Internet banking using intention in vietnam

The convenience; availability andaccessibility and security variables as the technology acceptance have the significantpositive impact on internet banking using intention.. Beside the ma

TABLE OF CONTENTS

ABSTRACT 6

ACKNOWLEDGEMENTS 7

Chapter 1 Thesis introduction 8

1.1 Chapter introduction 8

1.2 Background 8

1.3 Motivation and research questions 10

1.4 Data and methodology 11

1.5 Contribution and implication 12

1.6 Chapter Conclusion 12

Chapter 2 Literature review 13

2.1 Chapter introduction 13

2.2 Internet banking and overview of Vietnam case 13

2.2.1 Internet banking 13

2.2.2 Overview of Vietnam internet banking 16

2.3 Literature gap 19

2.4 Hypothesis development 26

2.4.1 Variable Y: Internet banking using intention 26

2.4 2 The variables X 27

2.4.3 Demographic factors 35

2.5 Chapter conclusion 38

Chapter 3 Data and Methodology 39

3.1 Chapter introduction 39

3.2 Variables and sample procedure 39

3.3 Model testing 45

3.4 Chapter conclusion 46

Chapter 4 Result analysis 48

4.1 Chapter introduction 48

4.2 Demographic result 48

4.3 Variable result 50

4.4 Reliability analysis result 53

4.5 Exploratory Factor Analysis (EFA) 55

4.6 Linear regression result 56

4.7 Discussion on the hypotheses 1 and 2 58

4.8 Discussion on hypothesis 3 62

4.9 Discussion on the research questions 64

4.10 Chapter conclusion 65

Chapter 5 Thesis conclusion 67

5.1 Chapter introduction 67

5.2 Review of research questions, hypotheses and result 67

5.3 Contribution 68

5.4 Implication 69

5.5 Limitation 70

5.6 Future work 70

REFERENCE 72

APPENDIX 75

A1 Detail table of mean and standard deviation of items 75

A2 Data result from SPSS solution for Variable Y 78

A3 Factor analysis 78

A3.1 KMO and Barlett’s test 78

A3.2 Total variance explained 78

A4 Linear regression analysis 80

A5 Demographic analysis 83

A5.1 One way – ANOVA analysis 83

A5.2 Independent samples T-Test 85

A6 Questionaire 87

LIST OF TABLES

Table 2-1: The e-banking service of some banks in Vietnam 17

Table 2-2: Research model 37

Table 3-1: The summary of items of variables 40

Table 3-2 : Content of demographic factors 45

Table 3-3: Sample procedure 47

Table 3-4: The summary of data and methodology 47

Table 4-1: Demographic profile 49

Table 4-2: The summary compared mean and standard deviation of items 50

Table 4-3: The summary of reliability test 54

Table 4-4: KMO and Bartlett's Test 55

Table 4-5: Total Variance Explained 55

Table 4-6: Rotated Component result 56

Table 4-7: Model Summary 57

Table 4-8: Model ANOVA 57

Table 4-9: The linear relationship result 58

Table 4-10: Demographic impact result 62

Table 4-11: Result on the independent t-test on 2 selected ariables 63

Table 4-12: Research question and hypothesis related 65

The purpose of this research is to explore extendedly the impact of technologyacceptance; and the external environment factors on internet banking using intention inVietnam Then, the result from this study shows out that all variables have the impact oninternet banking using intention in Vietnam The convenience; availability andaccessibility and security variables as the technology acceptance have the significantpositive impact on internet banking using intention Whereas, the external environmentfactors all have the considerable impact on internet banking using intention Privacy isthe only one which has the negative impact on internet banking using intention with thestudy Beside the main variables from technology acceptance and external environmentcategories, the research introduces the significant demographic factors to test theirimpact on internet banking using intention The result gives out that the age, educationlevel and income level factors have the impact on internet banking using intention.Because the key paper does not work on the regression relationship analysis, the studyhere actually helps extend it by the regression relationship result Moreover, thecombination of variables from the different existing studies helps the reader have theinteresting view on this topic Furthermore, the research contributes to the academic interm of the impact of many variables on internet banking using intention in Vietnam Itcertainly indicates the implication for the academic researchers, internet banking users,bank and policymakers However, there are some limitations with the thesis includingthe method, respondent and sample …

I would like to thank my supervisor - Doctor Quoc Pham Phu due to hisenthusiasm tutorial, careful guidance, remarkable patience, useful feedback and spiritualencouragement Without his concern, I can’t finish my thesis here

Moreover, I would like to thank the comments from the board on my work whichhelps me revise my paper in the good way

Finally, I would like to thanks other individuals and the respondents whocontribute to my thesis done

April 21, 2014

Hiep Phan Duy

Thesis introduction Chapter 1

1.1 Chapter introduction

This study here mentions about the individual users’ intention to use internetbanking in Vietnam In term of adoption, it further investigates the impact of variablesextracted from technology acceptance and the external environment theory on Vietnaminternet banking adoption Specifically, the thesis examines the variables ofconvenience, availability and accessibility, content and design, speed, security, privacy,bank image and management, fees and charges which are identified in a research aboutMalaysia internet banking adoption Moreover, it is an attempt to extend more variables

by adding two more variables including added service and government support from theother existing research to help introduces the big picture about the impact of thevariables on internet banking using intention in Vietnam adoption

The content of this chapter includes 6 main parts Part 1.2 is about thebackground on the variables which are argued to have the impact on internet bankingusing intention in Vietnam adoption Part 1.3 declares the motivation and the researchquestions of this thesis Part 1.4 introduces the research objectives and the hypothesis.Part 1.5 describes in brief the data, methodology and the result analysis Part 1.6discusses about the contribution and implication which are expected from this workingpaper Finally, Part 1.7 summaries the structure of thesis

1.2 Background

The variables mentioned in the thesis are the current argument about the impact

of the technology acceptance model and external environment factors on the internet

banking users’ adoption Actually, the technology acceptance model (TAM), thetechnology planned behavior (TPB), the external factors or the structural model… areconducted popularly in the previous studies for a purpose of finding out the internetbanking preference in many markets including Vietnam market For instance, it comesout here with 2 studies which mentioned about internet banking using intention inVietnam Chong, Ooi, Lin and Tan (2010) work on the perceived usefulness, theperceived of use, the trust and the government support as the key impacts on internetbanking using intention in Vietnam adoption Moreover, Pham, Cao, Nguyen andTran(2013) investigate about the impact of perceived risk, the perceived ease of use, theperceived benefit, the trust, the perceived risk, the bank image, the subjective norms onthe intention to use Vietnam banking adoption Both 2 studies here build up the basicvariables which come from the technology acceptance model and the technology planedbehavior These ideas are certainly the background for the development of specificvariables like the convenience, the availability and accessibility, the content and design,the speed, security, privacy… in the recent studies Actually, these variables appear withthe Malaysia studies about internet banking using intention Poon (2008) identifies10variables including the convenience, the availability, the accessibility, the content, thedesign, the speed, the security, the privacy, the bank image and management and feesand charges Moreover, Sohail and Shanmugham (2003) explore the variables likeaccessibility, reluctance, costs, trust, security, convenience and ease of use.

1.3 Motivation and research questions

As mentioned in the part 1.2, the Malaysia authors use the more detail measures

to explore the variables with users’ adoption momentum of internet banking inMalaysia This one motivates my attempt to follow this way to find out something forinternet banking using intention in Vietnam These more detail variables to the internetbanking acceptance bring me out with the question as follow:

Research question 1 (RQ1): Do the variables including convenience; availability and accessibility; content and design; speed; security; privacy; bank image and management; fees and charges affect the internet banking using intention in Vietnam?

Beside the variables from the Key study, there is an attempt to add some morevariables to bring out the bigger picture about the internet banking users’ preference.The added ones come from the other existing papers about internet banking usingintention in both Vietnam and foreign market as an extension with this research

Research question 2 (RQ2): Do the added variables including government support and added service affect the internet banking using intention in Vietnam?

Finally, Demographic factors are mentioned in this thesis; however, they are theselected ones which are supposed to be the suitable factors with internet banking usingintention in Vietnam situation

Research (RQ3): Do the demographic factors including gender; age; education level; income level and internet accessibility have the impacts on the internet banking using intention in Vietnam?

Certainly, the thesis is to find out the answer on the three main objectives Thefirst objective is about the impact of variables from the study in Malaysia to internetbanking using intention in Vietnam Poon (2008) explores the significant impact ofvariables like convenience; availability and accessibility; content and design; speed;security; privacy; bank management & image and fees & charges The second objective

is to confirm the significant impact of the added variables on the thesis model Bauer,Hammerschmidt and Falk (2004) argue about Added services as the quality portal ofinternet banking to the customer benefit which is my first added variables in this thesis.Moreover, Chong, Ooi, Lin and Tan (2010) figure out the important role of governmentsupport determinant in Vietnam; therefore, it can’t be ignored to become the secondadded variables with this thesis Finally, the third objective is about to examineDemographic factors on the Vietnam banking adoption These factors are extracted fromthe Malaysian research to be worked out here in the thesis Demographic factors areinvestigated dependently beside the main variables

1.4 Data and methodology

A questionnaire is prepared to collect the information of the Vietnamese users.These persons take a survey about the variables as above to the internet bankingacceptance The data from the survey is crunched with the three steps of analysisincluding reliability test with cronbach alpha; the exploratory analysis (EFA) and thelinear analysis The result from the regression relationship is used to work ondiscussion, contribution and implication

1.5 Contribution and implication

This thesis has some contributions for the academic research when it continues

to explore the behavior of internet banking users on the theories of technologyacceptance model and external environment factors Moreover, an attempt to add up thevariables from the foreign studies helps the researchers in Vietnam have more idea onthe topic of internet banking adoption Furthermore, the relationships between thevariables as well as Demographic factors to internet banking using intention in Vietnamcan support for the key papers and give out some implication Thus, the implication ofthis thesis is the interest subject to the academic researchers, Vietnam internet bankingusers

1.6 Chapter Conclusion

The thesis here consists of 5 chapters including introduction, literature review,methodology, result and conclusion which helps find out the answer for the relationshipbetween the detail variables and the internet banking using intention Actually, the nextchapter discusses about the literature background for the thesis topic

Literature review Chapter 2

2.1 Chapter introduction

The literature review is an important chapter which introduces the rationale todevelop any research Here, I would like to take advantage of the existing studies oninternet banking using intention to build up my own story This step certainly enhancesthe reliability on my thesis The reference sources for my topic are absolutely matchedwith the larger number of existing studies and papers

Thus, this chapter consists of the 3 main parts The first one mentions about theoverview of Vietnam internet banking The next one argues about the gap of my study.Finally, the variables and the hypotheses are developed into detail

2.2 Internet banking and overview of Vietnam case

2.2.1 Internet banking

In term of banking industry, the internet is used to provide the internet- bankingservice with the purpose of connecting the clients as more as possible Many persons aswell as the researchers believe that the internet banking helps fulfill the disadvantage ofthe traditional banking service Bony and Kabir (2013) think that the moderntechnology like internet –banking may bring out a new way to their clients and helpbuild up a close relationship to the customer Moreover, Bony and Kabir (2013) mentionabout the word of Bill Gate that the banking is vital in the future instead of thetraditional one Furthermore, Jayawardhena and Foley (2000) believe that the e-bankingservice has an important role in the banking industry in the developed countries.Actually, the advantage of e-banking is not only for customers

but also for the banks themselves (Nehmzow, 1997) It is certainly that the e-bankinghelps bring out a revolution of marketing distribution channel in the banking industrywhich even supplies better service to their clients At present, the internet banking in theperiod of globalization is appreciated as the competitive advantage rather than the otherways of channel distribution (Flavián, Torres & Guinalí, 2004) Finally, Karjaluoto,Mattila and Pento (2002) argue that the customers can access to their account anytimeand anywhere with the internet banking The long time transaction with the traditionalbank is eased as the click of computer mouse.

The definition of the e-banking adoption may be a bit different among thestudies Chong, Ooi, Lin and Tan (2010) argue in their research that the internet bankinghas the working machine like the old banking service; however, the key point here iselectrical usefulness Moreover, Young (2001) says that the customer can do manythings with the internet- banking with the click anywhere They can transfer moneybetween the account, check the transaction record, make a payment and many thingselse Otherwise, Pham, Cao, Nguyen and Tran (2013) claim that the term e-bankingshould be the common concept rather than the banking service with the internet;however, the customers accept this concept when they can take advantage of the service

of bank via the technology device such as computer, smart phone and ipad It iscertainly that at the beginning period of internet banking, the term e-banking isunderstand as the popular way like what is happening at present Before these authors,Daniel (1999) mentions that the banking service supplies to the customer by thecomputer, mobile phone and even the television called the e-banking It can be an oldstory about e-banking because there are many theses about this issue However, in my

research, I would like to mention again the concept of e-banking which would be mytarget under investigation Actually, the e-banking is understood as the connectionbetween banks and customers in attempt to solve the demand of financial transactionand recording (Pham, Cao, Nguyen & Tran, 2013).In the development of technology,Sathye (1999) believes that the e-banking supplies to its clients the online payment forthe online business along with the other added service which helps the clients havemore options.

As the studies review above, it is clearly that the internet banking servicesupplies the clients with many benefits Jayawardhena and Foley (2000) say that the e-banking changes its client’s activity It helps the customer have more power to controltheir account and have not to pay attention on the location and time Pham, Cao,Nguyen and Tran (2013) in their research about e-banking adoption in Vietnam believethat the e-banking in Vietnam certainly provide its customers the authorization to accesstheir account whenever they have a demand Moreover, the e-banking in Vietnam bringsabout many kinds of service to guarantee the convenience, time saving This thing mayhelp its client save time On their other hand, the banks can explore some advantagesfrom the e-banking service Jayawardhena and Foley (2000) think that the banks canenjoy the cost reduction from the e-banking service Like what happened in thedeveloped countries, the Vietnam banks in the beginning period of growth increase theirbranches throughout the country The purpose helps enhance the bank image with thegeographic category and provide the face to face service to the potential clients.However, this strategy ought to deal with the huge investment cost and the sub-management issue Therefore, the occurrence of e-banking service

can help ease these disadvantages of the marketing strategy Pham, Cao, Nguyen andTran (2013) suppose that the cost for developing the traditional service is higher thanthe online banking Before develop more on the literature review on the internetbanking adoption, there is a brief of the current Vietnam internet banking industry here.

2.2.2 Overview of Vietnam internet banking

The Vietnam banking industry grows strongly when it becomes a member ofWTO The capital market; therefore, is quickly dynamic with the boom of bankingindustry Moreover, the trend of globalization blows the international trading up Amassive number of foreign banks are established in Vietnam We can give out here somefamous names like ANZ, HSBC, Standard charters, Citibank… and many others comefrom Malaysia, Japan and Korea Be along with a large number of local big banks likeVietcombank, Vietinbank, ACB…

In term of the banking service, most of Vietnam big banks try to supply the fullservice to their customer The card service, ATM machine, customer care, promotion

… are provided to their clients The e-banking service is usually the options to theusers When the clients open the bank account in Vietnam, they are offered to fill outsome papers and decide whether to take the e-banking service or not Some bankscharge of the initial fee to use this service whereas some ones else do not However, themaintain fee is applied by most of banks

The users in Vietnam utilize the e-banking to access their financial transactionchecking, transfer money and e-shopping With the next young generation, this service

contains a big potential to change the way of financial transaction Here, some of bigbanks in Vietnam with their e-banking service are listed as follow:

Table 2-1: The e-banking service of some banks in Vietnam

version is offered to help their client enjoy the convenience Beside the big banks inVietnam, the medium size bank in Vietnam tries to invest about the online banking

It is certainly that the internet banking become common in Vietnam; however, itsbenefit for both banks and customers should be under the investigation For instance,some persons do not believe into the security of internet banking and the service is notsatisfied with the client’s demand and others… The retail banking once faces to theunsuccessfulness because the individual client can’t believe about what the onlineservice can help them (Stewart, 1999) Moreover, Ahmed, Feroz, Islam and Tarikul(2008) claim that the banks in the developing countries ought to choice their ownmarketing strategy which is about the kind of delivery or the sophisticate service

to this delivery Vietnam is a developing country and its banking industry appreciatesthe internet banking as an important strategy in the future Therefore, the thesis herefinds out something to discuss about this issue It is not only the impact of thetechnology acceptance, the external environment factors but also the demographicimpact on the intention of using internet banking Furthermore, there is a doubt thatVietnamese clients’ like the banking deal It can be that the clients would like to dealface to face for the financial transaction rather than the online without practical contact.Hiltz, Johnson and Turnoff (2006) argue that the customers who are interested in theemotional and socio-emotional have a tendency to face to face transaction rather than aboring online machine The examination from the research here may find out somethingabout this situation For one more thing, it can be that the difference on demographicsignal in Vietnam context can lead to the variance of e-banking favor Poon (2008)mentions about Demographic factors on the e-banking adoption.

In a conclusion, the popularity of e-banking adoption topic is understandable.The behavior of internet users is the subjective of many researchers around the world.For instance, web retailing adoption explores the nature of internet users Web retailingbehavior (O’cass & Fenech, 2003) Moreover, the financial behaviors in bankingindustry are also the attractive problem to the scholar such as Consumer FinancialLiteracy and the Impact of Online Banking on the Financial Behavior of Lower-IncomeBank Customers (Servon & Kaestner, 2008) In the South East Asia, some authors fromMalaysia have the works on the e-banking service related to the customer favor (Sohail

& Shanmugham, 2003) or the customer adoption to the e-banking acceptance (Poon,2008) In Vietnam, The e-banking, many studies are

conducted both the local master students and the foreign master students The commonmodels are about the technology acceptance model and the external environmentfactors For instance, Chong, Ooi, Lin and Tan (2010) investigate 3 variables oftechnology acceptance and 1 variable of external environment Moreover, the structuralmodel is mentioned with many hypotheses built (Pham, Cao, Nguyen & Tran, 2013) Inthe part 2.3 right here, the thesis gap is given out in detail.

2.3 Literature gap

The technology acceptance model is applied popularly to measure the reaction ofthe users to the technology product or service; however, the recent variables exploredgradually give out the new concerns Davis (1989) introduces this model including thetwo main factors including the perceived usefulness and the perceived ease of use topredict the intention of user to the technology choice These two variables later areapplied with a large number of studies about the internet banking For internet bankingusing intention in Vietnam, Chong, Ooi, Lin and Tan (2010) conduct an empiricalanalysis which is based on the technology acceptance model (TAM) They work on bothtwo main factors including perceived of usefulness and perceived ease of use Theyargue that the perceived usefulness is what the internet banking help to improve itscustomers’ life quality This quality seems to be the convenience on which thecustomers can access the internet website; check the current status of their financialaccount; manage their financial position and conduct the transactions on their cash flow

In term of the perceived ease of use, the customer has to face to the difficult ofcomputer literacy The perceived ease of use actually measures the customer’sexperience on the internet – banking service Next, Szajna

(1996) examines about the availability of technology acceptance model to an empiricalresearch The result points out that the technology acceptance model is an available tool

to predict the intention of using the internet service However, the author begins tocompare the availability of measurement between the old technology acceptance modeland the revise ones Furthermore, Lee, Kozar and Larsen (2003) summarizes the past,present and future stories of the technology acceptance model on over one hundredstudies to find out the contribution of this model to the academic category However,some reports claim that the technology acceptance model itself may consist of theunsuitable things to the specific target Therefore, it should be added to fulfill theparticular mission Actually, the technology acceptance model changes from time totime Moreover, the model is structured and adjusted to enhance its performance Poon(2008) investigates the technology acceptance to the internet banking with the moredetail variables which investigate the customer’s adoption momentum instead of theoriginal variables of the perceived usefulness and the perceived ease of use.Furthermore, Pham, Cao, Nguyen and Tran (2013) examine the internet bankingindustry in Vietnam with the variables of the technology acceptance model in thestructural format For their study, they argue the interrelationships between the variables

of the technology acceptance model to find out a lot of hypotheses For an instance,Admin (2007) who writes about the credit card usage intention add more items tomodify the original model Therefore, the tendency of extending the original models orformula is always a main source of the academic research In this case, because thestudies in Vietnam are mainly about the variables of

the technology acceptance model, it opens a motivation on this gap to identify the newvariables of the Vietnamese’s adoption momentum of the internet banking.

Be along with the advance of the technology acceptance model, the technology variables are explored to support on the argument One of the currentcommon variables is about the external environment determinants Certainly, Lee,(2009) agrees the important role of these variables to the e-banking adoption For thelately studies, a large number of researchers tries to add or combine many factors withthe technology acceptance model in their studies Chong, Ooi, Lin and Tan (2010)added two other variables including government support and trust beside the perceivedusefulness and the perceived ease of use of the technology acceptance model Theyargue that the role of government in Vietnam is definitely significant The bankingindustry is absolutely controlled by the State bank of Vietnam Moreover, thedevelopment of internet industry counts on the government investment Therefore, theybelieve that the government support factor affects the internet banking Moreover, theresearch of Pham, Cao, Nguyen and Tran (2013) is another example These authors alsomake an investigation about internet banking in Vietnam with a structural model Besidethe three variables of technology acceptance model such as the perceived usefulness, theperceived ease of use and the perceived risk, the studies added the factors of bankimage, trust and subjective norms Furthermore, Sohail and Shanmugham (2003)examine the internet banking and customer preference in Malaysia with the reluctancefactors which tested the willingness of Malaysian customers to the change from thetraditional banking service to the online service Next, Jaruwachirathanakul and Fink(2005) with a study in Thailand mention

non-about the significant external environment variables called perceived behavior controlwhich has an impact on internet banking using intention in Thailand Finally, Poon(2008) in a research tests the Malaysian preferences to the technology acceptance modelwith many detail variables There were ten variables which are identified from theresearch including convenience, accessibility, feature availability, content, design,speed, security, privacy, bank management and image, fees and charges Actually, thevariables of technology acceptance model are extended into the detail ones Thus, eightvariables are belongs to the category of the technology acceptance and two variables areidentified as the external environment impact on internet banking using intention Based

on the tendency of studies, the thesis here certainly works on the gap by putting manydetail variables to find out their impact on the intention to use Vietnam internet banking

Though the Vietnam bank industry becomes boomed since 2000 with manytopics of internet banking adoption in Vietnam, The gap about this issue is absolutelycontinued to be exploited For more argument, the chapter confirms the gap in internetbanking using intention studies in Vietnam right here as follow:

Chong, Ooi, Lin & Tan (2010) use the technology acceptance model and oneexternal environment variable to build up their model about internet banking usingintention in Vietnam The 4 variables of their research include the perceived usefulness;the perceived ease of use; trust and the government support Their hypotheses argue thatthere is a positive impact of these variables on internet banking using intention inVietnam The questionnaire with the Likert scale is distributed to the bank customer inHanoi The regression analysis then is conducted to find out the

relationship between their variables and internet banking using intention in Vietnam.The result from the regression analysis gives out that there are 3 variables which have apositive impact on internet banking using intention in Vietnam and one variable – theperceived ease of use have the negative effect From their result, the perceivedusefulness and the government support have the significant impact on the intension touse e-banking Though their research come out with something about the technologyacceptance model and external environment variable to internet banking usingintention , it is not yet enough detail about the reaction of the user to the acceptance ofinternet banking service The variables of the technology acceptance model are theclassic ones to internet banking using intention At present, there is a demand to explorethe detail variables to draw out the bigger picture Therefore, the internet banking users’adoption should be investigated with the variables which describe the benefits of theinternet banking service in detail For instance, instead of the perceived usefulness inthe common understanding, we can examine the variables of convenience; availabilityfeature; accessibility; design and content or speed… which describe the detail benefits

of the internet banking service and how the user react on these benefits Then we add upall these variables to find out how they all have an impact on internet banking usingintention This argument is certainly the main motivation in my working thesis.Moreover, in the research of Chong, Ooi, Lin & Tan (2010), the variable of governmentsupport is the significant factor which can be included with the variables in the researchhere However, only one variable of external environment may be not enough to argue

on the users’ behavior For this circumstance, I also believe that we should add up a fewmore variables like the bank

management and image or fees and charges which may play a considerable role ininternet banking using intention.

For more an example about the gap in my thesis, it can be written about anotherresearch about internet banking using intention in Vietnam Pham, Cao, Nguyen andTran (2013) give out the structural model for internet banking using intention inVietnam One again, the usage of the technology acceptance model is mentioned in theirresearch However, the way to make the investigation is very different They attempt tofind out the chain of relationships from the variables of technology acceptance modeland the factors from the external environment instead of the total effect of thesevariables on internet banking using intention The authors argue more than 14relationships among the variables and the impact of the variables on internet bankingusing intention For instance, they believe that the variables of trust have a relationshipwith the perceived benefits; the perceived ease of use have an impact on the perceivedbenefits; the perceived ease of use have a relationship with the trust… then, thesevariables affect internet banking using intention There are 9 equations in this researchwhich are built up to support the hypotheses However, the paper does not come out anyresult to their argument The purpose of paper is to introduce the interrelationships with

a structural model Moreover, in a summary, it remains the main variables from thetechnology acceptance model have an impact on internet banking using intentionincluding the perceived usefulness; the perceived ease of use; the trust and the perceivedbenefits Furthermore, the researchers attempt to include the bank image variable intheir model Nevertheless, one variable may be not enough to measure the users’behavior when there are many variables such as the government

support or fees and charges which seem to have the significant effect on internetbanking using intention in practical Therefore, it should add up as many as possible thevariables which have the impact on internet banking using intention in an attempt todraw out a bigger picture about internet banking using intention Moreover, thevariables of the technology acceptance model may be replaced by the variables in detailwhich describe the internet banking service specifically The variables help bring out theinsight about whether the customer prefers or not prefer to the advantage of the internetbanking service.

Actually, the variables of users’ adoption momentum draw out clearly theadvantage and the issue of the internet banking Poon (2008) in a research about theMalaysian perspective on the e-banking service mention about 10 variables includingthe variables from the technology acceptance and the variables from the externalenvironment From the existing studies, the author builds up the hypothesis for thevariables of convenience; accessibility; feature availability; bank management andimage; security; privacy; design; content; speed and fees & charges There are a lot ofitems for each of the variables here The items describe in detail how the internetbanking service can help the users enhance their performance For instance, the clientsagree that the function of transaction detail and statement regularly help them enjoy theconvenience of the internet banking service By that, the item contributes to identify thatconvenience has an impact on internet banking using intention The detail of the itemsand the particular description of the determinants certainly help us understand moreabout internet banking using intention Moreover, how these variables together have theregression relationship on the internet banking acceptance

motivates the struggle to find out the whole picture on this issue Poon (2008) exploresthese variables as above which all have the significant impact on internet banking usingintention in Malaysia However, the author just tests the cronbach alpha of thesevariables without the beta analysis to internet banking using intention This is a gap for

my thesis to find out the beta figure of these variables here to internet banking usingintention Furthermore, the finding of Poon is about the Malaysian perspective orIslamic community on internet banking using intention Therefore, the result of Islamicbanking may be different from the Vietnam circumstance

Overall, the thesis here takes advantage of the variables from the studies inMalaysia and includes 2 more variables from the other studies to build up the impacts

on internet banking using intention The description of variables in my model ismentioned right away in the next section Moreover, the hypotheses are revealed based

on these variables This study is believed to help draw out the detail picture andcontribute to the gaps about the internet banking topic in the Vietnam banking

2.4 Hypothesis development

2.4.1 Variable Y: Internet banking using intention

In term of variable Y for the thesis, the items from an existing research inVietnam are used to build up the items for the variable Y with this thesis – internetbanking using intention here Chong, Ooi, Lin and Tan (2010) give out 4 items for theirvariable Y to test the internet banking using intention in Vietnam Therefore, the thesishere uses the items from these authors The content of variable Y is about the intention

of user to the internet banking in Vietnam It is mentioned in detail in the chapter 3

2.4 2.The variables X

For the first variable in my model, the convenience is one of the variables which

is belongs to the original measurement of the technology acceptance – the perceived ofusefulness Chong, Ooi, Lin and Tan (2010) write in their research about internetbanking adoption in Vietnam that the perceived of usefulness from the online bankingwould help the users enjoy its service The customer can access their account anytimeand anywhere without contact the bank by the way of face to face Therefore, theinternet banking is argued to be a better method than the traditional banking Sohail andShanmugham (2003) in a study about the internet banking preference in Malaysiamention about Convenience They give out two items to test this variable The first item

is the time saving which has a very high cronbach alpha 0.911 and the second one is theconvenient way of doing bank transactions which has a cronbach alpha of 0.795.Certainly, it is not difficult to find out the studied about the relationship between theconvenience and the e-banking acceptance For instance, Liao and Cheung (2002) inSingapore measure the client perceptive here to the e-banking service including thisvariable The data from survey shows that the convenience is one of the most importantattributes to the customer’s preference Moreover, a descriptive study is conducted tounderstand about the customer attitude and the e-banking service among thesophisticated users in Turkey which mentions about the important effect of convenience

to the e-banking service (Akinci, Aksoy & Atilgan, 2004) Poon (2008) in her researchdoes a very detail investigate on the

relationship between the convenience and the intention to use the internet banking Theauthor builds up 9 items to test this variable From the study, the writer finds out a veryhigh cronbach alpha of 0.9761 More than 80 percent of respondent agrees that theconvenience affects internet banking using intention in the Malaysia Based on theliterature review here, the convenience is as the first variable in the model The variable

is examined by the three items which is introduced in the methodology part of theresearch As a hypothesis, this variable is argued to have a strong positive impact oninternet banking using intention in Vietnam

H 1a: Convenience has the positive impact on internet banking using intention

in Vietnam.

Next, the second variable comes from the key concepts – the perceived ofusefulness and the perceived ease of use The usefulness of service or product is the onethe measurement of the satisfaction of customer The client can be happier with themore smart features and the availability of multi-functions A study about thesatisfaction of banking customer is conducted in detail with the research in Malaysia(Poon, 2008) Moreover, some other authors examine about the alternative approach toupgrade the function of e-banking service including the voice function, kanseiengineering (KE) and quality function deployment (QFD) ( Gonzalez, Mueller & Mark,2008)

Sohail and Shanmugham (2003) include the accessibility as a factor whichaffects internet banking using intention in Malaysia However, they only used two items

to test this factor Sohail and Shanmugham (2003) think that the “internet access” and

“internet connection speed” are enough to test the accessibility (p

214).Poon (2008) claims these variables with a lot of items There are ten items for theconcept of accessibility and eight items for the concept of feature availability The resultfinds out that the cronbach alpha of accessibility is 0.9713 and the cronbach alpha offeature availability is 0.8779.Over 60 percent of respondent agrees that these variableshave an impact on internet banking using intention Based on this paper, the study herefinds out what happens with the availability and accessibility in Vietnam internetbanking However, there a selection and reduce the items for the suitable things to theVietnam circumstance As a hypothesis, the availability and accessibility variable issupposed to have a positive impact on the Vietnamese internet banking adoption.

H 1b: Availability and accessibility have the positive impact on internet

banking using intention in Vietnam.

Next, the third variable may be related to the perceived ease of use Actually, thecontent should be updated and clear which help the customer feel easy to conduct theirdeal Chong, Ooi, Lin and Tan (2010) tell about both of these concepts In their paper,the factor of the perceived of usefulness has a high positive relationship with internetbanking using intention in Vietnam; whereas, the factor of the perceived ease of use has

a negative impact on the intention to use the internet banking in Vietnam Let see whatChong, Ooi, Lin, and Tan (2010) show out that the Vietnamese users feel difficultrunning their account on the online banking in Vietnam On the other hand, in the thesishere, Content and design have the impact on internet banking using intention.According to Poon (2008), there are a large number of respondent from the study agreethat the design and content determinants have the positive impact on

internet banking using intention Therefore, these variables are mentioned to have thepositive impact on the Vietnamese adoption to the internet banking.

H 1c: Content and design have the positive impact on internet banking using intention in Vietnam.

Next, the fourth variable is about the speed The speed may belong to the concept

of the perceived of usefulness This factor mentions about the quality of portal service.The speed of downloading the information from the bank and the frequency of suspendsituation sometime effect the favor of the clients The element which effects on thespeed can be the content downloading and connection method (Jayawardhena & Foley,2000) Poon (2008) builds up the 5 items for the speed determinant Therefore, Speedhere in the study has a positive impact on internet banking using intention in Vietnam

H 1d: Speed has the positive impact on internet banking using intention in Vietnam.

Next, in term of the fifth one, security is an important variable The variablecomes from the concept the perceived of risk The security is not only the priority issuewhen the banks build up their online system but also the important dimension to decidethe loyalty of their customers However, the security can cause the problem with theease of use The conflict between the security and ease is mentioned in the existingstudy (Hertzum, Jorgensen & Norgaard, 2004) Moreover, the other authors mentionabout the quality of e-banking portal which is about the security quality (Bauer,Hammerschmidt & falk, 2005) Due to the conflict between the security and the easyaccess, some of smart solution is created to meet the demand of the client

The smart card and fingerprint software … have been born to solve this problem.Certainly, the future of technology is fast and safe (Claessens, Dem, Cock, Preneel &Vandewalle, 2002) Pham, Cao, Nguyen and Tran (2013) argue that the e-bankingbusiness is all about the trust business They believe that the customer is willing to usethe internet banking until they were satisfied with the safety Bauer, Hammerschmidtand Falk (2004) with the quality of e-banking portals write about the security factor asthe core service They claim that the security and trust play a vital role with the portalquality of internet banking Bauer, Hammerschmidt and Falk (2004) mention two items

of “securing payment system; data/transfer security” for the security factor and threeitems of “reliability of quotes and price; understandability; discretion” for the trustfactor (p 163) Poon (2008) examines security in the detail items The cronbach alphafor security factor is found out of 0.9856 – a very high figure Over 65 percent ofrespondent believes that the security factor has a positive impact on internet bankingusing intention in Malaysia Based on this literature, Security has a strong impact oninternet banking using intention in Vietnam

H 1e: Security has the positive impact on internet banking using intention in Vietnam.

Next, the sixth variable - privacy is other factor extracted from the concept of theperceived risk Many studies about internet banking using intention in Vietnam do notmention about this factor The security factor is written more than what happen toPrivacy Therefore, this means that the factor of privacy does not affect internet bankingusing intention Poon (2008) shows out the different story Over 45 percent ofrespondents agree that the privacy factor has an impact on the Malaysian internet

banking perspective The cronbach alpha for this scale is also very high when it peaks0.9814 However, the respondents who have no comment on this factor in Poon’s studytook over a high figure Over 35 percent of user says that they don’t know the privacyfactor which has an impact on the internet banking That is the situation in Malaysiacontext Let see the respondents in Vietnam think how the privacy factor on internetbanking using intention Therefore, Privacy is supposed to have a positive impact on theinternet banking acceptance.

H 1f: Privacy has the positive impact on internet banking using intention in Vietnam.

Next, the seventh variable is the final one which related to the technologyacceptance idea in this study The variable is about the added service In the developedcountries, they have a very good public transportation; a modern online commerce andthe sophisticate financial market This situation requires the internet banking serviceupgrade its information The online payment or the schedule references is necessary tothe customers Bauer, Hammerschmidt and Falk (2004) in their research claim that theportal quality of internet banking should include three categories The first one is calledthe core service which secures the basic service and the trustworthiness The second one

is about the problem-solving service which mentions about the benefits, availability andthe accessibility of the online service The final one is the additional service whichincludes the added values and the extra – benefits of the online banking service Based

on the literature review of the added service, the hypothesis argues that the addedservice has a positive impact on internet banking using intention

H 1g: Added service has the positive impact on internet banking using

intention.

The eighth variable in this thesis is the first one of the external environmentcategory Government support is mentioned in a paper as the external effect on the e-banking adoption (Hernandez & Mazzon, 2007) The other research about internetbanking in Singapore mention about the government support (Tan & Teo, 2000) Theinvestment of the government into the technology industry, specifically in this case –the internet infrastructure may have an impact on the intention of user to use internetbanking The good infrastructure of internet service can enhance the usefulness of theinternet banking Moreover, the government develops the broadband access of theinternet service to help the speed and the convenience of internet banking (Picot &Wernick, 2007).Furthermore, the 3G service is about the government’stelecommunication policy (Lehr & McKnight, 2003) which has an impact on theperceived usefulness of internet banking using intention In term of Thailand– a SouthEast Asia country like Vietnam, Jaruwachirathanakul and Fink (2005) claim thatGovernment support is a considerable impact on the internet banking They argue thatthe governments play a very important role to the e-banking user Chong, Ooi, Lin andTan (2010) give out 4 items which is used to test this factor The paper finds out a veryhigh beta for this factor (0.276).Evenly, this level is as high as the level of the perceivedusefulness in their study It seems to be that Government support is a significant one ofthe external environment category Therefore, in this paper, this factor again is retestedwhen it is combined with the other variables

H 2a: Government support has the positive impact on internet banking using intention in Vietnam.

Next, the second variable of external environment category is to the bankmanagement and image Flavián, Torres and Guinalíu(2004) think that the bank imageand management is all about the reputation, quality service which is satisfied with thecustomer preference Like the technology products, the Vietnamese may choose to buythe good brand name though the quality service has not much different in a comparison.For instance, someone likes to use the internet banking of HSBC because they love aforeign company They believe that the foreign product could bring out a better service

… Olavarrieta and Friedman (1999) mention that there is a bias thinking for the service

of the good reputation product The bank management and image variables arementioned in some studies about internet banking in Vietnam Pham, Cao, Nguyen andTran (2013) in their structural model write about the bank image Poon (2008) alsobelieves that these factors have the impact on internet banking using intention amongthe users Poon (2008) builds up a very detail items to test these factors Over 50percent of respondents agree that this factor affects internet banking using intention;however, over 30 percent of persons have no idea about this impact The cronbach alphafor this factor is about 0.822 This figure is good in the term of the technical analysis.The study here supposes that the variables have the positive impact on the internetbanking preference

H 2b: Bank image and management have the positive impact on internet

banking using intention in Vietnam.

Finally, the tenth variable is about the fees and charges A research mentionsabout the success of controlling the cost administration (Siriluck & Speece, 2003).Truly, the dimension of fee and charge is usually included into the model when theauthors examine the effects on the e-banking service The Malaysian behavior isexamined about the fee and charge of e-banking (Poon, 2008) The cost to use theinternet banking is not the new concept for this topic The authors in Malaysia usuallyinclude these variables to test their model Sohail and Shanmugham (2003) claim thecost determinant with the examined two items such as “cost of computer and cost ofinternet connection” (p 214) Poon (2008) includes 8 items to test Fees and charges Inthat study, over 70 percent of respondent believes that the factor of fees and chargesaffect the internet banking intention The cronbach alpha of this factor is 0.7954 - goodfigure in this kind of test Therefore, this factor is a significant element to internetbanking using intention As a hypothesis, Fees and charges have the positive impact onthe internet banking preference.

H 2c: Fees and charges have the positive impact on internet banking using intention in Vietnam.

2.4.3 Demographic factors

Beside the main variables, the demographic variables are mentioned in thisstudy There are some prior studies which examine the effect of demographic to factors

on the e-banking adoption The result shows out that the age and educational level have

no significant impact on the e-banking service whereas the other demographic factorsgive out the opposite story (Sohail & Shanmugham, 2003) On the other hand, one studyalso investigates the effect of many demographic factors to

the selection of e-banking service The result argues that some factors including age,educational level, income level, computer literacy, internet accessibility have asignificant relationship with the usage of e-banking (Poon, 2008) In that page, theimpact of the demographic is mentioned in the implication part and finds out somethingvalue for the marketing strategy of the banking industry Therefore, in this thesis, theimpact of demographic on internet banking using intention in Vietnam is supposed asfollow:

H 3: Demographic factors including gender, age, income level, education level and internet accessibility have the impact on internet banking using intention in Vietnam

In a summary, the study is to examine the 10 sub-hypotheses and 1 demographichypothesis in my study as follows:

H 1a: Convenience has the positive impact on internet banking using intention in Vietnam.

H 1b: Availability and accessibility have the positive impact on internet banking using intention in Vietnam.

H 1c: Content and design have the positive impact on internet banking using intention in Vietnam.

H 1d: Speed has the positive impact on internet banking using intention in Vietnam.

H 1e: Security has the positive impact on internet banking using intention in Vietnam.

H 1f: Privacy has the positive impact on internet banking using intention in Vietnam.

H 1g: Added service has the positive impact on internet banking using intention

Table 2-2: Research model

Technology acceptance variables

Convenience (XA)

Availability and Accessibility (XB)

Content and Design (XC)

H 1a,b,c,d,e,f,g (+)

Internet banking using intention

2.5 Chapter conclusion

On the background of literature review, this thesis identifies 10 variables to build

up a model Moreover, the variables mainly come from the key research and the otherstudies The gap of thesis is mention about to clarify the motivation to execute thiswork Finally, the literature background help build up the hypotheses of this thesis Thenext chapter mentions about how the data and methodology are conducted to fulfill thegap and answer the research question in the chapter 1

Data and Methodology Chapter 3

3.1 Chapter introduction

The part 3.2 introduces how data and the sample procedure were executed Then,the part 3.3 describes about the methodology to test the collected data Would thevariables from both the technology acceptance and external environment category allhave the positive impact on internet banking using intention? The result of data analysiscan be used to answer this question Then, it is the background to test the 3 mainhypotheses in the chapter 2 and answer the 3 research questions

This chapter, indeed, begins with the introduction of the items of the variables.Next, the content of items is described in detail Next, the story of sample procedure ismentioned to clarify the data collection Finally, the methodology helps the readerseasier to understand the chapter 4 – result analysis

3.2 Variables and sample procedure

The chapter 2 introduced 10 variables of the thesis model There were 7 variablesidentified as the dimension of technology acceptance The items for each variable wereselected from the ones of the existing studies Conveniences consists of 3 items; theavailability and accessibility variable includes in 5 items; the content and designvariable has 3 items; the speed issue includes in 3 items; the added services factors has

3 items; the security one includes 3 items and the privacy one has 3 items The number

of items for the dimension technology is 23 items In the key paper, there are over 60items totally used to test the preference; however, most of the factors have a very highfigure of cronbach alpha 8 out of 10 items in the key paper with a cronbach alpha isgreater than 0.95 This situation could lead to the redundant

phenomenon; therefore, the thesis only includes the most suitable ones for thecircumstance of Vietnam.

Beside these variables, there were 3 variables of the external environmentcategory which were claimed to have the significant impact on internet banking usingintention in Vietnam The government support factor has 3 items; the bank managementand image has 5 items and the fees and charges factor has 3 items The total 10 itemswere identified in the thesis model in an attempt to draw out the big picture aboutinternet banking using intention in Vietnam

Furthermore, the demographic 5 factors was mentioned in the thesis includinggender, age, income level, education level and internet accessibility which had thesignificant impact to internet banking using intention in the key paper Poon (2008)explores that the gender, age, income level, education level and internet accessibilityhave the significant impact on the Malaysia perspective about internet banking usingintention Therefore, the thesis here included these demographic to find out with thecircumstance of Vietnam The tables below help summarize the content of the 10variables and 5 demographic factors

Table 3-1: The summary of items of variables

Variable

YY1

Y2

Y3