Factors affecting customers intention to use sredit card

UNIVERSITY OF ECONOMICS – HO CHI MINH CITY International School of Business Mai Viet Dung FACTORS AFFECTING CUSTOMER’S INTENTION TO USE CREDIT CARD Evidence from Vietnam MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS – HO CHI MINH CITY International School of Business Mai Viet Dung FACTORS AFFECTING CUSTOMER’S INTENTION TO USE CREDIT CARD Evidence from Vietnam ID: 22120009 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Tran Phuong Thao Ho Chi Minh City – Year 2014 DEDICATION To my loving family and friends who support me a lot in my life, study, and work ACKNOWLEDGEMENTS Composing this master thesis is a long journey with many unexpected ups and downs; thanks to my great family, good friends, colleagues, and resourceful supervisor, I have accomplished this goal I am blessed beyond all measures, and I just want to say thank you I wish to extend special thanks to my supervisor, Dr Tran Phuong Thao, for all your time, advice, comments, and encouragement I could not have even imagined how I would have completed this thesis without your support Also, I would like to thank Dr Nguyen Dinh Tho, Dr Nguyen Thi Mai Trang, and Dr Dinh Thai Hoang, who all provide me initial foundation of research design as well as data analysis To the ISB research committee, I am thankful for your time, comments, and kind words that helped me through this process To my friends at Master of Business program – International School of Business, thank you for your friendship, your laughter, and all the time we have together It made the life of a business post graduate a pleasure Finally, to my parents and sister, thank you for teaching me the importance and value of education You are the most supportive force of all; I am grateful to you for your constant support, love, encouragement, faith, and belief in me ABSTRACT Vietnam’s credit card payment market has become one of the most rapidly growing markets in emerging world; however, there is a paucity of studies about behavioral intention in the context of credit card and especially in Vietnam The Theory of Reasoned Action (TRA) was used as the foundational model in order to develop a modified model reflecting intention to use credit card in the thesis Specifically, the relationships among six factors – attitude towards using credit card, perceived financial cost, social influence, perceived credibility, information about credit card, and materialism – and customer’s intention to use credit card were examined Results suggest that attitude towards using credit card, social influence, and information about credit card are important determinants to predict Vietnamese bank customer’s intention to use credit card Key words: credit card, intention to use, TRA, Vietnam TABLE OF CONTENT ACKNOWLEDGEMENTS ABSTRACT LIST OF FIGURES LIST OF TABLES ABBREVIATIONS CHAPTER - INTRODUCTION 1.1 Background of study 1.2 Research problem 1.3 Research objective and research questions 1.4 Scope of research 1.5 Research significance 1.6 Structure of the thesis CHAPTER - LITERATURE REVIEW, HYPOTHESES AND CONCEPTUAL MODEL 2.1 Foundational theories 2.1.1 Theory of Reasoned Action (TRA) 2.1.2 Theory of Planned Behavior (TPB) 2.2 Customer’s intention to use credit card 2.3 Attitude and customer’s intention to use credit ca 2.4 Perceived financial cost and customer’s intention 2.5 Social influence and customer’s intention to use c 2.6 Perceived credibility and customer’s intention to 2.7 Information about credit card and customer’s int 2.8 Materialism and customer’s intention to use cred 2.9 Conceptual model 2.10 Chapter summary CHAPTER – RESEARCH METHODOLOGY 3.1 Research process 3.2 Measurement 3.2.1 Measurement scale 3.2.2 Pilot test 3.3 Sampling and Data collection 3.3.1 Minimum sample size 3.3.2 Data collection 3.4 Data analysis 3.4.1 Reliability measure 3.4.2 Exploratory factor analysis (EFA) 3.4.3 Multiple regression analysis 3.5 Chapter summary CHAPTER – DATA ANALYSIS AND RESULTS 4.1 Profile of respondents 4.2 Assessment measurement scale 4.2.1 Reliability scores 4.2.2 Exploratory factor analysis (EFA) 4.3 Correlation 4.4 Hypothesis testing by multiple regression 4.4.1 Checking assumptions of multiple regressio 4.4.2 Testing hypotheses of conceptual model 4.5 Chapter summary CHAPTER – CONCLUSION, IMPLICATIONS, AND FURTHER STUDIES 5.1 Key findings and discussion 5.2 Implications 5.2.1 Theoretical implications 5.2.2 Managerial implications 5.3 REFERENCES Limitations and suggestions for future research APPENDICES Appendix A: Questionnaire (English - Vietnamese version) Appendix B: KMO and Bartlett’s Test Appendix C: Testing multiple regression assumptions LIST OF FIGURES Page Figure 2.1: The Theory of Reasoned Action Figure 2.2: The Theory of Planned Behavior 10 Figure 2.3: Conceptual Model 19 Figure 3.1: Research process 22 LIST OF TABLES Page Table 3.1: Scale Items 24 Table 4.1: Profile of respondents 30 Table 4.2: Total Cronbach’s alpha 32 Table 4.3: Cronbach’s alpha, SCR, AVE for each variable 32 Table 4.4: Total variance explained 35 Table 4.5: Rotated Component Matrix 36 Table 4.6: Summarized Factor analysis 37 Table 4.7: Bivariate Correlation 38 Table 4.8: Regression Analysis Model 40 Table 4.9: Hypotheses results 42 57 Lin, W., Wang, Y., Yang, F., & Sekarini, N S (2013) The effect of credit card on the compulsive buying behavior intention Journal of Accounting, Finance & Management Strategy, 8(2), 45-74 Luarn, P., & Lin, H.H (2005) Towards an understanding of the behavioral intention to use mobile banking Computers in Human Behavior, 21(6), 873-891 Mansor, N., & Che-Mat, A (2009) Islamic credit card: are demographic factors a good indicator Asian Social Science, 5(12), 17-26 Mathieson, K., Peacock, E., & Chin, W.W (2001) Extending the technology acceptance model: the influence of perceived user resources DATABASE for Advance in Information System, 32(3), 86-112 Nasri, W (2011) Factors influencing the adoption of internet banking in Tunisia 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you got any credit cards currently? 14 Credit card is beneficial 15 Using Credit card is wise 16 I like borrowing money Part 4: Perceived financial cost 17 The total fee of using credit card is higher than Part 2: Materialism using other methods of payment 18 The credit card issuers charge me lot of money in case of late making monthly payment 19 Credit card monthly installment is cost burden to me Part 3: Attitude towards credit card 11 It is a good idea to have something now and pay for it later 12 Having credit card is a good idea 13 I have positive perception on credit card Strongly Disagree 1 1 1 1 1 1 1 1 1 Part 5: Social Influence 20 People who are important to me think that I should use credit cards People who are familiar with me think that I should 21 22 use credit cards 23 Most people surrounding with me use credit cards 24 People whose opinion I value think I should use credit cards People who influence my behavior think that I should use credit cards Part 6: Perceived Credibility 25 I believe my information is kept confidential when using credit cards 26 I believe my transactions are secured when using credit cards 27 I believe my privacy would not be divulged when using credit cards 28 I believe the banking environment is safe Part 7: Amount of information about credit card 29 I have generally received enough basic information about credit cards 30 Icredit received enough information about the promotion of cards 31 Iitsobtained information on credit cards via the bank and management Part 8: Intention to use credit card 32 My general intention to use a credit card is very high 33 I will think about using a credit card 34 I will use a credit card in the future Part 9: Demographics information 35 What is your gender? 36 What is your age? 37 What is your marital status? 38 What is your highest level of education completed? 39 What is your monthly income? (1) (2) Male (1) 18-29 (2) (3) (4) (1) 30-39 (2) (3) Married (1) (2) (3) Highschool (1) (2) (3) (4) Below 4.5m VND Female 40-49 50 and above Single Separated University/College Advanced Degree From 4.5m VND to below 7.5m VND From 7.5m VND to below 15m VND 15m VND and above KHẢO SÁT VỀ Ý ĐỊNH SỬ DỤNG THẺ TÍN DỤNG Tơi học viên cao học Trường Đại họ c Kinh tế TPHCM thực nghiên cứu y ếu tố ảnh hưởng đến ý định sử dụng thẻ tín dụng khách hàng Việt Nam Rất mong nhận cộ ng tác Anh/Chị việc trả lời nhữ ng câu hỏi khảo sát bên Mọi thông tin thu thập nhằm mục đích phục vụ nghiên cứu tuân thủ nguyên tắc bảo mật cá nhân Vui lòng khoanh tròn lựa chọn mà Anh/Chị cho với để trả lời bảng khảo sát Chân thành cám ơn! 10 11 Bạn có sử dụng thẻ tín dụng khơng? Tơi thán phục/ngưỡng mộ người sở hữu nhà/xe/trang phục… đắt tiền Những vật phẩm sở hữu thể thành công sống (ở chừng mực đó) Tơi thích sở hữu vật phẩm gây ấn tượng với người khác Tôi nỗ lực làm cho sống tốt thơng qua việc sở hữu tài sản Mua sắm làm cảm thấy hứng thú Tơi thích sống với vật phẩm giá trị, xa hoa Cuộc sống tốt tơi sở hữu thứ mà tơi khơng có Tơi cảm thấy hạnh phúc mua sắm nhiều vật phẩm Th ỉnh thoảng tơi cảm thấy khó chịu/bứt rứt khơng đủ khả tài để đồ tơi thích "Mua trước, tốn sau" ý tưởng hay 13 Sở hữu thẻ tín dụng ý kiến hay Nói chung Tơi có nhận thức/ấn tượng tốt thẻ tín dụng 14 Thẻ tín dụng tiện lợi 12 15 16 17 Sử dụng thẻ tín dụng người tiêu dùng thơng thái Tơi thích vay/mượn tiền để trang trải nhu cầu trước mắt Tổng chi phí để sử dụng thẻ tín dụng cao so với chi phí sử dụng phương thức toán khác Các đơn vị phát hành thẻ tín dụng tính phí phạt cao 18 19 20 21 người sử dụng toán số dư hàng tháng khơng hạn Việc tốn số dư thẻ tín d ụng hàng tháng gánh nặng tài tơi Những người quan trọng tơi nghĩ tơi nên dùng thẻ tín dụng Những người thân thiết nghĩ tơi nên dùng thẻ tín dụng Rất khơng đồng ý 1 1 1 1 1 1 1 1 1 1 22 23 24 25 Những người có ảnh hưởng đến định nghĩ nên dùng thẻ tín dụng Nhiều người xung quanh tơi sử dụng thẻ tín dụng Những người mà tơi đánh giá cao ý kiến họ nghĩ nên dùng thẻ tín dụng Tơi tin sử dụng thẻ tín dụng thơng tin tơi giữ bí mật 26 27 28 Nói chung tơi có đủ thơng tin thẻ 29 tín dụng (tính năng, tiện ích, điều kiện mở thẻ, điều khoản sử dụng thẻ…) 30 Tôi nhận đầy đủ thơng tin chương trình khuyến thẻ tín dụng Tơi nhận thơng tin thẻ tín dụng từ ngân hàng 31 32 cán giao dịch 33 34 Nói chung ý định sử dụng thẻ tín dụng tơi chắn Tôi suy nghĩ việc sử dụng thẻ tín dụng Trong tương lai Tơi dùng thẻ tín dụng Thông tin cá nhân người trả lời khảo sát: 35 Giới tính 36 Tuổi 37 Tình trạng nhân 38 Trình độ học vấn cao 39 Thu nhập hàng tháng anh/chị Appendix B: KMO and Bartlett’s Test Table B1: KMO and Bartlett’s Test for independent variables Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Table B2: KMO and Bartlett’s Test for dependent variables Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Appendix C: Testing multiple regression assumptions Figure C1: Histogram of standardize residual Figure C2: Normal P-P plot of standardize residual Figure C3: Scatterplot Case Number Std Residual INTENTION Predicted Value Residual 15 210 a Dependent Variable: INTENTION Table C1: Casewise Diagnostics ... credit card, and materialism statistically affect customer’s intention to use credit card? Question 2: If yes, to what extent how these factors affect customer’s intention to use credit card? ... customer’s intention to use credit card Hypothesis 3: Social influence has a positive effect on customer’s intention to use credit card 2.6 Perceived credibility and customer’s intention to use. .. 2.2 Customer’s intention to use credit card 2.3 Attitude and customer’s intention to use credit ca 2.4 Perceived financial cost and customer’s intention 2.5 Social influence and customer’s intention