Factors influencing the adoption of internet banking a case study in ho chi minh city

This research proposes the model that comprises five variables: Perceived usefulness, Perceived ease of use, Attitude, Subjective norm and Perceived behavioural control.. The results rev

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

MASTER OF BUSINESS (Honours)

SUPERVISOR: PHAM QUOC HUNG

Ho Chi Minh City – Year 2014

TABLE OF CONTENTS

ABSTRACT………1

CHAPTER 1: INTRODUCTION 2

1.1 Background to the study 2

1.2 The advantages of electronic banking services 4

1.3 Difficulties in implementing internet banking service 4

1.4 Problem statement 5

1.4.1 Potential factors can improve the development of electronic banking services 5

1.4.2 The reality of electronic banking using and problem statement 7

1.5 Research objective 8

1.6 Limitation 8

1.7 Implication 8

1.8 Structure of Thesis 9

1.9 Summary 10

CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES 11

2.1 The relevant theories 11

2.1.1 The theory of reasoned action 11

2.1.2 Theory of planned behaviour 13

2.1.3 Technology acceptance model 14

2.2 Research model and hypotheses 16

2.2.1 Perceived usefulness 16

2.2.2 Perceived ease of use and perceived behavioural control 18

2.2.3 Subjective norm and attitude 19

2.2.4 The moderating role of perceived behavioral control 20

CHAPTER 3: METHODOLOGY 22

3.2 Questionnaire development 23

3.2.1 Measurement scales 23

3.2.1.1 Measurement of perceived usefulness and perceived ease of use 23

3.2.1.2 Measurement of attitude 24

3.2.1.3 Measurement of subjective norm 25

3.2.1.4 Measurement of perceived behavioural control 26

3.2.1.5 Measurement of intention to use internet banking 26

3.2.2 Building questionnaire 26

3.3 Description of the pilot study 27

3.4 The sample 28

3.5 Methods of data analysis 29

3.5.1 Reliability 29

3.5.2 Exploratory factor analysis 29

3.5.3 Regression analysis 30

3.5.3.1 The Path model 30

3.5.3.2 Simple linear regression and multiple linear regression 31

3.6 Chapter summary 32

CHAPTER 4: DATA ANALYSIS AND RESULTS 33

4.1 Descriptive analysis 33

4.2 Measure scale assessment 33

4.2.1 Reliability analysis 33

4.2.1.1 Reliability analysis for perceived usefulness 33

4.2.1.2 Reliability analysis for perceived ease of use 34

4.2.1.3 Reliability analysis for attitude 34

4.2.1.4 Reliability analysis for subjective norm 34

4.2.1.5 Reliability analysis for perceived behavioural control 35

4.2.1.6 Reliability analysis for intention to use internet banking 35

4.2.2 Exploratory factor analysis 35

4.2.2.1 Condition for exploratory factor analysis 35

4.2.2.2 Results of exploratory factor analysis 36

4.3 Testing the hypothesis 37

4.3.1 Regression Model 1 37

4.3.2 Regression Model 2 38

4.3.3 Regression Model 3 40

4.3.4 Regression Model 4 40

4.3.4.1 Solving the moderator 40

4.3.4.2 Analysis result 41

CHAPTER 5: CONCLUSION 44

5.1 Overview 44

5.2 Main findings 44

5.3 Practical implications 45

5.4 Limitations 46

REFERENCES 46

APPENDIX 48

APPENDIX 1 54

APPENDIX 2 59

APPENDIX 3 62

APPENDIX 4 64

APPENDIX 9 65

APPENDIX 6 66

APPENDIX 7 69

APPENDIX 9 78

ABSTRACT

Vietnam economy and bank system had to face many difficulties in 2011 and

2012 This challenge opens a new trend for banks Electronic banking is a modern service

that banks armed to gain market and improve profit Since, many financial institutions are

fostering to provide many banking services to customers via the mobile phone, computers

that are connected internet Financial transactions are conducted via electronic banking

have lower cost and faster speed than physical transactions However, the number of

people who decide to adopt and use such technologies is still low, particularly in Ho Chi

Minh City Hence, there is a need to identify relevant factors that influence the adoption

and usage of Internet banking in HCMC Technology Acceptance Model (TAM) and

Technology of Planed Behaviour (TPB) are two basic models to investigate the adoption

and usage of Internet banking This research proposes the model that comprises five

variables: Perceived usefulness, Perceived ease of use, Attitude, Subjective norm and

Perceived behavioural control The results reveal that Perceived usefulness, Perceived

ease to use, Attitude, Subjective norm and Perceived behavioural control have a

significant association with the adoption and usage of Internet banking The research

result has been a finding so that based on it, leaders of commercial banks will make an

effective strategy to enhance customer satisfaction and improve operational efficiency

Contributions of this study are a basis for researchers, students for developing

further research to practical applications

Key words: Perceived usefulness, Perceived ease of use, Attitude, Subjective

CHAPTER 1: INTRODUCTION 1.1 Background to the Study

Banks are important in every country and have a significant effect in supporting

economic development through efficient financial services They provide a mechanical

system to group saving and convert them into investment For over a decade, banks

have been affected by changes associated with globalization and financial

liberalization Reacting to these changes, banks expand the choice of services

offered to the customers and increase their reliance on technology (Smadi and

Al-Wabel, 2011)

Banks have been significantly affected by the evaluation of technology;

competition between banks has forced them to find new market to expand, and the

number of financial institutions that offer electronic banking products increased Hence,

banks have begun to offer electronic banking services to improve the effectiveness

of distribution channels through reducing the transaction cost and increasing the

speed of services

The definition of electronic banking varies among researchers, because electronic

banking refers to types of services through which bank customers can request information

and carry out most retail banking services via computer, television or mobile phone

(Daniel, 1999) Electronic banking is referred to as using of internet as delivery mode for

the provision of services like opening a deposit account, electronic bill payments, and

online transfers These services can either be provided by the banks having physical

offices and by creating a website and providing services through that or services can be

provisioned through a virtual bank as well (Sana haider sumra, 2011) Recently,

electronic banking has become the way for the development of banking system, and the

role of electronic banking is increasing in many countries It offers opportunities to

create services processes that demand few internal resources, and therefore, lower cost

As well as it provides wider availability and possibility to reach more customers

From the customers' point of view, electronic banking allows customers easier

access to financial services and time saving in managing their finance (Almazari and

Siam, 2008; Ayrga, 2011; Tan and Teo, 2000) Indeed, the emergence of electronic

banking has prompted many banks to develop marketing and information technology

strategies in order to stay competitive Venkatesh, Morris, and Davis (2003) noted that

the successful implementation of information systems is dependent on the extent to

which such a system is used and eventually adapted by the potential users

Information system implementation is not likely to be considered successful if users

are unmotivated to use that type of technology, and thus it will not bring full benefits to

the organization In order to motivate customers to use electronic banking, banks must

make key improvements that address the customers' concerns

Although Internet banking introduces many benefits for banks and customers;

customers still fear from the risk of electronic banking services Some customers feel

that Internet banking services could make them lose their money Hence, there are still

Hiltunen, 2007; Littler and Melanthiou, 2006; Natarajan, Balasubramanian, and

Manickavasagam, 2010) Without understanding what motivates the customers to use

Internet banking services, banks will not be able to take actions to increase the use of

such services Therefore, it is necessary to understand the key factors that influence

the adoption of electronic banking among the banking customers

1.2 The Advantages of Electronic Banking Services:

Electronic banking services have many benefits for both banks and customers

From the customers’ point of view, Aladwani (2001), found that electronic banking

provide faster, easier and more reliable services to customers Payment services through

Internet banking, customers can conduct banking transactions do not need go to the bank,

not restricted by geographical area They can sit at home to ordering, purchase a variety

of goods and services quickly Those services help customer saving time and costs

For banks, Internet banking is conceded a strategy weapon; help them to achieve

competitive advantage and increase their market share Furthermore, using Internet

services can save the cost of resources, which are needed for traditional baking services

(Jayawardhena and Foley, 2000)

The number of individual customers using the internet and online payment via the

internet is increasing In particular, the young customers can adaptable easily the new

information technology The commercial banks also save operating costs in counting and

storage of cash

1.3 Difficulties in Implementing Internet Banking Service

Vietnamese are afraid when dealing online In particular, a number of Vietnam

enterprises still consider with the payment service via Internet banking, do not have the

habit of Internet banking transactions Some customers concern about the safety of

payment transactions through Internet banking channels

Age factor, the older customer has limited to access new technologies and use of

banking services on the computer as well as on mobile phone

Social factor, the habit of using cash is a major obstacle

Legal factor, whether Internet transaction law was effect, but crime in this area has

not been discuss in detail

The commercial banks need to invest in technology and infrastructure for effective

implementation of Internet banking services Some banks have not invested properly, so

infrastructure cannot meet the demand for payment transactions, sometimes happens the

interrupt of customer transactions

1.4 Problem Statement

Internet banking is popularly known is the recent trend in banking transition and

holds a bright future that is promising over and above the one brought by Internet

banking Internet banking provided personalized, anytime - anywhere banking services

Nevertheless, with all the laudable benefits of Internet banking, it is yet to gain larger

scale adoption, especially in the emerging economies

1.4.1 Potential Factors Can Improve the Development of Electronic Banking Services

According to the State Bank of Viet Nam, the rate of cash payment per total means

of payment has declined over 9 years (from 31.6% in 1991 to 11.8% in 2012) This is an

important prerequisite for the development of electronic payment services in Vietnam

See it more clearly in appendix 3

The rate of non-cash payment is more and more increasingly However, both the

proportion and the value of payment with bankcard were still very low when comparing

with other payment means This rate was 0.2% in total non-cash payment

The Development of Personal Accounts:

According to Vietnam Bank Card Association, the development of personal

accounts in Vietnam was very high, 124% average growth per year over the period

2006-2011 At June 30, 2011, the commercial banks have issued 36 million personal accounts,

for 17 million people (about 20% of Vietnam's population)

The Bank Card Market

The bank card, especially the domestic debit card has became a popular payment

mean It has developed rapidly in recent years The amount of card that was issued on

june 30th, 2012 got 47.22 million Especially, the rate of debit card got 94%

The increasing of bank card became the potential opportunity for bank in

improving the Internet banking services See it more clearly in 3

The System of ATM (Automated Teller Machine) and POS (Point of Sale)

The equipment network that served payment through card was improved

obviously The amount of ATM and POS machine increased considerably There were

13,920 ATM machines and 89,957 POS machines on june 30th, 2012 See it more clearly

in appendix 3

*The Development of Electric Means:

The amount of mobile phone subscriber and internet user increased quite

regularly, this was a good opportunity for developing electronic banking services through

mobile phone and internet See it more clearly in appendix 3

1.4.2 The Reality of Electronic Banking Using and Problem Statement

Although, the developing Internet banking of banks met many advantages, the

outcome of this business activity was still modest According to the commercial banks

survey of Nielsen Vietnam in August 2011, there are less than 3% banking customers

using Internet banking services This figure is still very low when compare with

developed nations in Asia It means that Internet banking service in Vietnam is a

potential market in future The Internet banking payment market has developed more

strongly At the end of March 2012, the amount of Internet banking user increased 35%

compared with 2010 However, this improvement was not really corresponding to the

above potential factors of Vietnam, especially in HCMC Ho Chi Minh City was the area

that held over one-third the financial and monetary activity market share of Vietnam So,

the above statistics of Vietnam also could represent the statistics of HCMC The

following figure showed the internet users that used internet to carry out financial

transaction were the lowest level See it more clearly in appendix 3

During the last ten years, there was many studies concerning about the adaption

and usage of Internet banking (Chan and Lu, 2004; Jayawardhena and Foley, 2000;

Yiu, Grant, and Edgar, 2007) However, most of these studies focused on the West and

the United States In contrast, little is written in developing countries (Al-Somali,

Gholami, and Clegg, 2009; Jabnoun and Al-Tamimi, 2003) In Asian region, most

studies concentrated to developed Asian countries (Singapore, Hong Kong, Taiwan,

Malaysia, etc…) than developing countries like Vietnam, Lao, Cambodia

In Vietnam, Internet banking services are still in the initial stages of development

Thus, there is a need to study and understand users’ acceptance of Internet banking

services in order to identify the factors affecting the adoption of Internet banking

As a result, there is a necessity to research about the intention to use Internet

banking in Ho Chi Minh City, Vietnam The finding of this study can help the marketers

in the banking sector offer more suitable marketing strategies in their field in order to

make higher attractiveness with Internet banking service

1.5 Research Objective

Specifically the objective of this study is to investigate and validate the factors

influencing the adoption and usage of Internet banking

The purpose of this study is to investigate and validate the factors influencing the

adoption and usage of Internet banking in Ho Chi Minh City, Vietnam The study will

investigate these factors by using two different models: Technology Acceptance Model

(TAM) and Theory of Planed Behaviour (TPB) The finding of this research may support

some important information for leaders or marketers in doing their marketing strategies in

banking industry Marketers may base on these hypotheses to build suitable marketing

plans for customers in Viet Nam

1.6 Limitation

This study is conduct in Ho Chi Minh City, one of the biggest economic centers of

Vietnam The research object is the customers who are using the bank account, has

registered to use Internet banking service Due to limited time and cost, the research

surveyed about 400 customers of banks in HCMC

The data are collected in Ho Chi Minh City, one of the biggest economic centre of

Viet Nam However, there are still some differences from other provinces such as culture,

income, knowledge… So, the result of research just can undertake in the Ho Chi Minh

City market

The research will assess only in the adaption and usage of Internet banking The

other factors such as the priority in choosing the bank, other services in banking… are out

of the topic of this research

1.7 Implication

This study has important implications for both practical business (leaders of

commercial banks, marketing managers…) and academic (researchers, students of the

business administration department…) as follow:

The research result has been a finding so that based on it, leaders of commercial

banks will make an effective strategy to enhance customer satisfaction and improve

operational efficiency Marketing managers will consider to set up an appropriate

communicate strategy

The results of this study are a basis for researchers, students for developing further

1.8 Structure of Thesis

This thesis concludes five chapters

Chapter 1 provides an introduction to Internet banking services and sets out the objective

and significance of this research

Chapter 2 literature review and hypotheses

Chapter 3 methodology

Chapter 4 data analysis and results

Chapter 5 conclusion

1.9 Summary

The thesis begins the introduction by discussing the research background and

importance of Internet banking in business and banking industry Then the problem

statement was defined to take a closed look at using electronic banking in Viet Nam

Finally, this chapter discussed the research implications The most important

thing to remember is that Internet banking provide vast amount of opportunities to the

commercial banks and customers This is a fact acknowledged all over the world, and not

the least in HCMC where mobile usage and computer technology in general are very

popular

CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES 2.1 The Relevant Theories

2.1.1 The Theory of Reasoned Action (TRA)

The Theory of Reasoned Action (Ajzen, 1975) posits that individual behaviour is

driven by behavioural intentions where behavioural intentions are a function of an

individual's attitude toward the behaviour and subjective norms surrounding the

performance of the behavior: Behavioural Intention = Attitude + Subjective Norm In

short, if a person's attitude and subjective norms are known, the behavioural intention can

be predicted

Figure 7: Theory of Reasoned Action

Attitude toward the behaviour is defined as the individual's positive or negative

feelings about performing a behaviour

Subjective norm is defined as an individual's perception of whether people

important to the individual think the behaviour should be performed

Theory of Reasoned Action suggests that a person's behaviour is determined by his/her

intention to perform the behaviour and that this intention is, in turn, a function of his/her

attitude toward the behaviour and his/her subjective norm The best predictor of

behaviour is intention Intention is the cognitive representation of a person's readiness to

perform a given behaviour, and it is considered to be the immediate antecedent of

behaviour This intention is determined by three things: their attitude toward the specific

behaviour, their subjective norms and their perceived behavioural control The theory of

planned behaviour holds that only specific attitudes toward the behaviour in question can

be expected to predict that behaviour In addition to measuring attitudes toward the

behaviour, we also need to measure people’s subjective norms – their beliefs about how

people they care about will view the behaviour in question To predict someone’s

intentions, knowing these beliefs can be as important as knowing the person’s attitudes

Finally, perceived behavioural control influences intentions Perceived behavioural

control refers to people's perceptions of their ability to perform a given behaviour These

predictors lead to intention A general rule, the more favourable the attitude and the

subjective norm, and the greater the perceived control the stronger should the person’s

intention to perform the behaviour in question

The model has some limitations including a significant risk of confounding

between attitudes and norms since attitudes can often be reframed as norms and vice

versa A second limitation is the assumption that when someone forms an intention to act,

they will be free to act without limitation In practice, constraints such as limited ability,

time, environmental or organisational limits, and unconscious habits will limit the

freedom to act TPB attempts to resolve this limitation

2.1.2 Theory of Planned Behaviour (TPB)

The theory of planned behaviour (TPB) was developed by Ajzen in 1988 The

theory proposes a model which can measure how human actions are guided It predicts

the occurrence of a particular behaviour, provided that behaviour is intentional The

theory of planned behaviour extended the theory of reasoned action to explain

behavioural conditions not entirely under volitional control, and stressed the influence of

attitude, subjective norms and perceived behavioural control beliefs on behavioural

intention and actual usage It was also used by Liao et al (1999) in the context of virtual

banking adoption and only partially explained the relationships

The model is out lined in the next figure and represents the three variables which

the theory suggests will predict the intention to perform a behaviour The intentions are

the precursors of behaviour Ajzen and Fishbein formulated in 1980 the theory of

reasoned action (TRA) This resulted from attitude research from the Expectancy Value

Models Ajzen and Fishbein formulated the TRA after trying to estimate the discrepancy

between attitude and behaviour

This TRA was related to voluntary behaviour Later on behaviour appeared not to

be 100% voluntary and under control, this resulted in the addition of perceived

behavioural control With this addition the theory was called the theory of planned

behaviour (TPB)

Because behaviour can be deliberative and planned, the theory of planned

behaviour is a theory which predicts deliberate behaviour

Figure 8: The Theory of Planned Behaviour

The variable names in the model reflect psychological constructs and so they have

the meaning within the theory

2.1.3 Technology Acceptance Model (TAM)

The Technology Acceptance Model, developed by Davis, Bagozzi and Warshaw

(Davis 1989; Davis et al 1989), replaced the attitude measures of Fishbein and Ajzen's

theory with two technology acceptance measures: perceived ease of use and perceived

usefulness

Perceived usefulness is defined as the degree to which a person believes that the

use of a system will improve his performance Perceived ease of use refers to the degree

to which a person believes that the use of a system will be effortless The term 'external

variables' is used to describe all system design features which have a direct influence on

perceived usefulness and perceived ease of use Similar to the Theory of Reasoned

Action, users' perceptions determine the attitude towards using the information system

This attitude determines the intention to use, which in turn leads to actual system use

Figure 9 shows an overview of the Model According to Dishaw and Strong (1999), there

are two key differences between the Model and the theory of reasoned action The first

defines perceived easeof use and perceived usefulness as external variables to determine

the intended use rather than the actual use The Model also does not include subjective

norms Lin (2007), based on data from Taiwanese online bookstores, gives an empirical

comparison of the theory of reasoned action with the theory of planned behaviour in

regard to aptness of explaining consumer intentions to shop online The theory of planned

behaviour extended the theory of reasoned action to explain behavioural conditions not

entirely under volitional control, and stressed the influence of attitude, subjective norms

and perceived behavioural control beliefs on behavioural intention and actual usage It

was also used by Liao et al (1999) in the context of virtual banking adoption and only

partially explained the relationships

Figure 9: Technology Model Acceptance by Davis et al (1989)

2.2 Research Model and Hypotheses

The Proposed Research Model

Based on the theoretical models developed, this research proposes the above

model with regard to the adoption of internet banking This model shows the relationship

between intention to use and fives components including perceived usefulness, perceived

ease to use, attitude, subjective norm and perceived behavioural control In this proposed

model, attitude towards using internet banking mediates the relationship between four

variables: Perceived usefulness, perceived ease of use, subjective norm and intention to

use

2.2.1 Perceived Usefulness (PU)

Perceived usefulness is defined as “the degree to which a person believes that

using a particular system would enhance his or her job performance” (Davis, 1989, p

320) In general, when the users found that the system is useful for them, then they will

have the intention to use it and lead to the actual usage of the system Based on previous

research using the TAM model, it is found that perceived usefulness is the primary

antecedent that determines the behavioural intention (Davis, 1989; Venkatesh & Davis,

2000) Furthermore, the perceived usefulness was found to significantly predict

perceived behavioural control in term of electronic services (Horst et al., 2007) So, this

research hypothesizes the following hypothesis:

H3a: Perceived usefulness positively related to perceived behavioural control

Finally, Davis (1989) has supported that the cognitive dimension includes

perceived usefulness and perceived ease of use and they are the most important factors

influencing attitudes Perceived usefulness and perceived ease of use affect a user's

attitude about the use of a new technology So, the hypothesis shows the relationship

between perceived usefulness and attitude is proposed:

H1a: Perceived usefulness positively related to attitudes towards the use of internet banking

Actually, Internet banking product that gives by banks always has its usefulness

However, when customer perceives it usefulness or think that its utilities can enhance

customer’s job performance they will have a positive feeling The feeling about job

performance is also customer’s attitude towards using Internet banking

In my own opinion, perceiving the Internet banking’s usefulness can improve the

Perceived behavioural control Because, when Internet banking can enhance the job

performance, customer will try to fulfill their ability to use Internet banking proficiency

So, perceived usefulness has a positive relationship with Perceived behavioural control

2.2.2 Perceived Ease of Use (PEOU) and Perceived Behavioural Control (PBC)

Perceived ease of use is defined as “the degree to which a person believes that

using a particular system would be free from effort” (Davis, 1989, p 323) All else being

equal, an application perceived to be easier to use is more likely to be accepted by the

users (Davis, 1989) A considerable of prior studies supported the significant effect of

perceived ease of use on behavioral intention, either directly or indirectly through

perceived usefulness and attitude (e.g., Davis et al., 1989; Jackson et al., 1997;

Venkatesh, 1999) This study seeks to reuse such relationships in the context of internet

banking Accordingly, this research hypothesizes that:

H1b: Perceived ease of use positively related to attitudes towards the adoption and usage of internet banking

One more important definition is perceived behavioural control, which reflects

perceptions of internal and external constraints on behavioural (Ajzen 1985, 1991)

Otherwise, perceived behavioural control mentions people's perceptions of their ability to

perform a given behavior Most studies find a positive effect of perceived behavioral

control (PBC) on behavioral intentions In addition, Pavlou (2006) indicate that the

perceived ease of use of searching for online information and making an online purchase

correlates highly with the PBC of both behaviors (r = 43, r = 52, respectively) Other

researchers similarly reveal strong correlations between PEOU and PBC (Yi et al 2005)

Based on above theories, this study shows the following hypothesis:

H3b: Perceived ease of use positively related to perceived behavioral control toward the adoption and usage of internet banking

There is also some discussions about two hypothesizes When customers think

Internet banking is simple and easy to use with them, they will improve their

performance by using IB Hence, the higher perceived ease of use, the higher level of

Perceived behavioral control and attitude towards intention to use IB

2.2.3 Subjective Norm and Attitude

Subjective norm reflects perceptions that significant referents desire the individual

to perform or not perform a behavior (Fishbein and Ajzen, 1975) In another words,

subjective norm also gives an individual's perception of whether people important to the

individual think the behaviour should be performed Hee Sun Park (2000) found that

attitudes and subjective norms have a significant relationship Besides, Attitude toward

the behaviour is defined as the individual's positive or negative feelings about performing

a behaviour (Ajzen, 1975).Attitude toward behavior refers to the degree to which a

person has a favourable or unfavourable evaluation or appraisal of the behavior in

question (Ajzen, 1991, p.188) Attitude towards usage reflects feelings of favourableness

or unfavourableness towards using the technology (Taylor and Todd, 1995) The TPB

declares that behavior is a direct function of behavioural intention and perceived

behavioural control and this behavioural intention is constituted by one’s attitude and

subjective norm (Taylor and Todd, 1995) So, TPB demonstrated the impact of attitude

on intention to use internet banking Hence, based on above theories, this study shows

two following hypotheses:

H2: Subjective norm positively related to attitude towards using internet banking

H4: Attitude will positively related to intention to use internet banking

Basing on positive experience, most of customer also ask someone who important

with them before deciding to buy or use something For example: friend, co-worker,

family who used to buy that product or service A good comment will foster customer’s

attitude towards using IB So, excepting other aspects, subjective norm positively related

to attitude Certainly, a good feeling about job performance also have positively relate to

intention to use IB

2.2.4 The Moderating Role of Perceived Behavioral Control:

The definition of perceived behavioral control has been mentioned in above part

So, this paragraph just focuses on the moderating role of perceived behavioral control

With the moderating role, perceived behavioral control determines the strength of the

relationship between attitude and intention to use internet banking

A moderator is a variable that influences the strength or the direction of a

relationship between a predictor variable and an outcome variable (Grayson et al., 2004)

Ajzen's (1991) study explores that perceived behavioral control improves intention in

relation to positive attitudes and subjective norms However, Eagly & Chaiken (1993)

argue that PBC produces positive intention when an individual forms a positive attitude,

but not when an individual form a negative attitude Their investigation shows that people

will not perform the behavior if they are confident to do so Therefore, there is a

possibility that PBC moderate attitudes and normative effects of intention Hence, the

above theories support this hypothesis:

H5: Perceived behavioural control moderates the relationship between attitude towards using internet banking and intention to use internet banking

See appendix 9 to have the total view of definition that are mentioned in this chapter

CHAPTER 3: METHODOLOGY

This session gives the research methodology that uses to test the mentioned

research model It presents the research design, development of survey questionnaire,

quantitative study, and main survey It also defines how to collect data and the way

analyses the collected data to test the proposed research hypotheses

3.1 Research Design

This study used two research methods The first phase, qualitative research

identifies the models, factors, suitable measurement variables for research in HCMC

Through the previous relevant researches, the questionnaire was built then running the

pilot study for checking the efficiency and the meaning of the questions The pilot study

was purposed to explore and define the relevant items and building a completed

questionnaire The second phase, main survey was the main approach of this study The

goal is to identify the factors affecting customers’ intention to use Internet banking

service Nguyen (2007), Churchill (1979) and Steenkamp & van Trijp (1991) given the

process that built and accessed the scale Basing on those researches and the background

of this study, the research process included the steps as illustrated in the following figure:

3.2 Questionnaire Development

3.2.1 Measurement Scales

The measurement scales used in this study was multi-item five point Likert scales,

which developed and validated by previous researches (Davis et al, 1989); Igbaria et al,

1997; Fishbein & Ajzen, 1975; Taylor & Todd, 1995; Chua, 1980 and Ajzen, 1991) The

following items in this table are the foundation for building questionnaire

3.2.1.1 Measurement of Perceived usefulness and Perceived ease of use

Perceived usefulness and ease of use are important technology adoption

previous study has shown that perceived usefulness and perceived ease of use are

determinants of intention to use mobile services (Igbaria et al., 1997)

Basing on Davis et al (1989), Igbaria et al (1997), Nguyen and Barrett (2006) and

others studies, these variables with a five-point Likert scales were primarily used to

measure customer‟s intention to use Internet banking Perceived usefulness was

measured by six items and perceived ease of use was measured by five items The

folowing table shows items that measure two above variables

Scale of Perceived usefulness and Perceived ease of use

Construct Coding of variables Items Adapted from

Perceived

usefulness PU1

Internet banking (IB) helps me

save my time (Davis, 1989), (Davis et

al., 1989), Nguyen and Barrett (2006), (Venkatesh & Davis, 2000), (Lederer et al., 2000), (Luarn & Lin, 2004), (Wang et al., 2003), (Igbaria et al ,1997), (Fishbein & Ajzen, 1975)

PU2 Help me complete my banking

transactions faster PU3 Help me enhance the efficiency

of my banking transaction PU4 Help me to do my banking

transactions easier PU5 Using IB is fit for my work PU6 IB is very useful Perceived ease of

I feel easy when learning to use

IB

(Davis, 1989), (Davis et al., 1989), Nguyen and Barrett (2006), Igbaria

et al (1997), Taylor and Todd (1995)

PEOU2 It was easy to become skilful at

using IB PEOU3 IB help me do every transaction

I want PEOU4

My interaction with interface of

IB system is clear and understandable PEOU5 IB is easy to use

3.2.1.2 Measurement of Attitude

Measurement of attitude towards using intention to use Internet banking was based

on the Taylor and Todd (1995) scales Attitude was measured by four five-point Likert

items Making the measurement of attitude is more clearly, the same scales to measure

this contruct also were found in studies such as, Triandis (1977) and Bagozzi (1984),

Fishbein and Ajzen (1975) The following table shows more clearly each item and its source

Scale of Attitude

Construct Coding of variables Items Adapted from

Attitude ATT1 I think use IB would be

a good idea

(Fishbein & Ajzen, 1975), Triandis (1977) and Bagozzi (1984), Taylor and Todd (1995)

ATT2 I think use IB is a wise

decision ATT3 I like to use IB ATT4 Using IB services is an

exciting idea

3.2.1.3 Measurement of Subjective norm

Subjective norm was measured by five items, it based on the five-point Likert

scales that developed by researchers such as, Taylor and Todd(1995), Chua (1980), Nor

and Pearson (2007)

Scale of Subjective norm

Construct Coding of variables Items Adapted from

Subjective norm SN1 My friends would think

that I should use IB

Taylor and Todd (1995), Chua(1980), Nor and Pearson(2007) SN2 My family would think

that I should use IB SN3 People important to me

would think that using

IB is a good idea SN4 People who influence

my decisions think that I should use IB SN5 I use IB because I know

it through many media facilities

3.2.1.4 Measurement of Perceived behavioural control

Previous research studying technology adoption and usage behavior has related

perceived behavioural control primarily to constraint to technology usage (Taylor and

Todd, 1995), especially the ease or difficulty of using the new technology This construct

was measured by three five-point Likert items, developed Taylor and Todd (1995), Shih

IB

3.2.1.5 Measurement of Intention to Use Internet Banking

Intention to use Internet banking was measured by four items, developed by Ajzen

(1991) This construct used a five-point Likert scale, and modified by the researchers as

follow:

Construct Coding of variables Items Adapted from

Intention to use Internet

banking

IT1 I intend to use IB

Ajzen (1991), Taylor and Todd (1995)

IT2 I have the plan to use IB IT3 I want to use IB IT4 I decide to use IB

So, there are twenty seven items in this section and all these items were measured

by a five-point Likert scale from1 = strongly agree to 5 = strongly disagree

3.2.2 Building questionnaire

The questionnaire with a five-point Likert scale was used to collect the data for

researching the proposal model In another word, the tool for collecting data is

questionare and a structured questionare is used in quantitative research method A good

questionnaire helsps researchers to collect high reliable data (Nguyen, 2011) Items

selects for explaining the concept are mostly adapted from previous studies to ensure the

validity Observed variables measuring perceived usefulness, ease of use, attitude,

subjective norm, perceived behavioral control, and intention to use was taken from

previousstudies

The questionnaire contains three main sections:

Section 1: General information to get the basic information about the respondent (using

bank account, Internet banking) This information chooses the target respondent to study

Section 2: The main part includes questions which are based on a scale of measurement

was proposed for the research The items were measured on the Likert 5-point scale from

1 to 5 (strongly agree, agree, neutral, disagree, and strongly disagree)

Section 3: Questions get information about demographics characteristics of respondent

Finally, the survey questions were translated from English to Vietnamese by the

researcher

3.3 Description of the pilot study

Because the scale of research are adopt from the scales of the previous

researches, that was conduct in different culture, the level of economic development and

selected respondents According to Nguyen (2007), most of the scales have been used

widely in the past, this step is important because of the difference in the research setting

So, the pilot study was conduct through quantitative research method The purpose is to

respondents can understand the Vietnamese questionnaire more clearly, avoid confusion

To conduct quantitative research, the pilot test is conduct in Ho Chi Minh City by

face-to-face interview The 60 questionnaires (translated to Vietnamese language) were sent

to customers for answering After that, the forms have been returned for the pilot test

Some changes on the questionnaire fits with understand of respondents and make clear

for the questions (in Vietnamsese language)

The scales were assessed by Cronbach’s alpha and exploratory factor analysis

Considering the reliability, we had to delete 4 items of Perceived ease of use concept, 1

item of Attitude concept, 2 items of Subjective norm concept due to its low item-total

correlation < 0.30 (Nunnally and Bernstein, 1994)

Furthermore, the cumulative Extraction Sums of Squared Loadings=72.568%

means from variables we can choose 6 factors that can representative for all variables and

the ability of representative is 72.568%, it is quite good (we can accept the factor analysis

when this value is above 50%) After assessing the scales, the draft questionnaire was

edited for conducting the main survey

3.4 The Sample

The target population is the banking customers who are using individual account,

but not signed up for Internet banking services Two hundred and fifty customers were

sampled from commercial bank in HCMC

In general, the sample size should be 100 or greater (Hair and Anderson, 1998)

For standard multiple regression analysis, Tabachnick and Fidell (2007) showed that a

good level is: n > 50 + 8p (where p =number of independent variables) So, the required

sample is: n > 50 + 8*5 = 90

3.5 Methods of Data Analysis

This section was important in assuring the reliability of the constructs and thus

controlling data generated through questionnaires

3.5.1 Reliability

Before testing the validity of the concepts, we carry out testing their reliability

Testing the reliability means testing the consistency or the stable, and Cronbach’s

coefficient alpha is the most commonly used type of internal consistency reliability

Cronbach’s alpha is used as only one criterion for judging instruments or scales It only

indicates if the items “hang together” (George and Malley, 2003)

Cronbach’s alpha checks the internal consistency reliability of scales It checks if

whether the items that make up the scale actually measure the same underlying construct

(Pallant, 2001) For scale to be reliable, its Cronbach’s alpha value should be above 0.6

(George & Mallery, 2003)

The above guideline indicates that the higher the Cronbach’s alpha value is, the

more reliable are the items measuring a give construct Cronbach’s alpha closer to 1.0 is

preferred A Cronbach’s alpha value of 0.9 and above was regarded as the most reliable

of scales, while a scale that has a Cronbach’s alpha value that is below 0.5 is regarded as

unreliable and cannot be used to measure a given construct

3.5.2 Exploratory Factor Analysis (EFA)

Norris and Lecavalier (2010, p.9) supposed that “EFA is based upon a testable

indices can be generated to help with model interpretation” and “EFA’s purpose is to

identify latent constructs underlying a set of manifest variables” Hair et al (1998), Lee

& Hooley (2005, p.376) claimed that with samples of 300 or more, a factor loading of the

attribute higher than 0.3 is significant With samples of 200, a factor loading of 0.4 or

greater will take to indicate Therefore, the researchers must carefully consider the

sample size for choosing significant factor loadings Moreover, factors with a total

eigenvalue of 1 or greater will take into account; hence any factor with an eigenvalue of

lessthan 1 is discounted (Lee & Hooley, 2005, p.376) Based on these studies, any factors

with eigenvalues greater than 1 would be retained And any factor loadings of 0.3 or

higher on a factor are counted

3.5.3 Regression Analysis

3.5.3.1 The Path model

In this research, the Attitude variable is a mediator and the Perceived behavioural

control is a moderator All variables are quantitative variables So, this proposal model is

a Path model (Nguyen, 2011)

Considering the Path model, there are 4 multiple regression models

Regression model 1: ATT = f(PU,PEOU,SN) + 1

Regression model 2: PBC = f(PU,PEOU) + 2

Regression model 3: IT = f(ATT) + 3

Regression model 4: IT = f(ATT, ATT*PBC) + ε4

Model 1, 2 and 4 use Multiple Linear Regression (MLR), model 3 uses Simple

Linear Regression (SLR)

The main objective of this thesis was to test the hypotheses that were inferred by

theories So, the thesis used Enter method to run regression, this method also was

considered as a confirmatory method

3.5.3.2 Simple Linear Regression and Multiple Linear Regression

Simple Linear Regression considers the relationship between 2 variables: predictor

variable (X) and criterion variable (Y)

Yi = f(Xi) + i

Meyers, Gamst, and Guarino (2006, p.152) and Hair et al (2010, p.156) proposed

that the multiple regression standardized score equation is as follows (with all the

variables are measured on the same metric):

Y = β1X1 + β2X2 + … + βnXn

Where in: β is called beta weight, standardized regression coefficient, or beta

coefficient

X is the predictor entered into the equation in a single step

βX represents the score of a predictor and its associated beta weight

In addition, Hair et al (2010) claimed that there is the difference between the

actual and predicted values of dependent variable That means the random error will

occur when predicting sample data It is called the residual (ε or e)

Based on these studies, the multiple regression formula will be: Y = a + β1X1 +

β2X2 + … + βnXn + ε Moreover, Meyers et al (2006, p.161) introduced the value of

R2 indicating how much variance of the dependent variable is accounted for by the full

power of the regression equation (Hair et al., 2010)

3.6 Chapter summary

After collected data was be cleaned, remove the invalid questionnaires and data

will be processed using software SPSS 16.0 (Statistical Package for Social Sciences)

Collected data was analyzed and interpreted in a series of stage First, the demographic

profile of respondents was summarized Second, the reliability of the items used in

measuring the constructs was validated using Cronbach’s alpha Third, using EFA to

consider the discriminant and validity of the concepts Finally, multiple regression

analysis was used to test the hypotheses and how the variables can explain the dependent

variable (intention to use Internet banking)

CHAPTER 4: DATA ANALYSIS AND RESULTS

The purpose of this chapter was to present finding which were collected from the

actual questionnaire survey Beside, the researcher proposed an official assessment of

measures and carried out the analysis to give the accurate answers for the research

questions, hypotheses proposing in the chapter 2

4.1 Descriptive analysis

A total of 400 people were sampled, 258 responses were received and 237

questionnaires were useable for analysis (equal 59.3%) The data was gathered on

personal banking customers of many commercial banks in Ho Chi Minh City, but they do

not use Internet banking services yet The gender distribution of the survey respondents is

45.1% for males and 54.9% for females

The results also indicated that the research samples had age predominantly at 2

groups: 31-40 and 41-50 years Regarding marital status, the single respondents were

28.3%, while married respondents were 71.7% With the education factor, the highest

percentage is the graduate group that accounted for 31.6% The research samples had

income predominantly at 2 groups: 5 Million-10 Million and 11 Million-15 Million

Appendix 4, 6 gives a detailed description of the demographic statistics for the

Correlation < 0.3 and after remove PU6 Cronbach's alpha increases from 0.846 to 0.881

Item number 6 has the low correlation with the others, it has not the same direction with

other items and it can not explain the concept

See appendix 7, after deleting the PU6 variable, we have to run again the

reliability statistics

This table shows the result with a quite high Cronbach's alpha (.881 > 6)->

measurement scale is good That means the first concept (Perceived usefulness) can be

explained by 5 items All numbers in the Corrected Item-Total Correlation column > 0.4

and numbers in Cronbach's Alpha if Item Deleted column < 0.881 In this case, each item

that explains the Perceived usefulness concept make a good component of a summated

rating scale

4.2.1.2 Reliability Analysis for Perceived Ease of Use

See appendix 7, all variables are satisfied and are retained to run in the next steps

All numbers in the Corrected Item-Total Correlation column > 4 and numbers in

Cronbach's Alpha if Item Deleted column < 814 Cronbach's alpha (.814 > 6)->

measurement scale is good

4.2.1.3 Reliability Analysis for Attitude

See appendix 7, variables are satisfied and are retained to run in the next steps All

numbers in the Corrected Item-Total Correlation column > 4 and numbers in Cronbach's

Alpha if Item Deleted column < 818 Cronbach's alpha (.818 > 6)-> measurement scale

is good

4.2.1.4 Reliability Analysis for Subjective Norm