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| OPEN UNIVERSITY MALAYSIA RESEARCH PROJECT (BMBR5103)

FACTORS AFFECT TO THE ONLINE SHOPPING

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CHAPTER 3 - RESEARCH MODEL AND HYPOTHESES - 24 3.1 Construction the research model and research hypotheses ccssecssessserereeeeeeens 24 3.1.1 Perceived usefulness - PU oe cessssssesessecssseesseeseseneneceesreeseseesseesseeesnsnsneneene 25 3.1.2 Perceived ease of use - PEU oc cesssssecssesssseeesnseesesesscnssseessessseeenserestsnenaneons 26 3.1.3 ¡0o .Ó 26 3.1.4 TRUST 5 << nọ 1 HH TH HH HH 1871011211111211710110 26 3.1.5 Pereeived risks- PTR - «se HH nh ng ng 041 1011 T10 1 g0 008141 04.0110 27 3.1.6 Online purchasing experience - OPE sinh 1e 28 3.1.7 Electronic Word of Mouth - EWOM HH2 re 28 3.2 Research €Sign - - cà ch HH HH T1001111101081110010101909819 29 3.3 Preliminary SCaèẽĐ - - ônh HH TH ng 710117111814 107471017112119 30

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LIST OF FIGURES

Figure 2.1: Theory of rational action TRA (Ajzen and Fishbein, 1975) 15 Figure 2.2: Theory of Perceived Risk TPR (Bauer, 1960) . -c<<<sseesssessse 16 Figure 2.2: Theory of Perceived Risk -TPR (Batier, 1960) cecescessceestonseasseseeees 16 Figure 2.3: Technology Acceptance Model TAM (Davis, Bagozzi and Warshaw, 1989) "“—~ ˆ ` 17

Figure 2.5: Model affect the intention to use electronic services online purchases

r0 90) 020).1202000) 000000858 19

Figure 2.6: Model of trends affecting electronic payments (Le Ngoc Duc, 2008) 20

Figure 2.7: Model of consumer behavior of people make online purchases (Hasslinger Ct al, 2007) .ssrsrsscccsssrnsrssscccssersscssccccsesssscscsscccensssesseccesseossssescascsvesesecessccsonsreces 21

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LIST OF TABLES

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ABBREVIATIONS VNNIC: B2B: B2C: B2G: C2C: TRA: TPB: TPR: TAM: ECAM: UTAUT: PU: PEU: PR: PRT: PRP: OPE: EWOM: INTEN: EFA: KMO: VIF: Vietnam Internet Network Information Center Business to Business Business to Customer Business to Government Customer to customer Theory of Reasoned Action Theory of Planned Behavior Theory of Perceived Risk Technology Acceptance Model E-Commerce Adoption Model

Unified Technology Acceptance and Use Technology Perceived Usefulness

Perceived Ease of Use Perceived Risk

Perceived Risk of Online Transaction Perceived Risk with product/service Online purchasing experience Electronic Word of Mouth Intention

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ABSTRACT

This study aims to explore the factors that influence the Vietnamese consumers’ intention on online shopping The study was carried out in Vietnam via online survey with any customer who has ever used online shopping The result of the study showed that Vietnamese consumers’ intention on online shopping was strongly affected by “Consumers’ benefit” and “Subjective norm” The study’s

result helps the online business look more specifically on Vietnamese customers’

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CHAPTER 1 - INTRODUCTION 1.1 Introduction

Vietnam is a country with rapid internet growth in recent years According to official sources, the study by the end of 2010 the number of internet subscribers in Vietnam is 26.8 million (31% of the population) and in November 2011 the number of subscribers grew to 30.5 million (accounting for 35% of the population) The use of internet in procurement activities is still relatively low;

mainly people use the Internet for news operations, search for information, and

listen to music, chat and gaming However within the past 3 years online shopping has seen strong growth 35% had internet access works for online shopping 35% figure is not high by the majority of customers remain cautious and limited use of this service To be successful, enterprise online business need to study the factors affecting purchase intention of customers so that there are measures to promote online shopping customers in Vietnam From the practice, the author hopes to find out the factors affecting online shopping intentions of consumers in Vietnam Objectives of the study in order to understand the online shopping intention of customers in Vietnam, to develop and validate the scale of online shopping intend to use in the online business industry, as well as measure the degree importance of factors affecting online shopping intention, then propose

solutions to online business enterprises

1.1.1 Shopping online

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Online buying behavior of consumers is based on the interface of the website; product images are posted online (Lohse and Spiller 1998; Park and Kim 2003) The boom of the internet and e-commerce has a strong influence on how consumers surf (Soopramanien and Robertson 2007) and collect information about the product (Moe and Fader 2004) Online buying behavior of consumers also differs from traditional shopping (Alba, 1997) Online purchases convince customers purchase through their jobs feel the benefits they enjoy shopping (Ha and Stoel 2009)

In short, online shopping is the process of purchasing products or services made by consumers in the online shop via the Internet

1.1.2 Intent online shopping

Purchase Intent can be measured by the expected procurement and the review of the consumer on goods / services (Laroche, Kim and Zhou, 1996) Intent online shopping will determine the strength of the customers in the online buying

behavior (Salisbury, Pearson, Pearson and Miller, 2001) According Pavlou (2003), when a customer intends to use the online transaction to purchase, it is

called an online purchase intention Specifically, when the process of their search, exchange of information and purchases made via the Internet, which is considered

to be trading online (Pavlou, 2003)

1.2 Research introduction 1.2.1 Problem statement

In recent years, the boom of the information technology industry has formed a new type of transaction in the business market It was the emergence of e-commerce A

series of e-commerce sites and the introduction of this type has emerged as a trading methods quick, efficient and take full advantage of the resources the most

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Internet Network Information Center VNNIC, until 11/2012, the proportion of people using the Internet has reached 35.58% E-commerce activities were rapidly changing economy, not only in how to supply products, but also in consumer habits Vietnam consumers are becoming accustomed to online purchases However, most customers are still wary of shopping online because it is still a form of new and strange, and they still do not have a clear understanding and confidence in the technology Although now the world appeared more theoretical research model to explain the factors affecting online shopping behavior of

customers, but to date, there is no more national research to pay Answer the

questions concerning the main factors affecting the intention of online shopping Besides, the application of a theoretical model of the world on the plight of Vietnam cannot fit due to the special conditions in respect to economic, cultural and social Therefore, the deployment of a research model based on domestic and international research in recent years to build a model suitable to the conditions of Vietnam in order to provide solutions to attract consumers use Internet online purchase, improvement and development of online shopping forms, strengthening e-commerce activities has become an issue necessary The theme "The factors affecting the online shopping intention of customers in Vietnam" were made to

solve the problem

1.2.2 Purpose of the study This study was undertaken to:

+ Identify the factors affecting online shopping intention of customers in Vietnam

+ Provide recommendations and solutions to improve online shopping services to meet the needs of customers

1.2.3 Research question

1, What factors are affecting the online purchase intention of customers in

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2 Factors which influence how come online purchase intention of customers

in Vietnam?

1.2.4 The scope of the research

* Study subjects: factors affecting online shopping intention of customers in Vietnam

* Scope of the study: The study focused on those customers who have online

shopping experience and customers are looking to shop online in the locality Ho

Chi Minh City

1.2.5 Research Methods

The study used primary data sources were collected from survey questionnaires

Dissertation uses quantitative research methods, data is processed by SPSS 20,

was carried out through the following steps:

- Using qualitative research to explore, adapt and develop the scale Bilateral discussions forms will be used in qualitative research

- Testing of scale through preliminary analysis Cronbach's alpha coefficient and

factor analysis discovered EFA

- Regression Analysis to test the extent of the impact of the component elements

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CHAPTER 2 - LITERATURE REVIEW

2.1 Introduction

2.1.1 Overview e-commerce market in Vietnam:

With the advantage of saving time, unlimited positions and product cost is usually lower than the market from 3% to 5% (by not costly for premises, personnel .),

the market purchase online in Vietnam is becoming increasingly more popular

Help for the market's most popular online purchases is the contributions of many

shopping sites, Ad The company possesses a strong brand on the internet such as

FPT, VNG are aggressively increasing its market share in the field of online

trading by investment channels for purchase as chodientu.vn, 123mua.com.vn,

etc

Along with the purchase of the site in full bloom, the model of buying and selling websites is equally diverse The majority of website sales are invested in research to create their own style to present products and mining revenues Besides, there are also models "Vietnam online market" is quite unique and attracted many

netizens to participate, which is the model used forum for the exchange of

information trading Ad forums as trieudo.com, Sgiay.vn, muare.vn is attracting many visitors by its ability to rapidly exchange information on the topic between

buyers and sellers

The explosion of information online purchases, in addition to the positive factors, outstanding variety of negative factors such as:

- Most sites offer online shopping services in nature as a bridge between buyers and sellers

- A number of individuals and businesses taking advantage of the reputation of the brand online shopping site to sell shoddy products or consumer fraud Dishonesty

in product introduction and dishonest in transactions that make consumers become

more wary of buying and selling products online

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- Some individuals, businesses do not understand how to reach customers and

effectively exploit online media, should strive to publish advertisements flooded

Invisible, that advertising information dense become a burden for the e-commerce website in Vietnam

2.1.2 E-commerce concept (E-commerce)

Electronic commerce is defined as a process of buying, selling, transfer or

exchange of goods, services, or information using electronic networks such as the Internet (Turban et al., 2002) Kotler and Keller (2006) give a definition of e-

commerce in which the process of selling and buying is supported by electronic tools The main forms of the form of e-commerce include:

- Business to Business (B2B) - Business to Customer (B2C) - Business to Government (B2G)

- Customer to Customer (C2C)

- Mobile commerce (mobile commerce or m-commerce for short)

According to Kotler (2003), McGoldrick (2002) and Turban (2006), e-commerce generally has three prominent types:

- Business to Customer (B2C): The exchange between businesses and final consumers about goods, services and information on goods and services (or information about consumers) to serve consumer demand A typical example of

the form of B2C is Amazon.com

- Business to Business (B2B): a form of electronic commerce is made between (1)

manufacturers and wholesalers or (2) between wholesalers and retailers Even though there is a clear delineation between B2B and B2C in the initial appearance of e-commerce form However, with the development of e-commerce, these differences less and less clear Dell typically sell products and services to both

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- Customer to Customer (C2C): this is a form of electronic commerce between consumers Typically eBay

2.1.3 Online shopping behavior

Online purchases are defined as consumer behavior in purchasing through online stores or websites using the online purchases (Monsuwe, and K D Dellaert Ruyter, 2004) Similarly, according Haubl & Trifts, (2000), online buying is a transaction made by consumers through the interface on the computer by the consumer's computer is connected to and can interact digital stores of retailers through computer networks

Online buying behavior of consumers is based on the interface of the website, product images are posted online (Lohse and Spiller 1998; Park and Kim 2003) The boom of the internet and e-commerce has a strong influence on how

consumers surf (Soopramanien and Robertson 2007) and collect information about

the product (Moe and Fader 2004) Online buying behavior of consumers also differs from traditional shopping (Alba, 1997) Online purchases convince customers purchase through their jobs feel the benefits they enjoy shopping (Ha and Stoel 2009)

In short, online shopping is the process of purchasing products or services made

by consumers in the online shop via the internet

2.1.4 Online purchase intention

Purchase Intent can be measured by the expected procurement and the review of

the consumer on goods / services (Laroche, Kim and Zhou, 1996) Intent online

shopping will determine the strength of the customers in the online buying

behavior (Salisbury, Pearson, Pearson and Miller, 2001) According Pavlou (2003), when a customer intends to use the online transaction to purchase, it is

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of information and purchases made via the Internet, which are considered

transactions online (Pavlou, 2003)

2.2 The relevant theoretical models

2.2.1 Theory of reasoned action - TRA

Theory of reasoned action - Ajzen and Fishbein was built from the late 60s of the 20th century and expanded corrected in 70s according to TRA, the decisive factor to the final act is not the attitude that is standard the behavior Intent behavior

(behavior intention) affected by two factors: attitude (Attitude) and subjective

standards (subjective Norm) In it, the attitude is manifest personal factors expressed confidence of a positive or negative for consumer products Subjective standard also shows the influence of social relationships (family, friends .) to individual consumers Beliefs and Attitude toward Evaluations Behavior Behavioral Actual Intention Behavior Normative Beliefs and Subjective Motivation to Norm copy

Figure 2.1: Theory of rational action TRA (Ajzen and Fishbein, 1975) 2.2.2 Theory of Perceived Risk - TPR

In the cognitive theory of risk TPR (Theory of Perceived Risk), Bauer (1960)

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Risk perception related to online transactions

Risk perception related

products and services

Figure 2.2: Theory of Perceived Risk -TPR (Bauer, 1960)

- Composition risk perceptions related to products and services: quality products, products with images on the Web

- Composition risk perceptions related to online transactions: the risks that may

occur when consumers conduct transactions on the electronic media, such as

secrecy, safety and risk awareness the entire transaction In previous studies, Bhimani (1996) pointed out the threat to the acceptance of e-commerce can be expressed from the unlawful act such as revealing passwords, edit data, deceit and the non-payment of bills on time Rose et al (1999) identifies technical obstacles and costs related online transactions and specific restrictions for electronic

commerce including: the information transmission delay, limit web interface, the search issues and the less secure payment system

2.2.3 Technology Acceptance Model - TAM

Technology Acceptance Model (Davis, 1986) specializes used to explain and

predict the acceptance and use of a technology On the basis of the theory of TRA, TAM survey model relationships and the impact of related factors: perceived

usefulness, perceived ease of use, attitudes, intentions and behaviors in accepting

information technology user TAM model was edited by Davis, Bagozzi and Warshaw (1989) by removing factors as attitudes based on study results, the

authors suggest that (1) although useful perceptions have an important influence to

the formation of attitudes, but attitudes may not have a major role in predicting

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behavioral intention if an individual exposed to technology long enough (2) the type of attitude from the original model, model results at the target but its

predictability is not significantly lower than the original model (3) factors

perceived usefulness has cover all elements in its attitude That is, a person can use a technology even if they do not have a positive attitude towards it, as long as that technology actually useful or that technology really improves job performance Perceived usefulness Se

External Attitude Là Behavicural Lại Actual

variables towards using: intention to use system use NG Perceived ea ease of use Figure 2.3: Technology Acceptance Model TAM (Davis, Bagozzi and Warshaw, 1989) a Perceived Usefulness- PU

Useful perception is "The degree to a person believes that the use of a separate

application system will increase the efficiency / productivity of their work for a

particular job." (Davis, 1986) Elements useful cognitive variables:

- Communication (communication): The importance of communication in the

operation of an information system was previously the researchers acknowledged Indeed, if the lack of information cannot be linked entities operate together

- The quality system (quality system): To continuously improve the quality of the

system will help to exploit the information system more effective

- Quality of information (information quality): This is the output quality of the information system: reliable, complete and timely

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- Quality of service (service quality): Insurance, reliable, responsive The

compatibility between the technology and the work (task-technology fit): In order

to give users the most convenience in using the system b Perceived Ease of Use- PEU

Awareness ease of use is "The degree to which a person believes that using specific systems without the effort" (Davis, 1986) The computer user a message on the ability to execute a task on a computer is easy depends heavily on the

ability to use your computer, worry when using computers, control elements from

outside , is serious when using a computer, feel and enjoy the availability of using computers (Vankatesh, 2000)

c The concept of behavioral intentions:

The concept of intent is intended behavior of users when using the system Intend

to use the tight relationship to the actual usage 2.2.4 E-commerce Adoption Model —- E-CAM

Author Joongho Ahn et al (2001) have developed models to enable e-commerce E-

CAM (E-commerce Adoption Model) by integrating TAM model calibration of

Davis (1989) for receiving lecture risk formula E-CAM models are empirical

studies on both South Korean and US markets explain the acceptance of e-

commerce use This research has provided knowledge of the factors affecting the transfer of Internet users into potential customers Awareness ease of use and perceived usefulness must be improved, while the perception of risk related to products / services and perceived risks associated with online transactions to be

reduced

2.3 The research was done in the past 2.3.1 Research at Vietnam

e Look at the factors affecting the intention to use electronic services online

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Hoang Quoc Cuong author (2010) identified the factors affecting the intention to use electronic services online purchases based on accepted models consolidated information technology (UATUT) including price expectations , Recognizing the

convenience, ease of use awareness, social Influence, Feel the excitement, awareness of risk when used and variables gender, age and income Giới tính, Tuấi Thu nhập Hie) Mong đợi về giá (1) ——^ H7 H32] Nhận thức sự thuận tiện (1) — Nhận thức tính dé sé dyng (2), |———Ði + Ý định sử dụng HẠ ¡ s dich vy MHDTOQM Anh hưởng tả hội (2) O—— HT! Căm nhận sự thích thú (3) ————— H@(-) Xhận thức rủi ro khi sử đụng (4) —

Figure 2.5: Model affect the intention to use electronic services online purchases (Hoang Quoc Cuong, 2010)

e Surveying a number of factors affect the trend of using electronic payments,

the author of Le Ngoc Duc, Master thesis, 2008

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Nhận thức sự hữu ích Nhận thức tỉnh dễ sử dụng Nhận thức rũi ro liên quan đến sản phẩm và dịch vụ Nhận thức rủi ro liên quan đến giao dịch trực tuyến HŠ Chuẩn chủ quan Hồ Nhận thức kiếm soát hành vì Xu hướng sử dụng thanh toắn điện tứ Figure 2.6: Model of trends affecting electronic payments (Le Ngoc Duc, 2008) 2.3.2 Research abroad © Consumer behavior in buying people's online Hasslinger author and colleagues (2007)

Hasslinger et al (2007) examined consumer behavior research through online

book purchasing behavior of college students’ Kristianstad, Sweden-based model for customer confidence through internet shopping KO Matthew Lee

(2001) Research results indicate 3 concept components: Price, Convenience

and trust positively influence consumer behavior In particular, the study results indicated price is considered to be the most important factor when

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l The online customer Convenience segmentation Figure 2.7: Model of consumer behavior of people make online purchases (Hasslinger et al, 2007) e© Identify factors affecting online purchase intent, author Hossein Rezaee et al, 2011

The authors explore, analyze and evaluate the key factors affecting consumer

behavior in the market based on the model of Iran accepts expansion

technology (Extended TAM) with variable impact on the including comments

on the relevance, credibility, usefulness awareness, corporate reputation, social

influence and perception of risk is presented in the following models Perceived Usefulness Peceol Easeuf-use ị Pece cả Fraoymepl Behavioral Intestin Infoemazion pa Onine Banlang | Seeunty and Privacy Quality of Internet Connection

Figure 2.8: Model identifies the factors affecting online purchase intent (Hossein

Rezaee DOLAT Abadi et al, 2011)

21

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e© Models online purchase intention: The role of search intent Soyeon Shim et al (2000)

By integrating model online shopping intention (Kein, 1998) and behavioral intentions theory (Ajzen, 1985, 1991), the authors have done research to better understand the link between intentions use of the internet for finding information and shopping At the same time the study also identified the role of attitudes and related factors in the search for information and online purchase

intent of consumers Research results indicate that online shopping experience

previously strong impact of online shopping intentions Independent Variables Dependent Varaivte ——————————— ị Truật ị ¬ — pee sneer, M Perceived Ease of Use PEOU) © NG eee TH a SỐ TT = : Percetred Useduiness (PU| wag Ontine Purchase Ệ ——— intention : oe 5“ ete rH ee Pat Perceived Enjaymant(PE] =." ws nn a Subjective Norn (SN) ae

Figure 2.9: Model predicts online shoppers’ intent (Shim et al, 2000)

© Impact of E-WOM, trust and perceived value to the intended behavior of

customers, authors Milad Kamtarin, 2012

The study was conducted to examine the factors affecting the formation of online shopping intention in the city of Isfahan, Iran The results indicated that trust, online word of mouth and the value perceived positive impact on the

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2.4 Conclusion:

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CHAPTER 3 — RESEARCH MODEL AND HYPOTHESES 3.1 Construction the research model and research hypotheses

By reference to previous studies, found that the models TAM (Technology Accept Model) has been used in many different research areas, especially the areas related to computer technology Therefore, this study uses TAM model as the theoretical basis for building and developing the research model testing and investigating the factors affecting online shopping intention of customers in Vietnam However, this

study apply TAM model edited by Davis, Bagozzi and Warshaw (1989) with the

elimination factor in attitudes and retain two major players are aware of the usefulness (Perceived usefulness) and awareness usability (ease of use Perceived) Besides, based on the results of previous studies of online shopping, the study also added to the research model variables price (Price), trust (Trust), the perception of risk (Perceived risk), customer experience (online purchasing experience) In

addition to the familiar elements outlined above, the authors choose to add the

concept of online word of mouth (WOM E-) in order to better explain the online shopping intention of customers in Vietnam As the pace of development of information technology at present, online word of mouth is considered an effective tool to help consumers make the purchasing decisions quickly and accurately - Based on the model of "consumer behavior in online purchases," the authors

Hasslinger et al (2007), the author chose the concept of price (Price) and Trust (the

Trust) and the notion of convenient because this concept was included in the

concept of cognitive usefulness

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pay phones from Author Hossein Rezaee DOLAT Abadi et al (2011) concluded that the perception of risk has opposite effects intended to purchase online Past

studies have references and risk perception theory of Bauer (1960), the authors included in the model study cognitive elements (Perceived risk) because this is an important factor affecting the purchase decision through customer network _ - Based on the study, "Model of intent to purchase online: The role of search intent" by Soyeon Shim et al (2000), the experience factor online purchases (online purchasing experience) are included in model

- In the study "Impact of E-WOM, trust and perceived value to the intention of the customer behavior" of Milad Kamtarin, breeder concept Word of mouth online (Electronic Word of Mouth) to give on the model

3.1.1 Perceived usefulness - PU

Perceived usefulness is "The degree to a person believes that the use of a separate application system will increase the efficiency / productivity of their work for a particular job." (Davis, 1986) Hasslinger et al (2007) mentioned that consumers

found that online shopping saves them time, reducing the effort and can shop at any time Darian (1987), Carson et al (1996) and Burke (1997) also concluded that online shopping has created a competitive advantage compared to traditional

methods of procurement because of the search for product information, online ordering and delivery service home delivery to help customers save time Chen and his colleagues in 2005, said that online shopping will be perceived as useful

and efficiency in the work if the characteristics of online shopping system matching requirements and offers a substantial value for user They found that

perceived usefulness has a positive impact on the attitudes and intentions of online shoppers Therefore, the following hypothesis is built:

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3.1.2 Perceived ease of use - PEU

Perceived ease of use is "The degree to which a person believes that using specific

systems without the effort" (Davis, 1986) Previous studies have shown that the ease of use will increase awareness of the usefulness and impact on the intention of the customer shopping (Davis, 1989; Hong, Thong, and Tam, 2006; Hsieh and Liao, 2011) Gefen and his colleagues (2005) studied the effect of perceived ease of use on trust in online shopping They found that perceived ease of use has a positive impact on confidence as it helps to promote the use of customers in online

shopping service for the first time and make customers more willing to maintain

the relationship between buyer and seller

Hypothesis H2: Perceived ease of use has a positive impact (+) to the online shopping intention of customers

3.1.3 PRICE

Price is what consumers have to pay to get the product or service desired Expect the price of consumers’ assessment of what he would give to his cost that must be spent Consumers will feel the price on two fronts: the cost of cash to spend and opportunity costs due to abandon the use of that money to buy products or services According to Jiang and Rosenbloom (2005), customers often rely on price to determine the quality of the product because they cannot see the truth

when buying products online In the model, "Factors affecting consumers online,"

Hasslinger et al (2007) mentioned that consumers believe online shopping will help save money and be able to compare old

Hypothesis H3: Expect positive price effect (+) to the online shopping intention of

customers

3.1.4 TRUST

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purchases; customers đo not have much information about the you Therefore, trust is one of the main factors affecting the intention of online shopping (Kolsaker et al, 2004) Credibility is important because it helps customers overcome the thought of the uncertainty and associated risks as they share personal information when making online purchases or real (and Fygenson Pavlou, 2006) Intent online purchases depending on the perceived risk, the level of customer satisfaction, and perceived risk can be reduced if the increased trust (Kolsaker et al, 2004)

Hypothesis H4: The trust has a positive impact (+) to the online shopping intention of customers

3.1.5 Perceived risks- PR

In the electronic commerce accepted model of (E-CAM) and risk perception

theory (TPR), cognitive perception risks include risks related to the products /

services and risks associated with the transaction online The risk when using

online shopping services include: personal information revealed, lost accounts, the truth is not as expected when looking at online Bhatnagar et al (2000) suggest that online shopping trend will reduce the perceived risk increases According Sindhav

and Balazs (1999); Swaminathan et al, (1999), the lack of security and privacy on the internet is a barrier to online purchase intention Bhimani (1996) suggested

that consumers may fear that online providers can reject an agreement after the

transaction was completed In addition, according to Forsythe and Shi (2003),

risks related to the product concerned is a factor in online shopping and is the main reason for customers to abandon online purchases intentions Risks relating

to products with characteristics cannot touch, consider before the transaction

creating anxiety or uncertainty for the product All this would have undermined confidence attitude of consumers to purchase online

Hypothesis H5: Perceived risk has negative impact (-) to the online shopping

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3.1.6 Online purchasing experience - OPE

Online shopping is a form still new to many consumers, it remains to be seen carrying more risks than traditional forms of shopping (Laroche, Yang, McDougall and Bergeron, 2005) Therefore, online shopping will depend heavily on the experience that customers have been from previous purchases Previous

studies have concluded that online buying experience earlier direct impact on

online purchase intent, and if those experiences to help them succeed online purchase, they will continue shopping online future (Shim et al, 2001; Eastlick and

Lotz, 1999; Weber and Roehl, 1999)

Hypothesis H6: Customer Experience positive impact (+) to the online shopping

intention of customers

3.1.7 Electronic Word of Mouth - EWOM

Word of mouth (WOM) is the act of consumers providing information to other consumers As Kirby and Marsden (2006), word of mouth is the words, communication between people, between people who get communicated regarding

a brand, product / service or information on the market Currently, with the

development of information technology, the traditional form of word of mouth (WOM) has gradually been replaced by word of mouth online form (e-WOM), E- WOM is "any positive words or the negative of these potential customers, existing or previously characterized the application or related products through internet"

(Hennig-Thurau et al, 2004; Litvin, Goldsmith and Pan, 2008) Compared with traditional word of mouth, word of mouth online is considered more useful for

speed, convenience, ability to spread and there is no face to face element (Phelps,

Lewis, Mobiliom, Perry and Raman, 2004 ) Online word of mouth is created and

transmitted by major customers is always a reliable source of information for them

(Mangold & Faulds, 2009; Chu & Kim, 2011) According to Wu & Wang (2011), customers believe in the word of mouth about the product than from other sources

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for New Communications Research has shown the extent of the word of mouth on the online media According to this study: 59.1% of respondents, the use of online media to shed the experience of the customer care service of a brand, 72.2% of respondents, research customer care online information products online before buying Hypothesis H7: Word of mouth online positive impact (+) to the online shopping intention of customers Perceived usefulness Perceived ease of use PEU Intent online shopping of customer Perceived risks- PR Online purchasing experience - OPE Electronic Word of Mouth EWOM > H7 (+) Figure 3.1: Model of proposed research 3.2 Research design

This study was carried out through two stages: qualitative research and quantitative research The research process will look like the following table:

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Table 3.2: Table of the research process Types of Research - Step Action research method _ ¬ Face to face 1 Preliminary Qualitative - ; discussion 2 Official Quantitative Questionnaire 3.3 Preliminary scales

The construction of the scales for the concepts of model studies referenced, inheritance and model-based calibration technology accept TAM and the scale has been available since the previous study

- Malin Eliasson (2009): Study on online purchase behavior of women”

- Davis, Bagozzi and Warshaw (1989): Technology Adoption Model: a comparison of two theoretical models

- Joongho Ahn, Jinsoo Park & Dongwon Lee (2000): Studies of factors affecting the acceptance of e-commerce E-CAM

- Hasslinger et al (2007): consumer behavior in online purchases - Lee and Turban (2001): Model of trust in online purchases

- Jae-Il Kim, Hee Chun Hae Joo Lee & Kim (2004): The factors affecting the intention of looking for information online and online shopping intention

- Mei-Hsin Wu (2013): The relationship between the reliability of online word of

mouth, perceived risk and customer behavior

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Table 3.3: Summary of Preliminary scales Concept Reference Preliminary Scale study SOUrce

- Takes less time - Davis, - Find product information Bagozzi and Perceived

quickly Warshaw

usefulness

- Buy products in anywhere (1989) - Buy products at any time

- Easily find the information and products

- Method of payment shopping

Perceived and online shopping service is - Davis ease of use quite simple (1989) PEU - The functions of the online - Venkatesh

shopping website is clear and easy and Davis

to understand (2001)

- Easily compare the

characteristics between products

- Price products is important when - Hasslinger using online shopping services

- - and partners

- The price of online products - (2007) PRICE cheaper than the store price

- Malin

- Easy comparison of prices Eliasson - - Saves travel costs to see the (2009) goods - No reliable because there are too many uncertainties - The interface of the website to - Lee and TRUST Tu,

increase credibility Turban (2001)

- Images of products available increases reliability

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- Information on product details

and clear as it increases trust - The risk of online shopping is very high

- Design products is inconsistent

with the actual product images on - Suresh A M the site and Shashika Perceived - Product quality is actually not as - Joongho

risks- PR expected Ahn,

- Concerned about the safety of Jinsoo Park, online payment system Dongwon - Use online shopping services do Lee, 2001) take time and money but not

effective

- ] feel satisfied with the online shopping experience for me

Online

- I feel qualified to use online purchasing - - Jae-II Kim,

- shopping services

experience - Hee Chun Lee

- I feel that online shopping

- OPE & Hae Joo service is easy to use Kim (2004)

- I feel comfortable when using online shopping services

- Review of the product on the

online forum is very important - Ronald E

Electronic ° - Actively seek information about Goldsmith & Word of the product

David Mouth - Spend more time reading the Horowitz - EWOM reviews online about the product - Mei-Hsin -

- The positive comments on the Wu (2013)

online forum to influence

decisions of my shopping online

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- ] will use (or continue to use) an online purchase service in the future - Bagozzi, INTENT - I plan to purchase online in the Baumgatnr va future Yi (1998) - I plan to purchase online in the future 3.4 Qualitative research

3.4.1 Perform qualitative research

Qualitative research was undertaken to discover, add and adjust the observed variables used to measure the concepts in the model

Techniques discussed bilaterally with the objects selected by the method convenient but still reflect the characteristics of the sample collection

Five subjects were selected to participate in qualitative research are those who have experience in the field of online shopping over 2 years

- Discussion: Discuss the component factors affecting online shopping intention, the observed variables for each scale components in the model (Annex 01: Face to

face discussion)

- The order of execution:

e Conducting on-one discussions between the researchers with each object is

opted qualitative research to collect relevant data

e After interviewing all objects, based on the data collected, conduct editing

questionnaires

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3.4.2 Adjusted scale results in qualitative research

The assessment of the contents scale to the participants in the qualitative survey results to review their content is no need to adjust or not, content scales easy to

understand or not, need to add or remove less variable or not

In general, the comments are in agreement on the content of these factors affect the intention to use online shopping services Some suggested that the statement should be brief, limiting the process to discourage answered questions of those surveyed At the same time, the survey participants additional qualitative some statements required to measure a number of elements in the proposed model After qualitative research, the results of the questionnaire for the quantitative

survey has a total of 34 observations for the variable component of the concept study is presented in Appendix 2: questionnaire survey

a) Scale cognitive usefulness

Awareness is useful to mention the benefits customers get when using online shopping services Preliminary Scale consists of 4 variables Edit variable "I saw online shopping service takes less time than" to "I see online shopping services are useful in saving my time."

Table 3.4.2 Statement perception scales helpful

Variable code Statement

PUI 1 I think that online shopping services are useful in saving my

time

PU2 2 1 think that the use of online shopping services to help me find product information quickly

PU3 3 I think that the use of online shopping services to help me buy the product in anywhere

PU4 4 I think that the use of online shopping services to help me buy the product at any time

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b) Scale perceived ease of use:

Ease of use refers to the easy, straightforward when using online shopping services Preliminary scales with 4 variables This scale does change from baseline

Table 3.4.3 Statement perception scale usability Variable code Statement

PEUS 5 I easily find the information and products they need when using online shopping services

PEU6 6 | see how the shopping and payment online shopping service is quite simple for me

PEU7 7 The functions of the online shopping website is clear and easy to understand

PEU8 8 I easily compare features between products when using online shopping services

c) The scale of price expectations

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Table 3.4.4 Table statement Expect pricing scale Variable Statement code

PRICE9 9 Product Price is important for me to use online shopping services PRICE10 10 I think that the price of products on the network cheaper than the

prices in the stores

PRICEII 11 Use online shopping service help me easily compare prices

PRICE12 12 Use online shopping service to help me save travel costs to see the goods

PRICE13 13 The promotion of online shopping services attracted me

d) Scale of Trust:

Credibility helps customers overcome the thought of the uncertainty and associated risks when they decide to buy goods online Scale consists of 4 variables and no change observed after the process of qualitative research

Table 3.4.5 Scale table of Credibility

Variable code Statement

TRUST14 14, Online shopping is not reliable

15 The interface of the website increases my TRUSTI5

confidence for online shopping

16 Pictures of products available increases my TRUSTI6

confidence for online shopping

TRUST17 17 Information about the product as detailed and clear, it increases my confidence for online shopping

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e) The scale of risk awareness

Perception of risk related to use online shopping services refers to the level of anxiety, concern that users feel when using online shopping services Qualitative research helps adjusting the terms to those surveyed understandable without adding or subtracting personal statement currently After adjustment, the scale of the risk perception when used as follows:

Table 3.4.6 Table remarks scale of risk awareness

Variable code Statement

PR18 18 I believe that online shopping risks are high

PRI9 19 I'm worried about the actual product designs are not suitable for product images on the site

PR20 20 I'm worried about the actual quality of the product is not as I expected PR2I 21 I am concerned my personal information will be disclosed PRI? 22 I am concerned about the safety of online payment systems of websites

PR23 23 I worry that using online shopping services do take

time, my money, but not effective

f) The scale online shopping experience:

Experience using and referring to comments from those affected online purchases

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Table 3.4.7 Table remarks scale of online shopping experience

Variable code Statement

4 I feel satisfied with the online shopping experience for OPE24

me

OPE25 25.1 feel qualified to use online shopping services OPE26 26 I feel that online shopping service is easy to use

27 I feel comfortable when using online shopping OPE27

services

g) Scale effects of online word of mouth EWOM

Online word of mouth is mention to the influence of positive comments and negative about the product to the customer online purchase intention of an individual After qualitative research, the initial 4 observed variables unchanged

Table 3.4.8 Table remarks scale of online word of mouth

Variable code Statement

28 Comment on the online forums are very important EWOM28

for me when I want to buy online

29 When I want to buy online, I always actively EWOM29

searching for information about that product

30 When I want to buy online, I always spend a lot of EWOM30 -

time reading the reviews online about the product 31 The positive comments on the online forum to EWOM31

influence decisions of my shopping online

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