Critical factors affecting the customers intention to use e retailing

They are trust, subjective norm, website quality and perceived risk in using credit card.. Another research about internet shopping in Malaysia showed that one of the most important fact

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)

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

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

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 e-shopping 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

2.3 Factors impact to the customers’ intention to use e-retailing 12

Chapter 4_ DATA ANALYSIS 23

LIST OF FIGURES

Figure 4.3 Normal P-P plot of regression standardized residuals 31

LIST OF TABLES

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

Chapter 1

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, e-retailing 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,

e-retailing 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 group-buying

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 2 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 marketing

channel

Nguyen (cited by vnexpress.net, 2014), a lecturer in Electronic Commerce faculty,

University of Commerce stated that:

In Vietnam, most of Vietnamese businesses are small or medium businesses They are companies that can only afford small investments but want to try electronic commerce in the belief that they can be fast

successful in this field However, I fear that doing business like that will lead to failure for most

companies Investing in e-retailing requires much more money than people think Moreover, life in Vietnam is not that industrialized that people have to go online for shopping

Therefore, Vietnamese e-retailing market is very challenging to small and medium

businesses but it is also very promising with the prospect of fast developing and huge revenue

it can generate The problem is how an internet based retailing business can connect to the end clients and persuade them to make transactions through their sites It is why the research was conducted, to find and understand what significant factors affecting the intention of people to use e-retailing

1.3 Research objectives

As discussed in Section 1.1, e-retailing business is not only very promising in Vietnam but also very challenging In order to be successful in this field, people firstly need to discover what factors can drive the shopping intention of clients Therefore, 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

1.4 Research questions

There are two questions to be answered to solve the problem identified in Section 1.2:

- What are critical factors affecting customers’ intention to use e-retailing?

- What is the level of impact of each factors affecting customers’ intention to use retailing?

clothing products are manufactured by seasons, even when a cloth is quite new, people still change it to others when season changes Finally, the research focus in office employees since they spend lots of their time sitting in front of a computer, have the opportunity to use internet almost daily and have good knowledge about computer or internet activities

1.6 Research significance

Because of the development of e-retailing, customers now have more choices to buy their needs They can choose either going to the shop to pick up the products when they have time or sitting in front of an internet devices and performing a transaction to get their products E-retailing therefore brings benefits not only to consumers but also to sellers People can shop whenever they like and sellers can sell almost 24/7

This research aims to discover the significant factors affecting customers’ intention to use e-retailing in Vietnamese context Results of the thesis may contribute to the academic

knowledge in terms of Vietnam e-retailing market and Vietnamese consumers’ decision

factors It can help business to understand what affects to customers’ intention when they try their services Therefore, they can define a better strategy and customize their service to have better e-shopping experiences to attract to more customers For a general picture, the research may contribute, to some extent, to develop the Vietnamese e-retailing market in the future

1.7 Research structure

This research consists of five chapters First chapter is the introduction that presented the overview about the topic, the purpose of the research and the approached way to solve the research’s problem Next chapter is the literature review where prior studies about internet shopping had been reviewed in order to propose the conceptual model and hypotheses Chapter

3 is about the research methodology in which the research process is discussed Then, Chapter

4 about data analysis illustrates the testing of survey data In Chapter 4 also, results of the proposed model are presented Final chapter is about conclusion and recommendations where research findings and managerial implication are discussed In this chapter, the limitations of

the research are mentioned in order to provide the directions for further researches about customers’ intention to use e-retailing the future

of buying online, the reality is that we do spend lots of time searching for products’ information and specifications on the internet According to ReachLocal (2012), 21% of the time people spending on the internet is for searching only and 61% of internet users research for their

products online (Interconnected World: Shopping and Personal Finance, 2012)

Andam (2003) has defined e-retailing as a form of e-commerce - “a range of online

business activities for products and services” E-retailing can be understand as a B2C

e-commerce, a commerce between companies or shops and customers, it involves customers’ purchasing both kinds of goods (physical and informational) and receiving them over an

electronic network (Andam, 2003)

Back to the mid of 1990s, the founding of Amazon and eBay can be named the origin of retailing The early success of the two companies signaled the huge changes could happen in the way people run their business Since buyers know that they can save lots of time traveling

e-to see and buy a product, they can stay at home, use some clicks and have products delivered e-to their home the next day or two That was just so simple and convenient Consumers using internet shopping not only save time but they are also allowed to save cost since they have chances of choosing the most competitive products among internet sellers Not long time after the Amazon and eBay succeeded, many internet based retailers were founded and then they completely redefine the retailing industry According to Deloitte, e-commerce accounted for a significant share of total retail revenue for the top 50 e-retailers in fiscal year 2012, accounting for nearly one-third of company sales on average

Not only brings huge benefits to consumers, but e-retailing also makes significant

improvement to the resellers Andam (2003) stated that e-retailing can reduce the market

barriers since the cost of setting up and operating a website is much cheaper than building a traditional “brick and mortar” shop He also said that for a country with robust internet

population, delivering informational goods (electronic books, digitized contents or software) becomes significantly potential

2.2 Customers’ intention to use e-retailing

Defined by Ajzen (1991, p.181), an intention is ‘‘indicators of how hard people are willing

to try, of how much of an effort they are planning to exert” In another study, intention was referred to” the individual’s assessment of the subjective probability that people will perform a particular behavior in the future”(Söderlund & Öhman, 2003, p.54) In e-retailing context, Bai, Law and Wen (2008) stated that purchasing intention is a primary result of pre-purchase

satisfaction Chen, Hsu and Lin (2010) even confirmed that the online shopping intention is the significant predictor of actual buying behavior Applying to this research, customers’ intention

to use e-retailing is defined as the expectation or intent of customers to perform the online purchasing in the future

Theory of reasoned action (TRA) is one of the famous models that widely used to predict the behaviors of customers based on their behavioral intention Derived from numerous

researches and theories about customers’ attitude, TRA model was proposed by Ajzen and Fishbein (1975 & 1980) It suggests that the immediate antecedent of a behavior is the intention

to perform the behavior in question (Fishbein and Ajzen, 1975) It can be seen that the stronger the intention people want to try something, the higher the possibility that they may actually do

it In the context of this research, customer’s intention can be defined as the intent or

expectation of a customer to purchase products via internet channels There are three key

factors to form the construct, they are two independent factors that are used to define the

behavioral intention First factor is person’s attitude and the second is subjective norm

- Person’s attitude Generally, attitudes can be understood as the beliefs about the results of performing an behaviors and the evaluation of those expected outcomes

- Subjective norm In a simple form, subjective norm can be defined as the opinion

of one person on how he/she thinks others should view them if they perform a behavior The summary of TRA model can be expressed as the Figure 2.1:

Alternatively, in a simple form, TRA can be written as a formula:

BI = (AB) W1 + (SN) W2

BI: Behavioral intention

AB: Attitude toward performing a behavior

SN: Subjective norm related to performing a behavior

W: empirically derived weights

(Dillard & Pfau, 2002 )

Figure 2.1 The theory of reasoned action

(Vallerand et al., 1992)

Because of the possibility to predict the people intention towards a behavior, TRA had been used in a variety of contexts and industries For example, Vallerand, Deshaies, Cuerrier, Pelletier and Mongeau (1992) had used TRA to research about the moral behavior and they found that both attitude and subjective norm positively supported the model Particularly, attitude did prove to be more important to predict a behavior than subjective norm

Alternatively, another research made in Thailand by Chuchinprakarn (n.d.) also found that attitude and subjective norm did influence the customers’ intention to shop on-line

In this thesis, in addition to the TRA model, other models and researches are included to help explaining the customer’s intention In details, internet retailing quality (IRQ) and

customers’ perceived risk in using credit card are added to form the research model

As defined in Section 2.1, e-retailing is a new way of purchasing products when consumers only need an electronic device and internet connectivity to perform a transaction Since internet

shopping is also a service, the concept of quality applied in this context is similar to

conventional service quality As such, e-retailing quality should incorporate all of the

functional aspects of the service process as well as the technical ones of the service outcome (Gronroos et al., 2000; Collier and Bienstock, 2006) According to Parasuraman et al (2005, p.217), internet retailing can be defined as “the extent to which a web site facilitates efficient and effective shopping, purchasing and delivery” In other to measure the e-retailing quality, there are number of scales had been created, some of them are summarized in Table 2.1

As seen from the Table 2.1, one of the most important dimensions to measure e-retailing quality is the website quality Website quality is a significant factor in internet shopping since

“the customers’ perceptions of website quality positively impact their intentions to use a site and directly affect purchase intentions” (Chang, Kuo, Hsu & Cheng, 2014, p.256) In a simple way, website quality is defined by its content and user interface A high quality website needs

to provide relevant and useful content along with its good and easy user interface It is so simple since almost all actions customers have to make to perform a purchase are placing on a web browser Therefore, in this research, instead of using IRQ in general, website quality will

be measured to examine the customers’ intention to use e-retailing

Perceived risk is defined as uncertainties of possible negative consequences of using a product or service (Chang, Kuo, Hsu & Cheng, 2014) In this research, perceived risk in using credit card refers to the uncertainties of people that they may lose money when purchasing products online The financial loss due to credit card fraud is a primary concerns among online customers (Dai, Forsythe & Kwon, 2014)

Table 2.1 Dimensions of e-retailing quality

Authors (scale) Dimensions of quality

Barnes and Vidgen,

2001 (WebQual) Usability, information quality, interaction quality

Collier and Bienstock,

2006

Ease of use, privacy, design, information accuracy, functionality, order condition, timeliness, order accuracy, interactive fairness, outcome fairness, procedural fairness

Francis and White, 2002

Long and McMellon,

Srinivasan et al , 2002 Customization, contact interactivity, cultivation,

care, community, choice, convenience, character Wolfinbarger and Gilly,

2003 (eTailQ)

Web site design, fulfilment/reliability, security/privacy, customer service Yoo and Donthu, 2001

(SITEQUAL)

Ease of use, aesthetic design, processing speed, security

(Francis, 2007)

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 research model is proposed in Figure 2.2 This model contains four independent factors, including trust, subjective norm, website quality and perceived risk in using credit card, that affecting the intention of customers to purchase product online In addition, three more demographic variables were used to test whether the characteristic of customers have any significant difference on their intention

Figure 2.2 Research model Hypothesis 1: Trust has a positive effect on the customer's intention to use e-retailing

Hypothesis 2: Subjective norm has a positive effect on the customer's intention to use

H4

-Gender Age Income Trust

H5

Hypothesis 5: Characteristics of customers have significant difference on their intention use

e-retailing

2.3.2 Trust

According to the TRA model (Ajzen & Fishbein, 1980; Fishbein & Ajzen, 1975), the best predictor of a future behavior could be the behavioral intention One of the influences on the intention is the person’s attitude toward performing the behavior Generally, attitudes can be understood as the beliefs about the results of performing a behavior and the evaluation of those expected outcomes It “represents the person's general feeling of favorableness or

unfavorableness for the behavior in question" (Ajzen & Fishbein, 1980) So the more

positive people believe in the behavior, the more likely they intend to perform it

However, since personal attitude is a very wide range to study, the author had narrowed it down by using only one of its components So, trust was considered as one of the best choices Recently, trust had been widely discussed as a key factor for a successful online business In term of a business, trust is defined as “the consumers’ belief and expectation that e-sellers are reliable and will perform their obligations faithfully” (Chuchinprakarn, n.d.) Trust is an

important factor affecting consumers’ behavior and it may contribute to the success of

technologies adoption such as e-commerce (Chen & Barnes, 2007; Holsapple & Sasidharan, 2005; Goles et al., 2009; Yang et al., 2003) It can be seen that buyers are more likely to make transactions on the internet if they know that sellers are trustworthy and reliable Unlike

physical store that people can come and try the items, online shops have almost no thing to guarantee customers that their items are exactly what people can see in their websites Because

of that, customers’ trust even plays a more critical role to the intention of purchasing online then buying by traditional method According to a report from Yahoo Finance in 2012, the top three counterfeited products in America are all related to clothing items, i.e wearing apparels and accessories, watches and jewelries, handbags and wallets It is said that one of the source to deliver fake products is the online shop since people can not touch the real items but only read their info on the websites Although the availability and easiness of buying a product is

changing since the booming of internet usage, there is an old-fashioned value that every

business needs to maintain – it’s customer’s trust

Since trust could significantly effects on e-retailing, first hypothesis is proposed as:

H1: Trust has a positive effect on the customer's intention to use e-retailing

2.3.3 Subjective norm

In a simple form, subjective norm is the opinion of one person on how he/she thinks others should view them if they perform a behavior In a research, they define subjective norm as a social factor referring to the perceived social pressure to perform or not to perform the behavior (Ajzen and Madden, 1986) Normally, a social circle of a person includes his or her peers, which constitute siblings, friends and acquaintances (Pilgrim & Lawrence, 2001)

According to Liao and Shi (2009), the influence from a social group should not be ignored since the surrounding may highly affects to individuals to perform a behavior Especially in Vietnam where people are more collectivistic than individualistic, social norm may even has a more important role impacted to the intention of people Clasen and Brown (1985) stated that

an individual who belongs to a group may adapt his habits according to that group, he then complies with the dominant traits of that group to form his own trait, intentionally or

unintentionally

Therefore, it is a reality since we know sometimes people are very positively affected by subjective norm They may not be favorable to a behavior or consequence but they do want to perform it because they believe in their referents It is the time when people feel motivated to perform a behavior According to Davis and Vekatesh (2000), working environment positively affects to the individual behavioral intention Lee, Cheung, Sia and Lim (2006) also found that the positive informational social influence could enhance the relationships between customers’ attitude about internet shopping and their intention to shop

In this research, the social norm that affects the customers’ intention to use e-retailing is referred to the customers’ co-workers and friends People working in the office meet their peers very frequently, almost day-to-day basis so they are likely to be more up to date with new

trends in fashion products As discussed earlier in this section, Vietnamese people are

collectivistic, like many other Asian countries, so they have a tendency to follow others An office employee may feel very isolated if he or she can’t catch up with the new trends in his/her office

At such, social influence is believed to have significant impact to the customers’ intention

to shop online Therefore, the second hypothesis is proposed as:

H2: Subjective norm has a positive effect on the customer's intention to use e-retailing

2.3.4 Website quality

Pinho et al (2011) was successful to discover the influence of website quality

characteristics on intention of users in applying online services They found that factors

including research facility, provides detailed information, privacy and security, interaction facilities and contacts, speed and facility of access, availability of relevant downloads, reliable and up-to-date information are the most important qualifications of a website The research results presented that website quality increases intention of the users

In another research of Bai, Law & Wen (2008) about the direct effect of website quality on customer satisfaction and purchase intention in China, they concluded that customer

satisfaction and purchase intention are directly influenced by website quality Jeong, Fiore, Niehm, and Lorenz (2009) found that rich website design elements can enhance the users’ interest and experiences, which in turn increased their intention to purchase

Wolfinbarger and Gilly (2003) stated that when customers interact with an online store they prefer to do their shopping through a technical interface and do not need the existence of any employees Therefore, the design of the website, which acts as the interface, would play an important role in influencing customer satisfaction

Therefore, hypothesis three is proposed as:

H3: Website quality has a positive effect on the customer's intention use e-retailing

2.3.5 Perceived risk in using credit card

Perceived risk in using credit card is the uncertainties of financial loss when using credit card for online purchasing Consumers are worried to give their personal information

particularly data on financial status and credit facilities to the internet because of the fact that there is no direct eye-contact and thus, consumers are concern about unauthorized use of their private information (Grabner-Kraeuter & Faullant, 2008)

Chakravorti (2003) stated that people are hesitate to make their online purchasing by credit card since they are afraid that they cannot afford their payment when the card is on due date It

is a real risk because people may over consume their money without having control on their balances It can lead to financial debt in the worst case when consumers have to pay additional fee and interest In a research conducted by Salam, Rao and Pegels (2003), they found that consumers will highly stop making transactions over internet if for some reason, the potential loss of finance is too high They stated that “the consumer’s perception of risk associated with the transaction will tend to predominate in his/her decision to engage in a transaction”

At the result of that, the hypothesis four is proposed as:

H4: Perceived risk in using credit card has a negative effect on the customer's use e-retailing 2.3.6 Demographic variables

In testing the customers’ intention use e-retailing, this research also included some

demographic variables The purpose is to know whether characteristics of consumers have any significant effect on their intention to perform the internet shopping Three variables are chosen

to investigate, they are gender, income and age

In 2002, Burke (as cited in Suki, 2011) stated that demographics (gender, age, education) are key moderators in the online shopping environment Whitely (1997) also confirmed that males are more positive and less anxious about technology innovations, which are very likely

to happen in the world of online retailing As growing older, people are less likely to access online information and using websites for shopping (Suki, 2011)

Therefore, the fifth hypothesis is proposed as:

H5: Characteristics of customers have significant difference on their intention use e-retailing

In summary, this chapter is written to review researches conducted in the past to find the model that can predict the customers’ intention to use e-retailing By revising TRA model and other studies, four factors were chosen to form the research model They are trust, subjective norm, website quality and perceived risk in using credit card From the four factors, only perceived risk in using credit card has the negative impact on the customers’ intention

In addition, three demographic variables were added to the model to find out if gender, age

or income affect to the customers when they choose to shop online

Chapter 3

RESEARCH METHODOLOGY

This chapter consists of four main parts, first part is about the research process that illustrate the way this research was conducted, second part is about the sampling data, third part is about pilot test and statistical method, last part is about measurement scale used in the survey

questionnaire

3.1 Research process

The research process is described in Figure 3.1:

Figure 3.1 Research process

The first step of the research was to define the research problem Then, second step was to review the literature to propose the research models and hypotheses Third step was designing the survey questionnaire from what had been reviewed Next step was to conduct a pilot test to

Design research problem

Literature review and hypotheses

Design survey questionnaire

Pilot test

Data collection

Data analysis and results

refine the questionnaire Continuing, fifth step was to collect data from chosen respondents Lastly, reliability test, EFA and multiple regression analysis were used to test the measurement scale and research hypotheses

3.2 Measurement scale of factors

First part of the questionnaire consists of three demographic questions including gender, age and income of the respondents Then, respondents were asked to give their opinion about the e-retailing in the next part consisting of 19 questions They would give their opinions about trust, subjective norm, website quality, perceived risk in using credit card and the intention to use e-retailing In this part, questions were measuring in interval five-point Likert scale – they are (1) – Totally disagree, (2) – Disagree, (3) – Neutral, (4) – Agree and (5) – Totally agree

Trust (TR): there are five statements to ask to measure the customers’ trust toward the

e-retailing shop, derived from Doney and Cannon (1997)

Subjective norm (SN): three questions are used to capture the information about this

variable, adopted from Liao and Shi (2009)

Website quality (Wb): measurement scales from Francis (2007) is used in addition with one

statement from the author, totally there are five items to measure this construct

Perceived risk in using credit card (PR): the perceptions of customers on using credit cards

is measured by three items, based on Liang, Lu and Tu (2006)

Intention to Use E-retailing (Int): four statements to ask to measure the customers’ intention

to use e-retailing, based on Lim and Ting (2012)

The list of all questions used in the survey is summarized in Table 3.1

Table 3.1 Scale items of factors

Demographic

questions

D1 Gender D2 Age

Trust (TR)

Trust1 Most on-line sellers provide us with credible information

Trust2 Most on-line sellers pay close attention to their customers’

welfare

Trust 3 Most on-line sellers are reliable

Trust 4 Most on-line sellers are capable of responding to their customers’ needs

Doney and Cannon (1997)

Francis (2007) Author added question Wb5

Credit 2 You are worried about your financing in the future

Credit 3 Bank system errors will bring you some troubles in the future, such as being double charged or the transaction cannot be completed

Liang, Lu and Tu (2006)

Intention to Use

E-retailing (Int)

Int1 I intend to continue purchase products from the Internet in the future

Int2 I would likely visit an online shopping site to shop for my needs

Int3 I plan to do more of my shopping via online shopping sites

Int4 There is a substantial chance that I would purchase different products from an online retailer

Lim and Ting (2012)

3.3 Pilot test

Before conducting the main survey, a pilot test was made At this stage, five people were chosen, from various companies and industries, to ask if they understood the survey clearly without any explanation from the author The purpose of this part is to refine the questions when it was translated to Vietnamese Feedbacks of respondents was used to enhance the

readability and quality of the questions Next, the questionnaire was refined after collecting feedbacks of the pilot test from respondents

3.4 Data collection

Primary data of main survey was collected by sending out surveys to respondents via

emails and direct paper All respondents are informed that their data would be kept

confidentially, any information without their permissions would not be public As written in Chapter 1, respondents were all office employees worked in Ho Chi Minh city In this paper, data were all collected in the period of mid July 2014 to August 2014

Since the number of questions in the survey are 19 (excluded the demographic questions), the total of respondents should be at least 95 (5 times than the number of questions) to ensure that the data would be sufficient to run statistical analysis

In order to collect feedbacks, hard copy surveys are sent handedly to respondents to ensure that they would answer all questions completely For the electronic versions, questionnaire was designed by using Google form Then, emails were sent to each respondents, all are office employees, there is a link to the survey in that email

There were 200 surveys sending out in both types From the feedbacks received, there were

150 found to be usable The others had to be ignored due to some errors such people did not complete 100%, people answered all questions with identical values, etc However, 150 is considered a good number to be analyzed in term this research

3.5 Data analysis method

Collected data were coded before analyzing in SPSS software First, reliability test was done by examining the Cronbach’s Alpha of the constructs in research model Next, EFA was

conducted to verify the validity of items in the constructs Then, multiple regression analysis was used to test the research hypotheses After that, ANOVA analysis was used to test the difference of demographic variables on the intention of consumers to use e-retailing Pre-

requisites of those tests are included in the next chapter when each test is illustrated

In summary, this chapter presented the process in which the research was conducted There are six steps that were performed from defining the research problem, literature review and hypotheses, design questionnaire, pilot test, data collection to data analysis and results The chapter also discussed the statistical methods used in testing measurement scale and research hypotheses, including reliability test, EFA and multiple regression model

Chapter 4

DATA ANALYSIS

This chapter detailed the steps to analyze the collected data in order to test the research hypotheses It consists of four main parts, including descriptive statistics, reliability test, EFA and multiple regression analysis

Characteristics of the dataset were examined by the three demographic questions in section

1 of the questionnaire From the data collected, the author would summarize the data as below:

- Gender: 58 of 150 respondents were male, accounted for 39% The rest were female, accounted for the 61% of respondents

- Age: of the 150 people, only 3 are in the age of 18 to 22 years old (2%), 59% of

respondents were in the age to 23 to 30 (88 people) 49 people (33%) were 30 to 40 years old The rest 10 of people were above 40 years of age, accounted for 7%

- Income: in this category, most of people were asked to complete the survey had income lower than 15 million VND per month Of the three range below 15 million VND, the number were almost equally distributed 32% of all people received less than 5 million VND per month (48 people), 29% had 5 million to 8 million VND per month (43 people) and 41 people earned

8 million to 15 million per month (27%) The last 12% of total people could earn more than 15 million VND per month (18 people)

Summary of the sample characteristics is listed in the Table 4.1

Table 4.1 Descriptive statistics of respondents

a construct should be higher than 0.3 to indicate that those items are good components of the factors Cited by Chong et al (2010), a coefficient ranges from 0.1 to 0.29 forms a weak

correlation among components, from 0.3 to 0.49 forms the medium one and above 0.5 forms a strong correlation

Results of the reliability tests, included Cronbach’s alpha coefficients and correlation matrix are illustrated in Table 4.2