UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF POLITICAL ECONOMY RESEARCH ON FACTORS INFLUENCING ELECTRONIC PAYMENT WHEN SHOPPING ONLINE ON E-COMMERCE PLATFORM OF HANOI PEOPLE INSTRUCTOR: Dr. LE MINH QUANG STUDENT : LE THI NHUNG CLASS : QH-2020E KINH TE CLC 3 PROGRAM : HIGH QUALITY HA NOI - 10/2023 UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF POLITICAL ECONOMY RESEARCH ON FACTORS INFLUENCING ELECTRONIC PAYMENT WHEN SHOPPING ONLINE ON E-COMMERCE PLATFORM OF HANOI PEOPLE INSTRUCTOR: Dr. LE MINH QUANG STUDENT : LE THI NHUNG CLASS : QH-2020E KINH TE CLC 3 PROGRAM : HIGH QUALITY HA NOI - 10/2023 TABLE OF CONTENTS LIST OF ABBREVIATIONS LIST OF FIGURES LIST OF TABLE. Significance of the topic 2.
Research subject and scope 4. Structure of the study CHAPTER 1: THEORETICAL BASIS AND LITERATURE REVIEW. Problem 1: Use of TRA and TPB 1. Problem 2: Use of TAM and UTAUT 1.
Theoretical Model of consumer decision 1. Theory of Reasoned Action (TRA) 1. Theory of Planned Behavior (TPB) 1. Technology Acceptance model (TAM) 1.
Unified Theory of Acceptance and Use of Technology (UTAUT)20 CHAPTER 2: RESEARCH DESIGN 2. Research hypotheses and model. Proposed research model. Data collection method 2.
Secondary data collection. Primary data collection. Sample design and sampling methods. Data analysis and processing method.
Evaluation of scale reliability by Cronbach’s Alpha 2. Exploratory factor analysis (EFA) 2. Multivariate regression analysis. CHAPTER 3: RESEARCH RESULT AND DISCUSSION 3.
Statistics on electronic payment usage behavior. Statistics on demographic characteristics. Exploratory factor analysis (EFA). Factor analysis for independent variables.
Factor analysis for the dependent variable 3. Testing models and research hypotheses 3. CHAPTER 4: CONCLUSION AND RECOMMENDATION. For electronic payment providers.
For online stores. For regulatory Agency. REFERENCES APPENDIX Appendix 1: Questionnaire (English) Appendix 2: Results LIST OF ABBREVIATIONS ITEM | ABBREVIATIONS MEANING 1 Ecommerce Electronic Commerce 2 EFA Exploratory Factor Analysis 3 TAM Technology Acceptance Model 4 TPB Theory of Planned Behavior 5 TRA Theory of Reasoned Action 6 UTAUT Unified Theory of Acceptance and Use of Technology ii LIST OF FIGURES Figure 1.1: Theory of Reasoned Action model Figure 1.2: Theory of Planned Behavior model Figure 1.3: Technology Acceptance Model Figure 1.4: UTAUT model Figure 2.1: Proposed research model.1: Histogram of Standardized Residual iii LIST OF TABLE Table 2.1: Measurement scales Table 3.1: Heard of Electronic Payment Method Table 3.2: Usage of Electronic Payment Method Table 3.3: Frequency of using electronic payments Table 3.4: Statistics on demographic characteristics .5: Cronbach’s Alpha Table 3.6: KMO and Bartlett test results for independent variables Table 3.7: Eigenvalues and variance extracted from independent variables .8: Rotated component matrix with independent variable .9: KMO and Bartlett test results for independent variables Table 3.10: Eigenvalues and variance extracted from independent variables .11: Rotated component matrix with independent variable Table 3.12: Results of KMO and Bartlett's Test for the dependent variable .13: Eigenvalues and variance explained for dependent variable .14: Pearson’s correlation analysis Table 3.15: Adjust R square result Table 3.16: Regression analysis results. Significance of the topic E-commerce in Vietnam has witnessed a remarkable trajectory of growth, establishing itself as a significant player in the Southeast Asian digital market.
One of its most notable achievements is its resilience and stability, even in the face of global economic downturns. This stability is not just a testament to the robustness of the sector but also to the adaptability and evolving nature of Vietnamese businesses. The country has capitalized on the e-commerce boom, leading to emerging opportunities, especially in the logistics sector. Efficient logistics have played a pivotal role in ensuring timely deliveries, enhancing customer satisfaction, and building trust in online shopping.
Furthermore, the Vietnamese e-commerce landscape is characterized by a diverse range of platforms, each catering to different market segments, offering consumers a plethora of choices and convenience at their fingertips. However, like any burgeoning industry, the e-commerce sector in Vietnam is not without its challenges. One of the primary barriers is the hurdles new entrants face when trying to penetrate the market. The established competition, combined with the unique dynamics of the Vietnamese market, can be daunting for newcomers.
Additionally, there are inherent challenges related to infrastructure, stringent regulations, and building consumer trust. These barriers, if not addressed, could potentially hinder the exponential growth trajectory of e-commerce in Vietnam. In essence, while the achievements of Vietnam's e-commerce sector are commendable and set a precedent for other emerging markets, it is imperative to address the existing challenges to ensure sustained growth and prosperity in the digital age. Besides the challenges mentioned above, electronic payment is also a problem when shopping on e-commerce sites in Vietnam.
Electronic payment, while gaining popularity in Vietnam, faces several challenges when it comes to online shopping on e-commerce platforms. One of the primary challenges is the lack of trust in online transactions. Many Vietnamese consumers are still skeptical about the security of electronic payments, fearing potential fraud or unauthorized transactions. Infrastructure is another concern.
The country's electronic payment infrastructure is still in its developmental phase, leading to occasional downtimes and transaction failures. Additionally, there's a lack of widespread awareness and understanding of electronic payment methods among the older generation, making them hesitant to adopt such methods. While online shopping and electronic payments have seen an increase in popularity, the transition from cash-based transactions, deeply rooted in Vietnamese commerce culture, to digital payments is gradual. Addressing these challenges is crucial for the further growth and acceptance of electronic payments in Vietnam's e-commerce landscape.
For the above reasons, the author conducts the study: Research on factors influencing electronic payment when shopping online on e-commerce platform of Hanoi people. General objective This study will examine the factors influencing the adoption and utilization of electronic payment methods by Hanoi residents while shopping online on e- commerce platforms. Based on the findings, the study will provide proper recommendations and implications for the e-commerce platforms to attract more customers, specifically in Ha Noi. Specific objectives First, identify the factors affecting the adoption of electronic payment methods by Hanoi residents while shopping online on e-commerce platforms.
Second, quantify the magnitude of the impact of these factors on the adoption of electronic payment methods by Hanoi residents while shopping online on e- commerce platforms. Third, provide proper recommendations and implications for the e-commerce platforms to attract more customers, specifically in Ha Noi. Research questions Corresponding to the proposed research objectives, this topic aims to answer the following questions: First, what is the factors affecting the adoption of electronic payment methods by Hanoi residents while shopping online on e-commerce platforms? Second, how these factors impact on the adoption of electronic payment methods by Hanoi residents while shopping online on e-commerce platforms? Third, what are recommendations and implications for the e-commerce platforms to attract more customers, specifically in Ha Noi? 4. Research subject and scope 4.
Research subject Factors influencing electronic payment when shopping online on e-commerce platform of Hanoi people 4. Research scope Spatial scope: Ha Noi Time scope: September 2023 to October 2023 Content Scope: studying about factors impact on the adoption of electronic payment methods by Hanoi residents while shopping online on e-commerce platforms; recommendations and implications for the e-commerce platforms to attract more customers, specifically in Ha Noi. Structure of the study Chapter 1: Theoretical basis and literature review Chapter 2: Research Design Chapter 3: Research Result and Discussion Chapter 4: Conclusion and Recommendation CHAPTER 1: THEORETICAL BASIS AND LITERATURE REVIEW 1. Problem 1: Use of TRA and TPB An empirical analysis of Kolkata's adoption of electronic payments was offered in the research of Roy & Sinha (2014).
Perceived Ease of Use (PEOU), Perceived Usefulness (PU), Perceived Credibility (PC), Perceived Risk (PR), and Customer Attitude (CUAT) to electronic payment Acceptance were all examined using the model that was developed. English-language structured survey questions were given out to 650 randomly chosen individuals from many different sectors. The most important predictor among the variables is determined to be perceived ease of use (PEOU). On the other hand, it was discovered that consumer attitude had the least significant impact on the adoption of e-payment.
The results show that customers must utilize this online payment option more frequently. The more customers utilize the new technology, the more accommodating it will be to them. Followed that, the goal of Liébana-Cabanillas, et al (2018) is to create a novel research model for predicting the most important variables affecting m-payment usage. In order to do this, the authors conducted a study using an online poll of a nationwide sample of Spanish smartphone users.
In order to identify the factors that had a significant impact on the adoption of mobile payments, structural equation modeling (SEM) and the neural network model were both employed. The neural network model was then used to rank the relative importance of the important predictors identified by SEM. Perceived usefulness and perceived security factors were shown to have the most effects on the intention to use in this study. On the other hand, the outcomes of the neural network analysis supported many of the SEM findings while also providing a somewhat different order of the relevant predictors’ relative weights.
Additionally, perceived compatibility and simplicity of use both had a close to equal impact on perceived usefulness. However, SEM analysis revealed perceived compatibility to be a considerably more significant predictor. The better prediction accuracy of the neural network models with their nonlinear and non-compensatory character can be attributed to their minimal variations in SEM and ANN outcomes. Nguyen Hong Quan (2021) examined the effects of online payment elements on customers’ purchasing intentions and payment choices in Hanoi B2C e-commerce, the study also seeks to establish a link between the impact variables.
Data were acquired through a random questionnaire with 284 customer replies. The reliability analysis, exploratory factor analysis, confirmatory factor analysis, and linear regression model were used to examine the data. Using electronic payment methods on B2C e-commerce platforms, the results demonstrate that utility, convenience of use, popularity, support policy, and safety have a favorable influence on customers’ buy intentions and payment decisions. The author suggests that companies need to increase the convenience of electronic payment, create convenience in using electronic payment, strengthen propaganda and popularization of electronic payment solutions, and implement good support policy in electronic payment, as well as ensuring safety in electronic payment.
Problem 2: Use of TAM and UTAUT By putting forth an original research model that combines the benefits of two well-known theories—the extended unified theory of acceptance and use of technology (UTAUT2) and the innovation characteristics of the diffusion of innovations (DOI), with perceived security and intention to recommend the technology constructs, Oliveira, et al (2016) contribute to the body of knowledge on this topic. Using 301 replies from an online survey carried out in Portugal, a country in Europe, the study model was empirically evaluated. Structured equation modeling (SEM) was used to examine the data. They discovered that the acceptance of mobile payments and the desire to advocate this technology are significantly influenced by compatibility, perceived technological security, performance expectations, innovation, and social impact.
Additionally, it was established that customers intended to endorse mobile payment technology in social networks and other communication channels, confirming the suggestion to incorporate it in future technology adoption studies and social marketing initiatives. This study gives researchers a foundation for further developing their own models of acceptance. To build, improve, and execute mobile payment systems, applications, and products that achieve high customer acceptability, value, and high rates of favorable referrals in social networks, practitioners must have a solid grasp of the main constructs. Shankar & Datta (2018) expand this framework.
They proposed a conceptual framework based on the technology acceptance model (TAM) in order to investigate the elements influencing mobile payment (m-payment) adoption intention in India. To assess m-payment adoption intention in India, four user- centric constructs have been developed in addition to the TAM construct. By using information gathered from 381 potential m-payment service customers through online and offline surveys, the suggested study model was empirically evaluated.