The adoption of tradecard payment in Vietnam

The study starts with the bases on some theory models such as Technology Acceptance Model TAM, and computer anxiety in performing TradeCard payment as a moderator to employ for the analy

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

Luong Tung Bao

Thesis The Adoption of TradeCard payment in Vietnam

Supervisor: Prof Nguyen Dong Phong

November 2013

Acknowledgement

The process of writing this thesis is a challenging task and an insightful research Without the love, the care, the full support and guidance from my professors and my friends, I may not reach the target and complete the journey successfully

First and foremost, I would like to express great gratitude to my thesis advisor, Dr Nguyen Dong Phong for his help and guidance in conducting this research and thanks for his generous as well as his support during the time I study here Special thanks to Dr Dinh The Hoang for his dedicated guidelines in data analysis section And further thanks go to the members of my thesis committee for their feedback, comments and encouragement The thesis would not have achieved this quality without their assistance

Great thanks to my special friends in for their assistance in my life and my study Special thanks to responders for their enthusiasm to help me collect the data and thanks to ISB friends for happy moments we spent together

Finally, I would like to give my deepest and greatest thanks to my family for their love and their encouragement Thank to my Dad who always trust me, teach me to be more patient to achieve success in study and life; thank to my sweet Mom who always gives me tender cares

and encourages my dreams and aspirations

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Abstract

“Vietnam continues to be one of the world’s fastest growing sourcing locales, particularly for footwear and apparel,” said Drew Dempsey, Vice President of Global Services, TradeCard Asia-Pacific in celebration of opening new offices in Vietnam in 2012

TradeCard is one of among electronics payment methods applied for over eight years in Vietnam, marking a significant development for society in general and in banking particularly Besides that, more and more Vietnamese companies have started using TradeCard to support its business but it is still an unpopular concept for many Vietnamese people It has not caught on with the banks customer in Vietnam Thus, the main purpose of this study is to identify the adoption of TradeCard in Vietnam

The study starts with the bases on some theory models such as Technology Acceptance Model (TAM), and computer anxiety in performing TradeCard payment as a moderator to employ for the analysis TradeCard payment adoption, specifically for TradeCard in Vietnam Data of the quantitative survey is gathered from Vietnamese users in two biggest cities Ha Noi and Ho Chi Minh, who have been using this payment method with a snow ball sampling method was used to sample the subjects

The results are expected to support the proposed hypotheses They are expected to provide trading companies, bankers, and government with more information about the adoption of TradeCard in Vietnam Limitations, discussions and suggestions will be explained the results

in research and practice

Table of Contents

Acknowledgement i

Abstract ii

Table of Contents iii

List of tables vi

List of figures vii

Chapter I: Introduction 1

1.1 Background .1

1.2 Research Purpose, Objectives, and Research Questions 2

1.2.1 Research Structure 2

1.2 Scope and Limitations 2

Chapter II Literature Review 4

2.1 Definitions of Terms 4

2.1.1 Electronics Banking 4

2.1.2 Electronics Money 4

2.1.3 Electronics Payment 4

2.1.4 TradeCard payment 4

2.1.5 Electronics Payment Mean 4

2.2 Electronics Commerce Market and Electronics Payment Market in Vietnam 5

2.3 Theoretical Background of Technology Acceptance Model 6

2.3.1 Technology Acceptance Model (TAM) 6

2.4 Factors influencing the use of TradeCard and its relationship between Model Constructs 8

2.4.1 Perceived Ease of Use (PEU) 8

2.4.2 Perceived Usefulness (PU) 8

2.4.3 Perceived Risk (perceived risk in the context of online transaction (PRT) and perceived risk with product/service (PRP)) 9

2.4.4 Information on TradeCard payment (IF) 10

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2.4.5 Computer Anxiety (CA) 10

2.4.6 TradeCard payment Use (TPU) 11

2.4.7 The Relationship among Perceived Usefulness (PU), Perceived Ease of Use (PEU) and TradeCard payment Use (TPU) 12

2.4.8 Perceived Risk (PR) and TradeCard payment Use (TPU) 12

2.4.9 Information on TradeCard payment (IF) and Perceived Risk (PR) 13

2.4.10 Information on TradeCard payment (IF) and Trade Card payment Use (TPU) 14

2.4.11 Computer Anxiety (CA) on Trade Card payment Use (TPU) 14

2.5 Research Model 15

Chapter III Research Design 16

3.1 Research Questions and Associated Hypotheses 16

3.2 Subjects and Sampling 16

3.3 Instrument design 16

3.4 Expert Validity 19

3.5 Pilot Test and Face Validity 19

3.6 Quantitative Research .19

3.7 Data Analysis 20

Chapter IV Data Analysis 21

4.1 Data Collection 23

4.2 Descriptive Analysis 23

4.2.1 Respondents’ Demographics 24

4.2.2 Descriptive Statistics 25

4.3 The Validity and Reliability 28

4.4 Explanatory Factor Analysis 28

4.5 Regression Analysis 30

4.5.1 Information on TradeCard payment Predicting Perceived Risk with Product/Service 31

4.5.2 Information on TradeCard payment Predicting Perceived Risk in The

Context of Online Transaction 32

4.5.3 Variables Predicting TradeCard Payment Use 33

4.5.4 Comparisons between Two City Groups in Regression Analysis 35

4.6 Path Analysis 36

4.6.1 Effective Estimation of Perceived of Use on TradeCard payment Use 37

4.6.2 Effective Estimation of Perceived Usefulness on TradeCard payment Use 38

4.6.3 Effective Estimation of Computer Anxiety on TradeCard payment Use38 4.6.4 Effective Estimation of Perceived Risk with Product/ Service on TradeCard payment Use 38

4.6.5 Effective Estimation of Information on TradeCard payment Use 38

Chapter V Results 41

5.1 Findings and Conclusions 41

5.1.1 What Significant Factors Affecting the Use of TradeCard payment in Vietnam 41

5.1.2 How Significant Factors Affect the Use of TradeCard payment in Vietnam 42

5.3 Managerial Implication 43

5.3.1 Perceived Ease of Use 43

5.3.2 Perceived Usefulness 43

5.3.3 Perceived Risk with Product/Service 44

5.3.4 Information on TradeCard Use 44

5.3.5 Computer Anxiety 45

5.4 Limitations and suggestion 46

References 47

APPENDIX A – QUESTIONARE (ENGLISH/VIETNAMESE) 49

APPENDIX B – PILOT TEST ANALYSIS 54

APPENDIX C – TEST OF ASSUMSION OF REGRESSION 56

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List of Tables

Table 3-1 Measure of research variables for designing questionnaire……… 17

Table 4-1 Response rate in Questionnaire Survey 23

Table 4-2 Response rate in Questionnaire Survey among professional groups 23

Table 4-3 Demographic Statistics with Frequency and Percentage 24

Table 4-4 Demographic Statistics with Frequency and Percentage 26

Table 4-5 Reliability of the Developed Questionnaire 28

Table 4-6 Principal Component Analysis of the Developed Questionnaire 29

Table 4-7 Correlation Coefficients among Independent Variables under Study 30

Table 4-8 Regression Analysis for Information on TradeCard payment Variables Predicting Perceived Risk in the Context of Online Transaction 31

Table 4-9 Regression Analysis for Information on TradeCard payment Variables Predicting Perceived risk with product/service 32

Table 4-10 Regression Analysis for Variables Predicting TradeCard payment use 33

Table 4-11 Hypothesis Test Summary of the Predictors Effect on Criteria 35

Table 4-12 Summary of the Regression Analysis for Separate City, Ha Noi and Ho Chi Minh 36

Table 4-13 Summary of Estimating Direct and Indirect 38

Table 5-1 Summary of Hypothesis 42

List of Figures

Figure 2-1 Research Model 15

Figure 3-1 Research Flowchart 21

Figure 3-2 The Structure of the Method approach for this Research 22

Figure 4-1 Association of the Factors in Regression Analysis Model 34

Figure 4-2 Relationships in Path Analysis Model 37

Chapter I: Introduction 1.1 Background

The Internet has grown at a remarkable pace over years, while e-commerce has become important issues nowadays, especially for international trade, TradeCard payment has been becoming an indispensable payment trend in a modern society However, the development banking system has largely been impacted by the dominance of cash in Vietnam For many years, cash is still the “king” in Vietnam and most transactions are dominated by cash since the considerable personal consumption is done through the medium of cash up to now For corporations in particular, this has resulted to problems of cost and delay, arising from the counting, bundling, transporting and depositing of large volumes of cash which has to be handled manually, as well as the risk and inconvenience in transactions with their fellow trader The State Bank of Vietnam (SBV) made efforts in reducing the volume of cash payment transactions in the year 2006 by issuing non-cash-transaction project launched in

2006, and expect to finish this project on 2020 (SBV, 2008) The result is total liquidity composition in Vietnam changed significantly in a positive manner when the ratio of cash in total liquidity continued reducing to 14,6% in the year 2008 (as compared to that of 16,36% and 17,21% in 2007 and 2006 respectively) (SBV, 2008)

Soon after joining WTO in the year 2004, many opportunities and threats for Vietnam economic in general and banking industry are brought up for enterprises Vietnam has to change payment transaction behaviors to adapt the inevitable trend in the world Recent years, many new models of business have been appeared such as e-commerce, e-business, thus, IT has to be equipped in banking system to enhance their quality of services in satisfying customer’s expectation Since almost banks offer same services, the application of new technology in bank becomes the determinant factors deciding the success of bank in compete customer’s belief in long term resulted to many kinds of modern banking applications are now applied in Vietnamese bank The State Bank of Vietnam has made efforts in reducing the volume of cash payment transactions by issuing non-cash-transaction project in 2006 throughout 2020 Besides, banks alliances are formed and developed quickly, TradeCard payment forms are more diversified as a standard payment term for international trading Thereby it is time to enhance customer awareness and disseminate the TradeCard payment system in society

There have been some previous research on e-commerce and e-banking before, but they only focus on developed countries with the advantage in IT technology For example, researches

on the adoption internet banking in European, North America, and Finland the leading countries in online banking technology and usage Later other researchers extent in other regions including a mix of developed and developing countries are Singapore (Tan &Teo, 2000), Hong Kong (Chan & Lu, 2004; Ho & Ng, 1994) Despite a few works are done to address the electronics payment (Ho & Ng, 1994; Plouffe, Hulland & Vandenbosch, 2001), however, authors just focus on developed countries with advantage in IT knowledge Therefore, this research will analyze the TradeCard payment in Vietnam, which is known as a developing country Differently, this study focuses on TradeCard payment which is a typical TradeCard payment of e-commerce and e-transactions in a developing country in which IT and e-banking systems are still young

1.2 Research Purpose, Objectives, and Research Questions

The main purpose of this study is to identify adoption of TradeCard payment in Vietnam through factors influencing directly to its payment process for a developing country case as well as how the factors influencing the adoption of TradeCard payment in Vietnam The study hopes to bring general knowledge about electronics payment transaction to Vietnamese customers by clarifying which factors are essential and critical for TradeCard payment use Factors influencing the adoption of TradeCard payment may be the foundation of related organizations that can help them can propose programs in order to approach and serve the customers effectively This study aims to examine the factors influencing the adoption of TradeCard payment with the these specific objectives identified as following

1 To identify significant factors that influence customer’s adoption of TradeCard payment The corresponding research question developed was:

Q1 What are main factors influencing adoption of TradeCard in Vietnam?

2 To explore how the factors affect customer’s adoption of TradeCard payment in Vietnam The corresponding research question developed was:

Q2 How do the factors influencing adoption of TradeCard in Vietnam?

1.2.1 Research Structure

This research is organized into 5 chapters (ch.1) Introduction is to provide general introduction of the research, (ch.2) Literature review is a brief review of the literature on

technology acceptance model (TAM) and relevant theories, (ch.3) Research design is presented with the research model and set of research hypotheses based on the theories in the preceding section and methods used to test proposal model, (ch.4) Analysis is to discuss of data collection and analysis to support validation of relationships between variables and (ch.5) Results is the final chapter to present results of study and discussion of the implication

of study followed by presenting limitations and future research recommendation

1.3 Scope and Limitations

This study aims to research the adoption of TradeCard payment in Vietnam by examining factors affecting to the tendency use of TradeCard in Vietnam Electronics payment is a broad field but according to the specific of the context of this study, questionnaires of this study will only collected among people who have experience in using TradeCard payment over years in two big cities of Vietnam for necessary analysis

Chapter II Literature Review

According to the objectives of this study, the research tries to review and explore the TradeCard payment subject, its user acceptance in the developing country - Vietnam with technology acceptance of TradeCard payment They include (1) Electronics commerce market and electronics payment market in Vietnam, (2) Technology Acceptance Model with details in the original model (TAM) as a factor moderator which might have significant influence on the use of TradeCard in Vietnam In the meantime, the research questions or further hypotheses are formulated, proposed, and discussed

1.3 Definitions of Terms

The three key terms (i) Electronics banking, (ii) Electronics money, (iii) electronics payment, (iv) TradeCard payment (v) electronics payment means are identified according to several previous related studies as followings:

1.3.1 Electronics Banking

Electronics banking (e-banking) technology is one of these technologies E-banking represent technology a variety of different services, ranging from the common automatic teller machine (ATM) services and deposit direct to automatic payment bill (ABP), transfer electronics of funds (EFT), and home banking (HB) often referred to as internet banking (IB) Phone banking (PB), credit cards (CCs) and sale point-of- terminals (POS) are the other e-banking technologies Similarly, five basic associated services with e-banking are identified by Chou and Chou (2000) These are: account view balances and transaction histories, paying bills, funds transferring between requesting card accounts, credit advances, ordering checks

1.3.2 Electronics Money

In 1993, whenever the technological development of the new payment schemes was only just beginning, EU central banks analyzed one form of what is now called electronics money, namely electronics money stored on chip cards (electronics purses) Electronics money is defined broadly as an electronics store of monetary value on a technical device that may be widely used for making payments to undertakings other than the issuer without necessarily involving bank in accounts the transaction, but acting as a prepaid bearer instrument Electronics money might diffeence from other existing forms of money in various ways In comparison with cash, which uses only security physical features, electronics money products

use cryptography to authenticate transactions and to protect the confidentiality and the integrity of data Electronics money is no longer needs to be physically exchanged like banknotes and coins, and thus can be more easily used for remote payments In addition, unlike cash, in most schemes currently available, electronics money received by the beneficiary cannot be used again

1.3.3 Electronics Payment

The payment and settlement system is an infrastructure important of the economy A well- payment functioning system is necessary not only to facilitate the smooth operation and stability of the payment system, but also to ensure the effectiveness of monetary policy TradeCard payment is a subset of structure of the the overall payment system There are several definitions about e-payment in which TradeCard payment is defined as payments made via the clearing automated house (ACH), commercial card systems (p-card, T&E cards and fleet cards) are wire transfers as electronics The difference between a cash transaction and an electronics payment is that a TradeCard payment transaction often involves a payment channel and multi-parties, which includes payment intermediaries Payments intermediaries are those involved in authorized payment settlement, clearing payment, and settlements (Department of Communications, Australian Government 2006) TradeCard payment services are used in Vietnam not only ATM/credit/debit cards, but also credit, transfer/direct debit, internet banking, mobile banking, phone banking, e-money and prepaid card

1.3.4 TradeCard payment

TradeCard Inc (www.tradecard.com) developed TradeCard as a financial supply chain service The TradeCard platform aligned the documentary and financial requirements of a domestic or international trade transaction with the physical movement of goods, eliminating time-consuming and error-prone manual processes By streamlining and enhancing the steps necessary for purchase order approvals, payment decisions and settlement, TradeCard provided a cost-effective, practical and patented service for financial supply chain management (Farhoomand, 2005) Trade payment process through TradeCard is similar other TradeCard payment services substantially besides additional services regarding to supply chain services

1.3.5 Electronics Payment Mean

Seng (2008) defines electronics payment means of payment by an electronics method such as electronic funds transfer, electronics debit payment, electronics prepayment, electronics money, credit card, electronics bond, etc

2.1 Electronics Commerce Market and Electronics Payment Market in Vietnam

From 2002 until now, Ministry of Science and Technology with missions of state agencies management in formulating e-commerce standards has formulated, promulgated and popularized many set of standards related to e-commerce sector, including standards related

to trade data interchange, electronic data interchange for administration, commerce and transport (EDIFACT), data elements and interchange formats, XML schema definition, information processing, etc… Electronic commerce in developed Vietnam was borne the hallmark of the completely legal development in the year 2007 Electronics transaction law, modified by commerce law, ecommerce decree and three newly promulgated decrees including digital signature decree and confirmation service of digital signature, e-commerce transaction decree of activities financial and e-commerce transaction decree of banking activities All of the above decrees are legal for the e-commerce operation However, according to Vietnam Ecommerce and Information technology agency (VECITA) in the year

2008, although ministries, industries have actively deployed technology standard establishment and popularization to serve e-commerce application establishment for State management agencies and businesses, the awareness of e-commerce common standards are still low 43.5% of 50 surveyed agencies and businesses knew those standards, 56.5% did not Especially, the expert percentage who knows thoroughly ecommerce standard definition on electronic data interchange only accounts for 5-6% of respondents VECITA (2008) also show that only 10.1% of businesses apply standards to online payment according to the common development tendency of payment system via Internet Moreover, information technology with e-commerce have been developed and applied successfully in business production activity many years Especially, with the internet development, e-commerce trade

of Vietnam businesses increased fiercely, changed information develops more and more However, violation of personal information increases more and more, which makes individuals organization and s hesitate to use e-commerce trade

TradeCard, Inc., the supply chain collaboration and global trade platform used by more than 10,000 retailers, brands, manufacturers and service providers, has opened an office in Ho Chi Minh City to support growing trade flows in Vietnam More than 418,000 orders, valued at

$2.7 billion, moved through Vietnam on the TradeCard Platform from January 1 through October 31, 2012, a 92% increase in order volume versus full year 2011 Using TradeCard, more than hundreds of suppliers in Vietnam processed 639 million items and 494 million cartons during this time period (Bryan, 2012)

2.2 Theoretical Background of Technology Acceptance Model

As per the technology acceptance model is a mature model that has been validated in different context (Lai & Li, 2005) This model has been applied widely to predict the acceptance of information technology and the validity has been demonstrated across a wide variety of information technology systems (Plouffe et al., 2001) Firstly, the establish model which of usage computer often used to test computer applications as computer adoption, and word processors (Davis et al.,1989), and then expanding to internet, e-mail, intranet, e-commerce, m-commerce, e-learning, adoption and Hospital Information Systems (Al-Gahtani

& King, 1999; Davis, 2007; Horton et al., 2001; Kim & Han, 2008; Song, Koo, & Kim, 2007) under different situations of (e.g time and culture) with different control factors (e.g., gender, organizational type and size) With the successful development of TAM is with the development of IT in the world and in any case, this proves model that it is the most influential and commonly theory employed for explaining and the predicting the 12 determinants of individual behavior toward a system, manifest throughout the system utilization (Chau & Hu, 2001; Thatcher & Perrewé, 2002)

2.2.1 Technology Acceptance Model (TAM)

The technology acceptance model (TAM) that has been applied in different contexts to investigate a wide range of information technologies (Lai & Li, 2005) The Technology Acceptance Model (TAM) developed by Davis (1986) to explain computer usage behavior The theoretical basis of the model was Fishbein & Ajzen’s (1975) Theory of Reasoned Action (TRA) - a widely studied model from social psychology, which is concerned with the determinants of consciously intended behaviors This common behavior model has model widely used to predict the acceptance of information technology and the validity has been populated wide variety of information technology systems (Plouffe et al., 2001) This established model of computer usage often used initiatory to test computer model applications as computer adoption, word processors (Davis et al., 1989), and then expanding

to internet, e-mail, WWW, GSS, intranet, ecommerce, m-commerce, e-learning, Cyworld adoption and adoption Hospital Information Systems (Al-Gahtani & King, 1999; Davis,

2007) under different situations (e.g time and culture) with different control factors (e.g., gender, organizational type and size)

2.3 Factors influencing the use of TradeCard and its relationship between Model Constructs

According to the theories and models in the previous research and based on objectives, scope

of the research as well as the current situation in Vietnam, the study will apply the above TAM model into this research model As well, personal innovativeness in technology is proposed to moderate the relationships between some constructs

2.3.1 Perceived Ease of Use (PEU)

Davis (1986) affirmed that Perceived ease of use has a causal effect on Perceived useful Perceived ease of use is defined as “the degree to which a person believes that using a particular system would be free of effort” (Davis et al., 1989) Innovative technology systems that are perceived to be easier to use and less complex will have a higher likelihood of being accepted, and used by potential user (Davis et al., 1989) Because this construct focus on an individual’s perception about the level of efforts needed to use a system, perceived ease of use can be regarded as process expectancy (Davis, 2007)

2.3.2 Perceived Usefulness (PU)

With a new product or service that does not help people perform their jobs, life or it is abstract with the fact will be easily eliminated (Liao et al., 2002) There are thorough many aspects in able to evaluate the usefulness of a system Venkatesh et al (2003) affirmed that perceived usefulness is a factor which has a strong determinant of usage intentions

Perceived usefulness (PU) is also well known as performance expectation when people think that based on advantages of innovation is necessary, IT can help them to utilize productivity and aid work performance (Davis et al, 1989; Davis, 2007) In the broad context of TradeCard payment, perceived usefulness means that the system can be available and helpful for customer at any time and any place Thus, perceived usefulness can be considered as the comprehensive ability of customers in integrating TradeCard payment into their daily activities In a different viewpoint, this can be explained specifically as the attention of potential adopters’ views about the innovation when different choices offered in the same abilities performance (Agarwal & Parasad, 1999) It means that, an innovative system is

believed to be high usefulness when it adapts the need of people and connects closely the use, productivity, performance, effectiveness and satisfaction (Lu, Yu, Liu & Yao, 2003)

Although there are many concepts of perceived usefulness but the concept of Davis et al (1989) seems to be most applied “perceived usefulness is the degree to which mostly considered that use a system would improve his or her performance” is mostly applied in many research

2.3.3 Perceived Risk (perceived risk in the context of online transaction (PRT) and perceived risk with product/service (PRP))

Although there are many definitions different of perceived risk in the previous study, with this definition, risk perceived is with a dimensional multiple constructed risk overall which is into seperated psychological, financial know and performance (Ho & Ng, 1994; Lu et al., 2005) or risk of personal losing control (money, data and times), risk of losing face and failure system (Zhao, Hanmer-Lloyd, 2008) Besides, risky normally rises from individual subjective perspective (Pavlou, 2003), he strongly agree that risky is too difficult to be captured objectively No anyone can refuse the role of risk in the decision to adopt new technology system Especially, can help them risky perspective can easily escalate in e-banking services in which clients process transaction with no face to face personal contact, no cash in hand However, customers want generally to master their acts own and know or see directly the cause and the consequences of their own and others (Chan & Lu, 2004)

Advantages of electronics payment can help them reduce stages distance of payment transaction, but customers are still not willing to accept that they do not have full control over their own behaviors and system process (Pikkarainen et al., 2004) The perceived risk regarding TradeCard payment use can be considered involved in two concerns: information and customer’s money transmitted via the system is safe, and the system is enough trustworthy in handling customer information and managing their financial assets (Lee et al., 2005) Whenever using relative system, customers always face up with personal information being stolen, manipulated or misused without their knowledge perception (Featherman et al., 2006) If these are happened, it is believed that they will lose control of personal data, and more importantly, consumers fear that their details may be used inappropriately As a result, issues of security and privacy are definitely important items of perceived risk in context of online transaction (Jaruwachirathanakul & Fink, 2005; Mukherjee & Nath, 2003; Polatogu & Ekin, 2001; Wang et al., 2003)

In the scope of this research, the adoption concept of Park and his assistants, in which perceived risk consists of perceived risk in the context of online transaction (PRT) and perceived risk with product/service (PRP) which is to explain TradeCard payment adoption

by Vietnamese people wholly

They define perceived risk in the context of online transaction (PRT) as a possible transaction risk that consumers can face when exposed to electronics means of doing commerce

Four types of PRT are clearly identified as follows: privacy, security (authentication), repudiation, and overall perceived risk on online transaction They also define perceived risk with product/service (PRP) as the overall amount of uncertainty or anxiety perceived by a consumer in a particular product/service when the consumer purchase online Five types of PRP are defined as follows: functional loss, financial loss, time loss, opportunity loss, and overall perceived risk with product/service

non-2.3.4 Information of TradeCard payment (IF)

The information which customers have about its products improved likely as one of the key factor which is influencing directly to the new product adoption, services especially for information of new applied technology system in banking services (Pikkarainen et al., 2004), the finding information is the process in which consumers gather information about goods or services before purchase or use it

When start using a new system, customer maybe at an early stage in learning and processing, hence, customer often looks for information involved in it (Pikkarainen et al., 2004)

Information about new products or services can be the information about the bank which supplies TradeCard payment forms, the disadvantages advantages of TradeCard payment, information about the feature, benefits or operation of the systems, and even information involved in the amount of customers trust in using this system and so on

TradeCard payment is a special service because it offers a virtual and sensitive service involved in customer’s finance and involved in applying high and new technology The concept information also refers to information technology of the product So information can

be defined as TradeCard payment experiences, which are the consumer’s skills or ability obtained by using the services/products or study from any resources including the knowledge transfer (Nysveen & Pedersen, 2004)

2.3.5 Computer Anxiety (CA)

Anxiety has been defined and described in several previous studies These studies suggest that general anxiety can cause an individual to be reluctant to undertake specific activities, or

to not perform to their capabilities Computer anxiety commonly refers to the feeling of unease or apprehension about the consequences of using computers, or other related

information technology Howard & Smith (1988) defined computer anxiety as the tendency

of a person who experiences a level of difficulty to his or her impending use of a computer while Igbaria (1990) defined computer anxiety as the comprehensive tendency of individuals who is to be uneasy, apprehensive or fearful about current or future use of computer In another research, computer anxiety is defined as a feeling of being fearful or apprehensive when using or considering the use of a computer by Leso and Peck (1992) Previous studies

related to computer anxiety have investigated the effect this trait can have on topics such as perceived ease of use, computer usage, computer self-efficacy and the development or utilization of computing skills Typically, these studies have found that computer anxiety has

a negative relationship on these outcomes; i.e higher levels of computer anxiety leads to lower levels of usage, lower computer self-efficacy, slower development of computing skills, and the perception that software is difficult to use During this research a particular focus is placed on the role of an individual’s expectations of success and the influences of these expectations on their approach to computer use in TradeCard payment use

2.3.6 TradeCard payment Use

TradeCard payment is a subset of structure of the overall payment system TradeCard payment is thus defined by BIS (2004) as “payments that are initiated, processed and received electronicsally.” E-payment services can be retail, corporate and wholesale TradeCard payments (Tan 2004) The difference between a cash transaction and an electronics payment is that a TradeCard payment transaction often involves a payment channel and multi-parties, which includes payment intermediaries Payment intermediaries are those involved in payment authorization, payment clearing and settlements (Department

of Communications, Australian Government 2006) Usage of electronic payment is indicated

as attitude toward, which is referred to the feeling of person’s toward a particular behavior being influenced by individual beliefs in using appropriate services (Shih & Fang, 2004) Based on the level development of the country and the state of the banking system, the degree

to which e-payment use is differ (O'mahony et al., 2001) When mention to electronics payment, many Vietnamese customers immediately think about ATM, credit or debit cards

But TradeCard payment services are used in Vietnam are credit, transfer/direct debit, internet banking Attitude is individual’s feeling or emotion about using (Al-Gahtani & King,1999),

so people seems more believe in habit than machines, visible action than invisible method This study applies the definition of Shin and Fang (2004) as the main concept of TradeCard

is easier to use, more sufficient and to be interested by customers because they can satisfy standard life, education, and age Most of previous researches also demonstrated the influence of each other of education, life and age constructs

Davis defined PU as the degree to which a person believes that using a particular system would enhance his or her job performance (Davis, 1989) Prior researches indicated that PU

is an important indicator for technology acceptance (Davis, Bagozzi & Warshaw 1989) In another research also showed that PU has the greatest impact on new system use PEU is defined as the degree to which a person believes that using a particular system would be free

of effort (Davis, 1989) Several prior studies proved that PEU has a direct and equal or even strong effect than PU on the acceptance toward a new technology system Hence an application perceived to be easier to use than another is more likely to be accepted by users than others By applying these prior researches, the following hypotheses were proposed:

H1: Perceived ease of use (PEU) has a positive effect on TradeCard use (EPU) in Vietnam

H2: Perceived usefulness (PU) has a positive effect on TradeCard use (EPU) in Vietnam

2.3.8 Perceived Risk (PR) and TradeCard payment Use (TPU)

Costello (2001) in his study reflected that when customers who are uncertain of the systems and the services of banking, they may worry about an intangible payment in which provides a service of non-face-to-face-contact and physical service payment with potential financial risk and perceived threats to privacy and security In the research, the invisibility nature of

electronics transactions tends to heighten the consumer’s risky perception in general (Lee, Kwon, & Schumann, 2005)

Regarding on perceived risk in context of transaction, more than three-fifths of respondents experienced in e-transaction responded in the survey made by Wu and Wang (2005), the result indicated that customers who are more awareness of the existence of potential risk because they use system more and have better understanding of the system Perceive Risk (PR) is believed to be a predictor and barrier to TradeCard payment use (Wu and Wang, 2005), and plays a negative role in individuals’ decision to adopt TradeCard payment (Lee et al., 2005)

A common and widely recognized obstacle to electronics payment use is the lack of security and privacy over e-payment, which are the most important future challenges that banks are facing (Chan & Lu, 2004) Park et al (2004) shown that consumers consider the risk related to the online transaction (i.e., privacy, security, non-repudiation, etc.) as one of the important factors when they purchase on the Internet Further, they indicated that to reduce consumers’ risk with product/service, online vendors should build trust with consumers by giving them complete confidence on the product/service that they provided According to the discussion and the acceptance of many previous researches, in this research, the concept of Park considerably applied basically including perceived risk in the context of online transaction (PRT) and perceived risk with product and services (PRP), so the following hypotheses are proposed:

H3: Perceived risk has a negative effect on TradeCard use (TPU) in Vietnam

(H3a-Perceived risk in the context of online transaction (PRT)) and (H3b-(H3a-Perceived risk with

2.3.9 Information on TradeCard payment (IF) and Perceived Risk (PR)

The seeking customers trust to high-risk-level products and services such as TradeCard payment is not easy Customers are often concerned that their personal information may be manipulated or misused without their knowledge If this happens, they believe they will lose control of personal data, and more importantly, consumers fear that their details maybe used

in appropriately Thus, the more information on the system they know, the more they are confident in using it Especially, when processing through e-payment, customers often perceive that there is a high level of risk even though the risk level is maybe low (Agarwal & Parasad, 1999) Hence, it may lead them seeking more information to ascertain the level of risk, mitigate the perception of risk or manage the perceived risk The more experience on

using the system, the more information they get, and therefore they perceive the risk to be less and have more trust in the system The below hypothesis was posited:

H4: Information on TradeCard (IEP) has a positive effect on perceived risk (PR) of

TradeCard in Vietnam (H4a: Perceived risk in the context of online transaction and H4b: Perceived risk with product/service)

2.3.10 Information on TradeCard payment (IF) and Trade Card payment Use (TPU)

In a research of Loonam & O’Lughlin (2006), the survey made to people who used banking services for necessary assessment of information on a new related system, it is found that respondents had less interested of general information once using e-banking services in finding specifics information related The prevailing in general attitude among respondents was that they did not appreciate banking information being pushed on them Additionally, respondents were in difference of financial information during the survey unless it directly related to their specific financial requirements However, in most of previous researches, information on new products or services play a very important role for customers in making decision whether they will buy that product or service or not in manner The amount of information consumers’ learn of products and services has been identified as a major factor impacting the adoption

Consumers may be at a nearly stage in learning and processing information about the products and services Thus, helpful product information is vital at this stage to gain awareness and knowledge among consumers in an attempt to develop confidence in using the new services Chen & Macredie (2005) indicated that users with tremendous experiences have significant active behaviors toward electronic payment in reality, so the following hypotheses are proposed:

H5: Information on TradeCard (IEP) has a positive effect on TradeCard use (EPU) in

Vietnam

2.3.11 Computer Anxiety (CA) on Trade Card payment Use (TPU)

Previous researches related to computer anxiety have investigated the effect this trait can have on topics such as perceived ease of use, computer usage, computer self-efficacy and the development or utilization of computing skills These studies typically have found that computer anxiety has a negative relationship on these outcomes; i.e higher levels of computer anxiety leads to lower levels of usage, lower computer self-efficacy, slower

development of computing skills, and the perception that software is difficult to use In this research a particular focus is placed on the role of an individual’s expectations of success and the influences of these expectations on their approach to computer use in TradeCard use Thus, the following hypotheses are proposed:

H6: Computer Anxiety has a positive effect on TradeCard Use in Vietnam

2.4 Research Model

As shown in the figure 2-1 below, the conceptual model of this study consists of six constructs: perceived ease of use, perceived usefulness, perceived risk (Including Perceived risk with product/service and Perceived risk in the context of online transaction), and information on TradeCard, TradeCard use, and computer anxiety As well, personal innovativeness in technology is proposed to moderate the relationships of perceived ease of use to TradeCard use, perceived usefulness to TradeCard use, perceived risk to TradeCard use, information on TradeCard to TradeCard use From these fix constructs, there are six hypotheses should be tested.

Perceived Usefulness

Perceived Ease

of Use H5

H3a

Perceived Risk with Product/

Service (H4a)

Perceived Risk

in the Context of Online Transaction (H4b) Transaction

H2

H6 Computer

Anxiety Perceived Risk

Information

TradeCard Payment Use

H1 H4

Figure 2-1 Research Model

H3b

Chapter III Research Design

In this chapter, a research framework was developed and based on the above discussion as a basic research foundation The research questions and hypotheses proposed in Chapter II were specified in this chapter which would be studied with the research methods presented after The research procedure was presented at the end of this section

3.1 Research Questions and Associated Hypotheses

This section restates the research questions and hypothesis formulated in the previous chapter There are 2 research questions accompanied by 9 associated hypotheses under the following 2 categories of questions:

1 What are factors influencing the use of TradeCard in Vietnam? (Q1)

2 How do the factors influence the use of TradeCard in Vietnam? (Q2)

To answer this question, the study hypothesizes as follows:

H1: Perceived ease of use has a positive effect on TradeCard use

H2: Perceived usefulness has a positive impact on TradeCard use

H3: Perceived risk has a negative effect on TradeCard use

H3a: Perceived risk with products and services has a negative effect on TradeCard use H3b: Perceived risk in the context of online has a negative effect on TradeCard use

H4: Information on TradeCard has a positive effect on perceived risk

H4a: Perceived risk in the context of online transaction

H4b: Perceived risk with product/service

H5: Information on TradeCard has a positive effect on TradeCard use

H6: Computer anxiety has a positive effect on TradeCard use

3.2 Subjects and Sampling

The research was undertaken with two phase of study: a pilot study and a main survey followed The pilot phase was to validate and refine the measures while main survey was

used to test its measurement and structural model shown on figure 3.1 research flowchart To

avoid a possible confounding effect of demographic parameters and experience, the participants were screened using demographics filters The sample was further balanced

based on these parameters and the users were divided in groups The sampling model presumed further random assigning of the participants to the groups This was done to avoid the bias of the selection, when participants assigned to the groups are unequal in some characteristics The sample was checked for a possible imbalance of the demographics factors between the two groups, and no significant covariant variables were discovered

The population of this study was the TradeCard users from Ha Noi and Ho Chi Minh - the two biggest cities in Vietnam with the access of any electronics transaction The number of respondents chosen for this study was from TradeCard users basing on the rate of TradeCard users in each city provided The respondents were chosen randomly by using the snowball sampling method which each respondent was asked to identify one or more suitable individuals Respondents were senior executives in the sampled firms but further interviews conducted to specific information for TradeCard usage levels from users most likely to have access to it frequently

3.3 Instrument design

There were 35 items developed in the questionnaire which is presented in Appendix A The sub-heading variable names in Part II of Appendix A would not be shown in a formal questionnaire Table 3.1 shows the construct of the questionnaire and their supporting literatures

5 My interaction with TradeCard payment

is clear and understandable

6 Overall, I find TradeCard payment easy

10 Using TradeCard payment for banking service increase productivity

14 Users may have to pay other fees when using TradeCard payment

D Context of online transaction (PRT)

• Security

• Security (authentication)

17 Payment information (account name, password…) may be used by other users

18 The suppliers may say that they still haven’t got money by TradeCard payment

21 I have received information about using TradeCard payment service from a bank, a phone bank, the internet, a friend,

an advertisement and another source

Venkatesh 2000) computer skills.

23 Computers do not scare me at all

24 Using Computers makes me feel easy

25 Working with a computer makes does not make me feel nervous

26 Computers make me feel comfortable

27- I feel using TradeCard payment is a wise idea

28- I feel using TradeCard payment is a good idea

29- I like to use TradeCard payment

Table 3-1 Measure of research variables for designing questionnaire

The 35-item self-administered questionnaire is constructed with two parts of questions Part 1, Administrative and Classification questions (Question 1-6): The aim of this part is to gather general data from the responses It includes multiple choice questions concerning Part 2, Target questions (Question 7-35): The questions are developed based on the literature review, displayed under the forms of affirmative statements, and categorized in ten groups:

▪ Group 1, 6 questions, Q7 – Q12, refer to the Perceived Ease of Use,

▪ Group 2, 4 questions, Q13 – Q16, refer to the Perceived Usefulness,

▪ Group 3, 8 questions, Q17 – Q24, refer to Perceived Risk (including Perceived Risk with Product/Service and Perceived Risk in the Context of Online Transaction),

▪ Group 4, 3 questions, Q25 – Q27, refer to Information on TradeCard payment

▪ Group 5, 5 questions, Q28 – Q32, refer to Computer Anxiety

▪ Group 6, 3 questions, Q33 – Q35, refer to TradeCard Payment Use

3.4 Expert Validity

From literatures, the questionnaire was first developed Next, it was primarily judged and validated by the two experts (one in TradeCard office located in HongKong and one Vietnamese who all were experienced in both research, employing and managing TradeCard payment over years) on the items of the self-administered questionnaire in suitability A small

number of changes were done followed these judging and validating Later, the questionnaires were delivered to the participants

3.5 Pilot Test and Face Validity

After expert validity, the modified questionnaire was continuously passed to the forty users for secondarily judged and validated on the items of the self-administered questionnaire The requirement of judging and validating were: reading/reviewing the instructions and questions; answering the questions and providing your answers; correcting or commenting directly in the nearby space of this instrument, not only the wording, grammar, etc., but also wherever there is inappropriate; and providing any relevant comments (if yes) The result of pilot test is shown on appendix B

3 6 Quantitative Research

Firstly, like many other research, the research was began with the determination of the actual situation The actual situation determined in this research comes from the problems are performing of TradeCard payment in the two biggest cities in Vietnam and then, the research purpose was identified The next step is to determine research purpose After that, the literature review was done and focused on the definition of the factors effects on the users’ acceptance of TradeCard and using TAM models in the research in order to theoretical foundation for the research The research frame was designed after that with the research approach: e-mail survey

Next, the questionnaires for mail survey will be developed based on literature reviews with consultancy from several experienced academic research experts and experienced businessmen Then, the Pre-survey step is conducted for questionnaires to evaluate measurement on validity and reliability perspectives Later, quantitative data was collected from mail survey with self-administrative questionnaires Finally, conclusions and suggestions were made marking the end of the research process

The research started from April of 2013 with the beginning step by identifying research dilemma and research objectives The developed questionnaires, after being reviewed and refined following pilot test and expert consultancy, were delivered to respondents in both Ho Chi Minh City and Ha Noi city at the beginning of June in 2013 and collected after 2 month Collected data were being analyzed in October 2013; results of analyses were interpreted into

text in the same month of October 2013 Finally, the research procedure was ended by the end of November by completing writing reports

Figure 3-1 Research Flowchart

Define actual situation

Design research model

and develop hypotheses

Refine questionnaire

with consultancies Questionnaire pre-survey

 Validity and Reliability

 Exploratory Factor Analysis

 Regression Analysis

running Linear Regression and Multiple Regression for all variables at first and then by

analyzing Path Analysis on variables which had significant effects on TradeCard payment Use only, relied upon the developed research questions to test the associated hypotheses Conducting Path analysis to get further understanding the indirect and direct effects those variables caused on TradeCard payment Use Finally, the relationship between Personal Innovativeness in IT and Perceived of Use, Perceived Usefulness, Information on TradeCard payment and Perceived Risk in pair was also examined by running Multiple Regression

Figure 3-2 The Structure of the Method approach for this Research

Quantitative Method

Data Collection Survey Questionnaire

Data Analysis SPSS version 16.0

Result

Chapter IV Data Analysis

This chapter presents the data analysis performance as well as corresponding results for this study on the gathered data The quantitative data were analyzed by both descriptive and inferential statistics Descriptive statistics summarizes several respondents’ profiles while inferential statistics shows whether relationships exist between variables Users’ comments

on the current employment of TradeCard and suggestions for the improvement of using TradeCard payment were not the subject of this chapter and were presented in the finding section of the next chapter

4.1 Data Collection

Data collected from users in Ha Noi and Ho Chi Minh cities as mentioned above Data was collected by either online survey or asking questionnaires directly to respondents randomly The demographic variables included at the end of the questionnaire are also considered variables that influence the formulation of relevant perceptions

Nearly 69% (145 out of 300) respondents replied the questionnaires with complete answers in demographic and investigative questions Of the responses 77% (58) returned from Ha Noi city’s respondent and 81% (87) from respondents in Ho Chi Minh city Descriptive statistics offering profiles of respondents are presented in Table 3-4 and Table 3-5

Table 4-1 Response rate in Questionnaire Survey

City Sample size Response rate Valid response rate

Table 4-2 Response rate in Questionnaire Survey among professional groups

Ha Noi Ho Chi Minh Valid response rate in total

response/sent out response/sent out response/sent out

TradeCard payment methods and frequencies in using TradeCard payment; and (ii)

respondents’ comments and suggestions concerning the use of TradeCard payment

4.2.1 Respondents’ Demographics

Table 4-3 shows the summary of demographic statistics of the research respondents on

frequency and percentage resulted from the descriptive analysis

Table 4-3 Demographic Statistics with Frequency and Percentage

20 - 30 transactions 14 24.1% 20 23.0% 34 23.4%

The attributes of respondents consist of nine major control variables including (1) business

type, (2) profession, (3) annual revenue, (4) experience, (5) frequency (6) know about

TradeCard payment from as Table 4-3

The table shows that the rates of business type respondents are different between Ha Noi and

Ho Chi Minh Most of respondents are wholesale trade and manufacturing industry in Ho Chi

Minh (37.9% and 42.5%) compared with 35.5% and 51.7% in Ha Noi

More than sixty percent respondents have annual revenue more than US$6 million, while

only 6.2% who is less than US$ 1 million The rate with the annual revenue from US$1 to

$2.5 and from $2.5 to $4 million is equally accounting 8.3%, while the rest of US$4 - $6

million is 16.6% Although TradeCard payment as applied and used in Vietnam for more than

eight years, just only 15.9% of respondents have more than 7 years experiences in using

TradeCard payment while most of them are using form 3-5 years and 15.2% of users with

less than 1 experiences year According to statistics of Table 4.1, most of TradeCard payment

users and the others know about TradeCard payment and its services through business

partners and the conference (71% and 16.6%, respectively)

Among respondents said about the TradeCard payment frequency, it’s accounting for 27.6%

to which using 10-20 transaction monthly while the least 7.6% using from 5 – 9 transactions

monthly and 20.7% accounted for more than 30 transactions in a month

4.2.2 Descriptive Statistics

The results of the descriptive statistic which evaluate and present the questionnaire variables

of the respondents are shown in Table 4-4 The framework has 29 items, including 6 items of

Perceived Ease of Use, 4 items of Perceived Usefulness, 4 items of Perceived risk with

product/service, 4 items of Perceived risk in the context of online transaction, 3 items of

Information on TradeCard payment, 5 items of Computer Anxiety and 3 items of TradeCard

payment Use The results of means and standard deviation, as shown in the Table 4-4, reflect

that, for the construct of Perceived Ease of Use, respondents tend to perceive a high degree of

emphasis on the positive side of the research items with mean score higher than 3.00 in a five

point Likert scales except for PEU1 and PEU2 Moreover, for the construct of Perceived

Usefulness and Information on TradeCard payment Use, respondents also give positive

evaluations with all means over 3.0 The results show that the respondents have positive

evaluation about the ease-of-use features, information and TradeCard payment and perceive

TradeCard payment is useful for their work performance and shorten the time of payment

transactions However, the perception of customers evaluated on Perceived risk with

product/service, Perceived risk in the context of online transaction, seem lower For the

construct Perceived Risk, the results show that all items are mostly at the mean exception of

PRT1 less than its group mean Besides, the results of construct Information on TradeCard

payment suggest that respondents tend to positive perception in term of information involved

in TradeCard system with most of mean values over 2.5 These results indicates that even

users feel that TradeCard payment system is ease of use and usefulness for their work, but

they still take risk in consideration and still not much self-confident about the information

and knowledge about the TradeCard payment which they have

In term of standard deviation (S.D), most of S.D values are accepted The results show that,

these items are very good because the difference among results are not much high

Table 4-4 Demographic Statistics with Frequency and Percentage

PEU1 1 It is easy to become skillful at using the TradeCard 2.72 1.185 PEU2 2 I find TradeCard payment easy to what I want to do 2.65 1.218 PEU3 3 It is easy for me to learn how to use the TradeCard payment 3.16 1.327 PEU4 4 I find TradeCard payment to be flexible to interact with 3.62 1.228 PEU5 5 My interaction with TradeCard payment is clear and

PU3 9 Using TradeCard payment services enables to utilize banking

PU4 10 Using TradeCard payment for banking service increase

PRP1 11 Not the same as the introduced and advertised functions 3.68 0.877 PRP2 12 Waste time using TradeCard payment in transactions 3.58 0.837 PRP3 13 It may lose the opportunity to use other payment services that

PRP4 14 Users may have to pay other fees when using TradeCard payment 3.61 0.858

PRT1 15 It may have problems on transmission line so TradeCard payment

PRT2 16 Payment information is not secured (account name, password,

IF1 19 I have a generally received enough information about TradeCard

IF2 20 I have received enough information about the benefits of using

IF3

21 I have received information about using TradeCard payment service from a bank, a phone bank, the internet, a friend, an advertisement and another source

2.64 0.916

CA1 22 I am confident that I can learn computer skills 3.59 1.131

CA4 25 Working with a computer makes does not make me feel nervous 3.75 1.111

TPU1 27 I feel using TradeCard payment is a wise idea 3.12 1.251 TPU2 28 I feel using TradeCard payment is a good idea 2.73 1.331