Factors affecting consumers use of bank card payment at POS terminal A study of technology acceptance model

In 2011 Annual Report of Vietnam Bank Card Association, Vietnam has got a significant change in all fields of financial card, such as card issue, payment, diversity and network developme

PHAN VU AN

ACKNOWLEDGMENTS

“Stay hungry, stay foolish” – Steve Jobs

I don’t know much about Steve Jobs but I am inspired by his philosophy to build up Apple and stories about him which become a legend To start and complete a mission, it is

necessary to be hungry and foolish from the first second That has been my motto since I

started this final project

I owe a debt of gratitude to many people who helped me complete this thesis I would like

to acknowledge the help of all First and foremost, I would like to thank my family who give

me a great encouragement and support to complete not only 2-year journey of this MBA program but also all struggles I have met in study as well as work

I would like to express my warmest thanks to my supervisor, Dr Le Thai Thuong Quan, for all challenges, enthusiastic encouragement and precious comments Although I am the only author reported on the cover of this thesis, and I take full responsibility for the views expressed here or any remaining errors, I would like to highlight that the fingerprint of Dr Le Thai Thuong Quan is well anchored in the following pages His striving for clearness of exposition and challenges improved my work considerably

I would like to express my thanks for my sponsors, Mr Le Tri Thong and Mr Tran Duy Khiem at Dong A Bank, for your great sponsorships from the beginning to the end Banking and financial card are quite new and challenge for technical guys At the first steps to find out project’s idea, your supports helped me to understand from first cut to deep dive in specific problems I would believe this report is worthy of your great supports

I would like to express my thanks for my friends, especially Ms Nguyen Thi Kim Thoa and Ms Vu Phuong Nghi, who helped me to review this report many times, corrected my English and gave valuable comments Every time I talk with you, I always explored something new which helped me to improve towards betterment To other friends who gave me a hand in data collection as well as discussion and opinions, please know that your comments are of great value to the completion of my project

Last but not least, I would like to express my thanks to Solvay program, all professors, all coordinators and all friends at MBAVB4 who have accompanied me in this journey I would take this chance to wish you all the best in your future endeavors

HCMC, January 26th, 2012

Phan Vu An

SUPERVISOR’S COMMENTS

The topic is practical and the thesis has been done carefully and thoroughly The choice of TAM model for this problem is suitable In addition, the author has fulfilled an extensive literature review to propose a framework for analysis The sample size of the survey is acceptable and the data analysis has been done appropriately to give meaningful results This thesis is ready for public defense

Dr Le Thai Thuong Quan

January 30th, 2012

ABSTRACT

Purpose – This study addresses factors that affect consumer’s use of card payment at

POS terminal In Vietnam, the growth of cards and POS terminal are impressive in recent years It has been recorded that there were over 32 million of card and 54,000 POS terminals

in Vietnam at the end of year 2010 However, consumers are still not so familiar with card payment at POS terminal This study aims to choose an appropriate model to evaluate consumer decision in card payment, evaluate factors affected to consumer intention to use POS for payments, and from there, contribute to the understanding on consumer and merchant for business strategy development of bank by quantitative approach

Design/Methodology/Approach – The study is constructed base on Technology

Acceptance Model (TAM) with additional factor which are Perceived Usefulness, Perceived Ease-of-Use and Perceived Creditability Electronic questionnaire was distributed via email to consumers The selected respondents are categorized into 2 groups, non-credit and credit consumer After reliability tests, in-depth analysis is conducted to understand factors affecting consumer’s use and independent sample t-tests/ANOVA are used to examine difference of demographic dimensions

Key Findings – Toward consumers who have used card payment in POS terminal,

demographic dimensions are not the keys drive usage behavior Consumers recognize Perceived Usefulness, Perceived Ease-of-Use and Perceived Creditability affecting to their use significantly Top 3 recommendations are (1) banks need better care for debit card users by product/service diversification, (2) the target consumer group are recommended, and (3) personal finance education

Originality/Value – Study helps to conceptualize factors affecting to consumer’s use of

card payment at POS terminal in Vietnam context However, the respondents received questionnaire via email 80% of our survey population merely consisted of white collar officers mostly in Hanoi and Ho Chi Minh City, two major cities in Vietnam There are other potential groups left open, such as housewife/househusband, students These are opportunities for further studies to explore potential loyal consumers

Key words – Card payment, POS terminal, debit card, credit card, ATM card,

Technology Acceptant Model (TAM), Vietnam

TABLE OF CONTENTS

STATEMENT OF ORIGINAL AUTHORSHIP i

ACKNOWLEDGMENTS ii

SUPERVISOR’S COMMENTS iii

ABSTRACT iv

TABLE OF CONTENTS v

LIST OF FIGURES viii

LIST OF TABLES ix

LIST OF ABBREVIATIONS x

CHAPTER 1: INTRODUCTION AND RESEARCH PROBLEM 1

1 Introduction 1

1.1 Bank Card Overview 1

1.2 Development of ATM and POS terminal 2

1.2.1 ATM 2

1.2.2 POS terminal 3

1.3 Prominence of cash payment 4

2 Research Problem, Question, Objectives and Scope 5

2.1 Research Problem 5

2.2 Research Question 6

2.3 Research Objectives 7

2.4 Research Scope 7

3 Thesis Structure 8

CHAPTER 2: LITERATURE REVIEW & RESEARCH FRAMEWORK 9

1 Card Payment at POS terminal 9

2 Technology Acceptance Model (TAM) 11

3 Framework for consumer’s use of card payment at POS terminal 15

3.1 Categorization of Respondent 16

3.2 Perceived Usefulness 16

3.3 Perceived Ease-of-Use 19

3.4 Perceived Creditability 20

3.5 Personal characteristics of consumers 21

3.6 Research Framework 22

CHAPTER 3: RESEARCH METHODOLOGY & DESIGN 24

1 Methodology 24

1.1 Research Design 24

1.2 Research Approach 24

1.2.1 Secondary research 25

1.2.2 Primary research 26

1.3 Research Strategies 26

2 Questionnaire and Sampling 27

3 Data Analysis Procedures 30

3.1 Descriptive statistics analysis 30

3.2 Data Examining and Reliability Test of the Measurement Variables 30

3.3 Compare Means: Independent Sample T-test & One Way Analysis of Variance (ANOVA) 31

CHAPTER 4: ANALYSIS & DISCUSSION 32

1 Descriptive Analysis 32

1.1 Demographic Characteristics of Respondents 32

1.2 Behavioral Characteristics of Respondents on Bank Card Use 36

2 Reliability Test 40

2.1 Non-Credit Respondent 41

2.1.1 Perceived Usefulness 41

2.1.2 Perceived Ease-of-Use 42

2.1.3 Perceived Creditability 43

2.2 Credit Respondent 44

2.2.1 Perceived Usefulness 44

2.2.2 Perceived Ease-of-Use 45

2.2.3 Perceived Creditability 46

3 Factors affecting Actual Use 49

3.1 Perceived Usefulness 49

3.2 Perceived Ease-of-Use 52

3.3 Perceived Creditability 54

4 Differences on Demographic Dimensions 55

4.1 Gender of Respondents 55

4.2 Age-Group of Respondents 56

4.3 Education Level of Respondents 57

4.4 Income of Respondents 59

5 Barriers of Card Payment at POS terminal 61

5.1 Fee charged at merchant – Perceived Cost of Consumers 61

5.2 Reason to say NO use 63

CHAPTER 5: CONCLUSION 65

1 Conclusion 65

2 Contributions and Managerial Implications 67

3 Study limitation and Recommendation for Further Study 73

REFERENCES 75

APPENDIX 1: QUESTIONNAIRE 78

APPENDIX 2: Types of Bank Card’s Function in Vietnam 85

APPENDIX 3: History and Development of POS terminal 93

LIST OF FIGURES

Figure 1 - Number of ATMs and POS terminals, 2005-2010 3

Figure 2 - Market Share of ATM machines and POS Terminals in Vietnam in 2010 6

Figure 3 - Thesis Structure 8

Figure 4 - The Original TAM 12

Figure 5 - First modified version of TAM 13

Figure 6 - Final version of TAM 14

Figure 7 - Research Framework 23

Figure 8 - Question Flowchart 28

Figure 9 - Data Analysis Procedures 30

Figure 10 - Gender & Age Group of Respondents 34

Figure 11 - Education Level of Respondents 35

Figure 12 - Bank & Card Used of Respondents 36

Figure 13 - Cross Tabulation of Income and Willing-to-Pay Amount 38

Figure 14 - Cross Tabulation of Income and Occupation 38

Figure 15 - Preferable Places to Use Card Payment 39

Figure 16 - Perceived Usefulness of Non-Credit Respondents 50

Figure 17 - Perceived Usefulness of Credit Respondents 51

Figure 18 - Perceived Ease-of-Use of Non-Credit and Credit Respondents 53

Figure 19 - Perceived Creditability of Non-Respondents and Credit Respondents 54

Figure 20 - Perceived Creditability by Income if Non-Credit Respondents 61

Figure 21 - Frequency Use of Card Payment at POS terminal 62

Figure 22 - Reason of NO use Card Payment at POS terminal 63

Figure 23 - Vietcombank promotes card payment at Big C supermarket 68

Figure 24 - 5-step model 71

Figure 25 - ATM Cards 85

Figure 26 - ATM Cards Category Performance (2005 - 2010) and Forecast (2010 - 2015) 86

Figure 27 - Debit Card 88

Figure 28 - Credit Card 89

Figure 29 - Prepaid Cards of Sacombank and Asia Commercial Bank 91

Figure 30 - Typical Configuration of POS terminal 93

LIST OF TABLES

Table 1- Financial Cards: Number of Cards in Circulation 2005-2010 2

Table 2 - Financial Cards and Payments in Vietnam in 2010 2

Table 3 - Applications, participants, country and setting used for applying TAM 15

Table 4 - Questionnaire for measuring factors 28

Table 5 - Cross Tabulation of EVER-USE-CARD-PAYMENT and INCOME 33

Table 6 - Cross Tabulation of Sector and Occupation 34

Table 7 - Reliability of Perceived Usefulness for Non-Credit Respondents 41

Table 8 - Reliability of Perceived Usefulness for Non-Credit Respondents after removal of PU2 and PU4 42

Table 9 - Reliability of Perceived Ease-Of-Use for Non-Credit Respondents 43

Table 10 - Reliability of Perceived Creditability for Non-Credit Respondents 43

Table 11 - Reliability of Perceived Usefulness for Non-Credit Respondents after removal of PU2 and PU4 44

Table 12 - Reliability of Perceived Ease-Of-Use for Non-Credit Respondents 45

Table 13 - Reliability of Perceived Ease-Of-Use for Non-Credit Respondents after removal of PEU4, PEU7 46

Table 14 - Reliability of Perceived Creditability for Credit Respondents 46

Table 15 - Summary of Reliability Analysis 47

Table 16 - Results for Relevant Research Variables 47

Table 17 - T-test result of Gender of Respondent 56

Table 18 - ANOVA result of Age of Respondents 57

Table 19 - T-test result of Education Level of Respondents 58

Table 20 - ANOVA result of Income of Respondents 60

LIST OF ABBREVIATIONS

Abbreviation Description

ATM Automated Teller Machine

POS Terminal Point-Of-Sale Terminal

TAM Technology Acceptance Model

There were 28.6 million ATM cards accumulated issued up to 2010 Let assume there are only 50% of consumers, which means 15 million consumers open bank account with the average monthly balance is 2 million VND per account (Nguy n Thu Hà, 2011); local payment activities contributed 30,000 billion VND for capital collection It is a remarkable number in current financial activities

Up to 2010, there were 49 banks that had issued financial card, among these 18 banks

issued international debit card (such as VISA Debit) and 17 banks issued international credit

card Nearly 50% of commercial banks in the market joined financial card market with over

200 card brands with many different features

Table 1- Financial Cards: Number of Cards in Circulation 2005-2010

ATM/Debit Function 920 5,808 8,665 14,950 21,300 28,648.5

Financial Cards in Circulation 1,250 6,200 9,100 15,500 22,000 29,480

Source, Euromonitor International, 2010

The year 2010 recorded a fast growth of financial card market in Vietnam In 2011

Annual Report of Vietnam Bank Card Association, Vietnam has got a significant change in all

fields of financial card, such as card issue, payment, diversity and network development

Table 2 - Financial Cards and Payments in Vietnam in 2010

Number of Financial Card in Total (accumulated) Million Card 32

Revenue of Payment via all types of Cards Million USD 29,111

Revenue of Cash Withdraw at ATM Million USD 21,474

Source, Vietnam Bank Card Association, 2011

1.2.1 ATM

Figure 1 shows a 6-time increase of number of ATM machines from 2005 to 2010; this is

huge effort of banks to build up the infrastructure Beside the basic features which are cash

withdraw, transfer, etc banks are proactive to provide other added features in ATM system,

such as paying for service invoice (electric, water, phone, insurance, etc.), that support to bring value to consumers, reduce the cash-payment

Figure 1 - Number of ATMs and POS terminals, 2005-2010

Source, Euromonitor International, 2010

1.2.2 POS terminal

Figure 1 shows a 4-time increase of number of POS terminal from 2005 to 2010, banks were proactive in broadening the businesses that accept payment through POS terminal, especially retail business, daily service supply, such as flight ticket, taxi, etc

With the strong development of payment system infrastructure, State Bank required about the connection of Switch Operators to synchronize the country acceptance network for financial card From 2008, banks in Vietnam and Switch Operators, such as Smartlink1, Banknet2 and VNBC3, have continued to widen their own system by connecting more banks to system Up to now, ATM system has nearly covered all market Consumers can make their transaction in ATM of other banks with a fee to Switching Operators Follow the success of ATM synchronization, POS has been connected in Hanoi in October 2010, Ho Chi Minh City

in December 2010, and Danang in March 2011 and deploying in over country now This is the

direction of State Bank to synchronize POS system like ATM These synchronizations have not only supported to consumer for convenient and flexible use, but also increased the effectiveness of bank activities and investment for system development Besides, government also supports for social in enabling cashless society, i.e decision to encourage enterprise pay salary for employees via bank accounts (Directive No 20/2007/CT-TTg of Prime Minister dated August 24, 2007; Directive No 05/2007/CT-NHNN of the State Bank of Vietnam Governor dated October 11, 2007 on salary payment via bank accounts to state budget beneficiaries in the first 6 months of 2010 in their locations)

In parallel with development of infrastructure, revenue of this section has gained continuously year on year Moreover, payment system in Vietnam has accepted the international card, such as Visa, MasterCard, American Express, JCB, Diners Club, CUP and Discovery Card which are the top brands and popular nowadays

Cash transactions registered retail value growth of 18% in 2010 as consumers continued

to use mainly cash to make purchases despite the increasing presence of POS terminals in many modern retail outlets The popularity of cash transactions also remained strong because some retailers charged an extra fee to consumers who paid by card, which thus deterred some consumers from engaging in card transactions In addition, staff members in many retail outlets were not properly trained in conducting card transactions As a result, many errors were made when performing card transactions, which resulted in annoyance among consumers Furthermore, lack of promotion by banks and retailers to raise consumer awareness of card transactions meant that consumer preference for cash remained strong

The strong custom of using cash to make purchases and lack of promotion of cards as a means of making purchases meant that cash was still very much the preference of Vietnamese consumers in 2010 Many consumers, although they were accustomed to using cards when they travelled overseas, returned to making cash payments when they were back in Vietnam

In addition, various consumers, in particular those who seldom travelled and those who had

little education on the use of cards, continued to use cash as they were unaccustomed to using cards and often unaware that cards could be used to make purchases

The popularity of using cash to make payments is expected to remain very strong in the short term, as many consumers are expected to continue to prefer using cash However, governmental initiatives to pay the salaries of employees in all state-owned companies through bank transfers are expected to force many consumers to open bank accounts, which will provide banks with a strong platform on which to promote card payments

Although the custom of using cash to make payments is expected to remain in Vietnam for quite some time, there is potential for financial cards and payments to grow over the forecast period The Vietnamese population includes many young consumers who are strongly affected by western culture and who adapt quickly to cultural changes They are expected to

be the target consumers when banks start to promote modern payment methods and to speed

up the transition from cash to cards Also, competition among retailers will lead to better training of staff and increased service, which is expected to make card transactions more convenient

In summary, the growth of new young/dynamic consumers and the diversity of products/services that banks imitating are expected eagerly to drive consumer behavior and promote card payment at POS terminal in modern society

The growth rate of number of ATM machine in 2010 is around 20% but it didn’t come from the big players of ATM market The main reason of low investment to develop ATM network is low profit, banks have to spend capital to invest but limit revenue, State Bank has not allowed collecting service fee for ON-US (card-holder of issuing-bank) Instead of investment to build more ATM machines, banks have targeted to increase the service quality,

features added, system re-structuring for security and assurance Besides, banks have started to invest to POS market

As seen in Figure 1, the growth of POS terminal is quite impressive and attractive for anyone who wants to join the POS market, the growth rate of 2010 was at almost 50% increase comparing to 2009 While ATM has not been the attractive, POS has become question-mark market In the severe competition, many banks, such as Vietinbank still gets 3 times increasing, Ocean bank gets 3.4 times increasing, have keeping growing This says POS

is a big potential market

Figure 2 - Market Share of ATM machines and POS Terminals in Vietnam in 2010

Source: Vietnam Bank Card Association, 2011

Cash payment was still by far the most popular method of payment in Vietnam Many consumers, even though they possessed credit or debit cards, still preferred to use cash to make payments for purchases owing to the very strong custom of doing so in Vietnam Furthermore, the continued dominating presence of traditional retailers in 2010 meant that consumers needed cash for every day transactions

A strategic question has been called out: What are the opportunities for POS market?

2.2 Research Question

In POS market, there are 3 players, (1) Banks (2) Merchants, (3) Consumers To join this

market, any players, have their own concerns to make profit

PG Bank BIDV Other

To contribute on the understanding on market’s opportunities, this study is addressed to find out any factors affecting consumer’s use of bank card payment at POS terminal

When a consumer has a bank card (ATM card, international debit card, credit card), which factors will affect them to use card payment at POS terminal, as construction of Technology Acceptance Model, called TAM (Davis, 1985)? Consumer will use card payment

at POS terminal due to Usefulness or Ease-of-Use that he/she has perceived This study tries to understand any differences of behavior between non-credit and credit consumers and how demographic dimensions influence to those behaviors

2.3 Research Objectives

Objectives are important for researcher to drive study In this research, I focus to:

Choose an appropriate model to evaluate consumer decision in card payment

Evaluate factors affected to consumer intention to use POS for payments

Contribute the understanding on consumer and merchant for business strategy development of bank

2.4 Research Scope

POS market and players is very large scope To answer the questions of each player needs different approach to different audiences This study aims to concentrates on the CONSUMERS – END USERS who:

Are Vietnamese

Own financial card (domestic or foreign card, debit or credit card)

Have financial capability (income 7.5 million VND and over)

Used to pay via POS terminal

People who has bank card, like ATM, but just use to receive money, (like salary, transfer) and withdraw almost money one time, not remain so much money in bank account are not population for this study

3 Thesis Structure

This study is structured into 5 chapters showed in Figure 3 Chapter 1 introduces research include bank card and POS terminal market overview, research problem, research objectives and research scope Chapter 2 introduces Literature Review to choose appropriate models for research Chapter 3 discusses on Research Design and Methodology used Chapter 4 analyzes the data collected and presents the findings of research Chapter 5 points out the key conclusions and learning from research

Figure 3 - Thesis Structure

to exchange data at an electronic point of service (POS) terminal (Worthington, 1998b, p.137; Isabelle et al 19994)

1 Card Payment at POS terminal

A bank card is a plastic card provided by a bank that may be used as a cheque card or debit card or to get money from client’s account out of a machine (Oxford Dictionary, 2011) There are a number of different types of bank card in use, ranging from cards which can only

be used to access someone's account through an automatic teller machine to cards which are used just like credit cards for purchases Depending on the bank that someone uses, he or she may be offered several choices of bank card when opening an account Bank card is a step change in modern society Banks have tried to embed more and more services to serve their consumers nowadays

By function classified, there are 4 main types of bank cards in Vietnam5: (1) ATM function, (2) Debit function, (3) Credit function and (4) Pre-paid function ATM card is cash card used to withdraw cash in ATM machine All ATM cards in Vietnam have a combined

4

Isabelle T.D Szmigin and Humphrey Bourne (1999), “Electronic cash: a qualitative assessment of its

adoption”, International Journal of Bank Marketing 17/4,192-202

5

See detail in Appendix 2

debit function However, most of consumers were unaware of the distinction between the ATM and debit functions on their cards In terms of making purchases, debit cards were used

in a similar way to credit cards The main different point between debit and credit card is an unsecured debt Debit account is guaranteed by amount of money in its own account while Credit account’s is an unsecured debt Credit card is usually used to make large purchases and credit card’s brands are provided by big card operators in the worlds, such as VISA, MasterCard, American Express, JCB, etc Prepaid card is new product in Vietnam market which target to some special segments or need However, it is not popular in Vietnam up to now and just few banks issuing this kind of card, such as Sacombank, Asia Commercial Bank Card payment brings many advantages for consumers Consumers do not need to carry cash is the best feature that consumers get They can avoid the risk of fake money, lost money

or tracing back transaction in the past Debit card protect consumers from themselves, they cannot make purchases over budget they have Credit card gives consumers the power of paying first and depositing later, making large purchases, getting saving/promotion from banks and or somewhat, prestige when use In other hand, they also have some disadvantages, such as over-budget consumption, fee, card fraud, and lack-of-cash inconvenience Toward banks, they have got advantages on mobilization to keep and collect capital, building bank branding for their business but they have faced to a difficult problem is effective investment to develop infrastructure of POS terminal, ATM network

Point of sale (POS) (also sometimes referred to as Point of Purchase – POP – or Point of Service – POS) or checkout is the location where a transaction occurs A point-of-sale (POS) terminal is an electronic device used by businesses to process payment transactions from credit cards, debit cards and individual checking accounts

Let’s understand how consumers use their card at POS terminal Assume that a consumer has a VISA card He goes to a store (called merchant) and sees VISA logo which means that store accept payment by VISA card When he buys goods, merchant will swipe his card in

dock, called EDCT – Electronic Data Capture Terminal EDCT read information about his

account and merchant’s bank stored in card Then all information needed including his

payment amount and card information will be sent to merchant’s bank Merchant’s bank will check in VISA master database to know whether card is valid (not card stolen, not expired, not over account balance, etc.) If there is no issue, merchant’s bank informs EDCT that payment

is approved At that time, EDCT will print out a sale slip with payment amount they have to pay, transaction code for consumers to sign in The consumer will keep original sale slip, merchant will keep sale slip copy sent bank to get money later on When get sale slip (copy)

from merchant, merchant’s bank will record credit to merchant account balance and send

payment notice through VISA network to cardholder’s bank Cardholder’s bank will record

debit to cardholder (consumer)’s account balance when get that notice In fact, whole

transactions just spend couple of minutes Group of equipment, include EDCT and facilitating devices, is called POS terminal

POS terminal also contributes an important role in bank business

Banks can get profits from several source, i.e

 Fee of each transaction made from merchants

 Bank can keep money longer (3-7 days) before paying to merchant

 Cardholder remains money in their accounts to pay debt

 Getting interest from over-due payment of credit card

Diversify banking products/services to attract more consumers

Build bank branding

Utilize development opportunities with merchants, i.e attract more accounts from merchant employee, sell banking services to merchants, etc

With growing technology needs in the 1970’s, and increasing failures of system adoption

in organizations, predicting system use became an area of interest for many researchers However, most of the studies carried out failed to produce reliable measures that could explain system acceptance or rejection (Davis, 1989) In 1985, Fred Davis proposed Technology Acceptance Model (called TAM) in his doctoral thesis at MIT Sloan School of Management

(Davis, 1985) He proposed that system use a response that can be explained or predicted by user motivation, which, in turn, is directly influenced by an external stimulus consisting if the actual system features and capabilities

The Technology Acceptance Model (TAM) is an information systems theory stating how users come to accept and use a technology The model suggests that when users are presented with a new technology, a number of factors influence their decision about how and when they will use it

By relying on prior work by Fishbein and Ajzen (1975), who formulated the Theory of Reasoned Action (TRA), and other related research studies, Davis further refined his conceptual model to propose the Technology Acceptance Model Both TRA and TAM which have strong behavioral elements assume that when someone forms an intention to act, that they will be free to act without limitation

In this proposal, Davis (1985) suggested that users’ motivation can be explained by three

factors: Perceived Ease of Use (PEOU), Perceived Usefulness (PU) and Attitude Toward

Using (ATU) the system He hypothesized that the attitude of user toward a system was a

major determinant of whether the user will actually use or reject system The attitude of the user, in turn, was considered to be influenced by 2 major beliefs: Perceived Ease of Use and Perceived Usefulness, with perceived ease of use having a direct influence on perceived usefulness Finally, both these beliefs were hypothesized to be directly influenced by the system design characteristics, represented by X1, X2 and X3 in Figure 4

Figure 4 - The Original TAM proposed by Fres Davis (Davis, 1986, p.24)

Later development of TAM would include behavioral intention as new variable that would be directly influenced by perceived usefulness of a system (Davis, Bagozzi and Warshaw, 1989) Davis et al (1989) suggested that there would be cases when, a given system which was perceived useful, an individual might form a strong behavioral intention to use the system without forming any attitude, this giving rise to a modified version of the TAM model

as illustrated in Figure 5

Figure 5 - First modified version of TAM (Davis, Bagozzi and Warshaw, 1989, p.985)

Davis, Bagozzi and Warshaw, (1989) used the above model to conduct a longitude study

to measure the intention of 107 users to use system after 1 hour introduction system and again

14 weeks later In both cases, their results indicated a strong correlation between reported intention and self-reported system usage with perceived usefulness responsible for the greatest influence on the people’s intention However, Perceived Ease of Use was found to have a small but significant effect on behavioral intention which later subsided over time But the main finding was that both Perceived Usefulness and Perceived Ease of Use were found to have a direct influence on behavioral intention, thus eliminating the need for the attitude construct from model shown on Figure 5 The resultant model is shown in Figure 6

Figure 6 - Final version of TAM (Venkatesh & Davis, 1996, p.543)

Thus, by eliminating the attitude construct and introducing the behavioral intention construct, the result obtained for the direct influence of perceived usefulness on actual system use At the same time, removing the attitude variable eliminated any unexplained direct influence observed from system characteristics to attitude variable An additional change brought to the original TAM model, was the consideration if other factors, referred to as external variables that might influence the beliefs of a person towards a system External variables typically include system characteristics, user training, user participation in design and the nature of the implementation process (Vankatesh & Davis, 1996)

With the final version in place, future research led to (1) replicating TAM and testing its propositions and possible limitations; (2) comparing TAM with other models such as the Theory of Reasoned Action (TRA) and the Theory of Planned Behavior (TPB); (3) adapting TAM for various setting such as mandatory scenarios, different applications, and cultures; and (4) extending the model to include other variables such as subjective norm (SN), extrinsic motivation, playfulness and so on (Chuttur M.Y., 2009)

With more than 700 citations to Davis’s original proposal for TAM, Davis’s research (Davis, 1989) has been adapted and extended in many ways To date, there have been several attempts to consolidate the results obtained from these studies The most recent one is by Yousafzai, Foxall and Pallister (2007) who did meta-analysis of 145 articles publishing on TAM Table 3 highlights some main applications, participations, countries and setting for which TAM was used (Chuttur M.Y., 2009)

Table 3 - Applications, participants, country and setting used for applying TAM (Yousafzai et al., 2007, Sharp,

2006, King et al., 2006, Ma et al, 2004, Lee et al 2003 and Legris et at., 2003)

Electronic commerce, commonly known as e-commerce, refers to the buying and selling

of products or services over electronic systems such as the Internet and other computer networks However, the term may refer to more than just buying and selling products online It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems

E-Commerce Applications refer to the wide variety of shopping cart programs that are available, as well as other software that incorporates payment options as plug-ins or as part of

an entire site application In that sense, the use of POS terminal is considered as an commerce application as online shopping, e-banking, online banking, etc

Thomas Foscht et al (2010) indicated that that a person’s preference for a particular payment method is dependent on his/her personal attributes Additionally, the payment method’s features and characteristics influence its desirability and acceptance Furthermore, a person’s expectations have an impact on his/her attitude toward the payment method His study also found that positive expectations, performance, and desires lead to customer satisfaction Customer satisfaction, in turn, leads to a higher degree of intent to use the payment method and higher degree of intent to recommend the payment method

Respondents of study are categorized into 2 groups, Non-Credit and Credit respondents The base point of separation is the difference of their bank accounts themselves Credit account is guaranteed by unsecured debt while Non-Credit accounts it not It leads to different behavioral use of consumers This classification approach was also used by Lea et al (1993),

as debtors and non-debtors, or Adcock et al (1977) and Crook et al (1992) as credit card holders and non-credit card holders (Lili Wang and Wei Lv, 2010)

By this categorization, study aims to clarify the understanding of 2 groups of respondents under 3 dimensions, Perceived Usefulness, Perceived Ease-of-Use and Perceived Creditability

3.2 Perceived Usefulness

Perceived of Usefulness which is the first determinant of TAM (Davis, 1985) is defined

“The degree to which an individual believes that using particular system would enhance or

improve his or her job performance” Usefulness which is indicated on performance or

productivity improvement refers to consumers’ perceptions regarding outcome of experience

(Mosuwé et al., 2004) Besides, Usefulness is influenced by Ease-of-Use to determine

consumers’ attitude toward using, because the easier a technology is to use, the more useful it can be (Venkatesh, 2000; Dabholkar, 1996; Davis et al., 1989)

Atkinson (2001) suggests that people at all wage levels struggle financially for three primary reasons – life emergencies (illness, divorce), poor money management (lack of knowledge or discipline to create and follow a financial plan/budget) and living beyond their

means where a consumerism mentality leads us to think of certain luxuries like a cell phone or cable TV service as necessities In this study, Perceived Usefulness is defined into 2 sub-

dimensions, Physical Usefulness and Mental Usefulness Physical Usefulness is the actual

convenience and effectiveness brought when consumers use card payment The availability of POS terminal at merchant can be captured as the attention of potential consumer views about the innovation when offering alternative choices with the same performing abilities Concretely, consumers do not need to pay by cash or hold so much cash in hand at the moment; consumers can save time when shopping and paying bills (Ali Kara et al., 1996); they can manage their cash flow or expenses periodically; they can get savings and promotions

from banks due to the card payments Mental Usefulness is the power-prestige that consumers

get when they use card payment For a lot of people, money means power, ownership of products and services and a symbol of social status They even regarded money as the symbol

of success, a tool to influence or impress others (Yamauchi and Templer, 1982; Lili Wang,

2011) The look-at-me effect makes them feel proud and bright This indicates the feelings of

the consumers about card ownership and usage, which is different, compared to the two categorized groups

Toward non-credit card consumers, King and King (2005) attribute the rapid increase to two reasons: (1) the fact that even for individuals who do not carry a balance and therefore, do not pay interest, credit cards are not seen as a substitute for a debit card; and (2) consumers’ fear of credit because of how credit could affect their wallets and spending habits (Thomas Foscht et al., 2010)

Toward credit card consumers, they held these attitudes think that a credit card is a very effective tool which needs to be utilized in a modern society They use credit cards for prestigious reasons, for instance, the higher tier of credit card you use (i.e platinum, gold card), the higher you level is (i.e VIP, business man, connoisseur); those are the selling points that bank consultant convince consumers to open credit account Tokunaga (1993) indicated that the intense credit user took money as the source of power and prestige; were more likely

to present anxiety; and paid little attention to saving (Lili Wang and Wei Lv, 2011) They are ready to make most purchases with credit cards, and they do not worry about the possible debt

burden that credit cards could create for them This is called outer-directed credit card

attitudes On the contrary, some consumers who held felt-involved credit card attitudes are

very careful in their spending, and they pay in full amount at the end of the grace period to avoid the finance charges imposed by banks (Ali Kara et al., 1996) Those consumers have high retention which tended to cautiously use money and had financial planning They have preferred “save first, spend later” We can see that individuals with high-level distrust are less trusting of credit cards, thus they use credit cards less often, and even avoid using them (Lili Wang and Wei Lv, 2011) Another study from Stephanie et al (2004) consumer card use also

is influenced by unsecured debts they are bearing According to Atkinson (2001), most people who use credit cards do so because they really do not think through the consequences or plan properly and end up with more debt than they can handle When lenders increase credit, cardholders often use a lot of their new credit for further purchases

A study of Alhassan (2010) in Saudi Arabia about transaction size (vary product price) effects on consumers’ retail payment mode choice (typically cash, debit card and credit card) showed that preferences for debit and credit card payment modes are similar at low transaction values (both are less preferred), whilst those for debit and cash payment are similar at large transaction values (again, both are less preferred) This suggests that electronic payment modes are collectively a substitute for cash for low transaction values, whilst credit cards are a substitute for cash and debit cards for high transaction values In this study, willing-to-pay amount are examined to segment consumers in coherence with their income

As the summary, card payment at POS terminal is believed to be high usefulness when it adapts the need of people and connects closely the use, productivity, performance, effectiveness and satisfaction In this study, consumers will be asked the following items: physical usefulness (convenience/effectiveness, expense/cash flow managing, preferable places), mental usefulness (prestige, dynamic, delighted) and financial benefit (debts, savings/promotions, leverage potential, willing-to-pay amount)

3.3 Perceived Ease of Use

The second determinant of TAM (Davis, 1985) is Perceived Ease of Use which is “The

degree to which an individual believes that using particular system would be free of physical and mental effort” Ease-of-Use is about the extent to which a person believes that using new

technology will be free of effort It refers to consumers’ perceptions regarding the process

leading to the final outcome (Mosuwé et al., 2004) Whereas Usefulness referred to consumers’ perceptions regarding the outcome of the experience, Ease-of-Use refers to their

perceptions regarding the process leading to the final outcome In a simplified manner, it can

be stated that Usefulness reflects how effective payment on POS terminal is helping consumers to accomplish their task with the best convenience, and Ease-of-Use is how easy the use of POS terminal is According to TAM, Ease-of-Use has a dual effect, direct and

indirect, on consumers’ intention to use card on POS terminal to replace cash The indirect

effect on intention is through Usefulness, to be explained how ease to use card payment links

to usefulness, i.e card swiping to get promotions, card registration to get bonus, all transactions recorded in a year or more, leverage financial potential The direct effect is explained by the fact that in behavioral decision making consumers attempt to minimize effort

in their behaviors, as is also the case with consumers’ perceptions regarding the Ease-of-Use:

the perception that POS used will be free of effort The easier and more effortless a technology

is, the more likely consumers intend to use this technology These include differences in of-use, usage convenience, reliability (Amromin et al., 2007), ability to provide a record of the transaction, leverage potential, retailer acceptance and transaction speed (Hirschman, 1982; Boeschoten, 1998; Jonker, 2007) Leverage potential concerns the extent to which the payment mode allows one to “borrow” in order to spend money not currently on hand, and transaction time deals with the speed with which a purchase transaction is concluded at the checkout counter (Hirschman, 1982)

ease-A research of Nielsen (2011) showed that 85% of interviewees have savings that are not held in bank This suggests a lack of understanding of benefits of using banks for banking services in generally and the habit to store cash in hand In particular, it can be a lack of understanding on card benefits and non-cash payment on POS terminal Besides, barriers are

largely a perceived lack of value or convenience in banking procedures Also in that research

about Personal Finance Monitor (Nielsen, 2011); Inconvenience which is one top 3 reasons for

no use Credit cards of consumers is 13% of interviewee, the main barriers are complicated

procedures from banks and no many places accept card payment No demand on credit card (59% of interviewee) which is not considered in this research and Knowledge about services

(31% of interviewee) are the rest in top 3 reasons However, bank cards which have seen a high level of future intention (Nielsen, 2011) with the fast growth of card market; wise coverage of infrastructure (Nguy n Thu Hà, 2011) will be foreseen to make a positive effect

on consumer’s intention

In that sense, study will consider Ease-of-Use at usage convenience, leverage potential,

retailer acceptance, transaction speed and bank service

3.4 Perceived Creditability

Perceived Creditability is major factor affecting to intention to adopt or continue using of any new technology applications It refers to the 2 significant dimensions – security and privacy – that are identified across many studies as effecting intention by users to adopt online-based transaction systems (Wang et al., 2003) Perceived risk in customer behavior research was introduced as any action of a consumer may lead to unpleasant consequences Other studies have considered perceived risk is the consumer’s expectation of suffering loss in pursuit of desired outcome With this definition, perceived risk is a multi-dimensional construct with overall risk which is divided into financial psychological, performance, physical and social loss, or risk of losing personal control (money, data and times) and system failure

Security relates to the risk associated with a payment instrument if lost or stolen No one can refuse the role of risk in the decision to adopt new technology system Especially, risk perception can easily escalate in use of POS service, which the consequence is not small if the information of credit card leaked led to money lost or bad credit line In the newspaper, it sometimes has the information of money lost due to the use public banking services (ATM) and personal finance information lost or even purse, wallet stolen led to card fraud

Advantages of card payment can help consumers reduce cash of payment transaction Although banks have improved so much on security level on equipment as well as information system, it is necessary to educate consumers to understand about to and build trust on consumers By using services, customers always concern about potential financial risk such as the capacity they will loss of money during the transaction process, and perceived threat to privacy, card fraud and personal information leak

As a summary, study will consider consumer awareness on security and privacy

3.5 Personal characteristics of consumers

A review of Joyce K.H Nga et al (2011) shows that the global financial marketplace is experiencing a gradual transition as Generation X6 and Y7 succeed Baby Boomers as consumers and managers The desire for a better quality of lifestyle, freedom and flexibility is gradually replacing core values of hard work and security in lifetime employment (Schiffman

& Kanuk, 2007, pp 425-31; Cennamo & Gardner, 2008) Consumption motivations, perceptions towards risk and value of money are also gradually changing College and undergraduate students born after 1977 belong to Generation Y that have been found to have higher self-esteem, greater willingness to take on risk, often driven by instant gratification to enjoy life and maintain a trendy social image (Twenge & Campbell, 2008; Herbig & Borstorff, 1995; Heaney, 2007) They are also comparatively highly educated, more talented and technologically savvy than Baby Boomers High self-esteem and expectations fuel their strong desire to succeed (Herbig & Borstorff, 1995) In many cases, their protective upbringing has contributed to their inability to make decisions (Herbig & Borstorff, 1995; Heaney, 2007) A worrying trend is the lack of financial awareness of financial planning concepts and products

6

Generation X is the generation born after the Western post–World War II baby boom ended While there is

no universally agreed upon time frame, the term generally includes people born from the early 1960s through the early 1980s, usually no later than 1981 or 1982 (Strauss, William & Howe, Neil Generations: The History of America's Future, 1584 to 2069 Perennial, 1992 (Reprint) ISBN 0-688-11912-3 pp 31, 324)

7

Generation Y, also known as the Millennial Generation (or Millennials) or Echo Boomers, describes the demographic cohort following Generation X There are no precise dates for when the Millennial generation starts and ends, and commentators have used birth dates ranging somewhere from the mid-1970s to the early 2000s (Strauss, William & Howe, Neil Generations: The History of America's Future, 1584 to 2069 Perennial, 1992 (Reprint) ISBN 0-688-11912-3 pp 31, 327)

amongst today’s youths Previous research found that many college and undergraduate students in the UK, the USA and Australia possess low financial knowledge leading to high levels of debts, risk of bankruptcy and lacking retirement planning skills among young adults (Chen & Volpe, 1998; James et al., 2002; Greenspan, 2002; Marriott, 2007; Dale & Bevill, 2007; Lusardi & Mitchell, 2007; Hoffman et al., 2008)

According to review of Alhassan (2010), a crucial aspect of the payment mode choice decision is that between cash and plastic cards Empirically, researchers have documented demographic differences in plastic card ownership (particularly credit card ownership) and usage across different national contexts (Lindley et al., 1989; Martell and Fitts, 1981; Hirschman, 1982; Chebat et al., 1988) Although there have been some contrary results, in general, card ownership has been found to be positively related to income, education and age; and males have also been found to be more likely to own credit cards than females (Chan, 1997; Kaynak and Harcar, 2001) Card usage intensity has been found to be positively related

to education (Danes and Hira, 1990; Kaynak and Harcar, 2001) and income (Wasberg et al., 1992; Chan, 1997; Kaynak and Harcar, 2001), with middle-aged consumers being heavier users than lower- and old-aged consumers (Barker and Sekerkaya, 1992)

In that sense, this study will examine the difference of demographic factors, such as (a) gender, (b) age, (c) education, (d) income, on Perceived Usefulness, Perceived Ease-of-Use and Perceived Creditability In term of income, study will apply Household Income Band Classification of Nielsen which is used globally

3.6 Research Framework

For developing an in-depth understanding of consumer use of card payment at POS terminal, a framework built is based on the previous research on consumer adoption of new technology on banking services and services The core constructs of framework are adapted to Technology Acceptance Model by Davis (1989), an influential research model in the information systems field Although this model is specifically tailored to understand the adoption of computer-based technologies on the job of in the workplace, it has proven to be suitable as a theoretical foundation for the adoption of e-commerce as well (Chen et al., 2002;

Moon and Kim, 2001; Lederer et al 2000) TAM constructs are used as a basis for research framework

Based on review of literature, the theoretical framework for research are proposed as Figure 7 below

Figure 7 - Research Framework

Actual Use of Card Payment at POS terminal

Perceived Usefulness

Perceived of-Use

Ease-Perceived Creditability

CHAPTER 3: RESEARCH METHODOLOGY & DESIGN

This chapter involves the designed questionnaire of research model based on the framework proposed in chapter 2, sampling frame and methods which will be applied to test hypotheses

1.1 Research Design

Research design is a framework or plan for a study, used as a guide to collect and analyze data There are 3 basic types: exploratory, descriptive, or causal Exploratory is on the discovery of ideas and insights Descriptive research refers to set of methods and procedures that describe marketing variables Lastly, causal design is aimed to determine cause and effect

of relationship (Burn and Bush 20068, p.205)

The study bases on the Technology Acceptance Model (Davis, 1996) and use quantitative analysis approach In order to answer the research problem, the related theories are explained

in the literature review, which will lead to extract the effective factors in the consumer

intention of card payment at POS terminal In practice, the findings will assist banks in

understanding the key factors that influence the consumer intention of the use of POS terminal services They will also provide information on the needs and preferences of the potential customers Therefore, the descriptive and causal design would be appropriate in this case to

understand the factors which affect to consumer intention to use a product as well as barriers

1.2 Research Approach

There are two different research approaches: primary research, which data have not collected yet, and secondary research, which summary, collation and/or synthesis of existing research Both of them are employed for this research

8

Burn A.C and Bush R.F (2006), Marketing Research, 5th edition, Pearson: New Jersey

A secondary research is conducted to understand the general circumstances of card

payment in Vietnam through the Annual Report 2010 of Vietnam Bank Card Association,

Financial Card Payment in Vietnam 2010 of Euromonitor International In these reports, they

have shown that cash payment is dominant payment mode in Vietnam now Besides they have admitted that card payment which is granted by government has a great opportunity to grow in near future as an alternative in dynamic society In the literature review, there are many studies about banking services (with TAM model) such as mobile banking, e-banking, etc but not many studies about payment mode, card payment at POS terminal, consumer behaviors in cashless society, etc., especially, in Vietnam context This is considered a good chance to make a study narrowed down on Vietnam market As Card Payment at POS terminal is chosen

to study in primary research, the factors affecting to consumer intention will be explored Secondary data is the source collected by others for some purposes other than research purpose, but somewhat related to the research topic (Burn and Bush, 2006, p.147) The advantages of secondary data are obtaining information quickly and inexpensively, providing background information, identifying the concept, data, and terminology for primary research (Burn and Bush, 2006, p.159) A list of key terms are developed such as “bank card in Vietnam”, “POS terminal in Vietnam”, “Financial Cards”, “Barriers of card payment in Vietnam”, “advantages and disadvantages of card payment”, “card payment service”, etc Initial key words are first created, during the period of searching; it’s easy to find out other related terms such as “Technology Acceptance Model”, “Theory of Behavior Planning”,

“Theory of Reasoned Action”, “payment mode”, “transaction value”, etc

The sources collected for secondary research and for literature review include journals, books, articles related to such as Annual Report 2010 of Vietnam Bank Card Association, International Journal of Service Industry, International Journal of Retail & Distribution Management, International Journal Business and Society, International Journal of Marketing Studies, International Journal of Bank Marketing Databases are found in Emerald Insight

Database, Passport GMID (Euromonitor International), AC Nielsen, JSTOR, Wiley International and Science Direct (Elsevier)

In addition, the data on the quantity of bank card, market share, value share in Vietnam market is got from Vietnam Bank Card Association with the support from sponsor Data is very limited in Vietnam To get better understanding about card payment segment, social circumstances, pros and cons of card payment in Vietnam, local newspaper, website of Banks, Card Operators are selected to get information and research related to the topic Besides, interview sponsors, consumers are also considered to get ideas

1.2.2 Primary research

Three ways are generally applied to obtain primary data: survey, observation and experiment To the research, the survey is chosen as the means of data collection This way has many advantages such as standardized questionnaires, easier administration and analysis and possible to tap into (Burn and Bush 2006, p.205) The self-administered survey is also selected since respondents can complete the survey by themselves without the assistance of others

A primary research is carried out to fill the gap of the problem defined in chapter 1, factors affecting to consumer intention, which will promote card use A questionnaire will be used to collect data and interview for this study in order to analyze the data regarding the factors, which affect the use of POS terminal in target consumer Based on results of data analysis, contribution for the POS terminal market in 2 major cities (Ho Chi Minh City and Hanoi) of Vietnam will be proposed

In conclusion, the multi-approach is applied for this research On this basis, the study is expected to explore and describe factors affecting to consumers

1.3 Research Strategies

A research design is to come to a prediction of the consumer responses on large scale and

is descriptive in nature As the result, the quantitative approach is applied It quantifies data

and uses statistical analysis to fulfill the understanding of external causes which support to

answer the questions The result from statistical method is reliable to decide which factors are affecting to consumers habits

The questionnaire consists of 3 sections The first section gathers the general information

about the habit of bank card use The second asks consumers about the Perceived Usefulness,

Perceived Ease-of-Use, Perceived Credibility and their attitudes about card payment at POS

terminal The third section gathers demographic information such as gender, age, levels of education, occupation status and net income of the respondents are considered as external variables that influence the formulation of relevant perceptions The 5-point Likert scale is used for statements of second section, ranging from 1 to 5, “1” for “strongly disagree”, “2” for disagree, “3” for neutral, “4” for agree” and “5” for “strongly agree”

The questions are piloted to identify whether they are understandable to the respondents and achievable to the objectives of the research A piloted questionnaire is first given to the supervisor for his review and modified accordingly Some of the changes in the questionnaire included: focus more on the benefits of card payment, describe the actions of card use, change the order of questions, separate the question group for credit card’s consumers, modify wrong wording, etc

Then, the questionnaire is translated into Vietnamese for respondents to choose comfortable understanding, thus sent to 5 respondents to make sure the understand ability of the questionnaire and the translation Bilingual questionnaire is launched as e-version in SurverGizmo® website (English Copy: http://edu.surveygizmo.com/s3/672994/english, Vietnamese copy: http://edu.surveygizmo.com/s3/672994/vietnamese) Data is collected by sending email directly to respondent and asking respondents to complete questionnaires on-computer Respondent answers questionnaire as question flowchart in Figure 8

The study population is 314 consumers Data is collected via online survey This study’s respondents are predicted are students, freelancer, housewife/househusband, business owner, managers, and officers in different sectors, such as, government, private or foreign Most of

them are living or use to live in 2 major cities (Hanoi and Ho Chi Minh City) in Vietnam and

80% of respondents used to use card payment

Figure 8 - Question Flowchart Table 4 - Questionnaire for measuring factors (See questionnaire in detail in Appendix 1)

P ART A: G ENERAL I NFORMATION

For common consumers 1 How many bank cards have you got?

2 Which types of your own bank cards?

3 Which banks issue your own cards?

4 Have you ever used card payment?

For common consumers

who answers NO at

question 4, then close

survey

5 Have you intended to use card payment via POS terminal in future?

For common consumers

who answers YES at

question 4

6 Where have you used you bank cards for payment via POS terminal?

7 How much of payment amount that you want to pay by cards at POS

terminal?

8 How often have you used card payment per month?

9 If you have to pay a fee for card payment service, have you agreed to

continue payment?

10 If you have to pay a fee for card payment service, how much is affordable

for you (counted per cent of payment amount)?

P ART B C ONSUMER U SE O F C ARD P AYMENT AT POS TERMINAL

Perceived of Usefulness

for Common User (PU)

PU1 11 Using POS terminal will enhance my effectiveness/convenient in payment PU2 12 Merchant has encouraged/recommended me to use card more than cash

Start

questionnaire

Q1, Q2, Q3

Q34 to Q40

End questionnaire

No

Yes General Questions

PU3 13 I use card to pay because I don't want pay cash PU4 14 I use card to pay for common expenses in family PU5 15 I feel my life more dynamic when I use card payment PU6 16 I feel delighted more than other when I use card payment PU7 17 I get attractive promotion/savings from banks

PU8 18 I simply like to use card payment PU9 19 Card payment helps me easily to manage my expenses more than cash

doesn't accept PEU5 24 I see merchant execute fast when I give them my card for payment PEU6 25 I can ask bank note to trace back my expense statement easily

Perceived Credibility for

Common Consumers

(PC)

PC1 26 I trust on bank and system to protect my privacy PC2 27 I don't worry about any lost (money, personal info) when I pay by card PC3 28 I know that Banks/Card Operators will protect their consumers in case of

any breaches PC4 29 Matters of Security have no influence to card payment at POS terminal

Additional question for

Consumers who have

used credit card

PU10 30 I use card payment because I don't have free cash in month, then deposit

free cash at month-end to deposit all debts I used in month PU11 31 I can use amount of money bigger than I have in hand when I need PU12 32 I don’t worry about the bank debt due to card payment

PEU7 33 I feel too complicated to complete payment procedure in bank

P ART C: P ERSONAL I NFORMATION

For all consumers 34 Current location