Critical factors affecting the customers intention to use e retailing

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business - Dang Duy Thanh CRITICAL FACTORS AFFECTING THE CUSTOMERS’ INTENTION TO USE E-RETAILING MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business - Dang Duy Thanh CRITICAL FACTORS AFFECTING THE CUSTOMERS’ INTENTION TO USE E-RETAILING ID: 22120030 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Cao Hao Thi Ho Chi Minh City – Year 2014 ACKNOWLEDGEMENT I would like to express my deep gratitude to everyone who helped and guided me through the entire MBA program Foremost, I would like to express my sincere thanks to my supervisor Dr Cao Hao Thi for the continuous support for my MBA thesis and research, for his patience, motivation, enthusiasm, and immense knowledge His guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisor and mentor for my MBA study I am grateful to thank Prof Nguyen Dinh Tho and the International School of business (ISB) not only because they had built this extremely practical and helpful program but also the way Prof Tho and ISB supported me during my MBA time I also would like to extent my appreciation to my dear classmates Together we have had lots of wonderful new experiences in learning and building social network Last but not least, I would like to express my special gratitude to my family for their endless encouragement and support through my life i Abstract During the last decade of the 21st century, internet shopping had grown in a surprising speed With the fast development in internet and technology, people are no longer need to go out for their shopping since they can use e-retailing for almost everything they need Although eshopping has its huge potential to even replace the traditional way of shopping, it has its own problem It is when people only use website for reference, and then they come directly to the physical store to pick up their items This research is conducted to find out the critical factors that can measure the customers’ intention to use e-retailing From several studies about this topic, especially the theory of reasoned action (TRA), there are four factors may affect to the customer’s intention They are trust, subjective norm, website quality and perceived risk in using credit card In order to conduct the research, a sample size of 150 questionnaire about clothing products are collected with respondents are office employees in Ho Chi Minh city Then, the data are analyzed by reliability test, EFA and multiple regression analysis Result of the thesis shows that the customers’ intention to use e-retailing is impacted only by trust and subjective norm Therefore, it is suggested that owners of the business should try to gain trust of their customers and encourage people to shop by groups Since this research only focused in fashion products in Ho Chi Minh city, furthers studies in this field should be conducted for other types of products and in other provinces in Vietnam to find out the general model for Vietnamese e-retailing Keywords: intention to use, TRA, e-retailing ii Acknowledgement Abstract Chapter 1_INTRODUCTION 1.1 Research background 1.2 Problem statement 1.3 Research objectives 1.4 Research questions 1.5 Research scope 1.6 Research significant 1.7 Research structure Chapter 2_LITERATURE REVIEW 2.1 E-retailing 2.2 Customers’ intention to use e-r 2.3 Factors impact to the customer 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 Chapter 3_ RESEARCH METHODOLOGY 3.1 Research process 3.2 Measurement scale of factors 3.3 Pilot test 3.4 Data collection 3.5 Data analysis method iii Chapter 4_ DATA ANALYSIS 4.1 Descriptive statistics 4.2 Reliability test 4.3 Validity test 4.4 Multiple regression analysis 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 Chapter 5_ CONCLUSION AND RECOMMENDATIONS 5.1 Research findings 5.2 Managerial implications 5.3 Limitations and further researc REFERENCES APPENDICES iv LIST OF FIGURES Figure 2.1 The theory of reasoned action (TRA) Figure 2.2 Research model Figure 3.1 Research process Figure 4.1 Scatter plot of residuals Figure 4.2 Histogram of regression standardized residuals Figure 4.3 Normal P-P plot of regression standardized residuals Figure 4.4 Result of testing model LIST OF TABLES Table 2.1 Dimensions of e-retailing quality Table 3.1 Scale items of factors Table 4.1 Distribution of survey respondents Table 4.2 Results of reliability test Table 4.3 KMO and Bartlett's Test Table 4.3 Total variance matrix Table 4.5 EFA result – Rotated component matrix Table 4.6 Coefficient table of multiple regression Table 4.7 Model summary of regression analysis Table 4.8 ANOVA result in regression analysis Table 4.9 Results of multiple regression analysis Table 4.10 ANOVA for Gender Table 4.11 ANOVA for Age Table 4.12 ANOVA for Income v ABBPREVIATION ANOVA Analysis of variance COD Cash on delivery EFA Exploratory factor analysis IRQ Internet retailing quality KMO Kaiser-Mayer-Olkin TRA Theory of reasoned action vi Chapter INTRODUCTION 1.1 Research background E-retailing, also known as online shopping, internet shopping or e-shopping, can be explained as an electronic commerce when buyers and sellers virtually meet others through a web browser Unlike traditional shops that require physical locations, physical security services and specific timeframes to operate, internet shops need none of those requirements Customers can access to the shop from anywhere and anytime they like as long as they have internet connection and an appropriate device like a computer, a tablet or a smartphone Since people are more and more busy with their job and internet has been widely and easily accessible, eretailing has “redefined business and customer relationships, business processes, even sometimes restructuring the whole industry by providing new distribution channel, new delivery methods, new payment methods and new medium for communication” (Dogerlioglu and Cosgun, 2012) People had forecasted that in 2014 US e-retailing business can earn up to $291 billion dollars in sale (Trends & Data - Internet Retailer) With the tremendous opportunity to grow and a very promising market to exploit, eretailing has been attracting many scholars and experts to make researches in order to become successful in this new method of selling products As the results of that, many factors had been explored to contribute to a successful online business In 2009, Liao and Shi found that in Hong Kong market, where people tend to shop in groups, social influence should be a big factor that influence on the shopping behavior Even internet retailing does not require people to go out for shopping, owners of the e-retailing business still need to think of ways like spreading information as wide as possible, focusing on group buying, encouraging groupbuying activities, etc Another research about internet shopping in Malaysia showed that one of the most important factors that lead to the customers’ intention is their attitude towards e-retailing (Ting & Lim, 2012) In that research, the authors also highlighted the easiness, usefulness and effortless when customers interact with the web pages can create the favorable shopping intention Besides the attitude towards e-retailing, Gefen, Karahanna and Straub (2003) added that customers’ trust played a significant role in increasing customers’ intention to shop online They also proved that trust in e-vendor can be gained when people know that shop owners earn nothing more by cheating, a shop is safe to make transaction and the website is optimized to be friendly and easy to use As mentioned above, since e-retailing has been developed with a rocket speed, there are thousands of researches have been made only for gaining customers’ intention towards internet shopping However, not many of them were made specifically for Vietnamese market Therefore, it is an interesting topic to discover and study 1.2 Problem statement In Vietnam, although traditional retailing is still playing a significant role, internet shopping has been developed so rapidly and become more important According to Phan (2013), 36% of Vietnamese people are using internet and they generated a 700 million US dollars in revenue for e-retailing Although e-shopping only accounted for 0.3 to 0.5% of the total retailing revenue in Vietnam (according to Green Global, 2013), it can increase up to times - 1.3 billion US dollars in 2015 (according to the Ministry of Industry and Trade) However, internet shopping has its own problem It is because many of the internet users only go to the websites to find information, the price and comments about the products but they hesitate to make the paying transaction or products reservation (Ting & Lim, 2012) Vietnamese customers would rather go direct to the shop and buy the things they saw on web As the result of that, e-shopping as they know is nothing but an advertising or 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sinh viên lớp MBUS - chương trình đào tạo thạc sĩ quản trị kinh doanh, trường Đại học Kinh Tế, thành phố Hồ Chí Minh Thơng tin liên lạc: 0973 006 072 - Email: thanhdang.234@gmail.com Đề tài nghiên cứu: Những nhân tố định đến dự định mua hàng thông qua kênh bán lẻ trực tuyến người tiêu dùng Thông tin người làm khảo sát Bạn vui lịng đánh dấu vào tương ứng với lựa chọn Xin bạn vui lịng cho biết giới tính * Nam Nữ Xin bạn vui lịng cho biết độ tuổi * 18-22 23-30 30-40 Trên 40 50 Xin bạn vui lòng cho biết mức thu nhập hàng tháng * Dưới triệu đồng Từ đến triệu đồng Từ đến 15 triệu đồng Trên 15 triệu đồng Thái độ bạn nhà bán lẻ trực tuyến việc mua sắm online Với câu hỏi bên dưới, bạn vui lịng đánh dấu vào tương ứng với quan điểm thang đo chia thành phần với mức từ không đồng ý đến đồng ý 1/ Theo bạn, trang bán lẻ trực tuyến cung cấp cho người tiêu dùng thông tin đáng tin cậy sản phẩm (về nguồc gốc xuất xứ, chế độ bảo hành, chế độ đổi/trả, ) * Rất không đồng ý 2/ Theo bạn, nhà bán lẻ trực tuyến quan tâm đến hài lịng người mua hàng * Rất khơng đồng ý 51 3/ Theo bạn, hầu hết nhà bán lẻ trực tuyến đáng tin cậy (giao hàng hẹn, mặt hàng quảng cáo, bảo hành đổi sản phẩm xảy lỗi bên cung cấp/sản xuất, ) * Rất không đồng ý 4/ Theo bạn, hầu hết nhà bán lẻ trực tuyến có đủ khả đáp ứng nhu cầu người mua hàng (sản phẩm đa dạng, nhiều mẫu mã, kích cỡ, ln có sẵn hàng, ) * Rất không đồng ý 5/ Hầu hết bạn bè đồng nghiệp bạn cho mua sắm trực tuyến thật tốt tiện dụng.* Rất không đồng ý 6/ Rất nhiều bạn bè đồng nghiệp gợi ý cho bạn mua sắm thông qua shop bán hàng trực tuyến * Rất không đồng ý 52 7/ Rất nhiều bạn bè đồng nghiệp bạn thường xuyên mua hàng thông qua trang bán hàng trực tuyến * Rất không đồng ý 8/ Theo bạn, website cửa hàng trực tuyến thường dễ sử dụng * Rất không đồng ý 9/ Theo bạn, tốc độ tải trang web cửa hàng trực tuyến thường nhanh * Rất không đồng ý 10/ Theo bạn, danh mục chi tiết cuả sản phẩm liệt kê rõ ràng website nhá bán lẻ trực tuyến * Rất không đồng ý 53 11/ Theo bạn, website shop bán hàng qua mạng thường thiết kế bắt mắt.* Rất không đồng ý 12/ Bạn thấy website cửa hàng bán lẻ trực tuyến thường có thêm phiên với giao diện tối ưu hố cho điện thoại thơng minh máy tính bảng * Rất khơng đồng ý 13/ Theo bạn, sử dụng thẻ tín dụng giao dịch trực tuyến khiến bạn chịu nhiều chi phí dự kiến (vi dụ số cửa hàng tính thêm phí giao dịch qua thẻ) * Rất khơng đồng ý 14/ Bạn thường lo lắng tình trạng tài tương lai sử dụng thẻ tín dụng để mua sắm qua mạng * Thẻ tín dụng hay cịn gọi credit card loại thẻ mà chủ thẻ phép sử dụng trước, trả tiền sau mà không chịu lãi suất khoảng thời gian định Tuy nhiên hạn tốn mà chủ thẻ khơng trả tiền vay lãi suất phải chịu cao, nhiều lần so với lãi suất cho vay thông thường 54 Rất không đồng ý 15/ Bạn lo lắng sử dụng thẻ tín dụng hệ thống ngân hàng trục trặc lúc giao dịch làm bạn tiền chịu thêm khoản chi phí phát sinh khơng đáng có * Rất khơng đồng ý 16/ Bạn dự định tương lai tiếp tục mua sản phẩm từ nhà bán lẻ trực tuyến * Rất không đồng ý 17/ Bạn truy cập vào website shop bán hàng trực tuyến có nhu cầu mua sắm * Rất khơng đồng ý 55 18/ Bạn có kế hoạch mua sắm nhiều thơng qua cửa hàng trực tuyến thay mua hàng theo cách truyền thống * Rất không đồng ý 19/ Theo bạn, có nhiều khả bạn mua nhiều sản phẩm khác từ shop bán hàng trực tuyến * Rất không đồng ý Kết thúc bảng khảo sát yếu tố tác động đến dự định mua sắm online người tiêu dùng Cảm ơn bạn nhiều giúp tơi hoàn thành khảo sát 56 Appendix 3: Interview respondents about the two unsupported hypotheses Website quality does not impact to the customers' intention to use e-retailing Number Interviewee Tuong Hai Vinh Le Thi Thuy Nhung Dang Thi Tuyet Loan Perceived risk in using credit card does not impact to the customers' intention to use e-retailing Number Interviewee Tuong Hai Vinh Le Thi Thuy Nhung Dang Thi Tuyet Loan 57 ... this research aims to: - Identify critical factors affecting customers? ?? intention to use e- retailing - Identify the level in which each factors affecting customers? ?? intention to use e retailing. .. to use e- retailing and factors that affecting the customers? ?? intention to use e- retailing 2.1 E- retailing Blooming since the last decade of the 20th century, internet had been developed by an exponential... 2.3 Factors impact to the customers? ?? intention to use e- retailing 2.3.1 Research model Based on the TRA model and other researches that explained the customers? ?? intention toward a behavior, the