Examing the Impact of Online Cosumer Trust on Purchase Intention in Vietnam

Examing the Impact of Online Cosumer Trust on Purchase Intention in Vietnam

Advisor: Dr Pi-Yun, Chen Co-Advisor: Dr Van Huy, Le Student Name: Tran Thien Vu

Student ID: 11752331 Class: SD_MBA1

THESIS PROPOSAL

Examing the Impact of Online Cosumer

Trust on Purchase Intention in Vietnam

1 Introduction (1/7)

1.1 Research Background and Motivation

Ø

• Overview of Electronic Commerce (EC)

• Electronic Commerce Evolution in delopped countries such as United States, Europe, Japa

Ø Electronic Commerce in Vietnam

• Infrastructure, Socio-Economics, Socio-Culture,

Government Policy and Regulation

• Obstacles to e-commerce application in Vietnam

• I am a lecturer in department of EC, IT college so I would

like to broaden my horizons in the field of EC

Ø Propessional Perspective:

1 Introduction (2/7)

1.2 Statement of Problem

Ø Trust is context-dependent and thus its detailed effects may be related to specific cultural environment Furthermore, trust, in general, is an important factor in many social and economic actions due to its uncertainty and dependency, and a main issue in E-commerce (Gefen, 2000) However, how important trust is in the context of Vietnamese B2C E-commerce, and its impact on purchase intention is a challenging question that is necessary to investigate empirically To answer this question is the first objective of this study

1 Introduction (4/7)

1.3 Research Purpose

The intent of this study was to understand the impact

of cognitive-based, affective-based, personality-based, experience-based factors on the purchase intention with the mediation of trust in the context of Vietnam B2C environment Little or no research is available in the area of trust, specifically in the e-commerce industry in Vietnam The significance and importance

of this study cannot be overstated Due to different Vietnamese consumer behaviors from other countries, the study of trust was founded in foreign market such

as Germany (Sichtmann, 2007), Taiwan (Chen and Barnes, 2007), India (Ganguly and Dash, 2009),China (Yaobin and Tao, 2007).Malaysia (Ling et al., 2010)

1 Introduction (6/7)

1.5 Research Procedure

• Online Consumer Trust

4 Perceived Privacy Protection

5 Perceived Security Protection

6 The Presence of a Third Party Seal

Literature review of model of trust

Mayer, David, and

Viewing trust as calculative but still psychologically meaningful The model may be seen as a first step

in integrating psychological approach and economic approach around a very fundamental definition of trust

Jarvenpaa, Tractinsky, and

Kim and Benbasat (2003) A framework for evaluation of

trust-related arguments in internet stores

A framework is based on a model of the customer service life cycle and identifies key trust-related issues and organizes them into four categories: personal information, product quality and price, customer service, and store presence

Cheung and Lee (2004) An Integrative Model of Consumer

Trust in Internet Shopping

Perceived integrity and perceived risk have a strong impact on consumer trust in Internet shopping, while perceived security control, perceived privacy control, third party recognition, and legal framework have not significant influence on consumer trust The relationships between all of independent variables and consumer trust is significantly moderated by propensity of trust

Sichtmann, 2007 An analysis of antecedents and

consequences of trust in a corporate brand

Competence and credibility as antecedents of trust and current purchase intention, purchase intention for product innovation as well as Word – Of – Mouth (WOM) behavior as consequences of trust

Kim, Ferrin, and Rao (2008) A trust-based consumer

decision-making model in electronic commerce

Consumer disposition to trust, reputation, privacy, security, the information quality of website, the company’s reputation strongly affects on Internet consumers’ trust Then,

Internet consumers’ trust and perceived risk strongly impact on purchasing decisions Phung, Yen, and Hsiao Factors associated with consumer’s trust Perception about company and website quality influencing on consumer trust and then purchase intention

Dimension of Trust

Author AntecedentsDoney and Cannon, 1997 Reputation, size, willingness to customize

Jarvenpaa et al., 2000 Perceive size, perceive reputation

Cheung and Lee, 2000 Perceived risk, perceived security control, perceived privacy control, perceived

integrity, perceived competence, third party recognition, legal framework

Lee and Turban, 2000 Ability, integrity, benevolence, technical competence, reliability, medium

understanding, effectiveness of third party certification, effectiveness of security infrastructure

Kim et al., 2004 Information quality, perceived privacy protection, perceived security protection,

presence of a third party, positive reputation, familiarity, consumer dispotion to trust

Gefen and Straub, 2004 Social presence

Harris and Goode, 2004 Service quality and perceived valueSichtmann, 2007 Competence and ability

Urban et al., 2009 Privacy security, site design, user heterogeneity

3 Research Design

A theoretical framework

H6: A perceived reputation positively affects the consumer’s trust.

H7: A familiarity positively affects the consumer’s trust.

H8: A disposition to trust positively affects the consumer’s trust.

4 Research Methods (1/2)

What level of research is this? Exploratory research

What type of research is it? Quantitive research method

What exactly are you measuring? Trust, Purchase Intention, WOM

behavior in Vietnam B2C context What measures will you use and

why?

7-points Likert Scale

How you establish validity and Collect online shopping

4 Research Methods (2/2)

What will you do limit bias, and

improve response rates?

Collect customers’ data who have ever

purchase online in Vietnam What instruments will you use? Questionnaires

What type of data will you

collect?

Ratio Scale (1-7 points) for measuring constructs and Categorical, multi choice and text to for collecting personal

customers’ data What you need to do collect data? Google Docs appilcation

What medthod of data analysis

will you use and why?

SPSS 16.0 and AMOS 6.0

Ethical constraints and issues Do NOT design data by ramdon by myself

Ajzen, L., (1991) The Theory of Planned Behavior, Organizational Behavior and Human Decision Processes, vol 50, pp 211.

179-Braynov, S and Sandholm, T (2002) Contracting with uncertain level of trust Computational Intelligence, vol 18 (4).

Chen, Y.H., Barnes, S (2007) Intial trust and online buyer behavior.Industrial Management & Data Systems, vol 107 (1).

Clavis Technology (2012) ClaviseCommerce Information Quality Insight Site: www.gs1us.org/

English, L (1999) Improving Data Warehouse and Business Information Quality: Methods for Reducing Costs and Increasing Profits Willey.

Fleenor, C.P and Raven, P (2002) Barriers to Effective E-Business in Developing Countries International Business & Economics Research Journal, vol.1(4).

Ganguly, B and Dash, S.B (2009) Website Characteristics, Trust and Purchase Intention in online stores: An empirical study in Indian context Journal of Information Science and Technology, vol 6(2).

Gefen, D., and Straub, D.W., (2004) Consumer Trust in B2C E-Commerce and the Importance of Social Presence: Experiments in E-Products and E-Services Omega, vol 32, pp 407 - 424.

Genesan, S., (1994).Determinants of Long Term Orientation in Buyer - Seller Relationships Journal of Marketing, vol 58, pp 19.

1-Grabner-Krauter, S., and Kaluscha, E.A., (2003) Empirical Research in Online Trust: A Review and Critical Assesment

Metzger, M (2004) Privacy, Trust, and Disclosure: Exploring Barriers to Electronic

Commerce Journal of Computer-Mediated Communication, vol.9 (4).

Palvou, P.A., (2003) Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model International Journal of Electronic Commerce, vol 7, pp 101 -134

Sichtmann, C (2007) An Analysis of Antecedents and Consequences of Trust in a

Coporate Brand European Journal of Marketing, vol.11 (9), p.999-1015.

Urban, G.L, Amyx, C., and Lorenzon, A (2009) Online Trust: State of the Art, New Frontiers, and Research Potential Journal of Interactive Marketing, vol 23, pp 179- 190.

Urban, G.L., Sultan, F., and Qualls, W (2000).Placing Trust at the Center of Your

Internet Stategy MIT Sloan Management Review, Cambrigde, vol 42(1), pp.39-48 Yaobin, L and Tao, Z (2007) A Research of Consumer's Initial Trust in Online Stores

in China.Journal of Research and Practice in Information Technology, vol 39 (3).

Questionnaires

Instruction for participants:

Participants are recommended to visit an online shopping website in Vietnam for the sake of examining your trust in

online company You can choose and visit a particular website that you are familiar with, regardless of which kind

of product or service it sells It can be an online bookstore, computer online store, air travel service site, beauty site, online retailing store, and so on After choosing web site, you are required to answer following questions:

Name of the visited website: ……….

Name of product or service you choose: ……….

How oftern do you visit this website?

 1 time/month

 2-3 times/month

 1 time/week

 2-3 times/week

 More than 4 times/week

Have you ever bought products or services from this website?

Never bought

Sometimes

 Usually bought

Information Quality (Kim et al., 2007)

This website provides correct information about item that I want to buy.

This website provides timely information on the item.

This website provides reliable information.

This website provides sufficient information when I try to make a transaction.

Overall, the information this website provides is of high quality.

Perceived Privacy Protection (Kim et al., 2007)

This website is collecting too much personal information from me.

This web vendor will use my personal information for other purposes without my authorization.

This web vendor will share my personal information with other entities without my authorization.

I am concerned about the privacy of my personal information during a transaction.

This vendor will sell my personal information to others without my permission.

Perceived Security Protection (Kim et al., 2008)

This web vendor implements security measures to protect Internet shoppers

This web vendor usually ensures that transactional information is protected from accidentally being altered or destroyed during a transmission on the Internet

I feel secure about the electronic payment system of this web vendor

I am willing to use my credit card on this site to make a purchase

I feel safe in making transactions this website

In general, providing credit card information through this site is riskier than providing it over the phone to an offline

vendor

I think third-party recognition bodies are doing a good job.

Existing third-party recognition bodies are adequate for the protection of Internet shoppers’

interest.

Online Consumer Trust (Gefen, 2000, Jarvenpaa, 2000)

This site is trustworthy

This website vendor gives the impression that it keeps promises and commitments

I believe that this website vendor has my best interests in mind

Experience in Internet surfing:

Over 6 year

Shopping online: