The effect of perceived web quality on e marketplace trust a case of vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY TRAN ANH QUAN THE EFFECT OF PERCEIVED WEB QUALITY ON E-MARKETPLACE TRUST: A CASE OF VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 16115034 \ RESEARCH SUPERVISORS: DR MAI ANH PROF DR MOTONARI TANABU Hanoi, 2018 ABSTRACT Vietnam recently has witnessed a rapid rise in e-commerce Based on the logic that web quality is important in a self-service environment It is important to understand the impact of web quality to customers’ trust In this study, the effect of web quality is tested in relation with trust in Vietnam e-commerce context The purpose of this study is to answer two questions, whether or not web quality has an impact on customers’ trust And in the sub-dimensions of web quality, which would have the biggest impact The finding is highly practical and applicable for Vietnamese firms or foreign firms that are wanting to build an e-commerce business in Vietnam ACKNOWLEDGEMENT This study cannot be finished without the tremendous help from individuals and institutions First of all, I would like to express my gratitude toward Vietnam Japan University and JICA for providing unparalleled facilities and opportunities to study and gather knowledge in incredible environments Furthermore, I would like to give a big thanks to the two wonderful advisors Professor Motonari Tanabu and Doctor Mai Anh for giving me invaluable knowledge on researching However, this thesis can never be completed without the help from teachers from Vietnam Japan University and friends Last but not least, I would like to give my biggest gratefulness to the support from my family, helping me to take the chance I got and supported me regard of the decisions I made Tran Anh Quan TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES INTRODUCTION CHAPTER 1: Literature Review 1.1 E-marketplace 1.2 Web quality .4 1.3 Trust 1.4 Website adoption .7 1.5 The gap in literature of web quality on trust .9 CHAPTER 2: Research model and data collection 10 2.1 Research model and Hypotheses .10 2.1.1 Web quality 10 2.1.2 Technical quality 11 2.1.2 General Content quality 11 2.1.4 Specific content quality 12 2.1.5 Appearance quality 13 2.2 Data collection 13 2.2.1 Data collection method 13 2.2.2 Questionnaire design 14 2.2.3 Data collection process 16 2.2.4 Data analysis procedure 16 CHAPTER 3: Analysis and results 18 3.1 Data preparation 18 3.2 Characteristics of participants 18 3.3 Data Analysis and Results .20 3.3.1 Choosing acceptance level for criteria .20 3.3.2 Data analysis 20 3.3.3 Model testing 25 CHAPTER 4: DISCUSSION, LIMITATIONS AND FUTURE RESEARCH 27 4.1 Discussion .27 4.2 Limitations and future research .29 CONCLUSION 30 REFERENCES 31 APPENDICES LIST OF TABLES Table 3.1 Frequency table of the participants profile 19 Table 3.2 Summary of criteria for evaluating measurement models 20 Table 3.3 Descriptive statistics and reliability, correlation 23 Table 3.4 Regressions results 25 LIST OF FIGURES Figure 2.1 Proposed research model 10 Figure 3.1 Regression results 26 INTRODUCTION Rationale and objective of this research For the recent years, Vietnam has witnessed a big and steady rise in the number of people using internet On 4/4/2017, Mr Hoang Phuoc Thuan, Head of National Security, Department of Internet Security, Ministry of Public Security announced in World Security Conference 2017, Vietnam had 58 million people using the internet, increased 6% compared to 2016, placed itself in the top 30 countries in the world with the most IPv4 addresses (Minh, 2017) And with the great increasing number of internet users, economists also predict the increasing usage of E-commerce Based on the analysis of Vietnam E-commerce Association (VECOM) in 2017, Vietnam’s E-commerce has risen by more than 25% and would continue this trend from 2018 to 2020 Furthermore, the revenue for E-commerce websites also increased by 35% However, with big potential, comes great competition, many companies have to withdraw from Vietnam market due to fierce competition For example, Zalora, a big e-retailer who had business in many countries of South East Asia like Vietnam, Thailand, Indonesia, Philippines had to shut down in Vietnam market in 2016, before that, many players also disappeared from Vietnam market as well, for example: Deca.vn, Beyeu.com, Lingo.vn, etc (My, 2017) There are of course numerous factors affecting the success of an E-commerce company, among them having great rate of usage is an important factor (DeLone & McLean, 2016) And within many factors that can have an effect on the usage of a service, trust is one of them (Lu, Yang, Chau, & Cao, 2011) From long before and even until recently, the role of trust in business in general and E-commerce in particular has been a wanted subject for researchers, many research has been conducted in the name of this subject (Gefen, 2000; Hallikainen & Laukkanen, 2018; Gefen, 2003) However, in Vietnam market, the lack of trust is still a fence that wards off customers from using E-commerce services, according to Azhar Bin Adnan - chief marketing officer of Vietnam for leading US based CMC Telecom (The voice of Vietnam, 2017) Thus, studying about trust in E-commerce environment is still viable for Vietnamese researchers To increase the level of trust from customers, from the firm’s perspective, one must understand the antecedents of trust in E-commerce (San-Martín & Camarero, 2012) proposed a model including factors that affect trust in E-commerce shopping context, including web design as one of the factors Moreover, (Teo & Liu, 2007) also states that website assurance and Integration also have effect on trust And while they seem to be separated, web design, assurance and integration are features of website quality (Aladwani & Palvia, 2002) In other word, Website quality has an influence on customer’s trust To prove this point further, Hwang & Kim (2007) did found perceived website quality has influence on customers’ trust after analyzing the data given by 325 students in north of the U.S Moreover, (Pennington, Wilcox, & Grover, 2003) said that one of the main questions in building e-trust is how to build and design the website to enhance the trust of a potential online customer, which means researching on how Web quality would affect customer’s trust in Vietnam is important This study aims to explore: (1) Whether or not perceived Website quality whose components are technical quality, general content quality, specific content quality, appearance quality (Aladwani, 2006) influents customer’s Trust in Vietnam E-commerce context (2) In different components of Website quality, which has the most significant impact on customer’s trust Based on the result of this study, firms can analyze and customize their website to fit better with Vietnamese’s preference Scope of the study This study investigates the effect of perceived web quality on perceived emarketplace trust In some countries, such as Jordan (Al-Debei, Akroush, & Ashouri, 2015), North America (Hwang & Kim, 2007) or Malaysia (Nilashi, Jannach, Ibrahim, Esfahani, & Ahmadi, 2016), web quality has significant positive impact on customers’ trust in E-commerce However, the similar case in Vietnam is unclear So, the geographical scope of this study will be in Vietnam The data of this study is collected in May 2018, concluded the time scope for this study is within the year of 2018 itself Structure of the study This study will be presented as follow: In the beginning of the study, the author will introduce the rationale, research questions and scope of the study In chapter 1, literatures support for the study’s theoretical foundation will be promptly presented Next, research model and hypotheses will be followed Chapter will be about research methodology Chapter will have data analyzing results presented, Chapter will have discussion, limitations and implication Lastly, the conclusion of this study will be presented CHAPTER 1: LITERATURE REVIEW 1.1 E-marketplace E-marketplace (EMP) is an online environment on the internet where different buyers and sellers play as market players to exchange goods and services by electronic means (Giovanoli, Pulikal, & Grivas, 2014) E-marketplace is often divided into four categories, “private marketplace”, “public marketplace”, “consortia marketplace” and “community marketplace” (Sundareswaran, Squicciarini, & Lin, 2012) Private marketplaces are usually owned by one company, with function is to connect a set of limited pre-qualified buyers or sellers Public marketplace, also called independent marketplace or open marketplace, is the type of marketplace which there is little qualification requirements Public marketplaces are owned by a neutral third party, such as Lazada group or Ebay Consortia marketplace is owned by several large buyers and sellers or joined industry leaders Convisint, originally owned by Ford, GM and DaimlerChrysler, is probably a well-known example of consortia marketplace These marketplaces are usually open to other equity partners after setting up their initial foundation (Wang & Archer, 2007) And lastly, there is community marketplace, which is owned by multiple players from different background There are three main functions of EMP, matching buyers and sellers, facilitate exchanges of good, information, services, associate payment and providing adequate infrastructure to keep the market function efficiently (Giovanoli et al., 2014), with the first being the major role for EMP, while the second and the third are also very important to keep EMP run smoothly 1.2 Web quality Perceived web quality refers to the quality and overall performance of an online shopping web site, and it is a measure of the extent to which the web site design and processes are simple, smooth, reliable, and effective (Petter, DeLone, & McLean, 2008) In the area of IS, there has been quite a number of research about Web Promises made by those websites are likely to be reliable I not doubt the honesty of those websites I expect that those websites will keep promises they make INT1 INT2 Those websites understand the market they work in Those websites know about products Those websites know how to provide excellent service ABI1 ABI2 ABI3 INT3 Appendix 2: Outliers explore analysis 40 41 42 Appendix 3: KMO and Bartlett's Test Before omitting inadequate variables KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square 0.852 2790.620 df Sig 465 0.000 After omitting inadequate variables KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square 0.846 2495.392 df Sig 378 0.000 Appendix 4: Rotated components matrix Rotated component matrix before omitting cut-off variables TQ1 TQ2 TQ3 TQ4 TQ5 TQ6 TQ7 GCQ1 GCQ2 GCQ3 GCQ4 GCQ5 SCQ1 0.658 0.705 0.692 0.572 0.661 0.646 0.591 Rotated Component Matrixa Component 0.764 0.753 0.560 0.519 43 SCQ2 0.790 SCQ3 0.554 SCQ4 0.733 SCQ5 0.601 AQ1 0.708 AQ2 0.751 AQ3 0.741 AQ4 0.735 AQ5 BEN1 0.748 BEN2 0.799 BEN3 0.792 INT1 0.781 INT2 0.721 INT3 0.765 ABI1 ABI2 ABI3 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization.a a Rotation converged in iterations 0.607 0.792 0.580 Rotated component matrix after omitting cut-off variables TQ1 TQ2 TQ3 TQ4 TQ5 TQ6 TQ7 GCQ3 GCQ4 GCQ5 SCQ1 SCQ2 SCQ3 SCQ4 SCQ5 0.661 0.704 0.692 0.567 0.667 0.652 0.592 Rotated Component Matrixa Component 0.726 0.734 0.566 0.555 0.790 0.590 0.737 0.606 44 AQ1 AQ2 AQ3 AQ4 BEN1 0.765 BEN2 0.802 BEN3 0.799 INT1 0.785 INT2 0.735 INT3 0.785 ABI1 ABI2 ABI3 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization.a a Rotation converged in iterations 0.702 0.780 0.743 0.740 0.637 0.786 0.588 Appendix 5: Reliability analysis Technical quality reliability analysis Reliability Statistics Cronbach's Alpha 0.810 TQ1 TQ2 TQ3 TQ4 TQ5 TQ6 TQ7 Scale Mean if Item Deleted 22.61 22.14 22.65 22.93 22.38 22.55 23.09 Cronbach's Alpha Based on Standardized Items 0.813 Item-Total Statistics Scale Corrected Variance if Item-Total Item Deleted Correlation 13.371 0.580 12.521 0.612 12.606 0.593 13.301 0.444 12.644 0.589 12.188 0.569 13.100 0.463 N of Items Squared Cronbach's Multiple Alpha if Item Correlation Deleted 0.357 0.782 0.481 0.774 0.428 0.777 0.250 0.803 0.467 0.778 0.393 0.782 0.265 0.800 45 General content quality reliability analysis Reliability Statistics Cronbach's Alpha 0.725 GCQ3 GCQ4 GCQ5 Cronbach's Alpha Based on Standardized Items 0.729 Item-Total Statistics Scale Mean Scale Corrected if Item Variance if Item-Total Deleted Item Deleted Correlation 6.86 1.888 0.583 6.71 1.962 0.584 7.34 1.897 0.481 N of Items Squared Cronbach's Multiple Alpha if Item Correlation Deleted 0.364 0.594 0.363 0.597 0.232 0.724 Specific content quality reliability analysis Reliability Statistics Cronbach's Alpha 0.814 SCQ1 SCQ2 SCQ3 SCQ4 SCQ5 Scale Mean if Item Deleted 14.25 14.53 14.21 14.47 14.20 Cronbach's Alpha Based on Standardized Items 0.815 Item-Total Statistics Scale Corrected Variance if Item-Total Item Deleted Correlation 7.198 0.559 6.679 0.618 6.809 0.655 6.638 0.604 7.180 0.584 N of Items Squared Cronbach's Multiple Alpha if Item Correlation Deleted 0.357 0.791 0.393 0.774 0.435 0.763 0.404 0.779 0.358 0.784 46 Appearance quality analysis Reliability Statistics Cronbach's Alpha 0.800 AQ1 AQ2 AQ3 AQ4 Scale Mean if Item Deleted 11.16 11.21 10.98 10.96 Cronbach's Alpha Based on Standardized Items 0.802 Item-Total Statistics Scale Corrected Variance if Item-Total Item Deleted Correlation 3.249 0.568 2.839 0.638 3.142 0.675 3.392 0.582 N of Items Squared Cronbach's Multiple Alpha if Item Correlation Deleted 0.325 0.771 0.416 0.740 0.462 0.721 0.353 0.765 Benevolence reliability analysis Reliability Statistics Cronbach's Alpha 0.840 BEN1 BEN2 BEN3 Cronbach's Alpha Based on Standardized Items 0.845 Item-Total Statistics Scale Mean Scale Corrected if Item Variance if Item-Total Deleted Item Deleted Correlation 7.51 1.731 0.632 7.32 1.741 0.794 7.21 1.913 0.702 N of Items Squared Cronbach's Multiple Alpha if Item Correlation Deleted 0.423 0.860 0.652 0.691 0.573 0.781 47 Integrity reliability analysis Reliability Statistics Cronbach's Alpha 0.845 INT1 INT2 INT3 Cronbach's Alpha Based on Standardized Items 0.847 Item-Total Statistics Scale Mean Scale Corrected if Item Variance if Item-Total Deleted Item Deleted Correlation 6.22 2.072 0.721 6.19 1.912 0.693 6.13 2.095 0.726 N of Items Squared Cronbach's Multiple Alpha if Item Correlation Deleted 0.525 0.775 0.480 0.807 0.531 0.771 Ability reliability analysis Reliability Statistics Cronbach's Alpha 0.727 ABI1 ABI2 ABI3 Cronbach's Alpha Based on Standardized Items 0.726 Item-Total Statistics Scale Mean Scale Corrected if Item Variance if Item-Total Deleted Item Deleted Correlation 6.71 1.699 0.485 6.99 1.423 0.564 7.11 1.467 0.602 N of Items Squared Cronbach's Multiple Alpha if Item Correlation Deleted 0.239 0.711 0.335 0.622 0.367 0.574 48 Trust reliability analysis Reliability Statistics Cronbach's Alpha 0.861 BEN1 BEN2 BEN3 INT1 INT2 INT3 ABI1 ABI2 ABI3 Scale Mean if Item Deleted 27.19 27.01 26.89 27.65 27.62 27.56 27.01 27.29 27.41 Cronbach's Alpha Based on Standardized Items 0.862 Item-Total Statistics Scale Corrected Variance if Item-Total Item Deleted Correlation 17.279 0.531 17.046 0.676 17.667 0.580 16.850 0.656 16.491 0.633 16.951 0.650 18.097 0.510 17.933 0.467 17.417 0.600 N of Items Squared Cronbach's Multiple Alpha if Item Correlation Deleted 0.437 0.852 0.682 0.838 0.589 0.847 0.574 0.839 0.518 0.842 0.559 0.840 0.307 0.853 0.363 0.858 0.466 0.845 Web quality reliability analysis Reliability Statistics Cronbach's Alpha 0.877 TQ4 TQ5 TQ6 Scale Mean if Item Deleted 65.75 65.28 65.79 Cronbach's Alpha Based on Standardized Items 0.879 Item-Total Statistics Scale Variance if Corrected Item Item-Total Deleted Correlation 68.790 0.552 67.835 0.522 67.618 0.536 N of Items Squared Multiple Correlation 0.435 0.522 0.492 19 Cronbach's Alpha if Item Deleted 0.869 0.870 0.869 49 TQ7 TQ8 TQ9 TQ10 GCQ3 GCQ4 GCQ5 SCQ1 SCQ2 SCQ3 SCQ4 SCQ5 AQ1 AQ2 AQ3 AQ4 66.07 65.51 65.69 66.22 65.93 65.79 66.41 65.86 66.15 65.82 66.08 65.81 65.92 65.96 65.74 65.72 69.123 68.108 67.594 68.878 68.572 69.056 69.621 68.231 67.943 66.586 67.575 67.959 70.116 69.055 69.042 70.437 0.408 0.501 0.465 0.414 0.505 0.490 0.380 0.517 0.486 0.638 0.497 0.553 0.429 0.451 0.554 0.445 0.311 0.520 0.439 0.286 0.485 0.416 0.403 0.422 0.461 0.571 0.495 0.424 0.369 0.488 0.546 0.420 0.874 0.871 0.872 0.874 0.871 0.871 0.875 0.870 0.871 0.866 0.871 0.869 0.873 0.872 0.869 0.873 Appendix 6: Correlation analysis Correlations TRUS Pearson T Correlati on Sig (2tailed) N BEN Pearson Correlati on Sig (2tailed) N INT Pearson Correlati on Sig (2tailed) N ABI Pearson Correlati TRUS T BEN 793 INT 845 ABI 786 WQ 573 TQ 368 ** ** ** ** ** ** ** ** 0.00 197 0.00 197 490 0.00 197 425 0.00 197 408 0.00 197 302 0.00 197 268 0.00 197 345 0.00 197 298 ** ** ** ** ** ** ** 0.00 197 0.00 197 528 0.00 197 462 0.00 197 237 0.00 197 403 0.00 197 418 0.00 197 301 ** ** ** ** ** ** ** 0.00 197 425 197 528 0.00 197 0.00 197 529 0.00 197 365 0.00 197 411 0.00 197 408 0.00 197 385 ** ** ** ** ** ** ** 197 793** 0.000 197 845** 0.000 197 786** 197 490 GC Q SCQ 445 482 AQ 402 50 on Sig (20.000 0.00 0.00 0.00 tailed) 0 N 197 197 197 197 197 WQ Pearson 573** 408 462 529 ** ** ** Correlati on Sig (20.000 0.00 0.00 0.00 tailed) 0 N 197 197 197 197 197 TQ Pearson 368** 302 237 365 717 ** ** ** ** Correlati on Sig (20.000 0.00 0.00 0.00 0.00 tailed) 0 N 197 197 197 197 197 GCQ Pearson 445** 268 403 411 749 ** ** ** ** Correlati on Sig (20.000 0.00 0.00 0.00 0.00 tailed) 0 0 N 197 197 197 197 197 SCQ Pearson 482** 345 418 408 807 ** ** ** ** Correlati on Sig (20.000 0.00 0.00 0.00 0.00 tailed) 0 0 N 197 197 197 197 197 AQ Pearson 402** 298 301 385 695 ** ** ** ** Correlati on Sig (20.000 0.00 0.00 0.00 0.00 tailed) 0 0 N 197 197 197 197 197 ** Correlation is significant at the 0.01 level (2-tailed) 0.00 197 717 0.00 197 749 0.00 197 807 0.00 197 695 ** ** ** ** 0.00 197 0.00 197 309 0.00 197 433 0.00 197 420 ** ** ** 0.00 197 0.00 197 552 0.00 197 315 ** ** ** 0.00 197 433 197 552 0.00 197 0.00 197 379 ** ** ** 0.00 197 420 0.00 197 315 197 379 0.00 197 ** ** ** 0.00 197 0.00 197 0.00 197 197 309 197 51 Appendix 7: Regression results Regression analysis 1: TRUST ← f(WQ) Model Summaryb Change Statistics Std R Error Squar R Adjust of the e F Mod Squa ed R Estimat Chang Chang df el R re Square e e e 1 57 0.328 0.325 0.4236 0.328 95.25 3a a Predictors: (Constant), WQ b Dependent Variable: TRUST Durbi Sig F ndf Chang Watso e n 19 0.000 1.940 ANOVAa Model Regression Sum of Squares 17.093 Residual 34.992 Total 52.085 a Dependent Variable: TRUST b Predictors: (Constant), WQ df Mean Square 17.093 195 196 F 95.253 Sig .000b t 4.356 9.760 Sig .000 000 0.179 Coefficientsa Unstandardized Standardized Coefficients Coefficients Std Model B Error Beta (Constant) 1.059 243 WQ 648 066 573 a Dependent Variable: TRUST 52 Regression analysis 2: TRUST ← f(TQ, GCQ, SCQ, AQ) Model Summaryb Change Statistics Std R Error Squar Durbi R Adjust of the e F Sig F nMod Squar ed R Estima Chang Chang df df Chang Watso el R e Square te e e e n 57 0.332 0.318 0.4256 0.332 23.86 19 0.000 1.935 6a a Predictors: (Constant), AQ, GCQ, TQ, SCQ b Dependent Variable: TRUST ANOVAa Sum of Model Squares df Mean Square Regression 17.298 4.325 Residual 34.787 192 181 Total 52.085 196 a Dependent Variable: TRUST b Predictors: (Constant), AQ, GCQ, TQ, SCQ Coefficientsa Unstandardized Standardized Coefficients Coefficients Std Model B Error Beta (Constant) 1.097 250 TQ 101 060 116 GCQ 171 057 216 SCQ 192 061 239 AQ 176 061 195 a Dependent Variable: TRUST F 23.868 Sig .000b t 4.381 1.679 3.017 3.148 2.897 Sig .000 095 003 002 004 53 Regression analysis 3: TRUST ← f(GCQ, SCQ, AQ) Model Summary Change Statistics Adjusted R R R Std Error of Square F Sig F Model R Square Square the Estimate Change Change df1 df2 Change 568a 322 312 42766 322 30.597 193 000 a Predictors: (Constant), AQ, GCQ, SCQ ANOVAa Model Sum of Squares df Regression 16.788 Residual 35.298 193 Total 52.085 196 a Dependent Variable: TRUST b Predictors: (Constant), AQ, GCQ, SCQ Mean Square 5.596 183 F 30.597 Sig .000b Coefficientsa Unstandardized Standardized Coefficients Coefficients Correlations Std ZeroModel B Error Beta t Sig order Partial Part (Constant) 1.252 234 5.359 000 GCQ 177 057 222 3.099 002 445 218 184 SCQ 219 059 AQ 206 058 a Dependent Variable: TRUST 273 3.705 000 482 258 220 229 3.541 000 402 247 210 54 ... can analyze and customize their website to fit better with Vietnamese’s preference Scope of the study This study investigates the effect of perceived web quality on perceived emarketplace trust. .. (Teo & Liu, 2007) also states that website assurance and Integration also have effect on trust And while they seem to be separated, web design, assurance and integration are features of website... particular niche in Vietnam research environment 1.5 The gap in literature of web quality on trust The above researchers usually take Aladwani’s conceptualization of Web quality as a whole and