Testing the factors affecting the development of credit cards in the viet nam banking industry

This paper aims to evaluate the development of credit cards in the Vietnam banking industry, particularly in Ho Chi Minh City and identify the significant factors affecting the credit c

Global Journal of Business and Social Science Review

Journal homepage: www.gatrenterprise.com/GATRJournals/index.html

Global J Bus Soc Sci Review 2 (1) 40 – 53 (2014)

Global J Bus Soc Sci Review 2 (1) 510 – 523 (2014)

Testing the Factors Affecting the Development of Credit Cards in the

Vietnam Banking Industry

Khanh, C.H.1, Tri, D.N.2*, Anh, T.T.N.3 and Dang,T.K.C.4

1,2,3,4 FPT University, 70000, Ho Chi Minh City, Vietnam

ABSTRACT

Objective – In recent years, banks have been very interested in encouraging non-cash payment activities in Vietnam

Especially, payment by credit card has recently become a popular consumer behavior in the rural area This paper aims

to evaluate the development of credit cards in the Vietnam banking industry, particularly in Ho Chi Minh City and identify the significant factors affecting the credit card market

Methodology/ Technique – The authors conduct questionnaire survey with Likert-style rating scale to get the primary

data Exploratory Factor Analysis (EFA), Kaiser-Meyer-Olkin (KMO) and Bartlett’ test are also employed to test correlation between independent variable (the development of credit cards in Vietnam) and five dependent variables (technology innovation, customer behavior, product creation, promotion policies and critical framework)

Findings – The findings underline that the development of credit cards in the Vietnam banking industry is significantly

influenced by customer behavior, promotion policies, critical framework, product creation, and technology innovation Although there are some problems that need to be improved, Vietnam’s credit card market has still been assessed as an outstanding potential market

Novelty – In this paper, recommendations are made to discover ways to improve these problems and continue developing

the credit card market in Vietnam

Type of Paper: Empirical

JEL Classification: E5, G2.

_

1 Introduction

Here follows the further instructions for authors The credit card is a current non-cash payment tool and indispensable source of credit Furthermore, the credit card is a convenient method in short term with free credit by buying first and paying later It helps users to get the products and services even when they do not have enough cash to afford with the payment at the end of the period Therefore, the credit card is not only popular in developed countries, but also in developing countries In particular, there was around 800 million credit cards serving a population of 313 million (Vietnamese E-Commerce Report 2012) in the USA At the end of June 2013, Australia had 15.4 million cards, reaching 2.2% compared to the same period last year (ABS

* Paper Info: Received: December 10, 2013

Accepted: January 26, 2014

* Corresponding author:

E-mail: trind@fsb.edu.vn

Affiliation: FPT University, Vietnam

2013) According to National Institutes for Finance, the rate of credit card users in Singapore, Malaysia and Thailand accounted for 95%, 55% and 46% respectively

With the trend of the credit card in the world, Vietnam has recently accessed and developed this modern tool Following to the report of the State Bank of Vietnam, the proportion of cash payment has been decreasing year by year, falling from 31.6% in 1991 to 11.8% in 2012 It creates an important motivation to enhance other non-cash payment instruments like a bank card which has become more popular payment method with a rapid growth; specifically, total credit cards remarkably increased by 198% from 2009 to 2011 (World Card Intelligence: Vietnam 2012) According to the latest figures of the Payment Department of the State Bank of Vietnam, at the end of quarter 01/2014, there were 68.55 million bank cards, rising by 3.5% compared to 2013 while credit accounted for 2.52 million

With the population of nearly 88 million, Vietnam has 58.2 % of age-15 and older workers in the total population (General statistic office, 2012) Vietnam has been perceived as an extremely potential market to develop financial products and services, but cash is still the major form of payment Generalization of the credit card made up a low number in Vietnam One Vietnamese owned around average 0.017 credit cards (Vietnamese E-Commerce Report 2012), which was lower compared to some other countries Therefore, to improve non-cash payment instrument, Vietnam’s Government passed Decision No.291/2006/Q Đ-TTG dated 29th December 2006 with content “The project of non-cash payment during 2006-2010 and direction to 2020” The Government hopes that the credit card market will achieve a strong growth in the next years

In this research, we would like to explore major factors affecting the development of credit card to have an overview of the credit card in Vietnam and its position in the global credit card market Then, basing on analysis and findings, we suggest some recommendations and solutions to develop credit card for the banking industry in Vietnam

To reach the research objectives, the paper will test below hypotheses:

H 1: The greater customer behavior awareness is raised, the more credit card market is enhanced

H 2: Technological innovation brings new potential for credit card market in Vietnam

H 3: The more successful product is created, the more credit card market will be built up

H 4: Promotion policies contribute importantly increasing the competitiveness of Vietnam's card market

H 5: The greater critical framework has improved, the more the card market in Vietnam grows

2 Literature review

2.1 Characteristic of the Vietnamese credit card market

Cash is a traditional payment instrument and it seems difficult to change habits of consumers and enterprises According to calculations by the Vietnam Bank Association, the amount of withdrawing cash through ATM was around 550,000 billion VND each year (Bank Magazine, 2011) Clearly, cash is the principal payment method in the country

Following the BDRC’s research implemented in the two biggest cities, Hanoi and Ho Chi Minh, about the forms of payment, cash is still the most preferred instrument There was up to 99% of small and medium-sized enterprises (SMEs) who still used the cash instrument, while only less than 10% of companies accepted credit

or debit cards for business However, according to statistics of the Vietnamese State Bank, the ratio of cash instrument to total payment methods tended to decrease from 20.3% in 2004 to 14% in 2010

Mr Darin Williams, Managing Director of Nielsen Viet Nam, said that there were just 42% consumers who were interested in credit card services, and just one percent of Vietnamese consumers used it In addition, more than 50% of the market did not comprehend the concept of credit card and they felt difficult to use a credit card as well More than one-third (36%) said that they did not need it, 19% did not know how they work, meanwhile another 18% said that this kind of payment instrument looked complicated to use (Nielsen, 2011)

Therefore, with the evolution of new payment method and the government’s fiscal supports, there are many things to do to gradually approach the variety of non-cash payments

2.2 Market shares in Vietnamese credit card market

It is apparent from information supplied by the World Cards Intelligence: Vietnam, 2012 that the credit card made up a small proportion of total card payment with nearly 2.4% in 2011 and it was still a nascent market of development in Vietnam The secured credit cards were issued a significant percentage of the total credit cards in the form of a mortgage loan, a time deposit account or a savings account One thing which happened remarkably between 2009 and 2011 was that total credit card rocketed by 198% Although there was

a rapid development, the awareness of credit cards had far much been limited As the result, Vietnam was one

of the least profitable markets for credit cards in the whole world with $6 average profit per card in 2011 Meanwhile, it was expected that the urban middle class brought a brighter view for the profit of the credit card market

According to World Cards Intelligence: Vietnam, 2012, total payment card transactions accounted for around 30% in payment of entertainment services, 28.5 % in leisure and 17.8 % in travel in 2010 It was expected that there were about 1 million credit cards by the end of 2011 Then, the bank cards issued rose to 47.22 million with 3% of the credit cards (Vietnamese E-Commerce Report 2012) In 2011, the market for credit cards was focused on four issuers: Vietcombank, Vietinbank, Asia Commercial Bank (ACB) and Sacombank with around 80% of credit cards issued Vietcombank has become the greatest issuer of credit cards and the second-greatest payment card issuer in Vietnam In 2012, as Vietnamese E-Commerce Report

2012, the leader card market changed for Vietinbank, Vietcombank, Sacombank and Techcombank with around 300, 277, 61, 54 thousand credit cards respectively

It is the fact that the early stage of market development was underlined by foreign issued credit cards with more than a half of an acquired credit card transaction (World Cards Intelligence: Vietnam, 2012) The largest network in both card number and billed volumes was Visa Besides, there were some other cards such as MasterCard, China UnionPay (CUP), JCB, Diners Club, Discover On January 2008, Smartlink was officially

a third-party processor for MasterCard in Vietnam That means all MasterCard card transactions in Vietnam have to through Smartlink before being conveyed to the processing center of MasterCard Therefore, it was easy for 20 bank members of Smartlink to issue MasterCard cards

Table 1: Credit Cards Metrics 2010-2013F Vietnam: Credit Cards Metrics 2010-2013F Billed Volume on Credit Cards

Transactions on Credit Cards (000s) 2010 Chg 2011E Chg 2012F Chg 2013F Chg

Average transaction value on Credit Cards

Source: Issuers, Networks, Lafferty estimates

In addition, the shortage of payment card acceptance was a key obstacle for growth of credit cards (World Cards Intelligence: Vietnam, 2012) There were around 58,000 POS in Vietnam in 2011, yet the majority of which were concentrated in the big cities of Hanoi, Ho Chi Minh City, Da Nang Higher surcharges of merchants also have prevented cardholders from using POS card However, this was expected to have the same approximate double rise with the number of credit card It was regarded as a key to achieving the farther development of credit card market in Vietnam

2.3 Opportunities and challenges for the Vietnamese credit card market

First and foremost, Vietnam is a new market In recent years, although the number of cards has increased, but credit cards’ proportion has been still low By the end of 2013, the number of credit cards had accounted for only 3.67% of the total 66.2 million cards issued in general (Bank Card Association of Vietnam, 2014) Secondly, credit card was an equivocal concept with Vietnamese people Nevertheless, nowadays, people have understood what is a credit card and know its advantages by lots of reports and articles on the Internet Thus, they tend to access and use this financial instrument more and more Thirdly, in the age of technology, electronic commerce is really popular with Vietnamese people and electronic payment is encouraged to be used more because it is convenient (easier and faster payment process) for customers Therefore, the development of credit card is an inevitable trend to meet customers’ demand Last but not least, at the present, there are a lot of banks in Vietnam that has created a fierce competition Therefore, they have to offer more product and exclusive promotion to attract customers, and credit card product must be planned as well Unintentionally, this has brought more benefits to customers As a consequence, all elements of the credit card marketplace such as the amount of customers using credit card, the quantity of cards, revenue from credit card, will increase It is clearly that banks’ competition is also an opportunity for credit card industry’s development

On the other hand, the development of credit card market has also been facing many challenges coming from fraud risk To minimize risk, international card organizations such as Visa, Master Card recommend the card issuers investing in technology EMV standard to protect the cardholder The standards apply to all credit cards and since 2006 in Vietnam also began the transition to this Currently, many banks are also converting

to protect consumers, protect the security of payment (Mr Nguyen Trong Khang, 2012) According to Mr Duong Quang Khanh, Head of Card Services and Commercial Bank of Vietnam (ICB), said: “When the card

is issued, bank staff also guide customers using cards and security (usually oral) However, when the market formed the new card also emphasized the risk that customers may not dare to use the card.” Nowadays, although banks’ technology has developed rapidly, but the customers have not been supported promptly This leads to not only the reputation of banks declined seriously, but also some damages not allowed happening Besides that, banks have not proposed specific criteria to follow and prevent risks (A professional development

of ICB Card Services, 2013) Banks in Vietnam should have a campaign guide for our customers (Mr Peter Maher-Director of Risk Management Asia - Pacific International Group Visa Card, 2012), which is similar to the regular campaign of UK banks to guide people how to card security

2.4 The significant factors affecting the development of credit card

2.4.1 Technology innovation

Technology innovation is an important component in the growth of credit cards in Vietnam To spread the credit card networks, banks must give customers a convenient and comfortable service (Retail Payments Risk Forum Working Paper, 2012) Besides, the acceptance of card payments is limited today, most have only been implemented in shopping malls or supermarket The growth of the credit card system requires equipment and advanced engineering in conformity with international criteria Therefore, the investment in equipment is an upgrade of the banking difficulties (Vietinbank, 2012)

The State Bank of Vietnam (2013) announced that although the number of the ATM, POS increased steadily over the years, but the proportion compared with the population is still low, not evenly distributed (mainly created the large urban and industrial zones) Vietnam’s card technology system requires to be upgraded to raise up the credit card industry Most significantly, the situation of credit card fraud should be taken into account

According to an article published in ICTnews online (2013) mentioned about the situation of credit card fraud in the past few years, international card organizations have recommended that the banks should make the replacement of EMV Chip card (by Europay, MasterCard and Visa offer) to safety, risk mitigation A product could be visualized as a card application with the highest security on the securities industry today In Vietnam, the gradual transition to EMV “chip + PIN” chip card was underway, and VPBank is the first bank

to launch EMV chip card apply for credit cards with VP Bank Platinum EMV MasterCard (State Bank of Vietnam, 2007)

At present, although some local banks such as Vietcombank, Sacombank, Eximbank, VIB, VP Bank, Maritime Bank was converted to EMV chip but still large unrealized Phil Christiansen (2011) found that cost was a very significant issue in the transition of EMV chip Although the technology became cheaper to construct, many business cases would not be able to accommodate the higher costs of such card (estimated to

be at least $10 per unit, compared to less than $1 for a typical card) (Phil Christiansen, 2011) The amount of cards in Vietnam was more than 50 million cards; switching costs required no less than 50 million dollars, not admitting the other expenses (ICTnews online, 2013) In short, technology is a decisive factor of the credit card business Thus, banks should have extended networks to attract more clients to use credit cards Modern technology brings new potential for credit card market in Vietnam

2.4.2 Customer behavior

Credit cardholder behaviors become a determinant of the development of credit card Provided that the issuer is aware of the behavior of their customers, they could prepare carefully strategies to meet the demand

of the market In the credit market, credit-card-holders are usually divided into two types: convenience users

and revolvers The former receives credit card statements at the end of the month and they pay the full balance The latter receives credit card statements at the end of the month, but they only pay a part of the balance so the remaining balance is accrued interest expense According to the theory of planned behavior, consumer behavior which based on the intentions was defined by behavioral attitudes, subjective norms, and behavioral control (Ajzen, 1991)

The greater convenience the credit card gets, the more customers use it According to the studies of Canner, Cyrnak (1986) and Maysami, Koh (2008), convenience was regarded as an important reason of credit card usage The customer is more likely to use credit cards which bring them the most comfortable means (Lee and Hogarthe, 2000) As the result, when customer behavior is understated, it is less difficult to achieve the credit card market

2.4.3 Product creation

Product creation, consisting of improving product’s quality and developing new product, is one of important factors deciding the existence of credit card However, new product development is not easy, it is a costly and risky process (Zeinab Rezvani, 2009) But “product development is a creative and interdisciplinary activity” which changes the market opportunities and technological innovation into successful products (Bing Liu, 2003) Bing Liu simultaneously said that a successful product not only demands the customers’ needs and requirements, but also creates value to its stakeholders comprising of customers, organization, suppliers outside of the organization and shareholders No matter how great the new product may seem, it's a failure when the market rejects it (David Kirkpatrick, 2010)

When products make profit for all parts of the market, then obviously it is considered as an important factor towards the market development, credit card industry is not the exception And in the competitive credit card market of Vietnam, banks have to issue more successful products As a result, factor of product partly decides whether the market will develop or not

2.4.4 Promotion policies

The credit card market in Vietnam in the past year was assessed growth quickly This is a good signal for the important contribution of an accelerating trend of non-payment of money However, to develop card payment services efficiently, the state should apply appropriate solutions towards promoting consumption of non-cash payments When the competition among credit card issuers has gone up dramatically in the market, they tend to find new promotions to encourage new customers In other words, there are more reward programs providing added incentives such as discounts and free gifts for cardholders (Walker et al, 2007)

To promote the usage of credit cards, customers use a credit card to obtain rewards, such as accumulate points to receive gift certificates The reward is often associated with the purchase of products or services on the card The value depends on the type of rewards card, rewards will generally cost the issuer between 0.25 and 2.0 percent of the spread For example, Visa and MasterCard have increased their fees to permit issuers

to fund their rewards scheme (Subramanian, 2012)

2.4.5 Critical framework

To sustain and encourage the card market in Vietnam, in 2006 the Government issued Decision No 291/2006 / TTg which was the execution of the scheme cashless payment period 2006-2011 Moreover, the governor of the Vietnamese State Bank issued Decision No 20/2007/NHNN which adjusted regulations on the issuance, payment, and providing the user the support of bank card service activity After that, Decision

No 20 / 2007 / QĐ-NHNN - regulation on the issuing, billing, providing user services and operational bank card support - was issued by the Governor of the State Bank of Vietnam in 2007 With new indications which stipulate paying salaries through the bank system (15/05/2007/CT-NHNN); regulations and orders of electronic transactions in banking activities (35/2007/ND-CPP), the government has encouraged the non-cash payment

Under the direction of the Prime Minister in Document No 01 627/VPCP-KTTH on January 23, 2009, the State Bank of Vietnam issued Circular No 01/2009/TT-NHNN guiding the agreed interest rate among the credit institutions It is apparent that the State Bank has tried to produce a sound framework for card activities

As the result, activities of card payment, card issuance and providing card services is now increasing with various modern card products meeting customer requirements

In addition, on 27/12/2011 the Prime Minister signed Decision No 2453/QD-TTg to approve non-cash payment in Vietnam from 2011 to 2015 In summation of the revised Criminal Code (2009) and the additional provisions which relate to high technology criminal, the government strengthened activities to fight against crime in payment as well as improve the trust of people In 2013, the State Bank directed to complete the connection of the POS network across the nation The credit institution has established core banking system (core banking), an internal payment system with advanced technology Nevertheless, legal framework needed

to be improved more The regulations and resolutions have been required to change and replace to suit the new age, such as growth policies, national switches processing, the standard card system, risk provisioning of payment card operations Therefore, government has enhanced and supplemented the Payment law into the State Bank law and the Credit Institutions law (2010) in order to complete a legal framework step-by-step

3 Methodology

3.1 Exploratory Factor Analysis

The aim of the Exploratory Factor Analysis (EFA) is to identify a model of the factors by deciding the amount of presenting factors for a dataset (Stevens, 2002) With the support of EFA, the variables can be loaded on each factor The target of the Exploratory Factor Analysis (EFA) is to summarize the sets of correlation between variable numbers and observable variables into small (Field, 2005; Tabachnick & Fidell, 2007) According to Tabachnick & Fidell (2007), EFA is mostly done in the initial period of study so the variables may not be preferred in the researcher’s mind process In addition, sample adequacy and correlations among the variables should be measured with Kaiser-Meyer-Olkin (KMO) and Bartlett’ test of sphericity scores In order to have factor analysis appropriately, it should be more than 0.5 in KMO score as well as it must be smaller than 05 in p value in Bartlett’s test of sphericity score to be meaningful (Pallant, 2001) After applying EFA, Factor Loadings are tested Field (2005) demonstrates that during the EFA application items, whether factor loadings are less than 0.6, they should be left out the data set

3.2 Research model

In this research, the quantitative model is used to test hypotheses and comprises the independent variable (the development of credit cards in Vietnam) and five dependent variables (technology innovation, customer behavior, product creation, promotion policies and critical framework) Meanwhile, Likerk is considered to be the scale used in the model The scale measures the variables which are assessed by respondents from point 1 (strongly disagree) to point 5 (strongly agree) The hypotheses H1 to H5 are expected to give that independent variables and the dependent variable have a linear relationship and positive correlation In other words, the researchers assume that an increase in independent variables (variables are assessed on the Likert scale) such

as technology innovation will grow the development of credit cards in Vietnam

The model which was originally proposed for the study has variables and hypotheses:

De= s0+ s1TN+ s2CB+ s3PC+ s4PP+ s5CF

Where

De: development of credit cards, TN: technology innovation, CB: customer behavior

PC: product creation, PP: promotion policies, CF: critical framework

The survey containing personal information questions and 23 questions related to the main research problem was generated The Likert-type scale was used for assessing each item in the survey Answers were between “1” and “5” with the convention that “1” is “Strongly Disagree” and “5” is “Strongly Agree” The language of the survey was Vietnamese because all of the respondents are Vietnamese Our survey contains 7 parts; the first is Personal information (gender, age, occupation, education level, income, card issuer) except respondents’ identity to ensure their confidentiality The next 6 parts contain 23 questions which belong to the element of “The development of credit card market in Vietnam” and 5 factors affecting to it The first factor

is the Technology innovation, respondents will be asked about how technology is applied to credit card industry in Vietnam The second factor will evaluate the customer behaviors about credit card usage The third one will give users the chance to comment about the production creation of banks in Vietnam Next, respondents will answer some questions relevant to Promotion policies factor The last one will ask credit card users about critical framework, it means how Vietnamese government supports the credit card usage The questions will be designed following rating questions because rating questions are often used to gather opinion data

3.3 Data analysis and findings

3.3.1 Reliability analysis

We see that each group factor has a Cronbach's alpha higher than minimum of 0.7 The factors TN, CB,

PC, PP, CF were 0.726, 0.710, 0.719, 0.733, 0.717, 0.702 respectively As the result, the Cronbach's alpha total is 0.839, which reveals a high level of internal consistency of our scale with this specific sample

Table 2 Item-Total Statistics

Corrected Item-Total Correlation

Cronbach’s Alpha if Item Deleted

Corrected Item-Total Correlation

Cronbach’s Alpha if Item Deleted

(TN1) Easily

(PP1) Connection with the favorite shopping lables

(TN2) Long time

waiting for paying .312 .836

(PP2) Installment, discounts, accumulated points support

(TN3) Secured

(TN4) Bank's

(PP4) More credit card

(CB1) Convinience

(CF1) Approaches of using encouragement texts of the Government

(CB2) Purchasing

first, paying later

habit

effort of the Government .429 .831

(CB3) Credit card

(CF3) User benefit protection by the State

law

(CB4) Previous

carefull reference .401 .833

(De1) Purchase demand

(PC1) Service

(PC2) Variety of

credit card product .300 .836

(De3) Knowledge of

(PC3) Additiontial

(De4) Issuing credit

(PC4) Expectation

of new credit card

products

Source: The authors’ calculation

Cronbach's Alpha if Item deleted from the scale is a value that should be reconsidered As we can see that

if any questions are removed, except CF1 and CF3, the Cronbach's Alpha result would be lower Thus, we

would not remove these questions It is obvious that the "Corrected Item-Total Correlation" values were

low (0.237, 0.157 in order) for CF1 and CF3 item Removal of them would result in a small improvement in Cronbach's alpha However, they are regarded to be not removed out of the scale because it belongs to an important value- CF (Critical framework) We decide that it is not necessary to sacrifice an important value to increase Cronbach's alpha actually because Cronbach's alpha is also quite high and far much standard number 0.7

3.3.2 Factor analysis

To check the sample size adequacy, this research uses Kaiser-Meyer-Olkin and Bartlett's Test of Sphericity

It is evident from the table that KMO measure is 0.759 which is greater than the required value (0.5) Moreover, Bartlett’s test of sphericity is smaller than 0.05 and p (Sig.) value is 000 According to these results, data are appropriate for EFA

Since the Initial are always 1.00, the Principal Component communalities follow the Extraction which ranges from 0.451 to 0.735 These values demonstrate the ratio of each variable variance which can be illustrated by the retained factors The more high values variables have, the better represented they are in the common factor space Therefore, most of these variable variance have made up by this six dimensional factor solution

Table 4: Communalities

Initial Extraction

(PC4) Expectation of new credit card products 1.000 735

(PP1) Connection with the favorite shopping lables 1.000 656

(PP2) Installment, discounts, accumulated points support 1.000 626

(CF1) Approaches of using encouragement texts of the Government 1.000 727

(CF2) Encouragement effort of the Government 1.000 650

(CF3) User benefit protection by the State law 1.000 650

Table 3: KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .759 Bartlett's Test of Sphericity

Approx Chi-Square 1403.904

Source: The authors’ calculation

(De3) Knowledge of credit cards 1.000 473

Source: The authors’ calculation

Thompson and Daniel22 said that the “simultaneous use of multiple decision rules is appropriate and often desirable” This research also uses multiple approaches in factor extraction There are many extraction rules and approaches consisting of Kaiser’s criteria (eigenvalue > 1 rule), the Screen test, the cumulative percent of variance extracted, and parallel analysis It is obvious from the table that the cumulative percentage of variance

is 59.1% and a total of 6 components (factors) have an eigenvalue > 1 Thus, they can explain and represent for 17 the remaining factors The EFA results demonstrate that these factors all belong to components supposed and this scale is appropriate according to component term

Table 5: Rotated Component Matrixa

Component

(PP1) Connection with the favorite shopping lables 778

(PP2) Installment, discounts, accumulated points support 761

(CF1) Approaches of using encouragement texts of the Government 846

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization a

a Rotation converged in 7 iterations

Source: The authors’ calculation

According to Principal Components Output, the Rotated Component Matrix demonstrates the correlation

of each variable with each factor Explanation concerns with variables which are assignable to a factor The classification of factors is a subjective, theoretical, and inductive process Henson and Roberts (2006) said that

“the meaningfulness of latent factors is ultimately dependent on researcher definition” That means this research wants to find the factors taken together, which interpret the majority of the responses Consequently, six factors have been produced