Indirect via a third-party application (Grab Foods/GO-Food/NOW (Foody)/ ) Both of them Your frequency of using online food ordering services? Seldom (1-2 times/month) Sometimes (3-4 times/month) Often (1-2 times/week) Very often (3-4 times/week) Always (more than times/week) Section 3: Please choose to what extent you agree with followings statement (Strongly Disagree (1), Disagree (2), Neutral (3), Agree (4), Strongly Agree (5)) Items Statements Sources I find online food ordering service is useful PE Using online food ordering service enhance my effectiveness Venkatesh et al., 2003 on the food ordering 53 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com I find using online food ordering service advantageous for me Learning how to use online food ordering service is easy for me EE Online food ordering service’s interface is concise and understandable It is easy for me to become Amoh (2016) Venkatesh et al (2003) skillful at using online food 7.ordering People service who influence my behavior think that I should use food ordering serviceto me 8.online People who are important SI think that I should use online food Venkatesh et al (2003) 9.ordering People service whose opinions that I value suggest me to use online food ordering 10 I can controlservice over whole online food ordering service process 11 I have the knowledge necessary to use online food ordering service FC 12 Online food ordering service is compatible with other technologies I use 13 I can get assistant when I have Aswani et al (2018) Lee et al (2017) Venkatesh et al (2012) difficulties using online food ordering 14 Using service online food ordering service is fun HM 15 Using online food ordering Yeo et al (2017) service is enjoyable 54 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 16 Using online food ordering service is entertaining Venkatesh et al (2012) 17 Online food ordering service is reasonably priced 18 Online food ordering service is PV Tandon (2018) value for money 19 Online food ordering service Venkatesh et al (2012) often offers discounts and promotions which are highly tractive, money.with 20 I find value myselffor familiar online food ordering service Yeo et al (2017) HB 21 The use of online food ordering service has become natural to me 22 I am addicted to use online food ordering service Venkatesh et al (2012) 23 I find that online food ordering service from online vendor or/and application is trustworthy 24 I feel secured to install online TR food ordering service application (if any) 25 I feel secured to proceed Narteh et al (2017) Alalwan et al (2017) payment for online food ordering service 26 If there is an opportunity, I UI would like to utilize online food Venkatesh et al (2012) ordering service 55 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 27 I have an intention to recommend online food ordering service to my friends 28 In general, I am among the first in my circle of friends to use online food ordering service when it appears 29 If I heard that a new online food ordering service was available, I would be interested to use it CI 30 Compared to my friends I use a lot of online food ordering service Leicht et al (2018) Madigan et al (2017) Chen (2014) 31 In general, I am the first in my circle of friends to know the latest online food ordering service Midgley & Dowling (1978) 32 I like to use online food ordering service before other people 56 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 57 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... effect of habit on usage intention of online food ordering services Hypothesis 9h: Consumer innovativeness positively moderates effect of trust on usage intention of online food ordering services. .. products and services usage intention In short, hedonic motivation positively related to customer usage intention of online food ordering services Online food ordering services in Vietnam commenced... opportunities and rapid increase of internet users, it is essential to identify the factors affecting consumer’s usage intention to online food ordering services Since online ordering services is a technology,
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