Factors affect to the online shopping intention of customers in vietnam

In short, online shopping is the process of purchasing products or services made by consumers in the online shop via the Internet 1.1.2 Intent online shopping Purchase Intent can be meas

| OPEN UNIVERSITY MALAYSIA

RESEARCH PROJECT

(BMBR5103)

FACTORS AFFECT TO THE ONLINE SHOPPING

INTENTION OF CUSTOMERS IN VIETNAM

Advisor?s assessmenf

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TABLE OF CONTENT

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Bi //0)/2v/9302.01005 888.1 5 ABBREVIA TIONS - Ác HH 1080 016864 644490849990850007500506 6 (3 Can 1 7571.1 1 ¬v CHAPTER 1 - INTRODUCTION << co HH 08668606 16486644466 8 IS nh 8 1.1.1 Shopping online n AdAd.A 8

II oi lẽ ố 9 1.2 Research introduction - ‹+-c- xxx HH HH 000111 1114717111 4.11T81 k1 rkrz 9 1.2.1 Problem sta†€Tm€TE - 2 << Ss két +23 The 2211017111 1x re 9

Ca nh 10 1.2.4 The scope cà ma A 11

ID SC a na we 11 CHAPTER 2 — LITERATURE REVIEW .ccccsssossscossscecconsesssssscceassneesseasees 12 Pin 12 2.1.1 Overview e-commerce market in VietfIA: .- . 5c cv sec cseccee 12 2.1.2 E-commerce concept (E-cormmmeTC€) tt H2 1141121411111, 13

PP 00 2.3) 8 6 hố 14 2.1.4 a0 ca on n6 ố 14 2.2 The relevant theoretical models ccccsscssssesssesseseseseoescesesesssnsesessaesenstseseeastensees 15 2.2.1 Theory of reasoned action - TRA .:ccscsscsssssssesesssenesesesssessecesssesessscsneseseneees 15 2.2.2 Theory of Perceived Risk - TPR .ccccsscssssesesscsessssecssssssssceeeseseescssesseescaessess 15 2.2.3 Technology Acceptance Model - TAM c:cccssssssssesssssssesssssseeseesesseseseneseeaees 16 2.2.4 E-commerce Adoption Model — E-CAM .sssscscsssesesesenessessnesesssesesesenssseae 18 2.3 The research was done in the 8n 18 2.3.1 Research at Vietnam «+ s< sex th HH HH HH HH nh HH Hy gkc 18

yÑ.®9 in e 23

CHAPTER 3 - RESEARCH MODEL AND HYPOTHESES - 24 3.1 Construction the research model and research hypotheses ccssecssessserereeeeeeens 24 3.1.1 Perceived usefulness - PU oe cessssssesessecssseesseeseseneneceesreeseseesseesseeesnsnsneneene 25 3.1.2 Perceived ease of use - PEU oc cesssssecssesssseeesnseesesesscnssseessessseeenserestsnenaneons 26 3.1.3 ¡0o .Ó 26 3.1.4 TRUST 5 << nọ 1 HH TH HH HH 1871011211111211710110 26 3.1.5 Pereeived risks- PTR - «se HH nh ng ng 041 1011 T10 1 g0 008141 04.0110 27 3.1.6 Online purchasing experience - OPE sinh 1e 28 3.1.7 Electronic Word of Mouth - EWOM HH2 re 28 3.2 Research €Sign - - cà ch HH HH T1001111101081110010101909819 29 3.3 Preliminary SCaÌÏ€§ - - «nh HH TH ng 710117111814 107471017112119 30

E9) 00 2 .j.nnn 33

3.4.1 Perform qualitative researCh - cà t4 1121211112010 re 33 3.4.2 Adjusted scale results in qualitative research -.‹ -«s series 34 3.4.3 Summary results of qualitative research teeerieireriie 39

EhSNtiroio an 39

Khn? ae 40 3.5.2 i.J on 40 3.5.3 IDafa analySÏS «sưng TH 00 2042148 0817100180101 041 0k hen 41 CHAPTER 4—- DATA ANALYSYS/ FIDINGS «<5 46 4.1 Features sarmpÌ «<< «sen HH ng H101 T1 T310 8481 1e nhe 46 4.1.1 Identification information using the online shoppHig S€TVIC€ - 46 4.1.2 Information subject to research: 00 sec sccsesessstesseessseeseeeseeesecensneseeeeseesntees 49 4.2 Assess the reliability of the scaÌe - «- ¿5< Sàn H1 01011 ng 49 4.2.1 EvaluatiO' CTÏt€TiA: - 5s x nHYtHH HH HH H01 041 0411115007100 14 49 4.2.2 Cronbach alpha analys1s reSuÌfS - - «con re 111p 50 4.3 A djust the research model and hypotheses -cveeeHhehHeereeeereee 53 4.4 Test the research model and hypotheses :.cssccececseceseseesenseresesseenesseeasteeteeeees 55

_4.4.2 Testing the hypotheses: eeiirHheHeeereeiiieeererree 58 4.5 Compared with previous Studies? ecsecessseessesssecesssssesssesesseesenseesenesteaseeseeees 63 4.6 COmclUsion 0n 65 CHAPTER 5Š - CONCLUSION "—”" "— - 66 5.1 Summary of key findings - - ch HH th HH Han 0101101440140301.00 66 5.2 Some policy irmpÏiCAfÏOTIS - - << HT TH HC TH ngư ng 67 5.3 The contribution Of res€arCH -ó cà k2 2 HH TH HH 1H13 HH nen 71

5.3.1 Contributions in th€OFy - - 5< SH KH HH HH9 71

5.3.2 Contributions i.0 ‹ nh 6 71

5.4 Restriction and subsequent research direCfIOTIS -. 7c rn 72

REFERENCCES - 55 Ă 5 n0 4183685098956848608808994400600040664400460090006689 73 APPENDIX —~ ÔÔÔÔỎ 7T

LIST OF FIGURES

Figure 2.1: Theory of rational action TRA (Ajzen and Fishbein, 1975) 15 Figure 2.2: Theory of Perceived Risk TPR (Bauer, 1960) . -c<<<sseesssessse 16 Figure 2.2: Theory of Perceived Risk -TPR (Batier, 1960) cecescessceestonseasseseeees 16 Figure 2.3: Technology Acceptance Model TAM (Davis, Bagozzi and Warshaw, 1989)

"“—~ ˆ ` 17

Figure 2.5: Model affect the intention to use electronic services online purchases

r0 90) 020).1202000) 000000858 19

Figure 2.6: Model of trends affecting electronic payments (Le Ngoc Duc, 2008) 20

Figure 2.7: Model of consumer behavior of people make online purchases (Hasslinger

Ct al, 2007) .ssrsrsscccsssrnsrssscccssersscssccccsesssscscsscccensssesseccesseossssescascsvesesecessccsonsreces 21 Figure 2.8: Model identifies the factors affecting online purchase intent (Hossein Rezaee DOLAT Abadi et al, 2011) .ccsssssssscsccssssnccscccccsrsvensccssccconsevssesscccoesseeses 21 Figure 2.9: Model predicts online shoppers’ intent (Shim et al, 2000) 22 Figure 3.1: Model of proposed research - - cac HH HH HH HH ghen 29 Figure 4.1: Model of researchers adjusf€d - cà nh nh ng 54

LIST OF TABLES

Table 3.2: Table of the research prOC€SS -. con cành 12 me 30 Table 3.3: Summary of Preliminary sCaÌ€S esssseessssssssesssieesseA49946446868004060856 31 Table 3.4.2 Statement perception scales helpfUl_ -««««seessssssessssssssseessee 34 Table 3.4.3 Statement perception scale usability .-.«.- -<<«ssessssssesesssssesesssese 35 Table 3.4.4 Table statement Expect pricing scale .c«ceeeesiieirres 36 Table 3.4.5 Scale table of Credibility — S149866601S5669959356 36 Table 3.4.6 Table remarks scale Of risk aWATETSS ‹ ««««.ssses« ` se 3 Table 3.4.7 Table remarks scale of online shopping experience “— „38 Table 3.4.8 Table remarks scale of online word of mouth -<csee<xsersres 38 Table 3.4.9 Statement of intent scale used esseeesssssssssessssssssseeriiseesssse 39 Table 4.1 Forms of đata collectiOn: -«<«s««<s<<ssssesssssssesssseess26668555566065400 59 46 Table 4.2 Percentage identify online sales site . «esesesssssseessss —- ` 46 Table 4.3 The average time a visit to website electrorIiC SaÏ€S ‹ ««.«s.esseesssseseese 47 Table 4.4 Frequency of access to online shopping sites during the latest month 48 Table 4.5 Experience using Internet .‹‹<<<<ssesesesssssessssesSs.999681555588969600n n9 48 Table 4.8 Cronbach Alpha analysis results .-«cese<<<sss.sSSSSSS 886100016 50 Table 4:13 Results of regression analySIS ««ses-eeesesssesesssseesss28685556666540n5m 56 Table 4.14: The table summarizes the results of hypothesis f€S(S .««sssesss 61

Perceived Ease of Use Perceived Risk

Perceived Risk of Online Transaction Perceived Risk with product/service Online purchasing experience Electronic Word of Mouth Intention

Exploratory Factor Analysis Kaiser — Mayer - Olkin Variance inflation factor

ABSTRACT

This study aims to explore the factors that influence the Vietnamese consumers’ intention on online shopping The study was carried out in Vietnam via online survey with any customer who has ever used online shopping The result of the study showed that Vietnamese consumers’ intention on online shopping was strongly affected by “Consumers’ benefit” and “Subjective norm” The study’s

result helps the online business look more specifically on Vietnamese customers’

online shopping behavior; thus helping they come up with the business decisions appropriate for this potential market

mainly people use the Internet for news operations, search for information, and

listen to music, chat and gaming However within the past 3 years online shopping has seen strong growth 35% had internet access works for online shopping 35% figure is not high by the majority of customers remain cautious and limited use of this service To be successful, enterprise online business need

to study the factors affecting purchase intention of customers so that there are measures to promote online shopping customers in Vietnam From the practice, the author hopes to find out the factors affecting online shopping intentions of consumers in Vietnam Objectives of the study in order to understand the online shopping intention of customers in Vietnam, to develop and validate the scale of online shopping intend to use in the online business industry, as well as measure the degree importance of factors affecting online shopping intention, then propose

solutions to online business enterprises

1.1.1 Shopping online

Online purchases are defined as consumer behavior in purchasing through online stores or websites using the online purchases (Monsuwe, and Kk D Dellaert Ruyter, 2004) Similarly, according Haubl & Trifts, (2000), online buying is a transaction made by consumers through the interface on the computer by the consumer's computer is connected to and can interact digital stores of retailers through computer networks

Online buying behavior of consumers is based on the interface of the website; product images are posted online (Lohse and Spiller 1998; Park and Kim 2003) The boom of the internet and e-commerce has a strong influence on how consumers surf (Soopramanien and Robertson 2007) and collect information about the product (Moe and Fader 2004) Online buying behavior of consumers also differs from traditional shopping (Alba, 1997) Online purchases convince customers purchase through their jobs feel the benefits they enjoy shopping (Ha and Stoel 2009)

In short, online shopping is the process of purchasing products or services made

by consumers in the online shop via the Internet

1.1.2 Intent online shopping

Purchase Intent can be measured by the expected procurement and the review of the consumer on goods / services (Laroche, Kim and Zhou, 1996) Intent online shopping will determine the strength of the customers in the online buying

behavior (Salisbury, Pearson, Pearson and Miller, 2001) According Pavlou (2003), when a customer intends to use the online transaction to purchase, it is

called an online purchase intention Specifically, when the process of their search, exchange of information and purchases made via the Internet, which is considered

to be trading online (Pavlou, 2003)

Internet Network Information Center VNNIC, until 11/2012, the proportion of people using the Internet has reached 35.58% E-commerce activities were rapidly changing economy, not only in how to supply products, but also in consumer habits Vietnam consumers are becoming accustomed to online purchases However, most customers are still wary of shopping online because it is still a form of new and strange, and they still do not have a clear understanding and confidence in the technology Although now the world appeared more theoretical research model to explain the factors affecting online shopping behavior of

customers, but to date, there is no more national research to pay Answer the

questions concerning the main factors affecting the intention of online shopping Besides, the application of a theoretical model of the world on the plight of Vietnam cannot fit due to the special conditions in respect to economic, cultural and social Therefore, the deployment of a research model based on domestic and international research in recent years to build a model suitable to the conditions of Vietnam in order to provide solutions to attract consumers use Internet online purchase, improvement and development of online shopping forms, strengthening e-commerce activities has become an issue necessary The theme "The factors affecting the online shopping intention of customers in Vietnam" were made to

solve the problem

1.2.2 Purpose of the study

This study was undertaken to:

+ Identify the factors affecting online shopping intention of customers in Vietnam

+ Provide recommendations and solutions to improve online shopping services to meet the needs of customers

1.2.3 Research question

1, What factors are affecting the online purchase intention of customers in

Vietnam?

2 Factors which influence how come online purchase intention of customers

in Vietnam?

1.2.4 The scope of the research

* Study subjects: factors affecting online shopping intention of customers in Vietnam

* Scope of the study: The study focused on those customers who have online

shopping experience and customers are looking to shop online in the locality Ho

Chi Minh City

1.2.5 Research Methods

The study used primary data sources were collected from survey questionnaires

Dissertation uses quantitative research methods, data is processed by SPSS 20,

was carried out through the following steps:

- Using qualitative research to explore, adapt and develop the scale Bilateral discussions forms will be used in qualitative research

- Testing of scale through preliminary analysis Cronbach's alpha coefficient and

factor analysis discovered EFA

- Regression Analysis to test the extent of the impact of the component elements

- Summary of the study and given the implications

CHAPTER 2 - LITERATURE REVIEW

2.1 Introduction

2.1.1 Overview e-commerce market in Vietnam:

With the advantage of saving time, unlimited positions and product cost is usually lower than the market from 3% to 5% (by not costly for premises, personnel .),

the market purchase online in Vietnam is becoming increasingly more popular

Help for the market's most popular online purchases is the contributions of many

shopping sites, Ad The company possesses a strong brand on the internet such as

FPT, VNG are aggressively increasing its market share in the field of online

trading by investment channels for purchase as chodientu.vn, 123mua.com.vn,

netizens to participate, which is the model used forum for the exchange of

information trading Ad forums as trieudo.com, Sgiay.vn, muare.vn is attracting many visitors by its ability to rapidly exchange information on the topic between

buyers and sellers

The explosion of information online purchases, in addition to the positive factors, outstanding variety of negative factors such as:

- Most sites offer online shopping services in nature as a bridge between buyers and sellers

- A number of individuals and businesses taking advantage of the reputation of the brand online shopping site to sell shoddy products or consumer fraud Dishonesty

in product introduction and dishonest in transactions that make consumers become

more wary of buying and selling products online

- In addition to the fraud, visible problem of garbage information on online shopping channels in Vietnam is becoming more popular

- Some individuals, businesses do not understand how to reach customers and

effectively exploit online media, should strive to publish advertisements flooded

Invisible, that advertising information dense become a burden for the e-commerce website in Vietnam

2.1.2 E-commerce concept (E-commerce)

Electronic commerce is defined as a process of buying, selling, transfer or

exchange of goods, services, or information using electronic networks such as the Internet (Turban et al., 2002) Kotler and Keller (2006) give a definition of e-

commerce in which the process of selling and buying is supported by electronic tools The main forms of the form of e-commerce include:

- Business to Business (B2B)

- Business to Customer (B2C)

- Business to Government (B2G)

- Customer to Customer (C2C)

- Mobile commerce (mobile commerce or m-commerce for short)

According to Kotler (2003), McGoldrick (2002) and Turban (2006), e-commerce generally has three prominent types:

- Business to Customer (B2C): The exchange between businesses and final consumers about goods, services and information on goods and services (or information about consumers) to serve consumer demand A typical example of

the form of B2C is Amazon.com

- Business to Business (B2B): a form of electronic commerce is made between (1)

manufacturers and wholesalers or (2) between wholesalers and retailers Even though there is a clear delineation between B2B and B2C in the initial appearance

of e-commerce form However, with the development of e-commerce, these differences less and less clear Dell typically sell products and services to both

businesses and individual consumers

- Customer to Customer (C2C): this is a form of electronic commerce between consumers Typically eBay

2.1.3 Online shopping behavior

Online purchases are defined as consumer behavior in purchasing through online stores or websites using the online purchases (Monsuwe, and K D Dellaert Ruyter, 2004) Similarly, according Haubl & Trifts, (2000), online buying is a transaction made by consumers through the interface on the computer by the consumer's computer is connected to and can interact digital stores of retailers through computer networks

Online buying behavior of consumers is based on the interface of the website, product images are posted online (Lohse and Spiller 1998; Park and Kim 2003) The boom of the internet and e-commerce has a strong influence on how

consumers surf (Soopramanien and Robertson 2007) and collect information about

the product (Moe and Fader 2004) Online buying behavior of consumers also differs from traditional shopping (Alba, 1997) Online purchases convince customers purchase through their jobs feel the benefits they enjoy shopping (Ha and Stoel 2009)

In short, online shopping is the process of purchasing products or services made

by consumers in the online shop via the internet

2.1.4 Online purchase intention

Purchase Intent can be measured by the expected procurement and the review of

the consumer on goods / services (Laroche, Kim and Zhou, 1996) Intent online

shopping will determine the strength of the customers in the online buying

behavior (Salisbury, Pearson, Pearson and Miller, 2001) According Pavlou (2003), when a customer intends to use the online transaction to purchase, it is

called an online purchase intention More specifically, the clients search, exchange

of information and purchases made via the Internet, which are considered

transactions online (Pavlou, 2003)

2.2 The relevant theoretical models

2.2.1 Theory of reasoned action - TRA

Theory of reasoned action - Ajzen and Fishbein was built from the late 60s of the 20th century and expanded corrected in 70s according to TRA, the decisive factor

to the final act is not the attitude that is standard the behavior Intent behavior

(behavior intention) affected by two factors: attitude (Attitude) and subjective

standards (subjective Norm) In it, the attitude is manifest personal factors expressed confidence of a positive or negative for consumer products Subjective standard also shows the influence of social relationships (family, friends .) to

individual consumers

Beliefs and Subjective

Figure 2.1: Theory of rational action TRA (Ajzen and Fishbein, 1975)

2.2.2 Theory of Perceived Risk - TPR

In the cognitive theory of risk TPR (Theory of Perceived Risk), Bauer (1960)

suggest that consumer behavior information technology products have awareness

of risk, including two factors: perception of risk related to products / services and

Risk perception related to

online transactions

Risk perception related

products and services

Figure 2.2: Theory of Perceived Risk -TPR (Bauer, 1960)

- Composition risk perceptions related to products and services: quality products, products with images on the Web

- Composition risk perceptions related to online transactions: the risks that may

occur when consumers conduct transactions on the electronic media, such as

secrecy, safety and risk awareness the entire transaction In previous studies, Bhimani (1996) pointed out the threat to the acceptance of e-commerce can be expressed from the unlawful act such as revealing passwords, edit data, deceit and the non-payment of bills on time Rose et al (1999) identifies technical obstacles and costs related online transactions and specific restrictions for electronic

commerce including: the information transmission delay, limit web interface, the search issues and the less secure payment system

2.2.3 Technology Acceptance Model - TAM

Technology Acceptance Model (Davis, 1986) specializes used to explain and

predict the acceptance and use of a technology On the basis of the theory of TRA, TAM survey model relationships and the impact of related factors: perceived

usefulness, perceived ease of use, attitudes, intentions and behaviors in accepting

information technology user TAM model was edited by Davis, Bagozzi and Warshaw (1989) by removing factors as attitudes based on study results, the

authors suggest that (1) although useful perceptions have an important influence to

the formation of attitudes, but attitudes may not have a major role in predicting

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behavioral intention if an individual exposed to technology long enough (2) the type of attitude from the original model, model results at the target but its

predictability is not significantly lower than the original model (3) factors

perceived usefulness has cover all elements in its attitude That is, a person can use

a technology even if they do not have a positive attitude towards it, as long as that technology actually useful or that technology really improves job performance

variables towards using: intention to use system use

Useful perception is "The degree to a person believes that the use of a separate

application system will increase the efficiency / productivity of their work for a

particular job." (Davis, 1986) Elements useful cognitive variables:

- Communication (communication): The importance of communication in the

operation of an information system was previously the researchers acknowledged Indeed, if the lack of information cannot be linked entities operate together

- The quality system (quality system): To continuously improve the quality of the

system will help to exploit the information system more effective

- Quality of information (information quality): This is the output quality of the information system: reliable, complete and timely

17

- Quality of service (service quality): Insurance, reliable, responsive The

compatibility between the technology and the work (task-technology fit): In order

to give users the most convenience in using the system

b Perceived Ease of Use- PEU

Awareness ease of use is "The degree to which a person believes that using specific systems without the effort" (Davis, 1986) The computer user a message

on the ability to execute a task on a computer is easy depends heavily on the

ability to use your computer, worry when using computers, control elements from

outside , is serious when using a computer, feel and enjoy the availability of using computers (Vankatesh, 2000)

c The concept of behavioral intentions:

The concept of intent is intended behavior of users when using the system Intend

to use the tight relationship to the actual usage

2.2.4 E-commerce Adoption Model —- E-CAM

Author Joongho Ahn et al (2001) have developed models to enable e-commerce E-

CAM (E-commerce Adoption Model) by integrating TAM model calibration of

Davis (1989) for receiving lecture risk formula E-CAM models are empirical

studies on both South Korean and US markets explain the acceptance of e-

commerce use This research has provided knowledge of the factors affecting the transfer of Internet users into potential customers Awareness ease of use and perceived usefulness must be improved, while the perception of risk related to products / services and perceived risks associated with online transactions to be

reduced

2.3 The research was done in the past

2.3.1 Research at Vietnam

e Look at the factors affecting the intention to use electronic services online

purchases, author Hoang Quoc Cuong, Master thesis, 2010

Hoang Quoc Cuong author (2010) identified the factors affecting the intention to use electronic services online purchases based on accepted models consolidated information technology (UATUT) including price expectations , Recognizing the

convenience, ease of use awareness, social Influence, Feel the excitement, awareness of risk when used and variables gender, age and income

Giới tính, Tuấi

Thu nhập Hie)

Mong đợi về giá (1) ——^

Figure 2.5: Model affect the intention to use electronic services online purchases

(Hoang Quoc Cuong, 2010)

e Surveying a number of factors affect the trend of using electronic payments,

the author of Le Ngoc Duc, Master thesis, 2008

_ Author Le Ngoc Duc (2008) identified the factors affecting the trend of using electronic payments to groups of people already use electronic payment acceptance model based on e-commerce E-CAM and behavioral intentions TPB theory include: cognitive usefulness, perceived ease of use, standards and subjective cognitive behavioral control For the group of people do not using

Hasslinger et al (2007) examined consumer behavior research through online

book purchasing behavior of college students’ Kristianstad, Sweden-based model for customer confidence through internet shopping KO Matthew Lee

(2001) Research results indicate 3 concept components: Price, Convenience

and trust positively influence consumer behavior In particular, the study results indicated price is considered to be the most important factor when

buying goods online

l The online customer

The authors explore, analyze and evaluate the key factors affecting consumer

behavior in the market based on the model of Iran accepts expansion

technology (Extended TAM) with variable impact on the including comments

on the relevance, credibility, usefulness awareness, corporate reputation, social

influence and perception of risk is presented in the following models

Behavioral Intestin

Figure 2.8: Model identifies the factors affecting online purchase intent (Hossein

Rezaee DOLAT Abadi et al, 2011)

21

HUTECH LIBRARY

e© Models online purchase intention: The role of search intent Soyeon Shim et al (2000)

By integrating model online shopping intention (Kein, 1998) and behavioral intentions theory (Ajzen, 1985, 1991), the authors have done research to better understand the link between intentions use of the internet for finding information and shopping At the same time the study also identified the role of attitudes and related factors in the search for information and online purchase

intent of consumers Research results indicate that online shopping experience

previously strong impact of online shopping intentions

Figure 2.9: Model predicts online shoppers’ intent (Shim et al, 2000)

© Impact of E-WOM, trust and perceived value to the intended behavior of

customers, authors Milad Kamtarin, 2012

The study was conducted to examine the factors affecting the formation of online shopping intention in the city of Isfahan, Iran The results indicated that trust, online word of mouth and the value perceived positive impact on the

formation of behavioral intentions

22

2.4 Conclusion:

Overall, the researchers refer to domestic and foreign online shopping behavior often use theoretical models TRA, TAM, E-CAM Through the studies referred to above was found to have an inheritance and development of models to overcome the limitations to the study of buying behavior in economic conditions and techniques developed In particular, TAM model was more domestic and foreign authors used to study the buying behavior related to the use of technology With the objective of this research is to study “Factors affecting online shopping intention", the author intends to study more about TAM model edited by Davis, Bagozzi and Warshaw (1989) and since then model proposed research topic

CHAPTER 3 — RESEARCH MODEL AND HYPOTHESES

3.1 Construction the research model and research hypotheses

By reference to previous studies, found that the models TAM (Technology Accept Model) has been used in many different research areas, especially the areas related

to computer technology Therefore, this study uses TAM model as the theoretical basis for building and developing the research model testing and investigating the factors affecting online shopping intention of customers in Vietnam However, this

study apply TAM model edited by Davis, Bagozzi and Warshaw (1989) with the

elimination factor in attitudes and retain two major players are aware of the usefulness (Perceived usefulness) and awareness usability (ease of use Perceived) Besides, based on the results of previous studies of online shopping, the study also added to the research model variables price (Price), trust (Trust), the perception of risk (Perceived risk), customer experience (online purchasing experience) In

addition to the familiar elements outlined above, the authors choose to add the

concept of online word of mouth (WOM E-) in order to better explain the online shopping intention of customers in Vietnam As the pace of development of information technology at present, online word of mouth is considered an effective tool to help consumers make the purchasing decisions quickly and accurately

- Based on the model of "consumer behavior in online purchases," the authors

Hasslinger et al (2007), the author chose the concept of price (Price) and Trust (the

Trust) and the notion of convenient because this concept was included in the

concept of cognitive usefulness

- Buy electronics online shopping channel is relatively new in Vietnam, most shoppers will encounter more aware of risk than traditional methods That was shown in many studies at home and abroad Specifically author Hoang Quoc Cuong (2010) concluded that the perception of risk when using negative impact intend to use electronic services online purchases Author Le Ngoc Duc (2008) concluded two elements of risk perception related to products / services and perceived risks associated with the transaction have opposite effects tend to use

pay phones from Author Hossein Rezaee DOLAT Abadi et al (2011) concluded that the perception of risk has opposite effects intended to purchase online Past studies have references and risk perception theory of Bauer (1960), the authors included in the model study cognitive elements (Perceived risk) because this is an important factor affecting the purchase decision through customer network _

- Based on the study, "Model of intent to purchase online: The role of search intent" by Soyeon Shim et al (2000), the experience factor online purchases (online purchasing experience) are included in model

- In the study "Impact of E-WOM, trust and perceived value to the intention of the customer behavior" of Milad Kamtarin, breeder concept Word of mouth online (Electronic Word of Mouth) to give on the model

3.1.1 Perceived usefulness - PU

Perceived usefulness is "The degree to a person believes that the use of a separate application system will increase the efficiency / productivity of their work for a particular job." (Davis, 1986) Hasslinger et al (2007) mentioned that consumers

found that online shopping saves them time, reducing the effort and can shop at any time Darian (1987), Carson et al (1996) and Burke (1997) also concluded that online shopping has created a competitive advantage compared to traditional

methods of procurement because of the search for product information, online ordering and delivery service home delivery to help customers save time Chen and his colleagues in 2005, said that online shopping will be perceived as useful

and efficiency in the work if the characteristics of online shopping system matching requirements and offers a substantial value for user They found that

perceived usefulness has a positive impact on the attitudes and intentions of online shoppers Therefore, the following hypothesis is built:

Hypothesis H1: Perceived usefulness positive impact (+) to the online shopping intention of customers

3.1.2 Perceived ease of use - PEU

Perceived ease of use is "The degree to which a person believes that using specific

systems without the effort" (Davis, 1986) Previous studies have shown that the ease of use will increase awareness of the usefulness and impact on the intention

of the customer shopping (Davis, 1989; Hong, Thong, and Tam, 2006; Hsieh and Liao, 2011) Gefen and his colleagues (2005) studied the effect of perceived ease

of use on trust in online shopping They found that perceived ease of use has a positive impact on confidence as it helps to promote the use of customers in online

shopping service for the first time and make customers more willing to maintain

the relationship between buyer and seller

Hypothesis H2: Perceived ease of use has a positive impact (+) to the online shopping intention of customers

3.1.3 PRICE

Price is what consumers have to pay to get the product or service desired Expect the price of consumers’ assessment of what he would give to his cost that must be spent Consumers will feel the price on two fronts: the cost of cash to spend and opportunity costs due to abandon the use of that money to buy products or services According to Jiang and Rosenbloom (2005), customers often rely on price to determine the quality of the product because they cannot see the truth

when buying products online In the model, "Factors affecting consumers online,"

Hasslinger et al (2007) mentioned that consumers believe online shopping will help save money and be able to compare old

Hypothesis H3: Expect positive price effect (+) to the online shopping intention of

customers

3.1.4 TRUST

There are many definitions of trust According to Chiu et al (2009), in general, trust is a set of beliefs about the honesty and competence of party do.Trong online

purchases; customers đo not have much information about the you Therefore, trust is one of the main factors affecting the intention of online shopping (Kolsaker

et al, 2004) Credibility is important because it helps customers overcome the thought of the uncertainty and associated risks as they share personal information when making online purchases or real (and Fygenson Pavlou, 2006) Intent online purchases depending on the perceived risk, the level of customer satisfaction, and perceived risk can be reduced if the increased trust (Kolsaker et al, 2004)

Hypothesis H4: The trust has a positive impact (+) to the online shopping intention

of customers

3.1.5 Perceived risks- PR

In the electronic commerce accepted model of (E-CAM) and risk perception

theory (TPR), cognitive perception risks include risks related to the products /

services and risks associated with the transaction online The risk when using

online shopping services include: personal information revealed, lost accounts, the truth is not as expected when looking at online Bhatnagar et al (2000) suggest that online shopping trend will reduce the perceived risk increases According Sindhav

and Balazs (1999); Swaminathan et al, (1999), the lack of security and privacy on the internet is a barrier to online purchase intention Bhimani (1996) suggested

that consumers may fear that online providers can reject an agreement after the

transaction was completed In addition, according to Forsythe and Shi (2003),

risks related to the product concerned is a factor in online shopping and is the main reason for customers to abandon online purchases intentions Risks relating

to products with characteristics cannot touch, consider before the transaction

creating anxiety or uncertainty for the product All this would have undermined confidence attitude of consumers to purchase online

Hypothesis H5: Perceived risk has negative impact (-) to the online shopping

intention of customers

3.1.6 Online purchasing experience - OPE

Online shopping is a form still new to many consumers, it remains to be seen carrying more risks than traditional forms of shopping (Laroche, Yang, McDougall and Bergeron, 2005) Therefore, online shopping will depend heavily

on the experience that customers have been from previous purchases Previous

studies have concluded that online buying experience earlier direct impact on

online purchase intent, and if those experiences to help them succeed online purchase, they will continue shopping online future (Shim et al, 2001; Eastlick and

Lotz, 1999; Weber and Roehl, 1999)

Hypothesis H6: Customer Experience positive impact (+) to the online shopping

intention of customers

3.1.7 Electronic Word of Mouth - EWOM

Word of mouth (WOM) is the act of consumers providing information to other consumers As Kirby and Marsden (2006), word of mouth is the words, communication between people, between people who get communicated regarding

a brand, product / service or information on the market Currently, with the

development of information technology, the traditional form of word of mouth (WOM) has gradually been replaced by word of mouth online form (e-WOM), E- WOM is "any positive words or the negative of these potential customers, existing

or previously characterized the application or related products through internet"

(Hennig-Thurau et al, 2004; Litvin, Goldsmith and Pan, 2008) Compared with traditional word of mouth, word of mouth online is considered more useful for

speed, convenience, ability to spread and there is no face to face element (Phelps,

Lewis, Mobiliom, Perry and Raman, 2004 ) Online word of mouth is created and

transmitted by major customers is always a reliable source of information for them

(Mangold & Faulds, 2009; Chu & Kim, 2011) According to Wu & Wang (2011), customers believe in the word of mouth about the product than from other sources

of information when making purchasing decisions A recent study by the Society

for New Communications Research has shown the extent of the word of mouth on the online media According to this study: 59.1% of respondents, the use of online media to shed the experience of the customer care service of a brand, 72.2% of respondents, research customer care online information products online before buying

Hypothesis H7: Word of mouth online positive impact (+) to the online shopping intention of customers

Table 3.2: Table of the research process

Types of Research - Step Action

research method _ ¬ Face to face

- Malin Eliasson (2009): Study on online purchase behavior of women”

- Davis, Bagozzi and Warshaw (1989): Technology Adoption Model: a comparison of two theoretical models

- Joongho Ahn, Jinsoo Park & Dongwon Lee (2000): Studies of factors affecting the acceptance of e-commerce E-CAM

- Hasslinger et al (2007): consumer behavior in online purchases

- Lee and Turban (2001): Model of trust in online purchases

- Jae-Il Kim, Hee Chun Hae Joo Lee & Kim (2004): The factors affecting the intention of looking for information online and online shopping intention

- Mei-Hsin Wu (2013): The relationship between the reliability of online word of

mouth, perceived risk and customer behavior

The observed variables used for this concept will be measured using 5 point Likert scale: Totally disagree, Disagree, Normal, Agree, Strongly agree

Table 3.3: Summary of Preliminary scales

Preliminary Scale

- Takes less time - Davis,

- Find product information Bagozzi and Perceived

usefulness

- Buy products in anywhere (1989)

- Buy products at any time

- Easily find the information and products

- Method of payment shopping Perceived and online shopping service is - Davis

ease of use quite simple (1989)

PEU - The functions of the online - Venkatesh

shopping website is clear and easy and Davis

- The price of online products - (2007) PRICE cheaper than the store price

- Easy comparison of prices Eliasson -

- Saves travel costs to see the

(2009) goods

- No reliable because there are too many uncertainties

- The interface of the website to - Lee and

increase credibility Turban (2001)

- Images of products available

increases reliability

31

- Information on product details

and clear as it increases trust

- Concerned about the safety of Jinsoo Park, online payment system Dongwon

- Use online shopping services do Lee, 2001) take time and money but not

experience - Hee Chun Lee

- I feel that online shopping

- OPE & Hae Joo

service is easy to use Kim (2004)

- I feel comfortable when using online shopping services

- Review of the product on the

online forum is very important - Ronald E

Electronic ° - Actively seek information about Goldsmith & Word of the product

David Mouth - Spend more time reading the Horowitz - EWOM reviews online about the product - Mei-Hsin -

- The positive comments on the Wu (2013)

online forum to influence

decisions of my shopping online

32

- ] will use (or continue to use) an online purchase service in the

3.4.1 Perform qualitative research

Qualitative research was undertaken to discover, add and adjust the observed variables used to measure the concepts in the model

Techniques discussed bilaterally with the objects selected by the method convenient but still reflect the characteristics of the sample collection

Five subjects were selected to participate in qualitative research are those who have experience in the field of online shopping over 2 years

- Discussion: Discuss the component factors affecting online shopping intention, the observed variables for each scale components in the model (Annex 01: Face to

face discussion)

- The order of execution:

e Conducting on-one discussions between the researchers with each object is

opted qualitative research to collect relevant data

e After interviewing all objects, based on the data collected, conduct editing

questionnaires

© Calibration data will be exchanged with the participants again Qualitative research process is ended when the questions for discussion are repeatable

3.4.2 Adjusted scale results in qualitative research

The assessment of the contents scale to the participants in the qualitative survey results to review their content is no need to adjust or not, content scales easy to

understand or not, need to add or remove less variable or not

In general, the comments are in agreement on the content of these factors affect the intention to use online shopping services Some suggested that the statement should be brief, limiting the process to discourage answered questions of those surveyed At the same time, the survey participants additional qualitative some statements required to measure a number of elements in the proposed model

After qualitative research, the results of the questionnaire for the quantitative survey has a total of 34 observations for the variable component of the concept study is presented in Appendix 2: questionnaire survey

a) Scale cognitive usefulness

Awareness is useful to mention the benefits customers get when using online shopping services Preliminary Scale consists of 4 variables Edit variable "I saw online shopping service takes less time than" to "I see online shopping services are useful in saving my time."

Table 3.4.2 Statement perception scales helpful

PUI 1 I think that online shopping services are useful in saving my

time

PU2 2 1 think that the use of online shopping services to help me

find product information quickly

PU3 3 I think that the use of online shopping services to help me

buy the product in anywhere

PU4 4 I think that the use of online shopping services to help me

buy the product at any time

b) Scale perceived ease of use:

Ease of use refers to the easy, straightforward when using online shopping services Preliminary scales with 4 variables This scale does change from

baseline

Table 3.4.3 Statement perception scale usability Variable code Statement

PEUS 5 I easily find the information and products they need

when using online shopping services

PEU6 6 | see how the shopping and payment online shopping

service is quite simple for me PEU7 7 The functions of the online shopping website is clear

and easy to understand PEU8 8 I easily compare features between products when using

online shopping services

c) The scale of price expectations

Expectations on prices when using online shopping services is refer to the level of user confidence in the benefits of the price that online buying services offering Scale consists of 4 variables preliminary observation, after qualitative research, adding: "The promotion of online shopping services attracted me."

Table 3.4.4 Table statement Expect pricing scale

code

PRICE9 9 Product Price is important for me to use online shopping services

PRICE10 10 I think that the price of products on the network cheaper than the

prices in the stores

PRICEII 11 Use online shopping service help me easily compare prices

PRICE12 12 Use online shopping service to help me save travel costs to see the

Table 3.4.5 Scale table of Credibility

Variable code Statement

TRUST14 14, Online shopping is not reliable

15 The interface of the website increases my TRUSTI5

confidence for online shopping

16 Pictures of products available increases my TRUSTI6

confidence for online shopping

TRUST17 17 Information about the product as detailed and clear,

it increases my confidence for online shopping

e) The scale of risk awareness

Perception of risk related to use online shopping services refers to the level of anxiety, concern that users feel when using online shopping services Qualitative research helps adjusting the terms to those surveyed understandable without adding or subtracting personal statement currently After adjustment, the scale of the risk perception when used as follows:

Table 3.4.6 Table remarks scale of risk awareness

Variable code Statement

PR18 18 I believe that online shopping risks are high

PRI9 19 I'm worried about the actual product designs are not

suitable for product images on the site

PR20 20 I'm worried about the actual quality of the product is

time, my money, but not effective

f) The scale online shopping experience:

Experience using and referring to comments from those affected online purchases

earlier to intend to continue to use online shopping services Scale 4 observed variables and does not change after the process of qualitative research

Table 3.4.7 Table remarks scale of online shopping experience

Variable code Statement

4 I feel satisfied with the online shopping experience for OPE24

me

OPE25 25.1 feel qualified to use online shopping services

OPE26 26 I feel that online shopping service is easy to use

27 I feel comfortable when using online shopping OPE27

services

g) Scale effects of online word of mouth EWOM

Online word of mouth is mention to the influence of positive comments and negative about the product to the customer online purchase intention of an individual After qualitative research, the initial 4 observed variables unchanged

Table 3.4.8 Table remarks scale of online word of mouth

Variable code Statement

28 Comment on the online forums are very important EWOM28

for me when I want to buy online

29 When I want to buy online, I always actively EWOM29

searching for information about that product

30 When I want to buy online, I always spend a lot of EWOM30 -

time reading the reviews online about the product

31 The positive comments on the online forum to EWOM31

influence decisions of my shopping online