Khóa luận tốt nghiệp: Research on factors influencing electronic payment when shopping online on e-commerce platform of Hanoi people

Addressing thesechallenges is crucial for the further growth and acceptance of electronic payments inVietnam's e-commerce landscape.For the above reasons, the author conducts the study:

RESEARCH ON FACTORS INFLUENCING ELECTRONIC PAYMENT WHEN SHOPPING

ONLINE ON E-COMMERCE PLATFORM OF HANOI

RESEARCH ON FACTORS INFLUENCING ELECTRONIC PAYMENT WHEN SHOPPING

ONLINE ON E-COMMERCE PLATFORM OF HANOI

5 Structure of the study

CHAPTER 1: THEORETICAL BASIS AND LITERATURE REVIEW

1.1 Literature review

1.1.1 Problem 1: Use of TRA and TPB

1.1.2 Problem 2: Use of TAM and UTAUT

1.3.3 Technology Acceptance model (TAM)

1.2.4 Unified Theory of Acceptance and Use of Technology (UTAUT)20CHAPTER 2: RESEARCH DESIGN

2.1 Research hypotheses and model

2.1.1 Hypotheses

2.1.1.1 Performance Expectancy2.1.1.2 Effort Expectancy

2.1.1.3 Social Influence2.1.1.4 Facilitating Conditions

2.3.1 Data collection method

2.3.1.1 Secondary data collection

2.3.1.2 Primary data collection

2.3.1.3 Sample design and sampling methods

2.3.2 Data analysis and processing method.

2.3.2.1 Descriptive statistics

CHAPTER 3: RESEARCH RESULT AND DISCUSSION

3.1 Sample characteristics

3.1.1 Statistics on electronic payment usage behavior

3.1.2 Statistics on demographic characteristics

3.2 Scales Reliability

3.3 Exploratory factor analysis (EFA)

3.3.1 Factor analysis for independent variables

3.3.2 Factor analysis for the dependent variable

3.4 Testing models and research hypotheses

4.2.1 For electronic payment providers

4.2.2 For online stores

4.2.3 For regulatory Agency

REFERENCES

APPENDIX

1 Ecommerce Electronic Commerce

2 EFA Exploratory Factor Analysis

3 TAM Technology Acceptance Model

4 TPB Theory of Planned Behavior

5 TRA Theory of Reasoned Action

6 UTAUT Unified Theory of Acceptance and Use of

Technology

LIST OF FIGURES

Figure 1.1: Theory of Reasoned Action model

Figure 1.2: Theory of Planned Behavior model

Figure 1.3: Technology Acceptance Model

Figure 1.4: UTAUT model

Figure 2.1: Proposed research model

Figure 3.1: Histogram of Standardized Residual

LIST OF TABLE

Table 2.1: Measurement scales

Table 3.1: Heard of Electronic Payment Method

Table 3.2: Usage of Electronic Payment Method

Table 3.3: Frequency of using electronic payments

Table 3.4: Statistics on demographic characteristics

Table 3.5: Cronbach’s Alpha

Table 3.6: KMO and Bartlett test results for independent variables

Table 3.7: Eigenvalues and variance extracted from independent variables 47Table 3.8: Rotated component matrix with independent variable

Table 3.9: KMO and Bartlett test results for independent variables

Table 3.10: Eigenvalues and variance extracted from independent variables 51Table 3.11: Rotated component matrix with independent variable

Table 3.12: Results of KMO and Bartlett's Test for the dependent variable 54Table 3.13: Eigenvalues and variance explained for dependent variable 54Table 3.14: Pearson’s correlation analysis

Table 3.15: Adjust R square result

Table 3.16: Regression analysis results

E-commerce in Vietnam has witnessed a remarkable trajectory of growth,establishing itself as a significant player in the Southeast Asian digital market One

of its most notable achievements is its resilience and stability, even in the face ofglobal economic downturns This stability is not just a testament to the robustness

of the sector but also to the adaptability and evolving nature of Vietnamesebusinesses The country has capitalized on the e-commerce boom, leading toemerging opportunities, especially in the logistics sector Efficient logistics haveplayed a pivotal role in ensuring timely deliveries, enhancing customer satisfaction,and building trust in online shopping Furthermore, the Vietnamese e-commerce landscape is characterized by a diverse range of platforms, each catering to differentmarket segments, offering consumers a plethora of choices and convenience at theirfingertips However, like any burgeoning industry, the e-commerce sector in Vietnam is not without its challenges One of the primary barriers is the hurdles newentrants face when trying to penetrate the market The established competition,combined with the unique dynamics of the Vietnamese market, can be daunting fornewcomers Additionally, there are inherent challenges related to infrastructure,stringent regulations, and building consumer trust These barriers, if not addressed,could potentially hinder the exponential growth trajectory of e-commerce inVietnam In essence, while the achievements of Vietnam's e-commerce sector arecommendable and set a precedent for other emerging markets, it is imperative toaddress the existing challenges to ensure sustained growth and prosperity in thedigital age.

Besides the challenges mentioned above, electronic payment is also a problemwhen shopping on e-commerce sites in Vietnam Electronic payment, while gainingpopularity in Vietnam, faces several challenges when it comes to online shopping

on e-commerce platforms One of the primary challenges is the lack of trust in

still in its developmental phase, leading to occasional downtimes and transactionfailures Additionally, there's a lack of widespread awareness and understanding ofelectronic payment methods among the older generation, making them hesitant toadopt such methods While online shopping and electronic payments have seen anincrease in popularity, the transition from cash-based transactions, deeply rooted inVietnamese commerce culture, to digital payments is gradual Addressing thesechallenges is crucial for the further growth and acceptance of electronic payments inVietnam's e-commerce landscape.

For the above reasons, the author conducts the study: Research on factorsinfluencing electronic payment when shopping online on e-commerce platform ofHanoi people

2 Research objectives

2.1 General objective

This study will examine the factors influencing the adoption and utilization ofelectronic payment methods by Hanoi residents while shopping online on e-commerce platforms Based on the findings, the study will provide properrecommendations and implications for the e-commerce platforms to attract morecustomers, specifically in Ha Noi.

2.2 Specific objectives

First, identify the factors affecting the adoption of electronic payment methods

by Hanoi residents while shopping online on e-commerce platforms.

Second, quantify the magnitude of the impact of these factors on the adoption

of electronic payment methods by Hanoi residents while shopping online on commerce platforms

e-Corresponding to the proposed research objectives, this topic aims to answer the following questions:

First, what is the factors affecting the adoption of electronic payment methods

by Hanoi residents while shopping online on e-commerce platforms?

Second, how these factors impact on the adoption of electronic paymentmethods by Hanoi residents while shopping online on e-commerce platforms?

Third, what are recommendations and implications for the e-commerceplatforms to attract more customers, specifically in Ha Noi?

4 Research subject and scope

4.1 Research subject

Factors influencing electronic payment when shopping online on e-commerceplatform of Hanoi people

4.2 Research scope

Spatial scope: Ha Noi

Time scope: September 2023 to October 2023

Content Scope: studying about factors impact on the adoption of electronicpayment methods by Hanoi residents while shopping online on e-commerce platforms; recommendations and implications for the e-commerce platforms toattract more customers, specifically in Ha Noi

5 Structure of the study

Chapter 1: Theoretical basis and literature review

Chapter 2: Research Design

1.1 Literature review

1.1.1 Problem 1: Use of TRA and TPB

An empirical analysis of Kolkata's adoption of electronic payments wasoffered in the research of Roy & Sinha (2014) Perceived Ease of Use (PEOU),Perceived Usefulness (PU), Perceived Credibility (PC), Perceived Risk (PR), andCustomer Attitude (CUAT) to electronic payment Acceptance were all examinedusing the model that was developed English-language structured survey questionswere given out to 650 randomly chosen individuals from many different sectors.The most important predictor among the variables is determined to be perceivedease of use (PEOU) On the other hand, it was discovered that consumer attitudehad the least significant impact on the adoption of e-payment The results show thatcustomers must utilize this online payment option more frequently The morecustomers utilize the new technology, the more accommodating it will be to them.Followed that, the goal of Liébana-Cabanillas, et al (2018) is to create a novelresearch model for predicting the most important variables affecting m-paymentusage In order to do this, the authors conducted a study using an online poll of anationwide sample of Spanish smartphone users In order to identify the factors thathad a significant impact on the adoption of mobile payments, structural equationmodeling (SEM) and the neural network model were both employed The neuralnetwork model was then used to rank the relative importance of the importantpredictors identified by SEM Perceived usefulness and perceived security factorswere shown to have the most effects on the intention to use in this study On theother hand, the outcomes of the neural network analysis supported many of theSEM findings while also providing a somewhat different order of the relevantpredictors’ relative weights Additionally, perceived compatibility and simplicity ofuse both had a close to equal impact on perceived usefulness However, SEM

variations in SEM and ANN outcomes Nguyen Hong Quan (2021) examined theeffects of online payment elements on customers’ purchasing intentions andpayment choices in Hanoi B2C e-commerce, the study also seeks to establish a linkbetween the impact variables Data were acquired through a random questionnairewith 284 customer replies The reliability analysis, exploratory factor analysis, confirmatory factor analysis, and linear regression model were used to examine thedata Using electronic payment methods on B2C e-commerce platforms, the resultsdemonstrate that utility, convenience of use, popularity, support policy, and safetyhave a favorable influence on customers’ buy intentions and payment decisions Theauthor suggests that companies need to increase the convenience of electronicpayment, create convenience in using electronic payment, strengthen propagandaand popularization of electronic payment solutions, and implement good supportpolicy in electronic payment, as well as ensuring safety in electronic payment.

1.1.2 Problem 2: Use of TAM and UTAUT

By putting forth an original research model that combines the benefits of twowell-known theories—the extended unified theory of acceptance and use of technology (UTAUT2) and the innovation characteristics of the diffusion ofinnovations (DOI), with perceived security and intention to recommend thetechnology constructs, Oliveira, et al (2016) contribute to the body of knowledge onthis topic Using 301 replies from an online survey carried out in Portugal, a country

in Europe, the study model was empirically evaluated Structured equationmodeling (SEM) was used to examine the data They discovered that the acceptance

of mobile payments and the desire to advocate this technology are significantlyinfluenced by compatibility, perceived technological security, performanceexpectations, innovation, and social impact Additionally, it was established thatcustomers intended to endorse mobile payment technology in social networks and

build, improve, and execute mobile payment systems, applications, and productsthat achieve high customer acceptability, value, and high rates of favorable referrals

in social networks, practitioners must have a solid grasp of the main constructs.Shankar & Datta (2018) expand this framework They proposed a conceptualframework based on the technology acceptance model (TAM) in order to investigate the elements influencing mobile payment (m-payment) adoptionintention in India To assess m-payment adoption intention in India, four user-centric constructs have been developed in addition to the TAM construct By usinginformation gathered from 381 potential m-payment service customers throughonline and offline surveys, the suggested study model was empirically evaluated.The structural equation modeling (SEM) method was used to analyze the data Theresults indicate that perceived ease of use (PEOU), perceived usefulness (PU), trust,and self-efficacy (SE) have a substantial beneficial influence on m-paymentadoption intention However, neither subjective norms (SN) nor individualcreativity (PI) significantly influences the desire to embrace m-payments.Organizations might adjust their tactics after learning more about user-centricconsiderations The company may also position its services in accordance withclient preferences, which might quicken uptake The outcomes also give thirdparties, banks, and other m-payment-related organizations vital information Thegovernment will benefit from this study's findings when developing a cashless society and financial inclusion Alshurideh, et al (2021) tried to determine whetherperceived privacy, security, and trust impact reported utility and perceived ease ofuse The study also investigates if perceived usefulness, perceived trustworthiness,and perceived simplicity of use affect customers’ intentions to utilize e-paymentsystems, which is backed by a test of the moderating impact of gender on such intentions in higher education institutions A total of 850 participants from

suggested constructs, and study hypotheses According to the study, perceivedprivacy, security, and trust all impact perceived utility and usability Additionally, the study discovered that the importance of consumers' desire to use an e-paymentsystem, which is also proven to be gender-moderated, has been anticipated by trust,perceived utility, and perceived simplicity of use The findings of the researchsuggested a significant contribution to the common design of e-commerce systemsand the acceptability of e-payment systems Research findings have shown asignificant contribution to e-payment system acceptability and the standardization

of e-commerce system design Additionally, this study aided in deepening thereader's comprehension of a variety of e-commerce-related topics, particularlyconsumer privacy and trust, which in turn enables online merchants to develop thenecessary plans of action and strategies to cater to online buyers and target internetusers In order to understand the elements influencing the Gen Z generation'sdecision to use online payment services on an e-commerce platform in Hanoi, thestudy of Pham Thi Ngoc Anh, et al (2023) was carried out The surveyed data from

315 Gen Z students and residents was collected between January and February

2023, using linear regression used to examine the causes The findings demonstratethat while the anticipated effects, social influence, trust in shops, and add-onadvantages have a good impact on the Gen Z generation's decision to utilize onlinepayment on the e-commerce platform in Hanoi city, cash habits have the oppositeeffect The research has some limitations because it has not considered howdifferences between demographic characteristics such as gender, income,qualifications, and occupation affect the intention to choose online paymentmethods Besides, the research has not analyzed the difference in intention to useonline payment according to each individual commercial platform In this study, the sample was collected from users who have made online payments on different e-

commerce platforms so that the research topic has the most comprehensive results.Tran Thi Khanh Tram (2022) focuses on the variables that influence people'sintentions to use non-cash payments in areas in the province of Thua Thien Hue,where adoption of non-cash payments is relatively low By using a convenientsample technique, the data were gathered from 276 individuals The elements influencing people's intentions to utilize non-cash payment were identified using themethodologies used by KMO and Barlett, Exploratory Factor Analysis (EFA),Cronbach Alpha testing, ANOVA, correlation, and regression analysis The findingsshow that Facilitating Conditions, Social Influence, Effort Expectancy, andPerformance Expectancy all had a favorable impact on the intention to utilize non-cash payments; however, a negative link was discovered between the desire to usenon-cash payments and Perceived Risk This study will be an important referencesource for organizations providing non-cash payment services when wanting todevelop non-cash payment services to suburban areas However, the study is stilllimited in sample selection and research scope This study uses a conveniencesampling method, so the collected data may not be highly reliable In addition, it isnecessary to learn more about new factors that affect the intention to use non-commercial payment methods, the deciding factor from intention to usage behavior.Therefore, this can be considered an orientation for more in-depth research in thefuture Dang Thi Minh Nguyet, et al (2021) looked for factors affecting the behavior

of using e-wallets of students majoring in Economics at universities in Hanoi with adata set of 575 survey results The study uses the method of analyzing the reliability

of the scale using Cronbach's Alpha coefficient, analyzing exploratory factors EFA(Exploratory Factor Analysis) and extracting variables for multivariate regressionanalysis Research results have shown that Ease of Use, Perceived Usefulness, Attitude towards e-wallets and Social Influence have a positive impact on e-wallet

usage behavior of students majoring in Economics at Universities in Hanoi At thesame time, the authors propose a number of solutions for businesses and relatedparties, helping payment via e-wallets to become increasingly developed, safe,convenient and effective in the economy in general and in daily life in particular.The authors propose that to sustainably develop electronic payment, the Government needs specific measures that are implemented synchronously andeffectively by relevant parties Nguyen Thi Nhu Quynh (2021) investigated thevariables influencing the utilization of mobile payment services In July 2021, 201 students from The Banking University Ho Chi Minh City (BUH) participated in thesurvey by responding to questionnaires with a 5-level Likert scale The unified

theory of acceptance and use of technology (UTAUT) and Nguyén Thi Nhu Quynh

(2021) the theory of perceived risk (TPR), along with past research, serve as thetheoretical framework for the research model that is being suggested The findingsindicate that six factors—promotions, perceived ease of use, perceived utility,perceived security, perceived danger, and lastly social influence—are influencingpeople's decisions to utilize mobile payment services, and they are listed indecreasing order of effect degree The article makes several suggestions based onthe study's findings to raise consumer awareness of mobile payments and spur moreuse of payment services

1.1.3 Research Gap

One conspicuous research gap concerns the nuanced interplay betweencultural factors and electronic payment preferences in Hanoi's e-commercelandscape While previous research has acknowledged the role of culturaldimensions in shaping consumer behavior, there is a dearth of comprehensivestudies that delve into the specific cultural elements unique to Hanoi and how theyinfluence electronic payment choices Given that Hanoi boasts a rich culturalheritage and distinctive socio-economic characteristics, it is imperative to discernhow these local cultural attributes impact the trust, security, and adoption ofelectronic payment methods among Hanoi's online shoppers.

Another noteworthy research gap pertains to the role of government policiesand regulations in shaping the electronic payment ecosystem in Hanoi Theregulatory environment, including taxation policies, consumer protection laws, and financial regulations, can significantly impact the electronic payment landscape However, there is limited scholarly attention directed towards understanding how these policies and regulations, both existing and potential, influence the choicesmade by consumers when engaging in electronic payments for online purchases inHanoi Investigating the regulatory framework and its implications on consumer behavior can provide valuable insights into enhancing the efficiency and security ofelectronic payment systems in the region.

Furthermore, a research gap exists concerning the evolving technologicallandscape in Hanoi and its implications for electronic payment adoption With rapid advancements in technology, including the proliferation of smartphones and theinternet, it is crucial to investigate how these technological changes have reshapedthe electronic payment landscape In particular, exploring the impact of mobilepayment solutions, digital wallets, and the integration of cutting-edge technologieslike blockchain on consumer preferences and behaviors can offer valuable insightsinto the future trajectory of electronic payments in Hanoi

1.2 Theoretical basis

1.2.1 Electronic payment

Kabir, et al (2008) defined electronic payment as the “monetary valueexchanged electronically, primarily over computer networks, to execute transactionsfor goods and services” Fatonah, et al (2010) regarded electronic payment as thetransfer of money, initiated through computer-based systems and networks, to settletransactions, typically in the context of commercial activities Ali, et al’s (2019)perspective, as conveyed in their work, characterizes electronic payment as the use

of digital technology, such as credit cards, online banking, and mobile applications,

to facilitate monetary transactions for purchases, bill payments, and fund transfers.

In the same vein, Hartmann [31] describe electronic payment as a method ofexchanging funds electronically, leveraging various technologies, including point-of-sale terminals, internet interfaces, and mobile devices, to enable seamless financial transactions Adegbie & Akinyemi [2] elucidate electronic payment as theelectronic transfer of monetary value, encompassing a spectrum of instruments such

as credit cards, digital wallets, and electronic funds transfers, facilitatingcommercial transactions in the digital domain

Generally, electronic payment, often referred to as e-payment, is a monetarytransaction method conducted through digital means, leveraging computer networksand electronic devices It entails the transfer of funds or the authorization ofmonetary exchanges electronically, facilitating the acquisition of goods, services, orthe settlement of financial obligations [28] This mode of payment encompasses a diverse range of technologies and channels, including credit cards, debit cards,mobile wallets, online banking, electronic funds transfers, and various emergingdigital payment platforms (Lin & Nguyen, 2011) Electronic payment systemsenable individuals, businesses, and organizations to conduct secure, efficient, andconvenient financial transactions without the necessity for physical cash

1.2.2 Ecommerce Platform

According to Putri, et al [54], an e-commerce platform is an integrated set ofcomponents and processes that enable the online execution of business functions,encompassing online storefronts, inventory management, payment systems, and customer relationship management Hong & Zhu [35] stated that an e-commerceplatform is an digital framework that facilitates the conduct of online transactionsand interactions between businesses, consumers, and other stakeholders, offering arange of services such as online product catalogs, shopping carts, and securepayment gateways According to Haryanti & Subriadi [32], an e-commerceplatform is a software-based solution that enables businesses to present theirproducts or services online, manage transactions, and provide an interactive and

secure environment for customers to shop and engage in various online activities.Awiagah, et al (2016) defined an e-commerce platform as an integrated digitalinfrastructure that allows organizations to conduct commercial activities,encompassing online sales, marketing, customer service, and data analytics,leveraging the internet and related technologies Similarly, Hwang [36] describe an e-commerce platform as a comprehensive digital system that facilitates onlinecommerce, integrating technological, organizational, and experiential elements,providing a seamless and interactive environment for buyers and sellers to transactand collaborate.

Based on the mentioned concepts about ecommerce platform, it can beunderstood that e-commerce platform is a digital framework or software-basedsolution that serves as an integrated environment enabling businesses andindividuals to conduct online commercial activities The platform facilitates thepresentation of products or services, transaction processing, and interactionsbetween businesses and consumers, providing a secure, interactive, and user-

s [59] An friendly space for online shopping, marketing, and other related activi

e-commerce platform acts as a virtual marketplace, fostering commercialtransactions, enhancing customer experiences, and supporting the growth of digitalcommerce [14] When shopping on e-commerce sites, customers can choose to pay

in cash or electronically

1.2.3 Online Shopping

Online shopping is often referred to as a process rather than just a singleaction Rose & Dhandayudham (2014) defined online shopping as “the processconsumers go through to purchase products or services over the internet, often involving information search, evaluation of alternatives, purchase, and post- purchase evaluation” Demangeot & Broderick (2007) suppose online shopping is a form of electronic commerce, enabling consumers to directly purchase products orservices from a seller in real-time, over the internet, using a web browser As perTsao & Tseng (2011), online shopping can be seen as the act of visiting a website or

a mobile application, selecting products or services, adding them to a virtual cart,and completing the purchase using secure online payment methods It is a mode ofshopping characterized by consumers accessing and searching for product information, evaluating options, and purchasing products or services via the internet (Thakur & Srivastava, 2015).

All in all, online shopping, also known as e-commerce or internet shopping,refers to the act of purchasing products or services over the internet through digitalplatforms such as websites or mobile applications The process typically includesproduct research, comparison of options, selection, and payment, all conductedwithin the digital realm Online shopping offers convenience, accessibility, and abroad range of choices to consumers, transforming traditional retail experiences into

a seamless and interactive digital transaction process.

The relationship among electronic payment, e-commerce platforms, and onlineshopping is symbiotic Electronic payment methods embedded within e-commerce platforms facilitate seamless and secure transactions during the online shoppingprocess E-commerce platforms provide the digital infrastructure and interface foronline shopping, integrating electronic payment gateways to ensure financialtransactions occur smoothly Online shopping, as an activity, relies on bothelectronic payment methods and the e-commerce platform to create a cohesive and efficient online retail experience for consumers.

1.3 Theoretical Model of consumer decision

1.3.1 Theory of Reasoned Action (TRA)

The Theory of Reasoned Action (TRA) is a psychosocial framework developed by Fishbein & Ajzen [5] This theory seeks to explain and predict human behavior, particularly in the context of social interactions and decision-making Itposits that an individual's intention to perform a specific behavior is a criticaldeterminant of whether they will actually engage in that behavior

At the core of the Theory of Reasoned Action are two primary components:attitudes and subjective norms (Fishbein & Ajzen, 1975) Attitudes represent anindividual's overall positive or negative evaluations of performing a particularbehavior Subjective norms, on the other hand, reflect the perceived social pressure

or influence from significant others to engage in the behavior in question [16]

Beliefs | Attitudes

>> Intention -——} Behavior

Normative Subjective

Beliefs [>] Norms

Figure 1.1: Theory of Reasoned Action model

Source: Fishbein & Ajzen [5]

Attitudes are shaped by an individual's beliefs about the outcomes orconsequences of a specific behavior and the overall evaluation of these outcomes[5] Positive attitudes towards a behavior increase the likelihood of intention toengage in that behavior, while negative attitudes decrease the likelihood For instance, if an individual believes that electronic payment (the behavior) leads toimproved convenience (the outcome), and save their time and effort (theevaluation), their attitude towards electronic payment will be positive.

Subjective norms are influenced by an individual's perception of the socialpressure or expectations from significant others regarding the behavior in question[26] These significant others may include family, friends, colleagues, or society atlarge If an individual perceives that important people in their life expect them toengage in a particular behavior, and they value these people's opinions, theirsubjective norm will be strong, thereby influencing their intention to perform thebehavior.

The intention to perform a behavior is a crucial intermediate variable in theTheory of Reasoned Action It is influenced by both attitudes and subjective norms.The stronger an individual's intention to engage in a behavior, the more likely theyare to actually perform that behavior [20] This theory is widely applied in research

on online shopping [9,46], electronic payment [53,77] or on the adoption of commerce platforms [11].

e-1.3.2 Theory of Planned Behavior (TPB)

The Theory of Planned Behavior (TPB) is another widely recognized andextensively used psychological theory in the realm of behavioral sciences Proposed

by Ajzen (From Intentions to Actions: A Theory of Planned Behavior, 1985), itextends the Theory of Reasoned Action by incorporating an additional component,perceived behavioral control TPB provides a comprehensive framework tounderstand and predict human behavior, emphasizing the role of individual beliefs,attitudes, social norms, and control in shaping behavioral intentions.

Similar to TRA, TPB begins with attitudes, representing an individual'soverall evaluation of a specific behavior Attitudes in TPB are shaped by beliefsabout the consequences of the behavior and the individual's overall assessment ofthese outcomes Positive attitudes arise when the individual perceives the behavior

as beneficial, while negative attitudes stem from perceiving it as unfavorable

Subjective norms in TPB are akin to those in TRA and depict the perceivedsocial pressure or influence from significant others regarding the behavior Theindividual's perception of whether important individuals approve or disapprove ofthe behavior significantly influences their intention to perform it.

Figure 1.2: Theory of Planned Behavior model

Source: Ajzen (1985)[4]

Perceived behavioral control is a distinctive element of TPB, representing theindividual's perception of the ease or difficulty in performing the behavior Ajzen[4] It is influenced by factors such as self-efficacy, resources, skills, and constraints[29] Higher perceived behavioral control suggests that the individual believes theyhave the necessary resources and capacity to engage in the behavior, enhancing the likelihood of intention and subsequent action.

TPB is a powerful tool for understanding and predicting a wide array ofbehaviors, including those in the domain of electronic payment [13] In the context

of electronic payment research, TPB can help identify the factors influencingindividuals’ intentions and actual usage of electronic payment methods [66] Theaddition of the factor of cognitive behavioral control is said to significantly increasethe explanatory power of the models and is widely applied, along with other factors,

in empirical studies [3]

1.3.3 Technology Acceptance model (TAM)

The Technology Acceptance Model (TAM) is a framework that seeks toexplain and predict how individuals perceive and accept new information

technologies (Davis, 1989) The model is user-centric, focusing on individualbeliefs, attitudes, and perceptions that influence their acceptance of technology(McCloskey, 2004) TAM consists of two main constructs: Perceived Usefulness and Perceived Ease of Use.

Perceived Usefulness refers to the extent to which an individual believes thatutilizing a particular technology would enhance their job performance or make theirtasks easier and more efficient (Davis, 1989) It is deeply rooted in the individual'sassessment of the technology's ability to improve their productivity andeffectiveness in achieving their goals (Rigopoulos & Askounis, 2007) If a personperceives that using a technology will positively impact their performance, they aremore likely to accept and use it

Perceived Ease of Use relates to the extent to which a person believes thatusing a specific technology would be free of effort (Davis, 1989) It's aboutassessing the simplicity and user-friendliness of the technology (Kesharwani &Bisht, 2012) If a technology is perceived to be easy to use without requiring mucheffort, individuals are more inclined to embrace and adopt it

Perceived Usefulness

External Attitude Behavioral

Variables Toward Using >) Intention to >)

Use

Perceived Ease of Use

Figure 1.3: Technology Acceptance Model

Source: Davis [22]

The acceptance and usage of technology are influenced by these two primaryconstructs Users weigh the perceived usefulness and ease of use to form their

attitudes and behavioral intentions towards the technology, which in turn influencestheir actual usage TAM offers several key insights into user behavior andtechnology adoption (Schepers & Wetzels, 2007):

External Variables:

TAM acknowledges that external variables, such as demographics, experience,and voluntariness of use, can influence perceived ease of use, perceived usefulness,attitudes, and behavioral intentions For instance, prior experience with similartechnologies can affect perceived ease of use and, subsequently, the acceptance ofthe new technology.

Social Influence:

While TAM primarily focuses on individual perceptions, it recognizes thatsocial influence (subjective norm) and external factors can impact these perceptions[49,21] Social norms, opinions of peers, and organizational culture may influence

an individual's perception of a technology's usefulness and ease of use

TAM has had a significant impact on technology research and development,providing a theoretical basis for understanding users' acceptance behaviors In thecontext of electronic payment systems and their adoption, the TechnologyAcceptance Model proves highly relevant Perceived Usefulness becomes crucial,reflecting users’ beliefs about how using a specific electronic payment systemwould enhance their transactional efficiency and financial management If usersperceive that the electronic payment system simplifies their financial transactions,tracks their expenses, or offers added security, they are more likely to adopt it.Perceived Ease of Use is equally vital, encompassing users' perceptions of how easyand convenient the system is to operate An intuitive and user-friendly interface thatrequires minimal effort significantly influences users to adopt the electronic

payment system.

1.2.4 Unified Theory of Acceptance and Use of Technology (UTAUT)

The Unified Theory of Acceptance and Use of Technology (UTAUT) is acomprehensive theoretical framework that consolidates and extends severalprominent models of technology acceptance [74] Similar to TAM, UTAUT seeks

to provide a unified understanding of the key determinants influencing individuals’behavioral intentions to use technology in various contexts UTAUT incorporatesfour core constructs: Performance Expectancy, Effort Expectancy, Social Influence,Facilitating Conditions and several moderators to explain and predict useracceptance of technology:

Performance Expectancy refers to the degree to which an individual believesthat using a specific technology will enhance their job performance or make taskseasier [76] It aligns closely with Perceived Usefulness in the TechnologyAcceptance Model (TAM) If a person perceives that using a technology will lead toimproved outcomes or efficiencies, they are more likely to accept and use it

Effort Expectancy is akin to Perceived Ease of Use in TAM It represents thedegree of ease associated with using the technology [76] If individuals believe thatthe technology is easy to use and requires minimal effort, their intention to use it islikely to increase

Facilitating

Conditions

Voluntariness|

Gender Age Experience ols

Figure 1.4: UTAUT model

Source: Venkatesh, et al (2012)

Social Influence mirrors the influence of subjective norms in TRA, TPB andTAM It refers to the extent to which an individual perceives that significant others(like peers, supervisors, or colleagues) think they should use the technology [76].Social influence plays a vital role in shaping an individual's intention to usetechnology.

Facilitating Conditions encompass the support and infrastructure available toassist the use of technology [76] It reflects the extent to which individuals believethat the organizational and technical infrastructure supports the use of thetechnology [73].

Additionally, UTAUT integrates some key moderators that influence how thecore constructs affect behavioral intention and technology use: Gender recognizesthat gender may influence technology adoption differently, acknowledging varyingsocial and cultural norms; Age acknowledges that different age groups may have

distinct perceptions and comfort levels with technology; Experience accounts for anindividual's level of experience with technology, acknowledging that priorexperience impacts technology acceptance [73,75].

UTAUT proposes that these constructs and moderators collectively influence

an individual's intention to use technology and, consequently, their actual usagebehavior It has been applied in various contexts, including e-commerce [24,72],electronic payment [1,6], and more

In e-commerce, for instance, understanding users' perceptions of theusefulness and ease of use of a new online payment system (PerformanceExpectancy and Effort Expectancy) and considering the influence of social factors(Social Influence) can significantly impact the design, adoption, and success of theonline payment platform.

CHAPTER 2: RESEARCH DESIGN

2.1 Research hypotheses and model

2.1.1 Hypotheses

2.1.1.1 Performance Expectancy

Performance Expectancy suggests that individuals perceive a technology asbeneficial if they believe it enhances their performance or simplifies tasks [74] Inthe context of electronic payment for online shopping, the convenience andefficiency offered by electronic payment methods are evident Using electronicpayment eliminates the need for physical cash transactions or other time-consumingpayment methods (Rahadi, et al., 2022) It allows for swift, secure, and seamlesstransactions, enhancing the overall shopping experience (Sair & Danish, 2018) InHanoi, a bustling urban center with a vibrant e-commerce landscape, people arelikely to value efficient transactions, making them more inclined to adopt electronic payment methods that align with their expectations of enhanced performance intheir shopping endeavors Electronic payment methods often come with variousfeatures such as transaction tracking, digital receipts, integration with budgetingapps, and loyalty programs [30] Individuals seek technological solutions thatprovide them with additional services and benefits (Celik, 2016) PerformanceExpectancy encapsulates the perception that using a technology will bring aboutpositive outcomes (Celik, 2016) In the case of electronic payment, users foreseeaccessing a range of advanced features that facilitate better financial managementand an organized approach to online shopping [68] This perception motivates them

to embrace electronic payment methods, anticipating that these features will enrichtheir shopping experiences in the e-commerce platform Roy & Sinha (2014),Liébana-Cabanillas, et al (2018), Nguyen Hong Quan (2021), Tran Thi Khanh Tram(2022) have also shown the positive impact of Performance Expectancy oncustomer electronic payments

HI: Performance Expectancy has a positive impact on electronic paymentwhen shopping online on e-commerce platform of Hanoi people

2.1.1.2 Effort Expectancy

Effort Expectancy revolves around the ease and simplicity of using atechnology (Davis, 1989) It is said that an intuitive and user-friendly interface of anelectronic payment apps can significantly reduce the perceived effort required tocomplete a transaction (Rahadi, et al., 2022) Online payment platforms thatprioritize simplicity and ease of use by employing clear instructions, streamlinedprocesses, and straightforward navigation are more likely to be embraced byindividuals [19] Given the busy lifestyles and varied technological familiarity ofthe populace, an uncomplicated interface aligns with their preference for hassle-freetransactions [30] The perception that using electronic payment is easy encouragesits adoption, as it aligns with their expectations of a straightforward and efficientpayment experience while shopping online [69] Effort Expectancy alsoencompasses the perceived amount of effort in terms of time and resources required

to use a technology (Tandon, 2021) When it comes to electronic payment for onlineshopping, users are likely to appreciate methods that save time and effort.Transactions through electronic payment methods are typically swift, and theautomation of payment processes translates to reduced effort compared to traditional payment methods (Sair & Danish, 2018) This efficiency is especiallyappealing in the context of the bustling e-commerce platform, where individualsseek time-saving solutions (Lian & Yen, 2014) Hence, the perception thatelectronic payment methods are efficient and do not demand excessive time orresources strengthens their positive impact on adoption The study of Roy & Sinha(2014); Liébana-Cabanillas, et al (2018); Nguyen Hong Quan (2021); Tran ThiKhanh Tram (2022) also confirmed this relationship

H2: Effort Expectancy has a positive impact on electronic payment whenshopping online on e-commerce platform of Hanoi people

2.1.1.3 Social Influence

Social influence and cultural norms play a significant role in shapingindividual behavior and decisions [4,5] Electronic payment adoption often alignswith societal trends and norms [42] If individuals perceive that a significant portion

of their social circle, be it friends, family, or colleagues, is using electronic paymentmethods for online shopping, they are more likely to follow suit [42].Recommendations and positive experiences shared by those within their socialnetwork influence their perception of electronic payment as a credible and acceptedmode of online transaction [64] This collective endorsement fosters a positiveattitude towards electronic payment, driving its adoption within community Socialinfluence contributes to building trust and confidence in using electronic paymentmethods (Jeon & Ha, 2010) When individuals observe that people they trust and respect have had successful and secure transactions using electronic payment, itinstills confidence in the system Positive feedback and testimonials fromacquaintances or influencers in their social circle can significantly influence theirperception of the safety, reliability, and overall trustworthiness of electronicpayment systems [34] This sense of security and trust motivates individuals to adopt electronic payment for their online shopping activities, aligning with thepositive social influence they have experienced Liébana-Cabanillas, et al (2018);Tran Thi Khanh Tram (2022); Dang Thi Minh Nguyet, et al (2021) also corroboratethat social influence has a significant impact on electronic payment adoption

H3: Social Influence has a positive impact on electronic payment whenshopping online on e-commerce platform of Hanoi people

2.1.1.4 Facilitating Conditions

Facilitating Conditions encompass the technical and organizational support that simplifies the usage of a technology (Davis, 1989) In the context of electronicpayment, the presence of a well-developed technological infrastructure is crucial.When individuals perceive that the necessary technological support, such as reliable

internet connectivity and compatible devices, is readily available and accessible, itinstills confidence in using electronic payment methods (Khalil & Nasrallah, 2014).This perception of accessibility and the supporting technological ecosystem fosters

a positive attitude toward adopting electronic payment for online shopping.Facilitating Conditions also encompass educational efforts and user assistance thatguide individuals in effectively using a technology (Junadi, 2015) Ecommerceplatform aimed at educating the populace about the benefits and ease of usingelectronic payment for online transactions are prevalent Workshops, tutorials, and informational campaigns create awareness and impart knowledge about electronicpayment systems Additionally, the provision of user assistance, whether throughhelplines or customer support services, assures individuals that help is availablewhenever needed This educational and assistance-oriented approach eliminatesbarriers, making electronic payment adoption smoother and more appealing foronline shopping, in turn positively influencing its adoption (Putri D A., 2018).

H4: Facilitating Conditions has a positive impact on electronic payment whenshopping online on e-commerce platform of Hanoi people

to their willingness to adopt electronic payment methods Trust in electronicpayment systems is often influenced by the positive experiences and reviews shared

by other users Consumers shop online and make use of electronic paymentmethods, their positive encounters, successful transactions, and favorable feedback

create a positive perception of these systems [43] Word-of-mouthrecommendations from peers or online reviews highlighting seamless transactionsand secure payments build trust As more individuals share their positiveexperiences, it contributes to a collective perception of reliability, encouragingothers to trust and adopt electronic payment methods for their online shoppingendeavors [43] The more consumers trust in electronic payment method, the moreoften they engage in the payment.

HS: Trust has a positive impact on electronic payment when shopping online

on e-commerce platform of Hanoi people

2.1.1.6 Cash Habit

Habitual behavior is deeply ingrained, and using cash is a deeply rooted habitfor many individuals Over time, individuals develop a sense of familiarity andcomfort with cash transactions due to its physical tangibility and long-standing use

in traditional commerce (Oorni, 2007) The habitual use of cash creates a level ofinertia towards adopting newer methods like electronic payments People tend tostick to what they know and are comfortable with, which, in this case, is using cash Breaking this habit and transitioning to electronic payment methods may requireconscious effort and motivation, making it less likely for individuals with a strongcash habit to readily adopt digital alternatives [83] Habitual cash users mayperceive electronic payment methods as riskier due to concerns regarding security,privacy, and potential unauthorized access to their financial information [81] The fear of cyber fraud or identity theft is prevalent among individuals accustomed tocash transactions, as they may view electronic payment systems as vulnerable toonline threats This perception of risk can deter them from embracing electronicpayment methods, even when shopping online (an der Cruijsen & Horst, 2019).Their cash habit acts as a barrier, as they may opt for what they perceive to be the safer and more familiar option, which is physical cash Pham Thi Ngoc Anh , et al

(2023); Tran Thi Khanh Tram (2022) have proved that cash habit causes a negativeeffect on electronic payment of customers.

H6: Cash Habit has a negative impact on electronic payment when shoppingonline on e-commerce platform of Hanoi people

2.1.2 Proposed research model

To test the hypotheses mentioned above, the author proposes the following research model following the empirical model of Roy & Sinha (2014), Liébana- Cabanillas, et al (2018), Nguyen Hong Quan (2021), Dang Thi Minh Nguyet, et al (2021):

PerformanceExpectancy

Effort Expectancy ~~ H1 (+)

\

H2 oN Ma Social Influence H3 o> Adoption of electronic

Cash Habit /

Figure 2.1: Proposed research model

Source: Author

HI: Performance Expectancy has a positive impact on the adoption of electronic payment methods by Hanoi residents.

H2: Effort Expectancy has a positive impact on the adoption of electronicpayment methods by Hanoi residents

H3: Social Influence has a positive impact on the adoption of electronicpayment methods by Hanoi residents

HẠ: Facilitating Conditions has a positive impact on the adoption ofelectronic payment methods by Hanoi residents

HS: Trust has a positive impact on the adoption of electronic paymentmethods by Hanoi residents

Hồ: Cash Habit has a negative impact on the adoption of electronic paymentmethods by Hanoi residents

The set of research hypotheses formulated offers a comprehensive frameworkfor investigating the factors influencing the adoption of electronic payment methods

by Hanoi residents in the context of e-commerce These hypotheses are well-suited

to address the multifaceted nature of technology adoption They encompass crucialdimensions such as performance expectancy, effort expectancy, social influence,facilitating conditions, trust, and the impact of cash habits Each hypothesis delvesinto a distinct aspect of consumer behavior and technology adoption, aligning withestablished theoretical models in the field By considering these factors, this studyaims to provide a holistic understanding of the dynamics shaping electronicpayment adoption in Hanoi However, it's essential to recognize that thesehypotheses do not exist in isolation, and the interplay among these factors iscomplex Therefore, empirical research should explore how these elements interactand influence adoption decisions in the specific cultural and economic context of Hanoi.

Nonetheless, while these hypotheses provide a strong foundation, it's crucial toacknowledge potential limitations One limitation is that these hypotheses focusprimarily on individual-level factors and may not capture the broader socio-economic or regulatory influences that can impact adoption Additionally, thecomplexity of trust, social influence, and cash habits warrants carefuloperationalization and measurement to ensure a robust analysis Moreover, theunique cultural nuances of Hanoi may introduce variables not accounted for in thesehypotheses Therefore, it is imperative to conduct thorough empirical research totest and refine these hypotheses in the specific context of Hanoi, allowing for anuanced and contextually informed understanding of electronic payment adoption inthe region.

2.2 Measurement scales

Based on a review of previous studies, the auta2.4 hor consulted and adjustedthe measurement scales The content of the research scale is shown in the tablebelow

Table 2.1: Measurement scales

Symbol Item References

Online payment service allows me to completePE2 | online transactions on e-commerce platforms

faster than traditional transactions

PE3 Using online payment services helps reduce my

payment time in online transactions on commerce platforms.

e-Effort Expectancy

FEI The payment interface of e-commerce platform | Roy & Sinha (2014);

applications is clear and easy to understand Liébana-Cabanillas,

et al (2018); Nguyen

I can fluently operate payments via e-commerce

EE2 Hong Quan(2021);

platform applications

Tran Thi Khanh

EE3 I can fluently operate payments via e-commerce | Tram (2022)

platform applications in a short time

EFA I can fluently operate payments via e-commerce

platform applications without instructions

Social Influence

People important to me think I should use online | Liébana-Cabanillas,

SH payment services to pay on e-commerce | et al (2018); Tran Thi

platforms Khanh Tram (2022);

Dang Thi MinhS2 People who influence my life believe that I must

Nguyet, et al (2021)use online payment services to pay on e-