EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONES: A STUDY OF OFFICE WORKERS IN HO CHI MINH CITY In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business By Mr Nguyen Dang Hat ID: MBA04013 September 2013 International University - Vietnam National University HCMC EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONES: A STUDY OF OFFICE WORKERS IN HO CHI MINH CITY In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business by Mr Nguyen Dang Hat ID: MBA04013 International University - Vietnam National University HCMC September 2013 Under the guidance and approval of the committee, and approved by all its members, this thesis has been accepted in partial fulfillment of the requirements for the degree Approved: -Chairperson Committee member -Committee member Committee member -Committee member Committee member September 2013 Acknowledgements First and foremost, I would like to express my sincere gratitude and appreciation to my advisor, Mr Nguyen Van Phuong, who has always encouraged and supported me to solve problems of my thesis He has taught me things beyond my understandings He is really a wonderful advisor I was so lucky to have his encouragements and precious advices during all of my study I would like to give special thanks to all members of my thesis committee for their insightful comments and advices I am very grateful and proud of all teachers at International University who have gave me precious lessons and useful knowledge during two years To me, all teachers of International University are the best teachers who inspire me to keep moving forward I would like to appreciate all the supports of respondents in my survey If they did not support me, this thesis would not be finished To my friends who are also advised by Mr Phuong, I appreciate all the time we shared, supported and encouraged each other to keep going ahead to complete thesis Now we can be proud of ourselves for what we did To my friends who supported me in my research work, I would like to thank them so much Finally, I would like to give special thanks to my beloved parents for always giving me infinite love, care, belief and supporting me during my research period and also throughout my life Mom and Dad, you are wonderful and I am so proud to be your son Plagiarism Statements I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at the International University – Vietnam National University Ho Chi Minh City ii Copyright Statement This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author’s prior consent © Nguyen Dang Hat/MBA04013/2011-2013 iii Table of Contents Chapter One – Introduction 1.1 Background 1.2 The problem statement 1.3 Research question 1.4 Research objective 1.5 Scope and limitations of research 1.6 The structure of the study Chapter Two – Literature Review and Hypotheses Development 2.1 Literature review 2.1.1 Smartphones 2.1.2 Technology acceptance model (TAM) 2.1.3 Perceived Ease of Use 2.1.4 Perceived Usefulness 2.1.5 Self-Efficacy 2.1.6 Functional Attributes 2.1.7 Playfulness 10 2.1.8 Social Influence 10 2.1.9 Users’ Attitude 11 2.1.10 Purchase Intention 12 2.2 Hypotheses development 12 2.2.1 Proposed research model 12 2.2.2 Hypotheses development 13 iv Chapter Three – Research Methodology 17 3.1 Source of data 17 3.1.1 Primary data 17 3.1.2 Secondary data 17 3.2 Research design 17 3.3 Data Collection Method 20 3.4 Procedure for analyzing data 21 Chapter Four – Data Analysis 22 4.1 Respondents Characteristics 22 4.2 Descriptive Statistics 25 4.3 Cronbach Alpha test 31 4.4 Exploratory Factor Analysis (EFA) 33 4.5 Confirmatory Factor Analysis (CFA) 37 4.6 Structural Equation Modeling – SEM 43 4.7 Result Discussion 46 Chaper Five: Conclusion and Recomendation 49 5.1 Conclusion 49 5.2 Practical Implication 49 5.3 Limitation and further recommendation 52 v List of figures Figure 1: Original TAM proposed by Fred Davis (Source: Davis, 1986, p.24) Figure 2: New relationship formulation in TAM (Davis 1993, p.481) Figure 3: Research model 12 Figure 4: Sex 23 Figure 5: Age 23 Figure 6: Total working experience 24 Figure 7: Income 24 Figure 8: Education 25 Figure 9: CFA of the measurement model standardized 39 Figure 10 - Structural Equation Modeling result after adjusting theoretical model (Standardized) 43 Figure 11: Final research model 46 vi List of tables Table 1: Coded items of measurement scale 18 Table 2: Respondents Characteristics 22 Table 3: Variables Descriptive Statistic 26 Table 4: Result of Cronbach Alpha test 31 Table 5: KMO and Bartlett's Test 34 Table 6: Total Variance Explained 35 Table 7: Pattern Matrixa 35 Table 8: KMO and Bartlett's Test 36 Table 9: Total Variance Explained 36 Table 10: Component Matrixa 37 Table 11: Criteria for measurement model 38 Table 12: CMIN 40 Table 13: RMR, GFI 40 Table 14: Baseline Comparisons 40 Table 15: RMSEA 40 Table 16: Standardized Regression Weights (Group number - Default model) 41 Table 17: Regression Weights 41 Table 18: Convergent and discriminant validity and correlation matrix 42 Table 19: SEM – Regression Weights 44 Table 20: SEM – Standardized Regression Weights for main parameters 45 vii Abstract It is clearly to say that mobile technology plays a crucial role in how the world communicates, whether in individual settings or a business Smartphones have gradually reducing the people’s dependence of computers or laptops since smartphones allow people to communicate and things that have traditionally been done by computers or laptops For this reason, more people nowadays buy smartphones However, the process of deciding to buy a smartphone of users is varied by a great number of diverse factors The main aim of this study is to explore the factors affecting purchase intention of smartphones of office workers in Ho Chi Minh City The factors in the research include self-efficacy, functional attributes, social influences, playfulness, perceived usefulness, perceived ease of use, users’ attitude and purchase intention Data were collected from 405 respondents through online and offline survey Survey results support that smartphone purchase intention of office workers in Ho Chi Minh City is mostly based on functional attributes, users’ attitude and perceived usefulness viii Moreover, the current research is limited by the consumer point of view Further research could be conducted from the side of producers and distributors Lastly, the frameworks used in this research may not have been sufficient to explain all the aspects of the determinants that influence the purchase of these devices Further research needs to be conducted to overcome the limitations of this study - 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Xã hội Nhà Xuất Bản Thống Kê Fishbein, M & Ajzen, I (1975) Belief, attitude, intention, and behavior: An introduction to theory and research Reading, MA: Addison-Wesley - 59 - - 60 - Appendix Appendix 1: Questionnaires English edition EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONE: A STUDY OF OFFICE WORKERS IN HO CHI MINH CITY Dear Madam/Sir, I am Nguyen Dang Hat from MBA04 (International University, Vietnam National University of Ho Chi Minh City) I am carrying out the master thesis with the topic “EXPLORING THE FACTORS AFFECTING PURCHASE INTENTION OF SMARTPHONE: A STUDY OF OFFICE WORKERS IN HO CHI MINH CITY” Please take your time to answer some following questions It is important for you to note that there is no right or wrong answers All your answers will take a very important role to the success of the thesis I really appreciate your cooperation and trustful answers Note: Smartphones are mobile phones, integrated with more advanced features, working on an operating system such as Android, IOS, Symbian, or Windows Mobile allowing applications (software) These advanced ones include the ability to manage personal information, multimedia features, video games and office applications Are you a person deciding to buy a smartphone for yourself? ⃝ Yes ⃝ No Part 1: Factors affecting purchase intention of smartphone Please give your level of agreement for following statements by choosing an appropriate response below Strongly disagree Disagree Neutral Agree Strongly agree ① ② ③ ④ ⑤ Self-efficacy I could complete a job by using the smartphone ., although no one tells me what to ., although I had never used a smartphone like it before ., if I had seen someone else using it before trying by myself ., if I had used similar smartphones before this one to the same job ① ① ① ① ② ② ② ② ③ ③ ③ ③ ④ ④ ④ ④ - 61 - ⑤ ⑤ ⑤ ⑤ …, if I could ask someone for help when I got stuck ① ② ③ ④ ⑤ Social influence Almost all of my friends/family members are using smartphone ① ② ③ ④ ⑤ My friends/family members influenced me to buy smartphone The websites/ forums influenced me to buy smartphone ① ① ② ② ③ ③ ④ ④ ⑤ ⑤ People around me have stimulated me in using smartphone ① ② ③ ④ ⑤ Functional attributes 10 The quality of smartphone camera is acceptable ① ② ③ ④ ⑤ 11 Smartphone provides high quality of games ① ② ③ ④ ⑤ 12 Smartphone app stores are diverse (Apple Store, Google play) ① ② ③ ④ ⑤ 13 Smartphone’s internet accessibility is speedier than basic hand phone (Wi-Fi, 3G, 4G) ① ② ③ ④ ⑤ 14 Smartphone can be compatible with other digital devices ① ② ③ ④ ⑤ Playfulness 15 Using smartphone stimulates my curiosity ① ② ③ ④ ⑤ 16 17 Using smartphone arouses my imagination ① ② ③ ④ ⑤ Using smartphone gives me enjoyment 18 The design of smartphone makes me more interested in using ① ① ② ② ③ ③ ④ ④ ⑤ ⑤ Using the smartphone in my job would enable me to arrange my work schedule more quickly ① ② ③ ④ ⑤ Using the smartphone in my job would enable me to update my information quickly (email, Facebook) Using the smartphone would enable me to determine the directions easily Using the smartphone would enable me to relax in spare time (play games, listen to music or watch films) ① ② ③ ④ ⑤ ① ② ③ ④ ⑤ ① ② ③ ④ ⑤ 23 Using the smartphone in my job would enable me to save money (call/send message free via Viber, Skype, Fring) ① ② ③ ④ ⑤ 24 Using the smartphone in my job would enable me to use office applications (Word, Excel) more convenient ① ② ③ ④ ⑤ Perceived usefulness 19 20 21 22 Perceived ease of use 25 Learning to operate the smartphone would be easy for me ① ② ③ ④ ⑤ 26 My interaction with the smartphone would be clear and understandable I would find the smartphone to be flexible to interact with ① ② ③ ④ ⑤ ① ② ③ ④ ⑤ 27 - 62 - 28 It would be easy for me to become skillful at using the smartphone ① ② ③ ④ ⑤ User’s attitude 29 Using the smartphone for working is (would be) a good idea ① ② ③ ④ ⑤ 30 I like (would like) using the smartphone for working ① ② ③ ④ ⑤ 31 I like (would like) using the smartphone for relaxation ① ② ③ ④ ⑤ 32 Owning smartphone helps me feel more confident ① ② ③ ④ ⑤ Purchase Intention 33 I intend to keep continuing use a smartphone in the future ① ② ③ ④ ⑤ 34 There is a high probability that I will purchase a smartphone ① ② ③ ④ ⑤ 35 I intend to have a better purchase of smart phone in the future from my experience ① ② ③ ④ ⑤ 36 I would advise friends / colleagues to purchase a smartphone ① ② ③ ④ ⑤ Section 2: Personal Information 37 ⃝ Male Gender ⃝ Female Age (years old): ⃝ 18-25 38 ⃝ 26-32 ⃝ 33-44 ⃝ 45-60 ⃝ more than ⃝ -< 10 years ⃝ 10 -< 15 years ⃝ more than ⃝ - < 12 ⃝ 12 - < 16 ⃝ more 60 Total working experience: 39 ⃝