The impact of perceived risks on the attention to use credit card of universities’ students in ho chi minh city

STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN TUAN THE IMPACT OF PERCEIVED RISKS ON INTENTION TO USE CREDIT CARD OF UNIVERSITIES’ STUDENTS IN HO CHI MINH CITY GRADUATION THESIS BUSINESS ADMINISTRATION CODE: 7340101 ADVISOR by DANG TRUONG THANH NHAN, MBA HO CHI MINH CITY, 2021 STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN TUAN THE IMPACT OF PERCEIVED RISKS ON INTENTION TO USE CREDIT CARD OF UNIVERSITIES’ STUDENTS IN HO CHI MINH CITY GRADUATION THESIS BUSINESS ADMINISTRATION CODE: 7340101 ADVISOR by DANG TRUONG THANH NHAN, MBA HO CHI MINH CITY, 2021 THE IMPACT OF PERCEIVED RISKS ON THE INTENTION TO USE CREDIT CARD OF UNIVERSITIES’ STUDENTS IN HO CHI MINH CITY APPROVED BY: Advisor APPROVED BY: Committee Dang Truong Thanh Nhan, M.S THESIS COMMITEE DECLARATION I declare that the thesis “The impact of perceived risk on the intention to use credit card of Universities’s students in Ho Chi Minh city” is the result of my own research process Except for references from other research works as stated in the thesis, the survey data and the results of the thesis are honest and not yet published in any research work before ACKNOWLEDGE This thesis is the author’s own work, the research results are honest, in which no previously published content or content done by others except for cited quotes in the thesis During my thesis time, I got loads of backings and supportive gestures from numerous people This thesis would not have been accomplished without those valuable input, support, counsel, and advice First and foremost, I would like to express my deepest acknowledge to my advisor – MBA Dang Truong Thanh Nhan – lecturer at Banking University of Ho Chi Minh City – for her unbelievable and unreserved help, valuable advices and recommendation Thank for his effort and wide knowledge to make my topic possible, his suggestions, direction and advices are always highly appreciated and greatly contributing to the success of this thesis I would also like to express my sincere appreciation to the professors and lecturers for their guidance during my academic years at the University of Banking The knowledge and skills that I have learned, have assisted me in the completing of this thesis Last but not least, honestly the most supported ones are my family and my friends Words fail me to express my thankfulness for my parents for their endless love To all the above, and so many more, I just simply want to say again “Thank you for all your encouragement, support, and love” ABSTRACT The development of non-cash payment has created opportunities for Financial instruments, specificly credit card However, the huge difference between intention to use credit card and customers is perceived risk Aims of this are to examine the effective perceived risk's factors for the intention to use credit card Data analysis is investigated by Universities' students who are studying and from sophomore to senior in Ho Chi Minh City The results indicate that all of perceived risk's factors to affect the intention to use credit card The research sampled an online survey by questionnaire with the total number of respondents 206; valid 200 The method that the research uses is quantitative and qualitative and then will clean the data to use Analysis carried out by testing the reliability coefficient of Cronbach's Alpha; EFA discovery factor analysis, linear regression and ANOVA testing Commercial banks are trying to offer the best solutions to reinforce consumer confidence This study aims to determine the extent to which factors influence the intention to use credit card The research will provide administrative implications that help commercial banks minimize unnecessary problems and maximize quality for credit card Keywords: perceived risks, credit cards, intention to use CONTENTS CHAPTER 1: OVERVIEW OF THE THESIS 1.1 Research background 1.2 Study’s objectives research questions 1.2.1 Main Objective: 1.2.2 Sub-Objectives: 1.3 Research questions 1.4 Object and scope of study 1.5 Research method 1.6 Contribution of research 1.7 Proposed thesis structure CHAPTER 2: LITERATURE REVIEW AND REVIEW RESEARCH MODELS 2.1 The concept of customers 2.2 Consumer credit 2.3 The concept of perceived risk 10 2.4 The theoretical models of intention and behaviour 12 CHAPTER 3: RESEARCH MODEL AND RESEARCH METHOD 24 3.1 Overview of the research process 24 3.2 Research process 24 3.3 Scale buidling 25 3.3.1 Perceived Security Risk (signed: PSR) 26 3.3.2 Perceived Operational Risk (signed: POR) 26 3.3.3 Perceived Financial Risk (signed: PFR) 27 3.3.4 Perceived Fraud Risk (signed: PFrR) 27 3.3.5 Intention To Use Credit card (signed: ITUC) 28 3.4 Methods of collecting information 28 3.4.1 Collecting secondary information 28 3.4.2 Collecting primary information 28 3.5 Methods of information processing 31 3.5.1 Descriptive statistical methods 31 3.5.2 Method of testing Cronbach's Alpha scale 31 3.5.3 Method of factor analysis EFA 32 3.5.4 Methods of regression analysis 32 3.5.5 Method of testing variance ANOVA 33 CHAPTER 4: RESULTS AND DISCUSSIONS 34 4.1 Overview of the research samples 34 4.2 Descriptive statistical analysis 34 4.2.1 Descriptive statistic for norminal varibles 34 4.2.2 Descriptive statistic for ordinal variables 38 4.3 Cronbach’s alpha analysis 41 4.3.1 Evaluate Independent Variable Scale 42 4.3.2 Evaluate Dependent Variable Scale 45 4.4 Exploratory factor analysis (EFA) 45 4.4.1 EFA analysis for Independent Variable Scale 45 4.4.2 EFA analysis for Dependent Variable Scale 49 4.5 ANOVA analysis and linear regression 50 4.5.1 Pearson coefficient analysis 50 4.5.2 Linear regression 51 4.5.3 One way ANOVA analysis 53 4.6 Testing the hypotheses of the research model 54 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 58 5.1 Conclusions 58 5.2 Implications 59 5.2.1 Security Risk 60 5.2.2 Operational Risk 60 5.2.3 Financial Risk 61 5.2.4 Fraud Risk 61 5.3 Limitations and recommendation for future researches 61 REFERENCES 64 APPENDIX 1: FOCUS GROUP DISCUSSION (English version) 68 APPENDIX 2: FOCUS GROUP DISCUSSION (Vietnamese version) 69 APPENDIX 3: QUESTIONAIRE (English version) 70 APPENDIX 4: QUESTIONAIRE (Vietnamese version) 76 LIST OF ACRONYMS HCMC TRA TPB TAM PSR POR PFR PFrR ITUC ANOVA SPSS EFA Ho Chi Minh City Theory of Reasoned Action Theory of Planned Behavior Technology Accept Model Perceived Security Risk Perceived Operational Risk Perceived Financial Risk Perceived Fraud Risk Intention to use credit card Analysis of variance Statistical Package for the Social Sciences Exploratory Factor Analysis - Watkins, J.P (2000) The Corporate Power and The Evolution of Consumer Credit, Journal of Economic Issues, 34(4), 909-933 - WeAreSocial & Hootsuite (2021) VietNam Digital Annual Report http://digimarkvn.com/bao-cao-viet-nam-digital-2021-do-we-are-social-vahootsuite-thong-ke/ Cimiago, 2019 E-payments, Credit card and the future of payments - Wu, J H., & Wang, S C (2005) What drives mobile commerce?: An empirical evaluation of the revised technology acceptance model Information & management, 42(5), 719-729 67 APPENDIX 1: FOCUS GROUP DISCUSSION (English version) Part 1: Introduction Dear Mr/Mrs, My name is Nguyen Tuan - a student of Business Administration Department in Banking University Ho Chi Minh City Currently, I am conducting the study “The impact of perceived risks on the intention to use credit card of Universities’ students in Ho Chi Minh City” Moreover, your information will be used purely for academic researching purposes Kindly spare few minutes to help me complete the questionnaire Our deep appreciation to your valuable time and support Thank you very much Part 2: Content Question 1: Do you understand the content of the survey? Compared to the original questionnaire taken from foreign research, you think the translation is appropriate? Question 2: There are some phrases that we cannot find the proper expression words, please help me translate Question 3: Is the questionnaire suitable for the actual situation in Ho Chi Minh City area? Thank you for your cooperation 68 APPENDIX 2: FOCUS GROUP DISCUSSION (Vietnamese version) DÀN BÀI PHỎNG VẤN NHÓM TẬP TRUNG Phần 1: Giới thiệu Xin chào anh/chị, Tôi Nguyễn Tuân – sinh viên khoa Quản trị Kinh doanh trường Đại học Ngân hàng Thành phố Hồ Chí Minh Hiện tơi thực nghiên cứu “Tác động nhận thức rủi ro đến ý định sử dụng thẻ tín dụng sinh viên trường Đại học Thành phố Hồ Chí Minh” Tôi cam kết thông tin anh/chị cung cấp để phục vụ cho trình nghiên cứu Rất mong nhận hợp tác anh/chị Xin chân thành cám ơn ! Phần 2: Nội dung vấn Câu hỏi 1: Anh/chị có hiểu rõ nội dung phiếu khảo sát không? So với bảng câu hỏi gốc lấy từ nghiên cứu nuớc ngoài, theo anh/chị, việc chuyển ngữ có phù hợp khơng? Câu hỏi 2: Có số cụm từ chúng tơi khơng tìm từ ngữ diễn đạt thích hợp, mong anh/chị giúp đỡ chuyển ngữ Câu hỏi 3: Bảng câu hỏi có phù hợp với tình hình thực tế khu vực thành phố Hồ Chí Minh hay khơng? Xin chân thành cảm ơn hợp tác quý anh/chị 69 APPENDIX 3: QUESTIONAIRE (English version) My name is Nguyen Tuan - a student of Business Administration Department in Banking University Ho Chi Minh City Currently, I am conducting the study “The impact of perceived risks on the intention to use credit card of Universities’ students in Ho Chi Minh City” Your information will be used purely for academic researching purposes Kindly spare few minutes to help me complete the questionnaire Our deep appreciation to your valuable time and support Thank you very much PART I: PERSONAL INFORMATION What is your gender? o Male o Female What is your education level? o Fresher o Sophomore o Junior o Senior What is your major? o Business Administration o Accounting o Financial and Banking o Others: Currently, have you been used credit card? o Yes o No 70 How oftent you use credit card? o Frequently o Sometimes o Rarely o Unused How much income you have per month? o Under 3.000.000 VND o From 3.100.000 VND to 5.000.000 VND o From 5.100.000 VND to 7.000.000 VND o Above 7.000.000 VND 71 PART 2: CONTENT For each of the following, would you please indicate your agreement with the statements below using the following scales: CONTENT Please, you have to stick “” Intothe selection box on a Strongly Disagree Strongly Disagree Neutral Agree (2) (3) (4) (1) Agree (5) scale PERCEIVED SECURITY RISK - PSR PSR1 - Credit cards are not secure for financial transactions PSR2 - Hackers can easily skim your CVV code PSR3 - You feel the personal details are easily leaked through credit card transactions PSR - Your personal information is easily accessed 72 PERCEIVED OPERATIONAL RISK - POR POR1 - The issuing banks systems maintenance affect your payment experience POR2 - Credit transactional card facilities are often found mistakes POR3 - The risk of lack of capital of issuing banks will hinder your capital needs POR4 - The lack of uniformity devices between that support credit card payments will affect the experience of using credit cards PERCEIVED FINANCIAL RISK – PFR PFR1 – The cost of payment by credit card is higher than other payment methods PFR2 – You can hardly refund when transacting by electronic wallet 73 PFR3 – Credit card interest rates are higher than regular rates PFR4 – You will be charged an additional penalty if you spend over your limit PFR5 – Late payment fee will be imposed when you not pay the minimum amount of 5% - 10% required by the issuing banks PERCEIVED FRAUD RISK - PFrR PFrR1 - You can be impersonated to steal your credit card from the issuing banks PFrR2 - Your credit card may be lost or stolen PFrR3 - Your official card may be takeovered after you lose your valid personal information through email PFrR4 - Your credit card has a chance of being counterfeited 74 INTENTION TO USE CREDIT CARD - ITUC ITUC1 - You intend to continue using credit card in the future ITUC2 - You like to use credit card ITUC3 - You are willing to credit card to the others ITUC4 - You are willing to use credit card THANK YOU ! 75 APPENDIX 4: QUESTIONAIRE (Vietnamese version) Xin chào anh/chị, Tôi Nguyễn Tuân – sinh viên khoa Quản trị Kinh doanh trường Đại học Ngân hàng Thành phố Hồ Chí Minh Hiện thực nghiên cứu “Tác động nhận thức rủi ro đến ý định sử dụng thẻ tín dụng sinh viên trường Đại học Thành phố Hồ Chí Minh” Tơi cam kết thông tin anh/chị cung cấp để phục vụ cho trình nghiên cứu Rất mong nhận hợp tác anh/chị Xin chân thành cám ơn ! PHẦN 1: THÔNG TIN CỦA NGƯỜI KHẢO SÁT Giới tính Bạn gì? o Nam o Nữ Bạn sinh viên năm mấy? o Năm o Năm o Năm o Năm Ngành học bạn o Quản trị Kinh Doanh o Kế tốn o Tài Ngân Hàng o Khác Hiện bạn có sử dụng ví điện tử khơng? o Có o Khơng Bạn có thường xun sử dụng ví điện tử không? 76 o Thường xuyên o Thỉnh thoảng o Rất o Không sử dụng Thu nhập tháng bạn? o Dưới 3.000.000 VNĐ o Từ 3.100.000 VNĐ đến 5.000.000 VNĐ o Từ 5.100.000 VNĐ đến 7.000.000 VNĐ o Trên 7.000.000 VNĐ 77 PHẦN 2: NỘI DUNG (ĐÁNH GIÁ) Với nhân tố sau Anh/chị vui lòng cho biết mức độ đồng ý phát biểu cách sử dụng thang đo sau: NỘI DUNG Anh /chị vui lòng đánh dấu “” vào ô lựa chọn theo thang Rất không Không Không Đồng Rất đồng đồng ý đồng ý ý kiến ý ý (1) (2) (3) (4) (5) điểm RỦI RO VỀ SỰ BẢO MẬT - PERCEIVED SECURITY RISK - PSR PSR1 – Thẻ tín dụng khơng an tồn cho giao dịch tài PSR2 - Tin tặc dễ dàng đánh cắp mã CVV bạn PSR3 - Bạn cảm thấy thông tin cá nhân dễ dàng bị rị rỉ thơng qua giao dịch thẻ tín dụng PSR - Thông tin cá nhân bạn dễ dàng truy cập 78 RỦI RO VỀ HOẠT ĐỘNG - PERCEIVED OPERATIONAL RISK - POR POR1 - Việc bảo trì hệ thống ngân hàng phát hành ảnh hưởng đến trải nghiệm toán bạn POR2 - Các phương tiện hỗ trợ giao dịch thẻ tín dụng thường phát lỗi POR3 - Rủi ro tình hình tài ngân hàng phát hành cản trở nhu cầu vốn bạn POR4 - Sự thiếu đồng thiết bị hỗ trợ tốn thẻ tín dụng ảnh hưởng đến trải nghiệm sử dụng thẻ tín dụng RỦI RO VỀ TÀI CHÍNH - PERCEIVED FINANCIAL RISK – PFR PFR1 – Chi phí tốn thẻ tín dụng cao so với phương thức toán khác PFR2 – Bạn khó hồn tiền giao dịch thẻ tín dụng 79 PFR3 – Lãi suất thẻ tín dụng cao lãi suất thơng thường PFR4 – Bạn bị tính phí phạt bổ sung bạn chi tiêu vượt hạn mức PFR5 – Phí tốn chậm áp dụng bạn khơng tốn số tiền tối thiểu từ 5% - 10% theo yêu cầu ngân hàng phát hành RỦI RO GIAN LẬN - PERCEIVED FRAUD RISK - PFrR PFrR1 - Bạn bị mạo danh lấy cắp thẻ tín dụng gửi từ ngân hàng phát hành PFrR2 – Thẻ tín dụng bạn dễ bị lạc bị đánh cắp PFrR3 – Thẻ tín dụng bạn bị tước đoạt sau bạn xác nhận thông tin cá nhân qua email giả mạo PFrR4 - Thẻ tín dụng bạn có khả bị làm giả 80 Ý ĐỊNH SỬ DỤNG THẺ TÍN DỤNG - INTENTION TO USE CREDIT CARD - ITUC ITUC1 – Bạn tiếp tục sử dụng thẻ tín dụng tương lai ITUC2 – Bạn thích sử dụng thẻ tín dụng ITUC3 – Bạn sẵn lịng giới thiệu thẻ tín dụng cho người khác ITUC4 – Bạn sẵn lòng sử dụng thẻ tín dụng CHÂN THÀNH CẢM ƠN ! 81 ... University's Students in Ho Chi Minh City Testing the impact of perceived risks influence on the intention to use and testing the correlation between the impact of Perceived risks influence on the intension... BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN TUAN THE IMPACT OF PERCEIVED RISKS ON INTENTION TO USE CREDIT CARD OF UNIVERSITIES’ STUDENTS IN HO. .. are the perceived risks influencing the intention to use Credit card of University’s student in Ho Chi Minh City? (2) Which risk has the highest impact on the intention to use Credit card of University’s