The reluctance of vietnamese in online payment (tt)

長庚大學商管專業學院 碩士論文 School of Business Chang Gung University Master Thesis 基於視覺線索為基礎的信任的影響：以越南線上購物 網站為例 The reluctance of Vietnamese in online payment 指導教授：廖耕億 博士 Advisor: Gen-Yih Liao, Ph.D 研究生：阮氏慶明 Graduate Student: My Thi Khanh Nguyen 中華民國 106 年 月 June 2017 Chang Gung University Recommendation Letter from the Thesis Advisor This thesis is by My Thi Khanh Nguyen of the graduate program in School of Business, entitled: The reluctance of Vietnamese in online payment, which is written under my supervision, and I agree to propose it for examination frt4tIs flrr:- Advisor-i, Date: Llwrul- Chang Gung lJniversity Thesis Oral Defense Committee Certtfrcation This thesis is by My Thi Khanh Ngulren of the graduate program in School of Business, entitled: The reluctance of Vietnamese in online palzment, who is qualified for master degree through the verification of the committee Convener of the degree examination committee Committee members ilt,6 Department Chair/Program Director Date: WWZW &*,^-'f,h !rr" Acknowledgments I faithful thanks to my advisor Professor Gen-Yih Liao for his valuable guidance and encouragement throughout the research and thesis write up My sincere thanks to all professors in the MBA program for their support and guidance me during I studied in Chang Gung University I am very grateful to the department’s officers for their helps and supports on my study Last but not least, I am deeply grateful to my family, who always love me, believe in me, and give me constant encouragement and support without any conditions Without their love, endless support, enormous encouragement and tolerance, I would not be able to succeed and achieve these results today iii Abstract Vietnamese consumers have embraced online shopping but appear reluctance to use online payment This study is an exploratory on online payment in Vietnam In this study, we investigate the factors are measured by cue-based trust and perceived risk that influencing the reluctance to use online payment service among Vietnamese Big Five personality framework is also used in this study to clarify the relationship between cue-based trust and perceived risk In this study, the questionnaire was used to collect data from 183 of the respondents who live in two big cities in Vietnam (Ho Chi Minh and Danang) with complete answers participating in the study Results show that both cuebased trust and perceived risk factors are associated strongly with reluctance to pay online Additionally, perceived risk mediates the relationship between cue-based trust of online retailer and customers’ reluctance in online payment This study also reveals that Big Five personality trait (high conscientiousness and high agreeableness) moderate the relationship between cue-based trust and perceived risk Findings may help online retailers to understand better customers’ behavior and convince customers’ acceptance online payment The practical and research implications of these results are discussed Keywords: online payment, reluctance, cue-based trust, perceived risk, Big Five personality traits iv Table of Contents Recommendation Letter from the Thesis Advisor Thesis Oral Defense Committee Certification Acknowledgments iii Abstract iv Table of Contents v List of Figures vii List of Tables viii Chapter 1: Introduction - 1.1 Overview - - 1.1.1 The development of B2C e-commerce in Vietnam - 1.1.2 Online payment system in Vietnam - 1.1.3 The current statuses of online payment in Vietnam - 1.2 Problem Statement - 1.3 Research Questions - 1.4 Outline of the Thesis - Chapter 2: Literature Review - 2.1 Reluctance to pay online - 2.2 Perceived risks related to online payment - 10 2.3 Cue-based trust - 12 2.4 Personality traits studies in online behavior - 15 Chapter 3: Methodology - 17 3.1 Introduction - 17 3.2 Research Model - 17 3.3 Research Hypotheses - 19 v 3.4 Questionnaire - 22 3.5 Data collection - 23 Chapter 4: Analysis - 26 4.1 Demographic analysis - 26 4.1.1 Age and Gender - 26 4.1.2 Education - 26 4.1.3 Occupation - 27 4.1.4 Monthly income - 28 4.1.5 Online payment experience (years) - 28 4.2 Materials and measures - 29 4.2.1 Sample - 29 4.2.2 Measures - 29 4.3 Data analysis - 31 4.3.1 Analysis steps for mediator variable - 31 4.3.2 Analysis steps for moderator variables - 32 4.4 Results - 32 4.4.1 Result of mediator variable - 32 4.4.2 Results of moderator variables - 34 Chapter 5: Discussion and Conclusion - 37 5.1 Discussion - 37 5.2 Practical implications - 39 5.3 Limitations and future research - 40 5.4 Conclusion - 41 References - 42 Appendix: Questionnaire - 51 - vi List of Figures Figure 1: The type of intermediary payment services in Vietnam - Figure 2: Research Model - 18 Figure 3: Age and by Gender - 26 Figure 4: Education - 27 Figure 5: Occupation - 27 Figure 6: Monthly income - 28 Figure 7: Online payment experience (years) - 28 - vii List of Tables Table 1: B2C e-commerce metrics in Vietnam 2015 - Table 2: Questionnaire Constructs, Items and References - 22 Table 3: Sample characteristics - 24 Table 4: Measurement instruments and internal reliability - 30 Table 5: Testing for perceived risks as a mediator - 33 Table 6: Testing Big Five personality traits as moderators - 34 Table 7: Results of hypothesis testing - 35 - viii Chapter 1: Introduction 1.1 Overview 1.1.1 The development of B2C e-commerce in Vietnam E-commerce is an inevitable trend of the global economy and Vietnam is not apart from this movement Decision 222 by the Prime Minister in 2005 on approving the Master Plan on E-commerce Development for the 2006-2010 Period was the first macro policy of the State with comprehensive measures, orientations and detailed action programs to promote the nationwide growth of e-commerce Through this Decision, Vietnam government aimed to establish the foundation for a wide range of e-commerce activities and introduced e-commerce into social life through specific in economic and trade areas in Vietnam Ten years after the effective date of Decision 222, Vietnam ecommerce has shifted from the stage of forming and creating the infrastructure to the stage of thriving and gradually forming sustainable infrastructure According to the survey of Vietnam E-Commerce and Information Technology Agency (VECITA), the application of ecommerce in enterprises not only focused on the big cities but also spread nationwide Besides, the legal framework related to e-commerce has advanced with clear definitions on enterprises’ obligations, while the functions of public sector organizations with regard to managing ecommerce were also enhanced from the central to local level In the term of B2C e-commerce, new businesses in diversified forms are implemented in the market Statistics from VECITA in 2015, approximately 62% of the 43.9 million Internet users in Vietnam were online shoppers and each shopper spent $160 a year via e-commerce platforms They also estimated that -1- Finally, we only use data from participants who live in cities in Vietnam This research can be largely improved if doing the survey in nationwide with a random sample It will accurately reflect Vietnamese behavior and may have affected our estimation results It would be of interest if future research seeks to address this issue 5.4 Conclusion This study has proposed and tested a model that examined factors that influence customers’ reluctance to pay online, based upon concepts from cue-based trust, perceived risks and Big Five personality framework Our research provides support for cue-based trust and perceived risks as statistically significant predictors of customers’ reluctance in online payment Especially, following Ang et al (2006) framework and statistical recommendations for testing mediator effects, perceived risk was found to partially mediate the relationship between cue-based trust and customers’ reluctance in online payment via the use of multiple regression In addition, this study represents an initial step into the analysis of the moderating effects of customers’ personality, namely high conscientiousness and high agreeableness individual, on the relationship between cue-based trust and perceived risk These findings may help online retailers to find solutions for customers’ reluctance in online payment They need to increase their cue-based trust by reducing customers’ perceived risks to convince customers’ acceptance in online payment - 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49 - effects of behavioral beliefs, social influences, and personal traits Computers in Human Behavior, 28(1), 129-142 - 50 - Appendix: Questionnaire My name is Nguyen Thi Khanh My I am an MBA student from Chang Gung University undertaking a survey on “Why are Vietnamese people reluctant to use online payment?” I would like to have your cooperation in answering the following questions The information collected will only be used for research purposes All collected information will be treated with strict confidentiality Please tick the answer that you think best describes your perceptions and attitudes Here are a number of personality traits that may or may not apply to you Please rank the statements below from (1) Strongly Disagree to (7) Strongly Agree to indicate the extent to which you agree or disagree with that statement Part 1: Big Five Personality Traits (Ten-Item Personality Inventory) You see yourself as someone who: Extraversion Extraverted, enthusiastic Reserved, quiet Conscientiousness Dependable, self-disciplined Disorganized, careless Emotional Stability Anxious, easily upset Calm, emotionally stable Openness to experiences Open to new experiences, complex Conventional, uncreative Agreeableness - 51 - Sympathetic, warm 10 Critical, quarrelsome While answering questions in the Part and sections, please imagine that you are buying on the Web site (tiki.vn, lazada.vn, zalora.vn, etc) or on social media (Facebook, Instagram, etc) Part 2: Trustworthiness Cues Security disclosures check Anchors: (1) Strongly Disagree to (7) Strongly Agree 11 When I read the security statement, I feel more confidence about buying and paying online payment on the Web site Privacy disclosures Anchors: (1) Strongly Disagree to (7) Strongly Agree 12 When I read the privacy statement, I believe that the Web site is willing to protect my personal information 13 When I read the privacy statement, I believe that the Web site would not abuse my personal information 14 When I read the privacy statement, I believe that the Web site is not likely to sell my personal information Return policy check Anchors: (1) Strongly Disagree to (7) Strongly Agree 15 When I read the return policy, I believe that the Web site is willing to provide a money-back guarantee for its offerings 16 When I read the return policy, I believe that the Web site is willing to provide a guarantee for its offerings Awards from neutral sources check Anchors: (1) Strongly Disagree to (7) Strongly Agree 17 When I read “about us” statement, I believe that the Web site is a reliable business - 52 - 18 When I read “about us” statement, I believe that the Web site has a good reputation 19 When I read “about us” statement, I believe that the Web site has good business conduct Cue-based trust Anchors: (1) Strongly Disagree to (7) Strongly Agree 20 The Web site can be trusted completely to pay online payment 21 The Web site can be counted on to what is right 22 The Web site can be relied upon Willingness to provide personal information Anchors: (1) Very unlikely to (7) Very likely 23 If you are required to register with the Web site, how likely is it that you would provide accurate information? 24 If you are required to register with the Web site, how likely is it that you would provide complete information? Bookmarking Anchors: (1) Very unlikely to (7) Very likely 25 How likely is it that would you bookmark the Web site, if you are able to that? 26 Would you save the address of the Web site, if you are able to that? Describes of product Anchors: (1) Strongly Disagree to (7) Strongly Agree 27 From describes of product, I feel comfortable to buy the product by buying and paying online payment Comments of customer Anchors: (1) Strongly Disagree to (7) Strongly Agree - 53 - 28 From comments from previous customers, I feel comfortable to buy the product by paying online payment Part 3: Perceived Risk Anchors: (1) Strongly Disagree to (7) Strongly Agree) 29 I would not feel totally safe providing personal privacy information over the online payment system 30 I am worried to use online payment because other people may be able to access my account 31 I would not feel secure sending sensitive information across the online payment system 32 I fear that the product/service bought online will not be as I want Part 4: Reluctance to use online payment Anchors: (1) Very unlikely to (7) Very likely 33 Whenever possible, I avoid paying online 34 I generally prefer to pay cash instead of online payment 35 I would feel uncomfortable if I chose to use online payment when paying cash was available 36 I tend to use online payment only if paying cash is unavailable 37 Given the option, how likely are you to use cash over online payment? Part 5: Personal Information 38 Gender (1) Male (2) Female 39 Age (1) 18 or below (2) >18 and £24 (3) >24 and £30 - 54 - (4) >30 and £35 (5) 36 or above 40 Education (1) High school or below (2) Two-year college (3) Four-year college (4) Graduates school or above 41 Occupation (1) Corporate (2) Government (3) Education (4) Student (5) Others 42 Monthly income (1) £VND 3,000,000 (2) >VND 3,000,000 – £VND 5,000,000 (3) >VND 5,000,000 – £VND 10,000,000 (4) >VND 10,000,000 43 Online payment experience (years) (1) Never (3) >5 and £10 (2) >0 and £5 (4) >10 Your participation in the research is completely voluntary and that participants may choose to stop participating any time Indicate that a participant’s decision not to continue participating will not influence their relationship or the nature of their relationship with researcher either now or in the future Participants’ signature/name Date Phone number (final five digits in your mobile phone number) - 55 - ... trust toward online retailers an important factor in the reluctance of Vietnamese in online payment? 4) Is perceived risk an important factor in the reluctance of Vietnamese in online payment? 5)... benefit of customers that are central in determining online shoppers’ reluctance to -9- pay online (Dou, 2004) Whether if these barriers affecting consumers’ reluctance are eliminated, online payment. .. contrary, online payment contains many risks which make online shoppers’ reluctance to use this method Most of the risks in online payment arise from the difficulty of mutual verification between online