(Luận văn) the adoption of tradecard payment in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business t to ng hi ep w n lo ad ju y th yi pl n ua al Luong Tung Bao n va fu ll Thesis oi m The Adoption of TradeCard payment in Vietnam at nh z z ht vb Supervisor: Prof Nguyen Dong Phong k jm November 2013 om l.c gm n a Lu n va y te re Acknowledgement t to ng The process of writing this thesis is a challenging task and an insightful research Without the hi ep love, the care, the full support and guidance from my professors and my friends, I may not reach the target and complete the journey successfully w First and foremost, I would like to express great gratitude to my thesis advisor, Dr Nguyen n lo Dong Phong for his help and guidance in conducting this research and thanks for his ad generous as well as his support during the time I study here Special thanks to Dr Dinh The y th ju Hoang for his dedicated guidelines in data analysis section And further thanks go to the yi members of my thesis committee for their feedback, comments and encouragement The pl thesis would not have achieved this quality without their assistance ua al Great thanks to my special friends in for their assistance in my life and my study Special n n va thanks to responders for their enthusiasm to help me collect the data and thanks to ISB ll fu friends for happy moments we spent together oi m Finally, I would like to give my deepest and greatest thanks to my family for their love and their encouragement Thank to my Dad who always trust me, teach me to be more patient to nh at achieve success in study and life; thank to my sweet Mom who always gives me tender cares z and encourages my dreams and aspirations z ht vb k jm om l.c gm n a Lu n va y te re Page i Abstract t to “Vietnam continues to be one of the world’s fastest growing sourcing locales, particularly for ng hi footwear and apparel,” said Drew Dempsey, Vice President of Global Services, TradeCard ep Asia-Pacific in celebration of opening new offices in Vietnam in 2012 w n TradeCard is one of among electronics payment methods applied for over eight years in lo ad Vietnam, marking a significant development for society in general and in banking y th particularly Besides that, more and more Vietnamese companies have started using ju TradeCard to support its business but it is still an unpopular concept for many Vietnamese yi people It has not caught on with the banks customer in Vietnam Thus, the main purpose of pl ua al this study is to identify the adoption of TradeCard in Vietnam n The study starts with the bases on some theory models such as Technology Acceptance va Model (TAM), and computer anxiety in performing TradeCard payment as a moderator to n ll fu employ for the analysis TradeCard payment adoption, specifically for TradeCard in Vietnam oi m Data of the quantitative survey is gathered from Vietnamese users in two biggest cities Ha Noi and Ho Chi Minh, who have been using this payment method with a snow ball sampling at nh method was used to sample the subjects z z The results are expected to support the proposed hypotheses They are expected to provide vb trading companies, bankers, and government with more information about the adoption of ht k in research and practice jm TradeCard in Vietnam Limitations, discussions and suggestions will be explained the results om l.c gm n a Lu n va y te re Page ii Table of Contents t to Acknowledgement i ng Abstract ii hi ep Table of Contents iii List of tables vi w n List of figures vii lo ad Chapter I: Introduction .1 y th 1.1 Background ju yi 1.2 Research Purpose, Objectives, and Research Questions pl 1.2.1 Research Structure al n ua 1.2 Scope and Limitations n va Chapter II Literature Review .4 ll fu 2.1 Definitions of Terms oi m 2.1.1 Electronics Banking nh 2.1.2 Electronics Money at 2.1.3 Electronics Payment z z 2.1.4 TradeCard payment vb ht 2.1.5 Electronics Payment Mean .4 jm 2.2 Electronics Commerce Market and Electronics Payment Market in Vietnam .5 k gm 2.3 Theoretical Background of Technology Acceptance Model om l.c 2.3.1 Technology Acceptance Model (TAM) 2.4 Factors influencing the use of TradeCard and its relationship between Model 2.4.1 Perceived Ease of Use (PEU) Page iii y 2.4.4 Information on TradeCard payment (IF) 10 te re and perceived risk with product/service (PRP)) n 2.4.3 Perceived Risk (perceived risk in the context of online transaction (PRT) va 2.4.2 Perceived Usefulness (PU) .8 n a Lu Constructs .8 2.4.5 Computer Anxiety (CA) 10 2.4.6 TradeCard payment Use (TPU) 11 t to 2.4.7 The Relationship among Perceived Usefulness (PU), Perceived Ease of ng Use (PEU) and TradeCard payment Use (TPU) 12 hi ep 2.4.8 Perceived Risk (PR) and TradeCard payment Use (TPU) 12 2.4.9 Information on TradeCard payment (IF) and Perceived Risk (PR) 13 w n 2.4.10 Information on TradeCard payment (IF) and Trade Card payment Use lo ad (TPU) .14 y th 2.4.11 Computer Anxiety (CA) on Trade Card payment Use (TPU) 14 ju 2.5 Research Model 15 yi pl Chapter III Research Design 16 al ua 3.1 Research Questions and Associated Hypotheses 16 n 3.2 Subjects and Sampling 16 va n 3.3 Instrument design 16 fu ll 3.4 Expert Validity 19 m oi 3.5 Pilot Test and Face Validity 19 nh at 3.6 Quantitative Research .19 z 3.7 Data Analysis 20 z vb Chapter IV Data Analysis 21 ht k jm 4.1 Data Collection 23 gm 4.2 Descriptive Analysis 23 l.c 4.2.1 Respondents’ Demographics 24 om 4.2.2 Descriptive Statistics 25 4.4 Explanatory Factor Analysis 28 y Page iv te re Product/Service 31 n 4.5.1 Information on TradeCard payment Predicting Perceived Risk with va 4.5 Regression Analysis 30 n a Lu 4.3 The Validity and Reliability 28 4.5.2 Information on TradeCard payment Predicting Perceived Risk in The Context of Online Transaction 32 t to 4.5.3 Variables Predicting TradeCard Payment Use .33 ng 4.5.4 Comparisons between Two City Groups in Regression Analysis 35 hi ep 4.6 Path Analysis 36 4.6.1 Effective Estimation of Perceived of Use on TradeCard payment Use 37 w n 4.6.2 Effective Estimation of Perceived Usefulness on TradeCard payment lo ad Use 38 y th 4.6.3 Effective Estimation of Computer Anxiety on TradeCard payment Use38 ju 4.6.4 Effective Estimation of Perceived Risk with Product/ Service on yi pl TradeCard payment Use 38 ua al 4.6.5 Effective Estimation of Information on TradeCard payment Use 38 n Chapter V Results 41 va n 5.1 Findings and Conclusions .41 fu ll 5.1.1 What Significant Factors Affecting the Use of TradeCard payment in m oi Vietnam 41 nh 5.1.2 How Significant Factors Affect the Use of TradeCard payment in at z Vietnam 42 z vb 5.3 Managerial Implication 43 ht 5.3.1 Perceived Ease of Use .43 jm k 5.3.2 Perceived Usefulness 43 gm 5.3.3 Perceived Risk with Product/Service 44 om l.c 5.3.4 Information on TradeCard Use .44 5.3.5 Computer Anxiety 45 a Lu 5.4 Limitations and suggestion 46 n Page v y APPENDIX C – TEST OF ASSUMSION OF REGRESSION 56 te re APPENDIX B – PILOT TEST ANALYSIS 54 n APPENDIX A – QUESTIONARE (ENGLISH/VIETNAMESE) 49 va References 47 List of Tables t to Table 3-1 Measure of research variables for designing questionnaire……………………… 17 ng Table 4-1 Response rate in Questionnaire Survey 23 hi ep Table 4-2 Response rate in Questionnaire Survey among professional groups 23 w Table 4-3 Demographic Statistics with Frequency and Percentage .24 n lo Table 4-4 Demographic Statistics with Frequency and Percentage .26 ad y th Table 4-5 Reliability of the Developed Questionnaire 28 ju Table 4-6 Principal Component Analysis of the Developed Questionnaire 29 yi pl Table 4-7 Correlation Coefficients among Independent Variables under Study .30 al n ua Table 4-8 Regression Analysis for Information on TradeCard payment Variables Predicting n va Perceived Risk in the Context of Online Transaction 31 fu Table 4-9 Regression Analysis for Information on TradeCard payment Variables Predicting ll Perceived risk with product/service 32 oi m Table 4-10 Regression Analysis for Variables Predicting TradeCard payment use .33 nh at Table 4-11 Hypothesis Test Summary of the Predictors Effect on Criteria 35 z z Table 4-12 Summary of the Regression Analysis for Separate City, Ha Noi and Ho Chi Minh vb ht 36 jm k Table 4-13 Summary of Estimating Direct and Indirect 38 gm Table 5-1 Summary of Hypothesis 42 om l.c n a Lu n va y te re Page vi List of Figures t to Figure 2-1 Research Model .15 ng Figure 3-1 Research Flowchart 21 hi ep Figure 3-2 The Structure of the Method approach for this Research 22 w Figure 4-1 Association of the Factors in Regression Analysis Model 34 n lo Figure 4-2 Relationships in Path Analysis Model 37 ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re Page vii Chapter I: Introduction 1.1 Background t to The Internet has grown at a remarkable pace over years, while e-commerce has become ng important issues nowadays, especially for international trade, TradeCard payment has been hi becoming an indispensable payment trend in a modern society However, the development ep banking system has largely been impacted by the dominance of cash in Vietnam For many years, cash is still the “king” in Vietnam and most transactions are dominated by cash since w n the considerable personal consumption is done through the medium of cash up to now For lo ad corporations in particular, this has resulted to problems of cost and delay, arising from the y th counting, bundling, transporting and depositing of large volumes of cash which has to be ju handled manually, as well as the risk and inconvenience in transactions with their fellow yi pl trader The State Bank of Vietnam (SBV) made efforts in reducing the volume of cash ua al payment transactions in the year 2006 by issuing non-cash-transaction project launched in n 2006, and expect to finish this project on 2020 (SBV, 2008) The result is total liquidity n va composition in Vietnam changed significantly in a positive manner when the ratio of cash in ll fu total liquidity continued reducing to 14,6% in the year 2008 (as compared to that of 16,36% oi m and 17,21% in 2007 and 2006 respectively) (SBV, 2008) nh Soon after joining WTO in the year 2004, many opportunities and threats for Vietnam at economic in general and banking industry are brought up for enterprises Vietnam has to z z change payment transaction behaviors to adapt the inevitable trend in the world Recent ht vb years, many new models of business have been appeared such as e-commerce, e-business, jm thus, IT has to be equipped in banking system to enhance their quality of services in k satisfying customer’s expectation Since almost banks offer same services, the application of gm new technology in bank becomes the determinant factors deciding the success of bank in om l.c compete customer’s belief in long term resulted to many kinds of modern banking applications are now applied in Vietnamese bank The State Bank of Vietnam has made project in 2006 throughout 2020 Besides, banks alliances are formed and developed quickly, y te re payment system in society n trading Thereby it is time to enhance customer awareness and disseminate the TradeCard va TradeCard payment forms are more diversified as a standard payment term for international n a Lu efforts in reducing the volume of cash payment transactions by issuing non-cash-transaction Page There have been some previous research on e-commerce and e-banking before, but they only focus on developed countries with the advantage in IT technology For example, researches t to on the adoption internet banking in European, North America, and Finland the leading ng countries in online banking technology and usage Later other researchers extent in other hi regions including a mix of developed and developing countries are Singapore (Tan &Teo, ep 2000), Hong Kong (Chan & Lu, 2004; Ho & Ng, 1994) Despite a few works are done to address the electronics payment (Ho & Ng, 1994; Plouffe, Hulland & Vandenbosch, 2001), w n however, authors just focus on developed countries with advantage in IT knowledge lo ad Therefore, this research will analyze the TradeCard payment in Vietnam, which is known as a y th developing country Differently, this study focuses on TradeCard payment which is a typical ju TradeCard payment of e-commerce and e-transactions in a developing country in which IT yi pl and e-banking systems are still young al n ua 1.2 Research Purpose, Objectives, and Research Questions va The main purpose of this study is to identify adoption of TradeCard payment in Vietnam n through factors influencing directly to its payment process for a developing country case as fu ll well as how the factors influencing the adoption of TradeCard payment in Vietnam The m oi study hopes to bring general knowledge about electronics payment transaction to Vietnamese at nh customers by clarifying which factors are essential and critical for TradeCard payment use Factors influencing the adoption of TradeCard payment may be the foundation of related z z organizations that can help them can propose programs in order to approach and serve the vb ht customers effectively This study aims to examine the factors influencing the adoption of k jm TradeCard payment with the these specific objectives identified as following om l.c Q1 What are main factors influencing adoption of TradeCard in Vietnam? The corresponding research question developed was: gm To identify significant factors that influence customer’s adoption of TradeCard payment n The corresponding research question developed was: a Lu To explore how the factors affect customer’s adoption of TradeCard payment in Vietnam va n Q2 How the factors influencing adoption of TradeCard in Vietnam? te re y 1.2.1 Research Structure This research is organized into chapters (ch.1) Introduction is to provide general introduction of the research, (ch.2) Literature review is a brief review of the literature on Page